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| India Infoline Research Team / 17:16 , Dec 17, 2009 |
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- A ~64% yoy surge in sugar realization and Rs700mn gain on US$125mn ECB hedges drive 5.5% Q4 revenue growth
- Sugar volume sales decline ~40% yoy as 2008-09 sugar production fell ~50%; distillery sales too plummet 90%
- OPM jumps to 36% on decline in RM, overhead costs; co reports net profit of Rs691mn vs. loss last year
- Tweak F9/11 EPS estimates but retain MP as sugar prices stay firm and debt burden eases over next two years
Result table
(Rs m)
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Q4 F9/09
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Q4 F9/08
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% yoy
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F9/09*
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% yoy
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Net sales
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5,032
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4,768
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5.5
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22,993
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8.9
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Material costs
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(2,699)
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(3,628)
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(25.6)
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(12,208)
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(10.8)
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Personnel costs
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(325)
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(232)
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40.6
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(1,653)
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11.5
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Other overheads
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(193)
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(434)
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(55.5)
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(2,184)
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(15.5)
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Operating profit
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1,815
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475
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282.3
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6,948
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106.9
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OPM (%)
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36.1
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10.0
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2,611 bps
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30.2
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1,432 bps
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Depreciation
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(514)
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(488)
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5.3
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(3,457)
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23.5
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Interest
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(261)
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(590)
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(55.9)
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(2,781)
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34.3
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Other income
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1
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2
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(65.0)
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342
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301.2
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PBT
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1,041
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(602)
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-
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1,052
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-
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Tax
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(337)
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441
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-
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(472)
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-
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Eff. tax rate (%)
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32.4
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-
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-
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44.9
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-
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Minority interest
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-
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-
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-
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22
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(87.0)
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Adjusted PAT
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704
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(161)
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-
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602
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-
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Adj. PAT margin (%)
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14.0
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(3.4)
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-
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2.6
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-
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Extra items
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(13)
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(714)
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(98.1)
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-
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-
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Reported PAT
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691
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(875)
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-
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602
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-
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Ann. EPS (Rs)
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15.9
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(4.5)
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-
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3.4
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-
| Source: Company, India Infoline Research
* Consolidated
Surge in sugar realization, hedging gains drive Q4 topline
Bajaj Hindusthan reported a 5.5% growth in Q4 revenues on the back of ~64% jump in sugar realization to Rs27/kg (free quota). Q4 revenues also include ~Rs700mn as one-time gain from an US$125mn ECB hedge.
Improved sugar prices help post a profit; maintain MP
In absence of alcohol and co-gen operation, RM and overhead costs declined which aided in OPM expansion. Improved sugar performance helped the company post profit in Q4 vs. loss a year ago. Overall, we expect sugar prices to trade firm over next 12 months as supply remains depressed. We tweak our F9/11 EPS estimates but retain MP with TP of Rs204.
Segment-wise breakup
Revenue (Rs mn)
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Q4 F9/09
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Q4 F9/08
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% yoy
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F9/09
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% yoy
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Sugar
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4,096
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3,937
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4.0
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18,744
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1.7
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Distillery
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84
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731
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(88.6)
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1,226
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(61.0)
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Power
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1
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31
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(98.4)
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793
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(37.4)
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Bagasse board
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-
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-
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-
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977
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369.0
| Source: Company, India Infoline Research
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