Results Update !!!

Wanbury

For the quarter Wanbury did the sales of 123 cr which was 20% higher YoY and almost flat QoQ. Operating profits increased significantly YoY to 3.7cr from just .02cr, though it declined from 12.3cr mainly on account of higher raw material cost and other expenses. The company posted a nominal loss of 0.1cr mainly due to help from other income (refer notes of results for details on this). Overall good sales indicate the recovery trend is continuing and a bit of quarterly gyrations always come in turnaround companies.

Waterbase

Waterbase reported a muted set of numbers with topline declining on both YoY and QoQ basis though net profits increased from 2.46cr to 3.94cr YoY, though remaining almost constant QoQ with slightly negative bias. Net profits were high on account of lower tax this quarter (as they accounted more tax in the last few quarters), but it’s equally important to note that YoY there was substantial increase in the raw material cost and therefore, the OPM were slightly hampered. But most importantly, it’s the newsflow that’s promising. Setting up of Vannamei hatcheries, merger of Pinnae Feeds Ltd (which will increase their capacity from 35,000 MTPA to 1,10,000 MTPA – more than three times increase) sounds extremely promising for the long run and along with it halving of debt, 30% payout and a sound cash balance of 29.47cr make the company a sound investment theme for the long run.