Skipper's Q4FY16 standalone net profit rises 19.35% yoy to Rs.36.11 crore : Misses Estimates

The company’s standalone revenue stood at Rs. 529.75 crore, up 5.96% yoy and 42.49% qoq.

May 18, 2016 1:38 IST | India Infoline News Service
Skipper, major supplier of PVC pipes and transmission towers, reported standalone net profit of Rs. 36.11 crore for the quarter ended March 31, 2016, registering growth of 19.35% yoy and 93.11% qoq. The company’s revenue stood at Rs. 529.75 crore, up 5.96% yoy and 42.49% qoq.

Its standalone core operating profit of Rs. 73.40 crore for the quarter, clocked growth of 6.89% yoy and 48.31% qoq. Operating profit margin for the current quarter at 13.86% expanded by 12 bps yoy and 55 bps qoq.

For the year ended March 31, 2016, the company reported standalone net profit of Rs. 95.12 crore, growing by 6.67% yoy. Its standalone revenue for the period stood at Rs. 1,506.22 crore, registering growth of 14.73% yoy.

Skipper Ltd's core operating profit stood at Rs. 219.24 crore, recording growth of 1.9% yoy. Operating margin for the current period at 14.37% contracted by 202 bps yoy.

Skipper (Q4 FY16) - Execution slower than expected:

Skipper’s topline growth of 6% yoy to Rs. 530cr was quite lower than IIFL estimate of Rs. 580 crore due to slower execution in some projects and a fall in commodity prices. Miss in execution led to lower than expected operating profit. Operating profit increased 6.9% yoy against estimate of 17% growth. OPM for the quarter stood at 13.9%, inline with our expectation and higher by 12bps yoy. PAT growth too was lower than expected at 19.2% yoy to Rs. 36cr against IIFL estimate of 38 crore. On a segmental basis, engineering segment revenue was higher by 5.6% yoy and that of infrastructure segment was lower by 47.2% yoy. PVC segment continued to show strong growth in topine at 28.6% yoy on the back of rampup of new capacities. EBIT margins for all the segment was lower on a qoq basis this quarter.

Result Highlights: (Rs. in crore)

Reported Results IIFL Estimates Variance (%)
Standalone Revenue 529.75 580 [8.66]
Standalone Net Profit 36.11 39.3 [8.12]

Bloomberg estimated the company’s standalone net profit at Rs. 33.60 crore.

Stock Commentary:

Skipper Ltd is currently trading at Rs. 143.2, up by 0.4 points or 0.28% from its previous closing of Rs. 142.8 on the BSE.

The scrip opened at Rs. 143.3 and has touched a high and low of Rs. 147.9 and Rs. 141.6 respectively. So far 176887(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 1461.08 crore.

The BSE group 'B' stock of face value Rs. 1 has touched a 52 week high of Rs. 219.9 on 06-Jan-2016 and a 52 week low of Rs. 116 on 25-Aug-2015. Last one week high and low of the scrip stood at Rs. 145.9 and Rs. 139.5 respectively.

The promoters holding in the company stood at 72.37 % while Institutions and Non-Institutions held 3.35 % and 24.27 % respectively.

The stock is currently trading above its 200 DMA.

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