Angel Broking, 3QFY2011 Result Previews:: Petronet LNG, Exide, cadila, GAIL,

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3QFY2011 Result Previews
GAIL
GAIL is expected to announce its 3QFY2011 results. The company’s performance on a qoq
basis is likely to be driven by higher transmission tariff and petchem margins, which to an
extent will be offset by higher subsidy burden, leaving the bottom line flatter on a qoq basis.
Transmission volumes during the quarter are likely to stay flat on account of lower gas
production from KG D6. On the top-line front, we expect the company to report top-line
growth of 33.7% yoy to `8,276cr (`6,188cr). Margin is expected to contract by 112bp yoy to
19.4% (20.5%). On the bottom-line front, we expect GAIL to report growth of 8.1% yoy to
`930cr (`860cr). We maintain Accumulate on GAIL with a Target Price of `534.

Cadila Healthcare
Cadila Healthcare (Cadila) is scheduled to announce its 3QFY2011 results today. We expect
the company to post strong 18.4% growth in net sales to `1,143cr on the back of robust
growth on the export and domestic formulation fronts, where the company is expected to
grow at 19.4% and 18.2% yoy, respectively. On the OPM front, we expect the company's
OPM to expand by 82bp yoy to 19.9% on the back of a favourable product mix. Net profit is
expected to increase by 33.6% yoy to `173cr, driven by top-line growth and OPM expansion.
We currently have a Neutral recommendation on the stock and would review it post the
result and management interaction.


Exide Industries
Exide Industries is slated to announce its 3QFY2011 results. We expect the company’s
top line to grow by healthy 27.2% yoy to `1,160cr backed by robust demand from the
automobile and industrial battery segments. On the operating front, EBITDA margin is
expected to decline by 292bp yoy to 21% due to an increase in average lead prices during
the quarter on a yoy basis. However, the bottom line is expected to post 15.4% yoy growth to
`150.6cr. The stock is under review.

Petronet LNG
Petronet LNG is likely to announce its 3QFY2011 results. The company’s top line during the
quarter is expected to increase by 50.4% yoy to `3,376cr on account of commissioning of
additional 2.5mmtpa of gas supplies from Qatar in January 2010. We even expect the
company to witness volume growth on a qoq basis to 106.6TBTUs (99.8TBTUs), with the
company importing spot LNG cargoes due to lower production from KG D6. Operating
profit during the quarter is expected to increase by 36.8%, driven by an increase in regasification
margins and marketing losses incurred in 3QFY2010. The bottom line during
the quarter is also likely to increase by 64.3% yoy to `137cr (`83cr). We maintain our
Neutral rating on the stock.