Asahi Songwon Colors: Q3FY14 Result Analysis

Asahi Songwon Colors came out better numbers for the quarter ended December 2013. The topline of the company grew by 31% on YoY basis to stand at Rs 79.89 crore for Q3FY14 as against Rs 60.97 crore witnessed during the same quarter last fiscal.

On the operational front, the EBITDA of the company came in at Rs 9.90 crore witnessing an upmove of 88% on YoY basis. The EBITDA margins came in at 12.39% for Q3FY14 which is up by 379 basis points on YoY basis. This can be attributed to the fact that the company has been able to control the costs. The raw material cost as a percentage of sales stood at 66.88% for Q3FY14 witnessing a decline of 337 basis points on YoY basis.

There has been a slight rise on the finance cost front which grew by 6.14% on YoY basis for this quarter to stand at Rs 1.40 crore. On the bottomline front, the net profit came in at Rs 4.25 crore as against Rs 2 crore witnessed during the same period last fiscal. The PAT margins also expanded by 204 basis points on YoY basis for Q3FY14.

We maintain our bullish stance on the stock and investors can still look at entering the stock for a longer term basis on.