Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Hindustan Construction
Inline EBITDA, PAT disappoint for 4Q
HCC for 4Q reported inline EBITDA, but high interest expenses led to PAT
disappointment. Management highlighted slowdown in order inflow and
ballooning receivables. We feel Lavasa dispute resolution is still few months
away. With valuations attractive, we look for triggers to upgrade from Hold.
4QFY11 results - impressive margins, but high interest cost hits PAT
! Net sales Rs.12.1bn, +11.3% yoy, +20.7% qoq. RBS est Rs.12.9bn
! EBITDA margin 14.4%, +290bps yoy and +180bps qoq. RBS est 13.5%.
! EBITDA Rs.1.74bn, +39% yoy and 38% qoq. RBS est Rs.1.74bn.
! Interest expenses rise +30% qoq and +32% yoy to Rs.903mn.
! Other income involves forex gain of Rs.116.5mn, which we consider as extraordinary item.
! Company share in JV is a loss of Rs.74mn.
! We adjust tax rate to 35% as company provides for previous quarters taxation towards
section 14(A).
! Normalised PAT is Rs.219mn, drop of 26% yoy but +30% qoq. RBS est Rs.400mn.
! Reported PAT is Rs.226mn.
! Net Debt is Rs.32.8bn, Net D:E is 2.2
! Parent EPS is Rs.0.4.
! Consolidate entity slipped into huge net loss of Rs.6.4bn in FY11, due to Lavasa subsidiary
losses and reversal of HCC infra profits for last year, due to accounting policy change.
! Order book is Rs.181.27bn, -2% qoq. Lowest bidder (L1) in Rs.12bn worth of projects.
Management highlighted slowdown in many of government orders awarding, which leads to
no guidance by management on sales growth and order inflow for FY12F.
! Management attributed key reasons for improved margins to crossing of threshold limit (10%
of project completion) by Kishanganga and West Bengal road projects in the quarter, thereby
helping book margins for entire work and not just for quarter sales. Management guides for
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Hindustan Construction
Inline EBITDA, PAT disappoint for 4Q
HCC for 4Q reported inline EBITDA, but high interest expenses led to PAT
disappointment. Management highlighted slowdown in order inflow and
ballooning receivables. We feel Lavasa dispute resolution is still few months
away. With valuations attractive, we look for triggers to upgrade from Hold.
4QFY11 results - impressive margins, but high interest cost hits PAT
! Net sales Rs.12.1bn, +11.3% yoy, +20.7% qoq. RBS est Rs.12.9bn
! EBITDA margin 14.4%, +290bps yoy and +180bps qoq. RBS est 13.5%.
! EBITDA Rs.1.74bn, +39% yoy and 38% qoq. RBS est Rs.1.74bn.
! Interest expenses rise +30% qoq and +32% yoy to Rs.903mn.
! Other income involves forex gain of Rs.116.5mn, which we consider as extraordinary item.
! Company share in JV is a loss of Rs.74mn.
! We adjust tax rate to 35% as company provides for previous quarters taxation towards
section 14(A).
! Normalised PAT is Rs.219mn, drop of 26% yoy but +30% qoq. RBS est Rs.400mn.
! Reported PAT is Rs.226mn.
! Net Debt is Rs.32.8bn, Net D:E is 2.2
! Parent EPS is Rs.0.4.
! Consolidate entity slipped into huge net loss of Rs.6.4bn in FY11, due to Lavasa subsidiary
losses and reversal of HCC infra profits for last year, due to accounting policy change.
! Order book is Rs.181.27bn, -2% qoq. Lowest bidder (L1) in Rs.12bn worth of projects.
Management highlighted slowdown in many of government orders awarding, which leads to
no guidance by management on sales growth and order inflow for FY12F.
! Management attributed key reasons for improved margins to crossing of threshold limit (10%
of project completion) by Kishanganga and West Bengal road projects in the quarter, thereby
helping book margins for entire work and not just for quarter sales. Management guides for
No comments:
Post a Comment