Sheela Foam Ltd's Q1FY19 consolidated net profit rises 15.6% yoy to Rs32.6cr

The company’s consolidated revenue in the period stood at Rs502cr, up 19.7% yoy but down 4.9% qoq.

Aug 10, 2018 11:08 IST India Infoline Research Team

Sheela Foam LTD Q1FY19

Consolidated Results Q1FY19: (in Rs cr)

Q1FY19 YoY (%)
Revenue 502 19.7
EBITDA 50.5 12.9
EBITDA Margin (%) 10.1 [60]
Net Profit (adjusted) 32.6 15.7
***EBITDA margin change is bps
Sheela Foam has reported a healthy set of numbers for the quarter. Revenue (net of excise duty in the base quarter) grew 19.7% to Rs502cr. Due to elevated TDI price (key raw material), gross margin for the quarter contracted marginally by 28bps yoy to 43.8%. EBITDA reported 12.9% yoy growth to Rs50.5cr and EBITDA margin contracted 60bps yoy to 10.1%. PAT for the quarter was up 15.7% yoy to Rs32.6cr.
  • The revenue from Australian operations increased from Rs72cr in Q1FY18 to Rs76cr. Due to higher TDI prices, EBITDA declined from Rs4cr in Q1FY18 to Rs2cr in Q1FY19.
  • The price of TDI remained at a high level during the quarter and went up to Rs310/kg before closing at Rs295/kg at the end of the quarter. TDI prices are on a declining trend since July and at present the prices are Rs255/kg.
  • Depreciation for the quarter grew 21.4% yoy. Interest cost was also up 6.3% yoy.
  • Other income for the quarter was up 16.8% yoy to Rs6.3cr.
  • Tax rate for the quarter stood at 28.2% vs. 30.4% in Q1FY18.
  • On a sequential basis, the company’s performance was not encouraging. Revenue and EBITDA declined 4.9% qoq and 3.4% qoq, respectively, whereas PAT remained flat. 

Technical View:

Sheela Foam Ltd ended at Rs1,505, down 38.05 points, or 2.47%, from its previous close of Rs1,543.05 on the BSE.
The scrip opened at Rs1,587 and has touched a high and low of Rs1,587 and Rs1,505, respectively. A total 4,141 (NSE+BSE) shares were traded on the counter. The stock is currently trading below its 200 DMA.

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