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Entry Price

180.00

Target

170.00

Recommend Date

16-08-2019

Return

5.56 %
BUY

Date : 16-08-2019

After de-growth in revenue in Q4FY19, even FY20 has begun on a subdued note for Rupa. Revenues for Q1FY20 grew marginally by 2.7% YoY to | 188.5 crore (I-direct estimate: | 188.6 crore). Owing to negative operating leverage, EBITDA margins for the quarter declined by 20 bps YoY to 11.2% (I-direct estimate: 10.6%). Negative impact of higher employee expenses (up 25% YoY to | 12.9 crore) was partially negated by decline in other expenses (down 1% YoY to | 42.8 crore). Absolute EBITDA remained constant YoY at | 21.1 crore (I-direct estimate: | 20.0 crore). Increase in depreciation cost (up 27% YoY to | 4.1 crore) and interest expense (up 38% YoY to | 4.1 crore) further dented the profitability. The resultant PAT declined 9.8% YoY to | 9.3 crore (I-direct estimate: | 8.8 crore).