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Orient Refractories: Good Performance Despite Demonetisation Woes - Views on News from Equitymaster
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  • Feb 7, 2017 - Orient Refractories: Good Performance Despite Demonetisation Woes

Orient Refractories: Good Performance Despite Demonetisation Woes
Feb 7, 2017

Orient Refractories has announced the third quarter results of financial year 2016-2017 (3QFY17). The company has reported a 11.3% YoY increase in the topline while the bottomline increased by 12% YoY. Here is our analysis of the results.

Performance summary
  • The topline increased by 11.3% YoY. Net sales grew by 11.1% YoY and other operating income increased by 51.1% YoY. Greater volumes from large steel-mill customers and exports compensated for volume pressure in mini and medium-sized steel mills.
  • Operating profits increased by 12.7% YoY. Operating profit margin increased by 25 bps and stood at 19.8% during the quarter. Cost rationalization and process improvements have helped the company sustain the margin at 19.8%, despite higher power cost.
  • Other income rose by 65% YoY.
  • Net profits increased by 12% YoY. This is on the back of an increase in operating profit and other income. This was partly offset by tax outgo which has increased by 23.1% YoY.

    Financial Snapshot
    (Rs m) 3QFY16 3QFY17 Change 9mFY16 9mFY17 Change
    Total income 1,151 1,281 11.3% 3,361 3,915 16.5%
    Expenditure 925 1,027 11.0% 2,772 3,149 13.6%
    Operating profit (EBITDA) 225 254 12.7% 589 767 30.2%
    Operating profit margin (%) 19.6% 19.8% 17.5% 19.6%
    Other income 12 20 65.0% 48 61 27.0%
    Interest 0 0 0 0.0%
    Depreciation 16 17 10.8% 44 48 10.8%
    Profit before tax & exceptional items 222 256 15.7% 593 779 31.3%
    Tax 73 89 23.1% 198 270 36.2%
    Profit after tax/(loss) 149 167 12.0% 395 509 28.9%
    Net profit margin (%) 13.0% 13.0% 11.8% 13.0%
    No. of shares (m) 120.14
    Basic diluted earnings per share (Rs) ^ 5.6
    P/E ratio (x) * 20.9

    * On trailing 12 month basis
    ^Based on latest number of shares outstanding

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Oct 19, 2017 07:33 PM

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