Vimta Labs Q2 net profit zooms 720%
Vimta Labs share price gained 5% on October 16 after reporting a whopping 720% jump in standalone net profit in the September quarter.
Net profit of the company zoomed to Rs 7.38 crore in the quarter ended September 2020 as against Rs 0.90 crore during the previous quarter ended September 2019.
Sales rose 38.52% to Rs 58.80 crore in the quarter ended September 2020 as against Rs 42.45 crore during the previous quarter ended September 2019.
EBITDA stands at Rs. 15.83 crore in September 2020 up 137.69% from Rs. 6.66 crore in September 2019.
Vimta Labs EPS has increased to Rs. 3.34 in September 2020 from Rs. 0.41 in September 2019.
Strong performance has boosted Vimta Lab’s operational parameters, particularly debt servicing. As of March 2020, Vimta’s has a debt of Rs 33.26 crore and net cash of Rs 5.51 crore. This translates into net debt of Rs 27.75 crore, which is 1.1 times EBITDA. This also means low interest coverage.
Definitely, the latest quarterly performance will help assuage worries over debt repayment and hence trigger improvement in stock valuation.
Vimta Labs is engaged in the business of contract research and testing services. The Company provides services of testing and contract research in the fields of clinical and pre-clinical studies, clinical reference, analytical testing, advanced molecular biology and environmental studies.
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