IHS Markit Ltd. (IHS) swung to a net loss for the quarter ended Aug. 31, 2016. The company has made a net loss of $31.70 million, or $ 0.09 a share in the quarter, against a net profit of $59.10 million, or $0.24 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $158.60 million, or $0.45 a share compared with $101.30 million or $0.41 a share, a year ago. Revenue during the quarter grew 29.88 percent to $724.60 million from $557.90 million in the previous year period. Gross margin for the quarter expanded 908 basis points over the previous year period to 71.58 percent. Operating margin for the quarter stood at negative 2.30 percent as compared to a positive 16.31 percent for the previous year period.
Operating loss for the quarter was $16.70 million, compared with an operating income of $91 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $269 million compared with $179.60 million in the prior year period. At the same time, adjusted EBITDA margin improved 493 basis points in the quarter to 37.12 percent from 32.19 percent in the last year period.
"We are off to a strong start with our integration efforts, giving us confidence in achieving our synergy targets," said Jerre Stead, IHS Markit chairman and chief executive officer. "I am very proud of the colleagues of IHS Markit who are working so well together with our focus on delighting our customers daily."
IHS Markit Ltd. projects revenue to be in the range of $2,735 million to $2,765 million for financial year 2016. For financial year 2016, the company forecasts diluted earnings per share to be in the range of $1.72 to $1.78 on adjusted basis.
Operating cash flow falls marginallyIHS Markit Ltd. has generated cash of $475.10 million from operating activities during the nine month period, down 4.33 percent or $21.50 million, when compared with the last year period. The company has spent $917.60 million cash to meet investing activities during the nine month period as against cash outgo of $463.50 million in the last year period.
Cash flow from financing activities was $329.70 million for the nine month period, up 229.70 percent or $229.70 million, when compared with the last year period.
Cash and cash equivalents stood at stood at $200.70 million as at Aug. 31, 2016.
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