Wartsila: Revving up in third quarter - Views on News from Equitymaster

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

  • MyStocks

MEMBER'S LOGINX

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

Wartsila: Revving up in third quarter

Oct 24, 2000

Large diesel engines manufacturer, Warsila NSD India Limited, has recorded a significant 204% jump in net profits to Rs 73 m in its third quarter ended September 30, 2000. The company's turnover was up 67% as compared to the corresponding quarter in 1999.

(Rs m)3QFY003QFY01Change
Sales7071,18367.3%
Other Income02-
Expenditure6581,05860.8%
Operating Profit (EBDIT)49125155.1%
Operating Profit Margin (%)6.9%10.6%
Interest 440.0%
Depreciation6833.3%
Profit before Tax39115194.9%
Other Adjustments0-1
Tax1541173.3%
Profit after Tax/(Loss)2473204.2%
Net profit margin (%)3.4%6.3%
No. of Shares (eoy)12.012.0
Earnings per share*11.224.3
*(annualised)
Current P/e ratio 3.6

Wartsila is India's largest manufacturer and supplier of 1 MW - 6 MW DG sets which have the advantage of being able to adapt its engines to a variety of fuels. It has a market share of over 65% of the total genset production in India (> 1 MW range). DG sets of smaller size can be put together to make one large power generating unit.

The company's order book position for power plants stood at Rs 1.5 bn on September 30, 2000. This is almost 50% higher than the company's order book position as on September 30, 1999 (Rs 1 bn). Thes figures signal encouraging trends, indicating that growth is finally taking place in the power sector.

It should be noted that, this December ending company's consolidated first half net profit was down by a whopping 43% to Rs 47 m. Its first half turnover also declined by 23% to Rs 1,622 m.

Wartsila has more than made up for its decline in the first half by putting in such superlative performance in the third quarter. In fact, the company's net profit improved by 12% to Rs 120 m in its consolidated nine months results. The turnover during the nine month period was Rs 2.5 bn (up 8%). Going forward, we expect the company to do well even in the fourth quarter, given its healthy order book position.

At the current price of Rs 88, the stock trades at a P/e multiple of 3.6 its FY01 annualised earnings.

Equitymaster requests your view! Post a comment on "Wartsila: Revving up in third quarter". Click here!

  

More Views on News

Infrastructure Boom Ahead. Here are 3 Ways to Play It... (Views On News)

Aug 24, 2021

India is expected to become the third largest construction market next year. For that, it needs huge investments.

G R Infraprojects Makes a Bumper Listing on Bourses. Big Gains for IPO Investors (Views On News)

Jul 19, 2021

GR Infra shares were subscribed over 100 times in its IPO.

Here's Why the Stock of Ashoka Buildcon was in Focus Today (Views On News)

Jul 13, 2021

Ashoka Buildcon shares up on bagging NHAI project.

G R Infraprojects IPO to Hit the Market on 7 July. All You Need to Know (Views On News)

Jul 1, 2021

G R Infraprojects' IPO will be an offer for sale of up to 11.5 m shares. There will not be any fresh issue of shares.

What Triggered the Over 10% Surge in Greaves Cotton Today? (Views On News)

Jun 17, 2021

Last week, the stock of Greaves Cotton has soared 23%. What's fueling the rally?

More Views on News

Most Popular

Infosys vs TCS: Which is Better? (Views On News)

Nov 26, 2021

In the post pandemic era, the top two IT companies in India are fighting to capture the growing demand for IT.

This Multibagger Stock Zooms 20% After Dolly Khanna Buys Stake (Views On News)

Nov 24, 2021

Shares of this edible oil company zoomed over 50% in three days after ace investor bought around 1% stake.

How to Hit Rs 100 Crore Wealth in Your Lifetime (Equitymaster Wealth)

Nov 15, 2021

This is how you can achieve the ambitious goal of a net worth of Rs 100 crore.

Don't Sell these Stocks if the Market Falls (Profit Hunter)

Nov 17, 2021

These are the 3 types of stocks that you should not sell in a market crash.

MobiKwik IPO Opens for Subscription Soon. Key Things to Know Before Subscribing. (Views On News)

Nov 20, 2021

The Rs 19 bn issue is set to hit the market soon.

More

Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2022
Get our special report Multibagger Stocks Guide (2022 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

TRACK WARTSILA INDIA

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

MARKET STATS