BINANI INDUSTRIES Announces Quarterly Results (3QFY19); Net Profit Down 30.3%

Fri, 22 Feb

BINANI INDUSTRIES has announced its results for the quarter ended December 2018. Here is a detailed performance review of the same:

BINANI INDUSTRIES Quarterly Financials

No. of Mths Qtr. Ending		3 Dec-17*	3 Sep-18*	3 Dec-18*	QoQ Change	YoY Change
Net Sales	Rs m	35	-5	6		-82.3%
Other income	Rs m	15	17	1	-95.4%	-94.5%
Turnover	Rs m	49	13	7	-46.1%	-85.9%
Expenses	Rs m	-77	-129	21
Gross profit	Rs m	102	124	-15	-112.3%	-115.1%
Depreciation	Rs m	2	2	1	-17.6%	-33.3%
Interest	Rs m	126	156	0	-100.0%	-100.0%
Profit before tax	Rs m	-12	-16	-16
Tax	Rs m	0	-1	0		0.0%
Profit after tax	Rs m	-12	-15	-16
Gross profit margin	%	294.5	-2,760.0	-250.8
Effective tax rate	%	0.0	4.4	0.0
Net profit margin	%	-24.9	-119.5	-230.4

Year-on-Year Performance:

• The company's operating income during the quarter fell 82.3% on a year-on-year (YoY) basis. The expenses were down by 127.7% YoY during the same period.
• The company's operating profit declined by 115.1% YoY during the quarter. Consequently, operating profit margins witnessed a decline and stood at 250.8% in 3QFY19 as against 294.5% in 3QFY18.
• Depreciation charges declined by 33.3% and finance costs declined by 100.0% YoY, respectively.
• Other income declined by 94.5% YoY during the quarter.
• Net profit for the quarter declined by 30.3% YoY. Net profit margins during the quarter declined from -24.9% in 3QFY18 to -230.4% in 3QFY19.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter fell 235.6% on a quarter-on-quarter (QoQ) basis. The expenses were down by 116.6% QoQ during the same period.
• The company's operating profit increased by 112.3% QoQ during the quarter. Consequently, operating profit margins witnessed a growth and stood at 250.8% in 3QFY19 as against 2760.0% in 2QFY18.
• Net profit for the quarter declined by 3.9% QoQ, while net profit margins declined from -115.4% in 2QFY18 to -230.4% in 3QFY19.

To see how BINANI INDUSTRIES has performed over the last eight quarters, please visit here.

BINANI INDUSTRIES Share Price Performance

Over the last one year, BINANI INDUSTRIES share price has moved up from Rs 104.0 to Rs 34.0, registering a Loss of Rs 70.0 or around 67.3%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 10,595.1 (up 0.9%). Over the last one year it has moved down from 14,857.9 to 10,595.1, a gain of 4,263 points (down 28.7%).

Overall, the S&P BSE SENSEX is up 6.0% over the year.

Current Valuations

At the current price of Rs 34.0, the price to book value (P/BV) ratio of BINANI INDUSTRIES stands at -0.1 times.