GE POWER INDIA LTD Announces Quarterly Results (1QFY20); Net Profit Down 456.1%

Thu, 25 Jul

GE POWER INDIA LTD has announced its results for the quarter ended June 2019. Here is a detailed performance review of the same:

GE POWER INDIA LTD Quarterly Financials

No. of Mths Qtr. Ending		3 Jun-18*	3 Mar-19*	3 Jun-19*	QoQ Change	YoY Change
Net Sales	Rs m	4,431	3,446	4,287	24.4%	-3.3%
Other income	Rs m	242	561	385	-31.5%	58.9%
Turnover	Rs m	4,673	4,007	4,671	16.6%	0.0%
Expenses	Rs m	4,332	3,274	4,537	38.6%	4.7%
Gross profit	Rs m	23	155	-251	-261.4%	-1180.6%
Depreciation	Rs m	88	71	141	98.6%	59.9%
Interest	Rs m	95	98	115	17.9%	21.0%
Profit before tax	Rs m	82	548	-122	-122.3%	-249.3%
Tax	Rs m	58	275	-35	-112.9%	-161.6%
Profit after tax	Rs m	24	273	-87	-131.9%	-456.1%
Gross profit margin	%	0.5	4.5	-5.8
Effective tax rate	%	70.2	50.2	28.9
Net profit margin	%	0.5	6.8	-1.9

Year-on-Year Performance:

• The company's operating income during the quarter fell 3.3% on a year-on-year (YoY) basis. The expenses were up by 4.7% YoY during the same period.
• The company's operating profit declined by 1180.6% YoY during the quarter. Consequently, operating profit margins witnessed a decline and stood at 5.8% in 1QFY20 as against 0.5% in 1QFY19.
• Depreciation charges increased by 59.9% and finance costs increased by 21.0% YoY, respectively.
• Other income increased by 58.9% YoY during the quarter.
• Net profit for the quarter declined by 456.1% YoY. Net profit margins during the quarter declined from 0.5% in 1QFY19 to -1.9% in 1QFY20.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter grew 24.4% on a quarter-on-quarter (QoQ) basis. The expenses were up by 38.6% QoQ during the same period.
• The company's operating profit declined by 261.4% QoQ during the quarter. Consequently, operating profit margins witnessed a decline and stood at 5.8% in 1QFY20 as against 4.5% in 4QFY19.
• Net profit for the quarter declined by 131.9% QoQ, while net profit margins declined from 6.8% in 4QFY19 to -1.9% in 1QFY20.

To see how GE POWER INDIA LTD has performed over the last eight quarters,please visit here.

GE POWER INDIA LTD Share Price Performance

Over the last one year,GE POWER INDIA LTD share price has moved up from Rs 771.1 to Rs 829.1, registering a Gain of Rs 58.1 or around 7.5%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 17,787.2 (up 0.5%). Over the last one year it has moved down from 18,130.0 to 17,787.2, a gain of 343 points (down 1.9%).

Overall, the S&P BSE SENSEX is up 3.4% over the year.

Current Valuations

At the current price of Rs 829.1, the price to earnings (P/E) ratio of GE POWER INDIA LTD stands at 85.9 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 6.7 times.