La Opala RG's Q4FY16 standalone net profit declines 33% yoy to Rs.14.21 crore : Estimates Misses

The company’s standalone revenue stood at Rs. 53.89 crore, down 12.15% yoy and 33.04% qoq.

May 13, 2016 6:10 IST | India Infoline News Service
La Opala RG
La Opala RG, manufacturer and marketer of life style products, reported standalone net profit of Rs.14.21 crore for the quarter ended March 31, 2016, registering growth of 33.49% yoy, but decline of 29.72% qoq. The company’s standalone revenue stood at Rs. 53.89 crore, down 12.15% yoy and 33.04% qoq.

Its standalone core operating profit of Rs. 20.45 crore for the quarter, clocked growth of 19.49% yoy but decline of 29.44% qoq. Operating profit margin for the current quarter at 37.95% expanded by 1005 bps yoy and 194 bps qoq.

For the year ended March 31, 2016, the company reported standalone net profit of Rs. 58.71 crore, growing by 40.66% yoy. Its standalone revenue for the period stood at Rs. 249.30 crore, registering growth of 11.63% yoy.

La Opala RG's core operating profit stood at Rs. 86.55 crore, recording growth of 31.08% yoy. Operating margin for the current period at 35.29% expanded by 572 bps yoy.

La Opala -  Q4FY16 - Double digit Sales decline; margin zooms led by lower ad spend

La Opala’s net sales declined by 12.1% to Rs. 54 crore, 31.5%/26.5% lower than IIFL estimate of Rs79 crore. Gross margin improved 826bps due to benign raw material prices. Advertisement cost declined 1,365bps to 2.5% in Q4FY16 as against 16.2% in Q4FY15 (as a % of sales), EBITDA margin improved 1,007bps to 38% despite higher power cost by 727bps. EBITDA margin came 700bps higher than IIFL estimate of 31%. Hence, despite lower sales growth, EBITDA grew by 19.6% to Rs. 20cr, 16%/16.1% lower than IIFL estimate. PBT grew by 30.1% to Rs. 18 crore on the back of lower interest cost. Tax rate declined to 20.2% as against 22.2%, PAT grew 33.6% to Rs 14 crore, 1.9% higher than IIFL estimate of Rs. 14 crore.

Result Highlights: (Rs. in crore)

Reported Results IIFL Estimates Variance (%)
Standalone Revenue 53.89 78.69 [31.52]
Standalone Net Profit 14.21 13.96 1.83

Bloomberg estimated the company’s standalone net profit at Rs. 16 crore.

Corporate Action: La Opala RG Ltd has informed BSE that the Board of Directors of the Company at its meeting held on May 13, 2016, inter alia, has recommended dividend of Rs. 1.80 per equity share of Rs. 2/- each, which will be placed for approval in the forthcoming Annual General Meeting.

Stock Commentary:

La Opala RG Ltd is currently trading at Rs. 552, down by 17.5 points or 3.07% from its previous closing of Rs. 569.5 on the BSE.

The scrip opened at Rs. 558.1 and has touched a high and low of Rs. 558.1 and Rs. 530 respectively. So far 42416(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 3160.73 crore.

The BSE group 'B' stock of face value Rs. 2 has touched a 52 week high of Rs. 669.7 on 04-Feb-2016 and a 52 week low of Rs. 312.4 on 16-Jun-2015. Last one week high and low of the scrip stood at Rs. 582 and Rs. 562.15 respectively.

The promoters holding in the company stood at 65.02 % while Institutions and Non-Institutions held 19.24 % and 15.74 % respectively.

The stock is currently trading above its 100 DMA.

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