EROS INTERNATIONAL Announces Quarterly Results (3QFY19); Net Profit Down 7.4%

Tue, 12 Feb

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

EROS INTERNATIONAL Quarterly Financials

No. of Mths Qtr. Ending		3 Dec-17*	3 Sep-18*	3 Dec-18*	QoQ Change	YoY Change
Net Sales	Rs m	1,935	2,929	2,959	1.0%	52.9%
Other income	Rs m	115	277	365	31.7%	218.1%
Turnover	Rs m	2,050	3,206	3,324	3.7%	62.2%
Expenses	Rs m	1,019	2,113	2,368	12.1%	132.4%
Gross profit	Rs m	916	816	591	-27.5%	-35.5%
Depreciation	Rs m	27	25	27	6.8%	0.8%
Interest	Rs m	183	176	160	-9.1%	-13.0%
Profit before tax	Rs m	821	892	770	-13.7%	-6.3%
Tax	Rs m	150	119	148	24.2%	-1.2%
Profit after tax	Rs m	672	773	622	-19.6%	-7.4%
Gross profit margin	%	47.4	27.9	20.0
Effective tax rate	%	18.2	13.3	19.2
Net profit margin	%	32.8	24.1	18.7

Year-on-Year Performance:

• The company's operating income during the quarter grew 52.9% on a year-on-year (YoY) basis. The expenses were up by 132.4% YoY during the same period.
• The company's operating profit declined by 35.5% YoY during the quarter. Consequently, operating profit margins witnessed a decline and stood at 20.0% in 3QFY19 as against 47.4% in 3QFY18.
• Depreciation charges increased by 0.8% and finance costs declined by 13.0% YoY, respectively.
• Other income increased by 218.1% YoY during the quarter.
• Net profit for the quarter declined by 7.4% YoY. Net profit margins during the quarter declined from 32.8% in 3QFY18 to 18.7% in 3QFY19.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter grew 1.0% on a quarter-on-quarter (QoQ) basis. The expenses were up by 12.1% QoQ during the same period.
• The company's operating profit declined by 27.5% QoQ during the quarter. Consequently, operating profit margins witnessed a decline and stood at 20.0% in 3QFY19 as against 27.9% in 2QFY18.
• Net profit for the quarter declined by 19.6% QoQ, while net profit margins declined from 24.1% in 2QFY18 to 18.7% in 3QFY19.

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 202.8 to Rs 70.4, registering a Loss of Rs 132.4 or around 65.3%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 7,608.0 (down 1.6%). Over the last one year it has moved up from 6,552.7 to 7,608.0, a gain of 1,055 points (up 16.1%).

Overall, the S&P BSE SENSEX is up 6.1% over the year.

Current Valuations

At the current price of Rs 70.4, the price to earnings (P/E) ratio of EROS INTERNATIONAL stands at 2.5 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 0.3 times.