|
Sudarshan Chemicals net sales rose 10% to Rs 396.43 crore in Q1FY19 compared to Q1FY19. The company operating margins decreased 30 bps to 15.7% leading to 7% increase in operating profits to Rs 62.09 crore. Cost of material consumed as a percentage of net sales (net of stock adjustment) was down 170 bps to 56.4%, purchase of stock in trade was down 20 bps to 1.7% while employee benefit expenses was up 110 bps to 8.2% and other expenses decreased 40 bps to 18.1%.
Other income decreased 26% to Rs 3.39 crore compared to Rs 4.58 crore. Interest cost was down 20% to Rs 3.27 crore. Depreciation was up 7% to Rs 16.87 crore. PBT before EO was up 7% to Rs 45.34 crore. The company had net EO income of Rs 19.33 crore in Q1FY20 related to gain due to transferring its industrial mixing solutions division on a going concern basis compared to net EO income of Rs 67.42 crore in Q1FY19 related to gain from divestment of the company's holdings in its wholly owned subsidiary Prescient colour. PBT after EO was down 41% to Rs 64.67 crore.
Effective rate of taxes was down 180 bps to 29.8%. PAT reported was down 40% to Rs 45.4 crore.
Performance for the year ended March 2019
For year ended March 2019, net sales rose 11% to Rs 1476.51 crore. The company operating margins increased 20 bps to 14.3%. As a result operating profits increased 13% to Rs 210.82 crore.
Other income fell 38% to Rs 5.67 crore. Interest cost was Rs 15.17 crore compared to Rs 23.43 crore. Depreciation rose 12% to Rs 64.9 crore. PBT before EO was up 18% to Rs 136.43 crore. The company had net EO income of Rs 72.27 crore compared to nil in the corresponding previous year period. Exceptional items pertains to the gain from divestment of the company's holdings in its wholly owned subsidiary, President Colour and the sale of its Agro formulation Branding Business. PBT after EO rose 81% to Rs 208.7 crore.
Effective tax rate was down 30 bps to 33%. PAT reported was up 82% to Rs 139.74 crore.
The scrip is currently trading at Rs 320
|