Praj Industries - Good Show; Result Update Q2FY15 :: Edelweiss, PDF link

Please Share::

�� India Equity Research Reports, IPO and Stock News Visit http://indiaer.blogspot.com/ for complete details ��

��

-->

For Q2FY15, Praj Industries (Praj) reported higher-than-estimated 36% YoY growth in top-line, led by commissioning of brewery projects. At INR115mn, adjusted PAT jumped 84% albeit on a low base, driven by strong operating performance. Though Praj reported 25% growth in order intake due to healthy ethanol segment, order book remained low (down 25% YoY and flat QoQ) for the second consecutive quarter. The company expects order intake to pick up incrementally riding improving blending mandates from Europe, Indonesia and Brazil, healthy traction in emerging markets for the brewery segment and rising overseas penetration in high purity business. We trim our earnings estimates by 10% and 6% for FY15E and FY16E respectively, building in higher depreciation and lower other income.

Sales soared on commissioning of brewery projects

Praj commissioned several projects during the quarter including the SAB miller brewery project, which led to strong beat in revenue and EBIDTA, though on a low base. Margins adjusted for forex gain of INR27mn improved by 130bps YoY to 5.9%. PAT adjusted for forex gain and reversal of tax provisions (~INR108mn) made for earlier years came in at INR115mn, up 84% YoY.

Order intake improved 25% YoY; order book needs tracking

Order intake improved 25%, led by the ethanol segment. Order book however, remained at low levels (down 25% YoY and flat QoQ) .Management expects order intake to pick up incrementally, led by better project finalisations in ethanol, rising penetration of Praj’s high purity systems abroad and pick up in water business (industrial segment) owing to stringent regulatory framework.

link

https://www.edelweiss.in/research/Praj-Industries--Good-Show;-Result-Update-Q2FY15/27306.html