NESCO Announces Quarterly Results (1QFY21); Net Profit Up 35.8%

Tue, 1 Sep

NESCO has announced its results for the quarter ended June 2020. Here is a detailed performance review of the same:

NESCO Quarterly Financials

Year-on-Year Performance:

• The company's operating income during the quarter fell 11.4% on a year-on-year (YoY) basis. The expenses were down by 33.6% YoY during the same period.
• The company's operating profit increased by 2.1% YoY during the quarter. Consequently, operating profit margins witnessed a growth and stood at 71.7% in 1QFY21 as against 62.3% in 1QFY20.
• Depreciation charges increased by 111.9% and finance costs increased by 31.3% YoY, respectively.
• Other income increased by 1624.1% YoY during the quarter.
• Net profit for the quarter increased by 35.8% YoY. Net profit margins during the quarter increased from 47.6% in 1QFY20 to 56.2% in 1QFY21.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter fell 41.1% on a quarter-on-quarter (QoQ) basis. The expenses were down by 57.7% QoQ during the same period.
• The company's operating profit declined by 30.3% QoQ during the quarter. Consequently, operating profit margins witnessed a growth and stood at 71.7% in 1QFY21 as against 60.6% in 4QFY20.
• Net profit for the quarter declined by 2.9% QoQ, while net profit margins increased from 40.3% in 4QFY20 to 56.2% in 1QFY21.

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

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NESCO Share Price Performance

Over the last one year,NESCO share price has moved up from Rs 525.9 to Rs 538.1, registering a Gain of Rs 12.2 or around 2.3%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 1,738.3 (down 1.1%). Over the last one year it has moved down from 2,047.7 to 1,738.3, a gain of 309 points (down 15.1%).

Overall, the S&P BSE SENSEX is up 5.9% over the year.

Current Valuations

At the current price of Rs 538.1, the price to earnings (P/E) ratio of NESCO stands at 15.3 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 3.2 times.