|
|
| India Infoline Research Team / 16:30 , Aug 16, 2012 |
|
|
|
CMP Rs106, Target Rs85, Downside 19.7%
- Tulip reported 8.3% qoq jump in revenues, an improvement from 3.6% sequential fall in Q4 topline though yoy revenue rise of 9.6% indicate a difficult revenue environment compared to previous quarters.
- Strong cost control over SG&A (down 115bps qoq) and staff (-24bps qoq) as company continues focus on cost rationalization led to 122bps qoq rise in margin; Adjusted for Rs616mn in post tax gain on sale of 13% stake in Qualcomm’s BWA venture, Tulip reported ~17% decline in PAT purely driven by net tax credit to the tune of Rs43mn in Q4 FY12.
- Data centre won an order worth Rs872mn from UIDAI for project ‘Adhaar’ for 3 years which entails 10,000 sq ft of data centre space
- Q5 FY12 performance was a relative positive surprise led by sequential revenue growth and margin improvement; however, given the cautious macro environment, we expect revenue growth to remain tepid and margins to be under pressure. We revise our revenue/EBIDTA/PAT estimates post quarterly results but retain SELL with revised 9-mth tgt of Rs85 (earlier Rs71).
Results table (consolidated)
| (Rs m) |
Q5 FY12 |
Q4 FY12 |
% qoq |
Q1 FY12 |
% yoy |
| Net sales |
7,165 |
6,617 |
8.3 |
6,538 |
9.6 |
| Traded good/scvs |
(4,642) |
(4,276) |
8.6 |
(4,179) |
11.1 |
| Staff cost |
(376) |
(364) |
3.5 |
(299) |
25.9 |
| SG&A |
(227) |
(285) |
(20.5) |
(213) |
6.8 |
| Operating profit |
1,920 |
1,692 |
13.5 |
1,848 |
3.9 |
| OPM (%) |
26.8 |
25.6 |
122 bps |
28.3 |
(147) bps |
| Depreciation |
(628) |
(604) |
3.8 |
(495) |
26.8 |
| Interest |
(556) |
(537) |
3.5 |
(319) |
74.1 |
| Other income |
(0) |
68 |
- |
(11) |
(97.8) |
| PBT |
736 |
618 |
19.1 |
1,023 |
(28.0) |
| Tax |
(189) |
43 |
- |
(251) |
(24.9) |
| Effective tax rate (%) |
25.6 |
- |
- |
24.5 |
108bps |
| Adjusted PAT |
547 |
660 |
(17.1) |
772 |
(29.1) |
| Adj. PAT margin (%) |
7.6 |
10.0 |
(234) bps |
11.8 |
(416) bps |
| Extra ordinary items |
616 |
- |
|
- |
|
| Reported PAT |
1,164 |
660 |
76.2 |
772 |
50.8 | Source: Company, India Infoline Research
Financial snapshot: Tulip Data Centres
| Rs mn |
Q5 FY12 |
| Operating profit |
(143) |
| Fixed assets (including Rs2.1bn in investments) |
3,721 |
| Net current assets |
482 |
| Equity funds |
2,141 | Source: Company
Financial summary
Y/e 31 Mar
(Rs m) |
FY10 |
FY11 |
FY12E* |
FY13E |
| Revenues |
19,664 |
23,511 |
41,238 |
29,440 |
| yoy growth (%) |
21.8 |
19.6 |
75.4 |
(28.6) |
| Operating profit |
5,255 |
6,631 |
11,753 |
7,743 |
| OPM (%) |
26.7 |
28.2 |
28.5 |
26.3 |
| Reported PAT |
2,743 |
3,064 |
4,466 |
2,322 |
| yoy growth (%) |
9.7 |
11.7 |
45.7 |
(48.0) |
| |
|
|
|
|
| EPS (Rs) |
18.9 |
21.1 |
30.8 |
16.0 |
| P/E (x) |
5.6 |
5.0 |
3.4 |
6.6 |
| P/BV (x) |
1.7 |
1.3 |
0.9 |
0.8 |
| EV/EBITDA (x) |
4.6 |
4.6 |
3.2 |
4.5 |
| Debt/Equity (x) |
1.3 |
1.5 |
1.7 |
1.4 |
| ROE (%) |
31.5 |
28.6 |
31.1 |
13.1 |
| ROCE (%) |
21.0 |
19.1 |
22.7 |
11.5 | Source: Company, India Infoline Research
*company has changed accounting year to Oct-Sep and hence FY12 reflects a 18-month period
|
|
|
|
|
|
|
|