Kirloskar Oil Engines Ltd's Q1FY19 standalone net profit rises 36.2% yoy to Rs49.6cr: In-line with Estimates

The company’s standalone revenue in the period stood at Rs820cr, up 15.61% yoy.

Aug 10, 2018 06:08 IST India Infoline Research Team

Kirloskar Oil Engines Ltd Q1FY19

Standalone Results Q1FY19: (in Rs cr)

Q1FY19 YoY (%)
Revenue 820.0 15.6
EBITDA 81.4 25.3
EBITDA Margin (%) 9.9 77
Net Profit (adjusted) 49.6 36.2
***EBITDA margin change is bps

Kirloskar Oil Engines’ Q1FY19 numbers were in-line with estimates. Sales increased 15.6% yoy to Rs820cr from Rs709.3cr (adjusted for excise duty). EBITDA increased 25.3% yoy to Rs81.4cr during the quarter from Rs64.9cr in Q1FY18. EBITDA margin improved ~77 bps yoy to 9.9% in Q1FY19. Net profit grew 36.2% yoy to Rs49.6cr.

• Sales growth is expected to be led by industrial and customer business segments. Also, exports (considering lower base) growth might have supported the sales growth.
• Gross margin has declined to 32.8% in Q1FY19 as against 35.3% in Q1FY18. Hence, EBITDA growth is led by the decline in employee cost and other expenses in proportion to sales.
• Depreciation has also declined 29% yoy to Rs19.8cr. Other income too declined 28% yoy to Rs13.2cr. Strong operating performance and decline in depreciation have led to net profit growth.




Technical View:

Kirloskar Oil Engines Ltd is currently trading at Rs262.65 up by Rs4.45 or 1.72% from its previous closing of Rs258.20 on the BSE.
The scrip opened at Rs257.85 and has touched a high and low of Rs266.90 and Rs251, respectively. So far, 1,20,322 (NSE+BSE) shares have been traded on the counter. The stock is currently trading above its 200 DMA.

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