Miscellaneous: 3QFY11 Results Preview: Antique

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ABNL
􀂄 ABNL will continue its growth momentum witnessed since 2QFY10. So, 3QFY11 will
see revenue growth of 33% YoY to reach IRN16.7bn with the growth driven by garments,
carbon black, textiles and fertilisers.
􀂄 The cost structure would be similar sequentially with rise in raw material costs for carbon
black segment due to higher crude oil prices. So, EBITDA would see an increase of
13% YoY to INR2.7bn but rise sequentially 8%.
􀂄 Similarly, PAT would be boosted by lower charges on account of financial costs and
would rise by 38% YoY.

Ess Dee Aluminium
􀂄 The consolidation of India Foils Limited with Ess Dee Aluminium and improvement in
capacity utilisation should help the company register a QoQ improvement of 8% in
revenues to INR1.8bn.
􀂄 In this quarter, we expect net profits to settle at INR424m (+5% QoQ).
Gayatri Projects
􀂄 Gayatri Projects revenues in 3QFY11 are expected to increase by 15% to INR3.8bn,
backed by higher execution of orders in the roads segment.
􀂄 Margins are expected to expand marginally by 10bps to 12.4%, which would result in
an operating profit growth of 16% to INR476m.
􀂄 Capital charges should surge by 12% to INR215m as a result of higher working capital
requirements. Thus, the company should post a PBT of INR266m, an increase of 19%.
􀂄 However, we expect net profits to grow by a slower pace of 16% to INR178m on
account of higher tax provisioning (33.0% vs. 31.2%).
Maharashtra Seamless
􀂄 The company should register robust sales of seamless pipes on the back of sustained
buoyancy in the domestic E&P segment, while civic infrastructure projects generate
healthy offtake of ERW pipes.
􀂄 In this quarter, we expect operating profits of INR1bn and net profits of INR780m (+8%
YoY).


Mahindra Holidays & Resorts India
􀂄 We expect the company to clock revenues of INR1.2bn, as it slowly increases the pace
of new memberships while maintaining subscription fees at last year's levels.
􀂄 We expect operating margins to settle at 30% with net profits of INR222m.
Opto Circuits (India)
􀂄 Opto Circuits should register an 32% jump in revenues to INR3.4bn, as sales of new
products in the invasive and non-invasive space gather momentum.
􀂄 EBIDTA margin should settle at 30% (-400bps YoY) on account of the Cardiac Sciences
acquisition. Net profits should settle at INR718m (+9% YoY).
Shiv Vani Oil & Gas Exploration Services
􀂄 On a YoY basis, the company should register a jump in drilling revenues as it operates
its full complement of 40 rigs and 10 seismic crews. We estimate revenues to jump 14%
YoY to INR4bn.
􀂄 EBIDTA margin should improve 400bps to 48% as operations stabilise at the new sites.
􀂄 We estimate the company's net profits at INR622m (-13% YoY) to trail the growth in
revenues on account of the incidence of higher capital charges.
S. Kumars Nationwide
􀂄 SKNL is expected to report a 16% YoY growth in revenues to INR13.9bn in 3QFY11 as
a result of robust growth rate in the TWS SBU coupled with a higher contribution from
HMX.
􀂄 Margins are expected to expand by 180bps to 18.4% on the back of improved
performance at the international operations i.e., HMX and Leggiuno. Accordingly,
operating profits should rise by 28% to INR2.6bn.
􀂄 We expect net profits to grow by 21% to INR816m.
Sterlite Technologies
􀂄 In this quarter, we expect revenue growth to gather momentum on account of release of
orders in the power cables vertical.
􀂄 Margins should improve 500 bps to 17%, as the company's utilisation across the power
conductors and telecom solutions verticals picks up.
􀂄 We estimate company's revenues at INR7bn with net profits of INR765m (+4% YoY).
West Coast Paper Mills
􀂄 We have estimated revenues at INR2.7bn (+22% YoY), having assumed 100%
throughput for the months of Nov-Dec'10.
􀂄 Margins should improve 1,000bps YoY to 28% due to benefits of scale and low base of
the corresponding period.
􀂄 We estimate company's net profits at INR278m (+130% YoY).
Rainbow Papers
􀂄 The company should post revenues of INR890m (+31% YoY) with margins of 23%.
􀂄 We estimate company's net profits at INR90m (+67% YoY).
Havells India
􀂄 We have estimated revenues at INR15bn (+14% YoY), having assumed an improvement
in Sylvania's revenues on account of the holiday season.
􀂄 Margins should improve 600bps YoY to 12% due to benefits of outsourcing Sylvania's
production to China and India.
􀂄 We estimate company's net profits at INR1.4bn (+35% YoY).