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| India Infoline Research Team / 11:48 , Jul 29, 2010 |
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CMP Rs630, Target Rs660, Upside 4.7%
- Q1 FY11 standalone revenue of Rs21.2bn was marginally higher than our estimate of Rs20.5bn
- The outperformance in topline was led by higher than expected realisations, which offset lower sales volume
- Average steel realisations jumped 22% qoq in Q1 FY11 on account of superior product mix
- Operating profit remained flat qoq at Rs7.9bn, higher than our estimate of Rs7.3bn
- Average power realisations under JPL increased from Rs4.4/unit in Q4 FY10 to Rs4.6/unit
- JPL registered a 7.4% qoq increase in PAT to Rs5.6bn led by higher production and average power realisation
- Maintain Market Performer rating with a target price of Rs660
Result table
| (Rs m) |
Q4 FY10 |
Q3 FY10 |
% qoq |
Q4 FY09 |
% yoy |
| Net sales |
21,216 |
23,888 |
(11.2) |
15,881 |
33.6 |
| Material costs |
(6,146) |
(8,529) |
(27.9) |
(5,279) |
16.4 |
| Power and fuel costs |
(1,151) |
(1,359) |
(15.3) |
(1,119) |
2.9 |
| Personnel costs |
(617) |
(616) |
0.2 |
(486) |
27.0 |
| Other overheads |
(5,389) |
(5,601) |
(3.8) |
(3,290) |
63.8 |
| Operating profit |
7,913 |
7,784 |
1.7 |
5,707 |
38.7 |
| OPM (%) |
37.3 |
32.6 |
472 bps |
35.9 |
137 bps |
| Depreciation |
(1,475) |
(1,313) |
12.3 |
(1,229) |
20.0 |
| Interest |
(742) |
(836) |
(11.3) |
(328) |
126.4 |
| Other income |
62 |
984 |
(93.7) |
46 |
35.1 |
| PBT |
5,759 |
6,619 |
(13.0) |
4,196 |
37.3 |
| Tax |
(1,402) |
(1,129) |
24.2 |
(1,195) |
17.3 |
| Effective tax rate (%) |
24.3 |
17.1 |
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28.5 |
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| Adjusted PAT |
4,357 |
5,490 |
(20.6) |
3,001 |
45.2 |
| Adj. PAT margin (%) |
20.5 |
23.0 |
(245) bps |
18.9 |
164 bps |
| Reported PAT |
4,357 |
5,490 |
(20.6) |
3,001 |
45.2 |
| Ann. EPS (Rs)* |
18.7 |
23.6 |
(20.9) |
12.9 |
44.7 | Source: Company, India Infoline Research * EPS adjusted for bonus and split
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