Gujarat Fluorochemicals Ltd's Q1FY19 consolidated net profit rises 89.4% yoy to Rs125.13cr

The company’s consolidated revenue stood at Rs1,359.78cr, up 28.71% yoy and 37.11% qoq.

Aug 14, 2018 09:08 IST India Infoline Research Team

Gujarat Fluorochemicals Ltd Q1FY19

Consolidated Results Q1FY19: (Rs. in cr)

Q1FY19 YoY (%)
Revenue 1,359.78 28.7
EBITDA 344.16 74.1
EBITDA Margin (%) 25.3 660
Net Profit (adjusted) 125.13 89.4
***EBITDA margin change is bps
Gujarat Fluorochemicals Ltd's consolidated revenue for Q1FY19 came in at Rs1,359.78cr, up by 28.7% yoy. The adjusted operating profit (before forex, exceptional items and share of joint ventures / associates) for the quarter came in at Rs344.16cr, up by 74.1% yoy. The EBITDA margin expanded by ~660bps yoy to 25.3% in Q1FY19. The adjusted net profit after tax attributable to owners stood at Rs125.13cr, up by 89.4% yoy.

• The company witnessed significant improvement in chemicals business led by higher sales in refrigerant, PTFE, chloromethanes, caustic soda and VAP segments. The chemical business revenues, EBITDA and PAT was up 38%, 103% and 82% yoy respectively. The performance under chemical business is a combination of high volumes and improvement in price realizations.
• Under chemicals business, poly tetrafluoroethylene (PTFE), choloromethanes and caustic soda increased significantly by 54%, 37% and 27% yoy to Rs279.6cr, Rs69.6cr and Rs113.5cr respectively in Q1FY19. The revenue from refrigerants came in at Rs111.2cr in Q1FY19 as against Rs89.8cr in Q1FY18.
• The wind turbine manufacturing business witnessed a turn around after one year of transition pain, with stabilization of auction regime. The segment had sales of 80MW and commissioning of 22MW from SECI-1. The revenue from this segment increased by 306% to Rs430.5cr in Q1FY19 as against Rs106.0cr in Q1FY18. The EBITDA from this segment is Rs70.4cr in Q1FY19 as against loss of Rs13.3cr in Q1FY19.
• The company has substantially exited from wind farming business by selling 246MW out of 269MW of operational capacity.
• Film exhibition business witnessed revenue and EBITDA of 7% and 10% yoy respectively in Q1FY19. The PAT increased by 15% yoy in Q1FY19.
• The finance cost of the company declined significantly by 35.2% yoy to Rs53.1cr in Q1FY19.
• The effective tax rate of the company was at 36.6% in Q1FY19.

Technical View:

Gujarat Fluorochemicals Ltd is currently trading at Rs. 770, up by 12.9 points or 1.7% from its previous closing of Rs. 757.10 on the BSE.
The scrip opened at Rs. 765.10 and has touched a high and low of Rs. 792.05 and Rs. 755.25 respectively. So far 3,29,958 (NSE+BSE) shares were traded on the counter. The stock is currently trading below its 200 DMA.

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