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Q3FY12 – Net sales growth driven by strong volume from copper CC rod
• Net sales for the Q3FY12 stood at `3,465 mn, showing a growth of 12.6% Y-o-Y and 28.4%
sequentially. This was mainly on account of strong increase in sales volume of Copper CC rods.
• Total expenditure rose by 73.2% Y-o-Y; which was partly on account of increase in production
volume and rise in other expenditure. The other expenditure which accounted for 51% of the
overall expense rose by 47.7% on Y-o-Y. The power & fuel cost which accounted for 16.7% of
the overall cost rose by 25.7% on Y-o-Y basis.
• As a result of increase in production costs coupled with decrease in realisation of copper CC
rods; EBIDTA margins for Q3FY12 declined by 1,064bps to 26.8% Y-o-Y.
Result Highlights
Significant growth in volume for copper CC rod contributed to the growth
Copper CC rod accounted for 96% of total revenue in Q3FY12. The volume for Copper CC rods in
Q3FY12 grew by 34.6% Y-o-Y and 98.3% Q-o-Q. However; realisation for the products were lower by
4.7% Y-o-Y and 9.9% Q-o-Q. Similarly, Copper cathode which accounted for 3.6% of total revenues
in Q3FY12; saw sales volume decline by 82.7% Y-o-Y and 83.5% Q-o-Q. However; the realisation for
copper cathode rose by 2.3% Y-o-Y.
Valuation & Viewpoint
At current market price the stock is trading at 100.3x its EV/EBIDTA and 111.3x its P/E (trailing 12
months). The average P/E for the sector stands at 47.9x making us believe the current valuation
are stretched and could result in the stock correcting in the future.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Q3FY12 – Net sales growth driven by strong volume from copper CC rod
• Net sales for the Q3FY12 stood at `3,465 mn, showing a growth of 12.6% Y-o-Y and 28.4%
sequentially. This was mainly on account of strong increase in sales volume of Copper CC rods.
• Total expenditure rose by 73.2% Y-o-Y; which was partly on account of increase in production
volume and rise in other expenditure. The other expenditure which accounted for 51% of the
overall expense rose by 47.7% on Y-o-Y. The power & fuel cost which accounted for 16.7% of
the overall cost rose by 25.7% on Y-o-Y basis.
• As a result of increase in production costs coupled with decrease in realisation of copper CC
rods; EBIDTA margins for Q3FY12 declined by 1,064bps to 26.8% Y-o-Y.
Result Highlights
Significant growth in volume for copper CC rod contributed to the growth
Copper CC rod accounted for 96% of total revenue in Q3FY12. The volume for Copper CC rods in
Q3FY12 grew by 34.6% Y-o-Y and 98.3% Q-o-Q. However; realisation for the products were lower by
4.7% Y-o-Y and 9.9% Q-o-Q. Similarly, Copper cathode which accounted for 3.6% of total revenues
in Q3FY12; saw sales volume decline by 82.7% Y-o-Y and 83.5% Q-o-Q. However; the realisation for
copper cathode rose by 2.3% Y-o-Y.
Valuation & Viewpoint
At current market price the stock is trading at 100.3x its EV/EBIDTA and 111.3x its P/E (trailing 12
months). The average P/E for the sector stands at 47.9x making us believe the current valuation
are stretched and could result in the stock correcting in the future.
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