Results     29-Jan-10
Analysis
Jai Corp
Fall in other income impacts net profit
Related Tables
 Jai Corp: Results
 Jai Corp: Segmented Results
The company's sales for the quarter ended December 09 has increased by 16% to Rs 97.83 crore due to good growth in plastic processing and spinning business. The OPM of the company has increased by 41 basis points to 15.9% due to decline in purchase of traded goods. Other income of the company has declined by 32% to Rs 9.07 crore. As a result, the net profit of the company inclined by just 5% to Rs 15.59 crore.

For the nine months ended December 2009, the income from operations reported 5% de-growth at Rs 299.16 crore. OPM inclined by 6 basis points to 14.4% due to fall in purchase of traded goods. The PAT was down 21% at Rs 43.17 crore due to overall poor performance.

Company's Performance

Quarter ended December 09

The company's sales for the quarter ended December 09 has increased by 16% to Rs 97.83 crore due to good growth in plastic processing and spinning business. The OPM of the company has increased by 41 basis points to 15.9% due to decline in purchase of traded goods. However there was increase in raw material cost by 2070 basis points to 63%, other expenditure by 70 basis points to 13% and staff cost by 100 basis points to 8% of adjusted net sales. As a result, the operating profit of the company increased by 19% to Rs 15.59 crore.

Other income of the company has declined by 32% to Rs 9.07 crore. Interest paid by the company has decreased by 57% to Rs 0.61 crore. Depreciation has increased by 3% to Rs 4.02 crore. The profit before tax has declined by 5% to Rs 20.03 crore due to fall in other income.

Total tax outgo has decreased by 29% to Rs 4.44 crore. Due to fall in tax, the net profit of the company inclined by 5% to Rs 15.59 crore.

For nine months ended December 09

For the nine months ended December 2009, the income from operations reported 5% de-growth at Rs 299.16 crore. OPM inclined by 6 basis points to 14.4% due to fall in purchase of traded goods. As a % of net adjusted sales, consumption of raw materials increased 1890 basis points at 66%, employee costs was increased by 130 basis points to 7% and other expenses increased by 80 basis points at 13%. The resultant operating profits has declined by 4% at Rs 43.09 crore.

Other income dipped 33% at Rs 26.67 crore. Interest cost declined 48% at Rs 1.97 crore while depreciation charge increased by 1% at Rs 11.98 crore. The resultant PBT dipped 19% at Rs 55.81 crore. Tax outgo has decreased by 12% to Rs 12.64 crore. The PAT was down 21% at Rs 43.17 crore due to overall poor performance.

Segmented Result

Steel

The steel business contributed 7% to the revenue of the company for the quarter ended December 2009. Net sales declined by 67% to Rs 6.92 crore. Profit before interest and tax (PBIT) margins declined by 409 basis points to 4.05%. As a result, PBIT of the company decreased by 83% to Rs 0.28 crore. The segment accounted for 2% of company's total PBIT.

For the nine months ended December 2009, steel business contributed 16% to the revenue of the company. Net sales declined by 30% to Rs 50.09 crore. PBIT margin has inclined by 334 basis points to 10.04%. As a result, the PBIT of the company increased by 6% to Rs 5.03 crore. The segment accounted for 14% of company's total PBIT.

Plastic Processing

The plastic processing business contributed 74% to the revenue of the company for the quarter. Net sales inclined by 40% to Rs 74.50 crore. Profit before interest and tax (PBIT) margins decreased by 77 basis points to 15.56%. Despite it, PBIT of the company increased by 33% to Rs 11.59 crore. The segment accounted for 89% of company's total PBIT.

For the nine months ended December 2009, plastic processing business contributed 69% to the revenue of the company. Net sales inclined by 2% to Rs 212.87 crore. PBIT margin has declined by 345 basis points to 13.85%. As a result, the PBIT of the company decreased by 19% to Rs 29.49 crore. The segment accounted for 84% of company's total PBIT.

Spinning

The spinning business contributed 19% to the revenue of the company for the quarter. Net sales inclined by 59% to Rs 19.34 crore. Profit before interest and tax (PBIT) margins turned positive to 5.64%. As such, PBIT stood at Rs 1.09 crore.

For the nine months ended December 2009, the spinning business contributed 15% to the revenue of the company. Net sales inclined by 13% to Rs 45.27 crore. Profit before interest and tax (PBIT) margins turned positive to 0.95%. As such, there was a PBIT of Rs 0.43 crore.

Other Developments

1,50,00,000 1% Non-Cumulative, Non-Participating Redeemable Preference Shares of face value Re 1/-each were due for redemption on 25th November, 2009. As consented by the Preference Shareholders and subsequently by the Members of the Company at their 24' Annual General Meeting held on 23rd September. 2009, the tenure of these Shares has been extended by a period not exceeding two years from the date of roll over. All other terms and conditions of issue remain unchanged.

Valuation

The scrip was trading around Rs 296.05 on 28th January 2010 at BSE.

The promoters holding in the company stood at 72.99%.

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