Century Plyboards (India) Ltd's Q2FY19 standalone net profit declines 5.78% yoy to Rs37.82cr : Misses Estimates

The company’s standalone revenue stood at Rs564.45cr, up 18.94% yoy and 5.06% qoq.

Nov 05, 2018 02:11 IST India Infoline Research Team

Century Plyboards (India) Ltd Q2FY19

Standalone Results Q2FY19: (Rs. in cr)

Q2FY19 YoY (%)
Revenue 564.45 18.9
EBITDA 74.23 0.2
EBITDA Margin (%) 13.2 [245]
Net Profit (adjusted) 37.82 [5.8]
***EBITDA margin change is bps
Century Plyboards (India) Ltd's Q2FY19 revenue came in at ~Rs564.4cr, an increase by 18.9% yoy. The operating profit in Q2FY19 came in at ~Rs74.2cr, which remained flat on yoy basis. However, EBITDA margin contracted by ~245bps yoy to 13.2%. The net profit after tax stood at ~Rs37.8cr, down 5.8% yoy. The revenue is in-line with the consensus estimate. However, EBITDA and PAT missed the consensus estimate of Rs86cr and Rs44cr by 14% each respectively.

• Rise in the revenue during the quarter is majorly driven by plywood & allied products and MDF segment in terms of volume and sales mix.
• Gross margin for the quarter expanded by ~145bps yoy to 47.8% on shift in sales mix towards plywood segment. Despite the improvement in gross margin, EBITDA margin remained under pressure on lower operating leverage and likely negative impact from foreign exchange fluctuations.
• Employee benefit expenses and other expenses increased significantly by ~24% and ~42% yoy to ~Rs84cr and ~Rs112cr respectively during the quarter.
• Effective tax rate during the quarter stood at ~22% vs. 24.2% during Q2FY18.
• The total debt (long and short term) decreased to ~Rs481cr as on September 30, 2018 vs. ~Rs502cr as on March 31, 2018.

Technical View:

Century Plyboards (India) Ltd is currently trading at Rs. 176.65, down by 2.5 points or 1.4% from its previous closing of Rs. 179.15 on the BSE.
The scrip opened at Rs. 180 and has touched a high and low of Rs. 182 and Rs. 175.35 respectively. So far 4,05,298 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 200 DMA.

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