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http://content.icicidirect.com/mailimages/ICICIdirect_ShivVani_Q3FY12.pdf
D i s a p p o i n t i n g q u a r t e r ; o rd e r s t o p r o v i d e t r i g g e r
Shiv-Vani Oil declared its Q3FY12 results with revenues at | 340 crore,
EBITDA at | 114.6 crore and PAT at | 17 crore. The results were below
our estimates on account of forex losses of | 392.3 crore on debt raised
through the FCCB route. Revenues declined 6.8% YoY to | 340 crore but
grew 5.6% QoQ. However, this sequential QoQ growth in revenues was
mainly due to the topline being impacted due to seasonality in Q2FY12.
The net profit declined sharply by 49% YoY to | 17 crore. Lack of order
intake over the past few quarters has reduced the order book to | 2,300
crore executable over the next two years. Thus, the management has
reduced its guidance for revenues in FY13. We have revised our FY12E
and FY13E EPS estimates to | 25.8 and | 36.1, respectively. High debt
levels and lack of order intake has put pressure on the stock price over
the past few quarters. However, repayment of debt and flow of new order
in FY13, going forward, would provide upside to the stock. We maintain
our BUY rating on Shiv-Vani Oil with a price target of | 253.
ƒ Highlights of the quarter
The EBITDA margins declined 1290 bps YoY to 33.7% in Q3FY12.
We expect the EBITDA margin to stabilise at 43%, going forward.
Shiv-Vani reported a 49% YoY decline in net profit from | 33.3 crore
in Q3FY11 to | 17 crore in Q3FY12.The net profit was below our
estimates due to forex losses of | 392.3 crore on debt raised
through the FCCB route.
V a l u a t i o n
Although Shiv Vani’s order book has declined over the past few quarters,
it still remains the largest player in onshore drilling and seismic services.
Given the increased exploration and production spending by ONGC and
OIL, the order flow to Shiv Vani would remain strong. Shiv-Vani is
currently trading at 5.9x FY13E EPS of | 36.1. We have valued Shiv-Vani
at 7x FY13E EPS, with a price target of | 253.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
http://content.icicidirect.com/mailimages/ICICIdirect_ShivVani_Q3FY12.pdf
D i s a p p o i n t i n g q u a r t e r ; o rd e r s t o p r o v i d e t r i g g e r
Shiv-Vani Oil declared its Q3FY12 results with revenues at | 340 crore,
EBITDA at | 114.6 crore and PAT at | 17 crore. The results were below
our estimates on account of forex losses of | 392.3 crore on debt raised
through the FCCB route. Revenues declined 6.8% YoY to | 340 crore but
grew 5.6% QoQ. However, this sequential QoQ growth in revenues was
mainly due to the topline being impacted due to seasonality in Q2FY12.
The net profit declined sharply by 49% YoY to | 17 crore. Lack of order
intake over the past few quarters has reduced the order book to | 2,300
crore executable over the next two years. Thus, the management has
reduced its guidance for revenues in FY13. We have revised our FY12E
and FY13E EPS estimates to | 25.8 and | 36.1, respectively. High debt
levels and lack of order intake has put pressure on the stock price over
the past few quarters. However, repayment of debt and flow of new order
in FY13, going forward, would provide upside to the stock. We maintain
our BUY rating on Shiv-Vani Oil with a price target of | 253.
ƒ Highlights of the quarter
The EBITDA margins declined 1290 bps YoY to 33.7% in Q3FY12.
We expect the EBITDA margin to stabilise at 43%, going forward.
Shiv-Vani reported a 49% YoY decline in net profit from | 33.3 crore
in Q3FY11 to | 17 crore in Q3FY12.The net profit was below our
estimates due to forex losses of | 392.3 crore on debt raised
through the FCCB route.
V a l u a t i o n
Although Shiv Vani’s order book has declined over the past few quarters,
it still remains the largest player in onshore drilling and seismic services.
Given the increased exploration and production spending by ONGC and
OIL, the order flow to Shiv Vani would remain strong. Shiv-Vani is
currently trading at 5.9x FY13E EPS of | 36.1. We have valued Shiv-Vani
at 7x FY13E EPS, with a price target of | 253.
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