D. B. CORP Announces Quarterly Results (2QFY20); Net Profit Up 63.6%

Thu, 17 Oct

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

D. B. CORP Quarterly Financials

No. of Mths Qtr. Ending		3 Sep-18*	3 Jun-19*	3 Sep-19*	QoQ Change	YoY Change
Net Sales	Rs m	5,821	6,070	5,314	-12.5%	-8.7%
Other income	Rs m	54	41	22	-47.4%	-59.4%
Turnover	Rs m	5,874	6,112	5,336	-12.7%	-9.2%
Expenses	Rs m	4,898	4,315	4,330	0.3%	-11.6%
Gross profit	Rs m	923	1,755	984	-43.9%	6.6%
Depreciation	Rs m	251	304	303	-0.2%	20.8%
Interest	Rs m	30	53	64	20.3%	113.1%
Profit before tax	Rs m	696	1,439	639	-55.6%	-8.2%
Tax	Rs m	234	502	-117	-123.3%	-150.0%
Profit after tax	Rs m	462	937	756	-19.4%	63.6%
Gross profit margin	%	15.9	28.9	18.5
Effective tax rate	%	33.6	34.9	-18.3
Net profit margin	%	7.9	15.3	14.2

Year-on-Year Performance:

• The company's operating income during the quarter fell 8.7% on a year-on-year (YoY) basis. The expenses were down by 11.6% YoY during the same period.
• The company's operating profit increased by 6.6% YoY during the quarter. Consequently, operating profit margins witnessed a growth and stood at 18.5% in 2QFY20 as against 15.9% in 2QFY19.
• Depreciation charges increased by 20.8% and finance costs increased by 113.1% YoY, respectively.
• Other income declined by 59.4% YoY during the quarter.
• Net profit for the quarter increased by 63.6% YoY. Net profit margins during the quarter increased from 7.9% in 2QFY19 to 14.2% in 2QFY20.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter fell 12.5% on a quarter-on-quarter (QoQ) basis. The expenses were up by 0.3% QoQ during the same period.
• The company's operating profit declined by 43.9% QoQ during the quarter. Consequently, operating profit margins witnessed a decline and stood at 18.5% in 2QFY20 as against 28.9% in 1QFY19.
• Net profit for the quarter declined by 19.4% QoQ, while net profit margins declined from 15.3% in 1QFY19 to 14.2% in 2QFY20.

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

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D. B. CORP Share Price Performance

Over the last one year,D. B. CORP share price has moved down from Rs 188.2 to Rs 157.0, registering a Loss of Rs 31.2 or around 16.6%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 7,507.7 (down 0.4%). Over the last one year it has moved up from 7,278.2 to 7,507.7, a gain of 229 points (up 3.2%).

Overall, the S&P BSE SENSEX is up 10.0% over the year.

Current Valuations

At the current price of Rs 157.0, the price to earnings (P/E) ratio of D. B. CORP stands at 9.6 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 1.5 times.