For the March 11 quarter, Igarashi Motors India – an auto component manufacturer, reported whopping 73% crash in net profit to Rs 1.17 crore on weak operating performance and unsupportive non operating side. The topline grew by 16% to Rs 52.21 crore. Increase in overall costs especially raw material costs led to 860 bps fall in operating profit margin (OPM) thus pulling down the operating profit by 31% to Rs 6.59 crore.
Quarterly Performance
The operating income grew by 16% to Rs 52.21 crore in March 2011 quarter. OPM fell by whopping 860 bps to 12.6% on increase in overall costs. Thus the operating profit declined by 31% to Rs 6.59 crore. Raw material cost, as % to sales net stock adjusted, grew by 260 bps to 60%. Also the other expenditure increased by 320 bps to 15%. The cost of traded goods and staff cost grew by 150 bps to 7% and 140 bps to 6% respectively.
The PBT crashed by 72% to Rs 1.47 crore on high non operating expenses. The interest cost grew by whopping 69% to Rs 2.53 crore and depreciation cost increased by 65% to Rs 2.66 crore. Further increase in effective tax rate by 270 bps pulled down the net profit by whopping 73% to Rs 1.17 crore.
Annual Performance
In FY 11, the topline grew by 24% to Rs 197.21 crore. Increase in OPM by 230 bps to 13.8% lifted the operating profit by robust 50% to Rs 27.23 crore. Marginal growth in interest cost (by 17% to Rs 9.89 crore) and depreciation cost (by 63% to Rs 10.53 crore) enabled whopping 88% growth in PBT to Rs 7.07 crore. The net profit was boosted by significant 178% to Rs 7.58 crore courtesy tax write back (against tax provision in FY 10).
During the year, the company has amortised proportionate employee stock based compensation expenses amounting to Rs.8, 189,671/- which has been included has been included in staff expenses.
The promoters' shareholding increased to 62.94% in March 2011 from 59.99% for the quarter ended Dec 10. None of the shares' held by promoters are pledged.
The Scrip is hovering at Rs 52 on BSE.
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