Result Review 4QFY2013

Bajaj Auto 

Bajaj Auto (BJAUT) reported lower-than-expected operating performance for 4QFY2013, nevertheless, the bottom-line was slightly ahead of our estimates driven by higher other income and lower tax-rate. For 4QFY2013, the top-line posted an in-line growth of 2% yoy (down 12.3% yoy) to `4,746cr, following a 3.5% yoy (13% qoq) drop in volumes to 981,242 units. The net average realization, however, improved strongly by 6.8% yoy (0.7% qoq) led by favorable foreign exchange rate on the exports front and also due to price hike in the export markets (effective November 2012) to pass on the impact of reduction in export incentives. While, the domestic revenues declined 3.3% yoy (13.2% qoq) led by 8% yoy (18% qoq) decline in volumes; export revenues surged 18.2% yoy led a 5.1% yoy growth in volumes and a 12.5% yoy growth in net average realization. The EBITDA margin declined 217bp yoy (107bp qoq) to 17.6%, below our expectations of 18.6%, mainly due to adverse product-mix (higher share of less than 125cc motorcycles in the product-mix) and increase in other expenditure. The adjusted net profit registered a marginal growth of 1.9% yoy (down 6.5% qoq) to `766cr. However, it was slightly ahead of our expectations driven by higher other income (74.6% yoy and 19.9% qoq) and lower tax-rate (at 25.9% as against 30.2% in 3QFY2013). At the CMP of `1,808, the stock is trading at 13.2x FY2015E earnings. Source:AngelBroking

Mahindra Satyam 

For 4QFY2013, Mahindra Satyam reported net profit while disappointed on the operational front. The dollar revenues came in US$359cr, up 1% qoq. In INR terms, revenues came in at `1,936cr, down 0.2% qoq. The company’s operational performance was below expectations as EBITDA margin declined by ~145bp qoq to 20.1% (vs. our expectation of margin inching up qoq), due to subdued revenue growth. The company reported exceptional gain of `134cr during the quarter, adjusting for this profit came in at `320cr, down 14% qoq impacted by lower other income of `72cr as against `111cr in 3QFY2013. We wait for management clarity on decline in operational margins as the company continued to deliver operational exuberance with decent volume growth since last five quarters (till 3QFY2013). Management indicated that they are in penultimate stage in the merger process of Tech Mahindra and Mahindra Satyam as it has been approved by the Bombay High Court, while it awaits the Andhra Pradesh High Court approval. Source:AngelBroking

DBCorp

For 4QFY2013, DB Corp’s top-line performance was in-line with our expectations, growing by 12.7% yoy to `398cr, primarily on account of 13.1% yoy growth inadvertising revenue to `298cr. On the operating front, the company reported 303bp yoy expansion in OPM to 23.6% aided by reduction in losses of emerging editions (`5.8cr loss in 4QFY2013 vs a loss of `18.5cr in corresponding quarter last year). Consequently, net profit grew by 22.0% yoy to `55cr. At the current market price, DB Corp is trading at 14.3x FY2015E consolidated EPS of `16.9. Source:AngelBroking

Hitachi Home

For 4QFY2013, Hitachi Home (HHLS) reported a yoy revenue growth of 14.6% to `270cr in line with our expectation of `269cr. The company disappointed on the EBITDA front with a margin of 5.5%, yoy contraction on 111bp from 6.6% in 4QFY2012. However, forex gain of `5.3cr led to 6.3% yoy growth in net profit to `8cr during 4QFY2013 as compared to `7cr in 4QFY2012. For FY2013, HHLS’s topline growth came in at 20.3% to `960cr, while the EBITDA margin expanded by 506bp yoy to 8.7% from 3.7% in FY2012 owing to lower raw material costs and declining other expenses. This led to a 1411% growth in net profit to `49cr in FY2013 from `3cr in FY2012.Source:AngelBroking