X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Carrier: Margins under pressure - Views on News from Equitymaster
 
 
  • PRINT
  • E-MAIL
  • FEEDBACK
  • A  A  A
  • Jan 30, 2001

    Carrier: Margins under pressure

    Carrier Aircon has reported a 17% growth in topline to Rs 993 m for the third quarter ended 31st December 2000. However, a change in the inventory valuation norms has increased expenditure by 22% to Rs 3,273 m in the first nine months of the current year. However, raw material costs as a percentage of sales has come down to 38% in the first nine months of the current year from 40% in the corresponding period of the previous year.

    (Rs m) 3QFY00 3QFY01 Change
    Sales 851 993 16.7%
    Other Income 5 15 229.6%
    Expenditure 809 945 16.7%
    Operating Profit (EBDIT) 42 48 15.0%
    Operating Profit Margin (%) 5.0% 4.9%  
    Interest 4 13 234.4%
    Depreciation 13 14 6.4%
    Profit before Tax 30 37 24.1%
    Tax 7 10 52.3%
    Profit after Tax/(Loss) 24 27 16.1%
    Net profit margin (%) 2.8% 2.8%  
    No. of Shares (eoy) (m) 23.4 23.4  
    Diluted number of shares 23.4 23.4  
    Earnings per share* 4.0 4.7  
    *(annualised)      

    This, we believe is because the company has been increasingly outsourcing air conditioners instead of manufacturing in-house in the last two years. Though operating profit has gone up by 15% in 3QFY01, operating margins have declined marginally.

    Interest costs have also gone up substantially by 131% for the first nine months of the current year to Rs 37 m, which has suppressed profit growth at the net levels. However, the company has maintained margins at the net level at 2.8%.

    The stock is trading at Rs 102 at a P/E multiple of 21x the annualised 3QFY01 earnings.

     

     

    Equitymaster requests your view! Post a comment on "Carrier: Margins under pressure". Click here!

      
     

    More Views on News

    Sorry! There are no related views on news for this company/sector.

    Most Popular

    A 'Backdoor' to Multibaggers: It's Like Investing in Asian Paints Ten Years Ago(The 5 Minute Wrapup)

    Aug 10, 2017

    Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.

    The Most Profitable Investment in the History of the World(Vivek Kaul's Diary)

    Aug 8, 2017

    'Yes, it looks like a bubble. And, yes, it's like buying a lottery ticket. But there's something happening that has never happened before. It's an evolutionary leap in money itself.'

    Should You Invest In Bharat-22 ETF? Know Here...(Outside View)

    Aug 8, 2017

    Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    Bitcoin Continues Stellar Rise(Chart Of The Day)

    Aug 10, 2017

    Bitcoin hits an all-time high, is there more upside left?

    More
    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407
     

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms

    TRACK CARR.AIRCON

    • Track your investment in CARR.AIRCON with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
    • Add To MyStocks

    MARKET STATS