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.
MPS: Execution risks linger - Views on News from Equitymaster
The India Letter
  • MyStocks

MEMBER'S LOGINX

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

MPS: Execution risks linger
Feb 1, 2016

MPS Ltd has announced the results for the third quarter of financial year 2015-2016 (3QFY16). The company has reported around 4.1% YoY growth in sales, while net profits have fallen by 1.2% YoY during the quarter.

Performance summary

  • Sales increase by 10.8% YoY during 3QFY16.
  • Operating profits dropped by 3% YoY during the quarter.
  • Net profits were lower by 1.2%. The company sees a change in the billing cycles of its various business and hence the YoY comparison may not be meaningful this year.
  • The company has zero debt and cash equivalents of nearly Rs 2 bn, inclusive of the money raised via QIP which is parked in liquid investments temporarily. The money raised from QIP (about Rs 1.5 bn) will be used to fund inorganic growth, strategic initiatives, general & corporate purpose etc.
  • The company declared interim dividend of Rs 8 per share brining the annual dividend to Rs 22 per share.
  3QFY15 3QFY16 Change 9mFY15 9mFY16 Change
Net sales 623 690 10.8% 1,689 1,921 13.7%
Expenditure 356 412 15.7% 892 1,189 33.3%
Operating profit (EBDITA) 267 278 4.1% 797 732 -8.2%
Operating profit margin (%) 42.9% 40.3%   47.2% 38.1%  
Forex gain / loss (12) (9)   (51) (27)  
Depreciation 12 9 -25.0% 43 30 -30.2%
EBIT 243 260 7.0% 703 675 -4.0%
EBIT margin (%) 39.0% 37.7%   41.6% 35.1%  
Interest - -   - -  
Other income 16 3 0.0% 38 76 100.0%
Profit before tax 259 263 1.5% 741 751 1.3%
Exceptional items - -        
Tax 87 93 6.9% 254 262 3.1%
Profit after tax/(loss) 172 170 -1.2% 487 489 0.4%
Net profit margin (%) 27.6% 24.6%   28.8% 25.5%  
No. of shares (m)         18.6  
Fully diluted EPS (Rs)*         33.5  
P/E (x)*         20.3  

*Based on trailing 12-months earnings

To Read the Full Story, Subscribe or Sign In



DISCLOSURES UNDER SEBI (RESEARCH ANALYSTS) REGULATIONS, 2014
INTRODUCTION:
Equitymaster Agora Research Private Limited (hereinafter referred to as "Equitymaster"/"Company") was incorporated on October 25, 2007. Equitymaster is a joint venture between Quantum Information Services Private Limited (QIS) and Agora group. Equitymaster is a SEBI registered Research Analyst under the SEBI (Research Analysts) Regulations, 2014 with registration number INH000000537.

BUSINESS ACTIVITY:
An independent research initiative, Equitymaster is committed to providing honest and unbiased views, opinions and recommendations on various investment opportunities across asset classes.

DISCIPLINARY HISTORY:
There are no outstanding litigations against the Company, it subsidiaries and its Directors.

GENERAL TERMS AND CONDITIONS FOR RESEARCH REPORT:
For the terms and conditions for research reports click here.

DETAILS OF ASSOCIATES:
Details of Associates are available here.

DISCLOSURE WITH REGARDS TO OWNERSHIP AND MATERIAL CONFLICTS OF INTEREST:
  1. 'subject company' is a company on which a buy/sell/hold view or target price is given/changed in this Research Report
  2. Neither Equitymaster, it's Associates, Research Analyst or his/her relative have any financial interest in the subject company.
  3. Neither Equitymaster, it's Associates, Research Analyst or his/her relative have actual/beneficial ownership of one percent or more securities of the subject company at the end of the month immediately preceding the date of publication of the research report.
  4. Neither Equitymaster, it's Associates, Research Analyst or his/her relative have any other material conflict of interest at the time of publication of the research report.
DISCLOSURE WITH REGARDS TO RECEIPT OF COMPENSATION:
  1. Neither Equitymaster nor it's Associates have received any compensation from the subject company in the past twelve months.
  2. Neither Equitymaster nor it's Associates have managed or co-managed public offering of securities for the subject company in the past twelve months.
  3. Neither Equitymaster nor it's Associates have received any compensation for investment banking or merchant banking or brokerage services from the subject company in the past twelve months.
  4. Neither Equitymaster nor it's Associates have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past twelve months.
  5. Neither Equitymaster nor it's Associates have received any compensation or other benefits from the subject company or third party in connection with the research report.
GENERAL DISCLOSURES:
  1. The Research Analyst has not served as an officer, director or employee of the subject company.
  2. Equitymaster or the Research Analyst has not been engaged in market making activity for the subject company.
Definitions of Terms Used:
  1. Buy recommendation: This means that the investor could consider buying the concerned stock at current market price keeping in mind the tenure and objective of the recommendation service.
  2. Hold recommendation: This means that the investor could consider holding on to the shares of the company until further update and not buy more of the stock at current market price.
  3. Buy at lower price: This means that the investor should wait for some correction in the market price so that the stock can be bought at more attractive valuations keeping in mind the tenure and the objective of the service.
  4. Sell recommendation: This means that the investor could consider selling the stock at current market price keeping in mind the objective of the recommendation service.
Feedback:
If you have any feedback or query or wish to report a matter, please do not hesitate to write to us.

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

MPS LTD SHARE PRICE


Aug 23, 2017 (Close)

TRACK MPS LTD

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

MPS LTD 5-YR ANALYSIS

Detailed Financial Information With Charts

COMPARE MPS LTD WITH

MARKET STATS