FOSECO INDIA Announces Quarterly Results (2QFY21); Net Profit Down 50.3%

Wed, 28 Oct

FOSECO INDIA has announced its results for the quarter ended September 2020. Here is a detailed performance review of the same:

FOSECO INDIA Quarterly Financials

No. of Mths Qtr. Ending		3 Sep-19*	3 Jun-20*	3 Sep-20*	QoQ Change	YoY Change
Net Sales	Rs m	787	277	689	149.3%	-12.4%
Other income	Rs m	22	23	9	-60.9%	-59.1%
Turnover	Rs m	809	299	698	133.3%	-13.7%
Expenses	Rs m	676	323	614	90.0%	-9.2%
Gross profit	Rs m	111	-46	76		-31.7%
Depreciation	Rs m	11	15	16	8.6%	44.5%
Interest	Rs m	0	0	0	0.0%	0.0%
Profit before tax	Rs m	122	-38	69		-43.4%
Tax	Rs m	20	-9	18		-8.4%
Profit after tax	Rs m	102	-29	51		-50.3%
Gross profit margin	%	14.1	-16.8	11.0
Effective tax rate	%	16.3	23.2	26.4
Net profit margin	%	12.6	-9.8	7.3

Year-on-Year Performance:

• The company's operating income during the quarter fell 12.4% on a year-on-year (YoY) basis. The expenses were down by 9.2% YoY during the same period.
• The company's operating profit declined by 31.7% YoY during the quarter. Consequently, operating profit margins witnessed a decline and stood at 11.0% in 2QFY21 as against 14.1% in 2QFY20.
• Depreciation charges increased by 44.5% and finance costs increased by 0.0% YoY, respectively.
• Other income declined by 59.1% YoY during the quarter.
• Net profit for the quarter declined by 50.3% YoY. Net profit margins during the quarter declined from 12.6% in 2QFY20 to 7.3% in 2QFY21.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter grew 149.3% on a quarter-on-quarter (QoQ) basis. The expenses were up by 90.0% QoQ during the same period.
• The company's operating profit declined by 263.7% QoQ during the quarter. Consequently, operating profit margins witnessed a growth and stood at 11.0% in 2QFY21 as against 16.8% in 1QFY20.
• Net profit for the quarter increased by 273.8% QoQ, while net profit margins increased from -9.7% in 1QFY20 to 7.3% in 2QFY21.

To see how FOSECO INDIA has performed over the last eight quarters,please visit here.

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FOSECO INDIA Share Price Performance

Over the last one year, FOSECO INDIA share price has moved down from Rs 1,366.6 to Rs 1,195.0, registering a Loss of Rs 171.6 or around 12.6%.

Overall, the S&P BSE SENSEX is up 2.9% over the year.

Current Valuations

At the current price of Rs 1,195.0, the price to earnings (P/E) ratio of FOSECO INDIA stands at 52.1 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 5.2 times.