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.
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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