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Sudarshan Chemicals net sales rose 10% to Rs 400.27 crore in Q2FY19 compared to Q2FY19. The company operating margins increased 300 bps to 15.7% leading to 36% increase in operating profits to Rs 63.04 crore. Cost of material consumed as a percentage of net sales (net of stock adjustment) was down 80 bps to 57.4%, purchase of stock in trade was down 170 bps to 1% while employee benefit expenses was up 90 bps to 8.1% and other expenses decreased 210 bps to 18.1%.
Other income decreased 35% to Rs 1.07 crore compared to Rs 1.63 crore. Interest cost was up 29% to Rs 3.31 crore. Depreciation was up 6% to Rs 16.89 crore. PBT before EO was up 48% to Rs 43.9 crore. The company had nil EO items in Q2FY20 compared to net EO income of Rs 4.97 crore in Q2FY19 related to gain from sale of subsidiary. PBT after EO was up 27% to Rs 43.9 crore.
Tax provision was Rs 57 lakh compared to Rs 10.87 crore. PAT reported was up 83% to Rs 43.33 crore.
Performance for the half year ended September 2019
For half year ended September 2019, net sales rose 10% to Rs 796.7 crore. The company operating margins increased 110 bps to 16%. As a result operating profits increased 18% to Rs 127.64 crore.
Other income fell 26% to Rs 1.95 crore. Interest cost was Rs 6.58 crore compared to Rs 6.64 crore. Depreciation rose 7% to Rs 33.76 crore. PBT before EO was up 24% to Rs 89.24 crore. The company had net EO income of Rs 19.33 crore related to gain for transfer of its industrial mixing solutions division compared EO income to Rs 72.39 crore in the corresponding previous year period related to gain from sale of subsidiary. PBT after EO fell 25% to Rs 108.57 crore.
Tax provision was Rs 19.84 crore compared to Rs 45.6 crore. PAT reported was down 10% to Rs 88.73 crore.
The scrip is currently trading at Rs 407
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