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Garware Offshore:: Better operational performance…
Garware Offshore (GOL) reported better than expected Q3FY11 results
with a QoQ improvement in topline, EBITDA margin and net profit. On a
QoQ basis, revenues increased 17% to | 57.7 crore mainly due to higher
utilisation of its barge (Q3FY11-80%, Q2FY11-50%) while net profit
increased 254% to | 15.3 crore. Operating margin improved 1520 bps to
53.2% due to lower expenses due to deployment of the barge on
bareboat charter. Traction in revenues can be expected from FY12
onwards as the full impact of revenues from the new platform support
vessel, which has joined the fleet in December 2010, will be visible. We
expect the vessel to be contracted on long-term charter contract with
rates of $30,000 per day. Further, we also expect charter rates to rise in
FY12. This would be an added advantage for the company.
GOL currently operates a fleet of 13 vessels, which consists of seven
AHTS vessels, five PSVs and one construction barge. It has reasonably
good revenue visibility as 71% of its fleet is deployed on long-term
charter contracts that ensure higher utilisation level for its fleet.
Improved Q3FY11performance
GOL reported a QoQ rise of 17% at | 57.7 crore in Q3FY11. The
company reported a 64% increase in EBITDA to | 30.7 crore on account
of 1520 bps QoQ improvement in EBITDA margin in Q3FY11. Interest
and depreciation increased 7% and 6%, respectively while net profit
registered a 254% increase to | 15.3 crore.
Valuation
At the CMP of | 115, the stock is trading at 7.5x FY12E EPS of | 19.9 and
0.8x FY12E book value of | 144. We have valued the stock on a P/BV and
P/E multiple basis to arrive at a price target of | 122. We recommend an
ADD rating on the stock.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Garware Offshore:: Better operational performance…
Garware Offshore (GOL) reported better than expected Q3FY11 results
with a QoQ improvement in topline, EBITDA margin and net profit. On a
QoQ basis, revenues increased 17% to | 57.7 crore mainly due to higher
utilisation of its barge (Q3FY11-80%, Q2FY11-50%) while net profit
increased 254% to | 15.3 crore. Operating margin improved 1520 bps to
53.2% due to lower expenses due to deployment of the barge on
bareboat charter. Traction in revenues can be expected from FY12
onwards as the full impact of revenues from the new platform support
vessel, which has joined the fleet in December 2010, will be visible. We
expect the vessel to be contracted on long-term charter contract with
rates of $30,000 per day. Further, we also expect charter rates to rise in
FY12. This would be an added advantage for the company.
GOL currently operates a fleet of 13 vessels, which consists of seven
AHTS vessels, five PSVs and one construction barge. It has reasonably
good revenue visibility as 71% of its fleet is deployed on long-term
charter contracts that ensure higher utilisation level for its fleet.
Improved Q3FY11performance
GOL reported a QoQ rise of 17% at | 57.7 crore in Q3FY11. The
company reported a 64% increase in EBITDA to | 30.7 crore on account
of 1520 bps QoQ improvement in EBITDA margin in Q3FY11. Interest
and depreciation increased 7% and 6%, respectively while net profit
registered a 254% increase to | 15.3 crore.
Valuation
At the CMP of | 115, the stock is trading at 7.5x FY12E EPS of | 19.9 and
0.8x FY12E book value of | 144. We have valued the stock on a P/BV and
P/E multiple basis to arrive at a price target of | 122. We recommend an
ADD rating on the stock.
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