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In the quarter ended Dec 09, Banco Products, an auto component manufacturer, reported outstanding growth of 289% in its net profit to Rs 19.24 crore backed by robust operating performance i.e. 870 bps growth in OPM as well as non operating performance such as decline in interest cost, rise in other income and reduction in effective tax rate. Its operating income grew by impressive 67% to Rs 107.24 crore.
However, the company's financial results for the quarter ended and nine month ended Dec 09 includes financials of merged entity Ganga Investments Pvt Ltd w.e.f from 18th Sep 09. Thus the financial results of the company for quarter ended Dec 09 and nine month ended Dec 09 are not comparable with their respective corresponding previous periods. The effect of the Scheme of merger of Ganga Investment Pvt Ltd with the Company has also been given in the audited financial statements of the Company for the year ended 2009. Thus the financial results of FY 09 are not comparable with FY 08 too.
Quarter Performance
The company's operating income grew by impressive 67% to Rs 107.24 crore in Dec 09 quarter. Further with 870 bps growth in operating profit margin (OPM) to 24.6%, the operating profit was lifted by 159% to Rs 26.34 crore.
In terms of cost, as % to sales net stock adjusted, the raw material cost slipped by 130 bps to 53%. The other expenditure declined by 530 bps to 18% while the staff cost slipped by 210 bps to 4%.
The growth in PBT surged by whopping 240% to Rs 24.18 crore thanks to impressive growth in other income, decline in interest cost and marginal growth in depreciation cost. The other income grew by whopping 399% to Rs 0.73 crore. The interest cost crashed by 50% to Rs 0.47 crore while the depreciation cost grew by marginal 7% to Rs 2.41 crore. Further with sharp 1000 bps decline in effective tax rate, the net profit surged by whopping 289% to Rs 19.24 crore.
Nine Month Performance
In nine month ended Dec 09, the company's topline grew by 26% to Rs 292.63 crore. However 780 bps spurt in OPM to 26.3% boosted the operating profit by robust 79% to Rs 76.98 crore. The other income surged by whopping 256% to Rs 1.75 crore while the interest cost crashed by 51% to Rs 1.03 crore. The depreciation cost grew only by 11% to Rs 7.12 crore. Together it lifted the PBT by whopping 102% to Rs 70.59 crore. Unfortunately, the increase in effective tax rate by 400 bps limited the growth in net profit to 93% to Rs 56.58 crore.
The promoters' share in the total shareholding has increased to 66.80% in Dec 09 quarter from 66.79% in Sep 09 quarter. The promoters' have pledged ‘nil' shares of the company.
Currently the scrip is trading around Rs 87.45 on BSE.
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