HINDUSTAN COPPER Announces Quarterly Results (4QFY19); Net Profit Up 83.9%

Wed, 29 May

HINDUSTAN COPPER has announced its results for the quarter ended March 2019. Here is a detailed performance review of the same:

HINDUSTAN COPPER Quarterly Financials

No. of Mths Qtr. Ending		3 Mar-18*	3 Dec-18*	3 Mar-19*	QoQ Change	YoY Change
Net Sales	Rs m	3,827	4,742	4,548	-4.1%	18.8%
Other income	Rs m	109	47	203	333.3%	86.6%
Turnover	Rs m	3,936	4,789	4,751	-0.8%	20.7%
Expenses	Rs m	3,019	3,546	3,104	-12.5%	2.8%
Gross profit	Rs m	808	1,196	1,444	20.7%	78.8%
Depreciation	Rs m	509	655	730	11.5%	43.6%
Interest	Rs m	69	75	171	129.2%	147.5%
Profit before tax	Rs m	339	514	745	45.2%	120.0%
Tax	Rs m	119	167	341	103.9%	186.6%
Profit after tax	Rs m	220	346	404	16.8%	83.9%
Gross profit margin	%	21.1	25.2	31.7
Effective tax rate	%	35.1	32.6	45.8
Net profit margin	%	5.6	7.2	8.5

Year-on-Year Performance:

• The company's operating income during the quarter grew 18.8% on a year-on-year (YoY) basis. The expenses were up by 2.8% YoY during the same period.
• The company's operating profit increased by 78.8% YoY during the quarter. Consequently, operating profit margins witnessed a growth and stood at 31.7% in 4QFY19 as against 21.1% in 4QFY18.
• Depreciation charges increased by 43.6% and finance costs increased by 147.5% YoY, respectively.
• Other income increased by 86.6% YoY during the quarter.
• Net profit for the quarter increased by 83.9% YoY. Net profit margins during the quarter increased from 5.6% in 4QFY18 to 8.5% in 4QFY19.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter fell 4.1% on a quarter-on-quarter (QoQ) basis. The expenses were down by 12.5% QoQ during the same period.
• The company's operating profit increased by 20.7% QoQ during the quarter. Consequently, operating profit margins witnessed a growth and stood at 31.7% in 4QFY19 as against 25.2% in 3QFY18.
• Net profit for the quarter increased by 16.8% QoQ, while net profit margins increased from 7.2% in 3QFY18 to 8.5% in 4QFY19.

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

HINDUSTAN COPPER Share Price Performance

Over the last one year, HINDUSTAN COPPER share price has moved up from Rs 75.0 to Rs 46.4, registering a Loss of Rs 28.6 or around 38.2%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 10,999.2 (down 1.2%). Over the last one year it has moved down from 13,637.9 to 10,999.2, a gain of 2,639 points (down 19.3%).

Overall, the S&P BSE SENSEX is up 12.9% over the year.

Current Valuations

At the current price of Rs 46.4, the price to earnings (P/E) ratio of HINDUSTAN COPPER stands at 29.4 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 2.8 times.