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B e t t e r - t h a n - e x p e c t e d r e s u l t s …
Tulip Telecom reported Q2FY12 numbers, which were better than our
estimates with topline at | 702.9 crore against our expectation of | 674.8
crore, registering growth of 20.1% YoY and 7.5% QoQ, primarily on
account of a rise in order input from high bandwidth fibre services.
EBITDA for the quarter stood at | 203.2 crore, at 28.9% of revenue,
growing 24.4% YoY. PAT stood at | 87.1 crore against our expectation of
| 82.1 crore. Interest cost rose sharply by 8.2% QoQ to | 34.5 crore on
account of an increase in total debt from | 1922.0 crore in Q1FY12 to |
2220.6 crore in Q2FY12 and also a rise in interest rates.
Highlights of the quarter
The company continues to see high traction on the newly laid fibre optic
cable business, with about 83% of new orders received in Q2FY12 on
fibre optic. The company also added various new clients in this quarter,
which includes Sahara India, Financial Corporation, Tata Interactive,
Euronet and IIHT among others.
Data Connectivity formed ~62% of the total revenues, managed services
including data centre formed ~32% whereas network integration
contributed ~ 6% to total revenues.
V a l u a t i o n
The company’s recent venture into the fibre optic business has shown
good traction with 83% of new orders coming on the fibre network. The
newly acquired data centre is scheduled to start booking revenues from
Q3FY12. We have estimated utilisation level of ~ 30% in the data centre
business in FY13. We estimate 20.4% CAGR (FY11-13E) in revenue to |
3408.2 crore in FY13 from | 2351.1 crore in FY11 while PAT is expected to
grow at 20.4% CAGR over same period to | 444.0 crore from 306.4 crore
in FY11. At the current market price of | 151, the stock is trading at 7.2x
FY12E diluted EPS of | 20.9 and 5.6x FY13E diluted EPS of | 27.0. We
value the stock at 7x FY13E EPS and arrive at a target price of | 189. This
implies an upside of 25%. The high levels of debt can remain an overhang
on the stock. We maintain our BUY rating on the stock.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
B e t t e r - t h a n - e x p e c t e d r e s u l t s …
Tulip Telecom reported Q2FY12 numbers, which were better than our
estimates with topline at | 702.9 crore against our expectation of | 674.8
crore, registering growth of 20.1% YoY and 7.5% QoQ, primarily on
account of a rise in order input from high bandwidth fibre services.
EBITDA for the quarter stood at | 203.2 crore, at 28.9% of revenue,
growing 24.4% YoY. PAT stood at | 87.1 crore against our expectation of
| 82.1 crore. Interest cost rose sharply by 8.2% QoQ to | 34.5 crore on
account of an increase in total debt from | 1922.0 crore in Q1FY12 to |
2220.6 crore in Q2FY12 and also a rise in interest rates.
Highlights of the quarter
The company continues to see high traction on the newly laid fibre optic
cable business, with about 83% of new orders received in Q2FY12 on
fibre optic. The company also added various new clients in this quarter,
which includes Sahara India, Financial Corporation, Tata Interactive,
Euronet and IIHT among others.
Data Connectivity formed ~62% of the total revenues, managed services
including data centre formed ~32% whereas network integration
contributed ~ 6% to total revenues.
V a l u a t i o n
The company’s recent venture into the fibre optic business has shown
good traction with 83% of new orders coming on the fibre network. The
newly acquired data centre is scheduled to start booking revenues from
Q3FY12. We have estimated utilisation level of ~ 30% in the data centre
business in FY13. We estimate 20.4% CAGR (FY11-13E) in revenue to |
3408.2 crore in FY13 from | 2351.1 crore in FY11 while PAT is expected to
grow at 20.4% CAGR over same period to | 444.0 crore from 306.4 crore
in FY11. At the current market price of | 151, the stock is trading at 7.2x
FY12E diluted EPS of | 20.9 and 5.6x FY13E diluted EPS of | 27.0. We
value the stock at 7x FY13E EPS and arrive at a target price of | 189. This
implies an upside of 25%. The high levels of debt can remain an overhang
on the stock. We maintain our BUY rating on the stock.
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