Result Review 4QFY2013

JSW Ispat 

JSW Ispat, which is expected to be merged with JSW Steel during CY2013, reported its 4QFY2013 results. Its net sales declined by 3.6% yoy to `2,621cr. The EBITDA also decreased by 2.5% yoy to `190cr mainly due to lower steel prices and higher power costs. However, the company's interest cost declined by 13.4% yoy to `232cr and therefore this coupled with deferred tax credit benefits helped the company to post a positive PAT of `94cr in 4QFY2013 compared to a loss of `141cr in 4QFY2012. Source: AngelBroking

Tech Mahindra 

Tech Mahindra reported better than expected revenue growth but disappointed slightly on the operational margin front. The dollar revenues came in at US$353.2mn, up 7.2% qoq, aided by acquisition of HGS and Comviva. USD revenues from non-BT accounts grew by ~13.3% qoq to US$265mn. Revenue from BT declined by 7.6% qoq and BT now contributes 25% to revenues 37% in 4QFY2012. In INR terms, the revenue came in at `1,907cr, up 6.5% qoq. The two acquisitions which the company did – HGS and Comviva – has got lower margin profile than company average, due to which EBITDA margin of the company declined by ~105bp qoq to 19.9%. The company’s utilization level went up by ~100bp qoq to 77%, majorly because of reduction in its employee base by 1,560 employees. Management indicated that US is on a path of recovery in terms of IT send from telecom clients while Europe still remains patchy. Deal pipeline of the company from emerging markets remains strong. The consolidated reported PAT came in at `377cr while adjusted PAT (adjusting for exceptional item in Mahindra Satyam) came in at `320cr, down 20% qoq. The overall results were healthy on the back of acquitsions and new deals. The Management indicated that the proposed Tech Mahindra - Satyam merger had been approved by the Bombay High Court, while it awaits the Andhra Pradesh High Court approval. Management indicated that hearings at Andhra Pradesh High Court are complete and the judgment has been reserved and expects that the judgment will become available in the first two weeks of June.Source: AngelBroking