La Opala RG's Q4FY18 standalone net profit declines 7% yoy to Rs14cr : Misses Estimates

The company’s standalone revenue stood at Rs68cr, up 1.3% yoy but down 2.5% qoq.

May 30, 2018 12:05 IST India Infoline Research Team


Standalone Results Q4FY18: (Rs. in cr)

Q4FY18 YoY (%)
Revenue 68.03 1.3
EBITDA 23.53 12.0
EBITDA Margin (%) 34.6 331
Net Profit (adjusted) 14.15 [7.1]
***EBITDA margin change is bps

One of India’s largest opal-ware makers, La Opala RG Limited (LORG) reported lower than expected numbers for Q4FY18. Revenue was up 1% yoy at Rs68cr. This was significantly lower than consensus estimate of Rs77cr. EBITDA was up 12% yoy at Rs24cr, while EBITDA margin expanded 331bps yoy to 34.6%. The margin expansion was achieved due to strict control on raw material costs (6% yoy lower) and operating expenses (9% yoy lower). LORL has seen lower operating expenses as proportion of sales in seven of past eight quarters. However, EBITDA fell short of consensus estimate of Rs31cr and EBITDA margin estimate of 40%. Lower depreciation and near-zero interest expenses were offset by doubling of tax expenses, leading to 7% yoy PAT de-growth. LORG reported PAT of Rs14cr vs. consensus estimate of Rs20cr.

Other Highlights

  • The Board of Directors approved dividend of Rs1.10 per equity share for the year ended March 31, 2018.
  • The Board of LORL also approved setting up of a new Opal Glass Tableware unit at Sitarganj (Uttarakhand) at an estimated cost of Rs135cr.
  • LORL continued to have an extremely robust balance sheet. Total debt on books of the company was negligible (Rs4cr), while total cash on books was up 30% yoy at Rs205cr.

Technical View:

La Opala RG Ltd is currently trading at Rs. 278, up by 13 points or 4.91% from its previous closing of Rs. 265 on the BSE.
The scrip opened at Rs. 270.95 and has touched a high and low of Rs. 278 and Rs. 267.95 respectively. So far 17,325 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 100 DMA.

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