Kalyani Forge

Net turns red as lower sales could not cover fixed costs

Feb 15, 2020 12:02 IST capital market

Kalyani Forge has registered a sharp 53% fall in sales to Rs 34.06 crore. But with sharp 860 bps fall in operating profit margin to 1.4%, the operating profit crashed by 93% to Rs 0.48 crore. After accounting for lower other income (down 37% to Rs 0.62 crore) the PBIDT was down by 87% to Rs 1.10 crore. At PBT level it was a loss of Rs 3.39 crore (against a profit of Rs 3.28 crore in the corresponding previous period) after accounting for interest and depreciation which as a proportion to sales stood higher. With taxation being a write back of Rs 0.74 crore (against a provision of Rs 0.74 crore in corresponding previous period), it was a loss of Rs 2.65 crore as against a profit of Rs 1.92 crore in the corresponding previous period.
  • Operating income was down by 53% to Rs 34.06 crore. Sharp fall in revenue for the quarter is largely due to weak demand on account of general slowdown in automobile sector. The value of production was down by 53% to Rs 34.33 crore. Sales was 0.99 times of value of production for the quarter and it was same 0.99 times in the corresponding previous period. Sales lower than value of production reflects modest inventory built up.
  • OPM crashed by 860 bps to 1.4% as the lower sales could not provide cover for the fixed costs. Material cost as % of sales net of stocks was down by 300 bps to 45.9%. But the staff cost was up by 620 bps to 19.4% and the OE was up by 530 bps to 33.3%. Thus hit by lower sale and lower OPM, the operating profit was down by 93% to Rs 0.48 crore.  

Nine month performance

Sales was lower by 30% to Rs 154.39 crore and the operating profit was down by 52% to Rs 10.46 as hit by lower sales as well as 320 bps erosion in operating profit margin to 6.8%. After accounting for lower other income as well as higher interest and depreciation as proportion to sales, the PBT was a loss of Rs 1.98 crore compared to a profit of Rs 8.25 crore in the corresponding previous period. Eventually at PAT level it was a loss of Rs 1.76 crore compared to a profit of Rs 5.62 crore.

Kalyani Forge: Results

 

1912 (3) 1812 (3) Var. (%) 1912 (9) 1812 (9) Var. (%) 1903 (12) 1803 (12) Var.(%)
Sales 34.06 72.17 -53 154.39 220.41 -30 286.35 265.36 8
OPM (%) 1.4 10.0 6.8 10.0 9.0 8.1
OP 0.48 7.25 -93 10.46 21.97 -52 25.79 21.49 20
Other inc. 0.62 0.99 -37 2.43 2.72 -11 6.47 6.98 -7
PBIDT 1.10 8.24 -87 12.89 24.69 -48 32.26 28.47 13
Interest 1.09 1.13 -4 4.29 5.15 -17 7.59 6.34 20
PBDT 0.01 7.11 -100 8.60 19.54 -56 24.67 22.13 11
Dep. 3.40 3.83 -11 10.58 11.29 -6 15.04 12.95 16
PBT -3.39 3.28 PL -1.98 8.25 PL 9.63 9.18 5
Taxation -0.74 1.36 LP -0.22 2.63 LP 2.67 2.64 1
PAT -2.65 1.92 PL -1.76 5.62 PL 6.96 6.54 6
EPS (Rs)* # # # # 19.1 18.0
* EPS is on current equity of Rs 3.64 crore, Face value of Rs 10
# EPS is not annualised due to seasonality of business
Figures in Rs crore
Source: Capitaline Corporate Database

Powered by Capital Market - Live News

Related Story