NLC INDIA LTD Announces Quarterly Results (4QFY19); Net Profit Down 150.5%

Mon, 3 Jun

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

NLC INDIA LTD Quarterly Financials

No. of Mths Qtr. Ending		3 Mar-18*	3 Dec-18*	3 Mar-19*	QoQ Change	YoY Change
Net Sales	Rs m	25,429	18,738	19,023	1.5%	-25.2%
Other income	Rs m	2,839	1,965	3,645	85.5%	28.4%
Turnover	Rs m	28,268	20,703	22,668	9.5%	-19.8%
Expenses	Rs m	16,641	13,174	16,778	27.4%	0.8%
Gross profit	Rs m	7,162	5,404	2,214	-59.0%	-69.1%
Depreciation	Rs m	2,741	1,783	1,738	-2.5%	-36.6%
Interest	Rs m	548	996	1,441	44.8%	163.0%
Profit before tax	Rs m	6,712	4,591	2,680	-41.6%	-60.1%
Tax	Rs m	2,898	1,439	4,606	220.1%	58.9%
Profit after tax	Rs m	3,813	3,152	-1,926	-161.1%	-150.5%
Gross profit margin	%	28.2	28.8	11.6
Effective tax rate	%	43.2	31.3	171.9
Net profit margin	%	13.5	15.2	-8.5

Year-on-Year Performance:

• The company's operating income during the quarter fell 25.2% on a year-on-year (YoY) basis. The expenses were up by 0.8% YoY during the same period.
• The company's operating profit declined by 69.1% YoY during the quarter. Consequently, operating profit margins witnessed a decline and stood at 11.6% in 4QFY19 as against 28.2% in 4QFY18.
• Depreciation charges declined by 36.6% and finance costs increased by 163.0% YoY, respectively.
• Other income increased by 28.4% YoY during the quarter.
• Net profit for the quarter declined by 150.5% YoY. Net profit margins during the quarter declined from 13.5% in 4QFY18 to -8.5% in 4QFY19.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter grew 1.5% on a quarter-on-quarter (QoQ) basis. The expenses were up by 27.4% QoQ during the same period.
• The company's operating profit declined by 59.0% QoQ during the quarter. Consequently, operating profit margins witnessed a decline and stood at 11.6% in 4QFY19 as against 28.8% in 3QFY18.
• Net profit for the quarter declined by 161.1% QoQ, while net profit margins declined from 15.2% in 3QFY18 to -8.5% in 4QFY19.

To see how NLC INDIA LTD has performed over the last eight quarters, please visit here.

NLC INDIA LTD Share Price Performance

Over the last one year, NLC INDIA LTD share price has moved up from Rs 83.3 to Rs 65.9, registering a Loss of Rs 17.4 or around 20.9%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 2,016.0 (up 0.3%). Over the last one year it has moved down from 2,089.1 to 2,016.0, a gain of 73 points (down 3.5%).

Overall, the S&P BSE SENSEX is up 13.2% over the year.

Current Valuations

At the current price of Rs 65.9, the price to earnings (P/E) ratio of NLC INDIA LTD stands at 24.7 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 0.8 times.