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| India Infoline Research Team / 17:08 , Jan 29, 2010 |
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- Income from operations lower than expected on account of lower utilization of assets
- OPM at 61.7%, down 270bps qoq impacted by sharp increase in insurance costs and overheads
- Lower other income further impacted profitability
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- Higher utilization of assets to drive revenue and profitability growth ahead
- Maintain BUY with a target price of Rs1,571
Result table (Consolidated)
(Rs m)
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Q3 FY10
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Q3 FY09
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% yoy
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Q2 FY10
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% qoq
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Income from operations
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8,413
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8,368
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0.5
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7,029
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19.7
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Stores ans spares
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(387)
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(464)
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(16.6)
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(266)
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45.7
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Personnel costs
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(737)
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(1,005)
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(26.7)
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(544)
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35.5
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Rental chg for machinery
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(18)
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(338)
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(94.7)
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(20)
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(9.0)
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Repairs
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(105)
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(184)
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(42.7)
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(67)
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56.2
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Insurance
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(239)
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(155)
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53.9
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(135)
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76.4
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Overheads
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(1,733)
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(1,507)
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15.0
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(1,468)
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18.1
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Operating profit
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5,194
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4,715
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10.2
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4,529
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14.7
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OPM (%)
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61.7
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56.3
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539 bps
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64.4
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(270) bps
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Depreciation
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(1,352)
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(1,277)
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5.8
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(994)
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35.9
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Interest
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(2,599)
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(2,044)
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27.2
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(2,611)
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(0.4)
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Other income
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39
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1,624
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(97.6)
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70
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(44.4)
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PBT
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1,282
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3,018
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(57.5)
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995
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28.8
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Tax
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(711)
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(769)
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(7.6)
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(711)
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(0.0)
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Effective tax rate (%)
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55.4
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25.5
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71.4
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Profit share in JV
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324
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314
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3.3
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430
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(24.7)
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Reported PAT
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895
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2,563
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(65.1)
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714
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25.3
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Adj. PAT margin (%)
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10.6
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30.6
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(1,998) bps
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10.2
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48 bps
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Ann. EPS (Rs)
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82.3
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271.3
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(69.7)
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75.6
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8.9
| Source: Company, India Infoline Research
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