Sintex Industries: Results good but investors are nonplussed

MUMBAI: Sintex Industries reported a strong operational performance for the December '12 quarter with improving sales as well as margins.

The weak bottomline performance was a result of forex loss necessitated by weakness in rupee. As the company arranged to finance repayment of its FCCBs, it is past its immediate dangers.

Sintex Industries posted a 23% topline growth to Rs 1427 crore with a 130 basis points improvement in operating profit margins to 15.4% at consolidated level. This boosted its pre-tax profits by 45% to Rs 140.3 crore. The company booked a notional forex loss of Rs 45 crore on revaluing its long-term liabilities, whereas its tax outgo jumped substantially. This resulted in 35% drop in the bottomline to Rs 53.3 crore.

Although operationally strong, the performance failed to enthuse investors as Sintex scrip lost more than 2.5% since opening to close at Rs 68.6 on BSE.