Ituran Location and Control Ltd. (ITRN) has reported a 32.31 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $8.15 million, or $0.39 a share in the quarter, compared with $6.16 million, or $0.29 a share for the same period last year.
Revenue during the quarter grew 20.39 percent to $52.76 million from $43.82 million in the previous year period. Gross margin for the quarter contracted 17 basis points over the previous year period to 50.05 percent. Total expenses were 78.09 percent of quarterly revenues, up from 77.65 percent for the same period last year. That has resulted in a contraction of 44 basis points in operating margin to 21.91 percent.
Operating income for the quarter was $11.56 million, compared with $9.80 million in the previous year period.
Eyal Sheratzky, Co-chief executive officer of Ituran said, "We are pleased with our results and our strong performance to date in 2016. As our subscriber base continues to grow, having surpassed 1 million subscribers last quarter, we increasingly enjoy the operating leverage inherent in our business, and our subscriber gross margin has now surpassed 65% throughout 2016. I look forward to continued growth as we move into 2017 and beyond."
Operating cash flow falls marginally
Ituran Location and Control Ltd. has generated cash of $27.11 million from operating activities during the nine month period, down 4.02 percent or $1.13 million, when compared with the last year period.
The company has spent $15.12 million cash to meet investing activities during the nine month period as against cash outgo of $19.98 million in the last year period. It has incurred net capital expenditure of $8.92 million on net basis during the nine month period, down 38.29 percent or $5.53 million from year ago period.
The company has spent $14.41 million cash to carry out financing activities during the nine month period as against cash outgo of $15.51 million in the last year period.
Cash and cash equivalents stood at $25.63 million as on Sep. 30, 2016, down 12.92 percent or $3.80 million from $29.43 million on Sep. 30, 2015.
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