- A ~72% yoy surge in sugar realizations compensates for 37% sugar volume sales; topline up 2.3% yoy
- RM cost up 43% yoy as cane SAP increases to Rs190/qtl; OPM up 301bps on decline in other expenses
- PAT jumps 49% on lower interest cost, improved operating performance
- Firm sugar prices and attractive valuation support our BUY for a TP of Rs159
Result table
(Rs m)
|
Q1 F9/10
|
Q1 F9/09
|
% yoy
|
F9/09
|
% yoy
|
Net sales
|
4,395
|
4,295
|
2.3
|
17,471
|
17.2
|
Material costs
|
(2,483)
|
(2,492)
|
(0.4)
|
(10,640)
|
17.4
|
Personnel costs
|
(237)
|
(204)
|
16.2
|
(999)
|
15.6
|
Other overheads
|
(359)
|
(442)
|
(18.8)
|
(1,360)
|
1.3
|
Operating profit
|
1,316
|
1,157
|
13.8
|
4,472
|
22.9
|
OPM (%)
|
30.0
|
26.9
|
301 bps
|
25.6
|
118 bps
|
Depreciation
|
(269)
|
(275)
|
(2.4)
|
(1,160)
|
(7.4)
|
Interest
|
(173)
|
(249)
|
(30.6)
|
(1,068)
|
6.7
|
Other income
|
20
|
5
|
269.8
|
82
|
(46.1)
|
PBT
|
894
|
638
|
40.2
|
2,326
|
51.2
|
Tax
|
(129)
|
(125)
|
3.0
|
(231)
|
(9.9)
|
Effective tax rate (%)
|
14.4
|
19.6
|
-
|
9.9
|
-
|
Associate share
|
-
|
-
|
-
|
(4)
|
197.5
|
Adjusted PAT
|
766
|
513
|
49.2
|
2,090
|
63.3
|
Adj. PAT margin (%)
|
17.4
|
11.9
|
548 bps
|
12.0
|
338 bps
|
Reported PAT
|
766
|
513
|
49.2
|
2,090
|
166.8
|
Ann. EPS (Rs)
|
11.8
|
8.0
|
47.6
|
8.1
|
62.4
| Source: Company, India Infoline Research
|
|
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