ASAHI SONGWON Announces Quarterly Results (2QFY20); Net Profit Up 48.3%

Tue, 15 Oct

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

ASAHI SONGWON Quarterly Financials

No. of Mths Qtr. Ending		3 Sep-18*	3 Jun-19*	3 Sep-19*	QoQ Change	YoY Change
Net Sales	Rs m	839	818	716	-12.5%	-14.7%
Other income	Rs m	-17	0	4	0.0%
Turnover	Rs m	822	818	720	-12.0%	-12.4%
Expenses	Rs m	715	747	628	-16.0%	-12.2%
Gross profit	Rs m	125	71	89	24.2%	-29.1%
Depreciation	Rs m	20	21	21	1.1%	3.5%
Interest	Rs m	11	11	9	-20.4%	-18.3%
Profit before tax	Rs m	77	40	63	57.9%	-18.3%
Tax	Rs m	24	-14	-16		-166.5%
Profit after tax	Rs m	53	54	79	46.1%	48.3%
Gross profit margin	%	14.9	8.7	12.4
Effective tax rate	%	31.0	-35.4	-25.3
Net profit margin	%	6.4	6.6	10.9

Year-on-Year Performance:

• The company's operating income during the quarter fell 14.7% on a year-on-year (YoY) basis. The expenses were down by 12.2% YoY during the same period.
• The company's operating profit declined by 29.1% YoY during the quarter. Consequently, operating profit margins witnessed a decline and stood at 12.4% in 2QFY20 as against 14.9% in 2QFY19.
• Depreciation charges increased by 3.5% and finance costs declined by 18.3% YoY, respectively.
• Other income declined by 121.9% YoY during the quarter.
• Net profit for the quarter increased by 48.3% YoY. Net profit margins during the quarter increased from 6.4% in 2QFY19 to 10.9% in 2QFY20.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter fell 12.5% on a quarter-on-quarter (QoQ) basis. The expenses were down by 16.0% QoQ during the same period.
• The company's operating profit increased by 24.2% QoQ during the quarter. Consequently, operating profit margins witnessed a growth and stood at 12.4% in 2QFY20 as against 8.7% in 1QFY19.
• Net profit for the quarter increased by 46.1% QoQ, while net profit margins increased from 6.6% in 1QFY19 to 10.9% in 2QFY20.

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

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ASAHI SONGWON Share Price Performance

Over the last one year,ASAHI SONGWON share price has moved down from Rs 247.6 to Rs 139.9, registering a Loss of Rs 107.7 or around 43.5%.

Overall, the S&P BSE SENSEX is up 10.2% over the year.

Current Valuations

At the current price of Rs 139.9, the price to earnings (P/E) ratio of ASAHI SONGWON stands at 8.9 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 0.9 times.