D. B. CORP Announces Quarterly Results (1QFY20); Net Profit Down 3.9%

Fri, 19 Jul

D. B. CORP has announced its results for the quarter ended June 2019. Here is a detailed performance review of the same:

D. B. CORP Quarterly Financials

No. of Mths Qtr. Ending		3 Jun-18*	3 Mar-19*	3 Jun-19*	QoQ Change	YoY Change
Net Sales	Rs m	6,324	5,885	6,070	3.1%	-4.0%
Other income	Rs m	68	25	41	63.5%	-39.7%
Turnover	Rs m	6,392	5,910	6,112	3.4%	-4.4%
Expenses	Rs m	4,644	4,844	4,315	-10.9%	-7.1%
Gross profit	Rs m	1,680	1,042	1,755	68.5%	4.4%
Depreciation	Rs m	243	243	304	24.9%	24.7%
Interest	Rs m	18	18	53	191.2%	202.4%
Profit before tax	Rs m	1,488	805	1,439	78.7%	-3.2%
Tax	Rs m	512	261	502	92.6%	-1.9%
Profit after tax	Rs m	976	545	937	72.1%	-3.9%
Gross profit margin	%	26.6	17.7	28.9
Effective tax rate	%	34.4	32.4	34.9
Net profit margin	%	15.3	9.2	15.3

Year-on-Year Performance:

• The company's operating income during the quarter fell 4.0% on a year-on-year (YoY) basis. The expenses were down by 7.1% YoY during the same period.
• The company's operating profit increased by 4.4% YoY during the quarter. Consequently, operating profit margins witnessed a growth and stood at 28.9% in 1QFY20 as against 26.6% in 1QFY19.
• Depreciation charges increased by 24.7% and finance costs increased by 202.4% YoY, respectively.
• Other income declined by 39.7% YoY during the quarter.
• Net profit for the quarter declined by 3.9% YoY. Net profit margins during the quarter increased from 15.3% in 1QFY19 to 15.3% in 1QFY20.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter grew 3.1% on a quarter-on-quarter (QoQ) basis. The expenses were down by 10.9% QoQ during the same period.
• The company's operating profit increased by 68.5% QoQ during the quarter. Consequently, operating profit margins witnessed a growth and stood at 28.9% in 1QFY20 as against 17.7% in 4QFY19.
• Net profit for the quarter increased by 72.1% QoQ, while net profit margins increased from 9.2% in 4QFY19 to 15.3% in 1QFY20.

To see how D. B. CORP has performed over the last eight quarters,please visit here.

D. B. CORP Share Price Performance

Over the last one year,D. B. CORP share price has moved down from Rs 265.3 to Rs 175.4, registering a Loss of Rs 90.0 or around 33.9%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 7,658.6 (up 0.2%). Over the last one year it has moved up from 7,256.0 to 7,658.6, a gain of 403 points (up 5.5%).

Overall, the S&P BSE SENSEX is up 6.9% over the year.

Current Valuations

At the current price of Rs 175.4, the price to earnings (P/E) ratio of D. B. CORP stands at 11.9 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 1.7 times.