NESCO Announces Quarterly Results (1QFY22); Net Profit Down 17.5%

Mon, 16 Aug

NESCO has announced its results for the quarter ended June 2021. Here is a detailed performance review of the same:

NESCO Quarterly Financials

No. of Mths Qtr. Ending		3 Jun-20*	3 Mar-21*	3 Jun-21*	QoQ Change	YoY Change
Net Sales	Rs m	693	751	727	-3.2%	4.8%
Other income	Rs m	220	105	131	25.2%	-40.5%
Turnover	Rs m	914	855	858	0.3%	-6.1%
Expenses	Rs m	197	275	269	-2.2%	36.9%
Gross profit	Rs m	497	475	458	-3.7%	-7.9%
Depreciation	Rs m	65	62	65	4.4%	-0.7%
Interest	Rs m	14	28	19	-31.0%	33.2%
Profit before tax	Rs m	638	490	505	3.0%	-20.8%
Tax	Rs m	124	93	81	-12.7%	-34.7%
Profit after tax	Rs m	513	397	424	6.6%	-17.5%
Gross profit margin	%	71.6	63.3	63.0
Effective tax rate	%	19.5	19.0	16.1
Net profit margin	%	56.2	46.4	49.4

Year-on-Year Performance:

• The company's operating income during the quarter grew 4.8% on a year-on-year (YoY) basis. The expenses were up by 36.9% YoY during the same period.
• The company's operating profit declined by 7.9% YoY during the quarter. Consequently, operating profit margins witnessed a decline and stood at 63.0% in 1QFY22 as against 71.6% in 1QFY21.
• Depreciation charges declined by 0.7% and finance costs increased by 33.2% YoY, respectively.
• Other income declined by 40.5% YoY during the quarter.
• Net profit for the quarter declined by 17.5% YoY. Net profit margins during the quarter declined from 56.2% in 1QFY21 to 49.4% in 1QFY22.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter fell 3.2% on a quarter-on-quarter (QoQ) basis. The expenses were down by 2.2% QoQ during the same period.
• The company's operating profit declined by 3.7% QoQ during the quarter. Consequently, operating profit margins witnessed a decline and stood at 63.0% in 1QFY22 as against 63.3% in 4QFY21.
• Net profit for the quarter increased by 6.6% QoQ, while net profit margins increased from 46.4% in 4QFY21 to 49.4% in 1QFY22.

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

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NESCO Share Price Performance

Over the last one year, NESCO share price has moved up from Rs 517.8 to Rs 591.5, registering a Gain of Rs 73.7 or around 14.2%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 3,147.8 (up 0.0%). Over the last one year it has moved up from 1,629.1 to 3,147.8, a gain of 1,519 points (up 93.2%).

Overall, the S&P BSE SENSEX is up 45.0% over the year.

Current Valuations

At the current price of Rs 591.5, the price to earnings (P/E) ratio of NESCO stands at 25.5 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 2.7 times.