Gujarat Mineral Development Corporation Ltd's Q2FY19 standalone net profit declines 73.2% yoy to Rs30.3cr

The company’s standalone revenue stood at Rs294cr, down 15% yoy and 54.4% qoq

Oct 25, 2018 08:10 IST India Infoline Research Team

Gujarat Mineral Development Corporation Ltd Q2FY19

Standalone Results Q2FY19: (Rs. in cr)

Q2FY19 YoY (%)
Revenue 294 [15.0]
EBITDA 75.6 [25.0]
EBITDA Margin (%) 25.7 [344]
Net Profit (adjusted) 30.3 [73.2]
***EBITDA margin change is bps

GMDC reported a weak result for Q2FY19 with reported net profit taking hit due to impairment loss of Rs297.7cr on investment in associate company. Revenue de-grew by 15% yoy to Rs294cr. EBITDA stood at Rs75.6cr, down 25% yoy. EBIDTA margin fell by 343bps yoy to 25.7%. Adjusted Net Profit stood at Rs30cr, down 73.2% yoy.
  • Segmental Revenue for the quarter stood at Rs212cr for the power segment (down 19.2% yoy) and Rs109cr for the mining segment (up 1.1% yoy).
  • Segmental EBIT for the quarter stood at Rs38cr for the power segment (down 36.8% yoy) and Rs36.7cr for the mining segment (up 59.2% yoy).
  • The company has recognised an impairment loss of Rs297.65cr due to the merger of Bhavnagar Energy Ltd (an associate company of GMDC) with Gujarat State Electricity Corporation Ltd.
  • The cash balance of the company stands at Rs19.6cr at the end of 1HFY19.

Technical View:

Gujarat Mineral Development Corporation Ltd is currently trading at Rs. 89, down by 2.55 points or 2.79% from its previous closing of Rs. 91.55 on the BSE.
The scrip opened at Rs. 92.50 and has touched a high and low of Rs. 92.50 and Rs. 89 respectively. So far 2,63,917 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 200 DMA.

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