Ingersoll Rand has recorded a 28% decline in its bottomline in 2QFY01. This is on the back of a marginal 1% decline in its turnover during same period. Even a 65% surge in other income and a whopping 92% decline in tax provisions could not save its bottomline from taking this hit.
Operating Profit (EBDIT)
Operating Profit Margin (%)
Profit before Tax
Profit after Tax/(Loss)
Net profit margin (%)
No. of Shares (eoy) (m)
Earnings per share*
Current P/e ratio
A 12% jump in expenditure did most of the damage to the company's bottomline.
Ingersoll sold off its gas compressor business in 1QFY01, resulting in an extraordinary profit of Rs 441 m. It also paid off Rs 51 m as VRS expenses to trim its workforce. All this resulted in a 76% jump in its first half (1HFY01) bottomline to Rs 451 m. But in real terms (i.e. including only operational profits and expenses) its net profit actually declined by 49% to Rs 62 m when compared to 1HFY00.
The company's stock trades at Rs 140 at a P/e multiple of 13.8 times its annualised FY01 earnings. This price its near its 52 week low. Well, in light of its performance, this is not surprising.
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