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Result Reviews
SAIL
SAIL reported slightly better-than-expected profitability (excluding exceptional items
related to forex loss) for 2QFY2012. Net sales grew by 2.2% yoy to `10,837cr
(slightly below our estimate of `11,135cr) mainly due to increased realization
(+8.7% yoy to `38,023/tonne), partially offset by the decrease in sales volumes
(down 5.9% yoy to 2.9mn tonnes). Despite increased realization, EBITDA dipped
by 13.9 % yoy to `1,327cr and EBITDA margin contracted by 230bp yoy to 12.2%
(higher than our estimate of 11.6%) mainly on account of increases in power and
staff costs. Power costs grew by 28.2% yoy to `1,124cr, while staff costs grew by
16.5% yoy to `1,981cr. EBITDA/tonne stood at `4,657 in 2QFY2012, compared
to `5,090 in 2QFY2011. The company reported an exceptional item related to
forex loss of `509cr in 2QFY2012, compared to forex gain of `153cr in
2QFY2011. Hence, net profit decreased by 54.6% yoy to `495cr. However,
excluding exceptional items, adjusted net profit grew by 7.0% yoy to `1,003cr
(above our estimate of `836cr) in 2QFY2012. We maintain our Buy view on the
stock; our target price is under review.
Gujarat Gas
Gujarat Gas reported its 3QCY2011 results. The company’s top line increased by
29.1% yoy to `644cr mainly on account of higher realization. Average sales
realization stood at `19.7/scm (+24.7% yoy and +3.4% qoq), led by hike in
selling prices of the industrial retail and CNG segments. Natural gas volume sold
grew by 3.5% yoy to 326mmscm during the quarter. The company’s cost of goods
sold increased by 28.8% yoy to `490cr on account of higher proportion of
expensive RLNG sales coupled with INR depreciation against the USD. Hence,
EBITDA grew by 30.4% yoy (in-line with growth in net sales) to `118cr. Other
income grew by 100.9% yoy to `10cr. Consequently, the company’s net profit
grew by 41.7% yoy to `80cr. We maintain our Neutral view on the stock.
Ashok Leyland
Ashok Leyland (AL) reported better-than-expected results for 2QFY2012 on
account of above expectation operating margin performance.
AL reported 14% yoy growth in its top line to `3,095cr, driven by an 18.7% yoy
increase in average net realization. Volume performance, however, was subdued
during the quarter, reporting a 3.9% yoy decline. Average net realization improved
to `130,970 on account of price increases to mitigate raw-material cost pressures
and emission norm changes. On a sequential basis, revenue jumped strongly by
24% as volumes increased by 22.6%. On the operating front, EBITDA margin
came in at 10.7%, down 58bp yoy; however it was ahead of our estimates of
9.4%. Sequentially, operating margin expanded by 128bp from 9.4%, largely due
to improved operating leverage, better product mix and a decline in other
expenditure. Raw-material cost was more or less stable on a yoy and qoq basis. As
a result, operating profit grew by 8.1% yoy (40.8% qoq). Net profit, however,
declined by 7.8% yoy to `154cr mainly due to higher interest and depreciation
expense. Sequentially, net profit grew substantially by 78.6% on account of
improved operating performance, higher other income and lower tax-rate. The
stock rating is currently under review.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Result Reviews
SAIL
SAIL reported slightly better-than-expected profitability (excluding exceptional items
related to forex loss) for 2QFY2012. Net sales grew by 2.2% yoy to `10,837cr
(slightly below our estimate of `11,135cr) mainly due to increased realization
(+8.7% yoy to `38,023/tonne), partially offset by the decrease in sales volumes
(down 5.9% yoy to 2.9mn tonnes). Despite increased realization, EBITDA dipped
by 13.9 % yoy to `1,327cr and EBITDA margin contracted by 230bp yoy to 12.2%
(higher than our estimate of 11.6%) mainly on account of increases in power and
staff costs. Power costs grew by 28.2% yoy to `1,124cr, while staff costs grew by
16.5% yoy to `1,981cr. EBITDA/tonne stood at `4,657 in 2QFY2012, compared
to `5,090 in 2QFY2011. The company reported an exceptional item related to
forex loss of `509cr in 2QFY2012, compared to forex gain of `153cr in
2QFY2011. Hence, net profit decreased by 54.6% yoy to `495cr. However,
excluding exceptional items, adjusted net profit grew by 7.0% yoy to `1,003cr
(above our estimate of `836cr) in 2QFY2012. We maintain our Buy view on the
stock; our target price is under review.
Gujarat Gas
Gujarat Gas reported its 3QCY2011 results. The company’s top line increased by
29.1% yoy to `644cr mainly on account of higher realization. Average sales
realization stood at `19.7/scm (+24.7% yoy and +3.4% qoq), led by hike in
selling prices of the industrial retail and CNG segments. Natural gas volume sold
grew by 3.5% yoy to 326mmscm during the quarter. The company’s cost of goods
sold increased by 28.8% yoy to `490cr on account of higher proportion of
expensive RLNG sales coupled with INR depreciation against the USD. Hence,
EBITDA grew by 30.4% yoy (in-line with growth in net sales) to `118cr. Other
income grew by 100.9% yoy to `10cr. Consequently, the company’s net profit
grew by 41.7% yoy to `80cr. We maintain our Neutral view on the stock.
Ashok Leyland
Ashok Leyland (AL) reported better-than-expected results for 2QFY2012 on
account of above expectation operating margin performance.
AL reported 14% yoy growth in its top line to `3,095cr, driven by an 18.7% yoy
increase in average net realization. Volume performance, however, was subdued
during the quarter, reporting a 3.9% yoy decline. Average net realization improved
to `130,970 on account of price increases to mitigate raw-material cost pressures
and emission norm changes. On a sequential basis, revenue jumped strongly by
24% as volumes increased by 22.6%. On the operating front, EBITDA margin
came in at 10.7%, down 58bp yoy; however it was ahead of our estimates of
9.4%. Sequentially, operating margin expanded by 128bp from 9.4%, largely due
to improved operating leverage, better product mix and a decline in other
expenditure. Raw-material cost was more or less stable on a yoy and qoq basis. As
a result, operating profit grew by 8.1% yoy (40.8% qoq). Net profit, however,
declined by 7.8% yoy to `154cr mainly due to higher interest and depreciation
expense. Sequentially, net profit grew substantially by 78.6% on account of
improved operating performance, higher other income and lower tax-rate. The
stock rating is currently under review.
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