La Opala RG: Q4FY14 Result Analysis

La Opala RG has posted strong set of numbers for the quarter and year ended 31 March, 2014. The company's topline recorded a double digit growth of 22.3% and stood at Rs 49 crore in Q4FY14 against Rs 40 crore in Q4FY13. EBITDA of the company grew by 18% to Rs 13.8 crore in Q4FY14 against Rs 11.6 crore in same period last year.

Moreover, bottomline of the company grew by 35% to Rs 8.5 crore during Q4FY14 against Rs 6.3 crore in the same period last year. This was due to the increase in total revenue, decrease in finance cost and cost optimization by the company. Material cost for the company showed a considerable improvement during the year and came down to 21% of total revenue from 26 % in same period last year. Further, fuel & power expense also showed improvement and reached 14.7% of total revenue against 16.8% in Q4FY13. However employee cost remains constant during the year at 13% of total revenue during the said period. Finance cost dropped by 60% to Rs 0.4 crore in the said period.

Cost optimization has resulted in better profitability margin for the company as its net profit margin during the said quarter reached to 17% from 15% in the same period last year.

Coming to annualized performance, topline of the company went up by 15.5% to Rs 177 in FY14 against Rs 153 crore in FY13. Further, operating profit also recorded a decent growth of 20.4% and reached Rs 42 crore against Rs 35.6 crore in the same period last year. Moreover bottomline surged by 31% to Rs 30 crore in FY14 against Rs 23 crore in FY13.

At CMP of Rs. 882.65 per share , the stock is trading at 31x of its trailing 12-months earning