Vinati Organics Ltd's Q3FY19 standalone net profit rises 122.79% yoy to Rs70.68cr : Beats Estimates

The company’s standalone revenue stood at Rs303.05cr, up 63.24% yoy and 21.83% qoq.

Jan 30, 2019 09:01 IST India Infoline Research Team

Vinati Organics Ltd Q3FY19

Standalone Results Q3FY19: (Rs. in cr)

Q3FY19 YoY (%)
Revenue 303.05 63.2
EBITDA 106.44 113.6
EBITDA Margin (%) 35.1 827
Net Profit (adjusted) 70.68 122.8
***EBITDA margin change is bps
Vinati Organics Ltd's revenue for Q3FY19 came in at Rs303.05cr, up 63.2% yoy. The operating profit for the quarter came in at Rs106.44cr, which increased significantly by 113.6% yoy. The EBITDA margin expanded by ~827bps yoy during the quarter to 35.1%. The net profit after tax stood at Rs70.68cr, up 122.8% yoy. The revenue, EBITDA and PAT of the company for Q3FY19 beat the street estimate of Rs261cr, Rs91cr and Rs61cr by 16%, 17% and 16% respectively.

• The significant increase in revenue is on account of likely higher levels of volume and higher realizations during the quarter.
• Gross profit margin of the company expanded by ~435bps yoy to 51.2%. This is on account of likely improvement in product mix and increase in realizations.
• The expansion in EBITDA margin is led by likely improvement in operating leverage during the quarter. Employee benefit expenses increased moderately by 13.0% yoy to Rs14.05cr in Q3FY19. The other expenses increased signicantly by 40.4% yoy to Rs34.68cr in Q3FY19.
• The effective tax rate of the company for Q3FY19 stood at 34% as against 31% in Q3FY18. Further, the other incomes for Q3FY19 increased significantly to Rs7.28cr vs. Rs1.78cr in Q3FY18. This led to further traction in the net profit of the company.

Technical View:

Vinati Organics Ltd is currently trading at Rs. 1,580, up by 27.05 points or 1.74% from its previous closing of Rs. 1,552.95 on the BSE.
The scrip opened at Rs. 1,560 and has touched a high and low of Rs. 1,647.10 and Rs. 1,550 respectively. So far 1,11,646 (NSE+BSE) shares were traded on the counter. The stock is currently trading below its 50 DMA.

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