INGERSOLL RAND Announces Quarterly Results (4QFY19); Net Profit Down 36.4%

Tue, 21 May

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

INGERSOLL RAND Quarterly Financials

No. of Mths Qtr. Ending		3 Mar-18*	3 Dec-18*	3 Mar-19*	QoQ Change	YoY Change
Net Sales	Rs m	1,363	2,075	1,913	-7.8%	40.4%
Other income	Rs m	181	72	74	3.9%	-59.0%
Turnover	Rs m	1,544	2,146	1,987	-7.4%	28.7%
Expenses	Rs m	1,077	1,807	1,668	-7.7%	54.9%
Gross profit	Rs m	286	267	245	-8.3%	-14.3%
Depreciation	Rs m	29	29	29	-2.1%	-2.4%
Interest	Rs m	24	0	4		-84.6%
Profit before tax	Rs m	414	310	287	-7.3%	-30.6%
Tax	Rs m	149	100	119	18.3%	-20.3%
Profit after tax	Rs m	265	209	168	-19.6%	-36.4%
Gross profit margin	%	21.0	12.9	12.8
Effective tax rate	%	36.0	32.4	41.4
Net profit margin	%	17.2	9.8	8.5

Year-on-Year Performance:

• The company's operating income during the quarter grew 40.4% on a year-on-year (YoY) basis. The expenses were up by 54.9% YoY during the same period.
• The company's operating profit declined by 14.3% YoY during the quarter. Consequently, operating profit margins witnessed a decline and stood at 12.8% in 4QFY19 as against 21.0% in 4QFY18.
• Depreciation charges declined by 2.4% and finance costs declined by 84.6% YoY, respectively.
• Other income declined by 59.0% YoY during the quarter.
• Net profit for the quarter declined by 36.4% YoY. Net profit margins during the quarter declined from 17.2% in 4QFY18 to 8.5% in 4QFY19.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter fell 7.8% on a quarter-on-quarter (QoQ) basis. The expenses were down by 7.7% QoQ during the same period.
• The company's operating profit declined by 8.3% QoQ during the quarter. Consequently, operating profit margins witnessed a decline and stood at 12.8% in 4QFY19 as against 12.9% in 3QFY18.
• Net profit for the quarter declined by 19.6% QoQ, while net profit margins declined from 9.7% in 3QFY18 to 8.5% in 4QFY19.

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 667.4 to Rs 589.0, registering a Loss of Rs 78.4 or around 11.7%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 18,647.2 (down 0.5%). Over the last one year it has moved up from 18,293.4 to 18,647.2, a gain of 354 points (up 1.9%).

Overall, the S&P BSE SENSEX is up 13.9% over the year.

Current Valuations

At the current price of Rs 589.0, the price to earnings (P/E) ratio of INGERSOLL RAND stands at 23.0 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 1.6 times.