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In the quarter ended June 10, Elantas Beck India - Electrical Insulations systems and specialty chemicals manufacturer, registered flat net profit growth of 1% to Rs 8.39 crore on weak operating performance and high depreciation cost. The operating income grew by 28% to Rs 62.63 crore backed by both segments. However crash in OPM by 550 bps reduced the operating profit by 1% to Rs 11.78 crore. Further with rise in depreciation cost and fall in other income, the PBT slipped by 5% to Rs 11.65 crore. As a boon, fall in effective tax rate lifted the net profit.
Quarter Performance
The company's operating income grew by 28% to Rs 62.63 crore on account of growth in both the segments especially the Engineering & Electronic Resins and Materials (EERM). The sales of EERM grew by impressive 84% to Rs 12.58 crore though contributing only 20% to total sales. The sales of electrical insulations (electrical) grew by 19% to Rs 50.38 crore. The operating profit margin (OPM) slipped by 550 bps to 18.8% dragging down the operating profit by flat 1% to Rs 11.78 crore. In terms of cost, as % to sales net stock adjusted, the raw material cost grew by 360 bps to 57%. Also the staff cost and purchase of traded goods increased by 300 bps to 9% and 10 bps to 1% respectively. Only the other expenditure slipped by 20 bps to 14%.
Segmentwise, the PBIT margin of electrical reduced by 560 bps to 20% resulting in degrowth of 7% in its PBIT to Rs 9.91 crore. Also the EERM's PBIT margin slipped by 220 bps to 11% limiting the growth in its PBIT, though, to robust 53% to Rs 1.37 crore.
The company's PBT reduced by 5% to Rs 11.65 crore on fall in other income and increase in depreciation cost. The other income crashed by 13% to Rs 1.03 crore while the depreciation cost grew by notable 40% to Rs 1.16 crore. As a boon, crash in effective tax rate by 400 bps lifted the net profit though by flat 1% to Rs 8.39 crore.
Half Year Performance
In the half year ended June 2010, the topline grew by healthy 35% to Rs 123.43 crore backed by both segments. The sales of EERM grew by whopping 82% to Rs 26.07 crore while the electrical rose by 26% to Rs 97.82 crore. Downfall in OPM by 130 bps to 20.5% limited the growth in operating profit to 26% to Rs 25.26 crore. Segmentwise, the PBIT margin of electrical slipped by 210 bps to 21% constraining growth in its PBIT to 14% to Rs 20.07 crore. On the other hand, the PBIT margin of EERM grew by 290 bps to 15% lifting its PBIT by whopping 125% to Rs 3.95 crore. Fall in other income and rise in depreciation cost limited the PBT growth to 21% to Rs 25.16 crore. Nevertheless, fall in effective tax rate by 120 bps boosted the net profit by 23% to Rs 17.48 crore.
The promoters' share in the total shareholding remains unchanged at 88.55% in June 10 quarter. The promoters' have pledged ‘nil' shares of the company.
Currently the scrip is trading at Rs 696.80 on BSE.
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