Sintex surprises street, Q2 net profit up 0.7% at Rs 73 cr

Moneycontrol Bureau

Sintex Industries, the manufacturer of plastic products, surprised the street on every parameter with the second quarter (July-September) net profit growing 0.7 percent year-on-year to Rs 72.9 crore on strong revenues.

Consolidated total income surged 13.8 percent to Rs 1,365 crore in September quarter from Rs 1,199 crore in a year ago period, supported by strong growth in its prefabricated building systems, monolithic and custom moulding businesses.

A CNBC-TV18 poll had estimated that net profit may fall 8.7 percent to Rs 66.1 crore and revenues may rise 3.5 percent to Rs 1,240 crore.

Consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) rose 15.8% on yearly basis to Rs 212 crore in the quarter gone by and EBITDA margin increased 20 basis points Y-o-Y to 15.5 percent as against analysts' expectations of Rs 180 crore and 14.5 percent, respectively.

Other income of the company declined significantly to Rs 0.51 crore during the quarter from Rs 6.4 crore in a year ago period.

Revenues from its prefabricated building systems business rose 31 percent year-on-year to Rs 303.1 crore and monolithic business grew 8.7 percent on yearly basis to Rs 263.3 crore in September quarter.

In case of custom moulding segment, overseas revenues (which is largely centred in Europe) surged 21.65 percent Y-o-Y to Rs 352.9 crore while domestic revenues declined to Rs 235.1 crore from Rs 243.8 crore year-on-year.

Shares of Sintex rallied 5 percent to Rs 27 amid large volumes on the Bombay Stock Exchange.