GVK POWER & INFRA Announces Quarterly Results (4QFY19); Net Profit Up 199.8%

Thu, 30 May

GVK POWER & INFRA has announced its results for the quarter ended March 2019. Here is a detailed performance review of the same:

GVK POWER & INFRA Quarterly Financials

No. of Mths Qtr. Ending		3 Mar-18*	3 Dec-18*	3 Mar-19*	QoQ Change	YoY Change
Net Sales	Rs m	31	32	138	336.1%	340.3%
Other income	Rs m	251	195	207	6.2%	-17.5%
Turnover	Rs m	282	227	345	52.2%	22.2%
Expenses	Rs m	-10	28	483	1618.1%
Gross profit	Rs m	42	4	-345	-9957.1%	-927.3%
Depreciation	Rs m	0	0	0	0.0%	-25.0%
Interest	Rs m	21	29	22	-23.8%	6.7%
Profit before tax	Rs m	271	169	-161	-195.2%	-159.3%
Tax	Rs m	40	7	-855	-11805.5%	-2247.0%
Profit after tax	Rs m	231	162	694	329.6%	199.8%
Gross profit margin	%	133.2	11.1	-250.4
Effective tax rate	%	14.7	4.3	531.7
Net profit margin	%	82.0	71.3	201.2

Year-on-Year Performance:

• The company's operating income during the quarter grew 340.3% on a year-on-year (YoY) basis. The expenses were down by 4742.3% YoY during the same period.
• The company's operating profit declined by 927.3% YoY during the quarter. Consequently, operating profit margins witnessed a decline and stood at 250.4% in 4QFY19 as against 133.2% in 4QFY18.
• Depreciation charges declined by 25.0% and finance costs increased by 6.7% YoY, respectively.
• Other income declined by 17.5% YoY during the quarter.
• Net profit for the quarter increased by 199.8% YoY. Net profit margins during the quarter increased from 82.0% in 4QFY18 to 201.2% in 4QFY19.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter grew 336.1% on a quarter-on-quarter (QoQ) basis. The expenses were up by 1618.1% QoQ during the same period.
• The company's operating profit declined by 9957.1% QoQ during the quarter. Consequently, operating profit margins witnessed a decline and stood at 250.4% in 4QFY19 as against 11.1% in 3QFY18.
• Net profit for the quarter increased by 329.6% QoQ, while net profit margins increased from 71.4% in 3QFY18 to 201.2% in 4QFY19.

To see how GVK POWER & INFRA has performed over the last eight quarters, please visit here.

GVK POWER & INFRA Share Price Performance

Over the last one year, GVK POWER & INFRA share price has moved up from Rs 13.2 to Rs 7.2, registering a Loss of Rs 6.0 or around 45.2%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 2,018.2 (up 0.7%). Over the last one year it has moved down from 2,136.9 to 2,018.2, a gain of 119 points (down 5.6%).

Overall, the S&P BSE SENSEX is up 13.6% over the year.

Current Valuations

At the current price of Rs 7.2, the price to earnings (P/E) ratio of GVK POWER & INFRA stands at 10.0 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at -1.4 times.