Coromandel International Results disappoint on margins :: Emkay

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Coromandel International

Results disappoint on margins

BUY

CMP: Rs 324                                       Target Price: Rs 435

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n     Q4FY11 results were disappointing with APAT of Rs 404 mn,  -51% yoy, mainly on account of lower sales volumes

n     Revenues declined by 13.6% to Rs 11.8 bn (adjusted for reversal of bond loss) due to 21% decline in volumes

n     EBITDA margins at 5.7% (-310 bps yoy) vs estimated 11.2% were adversely affected due to lower operating leverage

n     Downgrade FY12E estimates by 8% to Rs 26.4, introduce FY13E EPS estimates of Rs 32.3 while maintain BUY