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India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Automobiles
n We expect our automobile universe to report 20% YoY/7% QoQ growth in sales to Rs 663bn due to strong volume
growth driven by end of fiscal year sales.
n EBIDTA at Rs 92 bn is also expected to grow by 29% YoY/ 12% QoQ. Excl. TML subs, EBITDA growth to moderate to
6% YoY/14% QoQ to Rs 55 bn.
n Consequently, EBIDTA margins would expand by 100 bpsYoY/60bps QoQ to 13.9%. Excluding TML subs, margins to
register decline of 150bps YoY due to higher RM costs. However, QoQ margins to expand by 40 bps driven by
operating leverage on higher volumes.
n APAT at Rs 59bn should report a strong growth of 41% YoY/17% QoQ. Ex TML subs, APAT will grow marginally by 6%
YoY/17% QoQ to Rs 35bn input notably Steel, Rubber and Aluminum which have increased 17%, 16% and 7% over
last quarter.
n Only TML (due to JLR) is expected to report YoY margin expansion. QoQ margins expansion will be witnessed in ALL
(390 bps), HH (150 bps), TVS (45 bps), EML (28 bps) and MSIL (22 bps). BAL and M&M are likely to face margin
contraction QoQ/YoY
n We maintain our BUY on BAL, M&M and TML. Post 3QFY11 results, we had upgraded ALL, MSIL and TVS to
ACCUMULATE. We maintain our REDUCE rating on Hero Honda
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Automobiles
n We expect our automobile universe to report 20% YoY/7% QoQ growth in sales to Rs 663bn due to strong volume
growth driven by end of fiscal year sales.
n EBIDTA at Rs 92 bn is also expected to grow by 29% YoY/ 12% QoQ. Excl. TML subs, EBITDA growth to moderate to
6% YoY/14% QoQ to Rs 55 bn.
n Consequently, EBIDTA margins would expand by 100 bpsYoY/60bps QoQ to 13.9%. Excluding TML subs, margins to
register decline of 150bps YoY due to higher RM costs. However, QoQ margins to expand by 40 bps driven by
operating leverage on higher volumes.
n APAT at Rs 59bn should report a strong growth of 41% YoY/17% QoQ. Ex TML subs, APAT will grow marginally by 6%
YoY/17% QoQ to Rs 35bn input notably Steel, Rubber and Aluminum which have increased 17%, 16% and 7% over
last quarter.
n Only TML (due to JLR) is expected to report YoY margin expansion. QoQ margins expansion will be witnessed in ALL
(390 bps), HH (150 bps), TVS (45 bps), EML (28 bps) and MSIL (22 bps). BAL and M&M are likely to face margin
contraction QoQ/YoY
n We maintain our BUY on BAL, M&M and TML. Post 3QFY11 results, we had upgraded ALL, MSIL and TVS to
ACCUMULATE. We maintain our REDUCE rating on Hero Honda
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