VENKYS (I) LIMITED Announces Quarterly Results (1QFY20); Net Profit Down 13.0%

Wed, 7 Aug

VENKYS (I) LIMITED has announced its results for the quarter ended June 2019. Here is a detailed performance review of the same:

VENKYS (I) LIMITED Quarterly Financials

No. of Mths Qtr. Ending		3 Jun-18*	3 Mar-19*	3 Jun-19*	QoQ Change	YoY Change
Net Sales	Rs m	7,562	8,287	9,053	9.2%	19.7%
Other income	Rs m	63	97	83	-14.6%	32.1%
Turnover	Rs m	7,625	8,384	9,136	9.0%	19.8%
Expenses	Rs m	6,371	7,708	8,040	4.3%	26.2%
Gross profit	Rs m	1,191	580	1,014	74.9%	-14.9%
Depreciation	Rs m	71	77	79	2.2%	11.0%
Interest	Rs m	95	76	65	-14.2%	-31.4%
Profit before tax	Rs m	1,087	523	952	82.0%	-12.4%
Tax	Rs m	377	224	334	49.1%	-11.4%
Profit after tax	Rs m	711	299	618	106.5%	-13.0%
Gross profit margin	%	15.7	7.0	11.2
Effective tax rate	%	34.7	42.8	35.1
Net profit margin	%	9.3	3.6	6.8

Year-on-Year Performance:

• The company's operating income during the quarter grew 19.7% on a year-on-year (YoY) basis. The expenses were up by 26.2% YoY during the same period.
• The company's operating profit declined by 14.9% YoY during the quarter. Consequently, operating profit margins witnessed a decline and stood at 11.2% in 1QFY20 as against 15.7% in 1QFY19.
• Depreciation charges increased by 11.0% and finance costs declined by 31.4% YoY, respectively.
• Other income increased by 32.1% YoY during the quarter.
• Net profit for the quarter declined by 13.0% YoY. Net profit margins during the quarter declined from 9.3% in 1QFY19 to 6.8% in 1QFY20.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter grew 9.2% on a quarter-on-quarter (QoQ) basis. The expenses were up by 4.3% QoQ during the same period.
• The company's operating profit increased by 74.9% QoQ during the quarter. Consequently, operating profit margins witnessed a growth and stood at 11.2% in 1QFY20 as against 7.0% in 4QFY19.
• Net profit for the quarter increased by 106.5% QoQ, while net profit margins increased from 3.6% in 4QFY19 to 6.8% in 1QFY20.

To see how VENKYS (I) LIMITED has performed over the last eight quarters,please visit here.

VENKYS (I) LIMITED Share Price Performance

Over the last one year,VENKYS (I) LIMITED share price has moved down from Rs 3,058.6 to Rs 1,440.2, registering a Loss of Rs 1,618.5 or around 52.9%.

Overall, the S&P BSE SENSEX is down 1.8% over the year.

Current Valuations

At the current price of Rs 1,440.2, the price to earnings (P/E) ratio of VENKYS (I) LIMITED stands at 12.3 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 2.8 times.