Sector Indices

Name Value Change %
BSE Carbonex 991.72 [4.0] [0.4]
BSE Greenex 1,620.48 [6.7] [0.4]
BSE SME IPO 255.94 [0.4] [0.2]
BSE 100 6,107.11 [24.2] [0.4]
BSE 200 2,452.00 [10.6] [0.4]
BSE 500 7,575.63 [34.4] [0.5]
BSE AUTO 11,052.62 [44.3] [0.4]
 

Aban Offshore (Q3 FY10) – BUY (Target Price Rs1,571, Upside 39.0%)

India Infoline Research Team / 17:08 , Jan 29, 2010

  • 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
  • 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)
Q3 FY10
Q3 FY09
% yoy
Q2 FY10
% qoq
Income from operations
8,413
8,368
0.5
7,029
19.7
Stores ans spares
(387)
(464)
(16.6)
(266)
45.7
Personnel costs
(737)
(1,005)
(26.7)
(544)
35.5
Rental chg for machinery
(18)
(338)
(94.7)
(20)
(9.0)
Repairs
(105)
(184)
(42.7)
(67)
56.2
Insurance
(239)
(155)
53.9
(135)
76.4
Overheads
(1,733)
(1,507)
15.0
(1,468)
18.1
Operating profit
5,194
4,715
10.2
4,529
14.7
OPM (%)
61.7
56.3
539 bps
64.4
(270) bps
Depreciation
(1,352)
(1,277)
5.8
(994)
35.9
Interest
(2,599)
(2,044)
27.2
(2,611)
(0.4)
Other income
39
1,624
(97.6)
70
(44.4)
PBT
1,282
3,018
(57.5)
995
28.8
Tax
(711)
(769)
(7.6)
(711)
(0.0)
Effective tax rate (%)
55.4
25.5

71.4

Profit share in JV
324
314
3.3
430
(24.7)
Reported PAT
895
2,563
(65.1)
714
25.3
Adj. PAT margin (%)
10.6
30.6
(1,998) bps
10.2
48 bps
Ann. EPS (Rs)
82.3
271.3
(69.7)
75.6
8.9
Source: Company, India Infoline Research

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