Navneet Education Ltd's Q2FY19 standalone net profit rises 73.9% yoy to Rs29cr : Beats Estimates

The company’s standalone revenue stood at Rs263cr, up 44.5% yoy but down 60.7% qoq.

Nov 01, 2018 12:11 IST India Infoline Research Team

Navneet Education Ltd Q2FY19

Standalone Results Q2FY19: (Rs. in cr)

Q2FY19 YoY (%)
Revenue 263.47 44.5
EBITDA 46.34 65.0
EBITDA Margin (%) 17.6 218
Net Profit (adjusted) 28.92 73.9
***EBITDA margin change is bps

Navneet Education Ltd’s revenue grew 44.5% yoy and declined 60.7% qoq to Rs263cr. EBITDA came in at Rs46cr, up 65% yoy and down 76.5% qoq. EBITDA margin expanded by 218bps yoy and contracted by 1,188bps qoq to 17.6%. Company’s adjusted Net profit grew by 73.9% yoy and declined by 77.1% qoq to Rs29cr. PAT came above expectation of Rs26cr.

• Revenue from stationery products segment grew by 31% yoy to Rs84cr.
• Revenue from publishing content segment grew by 52.5% yoy to Rs180cr, driving overall revenue growth.
• Cost of goods sold stood at 45.8% of sales vs. 46.2% yoy aiding in EBITDA margin expansion.
• Employee benefit expenses stood at 13.1% of sales vs. 16.5% yoy, aiding in profitability growth.
• EBIT margin of publishing content stood at 32.4% vs. 32.3% yoy.
• EBIT loss of stationery products stood at Rs4.9cr vs. Rs5.5cr yoy.
• Finance cost grew by 43.2% yoy to Rs2cr.
• Indiannica learning’s new Series of Textbooks from Grades 1-8 are ready for promotion from December 2018, for next Academic Year.
• B2B sales expected to grow with more schools opting for digital learning.
• School Buddy, evaluation based products and Augmented Realty products are showing good interest in B2B segment.

Technical View:

Navneet Education Ltd ended at Rs. 110.15, up by 2.55 points or 2.37% from its previous closing of Rs. 107.60 on the BSE.
The scrip opened at Rs. 107.80 and touched a high and low of Rs. 111 and Rs. 107.80 respectively. A total of 80,530 (NSE+BSE) shares were traded on the counter. The stock traded above its 200 DMA.

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