X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2018 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.
Pratibha Ind.: A mixed performance - Views on News from Equitymaster

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

MidCapSelect
  • MyStocks

MEMBER'S LOGINX

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

Pratibha Ind.: A mixed performance
Feb 20, 2013

Pratibha Industries announced its results for the third quarter of the financial year 2012-2013 (3QFY13). During 3QFY13, net sales and profits grew by 37% YoY while profits increased by 6% YoY.

Performance summary
  • Income increases by 37% YoY during the quarter ended December 2012.
  • Operating profits rise by 24% YoY as margins contract by 1.2% YoY during 3QFY13.
  • Profit growth slows down to 6% YoY on account of lower operating margins coupled with lower other income and higher depreciation charges.
  • During 9mFY13, company's revenues and profits increased by 41% YoY and 19% YoY respectively.

Consolidated financial snapshot
(Rs m) 3QFY12  3QFY13  Change 9mFY12 9mFY13  Change
Income from operations 4,525 6,183 36.6% 11,514 16,233 41.0%
Expenditure 3,930 5,448 38.6% 9,979 14,081 41.1%
Operating profit (EBDITA) 595 735 23.6% 1,535 2,151 40.1%
Operating profit margin (%) 13.1% 11.9% 13.3% 13.3%
Other income 50 20 -61.4% 127 144 13.5%
Finance costs 324 358 10.5% 776 1,117 43.9%
Depreciation 55 95 71.9% 152 246 61.3%
Profit before tax 266 302 13.4% 734 933 27.1%
Tax 75 98 31.1% 193 288 49.2%
Profit after tax/(loss) 191 203 6.4% 541 645 19.2%
Net profit margin (%) 4.2% 3.3%   4.7% 4.0%  
No. of shares (m)       99.0 101.1  
Basic & diluted earnings per share (Rs)         9.1  
P/E ratio (x) *         5.1  
* On a trailing 12-months basis

What has driven performance in 3QFY13?
  • Pratibha Industries (PIL) reported a 37% YoY growth in revenues during the quarter ended December 2012. Compared to the preceding quarter i.e. the quarter ended September 2012 (2QFY13), the company's revenues are higher by about 39%.

  • At the operating level, PIL's margins contracted by 1.2% YoY leading to a slower rise of 24% YoY in operating profits. Margin contraction is mainly on account of higher input costs (as a percentage of revenues).

  • PIL's profits increased by 6% YoY. Post the performance at the operating levels, lower other income (down by 61% YoY) coupled with higher depreciation charges and a higher tax out go led to the overall profits to grow at a slower pace as compared to the operating profits growth levels.

What to expect?
At the current price of Rs 45, the stock trades at a multiple of 5.1 times its trailing 12-month EPS. While the company continues to operate amidst difficult times of slowdown and high interest rates, it has been able to get new business and grow at a decent pace. PIL's order book stood at about Rs 65 bn at the end of the quarter, which translates to about 3.9 times its FY12 consolidated revenues. While the company's valuations are cheap, we suggest investors not to increase their exposure to the stock given the overall uncertainty and negative sentiment surrounding the infrastructure sector on the whole. We maintain our 'Hold' view on the stock.

To Read the Full Story, Subscribe or Sign In


Small Investments
BIG Returns

Zero To Millions Guide 2019
Get our special report, Zero To Millions
(2019 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

PRATIBHA INDS SHARE PRICE


Nov 15, 2018 (Close)

TRACK PRATIBHA INDS

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

PRATIBHA INDS 8-QTR ANALYSIS

COMPARE PRATIBHA INDS WITH

MARKET STATS