Global Offshore Services- Results below estimates- Forex losses drag RPAT:: Emkay

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Global Offshore Services

Results below estimates- Forex losses drag RPAT

HOLD

CMP: Rs 133                                       Target Price: Rs 128

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n     GOSL’s Q4FY11 EBIDTA at Rs218 mn in line. APAT at Rs38.7 mn (-40.7% yoy) below estimates on account of higher interest & depreciation charges

n     Revenues (-11% yoy) due to lower utilization of fleet. Expect FY12E revenues to grow 17.4% yoy driven by deployment of new vessel & higher utilisation for the fleet

n     However, we cut FY12E estimates by 12.2% on sale of vessel PSV “M.V. Mana”. Introduce FY13 EPS at Rs20

n     Stock trades at 7X FY12 earnings & EBIDTA, which leaves little upside. Downgrade the stock to HOLD. Tweak target marginally to Rs128 (Rs130 earlier) to factor EPS downgrade