Greaves Cotton's Q4FY16 standalone net profit grows 61.37% yoy to Rs.38.31 crore : Beats Estimates

The company’s standalone revenue stood at Rs. 405.09 crore, up 2.87% yoy but down 0.16% qoq.

May 06, 2016 6:47 IST | India Infoline News Service
Greaves Cotton, manufacturer of widest variety of farm Equipments in India, reported standalone net profit of Rs.38.31 crore for the quarter ended March 31, 2016, registering growth of 61.37% yoy, but decline of 39.08% qoq. The company’s revenue stood at Rs. 405.09 crore, up 2.87% yoy but down 0.16% qoq.

Its standalone core operating profit of Rs. 63.19 crore for the quarter, clocked growth of 39.65% yoy but decline of 6.09% qoq. Operating profit margin for the current quarter at 15.6% expanded by 411 bps yoy but contracted by 99 bps qoq.

For the year ended March 31, 2016, the company reported standalone net profit of Rs. 198.80 crore, growing by 143.84% yoy. Its standalone revenue for the period stood at Rs. 1,616.20 crore, registering decline of 4.29% yoy.

Greaves Cotton's core operating profit stood at Rs. 268.59 crore, recording growth of 34.89% yoy. Operating margin for the current period at 16.41% expanded by 462 bps yoy.

Greaves Cotton-Robust growth ahead as economy picks up

Greaves Cotton’s revenues at Rs. 405 crore were higher by 2.9% yoy and were below IIFL estimates, Engine segment revenues grew by 1% yoy volumes remained flat to weak across segments flat to weak across segments. OPM at 15.6% was below estimates and was higher by 411bps yoy and lower by 99bps qoq, driven by value addition in the engines business and cost cutting initiatives implemented Adjusted PAT was higher by 34.1% yoy at Rs.45cr but was below forecasts.

Result Highlights: (Rs. in crore)

Reported Results IIFL Estimates Variance (%)
Standalone Revenue 405.09 419 [3.32]
Standalone Net Profit 38.31 47 [18.49]

Bloomberg estimated the company’s standalone net profit at Rs. 43.46 crore.

Stock Commentary:

Greaves Cotton Ltd ended at Rs. 131.6, up by 0.1 points or 0.08% from its previous closing of Rs. 131.5 on the BSE.

The scrip opened at Rs. 131 and touched a high and low of Rs. 133 and Rs. 131 respectively. A total of 108159(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 3213.76 crore.

The BSE group 'B' stock of face value Rs. 2 touched a 52 week high of Rs. 162.4 on 20-Nov-2015 and a 52 week low of Rs. 114.2 on 29-Feb-2016. Last one week high and low of the scrip stood at Rs. 135.3 and Rs. 131 respectively.

The promoters holding in the company stood at 51 % while Institutions and Non-Institutions held 37.65 % and 11.35 % respectively.

The stock traded below its 200 DMA.

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