Kirloskar Oil Engines Ltd's Q3FY19 standalone net profit rises 6.46% yoy to Rs42cr : Misses Estimates

The company’s standalone revenue stood at Rs774.31cr, up 13.1% yoy and 1.61% qoq.

Jan 25, 2019 02:01 IST India Infoline Research Team

Kirloskar Oil Engines Ltd Q3FY19

Standalone Results Q3FY19: (Rs. in cr)

Q3FY19 YoY (%)
Revenue 774.31 13.1
EBITDA 66.33 2.3
EBITDA Margin (%) 8.6 [90]
Net Profit (adjusted) 42 6.5
***EBITDA margin change is bps
Kirloskar Oil Engines’ Q3FY19 numbers were lower than consensus estimates. Sales increased 13% yoy to Rs774.31cr from Rs684.61cr in Q2FY18, marginally beating the estimates by 3%. EBITDA rose 2% yoy to Rs66.33cr vs. Rs64.83cr during the corresponding quarter last year, missing the estimates by 4%. EBITDA margin softened by 90bps yoy to 8.6% in Q3FY19. Net profit for the quarter declined 6% yoy to Rs42cr, missing the estimates by 4%.
  • Gross profit increased 4% yoy to Rs261.95cr for the December quarter of 2018. However gross margin declined from 37% in Q3FY18 to 34% in Q3FY19.
  • Operating profit for the quarter declined mainly owing to higher cost of material, up 18% yoy to Rs512.36cr.
  • Lower operating margin coupled with sharp drop in other income (down 34% yoy to Rs14.18cr) led to decline in net profit for Q3FY19.
  • Tax expenses increased 11% yoy to Rs20.11cr in Q3FY19 vs. Rs18.1cr in Q3FY18.

Technical View:

Kirloskar Oil Engines Ltd is currently trading at Rs. 187.55, up by 6.55 points or 3.62% from its previous closing of Rs. 181 on the BSE.
The scrip opened at Rs. 185.85 and has touched a high and low of Rs. 190 and Rs. 182.25 respectively. So far 60,933 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 200 DMA.

Related Story

Open Free Demat Account (Rs699)