Result Preview: Lanco; Punj Lloyd; Century Plyboards; with Emkay 7 February, 2011

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Contents

Result Preview: Lanco; Punj Lloyd; Century Plyboards;

n        Research Views

Lanco Q3FY11E Result Estimates

We expect the company to report excellent set of numbers on back of (1) full impact of Kondapalli II plant (2) higher revenues from construction segment on back of spill over from Q2FY11 and expected higher margins (15%) and (3) better volumes and realizations QoQ basis.

We expect consolidated revenues of Rs24.2bn (up 50% yoy). EBITDA margins of 26.2% (up 820 bps yoy) absolute EBITDA of Rs6.3bn (up 119% yoy) and APAT of Rs1.8bn (up 87% yoy. Lower APAT growth mainly due to higher depreciation op account of change in depreciation policy from SLM to WDV (depreciation is expected to increase by 372% yoy).

Key things to watch will be – (1) updates on Udupi and Anpara projects (2) merchant power realizations and (3) margins in construction business.

Punj Lloyd Q3FY11E Result Estimates

Expect continued improvement in performance on qoq basis – led by uptick in revenue booking in Libya orders.

n    Expect Revenues of Rs25.3 bn (+27% qoq)

n    Expect EBITDA of Rs2.0 bn (+10% qoq)

n    Expect EBITDA margins at 8.0% - down 120 bps qoq – on high base in Q2FY11

n    APAT at Rs275 mn (up 15% qoq and 121% yoy – yoy improvement in performance is due to benefit of high tax incidence in Q3FY10).

Progress in Libya orders will be closely tracked

Century Plyboards Q3FY11 results expectation

Revenues for the quarter are expected to grow by 15.6% to Rs 3.29 bn driven mainly by growth in revenues in the plywood & laminates and ferro alloys segment. EBITDA for the quarter is expected to grow by 7.1%yoy to Rs 556mn with overall EBITDA margins shrinking 130bps to 16.9%. However on account of lower other income (Q3FY10 had a forex gain of Rs74 mn) APAT at Rs342 mn is expected to decline 4.4% yoy. APAT after minority interest for the quarter at Rs275mn is expected to decline by 12.5%.