| |
Feb 1, 2000
Disastrous results from IPCL
"IPCL is the second largest polymer company, has a strong distribution network and has added capacities (a 160,000 tonne polyethylene plant, a gas cracker unit and a mono-ethylene glycol plant at Gandhar) as well as import facilities."
| (Rs m) |
3QFY2000 |
3QFY1999 |
Change |
| Sales |
7,682.0 |
7,346.6 |
4.6% |
| Other Income |
254.8 |
156.1 |
63.2% |
| Expenditure |
6,047.3 |
5,539.5 |
9.2% |
| Interest |
879.2 |
785.5 |
11.9% |
| Depreciation |
904.4 |
684.1 |
32.2% |
| Profit before Tax |
105.9 |
493.6 |
-78.5% |
| Tax |
- |
138.0 |
-100.0% |
| Profit after Tax/(Loss) |
105.9 |
355.6 |
-70.2% |
| Net profit margin (%) |
1.4% |
4.8% |
|
The company has reported disastrous results in the third quarter. The company's net profit has crashed by 70% despite a 4.6% jump in the turnover. While the overall volumes have gone up to 866,000 during the first nine months of the current year from 766,000 tonnes during the first nine months of the last year, the fact remains that the sluggish market in the third quarter has led to lower realisations. Besides, the fact that the feedstock prices have been continuously rising, courtesy the rising crude oil prices have put pressure on the margins. Also, there was a fire during the commissioning of the Gandhar complex and this affected volume sales further. These results are also expected to adversely affect IPCL's valuation during the disinvestment bidding.
Market View:
While IPCL’s business fundamentals remain weak, a change in management is expected to result in a sharp re-rating of the stock.
More Views on News
Sorry! There are no related views on news for this company/sector.
Most Popular
Aug 7, 2017
The data tells us quite a different story from the one the government is trying to project.
Aug 10, 2017
Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.
Aug 8, 2017
Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...
Aug 12, 2017
The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.
Aug 7, 2017
Raksha Bandhan signifies the brother-sister bond. Here are 7 thoughtful financial gifts for sisters...
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 | |
|
|
Equitymaster requests your view! Post a comment on "Disastrous results from IPCL". Click here!
Comments are moderated by Equitymaster, in accordance with the Terms of Use, and may not appear
on this article until they have been reviewed and deemed appropriate for posting.
In the meantime, you may want to share this article with your friends!