ELGI EQUIPMENTS Announces Quarterly Results (3QFY20); Net Profit Down 46.8%

Tue, 11 Feb

ELGI EQUIPMENTS has announced its results for the quarter ended December 2019. Here is a detailed performance review of the same:

ELGI EQUIPMENTS Quarterly Financials

No. of Mths Qtr. Ending		3 Dec-18*	3 Sep-19*	3 Dec-19*	QoQ Change	YoY Change
Net Sales	Rs m	4,702	4,447	4,633	4.2%	-1.5%
Other income	Rs m	21	32	77	140.2%	270.6%
Turnover	Rs m	4,722	4,479	4,710	5.1%	-0.3%
Expenses	Rs m	4,227	4,113	4,310	4.8%	2.0%
Gross profit	Rs m	475	334	323	-3.4%	-32.0%
Depreciation	Rs m	145	157	169	7.9%	16.5%
Interest	Rs m	27	36	39	6.6%	41.9%
Profit before tax	Rs m	323	173	191	10.7%	-40.7%
Tax	Rs m	92	59	69	17.4%	-25.4%
Profit after tax	Rs m	230	114	123	7.3%	-46.8%
Gross profit margin	%	10.1	7.5	7.0
Effective tax rate	%	28.6	33.9	35.9
Net profit margin	%	4.9	2.6	2.6

Year-on-Year Performance:

• The company's operating income during the quarter fell 1.5% on a year-on-year (YoY) basis. The expenses were up by 2.0% YoY during the same period.
• The company's operating profit declined by 32.0% YoY during the quarter. Consequently, operating profit margins witnessed a decline and stood at 7.0% in 3QFY20 as against 10.1% in 3QFY19.
• Depreciation charges increased by 16.5% and finance costs increased by 41.9% YoY, respectively.
• Other income increased by 270.6% YoY during the quarter.
• Net profit for the quarter declined by 46.8% YoY. Net profit margins during the quarter declined from 4.9% in 3QFY19 to 2.6% in 3QFY20.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter grew 4.2% on a quarter-on-quarter (QoQ) basis. The expenses were up by 4.8% QoQ during the same period.
• The company's operating profit declined by 3.4% QoQ during the quarter. Consequently, operating profit margins witnessed a decline and stood at 7.0% in 3QFY20 as against 7.5% in 2QFY19.
• Net profit for the quarter increased by 7.3% QoQ, while net profit margins increased from 2.5% in 2QFY19 to 2.6% in 3QFY20.

To see how ELGI EQUIPMENTS has performed over the last eight quarters,please visit here.

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ELGI EQUIPMENTS Share Price Performance

Over the last one year,ELGI EQUIPMENTS share price has moved up from Rs 240.0 to Rs 245.2, registering a Gain of Rs 5.2 or around 2.2%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 16,949.4 (up 0.3%). Over the last one year it has moved up from 16,600.7 to 16,949.4, a gain of 349 points (up 2.1%).

Overall, the S&P BSE SENSEX is up 13.7% over the year.

Current Valuations

At the current price of Rs 245.2, the price to earnings (P/E) ratio of ELGI EQUIPMENTS stands at 51.0 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 5.0 times.