Nesco posts subdued quarter due to lower BEC revenue

The total revenue for the quarter declined by 2.8 per cent yoy and 7 per cent qoq to Rs. 88 crore in Q3FY18 as compared to Rs. 83 crore in previous quarter and Rs. 91 crore in previous year's corresponding quarter. This was largely due to declining revenue from Bombay Exhibition Centre revenue by 7 per cent qoq and 22.5 per cent yoy to Rs. 35.3 crore in Q3FY18 compared to Rs. 45.59 crore in previous year corresponding quarter. The Bombay Exhibition Centre revenue accounts for 40 per cent of the total revenue.

The operating margins for the quarter improved drastically by 240 bps yoy and 360 bps qoq to 75 per cent in Q3FY18 compared to 72.6 per cent in previous year corresponding quarter. This was largely on account of minimal cost of material expenses at Rs. 0.36 crore in Q3FY18 compared to Rs. 4.2 crore in Q3FY17. The EBITDA for the quarter rose by 12.4 per cent qoq and 0.4 per cent yoy.

The bottom-line looks subdued as PAT for the quarter declined by 22 per cent yoy and 9.8 per cent qoq to Rs. 44 crore in Q3FY18. This was largely due to higher effective tax rate at 29 per cent for Q3FY18 vs 20.3 per cent in Q3FY17.

The stock of Nesco closed 1.77 per cent up on the bourses on Monday at Rs. 599 per share.