Result Review 4QFY2013

Britannia Industries 

For 4QFY2013 Britannia Industries posted a 13.5% yoy growth in net sales to `1,486cr, which was in-line with estimates. The top-line growth was both on account of higher volumes and better realizations. OPM rose by 260bp yoy to 7.8%. Bottom-line rose by 65.5% yoy to `87cr. Source: AngelBroking

Crompton Greaves 

For 4QFY2013, Crompton Greaves reported 10% yoy growth in its top-line to `3,387cr. However, on the EBITDA front, the company's margin stood at 2.3%, much below our estimates, mainly on account of 630bp yoy contraction in power segment margins (due to low productivity, delay penalty and quality issues in its overseas power transformer business). Consumer segment margins also fell by 240bp yoy due to higher marketing and promotional expenses. Consequently, PAT fell by 75% yoy to `25cr. However, considering cheap valuations, we maintain Buy on the stock with a long term view, as we expect gradual recovery in margins over next couple of years.Source: AngelBroking

Bharat Forge

Bharat Forge (BHFC) reported poor performance for 4QFY2013 led by severe weakness in the domestic as well as export markets which resulted in a 35.2% yoy (1% qoq) decline in volumes. Consequently, the standalone revenue posted a significant decline of 31% yoy (flat qoq) to `675cr which was lower than ourexpectations of `734cr. The domestic and export revenues registered a decline of 29.9% and 32% yoy respectively on account of a sharp decline in commercial vehicle (CV) sales in India and export markets. Further, slowdown in capital spending in the power, mining and oil and gas sectors also impacted the non auto business. As a result, revenues declined across all the geographies, with India, America and Europe revenues witnessing a decline of 30.1%, 31.6% and 23.4% yoy respectively. On the operating front, margins contracted 310bp yoy to 22.6%, broadly in-line with our estimates of 22.9%, primarily due to lower utilization levels (~50% in domestic operations). Hence operating profit and net profit registered a sharp decline of 39.2% and 60.1% yoy respectively. On a sequential basis, EBITDA margins improved 200bp on account of productivity improvements and tight control over costs, leading to a 9.9% and 5.5% growth in operating profit and net profit respectively. At `226, the stock is trading at 13.1x FY2015 earnings. Source: AngelBroking

MOIL Ltd 

MOIL’s 4QFY2013 top-line was higher than expectation whereas the bottom-line was broadly in line with our expectations. Net sales increased by 32.2% yoy to `267cr (above our estimate of `222cr) due to higher sales volumes and realizations. EBITDA also increased by 26.7% yoy to `109cr but EBITDA margin declined 167bps yoy to 40.8%. Other income declined by 4.7% yoy to `60cr. Net profit increased by 11.1% yoy to `110cr which was in-line with our estimate of `113cr.Source: AngelBroking

Force Motors

Force Motors (FML) reported disappointing set of numbers for its 4QFY2013. Topline for the quarter dips by 13.8% yoy to `527cr, vis-à-vis our estimate of `582cr. The company reported EBITDA loss of `13cr against profit of `27cr for the same quarter previous year. EBITDA loss was mainly due to increased employee and other expenditure which rose by 646bp and 230bp yoy respectively. On the back of negative top-line growth and poor operating performance, net profit registered a loss of `23cr as compared to profit of `17cr in 4QFY2012.On annual basis, top-line growth dips marginally by 5.4% to `1,973cr. EBITDA however fell by 55% to `54cr with margins at 2.8%, lower by 307bp. Net profit too came in lower by 58% to `15cr.Source: AngelBroking