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| India Infoline Research Team / 15:15 , Aug 02, 2012 |
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CMP Rs38
- OnMobile reported ~4% qoq and ~36% yoy rise in Q1 FY13 revenues again led by international growth (est. +11.3% qoq ) while domestic market remained under pressure
- Wage hikes wef April 1 (PY from July 1) & continued hiring in nascent markets led to 23% sequential jump in staff costs which led to 356bps qoq fall in margin to 19.4%, the lowest since Q4 FY10
- Lower margin performance and higher foreign/withholding taxes led to ~26% yoy drop in PAT though lower effective tax rate qoq resulted in near doubling of profit
- We would wait for updates on earnings & business in the post results conference call before reviewing our estimates and hence for now keep our earlier BUY reco and price target under review.
Results table
| (Rs m) |
Q1 FY13 |
Q4 FY12 |
% qoq |
Q1 FY12 |
% yoy |
| Net sales |
1,852 |
1,776 |
4.3 |
1,364 |
35.8 |
| Content fee & royalty |
(239) |
(248) |
(3.9) |
(157) |
52.5 |
| Sales & services |
(132) |
(126) |
4.9 |
(114) |
15.7 |
| Personnel costs |
(766) |
(622) |
23.0 |
(500) |
53.3 |
| Other expenses |
(357) |
(371) |
(4.0) |
(322) |
10.6 |
| Operating profit |
359 |
407 |
(11.9) |
271 |
32.3 |
| OPM (%) |
19.4 |
22.9 |
(356) bps |
19.9 |
(52) bps |
| Depreciation |
(243) |
(260) |
(6.6) |
(159) |
52.7 |
| Interest |
(9) |
(9) |
- |
(6) |
67.3 |
| Other income |
59 |
42 |
39.9 |
58 |
2.2 |
| PBT |
166 |
181 |
(8.0) |
165 |
0.8 |
| Tax |
(71) |
(133) |
(46.4) |
(37) |
91.4 |
| Effective tax rate (%) |
42.8 |
73.5 |
(3,072) bps |
22.5 |
2,024 bps |
| PAT |
95 |
48 |
98.7 |
128 |
(25.5) |
| PAT margin (%) |
5.1 |
2.7 |
244 bps |
9.4 |
(423) bps | Source: Company, India Infoline Research
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