Transformers & Rectifiers – Q4FY11; Results below estimates; realizations under pressure : Emkay

Please Share:: India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��

Transformers & Rectifiers – Q4FY11 first cut

Results below estimates; realizations under pressure

TRIL’s Q4FY11 revenues grew by 4.6% yoy to Rs2.2bn (Our estimate – Rs2.4bn). Lower realizations led to EBTIDA margin decline by 500bps to 9.7% (our est of 11.9%) as compared to 14.7% in Q4FY10. PAT stood at Rs146mn (down 27% yoy) lower than our estimate of Rs168mn, led by low revenue growth and decline in EBITDA margins. The company’s Q4FY11 EPS stood at Rs11.3/share.

For FY11, the company reported revenues of Rs5.5bn (our est of Rs5.6bn) up 6.7%. EBITDA margins for FY11 stood at 12.3% (our est – 12.1%) down 188bps, Absolute EBITDA stood at Rs674mn down 7.5% yoy. Reported PAT for the full year was Rs412mn (our est - Rs446mn) down 21% yoy. TRIL reported full year EPS of Rs32/share (our est – Rs34.5/share).

At CMP of Rs269, TRIL is trading at 6.7xFY12E earnings and 0.9FY12E Book Value (ROE of 15%). We shall be reviewing our FY12E-13E numbers post concall (scheduled on 25th April). Currently we have ACCUMULATE rating on the stock with PT of Rs315/share.