Himatsingka Seide - Manufacturing Shines, Retail & Distribution Disappoints; Result Update Q2FY15 :: Edelweiss, PDF link

Please Share::

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

��

-->

Himatsingka Seide (HSL) reported mixed numbers for Q2FY15 with manufacturing doing well, while retail & distribution (R&D) disappointed. Consolidated revenues came in below estimates at INR5.2bn, down 5.8% YoY as subsidiary revenues fell 11% YoY at INR2.7bn and manufacturing business recorded flat YoY growth to INR2.5bn. EBITDA margin improved by 40bps YoY to 10.4% led by better asset utilisation and lower other expenses. Standalone EBITDA spurted 54% YoY to INR442mn, but subsidiaries witnessed 64% YoY drop to INR95mn. PBT fell 6.1% YoY. However, tax write-back resulted in PAT clocking 30% YoY growth to INR235mn.

Manufacturing: Good performance led by margin expansion

Manufacturing (standalone) revenues were flat YoY at INR2.5bn. EBITDA margin at 17.6% surged by 616bps YoY, driven by sweating of capacity and lower other expenses due to forex gains versus forex loss in the corresponding quarter of previous year. While bed linen division clocked 89% capacity utilization, the drapery/upholstery segment registered 56%. Management indicated benefits of lower yarn prices should flow in from Q3FY15.

Retail & distribution: Currency, store closures impact performance

Distribution revenues in North America stood at INR4.4bn, down 3% YoY but flat on constant currency basis. Bellora recorded revenues of INR199mn (down 35% YoY) because of a large programme order last year and store closures but EBITDA for H1FY15 was positive. Performance of Atmosphere brand stood lower at INR123mn.

LINK

https://www.edelweiss.in/research/Himatsingka-Seide--Manufacturing-Shines,-Retail-And-Distribution-Disappoints;-Result-Update-Q2FY15/27560.html