Lloyd Electric & Engineering Q411 net dips

Lloyd Electric & Engineering Ltd. is one of the leading OEM (Original Equipment Manufacturer) to almost all AC manufacturers in India. It came out with the Standalone Financial Results for the Quarter and Year ended March 31, 2011 on April 28, 2011.

Fourth Quarter review- For the fourth quarter ended Mar'11, net sales of the company reported at Rs. 219.68 crore that increased moderately by 18.01% as against Rs. 186.15 crore in the corresponding quarter last year.

In line with this, operating expenses increased by 18.85% to Rs. 196.86 crore mainly due to escalation in the raw material cost and employee expenses by 18.93% and 62.71% to Rs. 197.79 crore and Rs. 4.03 crore respectively.

The other expenses also increased by 21.13% to Rs. 4.96 crore. Thus, the operating profit increased proportionately by 11.26% to Rs. 22.82 crore from Rs. 20.51 crore. However, the operating profit margin (OPM) slid marginally by 63 basis points to 10.39% from 11.02%.

The net profit declined by 12.61% to Rs. 9.74 crore wherein Interest and Depreciation were among the key factors. While interest cost rose significantly by 66.62% to Rs. 6.95 crore, depreciation escalated by 20.8% to Rs. 3.69 crore. Consequently, the net profit margin (NPM) declined by 156 basis points to 4.43%.

Fiscal year review- For the fiscal year ended Mar'11, the net sales of the company increased moderately by 15.9% to Rs.787.6 crore from Rs. 679.53 crore in the corresponding period last year.

In the line, the operating expenses also escalated by 16.15% to Rs. 704.34 crore from Rs 606.41 crore on the back of significant increase in other expenses by 50.76% to Rs. 17.03 crore. However, raw material cost and employee expenses also grew by 18.9% and 40.32% to Rs.699.93 crore and Rs.10.87 crore respectively.

Due to the positive impact from stock adjustment to the tune of Rs.22.16 crore which kept the operating expenses from growing exponentially, the operating profit of the company inclined by 13.87 % to Rs.83.26 crore.

However, the OPM slid marginally by 19 basis points to 10.57% from 10.76% of the previous year. The other financial expenses such as Interest and Depreciation charges went up by 30.27% and 15.94% to Rs. 20.63 crore and Rs. 13.92 crore respectively, while the tax levied squeezed by 6.59% to Rs.10.18 crore.

After adjusting all the financial expenses, company managed to report a net profit of Rs. 38.53 crore, up 12.08% from Rs.34.38 crore in last financial year. The NPM, however, declined by 17 basis points to 4.89%.

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