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Increase in profitability and industry-beating performance can be essential considerations in a stock for some investors. In this article, I will take a look at Xpro India Limited’s (NSEI:XPROINDIA) track record on a high level, to give you some insight into how the company has been performing against its historical trend and its industry peers. View our latest analysis for Xpro India

Commentary On XPROINDIA’s Past Performance

To account for any quarterly or half-yearly updates, I use data from the most recent 12 months, which annualizes the most recent half-year data, or in some cases, the latest annual report is already the most recent financial year data. This technique allows me to assess different companies on a more comparable basis, using the latest information. For Xpro India, its most recent earnings (trailing twelve month) is -₹120.89M, which, against the prior year’s figure, has become less negative. Since these figures may be relatively myopic, I have calculated an annualized five-year figure for Xpro India’s earnings, which stands at -₹84.23M. This shows that, Xpro India has historically performed better than recently, despite the fact that it seems like earnings are now heading back in the right direction again.

We can further analyze Xpro India’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the last five years Xpro India’s revenue growth has been somewhat soft, with an annual growth rate of 1.55%, on average. The company’s inability to breakeven has been aided by the relatively flat top-line in the past. Eyeballing growth from a sector-level, the IN chemicals industry has been growing its average earnings by double-digit 20.31% in the prior year, and a more subdued 9.76% over the previous five years. This shows that, despite the fact that Xpro India is currently unprofitable, it may have gained from industry tailwinds, moving earnings in the right direction.

What does this mean?

Xpro India’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. Companies that incur net loss is always hard to predict what will happen in the future and when. The most insightful step is to assess company-specific issues Xpro India may be facing and whether management guidance has consistently been met in the past. I recommend you continue to research Xpro India to get a more holistic view of the stock by looking at:

• 1. Financial Health: Is XPROINDIA’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.

• 2. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

NB: Figures in this article are calculated using data from the trailing twelve months from 31 March 2017. This may not be consistent with full year annual report figures.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.