POKARNA LTD Announces Quarterly Results (3QFY19); Net Profit Up 86.8%

Thu, 31 Jan

POKARNA LTD has announced its results for the quarter ended December 2018. Here is a detailed performance review of the same:

POKARNA LTD Quarterly Financials

No. of Mths Qtr. Ending		3 Dec-17*	3 Sep-18*	3 Dec-18*	QoQ Change	YoY Change
Net Sales	Rs m	881	1,103	1,196	8.4%	35.7%
Other income	Rs m	14	34	13	-61.2%	-8.8%
Turnover	Rs m	896	1,137	1,209	6.3%	35.0%
Expenses	Rs m	582	777	763	-1.8%	31.3%
Gross profit	Rs m	299	326	432	32.6%	44.4%
Depreciation	Rs m	51	56	55	-0.3%	8.5%
Interest	Rs m	77	65	63	-3.0%	-17.8%
Profit before tax	Rs m	186	239	327	36.6%	75.8%
Tax	Rs m	41	36	56	57.0%	36.9%
Profit after tax	Rs m	145	204	271	33.0%	86.8%
Gross profit margin	%	34.0	29.6	36.2
Effective tax rate	%	22.1	14.9	17.2
Net profit margin	%	16.2	17.9	22.4

Year-on-Year Performance:

• The company's operating income during the quarter grew 35.7% on a year-on-year (YoY) basis. The expenses were up by 31.3% YoY during the same period.
• The company's operating profit increased by 44.4% YoY during the quarter. Consequently, operating profit margins witnessed a growth and stood at 36.2% in 3QFY19 as against 34.0% in 3QFY18.
• Depreciation charges increased by 8.5% and finance costs declined by 17.8% YoY, respectively.
• Other income declined by 8.8% YoY during the quarter.
• Net profit for the quarter increased by 86.8% YoY. Net profit margins during the quarter increased from 16.2% in 3QFY18 to 22.4% in 3QFY19.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter grew 8.4% on a quarter-on-quarter (QoQ) basis. The expenses were down by 1.8% QoQ during the same period.
• The company's operating profit increased by 32.6% QoQ during the quarter. Consequently, operating profit margins witnessed a growth and stood at 36.2% in 3QFY19 as against 29.6% in 2QFY18.
• Net profit for the quarter increased by 33.0% QoQ, while net profit margins increased from 17.9% in 2QFY18 to 22.4% in 3QFY19.

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

POKARNA LTD Share Price Performance

Over the last one year, POKARNA LTD share price has moved up from Rs 219.4 to Rs 175.5, registering a Loss of Rs 43.9 or around 20.0%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 10,940.7 (up 1.2%). Over the last one year it has moved down from 15,427.4 to 10,940.7, a gain of 4,487 points (down 29.1%).

Overall, the S&P BSE SENSEX is up 0.4% over the year.

Current Valuations

At the current price of Rs 175.5, the price to earnings (P/E) ratio of POKARNA LTD stands at 1.5 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 0.6 times.