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| India Infoline Research Team / 14:40 , Jul 23, 2010 |
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CMP Rs816, Target Rs864, Upside 5.9%
- Revenue declines by 3%, in-line with our estimates as volume de-grow
- Surge in employee, freight and other overheads pulls down OPM by 764bps yoy
- PAT declines by 26.1% to Rs3.59bn; in-line with our expectation
- Trades below replacement cost; maintain Market Performer
Result table*
| (Rs m) |
Q2 CY10 |
Q2 CY09 |
% yoy |
Q1 CY10 |
% qoq |
| Net sales |
20,622 |
21,199 |
(2.7) |
21,363 |
(3.5) |
| Material costs |
(2,641) |
(2,481) |
6.4 |
(3,067) |
(13.9) |
| Personnel costs |
(1,063) |
(968) |
9.8 |
(896) |
18.7 |
| Power and fuel costs |
(3,934) |
(3,738) |
5.2 |
(3,926) |
0.2 |
| Freight cost |
(2,700) |
(2,547) |
6.0 |
(2,753) |
(1.9) |
| Other overheads |
(4,339) |
(3,734) |
16.2 |
(4,154) |
4.5 |
| Operating profit |
5,944 |
7,730 |
(23.1) |
6,567 |
(9.5) |
| OPM (%) |
28.8 |
36.5 |
(764 bps) |
30.7 |
(192 bps) |
| Depreciation |
(962) |
(784) |
22.7 |
(935) |
2.8 |
| Interest |
(141) |
(159) |
(11.7) |
(127) |
10.5 |
| Other income |
183 |
177 |
3.0 |
264 |
(30.9) |
| PBT |
5,024 |
6,964 |
(27.8) |
5,769 |
(12.9) |
| Tax |
(1,435) |
(2,107) |
(31.9) |
(1,777) |
(19.2) |
| Effective tax rate (%) |
(28.6) |
(30.3) |
170 bps |
(30.8) |
225 bps |
| Reported PAT |
3,589 |
4,856 |
(26.1) |
3,991 |
(10.1) |
| Adjusted PAT |
3,589 |
4,856 |
(26.1) |
3,991 |
(10.1) |
| Adj. PAT margin (%) |
17.4 |
22.9 |
(550 bps) |
18.7 |
(128 bps) |
| Ann. EPS (Rs) |
76.4 |
103.4 |
(26%) |
85.0 |
(10%) | Source: Company, India Infoline Research; * On Standalone basis
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