Navneet Education’s profitability down in Q4FY16

Navneet Education announced its quarterly results on May 21. The company’s revenue increased by 0.41 per cent to Rs 184 crore in Q4FY16 as compared to same period in previous financial year. Its EBITDA declined by 26.36 per cent to Rs 24.31 crore in Q4FY16 on yearly basis. Navneet Education’s EBITDA margin contracted by 480 basis points to 13.20 per cent in Q4FY16 as compared to previous fiscal year. The company’s PAT also reduced by 22.49 per cent to Rs 12.13 crore in Q4FY16 on yearly basis. Its PAT margin contracted by 194 basis points to 6.59 per cent in Q4FY16 as compared to same period in previous financial year.

On yearly front, Navneet Education’s top line decreased by 2.94 per cent to Rs 931 crore in FY16 as compared to the previous fiscal year. The company’s EBITDA too reduced by 11.66 per cent to Rs 207 crore in FY16 on yearly basis. Its EBITDA margin contracted by 218 basis points to 22.13 per cent in FY16 as compared to previous financial year. Navneet Education’s bottom line also declined by 1.16 per cent to Rs 128 crore in FY16 on yearly basis. However, the company’s PAT margin expanded by 25 basis points to 13.73 per cent in FY16 as compared to previous fiscal year.

On segmental revenue front, Navneet Education earned 56.29 per cent from publishing content segment, 42.92 per cent from stationary products segment and remaining 0.79 per cent from others segment during FY16.

The share price of Navneet Education increased by 4.56 per cent on bourses in early trades on Monday and is trading at Rs 90 on intraday basis.

Navneet Education is engaged in the business of publication of education and non-education books and manufacture of paper and non-paper stationery products. The company's operating segments include Publication and Stationery. Its geographical segments include North & Central, America, Africa, Europe, Australia & Oceania, rest of the world and India. Navneet Education manufactures scholastic paper stationery, publisher of general & children books and also has a range of scholastic non-paper stationary products. It publishes supplementary books in five languages viz. English, Gujarati, Hindi, Marathi and Urdu.