castrol india ltd - Myiris.com

More documents

Recommendations

Info

MORNING INSIGHT October 25, 2012 Cost Ratio Analysis (% of (Net sales + Inventory) Sep-12 Sep-11 YoY (%) QoQ (%) RM & Service cost 54.6 54.9 (0.3) 0.9 Staff cost 4.4 4.6 (0.2) 0.4 Purchase of FG 5.2 5.1 0.1 0.7 Advertisement Exp. (Net Sales) 8.5 6.4 2.0 0.7 Carriage, Freight & Insurance 3.1 2.8 0.3 0.2 Other Expenses 7.3 7.5 (0.2) 0.3 Source: Company Quarterly Result Analysis - � In Q3CY12, the net revenue has fallen by 15.5% QoQ but up by 7.1% YoY to Rs. 7.2 Bn mainly on account improved sales mix and pricing actions taken by the Company. � Raw material cost: In Q3CY12, raw material cost has decreased by 14.7% QoQ but was up by 2.3% YoY to Rs.3.89 Bn. Lube oil is a derivative of crude oil and Brent crude prices has decreased in Q3CY12 however the benefit was partly offset by weak rupee. Raw material cost to sales ratio has increased by 0.9% QoQ to 54.6%. � Trading activity - purchase of finished goods: In Q3CY12, finished goods purchased by the Company has fallen by 3.9% QoQ but up by 4.8% YoY to Rs.372 Mn. � Carriage, Freight & Insurance (CIF): CIF is dependent on imports of raw material. The Company has increased its volumes and as a result its CIF cost has also increased. In Q3CY12, carriage, freight & insurance cost has fallen by 10.9% QoQ but was up by 14.5% YoY to Rs.221 Mn. � Advertisement Expenses: In Q3CY12, advertisement expense has increased by 40.9% YoY but down by 7.4% QoQ to Rs.610 Mn. In Q2CY12, the Company in order to promote new products has carried extensive and intensive marketing campaigns, resulting in higher advertisement expenses. � Employee Cost: Staff cost has fallen by 8.6% QoQ and 2.5% to Rs.310 Mn partly due to base effect. � Other Expenses: In Q3CY12, other expense has fallen by 12.7% QoQ but marginally up by 0.4% YoY to Rs.523 Mn. � Operating margin: Overall operating margin fell by 280bps YoY and 330bps QoQ to 16.6% in Q3CY12. Its margin was down sequentially basis due to rise in raw material cost to sales ratio. (Lube oil prices). � Depreciation: In Q3CY12, depreciation cost has increased by 6.5% YoY and 10% QoQ to Rs. 66 Mn. Total capital employed by Castrol has increased by 13.3% QoQ and by 0.7% to Rs. 7.33 Bn. � Other Income: In Q3CY12, other income has fallen by 12.9% YoY and by 8.6% QoQ to Rs.148 Mn. � Finance/Bank charges has fallen to Rs.1.0 Mn from Rs. 9 Mn on YoY. As on 30th Sep'12, Castrol is a zero debt company. � Castrol's PAT margin has fallen by 220bps YoY and by 230bps to 11.9% in Q3CY12. � The Company's profit after tax (PAT) was fallen by 29.1% QoQ and 9.9% YoY to Rs. 857 Mn mainly on account of 1). Lower sales volume, 2). Lower realization, and 3). Higher depreciation. Kotak Securities - Private Client Research Please see the disclaimer on the last page For Private Circulation 12
MORNING INSIGHT October 25, 2012 Operating margin performance Source: Kotak Securities - Private Client Research Segment-wise performance Segment Revenue (Net Sales) Sep-12 Sep-11 YoY (%) QoQ (%) Automotive 6,248 5,652 10.5 (16.9) Non-Automotive/Industrial and Building & Construction 947 1,064 (11.0) (4.9) Total 7,195 6,716 7.1 (15.5) Segment Revenue Contribution (%) Automotive 86.8 84.2 2.68 (1.5) Non-Automotive/Industrial and Building & Construction 13.2 15.8 (2.68) 1.5 Segment EBIT (Adj for exceptional) Automotive 1,036 1,042 (0.6) (30.9) Non-Automotive/Industrial and Building & Construction 149 257 (42.0) (19.9) Total 1,185 1,299 (8.8) (29.7) Unallocated Exp/Corporate Exp. 54 58 (6.9) 5.9 % of VoP 0.8% 0.8% (0.0) (0.6) EBIT Margin (%) Automotive 16.6 18.4 (1.85) (3.4) Non-Automotive/Industrial and Building & Construction 15.7 24.2 (8.42) (2.9) Segment EBIT Contribution (%) Automotive 87.4 80.2 7.2 (1.5) Non-Automotive/Industrial and Building & Construction 12.6 19.8 (7.2) 1.5 Capital Employed (Rs. Mn) Automotive 2,046 2,445 (16.3) (3.6) Non-Automotive/Industrial and Building & Construction 1,042 1,174 (11.2) 2.1 Unallocable 4,238 3,653 16.0 27.5 Total 7,326 7,272 0.7 13.3 EBIT/CE (%) Automotive 203 170 18.8 (80.0) Non-Automotive/Industrial and Building & Construction 57.2 87.6 -34.7 (15.7) Total 64.7 71.5 -9.4 (39.5) Source: Company Kotak Securities - Private Client Research Please see the disclaimer on the last page For Private Circulation 13
Page 1 and 2: Economy News � The finance minist
Page 3 and 4: MORNING INSIGHT October 25, 2012 Ri
Page 5 and 6: MORNING INSIGHT October 25, 2012
Page 7 and 8: RESULT UPDATE MORNING INSIGHT Octob
Page 9 and 10: MORNING INSIGHT October 25, 2012 We
Page 11: MORNING INSIGHT October 25, 2012 Qu
Page 15 and 16: MORNING INSIGHT October 25, 2012 Bu

castrol india ltd - Myiris.com

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?