Sintex Industries jumps after decent Q4 numbers

Sintex Industries rose 4.09% to Rs 50.85 at 14:54 IST on BSE after consolidated net profit rose 7% to Rs 161.10 crore on 42% increase in net sales to Rs 1982.90 crore in Q4 March 2014 over Q4 March 2013.

The company announced the results after market hours on Thursday, 8 May 2014.

Meanwhile, the BSE Sensex was up 580.80 points, or 2.60%, to 22,924.84.

On BSE, so far 27.40 lakh shares were traded in the counter, compared with an average volume of 11.38 lakh shares in the past one quarter.

The stock hit a high of Rs 52.40 and a low of Rs 50.50 so far during the day. The stock hit a 52-week high of Rs 54.20 on 20 May 2013. The stock hit a 52-week low of Rs 16.90 on 4 September 2013.

The stock had outperformed the market over the past one month till 8 May 2014, rising 12.17% compared with no change in the Sensex. The scrip had outperformed the market in past one quarter, rising 52.90% as against Sensex's 9.66% rise.

The small-cap company has an equity capital of Rs 31.31 crore. Face value per share is Re 1.

Sintex Industries' consolidated EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) for Q4 March 2014 at Rs 357.30 crore, improved by 460 basis points at 18% compared to Q4 March 2013 on account of better utilisation, productivity and control on cost.

On a consolidated basis, net profit rose 13% to Rs 364.70 crore on 15% increase in net sales to Rs 5842.60 crore in the year ended March 2014 over the year ended March 2013.

The year ended March 2014 (FY 2014) EBITDA at Rs 964.20 crore, a jump of 25% as compared to the year ended March 2013 (FY 2013). EBITDA margins at 16.5% in FY 2014 an improvement of 150 bps over FY 2013.

Highlighting the importance of FY 2014 as a strategically important year, Amit Patel, Group Managing Director commented, "FY 2014 was an extremely challenging year, despite this our topline and bottomline growth installs confidence on our sound business model. The prefabricated infrastructure business has grown by 20%witlr a blend of new product introductions and robust social spending. We are going aggressive on CSR front and Sintex being a pioneer in the social segment; we will leverage our innovations in the private sector for various initiatives. Our overseas CM is on a strong foothold for next upturn. l believe all the building blocks are in place for a healthy recovery in the near future.

"As a long term strategy, we have significantly realigned our business portfolio in the mast profitable, cost efficient and prudent mix. This will result in higher returns on assets as utilisation picks up and asset turnover improves. A gradual economic recovery is around the comer and we are well placed to reap maximum benefits in the coming years, added Mr Patel."

Sintex Industries is a dominant player in the plastics and textile business segments. The company manufactures a range of building materials and composites at its 13 plants across India. Subsequent to several strategic acquisitions the Company also possesses a global footprint that is spread across the continents of USA and Europe. In the textile segment the company is focussed on niche offerings, possessing specialization in men's structured shirting in the very premium fashion category.

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