Friday, July 18, 2008

Repro India - Q1 results

I had in my earlier post recommended Repro India. The company announced its Q1 results today.
Sales have improved from 37 crores to 46 crores a jump of 24%. Net profit improved by over 70% growing from 3.02 crores to 5.15 crores. Quarterly EPS moved from 2.75 to 4.69.
More importantly OPM improved from 17% to 20% primarily driven by growth in exports which now constitute 47% of sales. International business has a higher operating margin as compared to domestic business.
The only downside is that having been caught in work, I havent had the time to add to my position :-(. Post results today the stock moved to the upper circuit closing at 113. I guess a few down days on the market should help me buy some more of this stock.

2 comments:

Anonymous said...

Hi Ninad

Wont the business get affected by global slowdown. Also the current quarter will have greater sales because of the balance sheet printing business.

Ashish

Ninad Kunder said...

Hi Ashish

Valid points.

The company has focussed on children's educational books segment. The focus is on World Bank funded education programs in Africa. I think it caters to over 15 countries in Africa which currently has low education penetration levels. Clearly this business is independent of the economic slowdown to a large extent

I have compared results with the quarter last year and hence the balance sheet printing part of business accrues in both the years. Also the balance sheet printing business is only about 20 crores a year.

Cheers

Ninad