Vinati Organics Ltd's Q4FY18 standalone net profit rises 26.55% yoy to Rs51.91cr : Beats Estimates

The company’s standalone revenue stood at Rs212.61cr, up 9.05% yoy and 14.52% qoq.

May 12, 2018 02:05 IST India Infoline Research Team

Vinati Organics Ltd Q4FY18

Standalone Results Q4FY18: (Rs. in cr)

Q4FY18 YoY (%)
Revenue 212.61 9.1
EBITDA 64.96 3.8
EBITDA Margin (%) 30.6 [154]
Net Profit (adjusted) 51.91 26.6
***EBITDA margin change is bps


Reco. Price


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Vinati Organics Ltd's revenue for Q4FY18 came in at Rs212.61cr, up by 9.1% yoy. The operating profit for the quarter came in at Rs64.96cr which increased marginally by 3.8% yoy. The EBITDA margin contracted by ~154bps during the quarter to 30.6%. The net profit after tax stood at Rs51.91cr, up by 26.6% yoy. The revenue and PAT of the company for FY18 were in-line with the street estimates. However, the net profit beat street estimate by 15%.

• Gross profit margin of the company declined by ~90bps yoy to 51%. This is on account of likely increase in cost of raw materials and crude oil prices.
• Management estimates a revenue growth of 30-35% in FY19, significantly arising from ATBS segment.
• Capex of Rs240cr for commissioning Butylated phenol is expected to be completed by April, 2019. The management expects a return on investment of ~20% from this new capacity.
• Employee benefit expenses increased significantly by 42.3% to Rs11.93cr in Q4FY18. This further resulted into reduction in the EBITDA margin.
• The effective tax rate of the company for FY18 came down to 29% as against 32% in FY17. Further, the other incomes for Q4FY18 increased significantly by 74% yoy to Rs7.76cr. This lead to jump in the net profit of the company by 26.5% yoy in Q4FY18.
• The short term debt of the company increased to Rs15.20cr as on March 31, 2018 as against Rs2.32cr as on March 31, 2017.
• Board of directors recommended dividend of Rs4.5 per share.
• Board of directors approved the debotttenecking of ATBS capacity from 26,000TPA to 30,000TPA. This is expected to be ready by September 1, 2018.

Technical View:

Vinati Organics Ltd ended at Rs. 927.80, up by 18.6 points or 2.05% from its previous closing of Rs. 909.20 on the BSE.
The scrip opened at Rs. 915 and touched a high and low of Rs. 935 and Rs. 881 respectively. A total of 16,768 (NSE+BSE) shares were traded on the counter. The stock traded below its 200 DMA.

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