ISGEC Heavy Engineering Limited’s September quarter numbers were a mixed bag as it beat revenue estimates but failed to meet estimated EBITDA and net profit numbers. Revenue from operations jumped 57.3% yoy to Rs1,005.7cr in Q2FY19 vs. Rs639.3cr in Q2FY18, 17.4% above the street estimates. EBITDA for the current quarter increased by 19.9% yoy to Rs51.6cr, 27.3% below the consensus estimates. EBITDA margin contracted by 160bps yoy to 5.1% in Q2FY19. Profit after taxes witnessed a sharp drop of 37.4% yoy to Rs28.8cr for the September quarter of financial year 2019.
Gross profit for the quarter increased by 24.2% yoy to Rs302.3cr as against Rs243.5cr for the same quarter last year.
Gross profit margin declined from 38.1% in Q2FY18 to 30.1% in Q2FY19, mainly owing to surge in cost of materials (77.7% yoy to Rs703.4cr).
Net profit for the quarter dropped due to lower than expected operating numbers coupled with sharp decline in other income (down 67.8% yoy to Rs12.1cr).
Other expenses jumped 35% yoy to Rs182.1cr in Q2FY19 vs. Rs134.9cr in Q2FY18.
Interest costs also jumped, as it nearly doubled from Rs1.7cr in Q2FY18 to Rs3.3cr for the same period last year.
ISGEC Heavy Engineering Ltd is currently trading at Rs. 5,700, up by 316.1 points or 5.87% from its previous closing of Rs. 5,383.90 on the BSE.
The scrip opened at Rs. 5,465 and has touched a high and low of Rs. 5,797 and Rs. 5,351.15 respectively. So far 2,934 (NSE+BSE) shares were traded on the counter. The stock is currently trading below its 200 DMA.
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