OnMobile Global (Q1 FY13)

India Infoline News Service | Mumbai |

OnMobile reported ~4% qoq and ~36% yoy rise in Q1 FY13 revenues again led by international growth (est. +11.3% qoq ) while domestic market remained under pressure

CMP Rs38 
  • OnMobile reported ~4% qoq and ~36% yoy rise in Q1 FY13 revenues again led by international growth (est. +11.3% qoq ) while domestic market remained under pressure
  • Wage hikes wef April 1 (PY from July 1) & continued hiring in nascent markets led to 23% sequential jump in staff costs which led to 356bps qoq fall in margin to 19.4%, the lowest since Q4 FY10
  • Lower margin performance and higher foreign/withholding taxes led to ~26% yoy drop in PAT though lower effective tax rate qoq resulted in near doubling of profit
  • We would wait for updates on earnings & business in the post results conference call before reviewing our estimates and hence for now keep our earlier BUY reco and price target under review.   
Results table
(Rs m) Q1 FY13 Q4 FY12 % qoq Q1 FY12 % yoy
Net sales 1,852 1,776 4.3 1,364 35.8
Content fee & royalty (239) (248) (3.9) (157) 52.5
Sales & services (132) (126) 4.9 (114) 15.7
Personnel costs (766) (622) 23.0 (500) 53.3
Other expenses (357) (371) (4.0) (322) 10.6
Operating profit 359 407 (11.9) 271 32.3
OPM (%) 19.4 22.9 (356) bps 19.9 (52) bps
Depreciation (243) (260) (6.6) (159) 52.7
Interest (9) (9) - (6) 67.3
Other income 59 42 39.9 58 2.2
PBT 166 181 (8.0) 165 0.8
Tax (71) (133) (46.4) (37) 91.4
Effective tax rate (%) 42.8 73.5 (3,072) bps 22.5 2,024 bps
PAT 95 48 98.7 128 (25.5)
PAT margin (%) 5.1 2.7 244 bps 9.4 (423) bps
Source: Company, India Infoline Research
BSE 53.70 0 (0%)
NSE 53.60 [0.30] ([0.56]%)

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