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Punj Lloyd (PUJL.BO) Rs87.65
Equity Research
First Take: Below expectation on Revenue and Net Income
News
Punj Lloyd announced 3QFY11 revenue of Rs 21.2 bn, which was well
below our and Bloomberg consensus estimates. Net loss for the quarter at
Rs 621 mn was also significantly below our and consensus estimates
mainly on account of high cost of sales (increased 700 bps qoq). Both our
and consensus expectations were for Net Profit of Rs 470 mn for the
quarter. Order book as of December end stood at Rs 278 bn (9% growth
qoq and 18% yoy) as a result of strong order inflows from Oct ’10 to
Feb ’11 of Rs 48 bn.
Analysis
In spite of decent order inflow for the company (Rs 93 bn ytd, our FY11E
expectation is Rs 129 bn), execution has been sub par with revenue growth
of -27% yoy and EBITDA margin erosion from an average 7-8% in recent
quarters to 4.5% in the quarter. The company attributed this lower margin
to increased commodity prices during the quarter and lower margin related
revenue booked on the topline.
Implications
We place our estimates, target price and rating under review pending
further details from the company.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Punj Lloyd (PUJL.BO) Rs87.65
Equity Research
First Take: Below expectation on Revenue and Net Income
News
Punj Lloyd announced 3QFY11 revenue of Rs 21.2 bn, which was well
below our and Bloomberg consensus estimates. Net loss for the quarter at
Rs 621 mn was also significantly below our and consensus estimates
mainly on account of high cost of sales (increased 700 bps qoq). Both our
and consensus expectations were for Net Profit of Rs 470 mn for the
quarter. Order book as of December end stood at Rs 278 bn (9% growth
qoq and 18% yoy) as a result of strong order inflows from Oct ’10 to
Feb ’11 of Rs 48 bn.
Analysis
In spite of decent order inflow for the company (Rs 93 bn ytd, our FY11E
expectation is Rs 129 bn), execution has been sub par with revenue growth
of -27% yoy and EBITDA margin erosion from an average 7-8% in recent
quarters to 4.5% in the quarter. The company attributed this lower margin
to increased commodity prices during the quarter and lower margin related
revenue booked on the topline.
Implications
We place our estimates, target price and rating under review pending
further details from the company.
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