Results     31-Jul-09
Analysis
Jai Corp
Drop in other income pulls down bottom line
Related Tables
 Jai Corp: Results
 Jai Corp: Segmented Results
The company's sales for the quarter ended June 09 has increased by 2% to Rs 107.89 crore due good performance by steel business. Other income of the company has declined by 68% to Rs 5.11 crore. The OPM of the company has decreased by 191 basis points to 11.4%. The net profit of the company declined by 57% to Rs 9.13 crore due to fall in other income.

Company's Performance

Quarter ended June 09

The company's sales for the quarter ended June 09 has increased by 2% to Rs 107.89 crore. The OPM of the company has decreased by 191 basis points to 11.4% due to increase in raw material cost by 2260 basis points to 70% and staff cost by 50 basis points to 6% of adjusted net sales. There was decline in purchase of traded goods 210 basis points to 0% and other expenditure by 90 basis points to 11% of adjusted net sales. As a result of decrease in margin, there was a decline in operating profit of 13% to Rs 12.33 crore.

Other income of the company has declined by 68% to Rs 5.11 crore. Interest paid by the company has decreased by 38% to Rs 0.69 crore. Depreciation has also decreased by 4% to Rs 3.82 crore. Due to decline in margin and other income, profit before tax has declined by 48% to Rs 12.93 crore.

Total tax outgo has increased by just 1% to Rs 3.80 crore. The net profit of the company declined by 57% to Rs 9.13 crore due to fall in other income.

For year ended March 09

For the year ended March 2009, the income from operations reported 21% growth at Rs 385.85 crore. OPM improved 420 basis points to 15.5%. As a % of sales, consumption of raw materials increased 920 basis points at 49.5%, purchase of traded goods dipped 1020 basis points at 17%, employee costs was stable at 6% and other expenses dipped 470 basis points at 11.6%. The resultant operating profits grew 65% at Rs 59.90 crore.

Other income dipped 98% at Rs 1.82 crore which includes loss on sale of investments of Rs 41.45 crore against profit of Rs 85 crore in the previous year. The resultant PBIDT dipped 60% at Rs 61.72 crore. Interest cost declined 21% at Rs 4.64 crore and depreciation charge increased 3% at Rs 15.32 crore. The resultant PBT dipped 69% at Rs 41.76 crore. After accounting higher taxation of Rs 14.29 crore up 162%, the net profit declined 79% to Rs 27.47 crore. The reported PAT after prior period tax write back of Rs 77 lakh was down 78% at Rs 28.24 crore.

Segmented Result

Steel

The steel business contributed 35% to the revenue of the company for the quarter ended June 2009. Net sales grew by 58% to Rs 38.73 crore. Profit before interest and tax (PBIT) margins grew by 341 basis points to 7.28%. PBIT of the company increased by 197% to Rs 2.82 crore. The segment accounted for 29% of company's total PBIT.

For the year ended March 2009, steel business contributed 19% to the revenue of the company. Net sales declined by 49% to Rs 76.65 crore. PBIT margin has inclined by 384 basis points to 8.47%. Despite it, the PBIT of the company decreased by 7% to Rs 6.49 crore. The segment accounted for 13% of company's total PBIT.

Plastic Processing

The plastic processing business contributed 55% to the revenue of the company for the quarter ended June 2009. Net sales declined by 11% to Rs 61.02 crore. Profit before interest and tax (PBIT) margins decreased by 525 basis points to 13.08%. As a result, PBIT of the company decreased by 36% to Rs 7.98 crore. The segment accounted for 83% of company's total PBIT.

For the year ended March 2009, plastic processing business contributed 67% to the revenue of the company. Net sales inclined by 73% to Rs 263.28 crore. PBIT margin has inclined by 231basis points to 17.52%. As a result, the PBIT of the company increased by 99% to Rs 46.13 crore. The segment accounted for 92% of company's total PBIT.

Spinning

The spinning business contributed 11% to the revenue of the company for the quarter ended June 2009. Net sales declined by 10% to Rs 11.95 crore. Profit before interest and tax (PBIT) margins was negative and stood at 10.04%. As such, loss before interest and tax stood at Rs 1.20 crore.

For the year ended March 2009, the spinning business contributed 14% to the revenue of the company. Net sales inclined by 131% to Rs 55.13 crore. Profit before interest and tax (PBIT) margins was negative and stood at 4.88%. As such, loss before interest and tax stood at Rs 2.69 crore.

Valuation

The scrip closed at Rs 229.05 on 30th July 2009 at BSE.

The promoters holding in the company stood at 72.99%.

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