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| India Infoline Research Team / 11:45 , Feb 26, 2010 |
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CMP Rs1,265, Target Price Rs1,566, Upside 23.8 %
- Consolidated revenues de-grow by 6% yoy - due to degrowth in both power and coal businesses
- Power division’s EBIT margin expands by 731bps yoy to 17.7% while that of coal business is impacted by Rs3.5bn write off of deferred stripping expenses
- Lower effective tax translates into flattish adjusted profit growth
- Merchant sales and timely commissioning of projects will aid 18.4% earnings CAGR over FY09-12, re-iterate BUY
Result table
(Rs m)
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Q3 FY10
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Q3 FY09
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% yoy
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Q2 FY10
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% qoq
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Net sales
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43,404
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46,215
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(6.1)
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45,792
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(5.2)
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Material costs
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(21,949)
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(25,138)
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(12.7)
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(24,453)
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(10.2)
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Personnel costs
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(1,848)
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(1,380)
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33.9
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(2,484)
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(25.6)
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Coal processing charges
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(3,726)
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(4,118)
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(9.5)
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(4,706)
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(20.8)
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Other overheads
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(6,707)
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(5,569)
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20.4
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(4,650)
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44.2
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Operating profit
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9,175
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10,011
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(8.4)
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9,498
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(3.4)
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OPM (%)
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21.1
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21.7
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(52) bps
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20.7
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40 bps
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Depreciation
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(2,208)
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(1,618)
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36.4
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(2,244)
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(1.6)
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Interest
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(1,853)
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(2,012)
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(7.9)
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(1,877)
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(1.3)
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Other income
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260
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240
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8.3
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496
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(47.6)
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PBT
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5,374
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6,621
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(18.8)
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5,873
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(8.5)
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Tax
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(265)
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(1,688)
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(84.3)
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(2,387)
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(88.9)
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Effective tax rate (%)
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4.9
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25.5
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40.6
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Statutory appropriations
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(60)
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(272)
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(77.9)
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(86)
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(30.2)
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Minority Interest
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(542)
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(140)
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286.9
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(10)
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5,316.0
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Adjusted PAT
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4,507
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4,521
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(0.3)
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3,390
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33.0
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Adj. PAT margin (%)
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10.4
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9.8
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60 bps
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7.4
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298 bps
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Extra ordinary items
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(3,582)
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530
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(775.4)
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287
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(1,347.5)
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Reported PAT
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926
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5,052
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(81.7)
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3,677
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(74.8)
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Ann. EPS (Rs)
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76.0
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81.7
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(7.0)
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57.2
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32.9
| Source: Company, India Infoline Research
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