GANDHI SPECIAL TUBES Announces Quarterly Results (1QFY20); Net Profit Down 49.0%

Fri, 2 Aug

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

GANDHI SPECIAL TUBES Quarterly Financials

No. of Mths Qtr. Ending		3 Jun-18*	3 Mar-19*	3 Jun-19*	QoQ Change	YoY Change
Net Sales	Rs m	376	241	238	-0.9%	-36.5%
Other income	Rs m	12	23	11	-52.9%	-11.8%
Turnover	Rs m	388	264	249	-5.5%	-35.7%
Expenses	Rs m	229	151	162	7.7%	-29.0%
Gross profit	Rs m	147	90	76	-15.3%	-48.2%
Depreciation	Rs m	9	9	9	-6.4%	-1.7%
Interest	Rs m	0	0	0	0.0%	0.0%
Profit before tax	Rs m	151	104	78	-24.5%	-47.9%
Tax	Rs m	38	29	21	-28.6%	-44.7%
Profit after tax	Rs m	113	75	58	-23.0%	-49.0%
Gross profit margin	%	39.1	37.3	31.9
Effective tax rate	%	24.9	28.0	26.5
Net profit margin	%	29.1	28.3	23.1

Year-on-Year Performance:

• The company's operating income during the quarter fell 36.5% on a year-on-year (YoY) basis. The expenses were down by 29.0% YoY during the same period.
• The company's operating profit declined by 48.2% YoY during the quarter. Consequently, operating profit margins witnessed a decline and stood at 31.9% in 1QFY20 as against 39.1% in 1QFY19.
• Depreciation charges declined by 1.7% and finance costs increased by 0.0% YoY, respectively.
• Other income declined by 11.8% YoY during the quarter.
• Net profit for the quarter declined by 49.0% YoY. Net profit margins during the quarter declined from 29.1% in 1QFY19 to 23.1% in 1QFY20.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter fell 0.9% on a quarter-on-quarter (QoQ) basis. The expenses were up by 7.7% QoQ during the same period.
• The company's operating profit declined by 15.3% QoQ during the quarter. Consequently, operating profit margins witnessed a decline and stood at 31.9% in 1QFY20 as against 37.3% in 4QFY19.
• Net profit for the quarter declined by 23.0% QoQ, while net profit margins declined from 28.4% in 4QFY19 to 23.1% in 1QFY20.

To see how GANDHI SPECIAL TUBES has performed over the last eight quarters,please visit here.

GANDHI SPECIAL TUBES Share Price Performance

Over the last one year,GANDHI SPECIAL TUBES share price has moved down from Rs 380.9 to Rs 340.1, registering a Loss of Rs 40.8 or around 10.7%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 9,075.7 (down 3.0%). Over the last one year it has moved down from 12,614.7 to 9,075.7, a gain of 3,539 points (down 28.1%).

Overall, the S&P BSE SENSEX is down 2.3% over the year.

Current Valuations

At the current price of Rs 340.1, the price to earnings (P/E) ratio of GANDHI SPECIAL TUBES stands at 14.2 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 2.7 times.