Wednesday, May 20, 2015
SKM EGG PRODUCTS -reported its March quarter and full year numbers today.For the three months ended March , Company reported a topline of Rs.66 Cr v/s Rs.69 Cr and a net profit of Rs.7.8 Vr v/s Rs.3.8 Cr ( including other income - standalone basis) . For FY 2014-15 , company's topline is Rs.290 Cr v/s Rs.264 Cr and net profit improved from Rs.7 Cr to Rs.23 Cr .Full year EPS is Rs.8.85 . A tad lower profit in last quarter was mainly due to increased expense for employee benefits and provision for depreciation as per new standards. Company declared a dividend of 10 % after a gap of 5 years. Company is expected to announce their plans to achieve targetted sales within 6-9 months . Though the overall result is not bad , due to mismatch with expectation and reality of investors , it already corrected more than 10 % . Long term investors can still hold it and I believe this industry will further consolidate in another few years and it will emerge as one of the very few players in India in this business going forward.