INGERSOLL RAND Announces Quarterly Results (2QFY20); Net Profit Up 1.2%

Thu, 14 Nov

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

INGERSOLL RAND Quarterly Financials

No. of Mths Qtr. Ending		3 Sep-18*	3 Jun-19*	3 Sep-19*	QoQ Change	YoY Change
Net Sales	Rs m	1,774	1,912	1,714	-10.3%	-3.4%
Other income	Rs m	72	72	69	-3.8%	-3.5%
Turnover	Rs m	1,845	1,983	1,783	-10.1%	-3.4%
Expenses	Rs m	1,458	1,640	1,451	-11.5%	-0.5%
Gross profit	Rs m	315	272	263	-3.2%	-16.6%
Depreciation	Rs m	28	44	48	8.8%	71.4%
Interest	Rs m	1	5	6	19.2%	785.7%
Profit before tax	Rs m	358	294	278	-5.6%	-22.4%
Tax	Rs m	134	104	51	-51.1%	-62.0%
Profit after tax	Rs m	225	191	227	19.2%	1.2%
Gross profit margin	%	17.8	14.2	15.4
Effective tax rate	%	37.3	35.2	18.2
Net profit margin	%	12.2	9.6	12.7

Year-on-Year Performance:

• The company's operating income during the quarter fell 3.4% on a year-on-year (YoY) basis. The expenses were down by 0.5% YoY during the same period.
• The company's operating profit declined by 16.6% YoY during the quarter. Consequently, operating profit margins witnessed a decline and stood at 15.4% in 2QFY20 as against 17.8% in 2QFY19.
• Depreciation charges increased by 71.4% and finance costs increased by 785.7% YoY, respectively.
• Other income declined by 3.5% YoY during the quarter.
• Net profit for the quarter increased by 1.2% YoY. Net profit margins during the quarter increased from 12.2% in 2QFY19 to 12.7% in 2QFY20.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter fell 10.3% on a quarter-on-quarter (QoQ) basis. The expenses were down by 11.5% QoQ during the same period.
• The company's operating profit declined by 3.2% QoQ during the quarter. Consequently, operating profit margins witnessed a growth and stood at 15.4% in 2QFY20 as against 14.2% in 1QFY19.
• Net profit for the quarter increased by 19.2% QoQ, while net profit margins increased from 9.6% in 1QFY19 to 12.7% in 2QFY20.

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

Get Details: These 3 Stocks are the Dark Horses of the Stock Market

INGERSOLL RAND Share Price Performance

Over the last one year,INGERSOLL RAND share price has moved up from Rs 567.7 to Rs 610.1, registering a Gain of Rs 42.4 or around 7.5%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 17,971.9 (down 0.6%). Over the last one year it has moved down from 18,309.3 to 17,971.9, a gain of 337 points (down 1.8%).

Overall, the S&P BSE SENSEX is up 14.4% over the year.

Current Valuations

At the current price of Rs 610.1, the price to earnings (P/E) ratio of INGERSOLL RAND stands at 24.2 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 1.7 times.