Sintex Industries Sees Rise In Profits In Q4FY13

Plastic and textiles major Sintex Industries has announced its financial results for the quarter ended March 31, 2013. Beating street estimates, the company posted a net profit of Rs 151 crore on a consolidated basis for the quarter, which was up 71.6% on a yearly basis, as against expectations of around Rs 90 crore. The rise in its consolidated income from operations, increase in Other Income and tax reversal led to such growth in profits.

The consolidated net income of the company increased by 38% on a yearly basis to Rs 1396.7 crore for the quarter, from Rs 1015.3 crore in the previous year corresponding quarter. Its plastics division, which contributes more than 80% of the total revenue, grew by around 40% YoY to Rs 798 crore and boosted the topline.  The textile division of Sintex, however, saw a 1% decline in its revenue to touch Rs 129.95 crore in the same period.

The Other Income has increased by a thumping 283% YoY to Rs 45.64 crore. Another factor that helped the company post a good bottomline is a tax reversal of Rs 24.95 crore in the quarter, against a tax outgo of Rs 26.25 crore in the same quarter of last year.

The net profit would have been even better if the company’s finance cost for the quarter had not doubled to Rs 43.6 crore.

The shares of the company are currently trading at Rs 54, discounting its FY13 earning by 4.74x, which looks attractive.