Mayur Uniquoters: Q1FY15 Result Analysis

Mayur Uniquoters announced its financial results for the quarter ended June 2014 and the revenue for the company in the first quarter rose by 17% to Rs 124.6 crore from Rs 106.3 crore in the same quarter last year. 

EBITDA of the company went up by 17.2% on y-o-y basis to Rs 24.35 crore and EBITDA margin was maintained at 20.04% for Q1FY15. However, the other expenses included exchange rate fluctuation gain of Rs 0.49 crore against loss of Rs 0.89 crore in the corresponding quarter of last year.

Mayur Uniquoters saw its profit after tax jumping by 30.5% on y-o-y basis to Rs 14.98 crore against Rs 11.48 crore. This was helped by better sales growth, and lower financial cost of Rs 0.70 crore as compared to Rs 2.23 crore in the corresponding quarter last year. The financial cost included exchange rate fluctuation gain of Rs 0.06 crore against loss of Rs 1.67 crore in the corresponding quarter last year.

Mayur Uniquoters has allotted 14,86,000 compulsory convertible participating preference shares (CCPPS) to Westbridge crossover fund, LLC with face value of Rs 400 each at a price of Rs 471.06 including a premium of Rs 71.06 on April 18, 2014. Each CCPPS will be convertible into 2 equity shares of face value of Rs 5 each at the price of Rs 235.53 including a premium of Rs 230.53 per equity share.

Company declared first interim dividend of Rs 0.70 per equity share of Rs 5 each. Ex-dividend date will be August 19, 2014. The Board considered and approved the opening of the wholly owned subsidiary in US.

The stock looks weak for the next few sessions, but it's an accumulation opportunity for long term investors.