Goodlass: The auto effect - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

Goodlass: The auto effect

Jan 31, 2001

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

KANSAI NEROLAC 2020-21 Annual Report Analysis (Annual Result Update)

Oct 26, 2021 | Updated on Oct 26, 2021

Here's an analysis of the annual report of KANSAI NEROLAC for 2020-21. It includes a full income statement, balance sheet and cash flow analysis of KANSAI NEROLAC. Also includes updates on the valuation of KANSAI NEROLAC.

KANSAI NEROLAC Announces Quarterly Results (1QFY22); Net Profit Up 275.8% (Quarterly Result Update)

Aug 3, 2021 | Updated on Aug 3, 2021

For the quarter ended June 2021, KANSAI NEROLAC has posted a net profit of Rs 1 bn (up 275.8% YoY). Sales on the other hand came in at Rs 14 bn (up 119.6% YoY). Read on for a complete analysis of KANSAI NEROLAC's quarterly results.

KANSAI NEROLAC Announces Quarterly Results (3QFY21); Net Profit Up 64.6% (Quarterly Result Update)

Feb 2, 2021 | Updated on Feb 2, 2021

For the quarter ended December 2020, KANSAI NEROLAC has posted a net profit of Rs 2 bn (up 64.6% YoY). Sales on the other hand came in at Rs 15 bn (up 18.0% YoY). Read on for a complete analysis of KANSAI NEROLAC's quarterly results.

Asian Paints Touches Record High After Stellar Quarterly Results (Views On News)

Jul 22, 2021

Asian Paints shares scaled fresh 52-week high today, before paring gains as the company's topline soared 91.1%.

Berger Paints Stock Falls Over 4% as Company Reports Profits Below Estimates (Views On News)

May 27, 2021

Berger Paints net profit more than doubled in the fourth quarter but ended up dropping 4% over muted investor sentiments.

More Views on News

Most Popular

Infosys vs TCS: Which is Better? (Views On News)

Nov 26, 2021

In the post pandemic era, the top two IT companies in India are fighting to capture the growing demand for IT.

This Multibagger Stock Zooms 20% After Dolly Khanna Buys Stake (Views On News)

Nov 24, 2021

Shares of this edible oil company zoomed over 50% in three days after ace investor bought around 1% stake.

6 Popular Stocks that Turned into Penny Stocks (Views On News)

Nov 27, 2021

A look at popular stocks that crashed big time and never recovered, i.e. which went from 'Multibaggers to Multibeggers'.

How to Find Your Next 10-Bagger in this Market (Profit Hunter)

Nov 19, 2021

The #1 make or break factor in your portfolio you shouldn't ignore.

MobiKwik IPO Opens for Subscription Soon. Key Things to Know Before Subscribing. (Views On News)

Nov 20, 2021

The Rs 19 bn issue is set to hit the market soon.


Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2022
Get our special report Multibagger Stocks Guide (2022 Edition) Now!
We will never sell or rent your email id.
Please read our Terms


Dec 1, 2021 03:36 PM


  • 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