Sharda Motor Industriesreported 14% rise in net profit to Rs 23.13 crore on 2% drop in net sales to Rs 298.79 crore for the second quarter ended Sept 2018. Good performance at the operational level coupled with drop in interestand depreciation charges helped the bottomline grow. Sharda Motor is in manufacturing of Exhaust System, Catalytic Converter, Independent Front Suspension, Seat Frames, Seat Covers (Two Wheelers & Four Wheelers), Soft Top Canopies, and Pressed part - Room Air Conditioners body etc. Quarter Performance The OPM during the quarter rose 60 bps at 12.6%. Margins improved due to drop in raw material and employee cost. Margins would have improved further if not for rise inother expenses. Raw material cost (as a % to sales, net of stock) registered 150 bps drop to 67.9%. Employee expenses (% of sales net of stock) fell 10 bps at 7.57%. Other expenses (% of sales net of stock) rose 80 bps to 12%. Thus the operating profit rose4% to Rs37.73crore. Other income fell 15% to Rs 4.36 crore. Thereafter PBIDT rose 1% at Rs 42.09crore. After 98% drop in interest cost to Rs 1 lakh and 12% drop in depreciation charges to Rs 9.82crore, PBTgrew 8% at Rs 32.26crore. After5% drop in tax provision at Rs 9.13 crore (380 bps dropin tax rate), net profit stood at Rs 23.13crore against profit of Rs 20.27 crore in previous corresponding quarter, a rise of 14%. Half Year Performance Net sales for first half ended Sept 18, rose 2% to Rs 596.65 crore.The OPM during the period rose 60 bps at 12.5%. Margins improved due to drop in raw material cost. Margins would have improved further if not for rise in employee and other expenses. Raw material cost (as a % to sales, net of stock) registered 85 bps drop to 68.15%. Employee expenses (% of sales net of stock) rose 13 bps at 7.62%. Other expenses (% of sales net of stock) rose 20 bps to 11.8%. Thus the operating profit rose 6% to Rs74.4 crore. Other income fell 26% to Rs 6.96 crore. Thereafter PBIDT rose 2% at Rs 81.3 crore. After 99% drop in interest cost to Rs 2 lakh and 12% drop in depreciation charges to Rs 18.9 crore, PBT grew 10% at Rs 62.4 crore. After8% rise in tax provision at Rs 18.94 crore (65 bps dropin tax rate), net profit stood at Rs 43.46 crore against profit of Rs 38.97 crore in previous corresponding half, a rise of 12%. Shares of Sharda Motor Industries closed 0.7% lower at Rs 1569.7 at BSE on 13 Nov 2018, the following day after earnings were announced. Sharda Motor Industries: Results | Particulars | 1809 (3) | 1709 (3) | Var.(%) | 1809 (6) | 1709 (6) | Var(%) | 1803 (12) | 1703 (12) | Var.(%) | | | | | | | | | | | | Total Operating Income | 298.79 | 304.74 | -2 | 596.65 | 587.69 | 2 | 1155.45 | 1041.89 | 11 | | OPM(%) | 12.6 | 12.0 | | 12.5 | 11.9 | | 12.6 | 12.5 | | | OP | 37.73 | 36.44 | 4 | 74.4 | 70.0 | 6 | 145.5 | 129.8 | 12 | | Other Income | 4.36 | 5.14 | -15 | 6.96 | 9.4 | -26 | 17.80 | 13.86 | 28 | | PBIDT | 42.09 | 41.58 | 1 | 81.3 | 79.4 | 2 | 163.3 | 143.7 | 14 | | Interest | 0.01 | 0.54 | -98 | 0.02 | 1.46 | -99 | 2.13 | 7.6 | -72 | | PBDT | 42.08 | 41.04 | 3 | 81.3 | 77.94 | 4 | 161.12 | 136.09 | 18 | | Depreciation | 9.82 | 11.18 | -12 | 18.90 | 21.39 | -12 | 43.78 | 49.79 | -12 | | PBT Before EO | 32.26 | 29.86 | 8 | 62.4 | 56.55 | 10 | 117.34 | 86.3 | 36 | | EO | | | | | | | -0.58 | -9.15 | -94 | | PBT after EO | 32.26 | 29.86 | 8 | 62.4 | 56.55 | 10 | 116.76 | 77.15 | 51 | | Tax provision^ | 9.13 | 9.59 | -5 | 18.94 | 17.58 | 8 | 38.14 | 20.38 | 87 | | PAT | 23.13 | 20.27 | 14 | 43.46 | 38.97 | 12 | 78.62 | 56.77 | 38 | | EPS* | 155.8 | 136.5 | | 146.3 | 131.2 | | 133.0 | 106.9 | | * Annualized On Current Equity Of Rs 5.94 Crore.
Face Value: Rs 10
^ Tax Includes Provision For Income Tax And Fringe Benefit Tax
Var. (%) Exceeding 999 Has Been Truncated To 999
LP: Loss To Profit PL: Profit To Loss
EO: Extraordinary Items
EPS Is Calculated After Excluding EO And Relevant Tax
Figures In Rs Crore
Source: Capitaline Corporate Database |
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