Hindustan Zinc
Hindustan Zinc’s (HZL) reported better than expected 4QFY2013
results, both on top-line and profitability front. HZL’s net revenue increased
by 24.5% yoy to `3,850cr (above our estimate of `3,091cr) mainly due to
increased sales volumes of silver and higher rupee realizations. Zinc
production volumes however declined 4.0% yoy to 182kt but silver
production volumes grew 33.0% yoy to 117kt due to higher production from
Sindesur Khurd mine and new Dariba lead and silver capacities. EBITDA margin
contracted by 133bp yoy to 55.0% mainly on account of 8.0% yoy increase in cost
of production to `44,901/tonne. Cost of production increased due to higher
strip ratio at Rampura Agucha and lower acid credits, partially offset by lower
power costs. Mining royalty as a percentage to sales declined to 6.3% compared
to 7.4% in 4QFY2012 and other operating income also increased by 40.7% yoy to
`58cr. Hence, EBITDA increased by 27.5% yoy to`2,116cr. Other income rose by
8.1% yoy to `412cr while the depreciation was down by 27.0% yoy to `122cr and
tax rate was also much lower at 8.9% in 4QFY2013 (24.1% in 4QFY2012). There was
an exceptional item of VRS scheme of `18cr and consequently, adjusted net
profit grew by 53.6% yoy to `2,183cr (much above our estimate of `1,663cr).
Idea
For 4QFY2013, Idea Cellular (Idea) reported strong set of results,
beating our as well as market expectations on all fronts. Idea’s consolidated
revenue came in at `6,061cr, up 8.7% qoq. The mobility segment’s revenue
increased strongly by 8.7% qoq to `5,953cr, on the back of 8.5% qoq growth in
network traffic to 143bn min. MOU increased considerably by 5.7% qoq to 406min
while ARPM remained almost flat at `0.412. While the challenges on voice ARPM
continued, the company increased share of VAS revenues to 15.2% from 14.6% in
3QFY2013. Idea’s subscriber base increased by 6.8% qoq with the end of period
(EoP) subscriber base standing at 122mn. Idea’s EBITDA margin increased by
119bp qoq to 27.6%. The EBITDA margin inch up was led by strong revenue growth
along with qoq almost flat network operating charges. The PAT came in at
`308cr, up 35% qoq, led by strong operational performance and qoq lower
interest charges at `224 vs. `242cr in 3QFY2013.
United Phosphorous
United Phosphorus, 4QFY2013 numbers came in robust. The top line
grew by 30.8% to `2773cr. The top line growth was driven by both exports and
domestic business which grew by 25.0% and 33.0% respectively. The exports
growth came on back of the North America and Europe, which grew by 49% and 37%
respectively. Latin America, also grew strongly by 34%, while Rest of the world
grew by only 13% during the period. The top line growth was driven by 16%
volumes, while price rise was around 4%. Exchange impact on sales growth was
around 12%. The OPM came in at 17.6% almost same as 17.9%. This aided the Net
Profit to grow by 37.9% yoy to end the period at `278cr, on back of top-line
growth.
Abbott India
For 1QCY2013, Abbott India reported 11.6% yoy growth in topline at
`420cr, 3.2% lower than our estimate of `433cr. EBITDA margin expanded by 313bp
yoy primarily due to lower raw material prices. However, the adjusted net
profit increased by just 17.1% yoy to `32cr inspite of a 56.4% yoy growth in EBITDA
during 1QCY2013 due to exceptional item of `10cr in 1QCY2012 from writeback of
depreciation and provision for expired goods. We expect the revenue to grow at
a modest 12.2% revenue CAGR over CY2012-14E, while EBITDA margin would
stabilize in the range of 12.0-12.5% going forward. Net profit is expected to
post a 10.4% CAGR over the same period.
Infotech Enterprises
For 4QFY2013, Infotech reported a weak set of results on the
operating front. The dollar revenues came in at US$85.9mn, down 1.9% qoq,
majorly impacted by ramp downs seen in a couple of customer accounts from
America geography -one in the heavy engineering vertical and one in the hi-tech
industry vertical. In INR terms, the revenue came in at `464cr, down 2.2% qoq.
The EBITDA and EBIT margins declined by 151bp and 232bp qoq to 17.0% and 12.8%,
respectively, due to muted volume growth and inch up in employee costs because
of healthy gross addition of 783 employees into the system. PAT came in at
`54cr, down 12.3% qoq, impacted by lower other income of `10cr as against `16cr
in 3QFY2013. The Management sounded confident of FY2014 turning out to be a
better year than FY2013. For FY2104, in the ENGG vertical, the Management
indicated that the deal pipeline in the aerospace business segment is robust
and is seeing strong signs of growth in the transportation business segment
owing to recovery in this segment. The Management cited that they are seeing
initial signs of recovery in the hi-tech business segment while heavy engineering
is still looking soft. In the UT&C vertical, for FY2014, the Management
indicated that a strong pipeline is being seen for the utilities business
segment and expects business to remain stable in the telecom segment with
growth lower than the average company’s growth rate.
Vesuvius India
For 1QCY2013, VIL reported a 4% yoy increase in topline to `145cr,
inline with our estimate of `144cr. The EBITDA margin surprised positively
reporting an expansion of 558bp yoy to 20.2% from 14.6% in 1QCY2012 primarily
due to decline in raw material costs. As a result, net profit grew by a
stupendous 52.6% yoy to `18cr in 1QCY2013 as compared to `12cr in same quarter
last year. We believe the decline in commodity prices would facilitate higher margins
for the rest of the year, inspite of 6.4% CAGR in revenue over CY2012-14E; thus
leading to better profitability.
Cera Sanitaryware
Cera Sanitaryware (CSL) reported a strong set of numbers for
4QFY2013. The top-line surged by 57.6% yoy to `158cr, 21.5% higher than our
expectation of `130cr. The EBITDA grew by 30.1% yoy to `20.8cr, in line with
our estimate of `20.7cr. The EBITDA margin dipped by 278bp yoy and came in at
13.1%. The dip is attributable mainly to the rise in raw material cost. Despite
relatively low growth in EBITDA compared to the revenue growth, net profit grew
by 50.7% yoy to `14cr on account of higher other income during the quarter. Top
line for FY2013 grew by 52.1% and came in at `488cr, higher than our expectation
of `460cr. EBITDA for the year grew by 40.9% to `75.3cr, in line with our
estimate of `75.2cr, while EBITDA margins dip by 124 basis points to 15.4%,
owing to high raw material cost. The company reported net profit of `46.2cr,
vis-à-vis our estimate of `44cr, while net profit margins stood at 9.5% lower
by 44 basis points last year. Source: AngelBroking
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