Suprajit Engineering Ltd's Q2FY19 consolidated net profit declines 23% yoy to Rs24cr : Misses Estimates

The company’s consolidated revenue stood at Rs391cr, up 16% yoy and 8% qoq.

Nov 14, 2018 07:11 IST India Infoline Research Team

Suprajit Engineering Ltd Q2FY19

Consolidated Results Q2FY19: (Rs. in cr)

Q2FY19 YoY (%)
Revenue 391.40 16.3
EBITDA 53.14 [5.1]
EBITDA Margin (%) 13.6 [306]
Net Profit (adjusted) 24.06 [23.1]
***EBITDA margin change is bps

Suprajit Engineering Limited (SEL) missed consensus estimate at EBITDA and PAT level, while revenue was slightly above estimate. Consolidated revenue was up 16% yoy (8% qoq) at Rs391cr, above consensus estimate of Rs378cr. However, operating performance was below expectation due to higher raw material expenses. At Rs53cr, EBITDA was 5% yoy lower (4% qoq lower) and missed consensus expectation of Rs59cr. A higher tax rate led to considerable drop in consolidated PAT, which came in at Rs24cr, down 23% yoy (16% qoq). Consensus estimated PAT was higher at Rs31cr.

Other Highlights
  • Tax rate for the quarter was 39% vs. 31% in Q2FY18 and 33% in Q1FY19.
  • Total debt on books of the company remained nearly unchanged at Rs350cr as on September 30, 2018. D/E ratio was 0.49x.
  • Company is currently undertaking capacity expansion worth Rs100cr for increasing cable manufacturing capacity from 25cr per annum to 30cr per annum.

Technical View:

Suprajit Engineering Ltd is currently trading at Rs. 224.35, down by 6.5 points or 2.82% from its previous closing of Rs. 230.85 on the BSE.
The scrip opened at Rs. 235.15 and has touched a high and low of Rs. 235.15 and Rs. 220.75 respectively. So far 49,286 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 200 DMA.

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