Apr 26: Wendt India Ltd (BSE: 505412, NSE: WENDT) has soared 6.55% to 3370 in morning trade on Thursday on better Q4FY 18 results. Net profit rose 52% to Rs 5.72 crore while sales turnover was flat at Rs 35.21 cr. The improved profitability is due to product mix and higher income during the current year, the company said.
The scrip is trading at a Price Earnings Ratio (PE) of 54 indicating higher valuation by market. Relative Strength Index (RSI) of 66 indicates bullishness and MACD line that witnessed a bullish crossover has again witnessed another crossover singaling a change in direction prices. ADX of 40 indicates uptrend.
On a Consolidated basis, the Company achieved sales of Rs 38.90 cr during the current quarter and profit after tax of Rs 4.90 crs, higher by 88% over the previous year. Accordingly, on a standalone basis, the Company achieved a sale of Rs. 126.85 cr during the year ended 31st March’2018 which is at the last year level. The domestic sales have been at Rs. 88.28 cr, which is 10% lower than the previous year.
Export sales were at Rs. 38.57 cr, higher by 28% over the previous year. The profit after tax has been at Rs. 12.30 cr, higher by 5% over the previous year. Accordingly, on a consolidated basis, the Company’s sales during the current year, was at Rs. 144.32 cr, which is at the previous year level. The profit after tax for the current year has been at Rs. 13.12 cr which is 9% higher than the previous year. The Company’s wholly owned subsidiary in Thailand, Wendt Grinding Technologies Ltd, presented yet another year of sustainable performance despite the turbulent economic situation and subdued industrial activities.
During the year, the subsidiary achieved sales of Rs 18.44 cr, higher by 12% over the previous year. The Profit after tax was Rs 2.83 cr, higher by 32% over the previous year. The company’s other wholly owned subsidiary in Sharjah, Wendt Middle East, clocked sales of Rs. 4.12 cr during the year in-spite of tough market situation in the Middle East and sustained its operations at last year’s level. Accordingly, the profit after tax has been lower at Rs. 7 lakhs. A dividend of Rs 15 per share was approved by the Board of Directors.
Wendt India belongs to the Chennai based Rs 300 bn Murugappa Group and is a leading manufacturer of super abrasive grinding wheels (Diamond and Cubic Boron Nitride) special purpose grinding machines and tools.