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KCP has clocked 66% surge in net profit to Rs 8.57 crore on the back of 12% gain in total income from operation to Rs 203.81 crore for second quarter ended September 2016. The improvement in topline was assisted by growth in the engineering, Cement, and Power divisions. The OPM reduced by 10 bps to 18.2%, thus, Operating profit grew by 11% to Rs 37.13 crore.
Performance for the quarter and year ended March 2016
Net sales revenue (includes cement, engineering, power, and hotel segment revenue) of the company inclined 12% to Rs 203.81 crore for the second quarter ended September 2016.The revenue from cement segment (contributes 83% of total revenue) increased by 13% to Rs 206.26 crore and engineering segment (contributes 9% of total revenue) jumped by 8% to Rs 22.49 crore. The power segment revenue (contributes 6% of total revenue) fell by 21% to Rs 14.88 crore. The hotel segment revenue (contributes 1% of total revenue) was Rs 2.42 crore
The operating margins (OPM) declined 10 bps to 18.2%. As a result, the operating profit rose by 11% at Rs 37.13 crore. At segment level, PBIT of cement business inclined 23% to Rs 27.47 crore while power business PBIT fell 39% to Rs 1.97 crore. The engineering business suffered LBIT of Rs 0.86 crore compared with LBIT of Rs 1.48 crore in corresponding previous quarter.
The other income was down 16% to Rs 1.17 crore. The interest cost rose by 4% to Rs 12.01 crore and depreciation was up 43% to Rs 12.01 crore. Thus, the PBT of the company stood at Rs 13.31 crore, which was 6% down compared to the corresponding quarter of the previous year. With net taxation of Rs 4.74 crore (47% down yoy), the Company posted 66% jump in net profit to Rs 8.57 crore.
Half yearly performance
Sales of the company declined 1% to Rs 386.21 crore for first half of the current fiscal year ended September 2016. OPM shrank by sharp 520 bps to 17.5%, chiefly due to spike in cost of raw material by 440 bps to 29.1%, power & fuel cost by 150 bps to 16.8%, and employee cost by 40 bps 9.3% as percentage to sales and net of stock adjustments. As a result, Operating Profit declined 24% to Rs 67.54 crore. The other income grew by 83% to Rs 2.94 crore. The interest cost was flat at Rs 23.74 crore, but depreciation was up 38% to Rs 24.76 crore. Thus, the PBT stood at Rs 21.98 crore, which was 55% down compared to the corresponding period of the previous year. The tax outgo declined 15% to Rs 7.67 crore. The effective tax rate grew to 34.9% from 18.6% corresponding period of the previous year. Thus, the PAT shrank by 64% to Rs 14.31 crore.
The scrip hovers around Rs 98.20 (11 November 2016) on the BSE.
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