EROS INTERNATIONAL Announces Quarterly Results (2QFY19); Net Profit Up 34.4%

Tue, 6 Nov

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

EROS INTERNATIONAL Quarterly Financials

No. of Mths Qtr. Ending		3 Sep-17*	3 Jun-18*	3 Sep-18*	QoQ Change	YoY Change
Net Sales	Rs m	2,683	2,179	2,929	34.4%	9.2%
Other income	Rs m	57	56	277	390.8%	388.2%
Turnover	Rs m	2,739	2,236	3,206	43.4%	17.0%
Expenses	Rs m	1,847	1,246	2,113	69.6%	14.4%
Gross profit	Rs m	835	933	816	-12.6%	-2.3%
Depreciation	Rs m	24	24	25	6.8%	2.9%
Interest	Rs m	214	195	176	-10.0%	-17.8%
Profit before tax	Rs m	654	771	892	15.7%	36.4%
Tax	Rs m	79	172	119	-30.8%	50.9%
Profit after tax	Rs m	575	600	773	29.0%	34.4%
Gross profit margin	%	31.1	42.8	27.9
Effective tax rate	%	12.1	22.3	13.3
Net profit margin	%	21.0	26.8	24.1

Year-on-Year Performance:

• The company's operating income during the quarter grew 9.2% on a year-on-year (YoY) basis. The expenses were up by 14.4% YoY during the same period.
• The company's operating profit declined by 2.3% YoY during the quarter. Consequently, operating profit margins witnessed a decline and stood at 27.9% in 2QFY19 as against 31.1% in 2QFY18.
• Depreciation charges increased by 2.9% and finance costs declined by 17.8% YoY, respectively.
• Other income increased by 388.2% YoY during the quarter.
• Net profit for the quarter increased by 34.4% YoY. Net profit margins during the quarter increased from 21.0% in 2QFY18 to 24.1% in 2QFY19.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter grew 34.4% on a quarter-on-quarter (QoQ) basis. The expenses were up by 69.6% QoQ during the same period.
• The company's operating profit declined by 12.6% QoQ during the quarter. Consequently, operating profit margins witnessed a decline and stood at 27.9% in 2QFY19 as against 42.8% in 1QFY18.
• Net profit for the quarter increased by 29.0% QoQ, while net profit margins declined from 26.8% in 1QFY18 to 24.1% in 2QFY19.

To see how EROS INTERNATIONAL has performed over the last eight quarters, please visit here.

EROS INTERNATIONAL Share Price Performance

Over the last one year, EROS INTERNATIONAL share price has moved up from Rs 213.9 to Rs 102.5, registering a Loss of Rs 111.4 or around 52.1%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 7,087.2 (up 0.6%). Over the last one year it has moved up from 6,038.9 to 7,087.2, a gain of 1,048 points (up 17.4%).

Overall, the S&P BSE SENSEX is up 3.7% over the year.

Current Valuations

At the current price of Rs 102.5, the price to earnings (P/E) ratio of EROS INTERNATIONAL stands at 3.6 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 0.4 times.