Manjushree Technopack: Q4FY14 Result Analysis

Manjushree Technopack, today announced its Q4 result for the fiscal year 2014. The result says that the company has posted a good set of financial figures during Q4FY14. The topline and the bottomline of the company rose by more than 19% and 73% respectively on yearly basis during the last quarter of FY14.

Manjushree Technopack has posted a total revenue of Rs 126 crore during Q4FY14 as against Rs 105.64 crore during the same quarter of previous year. The sales from the domestic market which contributes more than 90% of the total revenue has surged by more than 13% on yearly basis whereas the revenue from export has increased to Rs 11.35 crore, reporting a jump of more than 104% on yearly basis during Q4FY14. The increase in sales from the domestic as well as from the export has helped the company to post such a robust performance during this quarter.

The company has reported a operating profit or EBITDA of Rs 28.28 crore (excluding the other income), reporting a jump of more than 18% during the quarter ended 31 March, 2014 as compared to the corresponding quarter of previous year. The operating margin has remained under pressure during Q4FY14. The margin has reduced by 14 basis points on yearly basis to stand at 22.45% during Q4FY14. It remained under pressure due to increase in cost of raw material. The cost of raw material as proportionate to sales has surged by 909 basis points to 66.9% during the quarter ended March 2014 as compared to the same quarter of previous year.

The net profit of the company during this quarter stood at Rs 11.24 crore, up by 73% on yearly basis during Q4FY14. Other than increase in sales, the increase in other income (up by 829% to Rs 4.74 crore) has helped the company to post better profit during the last quarter of FY14 as compared to the same quarter of previous year. The net profit margin has increased by 277 basis points to reach 8.9% during Q4FY14 as compared to Q4FY13.

On sequential basis too, the performance of the company has remained well. The topline during this quarter rose by 18.5% on yearly basis. The operating profit margin during this quarter rose by 242 basis points as compared to Q3FY14. The net profit has surged by 230% on quarterly basis during Q4FY14.

The increasing debt and increase in inventory has remained the major concern for the company. The total debt (long term and short term borrowings) of the company has surged by more than 23% on yearly basis. The short term borrowings stood at Rs 117.5 crore (up by 44%) and long term borrowings stood at Rs 134.61 crore (up by 9.3%) making the debt to equity ratio to 1.7 for the fiscal year 2014. On the other side, the inventory of the company has increased by 126% on yearly basis to Rs 109.87 crore during fiscal year 2014.

The company has recommended a dividend of Rs 1 per share. The shares of the company are trading at a price to earnings (P/E) of 10.8x. The scrip of the company closed at Rs 231 on BSE today, up by 3.38% from its previous close.