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Atul Ltd: Higher Depreciation Cost Impacts Net Profits - Views on News from Equitymaster
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  • Jan 25, 2017 - Atul Ltd: Higher Depreciation Cost Impacts Net Profits

Atul Ltd: Higher Depreciation Cost Impacts Net Profits
Jan 25, 2017

Atul Ltd declared results for the quarter ended December 2016. The company's revenues grew by 6% during the quarter. While, the profits declined by 5.2%. Here is our analysis of the result.

Financial Performance Snapshot
(Rs m) 3QFY16 3QFY17 Change 9mFY16 9mFY17 Change
Net sales 6,033 6,403 6.1% 18,299 19,747 7.9%
Expenditure 4,989 5,315 6.5% 15,014 16,058 7.0%
Operating profit (EBITDA) 1,044 1,088 4.2% 3,285 3,689 12.3%
EBITDA margin 17.3% 17.0% 18.0% 18.7%
Other income 75 32 -57.3% 325 194 -40.3%
Depreciation 158 234 48.1% 448 662 47.8%
Finance cost 77 58 -24.7% 193 181 -6.2%
Exceptional item 0.00 0.00 27 0.00 -100.0%
Profit before tax 884 828 -6.3% 2,996 3,040 1.5%
Tax 266 242 -9.0% 909 825 -9.2%
Effective tax rate 30.1% 29.2% 30.3% 27.1%
Net profit 618 586 -5.2% 2,087 2,215 6.1%
Net profit margin 10.2% 9.2% 11.4% 11.2%
No of shares (m) 29.7
Diluted EPS (Rs)* 74.7
P/E (times)* 28.5

*trailing twelve month earnings excluding exceptional items

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