HUBTOWN LTD Announces Quarterly Results (2QFY19); Net Profit Down 97.7%

Fri, 23 Nov

HUBTOWN LTD has announced its results for the quarter ended September 2018. Here is a detailed performance review of the same:

HUBTOWN LTD Quarterly Financials

No. of Mths Qtr. Ending		3 Sep-17*	3 Jun-18*	3 Sep-18*	QoQ Change	YoY Change
Net Sales	Rs m	502	816	2,547	212.1%	407.2%
Other income	Rs m	1,215	255	170	-33.3%	-86.0%
Turnover	Rs m	1,717	1,071	2,717	153.7%	58.3%
Expenses	Rs m	300	275	2,534	821.4%	744.4%
Gross profit	Rs m	202	541	13	-97.6%	-93.5%
Depreciation	Rs m	7	7	7	0.0%	-2.9%
Interest	Rs m	1,045	709	183	-74.2%	-82.5%
Profit before tax	Rs m	365	80	-6	-107.8%	-101.7%
Tax	Rs m	-62	76	-16	-120.9%
Profit after tax	Rs m	427	4	10	142.5%	-97.7%
Gross profit margin	%	40.2	66.3	0.5
Effective tax rate	%	-17.1	95.0	254.0
Net profit margin	%	24.9	0.4	0.4

Year-on-Year Performance:

• The company's operating income during the quarter grew 407.2% on a year-on-year (YoY) basis. The expenses were up by 744.4% YoY during the same period.
• The company's operating profit declined by 93.5% YoY during the quarter. Consequently, operating profit margins witnessed a decline and stood at 0.5% in 2QFY19 as against 40.2% in 2QFY18.
• Depreciation charges declined by 2.9% and finance costs declined by 82.5% YoY, respectively.
• Other income declined by 86.0% YoY during the quarter.
• Net profit for the quarter declined by 97.7% YoY. Net profit margins during the quarter declined from 24.9% in 2QFY18 to 0.4% in 2QFY19.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter grew 212.1% on a quarter-on-quarter (QoQ) basis. The expenses were up by 821.4% QoQ during the same period.
• The company's operating profit declined by 97.6% QoQ during the quarter. Consequently, operating profit margins witnessed a decline and stood at 0.5% in 2QFY19 as against 66.3% in 1QFY18.
• Net profit for the quarter increased by 142.5% QoQ, while net profit margins declined from 0.4% in 1QFY18 to 0.4% in 2QFY19.

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

HUBTOWN LTD Share Price Performance

Over the last one year, HUBTOWN LTD share price has moved up from Rs 117.5 to Rs 43.1, registering a Loss of Rs 74.4 or around 63.3%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 1,756.5 (down 1.2%). Over the last one year it has moved down from 2,384.1 to 1,756.5, a gain of 628 points (down 26.3%).

Overall, the S&P BSE SENSEX is up 4.2% over the year.

Current Valuations

At the current price of Rs 43.1, the price to book value (P/BV) ratio of HUBTOWN LTD stands at 0.2 times.