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| India Infoline Research Team / 09:27 , Aug 11, 2010 |
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CMP Rs957, Target Rs1,130, Upside 18.1%
- Consolidated net sales rose 65% yoy on the back of robust volume growth in both domestic market as well as for JLR
- OPM for standalone business at 11.1% was better than our expectation of 10.1%
- JLR OPM of 15.5% was a big positive surprise and has compelled an upgrade in earnings
- Standalone margins likely to be under pressure on account of raw material cost pressures
- Maintain BUY as we see continued recovery in consolidated financial performance with a revised price target of Rs1,130
Result table (Consolidated)
(Rs m)
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Q1 FY11
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Q1 FY10
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% yoy
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Net sales
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270,556
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163,970
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65.0
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Material costs
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(145,209)
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(92,799)
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56.5
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Purchases
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(25,263)
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(19,799)
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27.6
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Personnel costs
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(21,489)
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(20,437)
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5.1
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Other overheads
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(40,041)
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(25,906)
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54.6
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Operating profit
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38,554
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5,029
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666.6
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OPM (%)
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14.2
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3.1
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1118 bps
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Depreciation
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(10,115)
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(8,442)
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19.8
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Interest
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(5,616)
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(5,835)
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(3.8)
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Other income
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346
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3,211
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(89.2)
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PBT
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23,168
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(6,038)
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(483.7)
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Tax
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(2,960)
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(643)
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360.7
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Effective tax rate (%)
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12.8
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(10.6)
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Other provisions / minority etc
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93
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53
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74.3
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Adjusted PAT
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20,301
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(6,627)
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(406.3)
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Adj. PAT margin (%)
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7.5
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(4.0)
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1155 bps
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Extra ordinary items
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(414)
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3,339
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(112.4)
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Reported PAT
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19,887
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(3,288)
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(704.9)
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Ann. EPS (Rs)
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142.3
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(51.6)
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(376.0)
| Source: Company, India Infoline Research
Cost Analysis (Consolidated)
As a % of net sales
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Q1 FY11
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Q1 FY10
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Bps yoy
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Material costs
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53.7
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56.6
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(292)
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Purchases
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9.3
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12.1
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(274)
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Personnel Costs
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7.9
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12.5
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(452)
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Other overheads
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14.8
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15.8
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(100)
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Total costs
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85.8
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96.9
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(1,118)
| Source: Company, India Infoline Research
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