Sintex Industries Sees Single Digit Profit Growth At 8.3% To Rs 162 Crore

Sintex Industries topline grew by 41.5% to Rs 1983 crore in Q4FY14 against Rs 1401 crore in Q4FY13. The company's topline grew during the said quarter on account of exponential growth in plastic segment and infrastructure segment.

Further operating profit also recorded exponential growth during the quarter and surged by 105% to Rs 275.7 crore in said quarter as compared with Rs 134 crore in same quarter of previous year. The main reason for this exponential growth was cost optimisation along with handsome growth in plastic and infrastructure segments of the company. Total expenditure of the company improved to 86.10% of total operating revenue in Q4FY14 from 90.4% of total operating revenue in same quarter of previous year.

However, bottomline of the company recorded only single digit growth and went up by 8.3% to Rs 162 crore in Q4FY14 against Rs 149.7 crore in Q4FY14, due to exponential growth in finance cost of the company. Finance cost for the company surged by 143% to Rs 106 crore in Q3FY14, where it was Rs 43.6 crore in Q4FY13. 

Coming at the segment wise performance, plastic segment of the company which contribute 70% of operating income grew by 13% to Rs 1400 crore in Q4FY14 against Rs 1238 crore in Q4FY14. Further infrastructure segment of the company which is contributing 22% of total operating income went up by1206% to Rs 430 crore in said quarter from Rs 32 crore in the same quarter of previous year. The textile segment of the company grew by 7.7% to Rs 153 crore in Q4FY14 as compared with Rs 129 crore in same quarter previous year.

Looking at the performance of the whole year, the company’s total revenue grew by 14.8% to Rs 5864.4 crore in FY'14 against Rs 5107.5 crore in FY'13. Operating profit of the company grew by 25.8% on yearly basis to Rs 709.4 crore in FY'14 against Rs 564 crore in immediate previous year. Further net profit of the company also recorded double digit growth and went up by 12.7% to Rs 364 crore during the year against Rs 323 crore in FY'13.

The stock at CMP of Rs 48.85 per share is trading at 4.12x of its trailing 12-months of its earning. We are maintaining positive outlook on the stock and advise to hold the counter for long term as the stock is likely to perform well in near future.