PATEL ENGG. Announces Quarterly Results (1QFY20); Net Profit Up 61.8%

Wed, 21 Aug

PATEL ENGG. has announced its results for the quarter ended June 2019. Here is a detailed performance review of the same:

PATEL ENGG. Quarterly Financials

No. of Mths Qtr. Ending		3 Jun-18*	3 Mar-19*	3 Jun-19*	QoQ Change	YoY Change
Net Sales	Rs m	5,555	4,904	5,983	22.0%	7.7%
Other income	Rs m	754	995	897	-9.9%	18.9%
Turnover	Rs m	6,309	5,899	6,879	16.6%	9.0%
Expenses	Rs m	4,902	4,807	5,272	9.7%	7.6%
Gross profit	Rs m	653	103	711	591.9%	8.8%
Depreciation	Rs m	100	114	139	22.3%	39.6%
Interest	Rs m	774	840	836	-0.5%	8.0%
Profit before tax	Rs m	534	144	632	340.2%	18.4%
Tax	Rs m	172	23	46	101.3%	-73.1%
Profit after tax	Rs m	362	121	585	385.8%	61.8%
Gross profit margin	%	11.8	2.1	11.9
Effective tax rate	%	32.2	16.0	7.3
Net profit margin	%	5.7	2.0	8.5

Year-on-Year Performance:

• The company's operating income during the quarter grew 7.7% on a year-on-year (YoY) basis. The expenses were up by 7.6% YoY during the same period.
• The company's operating profit increased by 8.8% YoY during the quarter. Consequently, operating profit margins remained same and stood at 11.9% in 1QFY20.
• Depreciation charges increased by 39.6% and finance costs increased by 8.0% YoY, respectively.
• Other income increased by 18.9% YoY during the quarter.
• Net profit for the quarter increased by 61.8% YoY. Net profit margins during the quarter increased from 5.7% in 1QFY19 to 8.5% in 1QFY20.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter grew 22.0% on a quarter-on-quarter (QoQ) basis. The expenses were up by 9.7% QoQ during the same period.
• The company's operating profit increased by 591.9% QoQ during the quarter. Consequently, operating profit margins witnessed a growth and stood at 11.9% in 1QFY20 as against 2.1% in 4QFY19.
• Net profit for the quarter increased by 385.8% QoQ, while net profit margins increased from 2.0% in 4QFY19 to 8.5% in 1QFY20.

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

PATEL ENGG. Share Price Performance

Over the last one year,PATEL ENGG. share price has moved down from Rs 52.3 to Rs 12.3, registering a Loss of Rs 40.0 or around 76.5%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 2,012.9 (down 0.8%). Over the last one year it has moved down from 2,117.7 to 2,012.9, a gain of 105 points (down 5.0%).

Overall, the S&P BSE SENSEX is down 2.5% over the year.

Current Valuations

At the current price of Rs 12.3, the price to earnings (P/E) ratio of PATEL ENGG. stands at 0.9 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 0.0 times.