Monsanto India Ltd posts standalone net profit of Rs24.09cr in Q2FY19, vs. net loss of Rs6.39cr in Q2FY18 : Beats Estimates

The company’s standalone revenue stood at Rs128.36cr, up 33.71% yoy but down 50.75% qoq.

Oct 29, 2018 09:10 IST India Infoline Research Team

Monsanto India Ltd Q2FY19

Standalone Results Q2FY19: (Rs. in cr)

Q2FY19 YoY (%)
Revenue 128.36 33.7
EBITDA 22.66 -
EBITDA Margin (%) 17.7 -
Net Profit (adjusted) 24.09 -
***EBITDA margin change is bps
Monsanto India Ltd's revenue for the quarter came in at Rs128.4cr, up by 33.7% yoy. The operating profit stood at Rs22.7cr in Q2FY19 vs. operating loss of Rs11.8cr in Q2FY18. The EBITDA margin stood at 17.7% during Q2FY19. The net profit after tax came in at Rs24.1cr for Q2FY19 vs. net loss of Rs6.4cr in Q2FY18. The revenue and net profit beat the consensus estimates of Rs109cr and Rs12cr by 18% and 93% respectively.

• The increase in revenue is on account of likely higher levels of volume coupled with rise in price realization during the quarter.
• The gross margin of the company witnessed a significant increase by ~1392bps yoy to 54.7% in Q2FY19. This is on account of likely improvement in product mix and higher realizations during quarter.
• High operating leverage led to operating profit of Rs22.7cr during the quarter. Employee benefits expense declined by 19.6% yoy to Rs12.8cr during the quarter.
• The effective tax rate of the company for H1FY19 was at 7%.
• Board of directors approved an interim dividend of Rs25 per share.

Technical View:

Monsanto India Ltd is currently trading at Rs. 2,582, up by 86.25 points or 3.46% from its previous closing of Rs. 2,495.75 on the BSE.
The scrip opened at Rs. 2,586 and has touched a high and low of Rs. 2,654.10 and Rs. 2,482.05 respectively. So far 29,565 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 100 DMA.

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