Banco Products registered strong performance on a consolidated basis for the year and fourth quarter ended March 2014. While the company's topline registered good gains, bottomline rose by 47% for both the fourth quarter and year ended March 2014. Net profit would have shot up further but for sharp rise in interest and tax expenses.
Annual Performance
For the year ended March 2014, the company has reported 13% rise in the total income from operations at Rs 1161.77 crore vis a vis last year's Rs 1024 crore on a consolidated basis.
For the year, the raw material cost as % of sales net of stock adjustments has declined 270 bps to 51%. The employee cost rose 30 bps to 13.3% in FY 13-14. Other expenses fell by 28 bps to 21.67%. Resultantly, Operating margins improved by 260 bps 14.2%. Operating profit rose by 38% to Rs 164.8 crore on a y-o-y basis.
With 3% drop in other income at Rs 8.6 crore, PBIDT increased by 36% to Rs 173.4 crore. Interest cost rose by 17% to Rs 19.34 crore. Depreciation cost increased by 12% at Rs 32.37 crore. Thus, PBT increased by 47% to Rs 121.69 crore. After considering 45 bps increase in the effective tax rate at 26.2% (50% rise in tax provison), Net Profit rose by 47% to Rs 89.81 crore.
Quarterly Performance
For the fourth quarter ended March 2014, the company has reported 15% rise in the total income from operations at Rs 281.68 crore.
Margins would have improved further but for rise in raw material expenses. For the quarter, the raw material cost as % of sales net of stock adjustments rose by 26 bps at 57.2%. The employee cost fell 112 bps to 12.85% during the quarter. Other expenses fell by 250 bps to 18.9%. Resultantly, Operating margins improved by 370 bps 12%. Operating profit rose by 65% to Rs 33.7 crore on a y-o-y basis.
With nil other income, PBIDT increased by 52% to Rs 33.7 crore. Interest cost more than doubled to Rs 7.81 crore. Depreciation cost rose 9% at Rs 7.89 crore. Thus, PBT increased by 59% to Rs 17.99 crore. After considering 430 bps increase in the effective tax rate at 48.03% (75% rise in tax provison), Net Profit rose by 47% to Rs 9.35 crore.
- The promoters' share in the total shareholding stood unchanged at 67.88% in Mar 14. Promoters have pledged nil shares of the company.
- The company announced its earning on 23 May 2014 during market hours. The stock closed lower by 8.3% at Rs 93 on that day after hitting a high of Rs 106.45 and low of Rs 90.95 earlier during the day at BSE.