In quarter ended Dec 2011, Balmer Lawrie & Company reported 11% growth in standalone net profit to Rs 28.38 crore limited by weak operating performance and increase in non operating expenses though improved other income and fall in tax rate moderated the impact. The topline grew by 12% to Rs 559.97 crore limited by fall in sales of its largest segment - travels & tours though growth across the remaining segments aided the growth. Hike in other expenditure led to 30 bps fall in operating profit margin (OPM) to 7% thus the operating profit grew by marginal 8% to Rs 39.46 crore. Segmentwise, the various segments reported fall in their PBIT except for logistics segment.

Quarter Performance

The standalone topline grew by 12% to Rs 559.97 crore in Dec 2011 quarter primarily constrained by fall in sales of its largest segment - travel & tours though the growth across the remaining four segments lifted the overall sales. The sales of travels and tours that contribute 41% to total fell by 2% to Rs 228.67 crore. On the other hand, logistics sales grew by robust 40% to Rs 123.98 crore. Also the sales of industrial packages and greases & lubricants grew by 13% to Rs 95.47 crore and 18% to Rs 97.53 crore respectively.

Hike in other expenditure led to 30 bps fall in OPM to 7% thus the operating profit grew by marginal 8% to Rs 39.46 crore. Also the various segments reported fall in their PBIT except for logistics segment. The logistics division reported impressive growth of 63% in its PBIT to Rs 32.32 crore on 370 bps growth in its PBIT margin. On the other hand, travel & tours witnessed 27% fall in its PBIT to Rs 6.06 crore on 90 bps fall in its PBIT margin. Also the industrial packaging reported 32% fall in its PBIT to Rs 4.88 crore on 340 bps crash in its PBIT margin.

The company's PBT grew by 10% y-o-y to Rs 42.01 crore constrained by increase in non operating expenses though partially offset by spurt in other income. The depreciation costs grew by notable 45% to Rs 4.49 crore while the interest cost surged by whopping 156% to Rs 0.87 crore. On the other hand, other income grew by robust 59% to Rs 7.91 crore. Nonetheless, 60 bps crash in effective tax rate lifted net profit by 11% to Rs 28.38 crore.

Nine Month Performance

In nine month ended Dec 2011, the standalone topline grew by 11% to Rs 1682.24 crore constrained by flat sales in travels though growth across all segments limited the effect. However flat OPM at 7.7% led to 11% growth to Rs 129.30 crore in operating profit. Robust other income lifted the PBT by 15% to Rs 149.10 crore. Further 150 bps crash in effective tax rate enabled 18% growth in net profit to Rs 102.42 crore.

The scrip is trading at Rs 582 on BSE.

Balmer Lawrie & Company: Company Results

Balmer Lawrie & Company: Segment Results