Godawari Power & Ispat Steady performance BUY::Emkay

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Godawari Power & Ispat

Steady performance

BUY

CMP: Rs 119                                       Target Price: Rs 193

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n     Performance remained in line with our estimates; consolidated revenues at Rs 4.3 bn was down 13% QoQ. YoY figures not comparable due to mergers during Q4FY11

n     Consolidated EBITDA at Rs 526 mn was down 31% QoQ. EBITDA margin also contracted 309 bps QoQ to 12.3% due to higher employee costs and other expenses

n     Lower interest costs on QoQ basis aided PAT to remain at Rs 106 mn, in line with our estimates; MTM forex loss of Rs 120 mn was not adjusted in the P&L accounts

n     Stable performance likely to continue, however, factoring in higher costs and slowing demand we revise our EPS for FY12 and FY13. Maintain Buy with a revised target price of Rs 193