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Result highlights
Net sales up 15%, below estimates: In Q3FY2011 the stand-alone revenue of
Gayatri Projects Ltd (GPL) grew by 15% year on year (YoY) to Rs384 crore,
which was below our expectation. The top line growth during the quarter was
subdued due to an extended monsoon in October.
Better operating margin: The operating profit margin (OPM) expanded by 162
basis points YoY to 13.9% on account of revenue booking in case of its high
margin power project. The management expects to sustain the margin around
13%, as the proportion of power orders increases in its overall order book. Due
to better margins, the earnings before interest, tax, depreciation and
amortization (EBITDA) for the quarter grew 30% YoY.
Net profit growth at 15%, in line with estimates: The net profit for Q3FY2011
grew by just 15.5% YoY to Rs17.7 crore (in line with estimates) despite a 30%
growth in EBITDA. A sharp jump in interest costs due to hardening of interest
rates and higher debt level limited the growth.
Update on its power portfolio: Gayatri Energy Ventures (GEVL), the holding
company for all power projects of GPL, has received the first tranche of money
of Rs364 crore from Sembcorp for its Krishnapatnam power project in Andhra
Pradesh (AP) wherein the latter had purchased a 49% stake for Rs1,100 crore.
Further GEVL also plans to set up two more power plants in AP and Maharashtra.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Result highlights
Net sales up 15%, below estimates: In Q3FY2011 the stand-alone revenue of
Gayatri Projects Ltd (GPL) grew by 15% year on year (YoY) to Rs384 crore,
which was below our expectation. The top line growth during the quarter was
subdued due to an extended monsoon in October.
Better operating margin: The operating profit margin (OPM) expanded by 162
basis points YoY to 13.9% on account of revenue booking in case of its high
margin power project. The management expects to sustain the margin around
13%, as the proportion of power orders increases in its overall order book. Due
to better margins, the earnings before interest, tax, depreciation and
amortization (EBITDA) for the quarter grew 30% YoY.
Net profit growth at 15%, in line with estimates: The net profit for Q3FY2011
grew by just 15.5% YoY to Rs17.7 crore (in line with estimates) despite a 30%
growth in EBITDA. A sharp jump in interest costs due to hardening of interest
rates and higher debt level limited the growth.
Update on its power portfolio: Gayatri Energy Ventures (GEVL), the holding
company for all power projects of GPL, has received the first tranche of money
of Rs364 crore from Sembcorp for its Krishnapatnam power project in Andhra
Pradesh (AP) wherein the latter had purchased a 49% stake for Rs1,100 crore.
Further GEVL also plans to set up two more power plants in AP and Maharashtra.
