INGERSOLL RAND Announces Quarterly Results (1QFY20); Net Profit Down 8.0%

Fri, 16 Aug

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

INGERSOLL RAND Quarterly Financials

No. of Mths Qtr. Ending		3 Jun-18*	3 Mar-19*	3 Jun-19*	QoQ Change	YoY Change
Net Sales	Rs m	1,630	1,913	1,912	-0.1%	17.3%
Other income	Rs m	122	74	72	-3.5%	-41.2%
Turnover	Rs m	1,752	1,987	1,983	-0.2%	13.2%
Expenses	Rs m	1,403	1,668	1,640	-1.7%	16.8%
Gross profit	Rs m	226	245	272	10.9%	20.3%
Depreciation	Rs m	28	29	44	54.2%	58.1%
Interest	Rs m	1	4	5	40.5%	766.7%
Profit before tax	Rs m	320	287	294	2.5%	-7.9%
Tax	Rs m	113	119	104	-12.7%	-7.8%
Profit after tax	Rs m	207	168	191	13.3%	-8.0%
Gross profit margin	%	13.9	12.8	14.2
Effective tax rate	%	35.2	41.4	35.2
Net profit margin	%	11.8	8.5	9.6

Year-on-Year Performance:

• The company's operating income during the quarter grew 17.3% on a year-on-year (YoY) basis. The expenses were up by 16.8% YoY during the same period.
• The company's operating profit increased by 20.3% YoY during the quarter. Consequently, operating profit margins remained same and stood at 14.2% in 1QFY20.
• Depreciation charges increased by 58.1% and finance costs increased by 766.7% YoY, respectively.
• Other income declined by 41.2% YoY during the quarter.
• Net profit for the quarter declined by 8.0% YoY. Net profit margins during the quarter declined from 11.8% in 1QFY19 to 9.6% in 1QFY20.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter fell 0.1% on a quarter-on-quarter (QoQ) basis. The expenses were down by 1.7% QoQ during the same period.
• The company's operating profit increased by 10.9% QoQ during the quarter. Consequently, operating profit margins witnessed a growth and stood at 14.2% in 1QFY20 as against 12.8% in 4QFY19.
• Net profit for the quarter increased by 13.3% QoQ, while net profit margins increased from 8.5% in 4QFY19 to 9.6% in 1QFY20.

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

INGERSOLL RAND Share Price Performance

Over the last one year,INGERSOLL RAND share price has moved up from Rs 560.3 to Rs 591.2, registering a Gain of Rs 30.9 or around 5.5%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 16,952.7 (up 0.1%). Over the last one year it has moved down from 17,750.1 to 16,952.7, a gain of 797 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 591.2, the price to earnings (P/E) ratio of INGERSOLL RAND stands at 23.5 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 1.7 times.