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The company’s net sales for the quarter ended September 2008 increased by 43% to Rs 63.53 crore. The exports revenue contribution was 64%. The exports to Africa contribute 95% of export revenue while remaining came from Europe, UK, US. During the quarter, the company has signed additional contracts worth $ 2 millions with Pearson and $ 4 million with Longman. The company’s order book for Q3 is also firming up.
The operating profit margin (OPM) of the company increased 29 basis points to 17% due to decrease in staff cost. The company has reported net profit of Rs 4.26 crore, a growth of just 9% due to notional loss of Rs 2.10 crore on account of forex. Profit before forex loss and tax has increased 60% to Rs 7.52 crore.
Net sales for the half year ended September 2008 increased by 35% to Rs 109.90 crore. OPM of the company inclined by 123 basis points to 18% due to decrease in staff cost and other expenditure. The company had reported net profit of Rs 9.41 crore, a growth of just 36% due to notion loss on account of forex. PBT before forex loss is up 71% to Rs 14.15 crore.
Commenting on the Q1 FY09 performance Mr. Mukesh Dhruve, Director, Repro India Limited said, "There is unprecedented demand for educational books especially in the African continent. Our low cost – high quality model has helped us in establishing relationship with our customers. As a result to this, we hope to continue our strong growth and add fresh contracts"
Company’s Performance
For quarter ended September 08
The company’s net sales for the quarter ended September 2008 increased by 43% to Rs 63.53 crore. The exports revenue contribution was 64%. The exports to Africa contribute 95% of total export revenue while remaining came from Europe, UK, US. During the quarter, the company has signed additional contracts worth $ 2 millions with Pearson and $ 4 million with Longman. The company’s order book for Q3 is also firming up.
OPM of the company increased by just 29 basis points to 17%. This is due to decrease in staff cost by 24 basis points to 7% of adjusted net sales. However, raw material cost inclined by 110 basis points to 57% and other expenditure by 40 basis points to 20% of adjusted net sales. As a result of it, the operating profit of the company inclined by 46% to Rs 10.81 crore.
Other income of the company inclined by huge 561% to Rs 0.21 crore. This has resulted into increase in profit before interest, depreciation and tax by 48% to Rs 11.02 crore. Interest paid by the company during the quarter increased by 45% to Rs 1.69 crore while depreciation has increased by 14% to Rs 1.81 crore. As a result, the profit before tax before forex increased by 60% to Rs 7.52 crore.
The company for the quarter had Rs 2.10 crore of notional loss on account of foreign exchange fluctuation on borrowings for capital work in progress. As a result, the company’s profit before tax after forex loss has increased by just 16% to Rs 5.42 crore. Tax outgo has increased by 46% to Rs 1.17 crore. The company had shown reported net profit of Rs 4.26 crore, an growth of just 9% due to notion loss on account of forex.
For the half year ended September 08
Net sales for the half year ended September 2008 increased by 35% to Rs 109.90 crore. OPM of the company inclined by 123 basis points to 18% due to decrease in staff cost by 21 basis points to 8% and other expenditure by 14 basis points to 20% of adjusted net sales. However, raw material cost has increased by 33 basis points to 55% of adjusted net sales. As a result, the operating profit of the company inclined by 45% to Rs 19.76 crore.
Other income of the company increased by huge 533% to Rs 0.36 crore leading to an increase of 47% in the PBIDT to Rs 20.12 crore. Interest cost and depreciation each has increased by 12% to Rs 2.54 crore and Rs 3.44 crore. The profit before tax before forex has increased by 71% to Rs 14.15 crore.
The company for the second quarter had Rs 2.10 crore of notional loss on account of foreign exchange fluctuation on borrowings for capital work in progress. As a result, the company’s profit before tax after forex loss has increased by just 45% to Rs 12.05 crore. Total tax outgo decreased by 91% to Rs 2.64 crore. The company had shown reported net profit of Rs 9.41 crore, a growth of just 36% due to notional loss on account of forex.
Other Developments
The company’s Surat SEZ began its operations and the first consignment was delivered in August 2008. The company’s first phase of project implementation will end by Q3 and commercial production will start from Q4.
Valuation
The scrip closed at Rs 95.30 at BSE on 13th October 2008.
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