Timken India Ltd's Q1FY19 standalone net profit rises 44% yoy to Rs32cr: Beats Estimates

The company’s standalone revenue in the period stood at Rs383cr, up 28% yoy and 11% qoq.

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

Timken India Ltd Q1FY19

Standalone Results Q1FY19: (in Rs cr)

Q1FY19 YoY (%)
Revenue 383.38 27.8
EBITDA 59.30 40.0
EBITDA Margin (%) 15.5 134
Net Profit (adjusted) 31.63 44.3
***EBITDA margin change is bps

Timken India Limited (Timken) reported a strong set of numbers in Q1FY19, surpassing consensus estimates on all three counts – revenue, EBITDA, and PAT. Standalone revenue was up 27% yoy (11% qoq) at Rs383cr, higher than the consensus estimate of Rs352cr. The company managed to keep a lid on operating costs, and hence, EBITDA grew at 40% yoy (29% qoq) to Rs59cr. EBITDA margin expanded 134bps yoy (214bps qoq) to 15.5%. EBITDA and EBITDA margin surpassed the consensus estimate of Rs50cr and 14.1%, respectively. Standalone PAT grew 44% yoy (34% qoq) to Rs32cr, surpassing the consensus estimate of Rs25cr. This was the second-highest quarterly PAT in at least 16 quarters.

Other Highlights

  • Revenue growth during Q1FY19 was led by strong underlying demand from the domestic automobile segment, which has grown at 18% yoy in Q1FY19. The company also took price hikes during the quarter to pass on higher input cost to its clients.
  • EBITDA margin expansion was led by higher capacity utilization, price hike, and improving operating leverage. EBITDA margin of 15.5% in Q1FY19 was the highest in the past seven quarters.

Technical View:

Timken India Ltd is currently trading at Rs712.10, down 4.45 points, or 0.62%, from its previous close of Rs716.55 on the BSE. The scrip opened at Rs722 and has touched a high and low of Rs723.50 and Rs712.10, respectively. A total of 8,270 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 200 DMA.

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