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.
Pentamedia Graphics: Lacklusture performance - Views on News from Equitymaster
  • E-MAIL
  • A  A  A
  • Apr 18, 2001

    Pentamedia Graphics: Lacklusture performance

    Pentamedia Graphics has posted a drop of 8% in revenues for 4QFY01 compared to 3QFY01. On a quarter on quarter basis (QoQ) the company the net profit figure has dropped by a significant 36%. In the fourth quarter of FY01 the operating margins for the company has gone up by more than 600 basis points. This is due to a QoQ drop in employee costs of about 65%, which is on account of the company reducing its direct overseas staff costs.

    (Rs m) 3QFY01 4QFY01 Change FY00 FY01 Change
    Sales 1,579 1,450 -8.2% 3,930 5,524 40.6%
    Other Income 35 3 -92.2% 74 178 139.0%
    Expenditure 1,006 831 -17.5% 2,468 3,592 45.5%
    Operating Profit (EBDIT) 573 619 8.2% 1,462 1,932 32.1%
    Operating Profit Margin (%) 36.3% 42.7%   37.2% 35.0%  
    Interest (16.40) 47.20   61 13 -78.0%
    Depreciation 88 206 133.0% 418 529 26.6%
    Profit before Tax 535 369 -31.0% 1,058 1,567 48.2%
    Other Adjustments (3.70) - -100.0% 714 -  
    Tax - 31.50   68 32 -53.4%
    Profit after Tax/(Loss) 532 338 -36.5% 1,703 1,536 -9.9%
    Net profit margin (%) 33.7% 23.3%   43.3% 27.8% -35.9%
    Profit after Tax/(Loss)# 535 338 -36.9% 990 1536 55.1%
    Net profit margin (%)# 33.9% 23.3%   25.2% 27.8%  
    Earnings per share*# 49 31   23 35 55.1%
    P/E (x)         2  

    However, the company has not cut operational costs. The costs for multimedia development and webcast have infact gone up from 50% of revenues in 3QFY01 to 53% of revenues in 4QFY01.

    The net profit figure has taken a hit because the company has provided for 3 times the interest for FY01 in the fourth quarter alone. Similarly, depreciation for the fourth quarter was 38% of the figure for the FY01. Also, the company has provided for all the tax for FY01 in 4QFY01. On a Year on Year (YoY) basis the company has clocked a growth in revenues for 4QFY01 of 25% and the rise in net profits is 150%.

    Animation, Special Effects and Web Entertainment contributed to 56%, 21% and 23% of the turnover respectively, during the fourth quarter of FY01. While the contribution for Animation and Special Effects to the turnover is same as that for the last quarter the contribution of web entertainment has gone up from 3% to 23%.

    The plans of acquiring film Roman has run into rough weather as Pentamedia now wants to pay for the acquisition in cash and stocks as proposed to all cash deal earlier.

    At the current market price of Rs 61, the stock is trading at a P/E multiple of 2 times its FY01 earnings.



    Equitymaster requests your view! Post a comment on "Pentamedia Graphics: Lacklusture performance". Click here!


    More Views on News

    Tech Mahindra: Our Revised View (Quarterly Results Update - Detailed)

    Aug 2, 2017

    A better than expected turnaround in performance results in a change in view.

    Wipro: A Decent Start to the Year (Quarterly Results Update - Detailed)

    Jul 27, 2017

    Digital services drive growth for Wipro in 1QFY18.

    Infosys: A Decent Start to FY18 (Quarterly Results Update - Detailed)

    Jul 14, 2017

    Infosys starts FY18 on an encouraging note with a stable performance.

    TCS: Currency Volatility Plays Spoilsport (Quarterly Results Update - Detailed)

    Jul 14, 2017

    TCS starts FY18 decently despite an adverse currency impact.

    HCL Tech: Ends FY17 on Expected Lines (Quarterly Results Update - Detailed)

    Jun 29, 2017

    Volvo partnership caps a good year for HCL Technologies.

    More Views on News

    Most Popular

    Demonetisation Barely Made Any Difference to Tax Collections(Vivek Kaul's Diary)

    Aug 7, 2017

    The data tells us quite a different story from the one the government is trying to project.

    A 'Backdoor' to Multibaggers: It's Like Investing in Asian Paints Ten Years Ago(The 5 Minute Wrapup)

    Aug 10, 2017

    Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.

    Should You Invest In Bharat-22 ETF? Know Here...(Outside View)

    Aug 8, 2017

    Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...

    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.

    7 Financial Gifts For Your Sister This Raksha Bandhan(Outside View)

    Aug 7, 2017

    Raksha Bandhan signifies the brother-sister bond. Here are 7 thoughtful financial gifts for sisters...

    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


    Aug 7, 2017 (Close)


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