Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
H i g h i n t e r e s t c o s t c o n t i n u e s t o r ema i n a c o n c e r n
Bajaj Hindustan posted dismal results for Q3SY11. Net sales witnessed a
16.1% decline QoQ on the back of a dip in power sales. This also resulted
in a decline in EBITDA margins from 25.3% to 21.4%. Interest cost
increased 8.5% to | 141.8 crore on the back of high working capital
requirement and increase in the cost of debt. The company posted a net
profit of | 1.1 crore, a significant decline due to lower EBITDA and high
interest cost.
Operational highlights
Sugar revenues witnessed de-growth from | 1169 crore in Q2SY11 to |
974 crore as the company has not exported any quantity this quarter. The
distillery segment reported | 86 crore of sales as against | 89 crore in
Q2SY11. However, sales from power witnessed a sharp decline from |
135 crore in Q2SY11 to | 12.5 crore on the back of lower sales volumes.
The company produced 10.37 lakh tonnes (lt) of sugar in the current
season, which includes 9.51 lt from sugarcane and the rest from raw
sugar. The company has sold 3.45 lt in the current quarter at an average
realisation of | 27.6 per kg. The company has sold 3.25 crore litre of
ethanol/alcohol at an average price realisations of | 27.1 per litre. The
company has sold 1.7 crore units at an average tariff price of | 4.1/unit.
Valuation
At the current price of | 55, the stock is trading at 6.3x its SY11E EPS of |
8.8 and 5.2x its FY12E EPS of | 10.4. With the sugar production expected
to rise to 26.5 million tonnes (MT) in SY12, inventories after the season
would remain at high levels. However, we expect the government to
continue to allow sugar exports in trenches, which would result in lower
inventories at the end of the season. We believe due to high debt and
high interest outgo, earnings in the next few quarters would remain under
pressure though most of the negatives are in the prices. Hence, we
maintain our HOLD rating on the stock.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
H i g h i n t e r e s t c o s t c o n t i n u e s t o r ema i n a c o n c e r n
Bajaj Hindustan posted dismal results for Q3SY11. Net sales witnessed a
16.1% decline QoQ on the back of a dip in power sales. This also resulted
in a decline in EBITDA margins from 25.3% to 21.4%. Interest cost
increased 8.5% to | 141.8 crore on the back of high working capital
requirement and increase in the cost of debt. The company posted a net
profit of | 1.1 crore, a significant decline due to lower EBITDA and high
interest cost.
Operational highlights
Sugar revenues witnessed de-growth from | 1169 crore in Q2SY11 to |
974 crore as the company has not exported any quantity this quarter. The
distillery segment reported | 86 crore of sales as against | 89 crore in
Q2SY11. However, sales from power witnessed a sharp decline from |
135 crore in Q2SY11 to | 12.5 crore on the back of lower sales volumes.
The company produced 10.37 lakh tonnes (lt) of sugar in the current
season, which includes 9.51 lt from sugarcane and the rest from raw
sugar. The company has sold 3.45 lt in the current quarter at an average
realisation of | 27.6 per kg. The company has sold 3.25 crore litre of
ethanol/alcohol at an average price realisations of | 27.1 per litre. The
company has sold 1.7 crore units at an average tariff price of | 4.1/unit.
Valuation
At the current price of | 55, the stock is trading at 6.3x its SY11E EPS of |
8.8 and 5.2x its FY12E EPS of | 10.4. With the sugar production expected
to rise to 26.5 million tonnes (MT) in SY12, inventories after the season
would remain at high levels. However, we expect the government to
continue to allow sugar exports in trenches, which would result in lower
inventories at the end of the season. We believe due to high debt and
high interest outgo, earnings in the next few quarters would remain under
pressure though most of the negatives are in the prices. Hence, we
maintain our HOLD rating on the stock.
No comments:
Post a Comment