by Ritmbarah Arora
Aided by the recent corporate tax cut, early trends are showing resilient double-digit growth in the quarterly results despite the slowdown (with some exceptions, like Maruti Suzuki). Agrotech Foods, the Rakesh Jhunjhunwala portfolio stock, and Polycab India delivered strong results.
Agro Tech Foods Profile and Quarter Performance
Gurgaon headquartered Agro Tech Foods Ltd (ATFL) is in the business of marketing food and food ingredients to consumers and institutional customers. The company is affiliated to ConAgra Foods Inc. of USA, which is one of the largest food companies. ATFL offers its products under various categories including edible oils and sprays, snacks, soups, puddings, desserts, spreads, meal and meal enhancers. The quarterly result of the company has been announced today, post and the company rendered a good performance in the last quarter.
Net profit of ATFL increased by 68.6% YoY to Rs 15.4 crore in Q2FY20 as against Rs 9.14 crore during the previous Q2FY19. Sales declined 3.01% to Rs 204.46 crore in Q2FY20 as against Rs 210.80 crore during the previous Q2FY19. The total revenue for the current quarter has been reported Rs 205.6 crore as against Rs 211.7 crore during Q2FY19.
Though the total revenue is less than the last year same period revenue, growth of total revenue quarter is higher than historical averages. Operating profit observed a sharp increment from the last quarter and also Q2FY19. The operating profit is Rs 18.4 crore as against Rs 14.6 crore in the Q1FY20 and Rs 17.8 crore in Q2FY19. Profit before tax also observed an upsurge reported at Rs 14.4 crore as against Rs 10.7 crore in Q1FY20 and Rs 14.1 crore in Q2FY19.
Polycab India Profile and Quarter Performance
Polycab India Ltd also announced its results today. As soon as the numbers came out, the share price hit its 52-week high on news that the company’s revenues had increased by 24% YoY to Rs 2,242 crore led by strong growth across segments. Net profit stood at Rs 194 crore in Q2Y20 as against a profit of Rs 90 crore in Q2FY19. EBITDA margin improved to 12.1% from 11.9% in Q2FY19. PAT grew by 117% to Rs 1,938 mn in Q2FY20 as against Rs 895 mn in Q2FY19.
Polycab India Limited produces and distributes electronic equipment. The company offers cables, wires, fans, switches, lighting equipment, junction boxes, circular lids, inspection bends and accessories. The Chairman and Managing Director of Polycab India, Inder Jaisinghani commented on the financial performance, “We have delivered another quarter and half year of robust growth. Our profitability has more than doubled during the quarter and our customer-centric focus and robust distribution network have ensured that we maintain our growth momentum”.
