X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2018 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.
Vinati Organics: Next few quarters remain critical - Views on News from Equitymaster
The India Letter
  • MyStocks

MEMBER'S LOGINX

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

Vinati Organics: Next few quarters remain critical
Nov 4, 2015

Vinati Organics announced its results for the quarter ended September 2015. During the period, the company's revenues declined by a fourth, while profits came in higher by 9% YoY.
Performance summary
  • Net sales down by 24% YoY during the quarter. Decline is seemingly due to lower realisations in a deflationary environment.
  • Operating profits fall by 21% YoY despite margins expanding by 1% YoY to 25.8%.
  • Net profits up by 9% YoY aided by a onetime income (export duties of earlier years) during the quarter. Adjusting for same, profit before tax would have been lower by 22% YoY.
  • During 1HFY16, revenues were down by 23% YoY, while operating profits declined by 7% YoY, aided by a margin expansion. Net profits come in higher by 18% YoY helped by higher extraordinary income of Rs 227 m during the period.

Financial snapshot

(Rs m) 2QFY15 2QFY16 Change 1HFY15 1HFY16 Change
Net sales 1,964 1,489 -24.2% 3,947 3,036 -23.1%
Expenditure 1,478 1,105 -25.2% 3,056 2,208 -27.8%
Operating profit (EBDITA) 486 384 -21.0% 891 828 -7.1%
Operating profit margin (%) 24.8% 25.8%   22.6% 27.3%  
Depreciation 44 46 3.8% 88 92 4.7%
EBIT 442 338 -23.5% 803 736 -8.3%
EBIT margin (%) 22.5% 22.7%   20.4% 24.3%  
Interest 37 22 -39.8% 62 47 -24.7%
Other income 21 16 -25.6% 43 27 -36.8%
Exceptional items - 140   - 227  
Profit before tax 426 471 10.6% 784 944 20.4%
Tax 142 160 13.2% 258 322 24.8%
Effective tax rate 33.2% 34.0%   33.0% 34.2%  
Profit after tax/(loss) 284 311 9.3% 525 621 18.2%
Net profit margin (%) 14.5% 20.9%   13.3% 20.5%  
No. of shares (m)       49.4 51.6  
Fully diluted EPS (Rs)*         19.9  
P/E (x)*         20.9  

* trailing 12 months earnings

To Read the Full Story, Subscribe or Sign In



DISCLOSURES UNDER SEBI (RESEARCH ANALYSTS) REGULATIONS, 2014
INTRODUCTION:
Equitymaster Agora Research Private Limited (hereinafter referred to as "Equitymaster"/"Company") was incorporated on October 25, 2007. Equitymaster is a joint venture between Quantum Information Services Private Limited (QIS) and Agora group. Equitymaster is a SEBI registered Research Analyst under the SEBI (Research Analysts) Regulations, 2014 with registration number INH000000537.

BUSINESS ACTIVITY:
An independent research initiative, Equitymaster is committed to providing honest and unbiased views, opinions and recommendations on various investment opportunities across asset classes.

DISCIPLINARY HISTORY:
There are no outstanding litigations against the Company, it subsidiaries and its Directors.

GENERAL TERMS AND CONDITIONS FOR RESEARCH REPORT:
For the terms and conditions for research reports click here.

DETAILS OF ASSOCIATES:
Details of Associates are available here.

DISCLOSURE WITH REGARDS TO OWNERSHIP AND MATERIAL CONFLICTS OF INTEREST:
  1. 'subject company' is a company on which a buy/sell/hold view or target price is given/changed in this Research Report
  2. Neither Equitymaster, it's Associates, Research Analyst or his/her relative have any financial interest in the subject company.
  3. Neither Equitymaster, it's Associates, Research Analyst or his/her relative have actual/beneficial ownership of one percent or more securities of the subject company at the end of the month immediately preceding the date of publication of the research report.
  4. Neither Equitymaster, it's Associates, Research Analyst or his/her relative have any other material conflict of interest at the time of publication of the research report.
DISCLOSURE WITH REGARDS TO RECEIPT OF COMPENSATION:
  1. Neither Equitymaster nor it's Associates have received any compensation from the subject company in the past twelve months.
  2. Neither Equitymaster nor it's Associates have managed or co-managed public offering of securities for the subject company in the past twelve months.
  3. Neither Equitymaster nor it's Associates have received any compensation for investment banking or merchant banking or brokerage services from the subject company in the past twelve months.
  4. Neither Equitymaster nor it's Associates have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past twelve months.
  5. Neither Equitymaster nor it's Associates have received any compensation or other benefits from the subject company or third party in connection with the research report.
GENERAL DISCLOSURES:
  1. The Research Analyst has not served as an officer, director or employee of the subject company.
  2. Equitymaster or the Research Analyst has not been engaged in market making activity for the subject company.
Definitions of Terms Used:
  1. Buy recommendation: This means that the investor could consider buying the concerned stock at current market price keeping in mind the tenure and objective of the recommendation service.
  2. Hold recommendation: This means that the investor could consider holding on to the shares of the company until further update and not buy more of the stock at current market price.
  3. Buy at lower price: This means that the investor should wait for some correction in the market price so that the stock can be bought at more attractive valuations keeping in mind the tenure and the objective of the service.
  4. Sell recommendation: This means that the investor could consider selling the stock at current market price keeping in mind the objective of the recommendation service.
Feedback:
If you have any feedback or query or wish to report a matter, please do not hesitate to write to us.

Small Investments
BIG Returns

Zero To Millions Guide 2018
Get our special report, Zero To Millions
(2018 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

VINATI ORG. SHARE PRICE


Dec 12, 2017 09:43 AM

TRACK VINATI ORG.

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

VINATI ORG. 5-YR ANALYSIS

COMPARE VINATI ORG. WITH

MARKET STATS