India Investment, Stocks, Credit Card and Retail Forum
Investments in Indian Equity and Research => India Stocks and Shares => Topic started by: komal on October 25, 2010, 10:40:58 AM
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Praj Industries' (Praj) standalone revenues dropped by 46% YoY during the quarter ended September 2010. However, on a quarter on quarter basis, i.e., in comon to the quarter ended June 2010, revenues rose by 16%. Similar to what the company has been witnessing over the past few quarters, revenues were impacted by the overall slowdown in investments in new ethanol projects globally. Although, it may be noted that during the earlier quarter, the company’s management had stated that Praj would be focusing on order execution over the short term. Revenues during the quarter were largely driven by the domestic market. The contribution of the same stood at 70%, which is way higher as compared to what the company has seen in the past.
Praj's operating profits were under tremendous pressure in 2QFY11. While these declined by 84% YoY, operating margins contracted by a whopping 14% YoY. Margins during the quarter stood at 6.1%.
Praj’s net profits dropped by 78% YoY during 2QFY11. As compared to the decline in operating profits, the decline in net profits was lower on the back of higher forex gains. On excluding the same, net profits declined by 82% YoY.
At the current price of Rs 72, the stock is trading at a multiple of 18.7 times its adjusted trailing twelve month earnings