Ineos ABS reported 56% fall in its bottomline to Rs 9.59 crore compared to corresponding previous year period on a flat topline to Rs 210.96 crore manly due to increase in raw material costs resulting into margin pressure. OPM of the company fell 990 bps to 6.2% resulting 61% dip in operating profit to Rs 13.14 crore. However OPM rose 40 bps on a sequential basis.
Consequent upon the formation of 50:50 global joint venture between INEOS and BASF, bringing together key Styrenics business of the joint venture partners world wide effective October 1, 2011 M/S Styrolution (Jersey) (formerly known as INEOS ABS (Jersey)) the acquirer along with persons acting in concert has in terms of SEBI Regulation 1997, made a public offer to the shareholders of the company. The cash offer price is Rs 606.81 for one fully paid up equity share of Rs 10 each to acquire maximum of 2931920 equity shares representing balance 16.67% of the capital of the company.
Performance for the quarter ended December 2011
For quarter ended December 2011, the top-line stood flat at Rs 210.96 crore during the quarter compared to corresponding previous year quarter. The company saw pressure in its operating margins with a fall of 990 bps to 6.2% as cost of raw materials as a percentage of net sales (net of stock adjustment) rose 1280 bps to 79.6% compensated by 20 bps fall in staff cost to 3.1% and 150 bps fall in other expenses to 11.5%. Other expenditure also includes foreign currency exchange loss of Rs 4 crore for the quarter ended December 2011 compared to gain of Rs 57.29 lakh. As a result operating profit fell 61% to Rs 13.14 crore.
Other income of the company jumped to Rs 3.7 crore from Rs 1.84 crore. The company being debt free interest cost was nil. Depreciation fell 2% to Rs 3.39 crore. PBT as a result fell 62% to Rs 12.45 crore. The effective tax rate fell 930 bps to 23% owing to which the company's net profit fell 56% at Rs 9.59 crore.
Performance for year ended December 2011
For year ended December 2011, the top-line rose 11% to Rs 825.46 crore. The company saw pressure in its operating margins with a fall of 530 bps to 9.7% as cost of raw materials as a percentage of net sales (net of stock adjustment) rose 540 bps to 75.7% added by other expenses which rose 10 bps to 11.8%. Employee's cost remained flat at 3.0%. As a result operating profit fell 28% to Rs 80.15 crore.
Other income of the company rose to Rs 11.27 crore from Rs 5.48 crore. The company being debt free interest cost was nil. Depreciation remained flat at Rs 13.94 crore. PBT as a result fell 25% to Rs 77.48 crore. The effective tax rate fell 140 bps to 30.4% owing to which the company's net profit fell 23% to Rs 53.97 crore.
The promoter's shareholding remains unchanged at 83.33% as on 30 th December 2011 compared to previous period.
The scrip is currently trading at Rs 614 on the BSE.
Ineos ABS results
| Particulars | 1112 (3) | 1012 (3) | Var (%) | 1012 (12) | 1012 (12) | Var (%) |
| Net Sales | 210.96 | 211.52 | 0 | 825.46 | 742.37 | 11 |
| OPM (%) | 6.2 | 16.1 | | 9.7 | 15.0 | |
| OP | 13.14 | 34.01 | -61 | 80.15 | 111.18 | -28 |
| Other Income | 2.70 | 1.84 | 47 | 11.27 | 5.48 | 106 |
| PBDIT | 15.84 | 35.85 | -56 | 91.42 | 116.66 | -22 |
| Interest | 0.00 | 0.00 | | 0.00 | 0.00 | |
| PBDT | 15.84 | 35.85 | -56 | 91.42 | 116.66 | -22 |
| Depreciation | 3.39 | 3.47 | -2 | 13.94 | 13.98 | 0 |
| PBT | 12.45 | 32.37 | -62 | 77.48 | 102.69 | -25 |
| Tax | 2.87 | 10.46 | -73 | 23.52 | 32.66 | -28 |
| PAT | 9.59 | 21.92 | -56 | 53.97 | 70.03 | -23 |
| EPS (Rs)* | 21.8 | 49.8 | | 30.7 | 39.8 | |
* Annualized on diluted equity of Rs 17.59 crore.
Face Value: Rs 10
Var. (%) exceeding 999 has been truncated to 999
LP: Loss to Profit PL: Profit to Loss
EO: Extraordinary items; FBT: Fringe Benefit Tax
EPS is calculated after excluding EO and relevant tax
Figures in Rs crore
Source: Capitaline Corporate Database |