Suprajit Engineering ended FY 13 on a steady note. The company reported 18% growth in consolidated net profit to Rs 47.12 crore aided by good operating performance though moderated somewhat by lower other income and higher tax provision. The consolidated topline grew by a moderate 9% to Rs 462.53 crore. The performance of the company in Q4 was also somewhat steady except for the fact that margins faced some pressure in Q4 FY 13 and rise in profit was entirely attributable to rise in other income.
Quarter Performance
The consolidated operating income grew by 10% to Rs 123.28 crore for fourth quarter ended March 2013. However substantial rise in other expenses (% to sales, net of stock) costs led to 30 bps drop in OPM to 16.6% thereby pulling up the operating profit by just 8% to Rs 20.4 crore. Raw material costs, as % to sales net stock adjusted, decreased by 260 bps to 63.3%. Other expenses galloped 320 bps to 10%. On the other hand, staff cost was up by 20 bps at 10.8%.
Helped by a big rise in other income to Rs 1.86 crore (against Rs 18 lakh in previous corresponding quarter), operating income jumped by 16% to Rs 22.3 crore. Interest and depreciation charges rose by 9% and 25% respectively to Rs 2.269 crore and Rs 2.29 crore. Post this, PBT grew by 17% to Rs 17.32 crore. However 670 bps rise in tax rate lifted the net profit by just 6% to Rs 11.74 crore.
Annual Performance
For the year ended March 2013, the consolidated topline grew by 9% to Rs 462.53 crore. The OPM grew by 50 bps to 16.7% on lower raw material costs. Thus the operating profit grew by 12% to Rs 77.2 crore. Raw material costs, as % to sales net stock adjusted, decreased by 230 bps to 63% during the year.
Decline in other income (by 5%) and higher interest and depreciation cost limited the growth in PBT before EO to 13% to Rs 61.64 crore. Interest and depreciation charges rose by 12% each. However earning EO income of Rs 5.18 crore (nil in FY12) led to robust 22% growth in the PBT after EO to Rs 66.82 crore. The EO income represents profit on sale of land and building in Q1FY13. The consolidated net profit settled with 18% growth at Rs 47.1 crore after a 215 bps rise in tax rate. Tax provision rose by 32% to Rs 19.7 crore.
The promoters' shareholding stands unchanged at 51.84% on 31st March 2013 quarter. The promoters' have pledged nil shares of the company.
The scrip is trading around Rs 34, at BSE on 27 May 2013.