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TECHNOCRAFT Announces Quarterly Results (3QFY20); Net Profit Up 21.5%

Fri, 7 Feb

TECHNOCRAFT has announced its results for the quarter ended December 2019. Here is a detailed performance review of the same:

TECHNOCRAFT Quarterly Financials

No. of Mths Qtr. Ending		3 Dec-18*	3 Sep-19*	3 Dec-19*	QoQ Change	YoY Change
Net Sales	Rs m	2,849	3,024	3,061	1.2%	7.4%
Other income	Rs m	37	88	190	117.2%	409.9%
Turnover	Rs m	2,886	3,112	3,251	4.5%	12.6%
Expenses	Rs m	2,413	2,589	2,680	3.5%	11.1%
Gross profit	Rs m	436	435	381	-12.5%	-12.6%
Depreciation	Rs m	68	96	101	5.3%	49.6%
Interest	Rs m	66	75	81	7.9%	22.0%
Profit before tax	Rs m	340	352	389	10.6%	14.7%
Tax	Rs m	82	29	76	167.3%	-6.8%
Profit after tax	Rs m	258	324	313	-3.2%	21.5%
Gross profit margin	%	15.3	14.4	12.5
Effective tax rate	%	24.1	8.1	19.6
Net profit margin	%	8.9	10.4	9.6

Year-on-Year Performance:

• The company's operating income during the quarter grew 7.4% on a year-on-year (YoY) basis. The expenses were up by 11.1% YoY during the same period.
• The company's operating profit declined by 12.6% YoY during the quarter. Consequently, operating profit margins witnessed a decline and stood at 12.5% in 3QFY20 as against 15.3% in 3QFY19.
• Depreciation charges increased by 49.6% and finance costs increased by 22.0% YoY, respectively.
• Other income increased by 409.9% YoY during the quarter.
• Net profit for the quarter increased by 21.5% YoY. Net profit margins during the quarter increased from 8.9% in 3QFY19 to 9.6% in 3QFY20.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter grew 1.2% on a quarter-on-quarter (QoQ) basis. The expenses were up by 3.5% QoQ during the same period.
• The company's operating profit declined by 12.5% QoQ during the quarter. Consequently, operating profit margins witnessed a decline and stood at 12.5% in 3QFY20 as against 14.4% in 2QFY19.
• Net profit for the quarter declined by 3.2% QoQ, while net profit margins declined from 10.4% in 2QFY19 to 9.6% in 3QFY20.

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

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TECHNOCRAFT Share Price Performance

Over the last one year,TECHNOCRAFT share price has moved down from Rs 551.6 to Rs 346.5, registering a Loss of Rs 205.1 or around 37.2%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 17,097.3 (down 0.8%). Over the last one year it has moved down from 17,180.5 to 17,097.3, a gain of 83 points (down 0.5%).

Overall, the S&P BSE SENSEX is up 11.4% over the year.

Current Valuations

At the current price of Rs 346.5, the price to earnings (P/E) ratio of TECHNOCRAFT stands at 8.3 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 1.0 times.