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Munjal Auto Industries reported 113% risein net profit to Rs 8.32 crore on 8% rise in net sales to Rs 221.22 crore for second quarter ended September 2016.Marvellous performance at the operational level coupled with declining interest expense propelled the bottomline during the quarter. Sharp rise in tax provision pulled down the bottomline to some extent.
Quarter Performance
The OPM during the second quarter ended September 2016 improved by 290 bps at 7.3%. Raw material cost(as a % to sales, net of stock) fell 180 bps to 74.3%. Other expenses (% of sales net of stock) fellby 96 bps to 12%. Employee expenses fell 11 bps to 6.3%.
Thus the operating profitrose 80% to Rs 16.16crore. Other income decreased 59% at Rs 64 lakh. After 31% drop in interest charges to Rs 1.4crore and 6% rise in depreciation cost to Rs 4.3 crore, PBTrose 148% to Rs 11.1 crore. After almost five-fold risein tax provisionto Rs2.78 crore, net profit rose 113% higher at Rs 8.32 crore.
Six Month Performance
Topline for the first six months ended September 2016 was higher by 5% at Rs 445.66 crore. The OPM during the first six months rose 230 bps to 7% leading to 57% rise in operating profits to Rs 31.3 crore.Raw material cost (as a % to sales, net of stock) fell 110 bps to 75.3%. Other expenses (% of sales net of stock) fell by 100 bps to 11.5%. Employee expenses fell 10 bps to 6.1%.
Other income stood at Rs 1.48 crore, lower by 27%. After 27% drop in interest charges to Rs 2.96 crore and 6% rise in depreciation cost to Rs 8.49 crore, PBT rose 115% to Rs 21.31crore. After more than threefold rise in tax provisionto Rs4.89 crore, net profit rose 94% higher at Rs 16.42crore.
For the fiscal ended March 31, 2016, the company's net profit stood at Rs 20.08 crore, drop of 47% onstagnant net sales of Rs 885 crore.
Shares of Munjal Autoclosed 3% higher at Rs 108.6 after touching a high of Rs 114.5 earlier during the day on 7 November 2016, the next trading session after earnings were announced.
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