Punjab Tractors net drops 13% - Views on News from Equitymaster

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

  • MyStocks


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

Punjab Tractors net drops 13%

Nov 1, 2000

Punjab Tractors Ltd has reported a 13% decline in its net profits for the 2QFY01 at Rs 309 m.

(Rs m)2QFY002QFY01Change
Sales 2,302 2,465 7.1%
Other Income 84 9 -89.3%
Expenditure 1,859 1,989 7.0%
Operating Profit (EBDIT) 443 476 7.5%
Operating Profit Margin (%)19.2%19.3% 
Interest - -  
Depreciation 35 44 25.7%
Profit before Tax492441-10.4%
Other Adjustments-- 
Tax 137 132 -3.6%
Profit after Tax/(Loss) 355 309 -13.0%
Net profit margin (%)15.4%12.5% 
No. of Shares (eoy)60.860.8 
Diluted no.of shares60.860.8 
Diluted Earnings per share*23.420.3 

The company's sales grew by only 7% to Rs 2,465 m for the 2QFY01, due to a slowdown in the tractor industry. Though the company was not that badly affected like some other players in the market, the slowdown has taken its toll on Punjab Tractors 2Q results.

The company's operating profits grew by 7.5% YoY during this period and its operating margins improved slightly to 19.3%. This is a commendable achievement when compared to others as it has curtailed its expenditure to maintain its margins.

The fall in other income has resulted in a decline in its net margins from 15.4% in the 2QFY00 to 12.5% in the 2QFY01.

As we are projecting an EPS of Rs 20.5 for FY01E, which is a 6% decline YoY, we will revise our estimates downwards by 5% in line with the 2Q performance. At the current price of Rs 159, it is trading at 7.3x FY01E EPS of Rs 20.5

Equitymaster requests your view! Post a comment on "Punjab Tractors net drops 13% ". Click here!


More Views on News

Massive Surge in the Shares of Tata Motors Today. Key Factors Favouring the Rally (Views On News)

Oct 13, 2021

Tata Motors zooms 23% after report of TPG investing Rs 75 bn in EV arm.

India's Edge in Electric Vehicle Stocks podcast (Views On News)

Sep 9, 2021

India has a huge advantage in using climate friendly EV batteries.

4 Ways to Play the EV Opportunity (Views On News)

Sep 6, 2021

The EV disruption is happening faster than you think. Here's how you can ride the Indian EV megatrend.

Eicher Motors' Earning Meets Estimate. Stock Under Pressure Amid CEO Exit and Chip Shortage (Views On News)

Aug 13, 2021

Robust performance by Royal Enfield in the international market gives a lift to Eicher's topline.

Hero MotoCorp Reports Substantial Rise in Net Profit. Is it Worth a Look? (Views On News)

Aug 13, 2021

The company improved its market share in the quarter by more than 2%. Can it achieve more?

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.

6 Popular Stocks that Turned into Penny Stocks (Views On News)

Nov 27, 2021

A look at popular stocks that crashed big time and never recovered, i.e. which went from 'Multibaggers to Multibeggers'.

India's Top 5 Monopoly Stocks to Watch Out for (Views On News)

Nov 30, 2021

These 5 companies dominate their sectors with a huge piece of the pie.

6 Penny Stocks that Rallied 1,000%+ in One Year (Views On News)

Dec 6, 2021

These penny stocks shed their penny status by surging 1,000% or more in the last one year.

The Biggest Winners and Losers in India's Transition to Electric Vehicles (Profit Hunter)

Nov 26, 2021

How India's EV transition could be a major headwind for the incumbents.


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