Quarterly Results: Simplex Infrastructures Ltd

Technical View: 

Simplex Infrastructures Ltd is currently trading at Rs 290, down 11.4 points or 3.78% from its previous close of Rs 301.40 on the BSE.
The scrip opened at Rs 306 and has touched a high and low of Rs 306 and Rs 290 respectively. A total of 3410 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 50 DMA.

Standalone Results Q2FY17: 

Simplex Infrastructures’ Q2FY17 standalone numbers were a mixed bag when seen against Bloomberg estimates. While revenue was below the estimated figure, both EBITDA and net profit figures beat the estimates. The company's revenue was 10.6% below the estimated Rs 1,414 crore. However, its EBITDA beat the estimate of Rs 118 crore by 35.5% and net profit was 28.5% above the estimated figure of Rs 14 crore.
 
Its revenue for the quarter was 11.3% lower YoY at Rs 1,264 crore due to the drag from construction segment revenue which declined 12.3% YoY.
 
The company's EBITDA for the period declined 3.6% YoY to Rs 160 crore, while EBITDA margin expanded 101 bps YoY to 12.7%. This was aided by 27.8% YoY decline in cost of materials consumed.
 
Its reported net profit for the quarter declined 30.8% YoY to Rs 18 crore. This was the combined impact of other income falling 6.7% YoY, finance costs increasing 3.4% YoY and effective tax rate increasing to 39.4% from 34.7% YoY.
 
The company’s September-end order book stood at Rs 13,485 crore, excluding L1 of Rs 2,543 crore. The company secured new orders worth Rs 978 crore during the quarter.