X

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.
Punjab Tractors: A consistent performer - Views on News from Equitymaster
 
 
  • PRINT
  • E-MAIL
  • FEEDBACK
  • A  A  A
  • Nov 1, 2001

    Punjab Tractors: A consistent performer

    While all other tractor majors have reported a dismal second quarter performance, Punjab Tractors (PTL) has once again outperformed the industry. Though turnover fell by 3.2%, there is a notable rise in market share. It has also managed to improve on profitability through tight cost control measures.

    (Rs m) 2QFY01 2QFY02 Change 1HFY01 1HFY02 Change
    Sales 2,465 2,385 -3.2% 4,607 4,590 -0.4%
    Other Income 9 37 311.1% 17 37 117.6%
    Expenditure 1,989 1,913 -3.8% 3,742 3,698 -1.2%
    Operating Profit (EBDIT) 476 472 -0.8% 865 892 3.1%
    Operating Profit Margin (%) 19.3% 19.8%   18.8% 19.4%  
    Interest - 23   - 38  
    Depreciation 44 43 -2.3% 88 88 0.0%
    Profit before Tax 441 443 0.5% 794 803 1.1%
    Tax 132 133 0.8% 238 239 0.4%
    Profit after Tax/(Loss) 309 310 0.3% 556 564 1.4%
    Net profit margin (%) 12.5% 13.0%   12.1% 12.3%  
    No. of Shares (eoy) (m) 60.8 60.8   60.8 60.8  
    Earnings per share (Rs)* 20.3 20.4   18.3 18.6  
    (*annualised)         8.1  

    Despite severe contraction in demand for tractors, PTL has managed to increase market share to 21.4% for the first half of the current financial year as compared with 18.5% last year. While industry volumes fell by more than 20%, PTL's volume declined by just 3% resulting in a higher market share.

    Outperforms industry…
    (Nos) 1HFY01 1HFY02 Change (%)
    Industry 120,048 100,114 -16.6%
    Punjab Tractors 22,149 21,470 -3.1%
    Market share (%) 18.5% 21.4%  

    Given the sluggishness in demand for tractors, pricing has been under pressure for the last three quarters. Despite this weaker demand scenario, PTL's margins have increased by 50 basis points to 19.8% in 2QFY02. The performance of the company for the first half is even encouraging with operating profit increasing by 3%.

    The scrip is currently trading at Rs 151 on a P/E multiple of 8.1x annualised 1HFY02 earnings.

     

     

    Equitymaster requests your view! Post a comment on "Punjab Tractors: A consistent performer". Click here!

      
     

    More Views on News

    Tata Motors Ltd: Another Disappointing Quarter, Management fails to Perform! (Quarterly Results Update - Detailed)

    Aug 14, 2017

    Tata Motors Ltd disappoints again for both India and JLR business. Management commentary indicates a slow year ahead.

    Maruti Suzuki Ltd: Bumpy First Quarter. GST dents Margins! (Quarterly Results Update - Detailed)

    Aug 2, 2017

    GST realted cost impacts Margins, Management expects good year ahead.

    Hero Motocorp Ltd: Riding on the Scooters Growth, Maintains Margins! (Quarterly Results Update - Detailed)

    Aug 1, 2017

    Good Recovery in the Scooters market, expects pick up in exports too.

    Bajaj Auto Limited: Recovery in Exports but Domestic Disappoints! (Quarterly Results Update - Detailed)

    Aug 1, 2017

    New Export Markets picking up, Management expects good recovery in domestic Three wheeler market.

    Bajaj Auto Limited: Finishes the Year with Headwinds. Poised for a Recovery Ahead? (Quarterly Results Update - Detailed)

    Jul 6, 2017

    Ends the year on a Flat note. Expects good recovery in the exports market.

    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.

    Proxy Plays: A Smart Way to Bet on 'Off Limits' Companies(The 5 Minute Wrapup)

    Aug 4, 2017

    The small-cap space is full of small players that are clear proxies to great growth stories and Indian megatrends.

    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...

    More
    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

    TRACK PUNJAB TRACTORS

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

    MARKET STATS