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PRAKASH INDUSTRIES Announces Quarterly Results (2QFY20); Net Profit Down 74.7%

Tue, 12 Nov

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

PRAKASH INDUSTRIES Quarterly Financials

No. of Mths Qtr. Ending		3 Sep-18*	3 Jun-19*	3 Sep-19*	QoQ Change	YoY Change
Net Sales	Rs m	9,503	8,254	7,623	-7.6%	-19.8%
Other income	Rs m	20	16	15	-8.2%	-27.1%
Turnover	Rs m	9,523	8,270	7,638	-7.6%	-19.8%
Expenses	Rs m	7,603	7,315	6,745	-7.8%	-11.3%
Gross profit	Rs m	1,900	939	878	-6.5%	-53.8%
Depreciation	Rs m	344	339	345	1.7%	0.1%
Interest	Rs m	268	246	217	-11.9%	-19.3%
Profit before tax	Rs m	1,307	370	331	-10.4%	-74.7%
Tax	Rs m	0	0	0	0.0%	0.0%
Profit after tax	Rs m	1,307	370	331	-10.4%	-74.7%
Gross profit margin	%	20.0	11.4	11.5
Effective tax rate	%	0.0	0.0	0.0
Net profit margin	%	13.7	4.5	4.3

Year-on-Year Performance:

• The company's operating income during the quarter fell 19.8% on a year-on-year (YoY) basis. The expenses were down by 11.3% YoY during the same period.
• The company's operating profit declined by 53.8% YoY during the quarter. Consequently, operating profit margins witnessed a decline and stood at 11.5% in 2QFY20 as against 20.0% in 2QFY19.
• Depreciation charges increased by 0.1% and finance costs declined by 19.3% YoY, respectively.
• Other income declined by 27.1% YoY during the quarter.
• Net profit for the quarter declined by 74.7% YoY. Net profit margins during the quarter declined from 13.7% in 2QFY19 to 4.3% in 2QFY20.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter fell 7.6% on a quarter-on-quarter (QoQ) basis. The expenses were down by 7.8% QoQ during the same period.
• The company's operating profit declined by 6.5% QoQ during the quarter. Consequently, operating profit margins witnessed a growth and stood at 11.5% in 2QFY20 as against 11.4% in 1QFY19.
• Net profit for the quarter declined by 10.4% QoQ, while net profit margins declined from 4.5% in 1QFY19 to 4.3% in 2QFY20.

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

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PRAKASH INDUSTRIES Share Price Performance

Over the last one year,PRAKASH INDUSTRIES share price has moved down from Rs 112.5 to Rs 51.0, registering a Loss of Rs 61.6 or around 54.7%.

Meanwhile, the S&P BSE CONSUMER DURABLES Index is trading at Rs 24,960.7 (up 0.1%). Over the last one year it has moved up from 19,780.8 to 24,960.7, a gain of 5,180 points (up 26.2%).

Overall, the S&P BSE SENSEX is up 15.9% over the year.

Current Valuations

At the current price of Rs 51.0, the price to earnings (P/E) ratio of PRAKASH INDUSTRIES stands at 2.0 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 0.3 times.