FDC Ltd's Q2FY19 standalone net profit declines 33.57% yoy to Rs43.09cr: Misses Estimates

The company’s standalone revenue in the period stood at Rs268.06cr, down 12.01% yoy and 6.18% qoq.

Nov 14, 2018 11:11 IST India Infoline Research Team

FDC Ltd Q2FY19

Standalone Results Q2FY19: (in Rs cr)

Q2FY19 YoY (%)
Revenue 268.06 [12.0]
EBITDA 52.98 [41.1]
EBITDA Margin (%) 19.8 [978]
Net Profit (adjusted) 43.09 [33.6]
***EBITDA margin change is bps
FDC’s revenue in Q2FY19 declined 12% yoy to Rs268.1cr due to the high base in Q2FY18. EBITDA in the quarter declined 41.1% yoy to Rs53cr in Q2FY19 vs. Rs90cr in Q2FY18. EBITDA margins stood at 19.8% in Q2FY19 vs. 29.5% in Q2FY18 and 24.1% in Q1FY19. The high margin in Q2FY18 was on the back of the higher operating leverage led by restocking of inventories by distributors. PAT in Q2FY19 declined 33.6% yoy to Rs43.1cr vs. Rs64.9cr in Q2FY18. The profitability in the period under review was weak due to a decline in sales, decline in gross margins, and operating de-leverage during the quarter. 

Other highlights 
  • Gross margin stood at 66.1% in Q2FY19 vs. 67.8% in Q2FY18 and 68.2% in Q1FY19
  • Employee cost declined 3% yoy to Rs53cr in Q2FY19. As a percentage of sales, employee cost stood at 19.9% in Q2FY19 vs. 18.1% in Q2FY18.
  • Other expenses grew 15% yoy to Rs70.8cr in Q2FY19. As a percentage of sales, other expenses stood at 26.4% in Q2FY19 vs. 20.2% in Q2FY18.

Technical View:

FDC Ltd share price ended at Rs200.50, down 5.7 points, or 2.76%, from its previous close of Rs206.20 on the BSE. The scrip opened at Rs204.75 and touched a high and low of Rs207.80 and Rs194, respectively. A total of 21,729 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 200-DMA.

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