ESAB INDIA Announces Quarterly Results (1QFY22); Net Profit Up 183.8%

Mon, 16 Aug

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

ESAB INDIA Quarterly Financials

No. of Mths Qtr. Ending		3 Jun-20*	3 Mar-21*	3 Jun-21*	QoQ Change	YoY Change
Net Sales	Rs m	1,243	2,070	1,812	-12.5%	45.7%
Other income	Rs m	30	15	20	32.4%	-34.4%
Turnover	Rs m	1,273	2,085	1,831	-12.1%	43.9%
Expenses	Rs m	1,145	1,782	1,531	-14.1%	33.7%
Gross profit	Rs m	98	288	281	-2.2%	186.3%
Depreciation	Rs m	31	28	28	1.1%	-10.9%
Interest	Rs m	1	1	1	11.1%	-16.7%
Profit before tax	Rs m	96	274	272	-0.7%	184.3%
Tax	Rs m	24	77	68	-10.8%	185.8%
Profit after tax	Rs m	72	197	204	3.2%	183.8%
Gross profit margin	%	7.9	13.9	15.5
Effective tax rate	%	25.0	28.0	25.1
Net profit margin	%	5.6	9.5	11.1

Year-on-Year Performance:

• The company's operating income during the quarter grew 45.7% on a year-on-year (YoY) basis. The expenses were up by 33.7% YoY during the same period.
• The company's operating profit increased by 186.3% YoY during the quarter. Consequently, operating profit margins witnessed a growth and stood at 15.5% in 1QFY22 as against 7.9% in 1QFY21.
• Depreciation charges declined by 10.9% and finance costs declined by 16.7% YoY, respectively.
• Other income declined by 34.4% YoY during the quarter.
• Net profit for the quarter increased by 183.8% YoY. Net profit margins during the quarter increased from 5.6% in 1QFY21 to 11.1% in 1QFY22.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter fell 12.5% on a quarter-on-quarter (QoQ) basis. The expenses were down by 14.1% QoQ during the same period.
• The company's operating profit declined by 2.2% QoQ during the quarter. Consequently, operating profit margins witnessed a growth and stood at 15.5% in 1QFY22 as against 13.9% in 4QFY21.
• Net profit for the quarter increased by 3.2% QoQ, while net profit margins increased from 9.4% in 4QFY21 to 11.1% in 1QFY22.

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

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ESAB INDIA Share Price Performance

Over the last one year, ESAB INDIA share price has moved up from Rs 1,368.0 to Rs 1,929.7, registering a Gain of Rs 561.7 or around 41.1%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 24,137.5 (down 0.7%). Over the last one year it has moved up from 13,777.8 to 24,137.5, a gain of 10,360 points (up 75.2%).

Overall, the S&P BSE SENSEX is up 44.8% over the year.

Current Valuations

At the current price of Rs 1,929.7, the price to earnings (P/E) ratio of ESAB INDIA stands at 41.0 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 11.5 times.