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| India Infoline Research Team / 17:10 , Feb 05, 2010 |
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- Revenue declines 1.0% YoY due to lower realisations; marginally higher than our estimates
- OPM contracts by 150bps to 24.9% on account of surge in other overheads
- Higher depreciation coupled with increase in interest outflow drags PAT lower; below our estimates
- Thondebhavi and Kudithini grinding units commence trial run
- Maintain Market Perform with a price target of Rs881
Result table
(Rs m)
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Q4 CY09
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Q4 CY08
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% yoy
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Q3 CY09
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% qoq
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Net sales
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19,839
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20,040
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(1.0)
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20,055
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(1.1)
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Material costs
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(2,148)
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(2,858)
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(24.8)
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(2,083)
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3.1
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Personnel costs
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(917)
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(1,469)
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(37.6)
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(998)
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(8.1)
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Power and fuel costs
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(3,950)
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(4,036)
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(2.1)
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(3,595)
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9.9
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Freight cost
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(2,670)
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(2,508)
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6.5
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(2,548)
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4.8
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Other overheads
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(5,221)
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(3,886)
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34.4
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(3,791)
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37.7
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Operating profit
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4,933
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5,283
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(6.6)
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7,040
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(29.9)
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OPM (%)
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24.9
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26.4
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(150) bps
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35.1
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(1024) bps
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Depreciation
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(1,052)
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(768)
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37.1
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(796)
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32.2
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Interest
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(181)
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(120)
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50.7
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(135)
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33.8
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Other income
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200
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(78)
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(358.5)
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148
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35.6
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PBT
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3,900
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4,318
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(9.7)
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6,257
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(37.7)
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Tax
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(1,092)
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(1,315)
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(17.0)
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(1,900)
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(42.6)
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Effective tax rate (%)
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(28.0)
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(30.5)
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247 bps
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(30.4)
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238 bps
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Reported PAT
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2,809
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3,003
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(6.5)
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4,356
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(35.5)
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PAT margin (%)
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14.2
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15.0
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(83) bps
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21.7
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(757) bps
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Ann. EPS (Rs)
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59.8
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63.9
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(6)
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92.8
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(36)
| Source: Company, India Infoline Research
Lower realizations hurt revenues
ACC revenues declined by 1.0% yoy to Rs19.8bn, marginally higher than our estimates of Rs19.3bn. Average realization witnessed a decline of 3.0% yoy and 8.2% sequentially, as pricing pressures emerged in southern and western markets, which account for ~35% of ACC sales. The company’s volume grew by 1.2% yoy (7.7% qoq), owing too higher demand in key northern and eastern markets.
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