Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
T o u g h t i m e s a h e a d …
BGR Energy (BGR) declared its Q2FY12 results that were significantly
below our estimates. The topline came in at | 772 crore vs. our estimate
of | 956 crore, down 32% YoY. Extended monsoons and a delay in
delivery at a client’s request resulted in a lower-than-expected topline.
EBIDTA margins came in at 14.3% (I-direct estimate: 11.6%). This
increase came primarily due to a higher share of BOP revenues
(comprising 45% of total revenues). PAT fell 34% YoY to | 51 crore vs.
our expectation of | 56 crore as interest outgo increased 120% YoY on
the back of higher working capital requirement.
ƒ Business outlook challenging for FY13
With a current order book of | 7,280 crore, the book to bill ratio stands at
1.7x. The management has guided for additional order flows of | 4,500 -
5,000 crore in H2FY12E (including the NTPC bulk tender order) and FY12
revenues at | 4,850 crore, which are in line with our initial estimates.
Going ahead, given the macro headwinds taking a toll on new
investments, bagging new orders will be a challenge, thereby adversely
impacting FY13E-14E revenue visibility. Hence, we revise our revenue
growth forecast for FY12E and FY13E by 8% and 22% respectively.
ƒ Balance sheet deterioration: key negative surprise
Due to significant exposure to troubled SEBs (from Tamil Nadu and
Rajasthan) the debtor days have gone up to around 310 days, resulting in
higher working capital requirement, which has increased 51% YoY.
Consequently, the debt requirements shot up 62% YoY to | 2307 crore
while the interest expenses amplified 120% YoY in Q2FY12.
V a l u a t i o n
A dry spell in order inflows, and a book to bill ratio of 1.7x will thwart the
growth prospects of BGR, going ahead. Given the high exposure to SEBs
and, consequently, high working capital debts, the bottomline will
languish owing to high interest burden. Hence, we have revised down the
PAT estimate for FY12E and FY13E by 18% and 30%, respectively. We
have revised our target price to | 296 (8x FY13E EPS)
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
T o u g h t i m e s a h e a d …
BGR Energy (BGR) declared its Q2FY12 results that were significantly
below our estimates. The topline came in at | 772 crore vs. our estimate
of | 956 crore, down 32% YoY. Extended monsoons and a delay in
delivery at a client’s request resulted in a lower-than-expected topline.
EBIDTA margins came in at 14.3% (I-direct estimate: 11.6%). This
increase came primarily due to a higher share of BOP revenues
(comprising 45% of total revenues). PAT fell 34% YoY to | 51 crore vs.
our expectation of | 56 crore as interest outgo increased 120% YoY on
the back of higher working capital requirement.
ƒ Business outlook challenging for FY13
With a current order book of | 7,280 crore, the book to bill ratio stands at
1.7x. The management has guided for additional order flows of | 4,500 -
5,000 crore in H2FY12E (including the NTPC bulk tender order) and FY12
revenues at | 4,850 crore, which are in line with our initial estimates.
Going ahead, given the macro headwinds taking a toll on new
investments, bagging new orders will be a challenge, thereby adversely
impacting FY13E-14E revenue visibility. Hence, we revise our revenue
growth forecast for FY12E and FY13E by 8% and 22% respectively.
ƒ Balance sheet deterioration: key negative surprise
Due to significant exposure to troubled SEBs (from Tamil Nadu and
Rajasthan) the debtor days have gone up to around 310 days, resulting in
higher working capital requirement, which has increased 51% YoY.
Consequently, the debt requirements shot up 62% YoY to | 2307 crore
while the interest expenses amplified 120% YoY in Q2FY12.
V a l u a t i o n
A dry spell in order inflows, and a book to bill ratio of 1.7x will thwart the
growth prospects of BGR, going ahead. Given the high exposure to SEBs
and, consequently, high working capital debts, the bottomline will
languish owing to high interest burden. Hence, we have revised down the
PAT estimate for FY12E and FY13E by 18% and 30%, respectively. We
have revised our target price to | 296 (8x FY13E EPS)
No comments:
Post a Comment