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.
Goodlass: The auto effect - Views on News from Equitymaster
  • E-MAIL
  • A  A  A
  • Jan 31, 2001

    Goodlass: The auto effect

    Goodlass Nerolac has reported a 48% drop in net profits for the third quarter ended 31st December 2000 to Rs 52 m. The slow down in automobile sales has had a clear impact on the company's sales in the third quarter (Goodlass is the main supplier to Maruti and Telco). While sales grew marginally by 4.7% in 3QFY01 to Rs 1,481 m, operating margin has declined sharply from 11.0% in 3QFY00 to 7.8% in 3QFY01.

    (Rs m) 3QFY00 3QFY01 Change
    Sales 1,416 1,481 4.7%
    Other Income 39 29 -26.2%
    Expenditure 1,260 1,366 8.4%
    Operating Profit (EBDIT) 155 116 -25.6%
    Operating Profit Margin (%) 11.0% 7.8%  
    Interest 15 18 24.7%
    Depreciation 35 53 50.9%
    Profit before Tax 145 74 -49.2%
    Tax 46 22 -52.4%
    Profit after Tax/(Loss) 99 52 -47.8%
    Net profit margin (%) 7.0% 3.5%  
    No. of Shares (eoy) (m) 15.3 15.3  
    Diluted number of shares 15.3 15.3  
    Earnings per share* 25.8 13.5  

    Though the company resorted for a marginal increase in paint prices, higher inflation coupled with a substantial rise in basic rutile titanium dioxide prices could not neutralise the effect at the operating level. But, if we were to consider the first nine months financial performance, things are not looking that ominous.

    While net sales has gone up by 12.4% from Rs 3,880 m to Rs 4,361 m, operating margins declined marginally to 9.1% in the first nine months of the current year from 9.2% in the corresponding period of the previous year. Remember, the company posted a 100% rise in net profit in 2QFY01 with a sharp increase in operating margins.

    The rise in depreciation is understandable as the company has been increasing the number of dealer tinting machines in the current year as a step towards increasing the contribution from decorative paint segment. However, lower tax provisioning has prevented the bottomline from a huge drop.

    The stock is trading at Rs 134 at a P/E multiple of 7.2x the annualised first nine months earnings.



    Equitymaster requests your view! Post a comment on "Goodlass: The auto effect". Click here!


    More Views on News

    Asian Paints: Good Performance Across Segments (Quarterly Results Update - Detailed)

    May 18, 2017

    Asian Paints registers 10.4% YoY growth in profits during 4QFY17 with double-digit volume growth in the decorative segment.

    Asian Paints: Volumes Weighed by Notebandi (Quarterly Results Update - Detailed)

    Feb 17, 2017

    Asian Paints has reported a 2.6% YoY increase in the topline and a 0.6% YoY decline in the bottomline during the quarter.

    More Views on News

    Most Popular

    Demonetisation Barely Made Any Difference to Tax Collections(Vivek Kaul's Diary)

    Aug 7, 2017

    The data tells us quite a different story from the one the government is trying to project.

    Proxy Plays: A Smart Way to Bet on 'Off Limits' Companies(The 5 Minute Wrapup)

    Aug 4, 2017

    The small-cap space is full of small players that are clear proxies to great growth stories and Indian megatrends.

    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.

    7 Financial Gifts For Your Sister This Raksha Bandhan(Outside View)

    Aug 7, 2017

    Raksha Bandhan signifies the brother-sister bond. Here are 7 thoughtful financial gifts for sisters...

    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


    Aug 16, 2017 (Close)


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



    Detailed Quarterly Results With Charts