Q1-FY15 results out
Sales up 25% YOY (from 216cr in Q1-FY14 to 270cr)
PAT up 67% (from 12 cr to 20 cr)
Net margin 7.41% versus 5.56% in Q1-FY14
Exceptional item of positive 0.8 cr compared to negative 5 cr (this is forex loss on purchases, i presume)
Tax paid @ 31% this Q compared to 25% in Q1-FY14
As per usual practice, they have not provided forex loss on FCB and forward contracts this quarter as well. This amount was a loss of 1.35 cr this Q compared to 15.85 cr in the previous Q. Adjusting for this, PAT would show a much larger growth.
Some other observations:
1). Depreciation has gone up from 4.9 cr to 8.1 cr, presumably due to starting the new plant.
2). However, this does not seem to have translated into corresponding sales growth. Sales growth has moderated a bit compared to 40% plus that it clocked from 2009 to 2013, which had reduced to 31% in 2014, and further to 25% this quarter
3). Inspite of increase in depreciation and tax expenses, PAT has shown significant growth with expansion of margin. The margin of 7.41% is in line with what the company had clocked for the whole of FY 14 ie 7.31%.
The concall would provide additional details regarding stabilisation and production in the new plant, status of new products, outlook for currency related items etc. 4). Forex component could infact be a positive this year given the relatively stability in the rupee and possibility of appreciation during the course of the year.