Himatsingka Seide Ltd's Q1FY19 consolidated net profit declines 11.97% yoy to Rs44.57cr : Misses Estimates

The company’s consolidated revenue stood at Rs582.59cr, up 13.9% yoy and 3.4% qoq.

Aug 09, 2018 01:08 IST India Infoline Research Team

Himatsingka Seide Ltd Q1FY19

Consolidated Results Q1FY19: (Rs. in cr)

Q1FY19 YoY (%)
Revenue 582.59 13.9
EBITDA 115.51 6.5
EBITDA Margin (%) 19.83 [139]
Net Profit (adjusted) 44.57 [12.0]
***EBITDA margin change is bps

Himatsingka Seide Ltd’s revenue grew by 13.9% yoy and 3.4% qoq to Rs583cr. EBITDA came in at Rs116cr, up 6.5% yoy and down 6.8% qoq. EBITDA margin contracted by 139bps yoy and 217bps qoq. Company’s adjusted net profit stood at Rs45cr, down 12% yoy and 11.5% qoq. Adjusted net profit came lower than the street estimate of Rs50cr.

• Cost of goods sold stood at 48.7% of sales vs. 50% yoy, which resulted in EBITDA margin contraction.
• Other expenses stood at 22% of sales vs. 18.4% yoy.
• Employee benefit expenses stood at 9.5% of sales vs. 10.4%.
• Finance cost grew by 45% yoy to Rs37cr.
• During the quarter ended June 30, 2018, the company through its wholly owned step down subsidiary Himatsingka America Inc, USA has acquired the home portfolio of Global Brands Group Holding Ltd. The acquired portfolio includes exclusive license rights to the Tommy Hilfiger Home brand, the Copper Fit brand, and other brands. The Company has incurred a onetime transaction cost of Rs7cr towards the said acquisition. The transaction costs include legal, documentation, professional and transaction support and services cost, which have been included in other expenses.

Technical View:

Himatsingka Seide Ltd is currently trading at Rs. 305, down by 9.15 points or 2.91% from its previous closing of Rs. 314.15 on the BSE.
The scrip opened at Rs. 313.95 and has touched a high and low of Rs. 317.05 and Rs. 305 respectively. So far 82,897 (NSE+BSE) shares were traded on the counter. The stock is currently trading below its 200 DMA.

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