Bharat Bijlee, a leading manufacturer of transformers and motors has registered 19% fall in sales to Rs 166.58 crore for the quarter ended December 2016. Lower sales together with 190 bps contraction in operating profit margin has resulted in 45% fall in operating profit to 6.92 crore. After accounting for higher other income, lower interest and depreciation cost, the PBT was down by 46% to Rs 4.84 crore. Taxation was higher at Rs 0.56 crore compared to nil in the corresponding previous period and thus the PAT was down by 52% to Rs 4.28 crore.
- The operational sales (excluding other operational sales) were down by 19% to Rs 165.91 crore. But the value of production for the quarter was lower by 7% to Rs 183.13 crore. Sale for the quarter is 9% lower than value of production for the period. In comparison the sales for corresponding previous period was 3.5% higher than respective value of production reflecting inventory liquidation in corresponding previous quarter compared to inventory built up during the quarter under review. Thus the growth in sales is relatively on high base. The inventory built up is expected to get liquidated going forward.
- Upside in sales is largely due high single digit growth in revenue of industrial systems. Segment sales of power systems was down by strong 32% to Rs 93.58 crore (or 56% of sales) and that of industrial systems was up by 9% to Rs 72.33 crore (or 44% of sales).
- The EBIT stood lower by 34% to Rs 12.10 crore largely as the EBIT of power systems decline by sharp 51% to Rs 7.79 crore. Sharp fall in EBIT of power systems is largely due to lower sales and 330 bps contraction in segment margin to 8.3%. However the segment profit of industrial systems was up by sharp 92% to Rs 4.31 crore facilitated by higher sales and 260 bps expansion in segment margin to 6%.
- Operating profit margin was down by 190 bps to 4.2% as higher material cost offset the gain cost of traded goods and other expenses. Material cost as % of sales net of stocks was up by 350 bps to 75.6%. The staff cost was up by 10 bps to 11.6%. However the cost of traded goods was down by 20 bps to 2.7% and that of OE was down by 80 bps (to 6.4%).
- Other income jumped up by 14% to Rs 4.75 crore. The interest cost was down by 18% to Rs 4.26 crore. The depreciation was down by 2% to Rs 2.57 crore. Thus spurred by higher OI, lower interest and depreciation cost, the PBT was down by 46% to Rs 4.84 crore.
- As taxation stand at Rs 0.56 crore as against nil in the corresponding previous period, the PAT was down by 52% to Rs 4.28 crore.
Nine month Performance
Sales for the period went down by 6% to Rs 440.46 crore. However the operating profit margin stood contracted by 130 bps to 1.7% and thus the operating profit was down by 45% to Rs 7.59 crore. With 64% jump in OI to Rs 21.65 crore as well as lower interest (down 19% to Rs 11.96 crore) and depreciation (down 4% to Rs 7.38 crore) the PBT more than doubled (up 109%) to Rs 9.90 crore. Eventually with taxation stand at Rs 0.56 crore as against nil in the corresponding previous period, the PAT was up by 97% to Rs 9.34 crore The stock quotes around Rs 870.
Bharat Bijlee: Results
|1612 (3)||1512 (3)||Var.(%)||1612 (9)||1512 (9)||Var.(%)||1603(12)||1503(12)||Var.(%)|
|PBT after EO||4.84||8.89||-46||9.90||4.73||109||7.35||-34.43||LP|
|Current Tax ||0.56||0.00||0.56||0.00||0.52||0.00|
|PAT before PPT ||4.28||8.89||-52||9.34||4.73||97||6.83||-34.43||LP|
|Prior Period Tax (PPT)||0.00||0.00||0.00||0.00||-0.36||-0.38||-5|
|* EPS is on current equity of Rs 5.65 crore, Face value of Rs 10|
# EPS is not annualised due to seasonality of business
Figures in Rs crore
Source: Capitaline Corporate Database
Bharat Bijlee: Segment Results
|Sales||1612 (3)||1512 (3)||Var. (%)||% to total||1612 (9)||1512 (9)||Var. (%)||% to total||1603(12)||% to total|
|Less Inter segment revenue||0.00||0.00||0.00||0.00||0.00|
|PBT before tax and interest||12.10||18.24||-34||100||24.05||30.02||-20||100||38.45||100|
|Add: Other unallocable income||-3.00||-4.15||-28||-2.19||-10.61||-79||-10.54|
|Figures in Rs crore|
Var. (%) exceeding 999 has been truncated to 999
LP: Loss to Profit; PL: Profit to Loss
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