Sintex results – Profits miss slightly on sharp rise in interest expense::Emkay

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Sintex results – Profits miss slightly on sharp rise in interest expense, revenue & EBIDTA in-line – First cut

n    Interest expenses reported at Rs350mn v/s expectations of Rs270mn, caused profit miss

n    Revenue growth at 22%, in line - Some shortfall in standalone made up by subsidiaries

n    EBITDA margins at 17%, in line, lower margins in subsidiaries made up by higher in standalone

n    PAT of Rs946mn, up 20% yoy, versus our estimate of Rs1.0bn

n    Our EPS estimates of Rs20.3/23.8 values the stock at 8.7x / 7.4x for FY12E /FY13E. Retain accumulate rating.

n    Await clarity on change in debt and the interest cost as the rise of 40% appears very high.

n    Overall, operationally the results are in-line, while earnings change if any post the concall today, would be largely on account of interest expenses.