HCC Announces Quarterly Results (1QFY20); Net Profit Up 23.6%

Mon, 5 Aug

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

HCC Quarterly Financials

No. of Mths Qtr. Ending		3 Jun-18*	3 Mar-19*	3 Jun-19*	QoQ Change	YoY Change
Net Sales	Rs m	9,331	13,225	8,311	-37.2%	-10.9%
Other income	Rs m	681	254	66	-74.2%	-90.4%
Turnover	Rs m	10,012	13,479	8,376	-37.9%	-16.3%
Expenses	Rs m	8,300	12,920	6,525	-49.5%	-21.4%
Gross profit	Rs m	1,031	-3,587	1,785		73.1%
Depreciation	Rs m	388	322	309	-3.9%	-20.4%
Interest	Rs m	1,612	2,090	1,723	-17.6%	6.9%
Profit before tax	Rs m	-288	-5,745	-181
Tax	Rs m	-91	-1,466	-30
Profit after tax	Rs m	-197	-4,279	-151
Gross profit margin	%	11.1	-27.1	21.5
Effective tax rate	%	31.6	25.5	16.6
Net profit margin	%	-2.0	-31.7	-1.8

Year-on-Year Performance:

• The company's operating income during the quarter fell 10.9% on a year-on-year (YoY) basis. The expenses were down by 21.4% YoY during the same period.
• The company's operating profit increased by 73.1% YoY during the quarter. Consequently, operating profit margins witnessed a growth and stood at 21.5% in 1QFY20 as against 11.1% in 1QFY19.
• Depreciation charges declined by 20.4% and finance costs increased by 6.9% YoY, respectively.
• Other income declined by 90.4% YoY during the quarter.
• Net profit for the quarter increased by 23.6% YoY. Net profit margins during the quarter increased from -2.0% in 1QFY19 to -1.8% in 1QFY20.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter fell 37.2% on a quarter-on-quarter (QoQ) basis. The expenses were down by 49.5% QoQ during the same period.
• The company's operating profit increased by 149.8% QoQ during the quarter. Consequently, operating profit margins witnessed a growth and stood at 21.5% in 1QFY20 as against 27.1% in 4QFY19.
• Net profit for the quarter increased by 96.5% QoQ, while net profit margins increased from -31.7% in 4QFY19 to -1.8% in 1QFY20.

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

HCC Share Price Performance

Over the last one year,HCC share price has moved down from Rs 11.7 to Rs 8.0, registering a Loss of Rs 3.7 or around 32.0%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 1,989.5 (down 2.0%). Over the last one year it has moved down from 2,082.3 to 1,989.5, a gain of 93 points (down 4.5%).

Overall, the S&P BSE SENSEX is down 1.3% over the year.

Current Valuations

At the current price of Rs 8.0, the price to earnings (P/E) ratio of HCC stands at 0.3 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at -0.6 times.