ENGINEERS INDIA Announces Quarterly Results (2QFY20); Net Profit Down 30.7%

Tue, 12 Nov

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

ENGINEERS INDIA Quarterly Financials

No. of Mths Qtr. Ending		3 Sep-18*	3 Jun-19*	3 Sep-19*	QoQ Change	YoY Change
Net Sales	Rs m	6,814	7,349	7,237	-1.5%	6.2%
Other income	Rs m	614	583	655	12.4%	6.7%
Turnover	Rs m	7,428	7,932	7,893	-0.5%	6.3%
Expenses	Rs m	5,899	5,954	6,168	3.6%	4.6%
Gross profit	Rs m	915	1,395	1,069	-23.3%	16.9%
Depreciation	Rs m	57	57	58	1.2%	1.4%
Interest	Rs m	4	3	4	22.1%	6.7%
Profit before tax	Rs m	1,468	1,917	1,663	-13.3%	13.3%
Tax	Rs m	491	676	986	45.8%	100.9%
Profit after tax	Rs m	978	1,241	678	-45.4%	-30.7%
Gross profit margin	%	13.4	19.0	14.8
Effective tax rate	%	33.4	35.3	59.3
Net profit margin	%	13.2	15.6	8.6

Year-on-Year Performance:

• The company's operating income during the quarter grew 6.2% on a year-on-year (YoY) basis. The expenses were up by 4.6% YoY during the same period.
• The company's operating profit increased by 16.9% YoY during the quarter. Consequently, operating profit margins witnessed a growth and stood at 14.8% in 2QFY20 as against 13.4% in 2QFY19.
• Depreciation charges increased by 1.4% and finance costs increased by 6.7% YoY, respectively.
• Other income increased by 6.7% YoY during the quarter.
• Net profit for the quarter declined by 30.7% YoY. Net profit margins during the quarter declined from 13.2% in 2QFY19 to 8.6% in 2QFY20.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter fell 1.5% on a quarter-on-quarter (QoQ) basis. The expenses were up by 3.6% QoQ during the same period.
• The company's operating profit declined by 23.3% QoQ during the quarter. Consequently, operating profit margins witnessed a decline and stood at 14.8% in 2QFY20 as against 19.0% in 1QFY19.
• Net profit for the quarter declined by 45.4% QoQ, while net profit margins declined from 15.6% in 1QFY19 to 8.6% in 2QFY20.

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

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ENGINEERS INDIA Share Price Performance

Over the last one year,ENGINEERS INDIA share price has moved down from Rs 120.6 to Rs 107.7, registering a Loss of Rs 13.0 or around 10.7%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 18,294.2 (down 0.2%). Over the last one year it has moved up from 18,167.7 to 18,294.2, a gain of 127 points (up 0.7%).

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

Current Valuations

At the current price of Rs 107.7, the price to earnings (P/E) ratio of ENGINEERS INDIA stands at 19.2 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 3.1 times.