Skipper's Q4FY16 standalone net profit rises 19.35% yoy to Rs.36.11 crore : Misses Estimates

India Infoline News Service | Mumbai | May 18, 2016 13:38 IST

The company’s standalone revenue stood at Rs. 529.75 crore, up 5.96% yoy and 42.49% qoq.

Skipper, major supplier of PVC pipes and transmission towers, reported standalone net profit of Rs. 36.11 crore for the quarter ended March 31, 2016, registering growth of 19.35% yoy and 93.11% qoq. The company’s revenue stood at Rs. 529.75 crore, up 5.96% yoy and 42.49% qoq.

Its standalone core operating profit of Rs. 73.40 crore for the quarter, clocked growth of 6.89% yoy and 48.31% qoq. Operating profit margin for the current quarter at 13.86% expanded by 12 bps yoy and 55 bps qoq.

For the year ended March 31, 2016, the company reported standalone net profit of Rs. 95.12 crore, growing by 6.67% yoy. Its standalone revenue for the period stood at Rs. 1,506.22 crore, registering growth of 14.73% yoy.

Skipper Ltd's core operating profit stood at Rs. 219.24 crore, recording growth of 1.9% yoy. Operating margin for the current period at 14.37% contracted by 202 bps yoy.

Skipper (Q4 FY16) - Execution slower than expected:

Skipper’s topline growth of 6% yoy to Rs. 530cr was quite lower than IIFL estimate of Rs. 580 crore due to slower execution in some projects and a fall in commodity prices. Miss in execution led to lower than expected operating profit. Operating profit increased 6.9% yoy against estimate of 17% growth. OPM for the quarter stood at 13.9%, inline with our expectation and higher by 12bps yoy. PAT growth too was lower than expected at 19.2% yoy to Rs. 36cr against IIFL estimate of 38 crore. On a segmental basis, engineering segment revenue was higher by 5.6% yoy and that of infrastructure segment was lower by 47.2% yoy. PVC segment continued to show strong growth in topine at 28.6% yoy on the back of rampup of new capacities. EBIT margins for all the segment was lower on a qoq basis this quarter.

Result Highlights: (Rs. in crore)

Reported Results IIFL Estimates Variance (%)
Standalone Revenue 529.75 580 [8.66]
Standalone Net Profit 36.11 39.3 [8.12]

Bloomberg estimated the company’s standalone net profit at Rs. 33.60 crore.

Stock Commentary:

Skipper Ltd is currently trading at Rs. 143.2, up by 0.4 points or 0.28% from its previous closing of Rs. 142.8 on the BSE.

The scrip opened at Rs. 143.3 and has touched a high and low of Rs. 147.9 and Rs. 141.6 respectively. So far 176887(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 1461.08 crore.

The BSE group 'B' stock of face value Rs. 1 has touched a 52 week high of Rs. 219.9 on 06-Jan-2016 and a 52 week low of Rs. 116 on 25-Aug-2015. Last one week high and low of the scrip stood at Rs. 145.9 and Rs. 139.5 respectively.

The promoters holding in the company stood at 72.37 % while Institutions and Non-Institutions held 3.35 % and 24.27 % respectively.

The stock is currently trading above its 200 DMA.

***Note: This is a NSE Chart



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