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Results below estimate: Jyoti Structures (JSL) reported a top‐line of Rs5.5bn, up
8% YoY. This was lower than our estimate of Rs5.8bn, mainly on account of
lower‐than‐expected execution in the quarter. However, slippages in revenue
was just a timing issue and the company expects to make up for the same in
Q4FY11 to achieve a full guidance of top‐line of Rs24bn. EBITDA was up 12% YoY
to Rs629m and margins improved 40bps YoY to 11.4%. Interest cost increased
18% YoY to Rs212m, Adj. PAT increased by 5.8% YoY to Rs247m.
Order book: JSL’s order book is at Rs41bn, up ~2% YoY. Transmission line
constituted 80%, Sub‐station 5% and RE job 15% of the order book. Order inflow
for the quarter stood at Rs4.18bn. The orders were primarily received from
private sector players like India bulls Power and another major order was
received from Maharashtra State Electricity Distribution Company during the
quarter. Concentration of the Power Grid in the order book has come down to
26% and private order constituted 16% of the order book. Tender pipeline looks
strong, with bids worth Rs10bn to be tendered by Power Grid over the
remaining two months of the financial year and Technical bids worth Rs20bn yet
to be opened at Power Grid. There are two private sector players who have
come out with bids in the market like Reliance, with a project worth Rs20‐22bn
for its REC BOOT project and Sterlite, which recently won the BOOT project
invited by PFC with orders valued at ~Rs13‐14bn.
Valuation: The stock is currently trading at 8.6x and 7.5x its FY11E and FY12E
earnings. We have downgraded our FY12 earnings by 6% to factor in higher
borrowing cost. We believe that a pick‐up in the order flow will help correct the
underperformance. We maintain ‘BUY’ rating on the stock.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Results below estimate: Jyoti Structures (JSL) reported a top‐line of Rs5.5bn, up
8% YoY. This was lower than our estimate of Rs5.8bn, mainly on account of
lower‐than‐expected execution in the quarter. However, slippages in revenue
was just a timing issue and the company expects to make up for the same in
Q4FY11 to achieve a full guidance of top‐line of Rs24bn. EBITDA was up 12% YoY
to Rs629m and margins improved 40bps YoY to 11.4%. Interest cost increased
18% YoY to Rs212m, Adj. PAT increased by 5.8% YoY to Rs247m.
Order book: JSL’s order book is at Rs41bn, up ~2% YoY. Transmission line
constituted 80%, Sub‐station 5% and RE job 15% of the order book. Order inflow
for the quarter stood at Rs4.18bn. The orders were primarily received from
private sector players like India bulls Power and another major order was
received from Maharashtra State Electricity Distribution Company during the
quarter. Concentration of the Power Grid in the order book has come down to
26% and private order constituted 16% of the order book. Tender pipeline looks
strong, with bids worth Rs10bn to be tendered by Power Grid over the
remaining two months of the financial year and Technical bids worth Rs20bn yet
to be opened at Power Grid. There are two private sector players who have
come out with bids in the market like Reliance, with a project worth Rs20‐22bn
for its REC BOOT project and Sterlite, which recently won the BOOT project
invited by PFC with orders valued at ~Rs13‐14bn.
Valuation: The stock is currently trading at 8.6x and 7.5x its FY11E and FY12E
earnings. We have downgraded our FY12 earnings by 6% to factor in higher
borrowing cost. We believe that a pick‐up in the order flow will help correct the
underperformance. We maintain ‘BUY’ rating on the stock.
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