Capitaline

Results 12-Aug-23

Analysis

Tega Industries

PBIT margin down 420 bps to 14.7%

Tega Industries consolidated net sales increased 9.66% to Rs 268.07 crore in Q1FY24 compared to Q1FY23. Sales of Consumables segment has gone down 8.38% to Rs 223.96 crore (accounting for 83.48% of total sales).

Profit before interest, tax and other unallocable items (PBIT) has slumped 14.72% to Rs 39.38 crore. PBIT of Consumables segment fell 23.13% to Rs 35.50 crore (accounting for 90.14% of total PBIT).

PBIT margin of Consumables segment fell from 18.89% to 15.85%. Overall PBIT margin fell from 18.89% to 14.68%.

Operating profit margin has declined from 18.89% to 14.68%, leading to 14.81% decline in operating profit to Rs 39.34 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 42.64% to 46.11%. Employee cost increased from 15.40% to 16.79%. Other expenses rose from 23.50% to 23.60%.

PBIDT rose 10.65% to Rs 47.47 crore. Provision for interest rose 64.59% to Rs 8.18 crore.

PBDT rose 3.59% to Rs 39.29 crore. Provision for depreciation rose 48.03% to Rs 13.53 crore.

Profit before tax down 10.52% to Rs 25.76 crore. Share of profit/loss was 8.16% lower at Rs 0.9 crore. Provision for tax was expense of Rs 5.27 crore, compared to Rs 6.72 crore. Effective tax rate was 19.77% compared to 22.57%.

Minority interest was nil in both the periods. Net profit attributable to owners of the company decreased 7.20% to Rs 21.39 crore.

Promoters’ stake was 74.99% as of 30 June 2023 ,compared to 79.17% as of 30 June 2022.

Full year results analysis

Net sales (including other operating income) of Tega Industries has increased 27.55% to Rs 1213.97 crore. Sales of consumable segment has gone up 24% to Rs 1177.59 crore (accounting for 97% of total sales). Sales of equipment segment was Rs 36.76 crore (accounting for 3% of total sales).

Profit before interest, tax and other unallocable items (PBIT) rose 48% to Rs 270.59 crore. PBIT of consumable segment rose 44% to Rs 263.07 crore (accounting for 97% of total PBIT). PBIT of equipment segment stood at Rs 7.52 crore (accounting for 3% of total PBIT).

PBIT margin of consumable segment rose from 19.2% to 22.3%. PBIT margin of equipment segment was 20.5%. Overall PBIT margin rose from 19.2% to 22.3%.

Operating profit margin has jumped from 19.21% to 22.28%, leading to 47.89% rise in operating profit to Rs 270.42 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 42.36% to 43.53%. Employee cost decreased from 15.05% to 13.39%. Other expenses fell from 23.39% to 20.84%.

Other income fell 14.55% to Rs 20.68 crore. PBIDT rose 40.59% to Rs 291.1 crore. Provision for interest rose 11.85% to Rs 18.12 crore. Loan funds rose to Rs 360.87 crore as of 31 March 2023 from Rs 245.17 crore as of 31 March 2022. Inventories rose to Rs 289.59 crore as of 31 March 2023 from Rs 252.14 crore as of 31 March 2022. Sundry debtors were higher at Rs 403.13 crore as of 31 March 2023 compared to Rs 276.52 crore as of 31 March 2022. Cash and bank balance rose to Rs 49.30 crore as of 31 March 2023 from Rs 40.20 crore as of 31 March 2022. Investments rose to Rs 216.87 crore as of 31 March 2023 from Rs 198.53 crore as of 31 March 2022 .

PBDT rose 43.03% to Rs 272.98 crore. Provision for depreciation rose 6.46% to Rs 41.2 crore. Fixed assets increased to Rs 494.04 crore as of 31 March 2023 from Rs 243.98 crore as of 31 March 2022. Intangible assets increased from Rs 64.49 crore to Rs 66.18 crore.

Profit before tax grew 52.34% to Rs 231.78 crore. Share of profit/loss was 53.19% higher at Rs 4.32 crore. Provision for tax was expense of Rs 52.07 crore, compared to Rs 38.07 crore. Effective tax rate was 22.05% compared to 24.57%.

Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 57.43% to Rs 184.03 crore.

Equity capital increased from Rs 66.29 crore as of 31 March 2022 to Rs 66.35 crore as of 31 March 2023. Per share face Value remained same at Rs 10.00.

Promoters’ stake was 79.10% as of 31 March 2023 ,compared to 79.17% as of 31 March 2022. .

The scrip is currently trading at Rs 899

Tega Industries : Consolidated Results
Particulars	2306 (03)	2206 (03)	Var.(%)	2303 (12)	2203 (12)	Var.(%)
Net Sales	268.07	244.45	10	1213.97	951.76	28
OPM (%)	14.7	18.9		22.3	19.2
OP	39.34	46.18	-15	270.42	182.85	48
Other Inc.	8.13	-3.28	-348	20.68	24.2	-15
PBIDT	47.47	42.9	11	291.1	207.05	41
Interest	8.18	4.97	65	18.12	16.2	12
PBDT	39.29	37.93	4	272.98	190.85	43
Depreciation	13.53	9.14	48	41.2	38.7	6
PBT	25.76	28.79	-11	231.78	152.15	52
Share of Profit/(Loss) from Associates	0.9	0.98	-8	4.32	2.82	53
PBT before EO	26.66	29.77	-10	236.1	154.97	52
EO Income	0	0		0	0
PBT after EO	26.66	29.77		236.1	154.97
Taxation	5.27	6.72	-22	52.07	38.07	37
PAT	21.39	23.05	-7	184.03	116.9	57
Minority Interest (MI)	0	0		0	0
Net profit	21.39	23.05	-7	184.03	116.9	57
EPS (Rs)*	#	#		27.7	17.6
Notes
* EPS is on current equity of Rs 66.29 crore, Face value of Rs 10, Excluding extraordinary items.
# EPS is not annualised
bps : Basis points
EO : Extraordinary items
Figures in Rs crore
Source: Capitaline Corporate Database

Tega Industries : Consolidated Segment Results
	% of (Total)	2306 (03)	2206 (03)	Var.(%)	% of (Total)	2303 (12)	2203 (12)	Var.(%)
Sales
Consumables	83	223.96	244.45	-8	97	1177.59	951.76	24
Equipments	17	44.32	0.00		3	36.76	0.00
Total Reported Sales	100	268.28	244.45	10	100	1214.35	951.76	28
Less: Inter segment revenues		0.21	0.00	-		0.38	0.00	-
Net Sales		268.07	244.45	10		1213.97	951.76	28
PBIT
Consumables	90	35.50	46.18	-23	97	263.07	182.86	44
Equipments	10	3.88	0.00	28	3	7.52	0.00	28
Total PBIT	100	39.38	46.18	-15	100	270.59	182.86	48
Less : Interest		8.18	4.97	65		18.12	16.20	12
Add: Other un-allcoable		-4.54	-11.44	-60		-16.38	-11.68	40
PBT		26.66	29.77	-10		236.10	154.97	52

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