Tulip Telecom Growth on track, Maintain BUY : Emkay

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Tulip Telecom

Growth on track, Maintain BUY

BUY

CMP: Rs 163                                        Target Price: Rs 218

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n     Revenue at Rs 6.4bn (slightly below estimates) grew 20.2% yoy, led higher revenue realization in from the fibre business which aided the strong margins as well

n     Q4FY11 EBIDTA grew 20.8% to Rs1.9bn and APAT grew 25.7% yoy to Rs826mn (our est. of Rs 974mn). Lower PAT was on account of higher interest and tax outgo

n     Net-debt rises to Rs14.3bn at the end of FY11 v/s Rs12.4bn in Q3FY11. Debt/EBITDA stands at 2.7x and D/E at 1.47x  at the end of FY11

n     Cut FY12E EPS by 11.5% due to higher interest & depreciation cost, going forward. Valuations at FY13E EV/EBIDTA of 3.2x & P/E 5.8x. Maintain BUY with TP of Rs218