Tree House Education has declared the results of Q2 FY16
Company has reported marginal rise of 1.19% (Y-o-Y) & huge decline of 29.3% (Q-o-Q) in profit after tax at 12.74 cr. for the quarter ended September 30, 2015 as compared to the quarters ended September 30, 2014 and June 2015. Net Revenues grew by 15.05% on Y-o-Y basis and declined by 17.07% on Q-o-Q basis.
Company’s margins have shrunk massively this quarter because of massive operating expenditures rise of 35%. Company’s Gross Profit Margin is 52.66%. It has declined by 701 basis points on Y-o-Y basis and 1137 basis Q-o-Q basis. PAT margin has also slipped by 305 and 385 basis points compared to same quarter last year and previous quarter respectively.
So company may underperform for some period. One should accumulate in tranches as stock may slide from current levels too.
Latest Key Indicators of the stock are as follows:
| Key Market Indicators (Standalone) | |
| Latest Date | 06-Nov-2015 |
| Latest Price (Rs) | 260.50 |
| Previous Close (Rs) | 268.20 |
| 1 Day Price Var% | -2.87 |
| 1 Year Price Var% | -41.32 |
| 52 Week High (Rs) | 548.00 |
| 52 Week Low (Rs) | 259.10 |
| Beta | 0.65 |
| Face Value (Rs) | 10.00 |
| Industry PE | 39.76 |
| TTM Period | 201506 |
| TTM EPS(Rs) | 14.85 |
| TTM CEPS(Rs) | 22.06 |
| Price/TTM CEPS(x) | 11.81 |
| TTM PE (x) | 17.54 |
| Price/BV(x) | 1.66 |
| EV/TTM EBIDTA(x) | 7.49 |
| EV/TTM Sales(x) | 4.70 |
| Dividend Yield% | 0.77 |
| MCap/TTM Sales(x) | 4.95 |
| Latest Book Value (Rs) | 156.64 |
| Market Cap (Rs. In Crores) | 1102.19 |
| EV (Rs. In Crores) | 1046.64 |
| Latest no. of shares (In Crores) | 4.23 |
Comparison of quarterly results with previous quarter (Q-o-Q) and the same quarter of last year (Y-o-Y) is below:
| DESCRIPTION | Sep-15 | Sep-14 | %Var | Jun-15 | %Var |
| Net Sales | 57.25 | 49.76 | 15.05 | 69.03 | -17.07 |
| Total Expenditure | 27.10 | 20.07 | 35.03 | 24.83 | 9.14 |
| PBIDT (Excl OI) | 30.15 | 29.69 | 1.55 | 44.20 | -31.79 |
| Other Income | 3.15 | 0.34 | 826.47 | 3.00 | 5.00 |
| Operating Profit | 33.30 | 30.03 | 10.89 | 47.20 | -29.45 |
| Interest | 4.52 | 4.36 | 3.67 | 3.69 | 22.49 |
| Exceptional Items | -3.22 | ||||
| PBDT | 28.78 | 25.67 | 12.12 | 40.29 | -28.57 |
| Depreciation | 10.04 | 6.34 | 58.36 | 9.65 | 4.04 |
| PBT | 18.74 | 19.33 | -3.05 | 30.64 | -38.84 |
| Tax | 6.00 | 6.74 | -10.98 | 12.62 | -52.46 |
| Profit After Tax | 12.74 | 12.59 | 1.19 | 18.02 | -29.30 |
| Adj. EPS | 3.01 | 2.98 | 1.15 | 4.26 | -29.34 |
| Profitability Ratios | Absolute Variance | Absolute Variance | |||
| PBIDTM% (Excl OI) | 52.66 | 59.67 | -7.01 | 64.03 | -11.37 |
| PBIDTM% | 58.17 | 60.35 | -2.18 | 68.38 | -10.21 |
| PBDTM% | 50.27 | 51.59 | -1.32 | 58.37 | -8.10 |
| PBTM% | 32.73 | 38.85 | -6.12 | 44.39 | -11.66 |
| PATM% | 22.25 | 25.30 | -3.05 | 26.10 | -3.85 |
