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1QFY2012 Result Reviews
Bharat Forge
Bharat Forge (BFL) reported an in-line 36.1% yoy (4.4% qoq) jump in standalone revenue
to `858cr, driven by a 17.4% yoy (2.2% qoq) jump in domestic revenue and 67.1% yoy
(6.4% qoq) jump in exports revenue. While volume in tonnage terms increased by 24.2%
yoy (3.3% qoq) to 52,959MT on strong export demand, average net realisation grew by
9.7% yoy (flat qoq) in 1QFY2012. Strong growth in the CV segment and non-auto
segment in the Europe and US benefitted the company’s exports performance. On the
operating front, margins remained flat on a yoy and qoq basis at 24.3%. Net profit grew
by strong 63.9% yoy (down 3% qoq) to `97cr, led by strong operating performance and
improved operating leverage. Higher other income at `15cr (up 45% yoy) also aided better
growth in net profit to a certain extent.
On a consolidated basis, BFL reported better-than-expected 37% yoy (1.5% qoq) growth in
its top line to `1,568cr. EBITDA margin came in marginally lower than our estimate at
15.8%, down 23bp yoy (47bp qoq). However PBT grew by 60% yoy (2.3% qoq) to `153cr.
At `285, BFL is trading at 15x and 12x FY2012E and FY2013E earnings, respectively.
The stock rating is currently under review, as we wait for more clarity from the
management on profitability at the consolidated levels.
Page Industries
Page Industries reported strong top-line growth of 47.6%% yoy to `176cr (`120cr) in
1QFY2012. Operating profit increased by 99.6% yoy to `44cr (`22cr) on the back of strong
revenue growth and OPM expansion. OPM increased by 622bp to 24.8% (18.6%), mainly
because of lower-than-expected raw-material cost and other expenditure, which declined to
49.4% and 10.3% of sales in 1QFY2012 vs. 50.5% and 13.5% in 1QFY2011. Despite strong
expansion in OPM, PAT margin increased by 425bp yoy to 15.7% (11.4%) largely due to higher
interest cost and tax provision during the quarter. PAT came in at `28cr (`14cr), up 102.1%
yoy. We continue to recommend Neutral on the stock. We may revise our estimates post
management interaction.
LMW
Lakshmi Machine Works (LMW) reported strong top-line growth of 50.3% yoy to `502cr
(`334cr) in 1QFY2012. Operating profit increased by 27.1% yoy to `71cr (`56cr) on the back
of strong revenue growth. OPM fell by 227bp to 13.9% (16.1%), mainly because of
higher-than-expected other expenditure, which increased to 17.3% of sales vs. 15.8% in
1QFY2011. Despite OPM contraction, PAT margin only declined by 66bp yoy to 8.0% (8.7%),
largely due to higher other income and lower tax rate. PAT came in at `41cr (`30cr), up 36.7%
yoy. We continue to recommend Buy on the stock. We will be coming out with a detailed report
post management interaction.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
1QFY2012 Result Reviews
Bharat Forge
Bharat Forge (BFL) reported an in-line 36.1% yoy (4.4% qoq) jump in standalone revenue
to `858cr, driven by a 17.4% yoy (2.2% qoq) jump in domestic revenue and 67.1% yoy
(6.4% qoq) jump in exports revenue. While volume in tonnage terms increased by 24.2%
yoy (3.3% qoq) to 52,959MT on strong export demand, average net realisation grew by
9.7% yoy (flat qoq) in 1QFY2012. Strong growth in the CV segment and non-auto
segment in the Europe and US benefitted the company’s exports performance. On the
operating front, margins remained flat on a yoy and qoq basis at 24.3%. Net profit grew
by strong 63.9% yoy (down 3% qoq) to `97cr, led by strong operating performance and
improved operating leverage. Higher other income at `15cr (up 45% yoy) also aided better
growth in net profit to a certain extent.
On a consolidated basis, BFL reported better-than-expected 37% yoy (1.5% qoq) growth in
its top line to `1,568cr. EBITDA margin came in marginally lower than our estimate at
15.8%, down 23bp yoy (47bp qoq). However PBT grew by 60% yoy (2.3% qoq) to `153cr.
At `285, BFL is trading at 15x and 12x FY2012E and FY2013E earnings, respectively.
The stock rating is currently under review, as we wait for more clarity from the
management on profitability at the consolidated levels.
Page Industries
Page Industries reported strong top-line growth of 47.6%% yoy to `176cr (`120cr) in
1QFY2012. Operating profit increased by 99.6% yoy to `44cr (`22cr) on the back of strong
revenue growth and OPM expansion. OPM increased by 622bp to 24.8% (18.6%), mainly
because of lower-than-expected raw-material cost and other expenditure, which declined to
49.4% and 10.3% of sales in 1QFY2012 vs. 50.5% and 13.5% in 1QFY2011. Despite strong
expansion in OPM, PAT margin increased by 425bp yoy to 15.7% (11.4%) largely due to higher
interest cost and tax provision during the quarter. PAT came in at `28cr (`14cr), up 102.1%
yoy. We continue to recommend Neutral on the stock. We may revise our estimates post
management interaction.
LMW
Lakshmi Machine Works (LMW) reported strong top-line growth of 50.3% yoy to `502cr
(`334cr) in 1QFY2012. Operating profit increased by 27.1% yoy to `71cr (`56cr) on the back
of strong revenue growth. OPM fell by 227bp to 13.9% (16.1%), mainly because of
higher-than-expected other expenditure, which increased to 17.3% of sales vs. 15.8% in
1QFY2011. Despite OPM contraction, PAT margin only declined by 66bp yoy to 8.0% (8.7%),
largely due to higher other income and lower tax rate. PAT came in at `41cr (`30cr), up 36.7%
yoy. We continue to recommend Buy on the stock. We will be coming out with a detailed report
post management interaction.
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