JMC Projects (India)

Remains on growth way

Jul 30, 2019 05:07 IST capital market

JMC Projects (India), a subsidiary of Kalpataru Power Transmission that engaged in construction of buildings and factories, highways etc has registered 31% growth in revenue to Rs 903.87 crore for the quarter ended June 2019. Higher sales together with 80 bps expansion in operating profit margin facilitated 42% jump in operating profit to Rs 100.38 crore. After accounting for lower other income, lower interest cost (as % of sales) and higher depreciation, the PBT was up by 39% to Rs 48.36 crore. With taxation stand higher by 58% to Rs 12.84 crore, the PAT was up by 34% to Rs 35.52 crore.
  • Sale for the quarter was up by 31% to Rs 903.87 crore on the back of burnout of strong order book.
  • Operating profit margin expanded by 80 bps on year on year basis to 11.1% on the back of all cost heads barring material consumed and this seems due to favourable project mix. Looking at cost overheads, the material cost as proportion to sales was up by 370 bps to 43.1%. But with staff cost down by 160 bps to 8.8%, construction expense down by 540 bps to 33.2% and OE down by 290 bps to 37%, the rise in material cost was more than offset. Thus on higher sales and expansion in OPM the operating profit was up by 42% to Rs 100.38 crore.
  • Other income was lower by 24% to Rs 4.86 crore and thus the growth at PBIDT was restricted at 36% to Rs 105.24 crore. Interest cost in absolute terms was higher by 26% to Rs 30.44 crore but as proportion to sales was lower at 3.37% compared to 3.50% in the corresponding previous period. Thus the PBDT was up by 41% to Rs 74.80 crore. The depreciation was higher by 43% to Rs 26.44 crore. Thus the PBT was up by 39% to Rs 48.36 crore.
  • Finally, net profit was higher by 34% to Rs 35.52 crore after providing for taxation, which is higher by 58% to Rs 12.84 crore.

Consolidated sales for the quarter was up by 30% to Rs 946.92 crore and with OPM expand by 30 bps to 14%, the operating profit was up by 34% to Rs 132.94 crore. The PBT was up by 79% to Rs 37.54 crore largely by lower interest cost (as % of sales). The share of loss in JV was higher at Rs 5.79 crore compared to a loss of Rs 4.23 crore in the corresponding previous period. Thus the PBT after JV profit/loss was up by 90% to Rs 31.75 crore. After accounting for taxation (up 85% to Rs 11.14 crore) the PAT was up by 93% to Rs 20.61 crore.

Effective April 1, 2019, the Company has adopted Ind AS 116 - Leases and applied it to all lease contracts existing on April 1, 2019 using the modified retrospective method and tile impact to retained earnings is amounted to Rs 1.4979 crore. Accordingly, the comparatives have not been retrospectively adjusted. On transition, the adoption of the new standard resulted in recognition of Right-of-Use asset (ROU) of Rs 22.7120 crore and the corresponding lease liability of Rs 24.2099 crore. The effect of this adoption on the profit for the current quarter and earnings per share has not been significant. Similar impact has been considered in the consolidated financial results.

The stock hovers around Rs 119.55.

JMC Projects: Results

 

1906 (3) 1806 (3) Var. (%) 1903 (12) 1803 (12) Var.(%)
Sales 903.87 688.72 31 3252.86 2755.64 18
OPM (%) 11.1 10.3 10.4 10.3
OP 100.38 70.89 42 336.92 284.76 18
Other inc. 4.86 6.40 -24 24.79 17.62 41
PBIDT 105.24 77.29 36 361.71 302.38 20
Interest 30.44 24.11 26 95.06 85.78 11
PBDT 74.80 53.18 41 266.65 216.60 23
Dep. 26.44 18.48 43 78.13 71.65 9
PBT 48.36 34.70 39 188.52 144.95 30
Taxation 12.84 8.11 58 46.39 38.83 19
PAT 35.52 26.59 34 142.13 106.12 34
EPS (Rs)* # # 8.5 6.3
* EPS is on current equity of Rs 33.58 crore, Face value of Rs 2
# EPS is not annualised due to seasonality of business
Figures in Rs crore
Source: Capitaline Corporate Database

JMC Projects: Consolidated Results

 

1906 (3) 1806 (3) Var. (%) 1903 (12) 1803 (12) Var.(%)
Sales 946.92 726.28 30 3407.22 2888.14 18
OPM (%) 14.0 13.7 13.2 12.4
OP 132.94 99.23 34 450.68 356.92 26
Other inc. 4.94 6.43 -23 26.34 17.58 50
PBIDT 137.88 105.66 30 477.02 374.50 27
Interest 64.93 58.28 11 230.80 224.07 3
PBDT 72.95 47.38 54 246.22 150.43 64
Dep. 35.41 26.46 34 110.33 99.93 10
PBT 37.54 20.92 79 135.89 50.50 169
Share of profit from JV -5.79 -4.23 37 -20.50 0.00
PBT 31.75 16.69 90 115.39 50.50 128
Taxation 11.14 6.02 85 38.75 23.65 64
PAT 20.61 10.67 93 76.64 26.85 185
Minority Interest 0.00 0.00 0.00 0.00
PAT after MI 20.61 10.67 93 76.64 26.85 185
Other comprehensive income -1.30 2.97 PL 5.20 -0.80 LP
Total Comprehensive Income 19.31 13.64 42 81.84 26.05 214
EPS (Rs)* # # 4.6 1.6
* EPS is on current equity of Rs 33.58 crore, Face value of Rs 2
# EPS is not annualised due to seasonality of business
Figures in Rs crore
Source: Capitaline Corporate Database

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