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| India Infoline Research Team / 14:34 , Jul 23, 2010 |
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CMP Rs115, Target Rs111, Downside 3.1%
- Revenue grows by 10.6%, in-line with our estimates
- OPM expands by ~320bps as lower clinker purchases lead to material saving in RM cost.
- Strong topline growth along with robust operating performance leads to an increase in Pre-exceptional PAT by 20.5% yoy; marginally lower than our estimate of 22%.
- Trades close to fair value; Upgrade to market performer.
Result table
| (Rs m) |
Q2 CY10 |
Q2 CY09 |
% yoy |
Q1 CY10 |
% qoq |
| Net sales |
20,884 |
18,885 |
10.6 |
20,188 |
3.4 |
| Material costs |
(829) |
(3,224) |
(74.3) |
(2,329) |
(64.4) |
| Personnel costs |
(901) |
(688) |
30.9 |
(772) |
16.7 |
| Power and fuel costs |
(4,534) |
(3,752) |
20.9 |
(3,552) |
27.7 |
| Freight cost |
(4,474) |
(3,294) |
35.8 |
(4,122) |
8.5 |
| Other overheads |
(3,706) |
(2,719) |
36.3 |
(2,900) |
27.8 |
| Operating profit |
6,440 |
5,208 |
23.7 |
6,513 |
(1.1) |
| OPM (%) |
30.8 |
27.6 |
326 bps |
32.3 |
(142) bps |
| Depreciation |
(1,001) |
(704) |
42.1 |
(767) |
30.4 |
| Interest |
(81) |
(52) |
55.5 |
(108) |
(24.9) |
| Other income |
259 |
281 |
(7.8) |
260 |
(0.3) |
| PBT |
5,618 |
4,732 |
18.7 |
5,897 |
(4.7) |
| Tax |
(1,705) |
(1,486) |
14.8 |
(1,476) |
15.5 |
| Effective tax rate (%) |
(30.4) |
(31.4) |
104 bps |
(25.0) |
(533) bps |
| Exceptional Item |
- |
- |
- |
201 |
- |
| Reported PAT |
3,912 |
3,247 |
20.5 |
4,421 |
(11.5) |
| Adjusted PAT |
3,912 |
3,247 |
20.5 |
4,622 |
(15.4) |
| Adj. PAT margin (%) |
18.7 |
17.2 |
154 bps |
22.9 |
(416) bps |
| Ann. EPS (Rs) |
10.3 |
8.5 |
20 |
12.1 |
(15) | Source: Company, India Infoline Research
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