Century Plyboards (India) Q4FY16 standalone net profit declines 15% yoy to Rs.40.52 crore : Estimates Mixed

The company’s standalone revenue stood at Rs. 454.73 crore, up 11.12% yoy and 16.41% qoq.

May 10, 2016 2:53 IST | India Infoline News Service
Century Plyboards (India), plywood and veneer manufacturers, reported standalone net profit of Rs.40.52 crore for the quarter ended March 31, 2016, registering decline of 15.54% yoy and 2.59% qoq. The company’s revenue stood at Rs. 454.73 crore, up 11.12% yoy and 16.41% qoq.

Its standalone core operating profit of Rs. 77.32 crore for the quarter, declined by 2.55% yoy but clocked growth of 11.14% qoq. Operating profit margin for the current quarter at 17% contracted by 239 bps yoy and 81 bps qoq.

For the year ended March 31, 2016, the company reported standalone net profit of Rs. 168.07 crore, growing by 11.44% yoy. Its standalone revenue for the period stood at Rs. 1,658.46 crore, registering growth of 5.98% yoy.

Century Plyboards (India) Ltd's core operating profit stood at Rs. 287.49 crore, recording growth of 8.8% yoy. Operating margin for the current period at 17.26% expanded by 37 bps yoy.

Century Plyboard - Q4FY16 - Margin declines
The company’s net sales grew by 11.1% to Rs. 455cr, 3.7%/7.9% higher than IIFL estimate of Rs 439cr led by a 9.9% growth in Plywood segment (constitutes ~70% of the revenue) and laminates (~20% of the revenue) grew 14.7% for the quarter. Container segment grew at 36.6% during the quarter, however, Others declined by 6.5%.

The EBIT margin of Plywood declined by 471bps to 15%, however Laminates margin improved 670bps to 14.7%. The container division reported an increase in EBIT margin by 237bps, however, Others reported a decline in EBIT margin by 206bps, respectively. However with an increase in employee/other expense cost by 96bps/62bps, respectively. Hence, EBITDA margin declined by 238bps to 17% in -line with IIFL estimates.

Century’s effective tax rate increased to 26.2% from 19.1% in Q4FY15 and 13.3% in Q3FY16, PAT was down by 15.5% to Rs. 41 crore, 8.2%/7.6% higher than IIFL estimate.

Result Highlights: (Rs. in crore)

Reported Results IIFL Estimates Variance (%)
Standalone Revenue 454.73 438.63 3.67
Standalone Net Profit 40.52 44.16 [8.24]

Bloomberg estimated the company’s standalone net profit at Rs. 42.50 crore.

Stock Commentary:

Century Plyboards (India) Ltd is currently trading at Rs. 182.3, down by 6.95 points or 3.67% from its previous closing of Rs. 189.25 on the BSE.

The scrip opened at Rs. 189.75 and has touched a high and low of Rs. 194.5 and Rs. 178.75 respectively. So far 809920(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 4205.14 crore.

The BSE group 'B' stock of face value Re. 1 has touched a 52 week high of Rs. 219 on 05-Aug-2015 and a 52 week low of Rs. 135.45 on 12-Feb-2016. Last one week high and low of the scrip stood at Rs. 192 and Rs. 185.4 respectively.

The promoters holding in the company stood at 73.34 % while Institutions and Non-Institutions held 15.38 % and 11.28 % respectively.

The stock is currently trading below its 200 DMA.

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