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FIRSTSOURCE SOL. Announces Quarterly Results (1QFY20); Net Profit Up 2.9%

Mon, 5 Aug

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

FIRSTSOURCE SOL. Quarterly Financials

No. of Mths Qtr. Ending		3 Jun-18*	3 Mar-19*	3 Jun-19*	QoQ Change	YoY Change
Net Sales	Rs m	9,191	9,672	9,798	1.3%	6.6%
Other income	Rs m	17	10	-14	-242.6%	-186.5%
Turnover	Rs m	9,208	9,682	9,783	1.0%	6.3%
Expenses	Rs m	7,910	8,288	8,140	-1.8%	2.9%
Gross profit	Rs m	1,281	1,384	1,657	19.7%	29.3%
Depreciation	Rs m	180	190	439	131.6%	144.2%
Interest	Rs m	62	92	134	45.4%	114.7%
Profit before tax	Rs m	1,055	1,112	1,069	-3.9%	1.3%
Tax	Rs m	169	130	157	21.0%	-7.1%
Profit after tax	Rs m	886	982	912	-7.2%	2.9%
Gross profit margin	%	13.9	14.3	16.9
Effective tax rate	%	16.0	11.7	14.7
Net profit margin	%	9.6	10.1	9.3

Year-on-Year Performance:

• The company's operating income during the quarter grew 6.6% on a year-on-year (YoY) basis. The expenses were up by 2.9% YoY during the same period.
• The company's operating profit increased by 29.3% YoY during the quarter. Consequently, operating profit margins witnessed a growth and stood at 16.9% in 1QFY20 as against 13.9% in 1QFY19.
• Depreciation charges increased by 144.2% and finance costs increased by 114.7% YoY, respectively.
• Other income declined by 186.5% YoY during the quarter.
• Net profit for the quarter increased by 2.9% YoY. Net profit margins during the quarter declined from 9.6% in 1QFY19 to 9.3% in 1QFY20.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter grew 1.3% on a quarter-on-quarter (QoQ) basis. The expenses were down by 1.8% QoQ during the same period.
• The company's operating profit increased by 19.7% QoQ during the quarter. Consequently, operating profit margins witnessed a growth and stood at 16.9% in 1QFY20 as against 14.3% in 4QFY19.
• Net profit for the quarter declined by 7.2% QoQ, while net profit margins declined from 10.1% in 4QFY19 to 9.3% in 1QFY20.

To see how FIRSTSOURCE SOL. has performed over the last eight quarters,please visit here.

FIRSTSOURCE SOL. Share Price Performance

Over the last one year,FIRSTSOURCE SOL. share price has moved down from Rs 73.1 to Rs 47.0, registering a Loss of Rs 26.2 or around 35.8%.

Meanwhile, the S&P BSE IT Index is trading at Rs 15,627.6 (up 0.6%). Over the last one year it has moved up from 14,604.4 to 15,627.6, a gain of 1,023 points (up 7.0%).

Overall, the S&P BSE SENSEX is down 1.8% over the year.

Current Valuations

At the current price of Rs 47.0, the price to earnings (P/E) ratio of FIRSTSOURCE SOL. stands at 8.2 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 1.3 times.