Result Review 4QFY2013

Cairn India

Cairn India 4QFY2013 results which were below our expectations on the profitability front whereas top line was in line with our expectations. The company’s top line increased 19.5% yoy to `4,363cr (in line with our expectation of `4,393cr) due to higher volumes and higher rupee realizations. The company’s gross production averaged 202,014boepd (+12.0% yoy) during the quarter. Although gross crude oil realization decreased by 9.1% yoy to US$100.6/bbl, INR depreciation against the USD offset this impact. EBITDA grew by 9.3% yoy to `3,258cr; however, EBITDA margin contracted by 698bp yoy to 74.7%. The company recorded an exceptional forex loss of `3cr on account of forex fluctuation during 4QFY2013. Excluding this exceptional loss, adjusted net profit grew by just 6.8% yoy to `2,566cr (below our estimate of `2,819cr). Reported net profit grew by 17.3% yoy to `2,564cr. Source: AngelBroking

Ultratech

Ultratech’s 4QFY2013 stand-alone topline was below estimates at `5,389cr on account of both lower than estimated volumes and realization. The company’s grey cement volumes (incl. clinker) remained flat yoy at 11.13mn tonnes. White cement volumes fell by 4.3% yoy to 0.16mn tonnes. Blended realizations for the quarter stood at `4,727/tonne, higher by 1% on a yoy basis. However, the company’s operating costs/tonne was below estimates resulting in a superior OPM of 23.4% vs. estimated 21.5%. Interest expenses too was lower by 18.4% yoy at `48cr. Net Profit fell by 16.3% yoy to `726cr and was in-line with estimates. Meanwhile there are media reports that Ultratrech is in final-stage talks to buy Jaypee Associates 4.8mtpa cement plants in Gujarat for `4,100cr. The news has not been confirmed by management of both the companies. Source: AngelBroking

MLIFE 

For 4QFY2013, Mahindra Lifespaces Developers (MLIFE) reported a weak set of numbers both on revenue and profitability front. MLIFE’s standalone revenue for the quarter came in at `102cr, i.e a decline of 27% yoy which was below consensus estimate of `120cr. Standalone EBITDA decreased by 46.1% yoy to `17cr, owing to lower-than-expected revenue recognition. PAT for the quarter decreased by 27.7% yoy to `23cr. On a consolidated level, MLIFE reported a revenue of `368r and PAT of `82cr, suggesting a profit for its subsidiaries at net level. During the quarter, the company has acquired two land parcels one each in Bangalore and Mumbai region. Both the land parcel put together has a development potential of 1 mn sqft. Source: AngelBroking

Tata Sponge Iron

For 4QFY2013, TSIL reported a topline of `211cr, 7.1% higher than our estimate of `197cr. However, the results were disappointing on the EBITDA margin front which contracted by 502bp yoy to 8.8% as compared to 13.9% during 4QFY2012. Contraction in EBITDA margin was primarily due to higher raw material cost and employee expenses during the quarter. Consequently, net profit declined by 36% yoy during the quarter to `9cr. For the full year FY2013, revenue grew by 25.5% yoy to `796 on account of better realization of sponge iron and resumption volumes of sponge iron sales which were impacted during FY2012 due to iron ore supply issues; while increased raw material cost and employee expenses led to contraction of EBITDA margin by 273bp for FY2013. Net profit for FY2013 stood at `85cr as compared to `76cr in FY2012. Source: AngelBroking