Edelweiss - Bartronics - Q4FY07 results above expectations - Maintain Accumulate

[Deadpresident]

 

Bartronics India (BSIL IN, INR 124, Maintain Accumulate)

 

Q4FY07 results were above our expectations. Key highlights:

• The company posted revenues of INR 179 mn, a 95% y-o-y growth aided by buoyancy in RFID sales
• EBITDA grew 158% y-o-y to INR 51 mn and EBITDA margins swelled by 700 bps y-o-y to 28% due to increased contribution from solutions business along with a fall in the hardware trading business
• Net profit grew 213% y-o-y to INR 46 mn. Subsequent to the jump in EBITDA margins, net margins swelled to 26% from 16% in Q4FY06 assisted by lower tax rates

 

FY07 results:

• Net revenues grew 119% y-o-y to INR 635 mn
• EBITDA grew 128% y-o-y to INR 169 mn with EBITDA margins at 27%
• Net profit grew 151% y-o-y to INR 135 mn with net margins at 21%

 

Financials and outlook:

• We have not factored in revenues from the smart card manufacturing unit which is likely to commence commercial production by May'07. The management expects revenues of INR 1.2 bn with similar margins from this facility for FY08.
• At the CMP of INR 124 the stock trades at 16.4x FY07 EPS of INR 7.6. Although we have an Accumulate recommendation on the stock, we will revise our numbers and review our recommendation post our meeting with the management.

 

 

 

The best resource for Indian Stock Reports >> http://DEADPRESIDENT.BLOGSPOT.COM