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CCCL
Consolidated Construction Consortium Ltd. (CCCL) posted a dismal set of
numbers once again for 2QFY2012. The company’s top line grew by 9.5% yoy to
`535.8cr (`489.5cr), above our estimate of `465.0cr. However, a major
disappointment came on the margin front, as CCCL posted abysmal EBITDA
margin of 1.4% (7.8%), reporting a drop of 640bp yoy, against our expectation of
5.2%. On a sequential basis as well, the company’s margin witnessed a decline of
340bp. The decline in margin can mainly be attributed to commodity price
pressures, along with increased employee cost and labor cost. Further, on the
bottom-line front, the company posted loss of `18.7cr vs. profit of `13.7cr in
2QFY2011 and against our expectation of `1.4cr profit, mainly on account of
lower margin and higher interest cost (`17.2cr, a jump of 42.1%/11.3% yoy/qoq).
CCCL reported an order inflow of `321cr during the quarter, taking its
outstanding order book to `5,936cr. The company has been disappointing on the
earnings front and posting erratic margins since the last few quarters. Hence,
we maintain our Neutral view on the stock.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
CCCL
Consolidated Construction Consortium Ltd. (CCCL) posted a dismal set of
numbers once again for 2QFY2012. The company’s top line grew by 9.5% yoy to
`535.8cr (`489.5cr), above our estimate of `465.0cr. However, a major
disappointment came on the margin front, as CCCL posted abysmal EBITDA
margin of 1.4% (7.8%), reporting a drop of 640bp yoy, against our expectation of
5.2%. On a sequential basis as well, the company’s margin witnessed a decline of
340bp. The decline in margin can mainly be attributed to commodity price
pressures, along with increased employee cost and labor cost. Further, on the
bottom-line front, the company posted loss of `18.7cr vs. profit of `13.7cr in
2QFY2011 and against our expectation of `1.4cr profit, mainly on account of
lower margin and higher interest cost (`17.2cr, a jump of 42.1%/11.3% yoy/qoq).
CCCL reported an order inflow of `321cr during the quarter, taking its
outstanding order book to `5,936cr. The company has been disappointing on the
earnings front and posting erratic margins since the last few quarters. Hence,
we maintain our Neutral view on the stock.
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