|
|
| India Infoline Research Team / 17:20 , Jan 18, 2010 |
|
|
|
- A surge in sugar realizations, 126% yoy rise in volumes \and higher trading revenues drive Q1 topline
- OPM expands 10ppts yoy on improved sugar prices
- Reported PAT jumps 24x yoy on the back of robust operating environment
- We factor in improved sugar realizations in the current fiscal and upgrade to BUY with revised TP of Rs291
Result table
| (Rs m) |
Q1 F9/10 |
Q1 F9/09 |
% yoy |
F9/09 |
% yoy |
| Net sales |
14,287 |
4,002 |
257.0 |
28,160 |
33.8 |
| Material costs |
(9,453) |
(2,481) |
281.0 |
(20,205) |
28.1 |
| Personnel costs |
(175) |
(145) |
20.7 |
(570) |
36.0 |
| Other overheads |
(1,048) |
(768) |
36.5 |
(2,729) |
16.5 |
| Operating profit |
3,611 |
608 |
493.9 |
4,656 |
84.5 |
| OPM (%) |
25.3 |
15.2 |
1,008 bps |
16.5 |
455 bps |
| Depreciation |
(195) |
(140) |
39.3 |
(676) |
83.2 |
| Interest |
(294) |
(299) |
(1.7) |
(1,077) |
57.0 |
| Other income |
150 |
26 |
476.9 |
65 |
(53.2) |
| PBT |
3,272 |
195 |
1,577.9 |
2,968 |
84.6 |
| Tax |
(662) |
(70) |
845.7 |
(720) |
68.6 |
| Effective tax rate (%) |
20.2 |
35.9 |
|
24.3 |
|
| Minority Interest |
(1) |
(15) |
|
(5) |
(80.0) |
| Adjusted PAT |
2,609 |
110 |
2,271.8 |
2,243 |
94.0 |
| Adj. PAT margin (%) |
18.3 |
2.7 |
1,551 bps |
8.0 |
247 bps |
| Extra-items |
|
|
|
(8) |
|
| Reported PAT |
2,609 |
110 |
2,271.8 |
2,235 |
66.9 |
| Ann. EPS (Rs) |
32.9 |
1.6 |
|
7.1 |
| Source: Company, India Infoline Research
Surge in sugar prices drives topline
Renuka Sugars reported a 257% jump in Q1 revenues driven by 1) ~77% rise in sugar realizations 2) 126% growth in volumes to 0.3mn MT 3) An 11x growth in trading sales mostly of white sugar and ethanol.
Operating highlights
| Key highlights |
Q1 F9/10 |
Q1 F9/09 |
% yoy |
F9/09 |
% yoy |
| Sugar cane crushed, mn MT |
1.63 |
1.99 |
(18.3) |
3.52 |
(23.9) |
| Cane sugar produced, mn MT |
0.17 |
0.21 |
(21.6) |
0.38 |
(27.9) |
| Raw sugar processed, mn MT |
0.15 |
0.04 |
309.4 |
0.66 |
817.1 |
| Raw sugar produced, mn MT |
0.15 |
0.04 |
302.6 |
0.64 |
839.0 |
| Recovery (from cane, %) |
10.20 |
10.64 |
- |
10.73 |
- |
| Total sugar produced, mn MT |
0.32 |
0.25 |
26.5 |
1.01 |
71.5 |
| Sugar sales (mfg), mn MT |
0.30 |
0.13 |
126.4 |
0.80 |
49.8 |
| Avg. realizations, Rs/kg |
28.89 |
16.36 |
76.5 |
21.4 |
65.7 |
| Co-gen exports, mn units |
80.00 |
72.00 |
11.1 |
231 |
50.0 |
| Realizations, Rs/unit |
5.00 |
7.40 |
(32.4) |
6.48 |
10.2 |
| Ethanol sales, mn ltrs |
13.8 |
16.8 |
(18.2) |
65.0 |
27.2 |
| Avg. realizations, Rs/l |
29.5 |
24.5 |
20.3 |
25.9 |
14.1 | Source: Company, India Infoline Research
|
|
|
|
Click
here to download the complete report
|
|
|
|
|
|
|