KSB Announces Quarterly Results (2QFY20); Net Profit Up 47.8%
Tue, 12 Nov

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

KSB Quarterly Financials

No. of Mths
Qtr. Ending
3
Sep-18*
3
Jun-19*
3
Sep-19*
QoQ ChangeYoY Change
Net SalesRs m2,8043,0183,65821.2%30.5%
Other incomeRs m358252-36.6%48.6%
TurnoverRs m2,8393,1003,71019.7%30.7%
ExpensesRs m2,4832,6973,27121.3%31.7%
Gross profitRs m321448387-13.6%20.6%
DepreciationRs m981031051.9%7.1%
InterestRs m13101220.0%-7.7%
Profit before taxRs m245417322-22.8%31.4%
TaxRs m8413984-39.6%0.0%
Profit after taxRs m161278238-14.4%47.8%
Gross profit margin%11.414.810.6
Effective tax rate%34.333.326.1
Net profit margin%5.79.06.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster


Year-on-Year Performance:
  • The company's operating income during the quarter grew 30.5% on a year-on-year (YoY) basis. The expenses were up by 31.7% YoY during the same period.
  • The company's operating profit increased by 20.6% YoY during the quarter. Consequently, operating profit margins remained same and stood at 10.6% in 2QFY20.
  • Depreciation charges increased by 7.1% and finance costs declined by 7.7% YoY, respectively.
  • Other income increased by 48.6% YoY during the quarter.
  • Net profit for the quarter increased by 47.8% YoY. Net profit margins during the quarter increased from 5.7% in 2QFY19 to 6.4% in 2QFY20.
Quarter-on-Quarter Performance:
  • The company's operating income during the quarter grew 21.2% on a quarter-on-quarter (QoQ) basis. The expenses were up by 21.3% QoQ during the same period.
  • The company's operating profit declined by 13.6% QoQ during the quarter. Consequently, operating profit margins witnessed a decline and stood at 10.6% in 2QFY20 as against 14.8% in 1QFY19.
  • Net profit for the quarter declined by 14.4% QoQ, while net profit margins declined from 9.0% in 1QFY19 to 6.4% in 2QFY20.

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

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KSB Share Price Performance

Over the last one year,KSB share price has moved down from Rs 761.0 to Rs 705.1, registering a Loss of Rs 56.0 or around 7.4%.

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 705.1, the price to earnings (P/E) ratio of KSB stands at 26.5 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 3.2 times.