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.
Punjab Tractors: 3Q pleasant surprise - Views on News from Equitymaster
 
 
  • PRINT
  • E-MAIL
  • FEEDBACK
  • A  A  A
  • Feb 1, 2001

    Punjab Tractors: 3Q pleasant surprise

    Punjab Tractors, India's second largest tractor manufacturer reported a 5.4% YoY growth in its 3QFY01 net profit to Rs 358 m. This was driven largely by a 4% growth in sales and higher margins. Considering that other players are reeling under pressure on margins, this performance has come in as a pleasant surprise.

    (Rs m) 3QFY00 3QFY01 Change 9mth FY00 9mth FY01 Change
    Sales 2,577 2,690 4.4% 7,633 7,297 -4.4%
    Other income 10 3 -70.0% 107 20 -81.3%
    Expenditure 2,051 2,139 4.3% 6,157 5,881 -4.5%
    Operating profit (EBDIT) 526 551 4.8% 1,476 1,416 -4.1%
    Operating profit margin (%) 20.4% 20.5%   19.3% 19.4%  
    Interest 0 0   0 0  
    Depreciation 41 43 4.9% 111 131 18.0%
    Profit before Tax 495 511 3.2% 1472 1305 -11.3%
    Other adjustments - -   - -  
    Tax 155 153 -1.3% 427 391 -8.4%
    Profit after Tax/(Loss) 340 358 5.4% 1,045 914 -12.5%
    Net profit margin (%) 13.2% 13.3%   13.7% 12.5%  
    No. of Shares (eoy) (m) 20.3 60.8        
    Diluted number of shares 60.8 60.8        
    Diluted Earnings per share* 22.3 23.6        
    *(annualised)            

    The company’s sales were driven by an increase in market share to 19% in 3QFY01 as compared to 17.6% for 3QFY00. The company has achieved this mainly due to its wider dealer network which stands at 332 today, incentives provided to dealers and sale of new models the Swaraj 744 which is doing well in the 40-50 HP range. The company is planning on further increasing its dealerships by adding 20 more in the next four months.

    Besides the above, additional features added to some of its models and its favourable product mix resulted in higher operating margins in 3QFY01 to 20.5%. This is an improvement over 2QFY01 margin by 100 basis points.

    The company's volumes for 3QFY01 remained more or less flat at 12,960 tractors as compared to 13,003 tractors in 3QFY00. The tractor industry declined by 7% during 3QFY01. The industry as a whole is reeling under the pressure of lower farm prices and oversupply. To add to this uneven monsoons and the expected poor rabi crop too does not seem very encouraging.

    For the first nine months the company had a market share of 18.5% at 35,211 tractors as compared to the total industry volumes of 191,000 during this period.

    As these results are higher than our expectations by around 8%-10%, we will be revising our full year net of Rs 1,150 m for FY01E upwards.

    It should be noted that when a recovery takes place, Punjab Tractors will come out a winner in its sector. It continues to manufacture fully indigenised tractors, has an excellent management team, its expansions have been financed by internal accruals and it continues to enjoy higher margins and returns as compared to its peers.

    On the current price of Rs 178, it is trading at 9.4x FY01E EPS of Rs 18.9.

     

     

    Equitymaster requests your view! Post a comment on "Punjab Tractors: 3Q pleasant surprise". Click here!

    1 Responses to "Punjab Tractors: 3Q pleasant surprise"

    vicky

    Sep 30, 2009

    detail for eicher tractor urgently
    vicky

    Like 
      
    Equitymaster requests your view! Post a comment on "Punjab Tractors: 3Q pleasant surprise". Click here!
     

    More Views on News

    Tata Motors Ltd: Another Disappointing Quarter, Management fails to Perform! (Quarterly Results Update - Detailed)

    Aug 14, 2017

    Tata Motors Ltd disappoints again for both India and JLR business. Management commentary indicates a slow year ahead.

    Maruti Suzuki Ltd: Bumpy First Quarter. GST dents Margins! (Quarterly Results Update - Detailed)

    Aug 2, 2017

    GST realted cost impacts Margins, Management expects good year ahead.

    Hero Motocorp Ltd: Riding on the Scooters Growth, Maintains Margins! (Quarterly Results Update - Detailed)

    Aug 1, 2017

    Good Recovery in the Scooters market, expects pick up in exports too.

    Bajaj Auto Limited: Recovery in Exports but Domestic Disappoints! (Quarterly Results Update - Detailed)

    Aug 1, 2017

    New Export Markets picking up, Management expects good recovery in domestic Three wheeler market.

    Bajaj Auto Limited: Finishes the Year with Headwinds. Poised for a Recovery Ahead? (Quarterly Results Update - Detailed)

    Jul 6, 2017

    Ends the year on a Flat note. Expects good recovery in the exports market.

    More Views on News

    Most Popular

    This Small Cap Can Drive Chinese Players Out of India (and Make a Fortune in the Process)(The 5 Minute Wrapup)

    Aug 17, 2017

    A small-cap Indian company with high-return potential and blue-chip-like stability is set to supplant the Chinese players in this niche segment.

    The Most Important Innovation in Finance Since Gold Coins(Vivek Kaul's Diary)

    Aug 10, 2017

    Bill connects the dots...between money and growth, real money and real resources, gold and cryptocurrencies...and between gold, cryptocurrencies, and time.

    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?

    5 Steps To Become Financially Independent(Outside View)

    Aug 16, 2017

    Ensure your financial Independence, and pledge to start the journey towards financial freedom today!

    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 PUNJAB TRACTORS

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

    MARKET STATS