Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Punj Lloyd (PUJL.BO) Rs62.80
Estimates Under Review Equity Research
First Take: Above expectation revenue growth and EBITDA margin
News
Punj Lloyd reported 1QFY12 revenue of Rs23bn, implying 31% yoy growth
(19% above GS estimate and 15% above Bloomberg consensus estimate).
EBITDA for the quarter was Rs 1.8bn (vs. GS and consensus estimates of
Rs1.4bn and Rs 1.5bn respectively), however, higher finance charges
resulted in Net loss for the quarter of Rs 123mn.
The company has ytd. won orders worth Rs 56bn and has order backlog of
Rs239bn (5% qoq growth). 16% of this order book pertained to the Punj
Lloyd portion of Libya projects
Analysis
Despite the strong yoy revenue growth in the quarter and surprisingly high
EBITDA margin, we remain concerned about the company for the following
reasons:
• Order book of Rs239bn includes Rs37bn of Libya orders, where
there is no likelihood of any progress given the unstable political situation
in the country. In addition, we believe there could be potential losses to
assets/property related to the project.
• The auditors of the company have qualified debtors outstanding of
Rs830mn and unbilled WIP Rs1.66bn during the quarter due to uncertainty
over collection of the amounts. In addition, Rs 900mn of credit for a claim
taken by the company which is pending acceptance by the customer
company has also been qualified by the auditors.
Implications
We place our rating, estimates and target price under review pending
further details from the company.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Punj Lloyd (PUJL.BO) Rs62.80
Estimates Under Review Equity Research
First Take: Above expectation revenue growth and EBITDA margin
News
Punj Lloyd reported 1QFY12 revenue of Rs23bn, implying 31% yoy growth
(19% above GS estimate and 15% above Bloomberg consensus estimate).
EBITDA for the quarter was Rs 1.8bn (vs. GS and consensus estimates of
Rs1.4bn and Rs 1.5bn respectively), however, higher finance charges
resulted in Net loss for the quarter of Rs 123mn.
The company has ytd. won orders worth Rs 56bn and has order backlog of
Rs239bn (5% qoq growth). 16% of this order book pertained to the Punj
Lloyd portion of Libya projects
Analysis
Despite the strong yoy revenue growth in the quarter and surprisingly high
EBITDA margin, we remain concerned about the company for the following
reasons:
• Order book of Rs239bn includes Rs37bn of Libya orders, where
there is no likelihood of any progress given the unstable political situation
in the country. In addition, we believe there could be potential losses to
assets/property related to the project.
• The auditors of the company have qualified debtors outstanding of
Rs830mn and unbilled WIP Rs1.66bn during the quarter due to uncertainty
over collection of the amounts. In addition, Rs 900mn of credit for a claim
taken by the company which is pending acceptance by the customer
company has also been qualified by the auditors.
Implications
We place our rating, estimates and target price under review pending
further details from the company.
No comments:
Post a Comment