Result Review 4QFY2013

United Spirits 

For 4QFY2013 United Spirits posted a 11.3% yoy growth in top-line to `2,094cr, which was slightly below our estimates. Volume growth stood at 4% for the quarter.Volume growth in Prestige and strategic brands stood at 30%. OPM came in line with estimates at 11.3%. Bottom-line stood at `56cr impacted by `22cr of exceptional items. Source:AngelBroking

J&K Bank 

J&K Bank reported healthy operating performance for the quarter, which came largely on expected lines, however, on the asset quality front, it faced moderate pressures during the quarter. While, NII grew by 23% yoy, non-interest income grew by 71% (possibly aided by the booking of Metlife stake sale, during the quarter) and hence, growth in operating profit was strong at 29% yoy. On the asset quality front, the bank witnessed pressures during the quarter, as their gross and net NPA levels were sequentially higher by around 11% each and hence, the provisioning expenses for the bank more than doubled on a yoy basis and earnings grew at a moderate pace of 20% yoy. Source:AngelBroking

IRB Infra 

For 4QFY2013, IRB Infrastructure (IRB) reported a healthy set of numbers and was above street expectations. The company’s revenue came in below our expectation owing to delay in toll collection at IRDP-Kolhapur BOT project which led to lowerthan-expected BOT revenue for the quarter. However better-than-expected performance at the EBITDAM level and lower tax expense led to healthy growth at earnings level. IRB’s top line witnessed a growth of 11.4% yoy to `948cr in 4QFY2013 and was below our estimate of `1,104cr. The growth was mainly due to healthy execution pace in the under-construction BOT projects. The E&C segment’s revenue grew by 10.6% yoy to `691cr (our estimate was `638cr) while the BOT segment witnessed 12.7% yoy growth to `289cr (our estimate was `310cr). On the EBITDAM front, IRB’s margin came in at 44.6% in 4QFY2013, indicating a decline of 53bp on a yoy basis and was higher than our estimate of 44.0%. Stable input prices led to EBITDAM of 34.2% (excluding other income) for E&C segment. Interest cost came in at `158cr, indicating a growth of 3.0% on a yoy basis. At the earnings front, IRB reported PAT of `151cr (our estimate was `187cr), an increase of 25.6% yoy owing to better-than-expected operating performance and lower tax expense during the quarter. IRB is looking at both organic and inorganic options for growth with a threshold of 18% equity IRR and intends to allot 20% of consolidated cash flow post debt repayment towards acquisitions. IRB has a robust order book of `6,431cr (2.4x FY2013E E&C revenue, excluding O&M orders), which lends revenue visibility. Although a slowdown in order awarding by NHAI in road sector has been witnessed in FY2013, IRB expects ordering activity to improve going ahead. Source:AngelBroking