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KCP has reported a 14% increase in net salesto Rs 190.54 crore during the 4th quarter ended March 2016. The improvement in revenue was assisted by growth in the engineering, Cement, and Power divisions. The OPM contracted by 570 bps to 14.7%, thus, Operating profit declined by 18% to Rs 28.01 crore.
The other income was down by 82% to Rs1.73 crore and the interest cost was down by 22% to Rs10.57 crore but depreciation was up by 2% to Rs10.04 crore. Thus, the PBT of the company stood at Rs9.13 crore, which was 55% down compared to the corresponding quarter of the previous year. The Company suffered loss of Rs 1.20 crore at PAT before EO. After accounting extra ordinary expense of Rs 0.55 crore, the Company net loss widened to Rs 1.75 crore.The company had posted a net profit of Rs13.45 crore in the same quarter last fiscal.
Performance for the quarter and year ended March 2016
Net sales revenue (includes cement, engineering, and power segment revenue) of the company inclined 14% to Rs 190.54 crore for the fourth quarter ended march 2016.The revenue from cement segment (contributes 85% of total revenue) increased by 13% to Rs202.18 crore, engineering segment (contributes 5% of total revenue) jumped by 279% to Rs12.46 crore, and power segment (contributes 9% of total revenue) gained by 28% to Rs21.35 crore.
The operating margins (OPM) declined 570 bps to 14.7%, due to increase in raw material cost by 770 bps to 32.1%, employee cost by 120 bps to 8.8%, and power & fuel cost by 30 bps to 17.9%as percentage to sales and net of stock adjustments. However, freight & forwarding cost declined by 170 bps to 12.8% and other expenditure lost by 300 bps to 8.1% as of adjusted net sales during the period. As a result, the operating profit dropped by 18% at Rs28.01 crore.
At segment level, PBIT of cement business dropped 38% to Rs24.87 crore while power business PBIT fell 1% to Rs2.951 crore. The engineering business suffered LBIT of Rs 6.94 crore compared with LBIT of Rs 13.35 crore in corresponding previous quarter. Margins of cement and power business declined to 12.3% and 13.8%, respectively, from 22.3% and 17.8%, respectively, in corresponding previous quarter.
The other income was down by 82% to Rs 1.73 crore and the interest cost was down by 22% to Rs 10.57 crore but depreciation was up by 2% to Rs 10.04 crore. Thus, the PBT of the company stood at Rs 9.13 crore, which was 55% down compared to the corresponding quarter of the previous year. With net taxation of Rs 10.33 crore the Company suffered loss of Rs 1.20 crore at PAT before EO. After accounting extra ordinary expense of Rs 0.55 crore, the Company net loss widened to Rs 1.75 crore. The company had posted a net profit of Rs 13.45 crore in the same quarter last fiscal.
Annual Financial Performance
For the financial year ended March 2016 (FY 2016), Net sales revenue for the period escalated by 23% to Rs749.79 crore. The revenue from cement segment (contributes 83% of total revenue) increased by 22% to Rs765.90 crore, engineering segment (contributes 8% of total revenue) jumped by 40% to Rs70.96 crore, and power segment (contributes 9% of total revenue) gained by 137% to Rs78.85 crore.
OPM was up 390 bps to 19.5%, thus, the operating profit grew 54% at Rs146.12 crore. Other income fell 69% to Rs3.83 crore, thus, PBIDT inclined 40% to Rs149.95 crore. With decline in interest cost by 7% to Rs45.41 crore butgain in depreciation allowance cost by 14% to Rs39.12 crore,
the PBT, as a result, inclined 174% to Rs65.42 crore. The tax outgo has increased 181% to Rs22.56 crore. The effective tax rate grew 80 bps to 34.5% during the period. Thus, the PAT was up 170% to Rs42.86 crore.After accounting extra ordinary expense of Rs 0.55 croreduring the period compare with expense of Rs 1.43 crore in corresponding previous period, the PAT after EO gained by 151% to Rs 43.41 crore.
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