Re: {LONGTERMINVESTORS} Results corner --- thread

[Rajesh Desai]

Results Announced- NB

Mindtree (Insti)	·         Mindtree’s  4QFY13 US dollar revenue grew 2.8% QoQ at US$113mn, in line with our estimate of US$113.3mn. ·         Volume growth was healthy at 3.7% QoQ, while blended pricing dipped 1.4% QoQ. IT services (ITS) grew 3% QoQ, while product engineering services (PES) grew 2.3% QoQ. ·         Rupee revenue grew 3.8% QoQ to Rs6.12bn, in line with expectations. ·         Margins, however, declined 138bps QoQ on higher employee costs, lower utilization and billing rates. This, along with forex losses of Rs153mn (Rs142mn loss in 3QFY13), led net profit to decline 20.1% QoQ to Rs789mn (12.4%/3% below our/consensus estimates, respectively). ·         We cut our FY14E/FY15E EPS by 5%/2.2%, respectively and roll over our target multiple to FY15E EPS. Consequently, we have upgraded the stock to Hold from Sell with a revised target price of Rs889 (Rs805 earlier), implying a PE of 9x FY15E EPS.
Ultratech (Insti)	·         UltraTech Cement’s (UCL) 4QFY13 financial performance was broadly in line with our as well as Bloomberg consensus estimates, with net sales at Rs53.9bn (1%/4% below our/Bloomberg consensus estimates, respectively) and EBITDA at Rs12.0bn (3% below our and Bloomberg consensus estimates). ·         Tax provisioning jumped 19% in the wake of additional deferred tax liability of Rs870mn because of the increase in surcharge on income tax which was offset by higher other operating income and lower depreciation than our estimates. ·         Consequently, PAT at Rs7.26bn was above our estimate by 3%. ·         We expect cement prices to remain stable in the short-term and rise in 2HFY14 on likely improvement in demand. ·         Hence, we have retained our Buy rating on the stock with a TP of Rs2,179.
Swaraj Engines	·         Result was ok and in line with expectorations ·         Sales declined 8.3% QoQ and 3.3% YoY ·         EBITDA margins stood at 14.3% vs 15.4% in Q4FY12 and 14.8% in Q3FY13 ·         The stock is trading at trailing P/E of 9.8x
Cairn India (Insti)	·         Cairn India (CIL) reported net profit of Rs25,636mn (down 18%QoQ, up 17%YoY) for 4QFY13 compared to Bloomberg consensus estimate of Rs27,750mn and our estimate of Rs29,212mn. ·         The profit was below our estimate due to: (1) Production volume of 202kbpd compared to our estimate of 205kbpd, and (2) Dry well expenses of Rs2,658mn at Sri Lanka block and Rs726mn at South Africa block. ·         We have retained our Buy rating on CIL with a revised target price of Rs370 from Rs373 earlier on account of: (1) All negatives on account of aggressive volume guidance priced in, and the confidence of the management to achieve 200kbpd- 215kpbd of production, (2) Commencement of exploration activity in the Rajasthan field likely to result in reserves upgrade, and the company’s plan to complete 50% of the exploration exercise in FY14E, (3) Multiple positive catalysts in the next 12-18 months on production ramp-up, (4) Valuation and expectations turning reasonable, (5) The stock price discounting Brent crude oil price with exploration upside at US$84/bbl in the long run, implying recovery of ~1bboe of reserves, and (6) The CIL stock being cheap on most valuation parameters.
Manali Petro	·         Manali Petro result not good but improved marginally as compared to previous qtr. ·         Company has declared 50 paisa Dividend.  At current price dividend yield works out to around 6%
Persistent Systems	·         Persistent Systems reported Q4FY13 numbers marginally below expectations ·         USD revenues grew 2.2% QoQ at $ 62.1 mn ·         INR revenues were flat QoQ Rs.334 crore ·         EBIDTA margins were flattish QoQ at 24.9% ·         Adjusted PAT (for forex) was flat QoQ ·         At CMP, stock is available at 10x its FY14E earnings and we recommend HOLD on the stock
Zensar Technologies	·         Zensar reported Q4FY13 numbers below our expectations ·         Revenues declined 3.2% QoQ on the back lower product sales. ·         EBIDTA margins remained flat QoQ at 13.1% due to some setup costs for large deals which are to begin in Q1FY14. ·         Company has given a guidance of 4-6% QoQ growth for Q1FY14 ·         At CMP, the stock is trading at a 4.6x its expected FY14E earnings. We will come out with detailed note and view post scheduled concall today
Tata Sponge	·         Result was below than market estimates ·         Net Sales was up by 16.3% YoY to Rs. 206.7 cr and by 5.3% QoQ. ·         The EBITDA declined by 26.7% YoY to Rs. 18.7 cr and by 31.6% on QoQ basis. The EBIDTA margin fell by 530bps YoY to 9% in Q4FY13 and down by 400bps on QoQ basis. The margin declined on account of jump in raw-material cost,  employee expenses as a % of sales, though the fall in EBITDA got some respite from the cost control in Other expenses. ·         The PAT was down by 36.1% YoY to Rs. 9.4 crs and by 54.5% QoQ. The jump in interest cost by 23.4% YoY and by 504.5% QoQ, and jump in tax rate contributed into the steep fall in the profitability of the company. Tax rate stood at 41.2% in Q4FY13 as against 33.6% in Q4FY12 and 29.8% in Q3FY13. The jump in Other income by 25.9% YoY and by 8.5% QoQ restricted the fall in PAT. ·         The PAT margin stood at 4.5% in Q4FY13 as against 8.2% in Q4FY12 and 10.5% in Q3FY13.

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CA. Rajesh Desai

[Rajesh Desai]

RESULTS ANNOUNCED POST MKT YDAY :

* ONGC : Q1 PAT Rs 40bn v/s 61bn, sales Rs 192bn v/s 200bn
* HPCL : Q1 loss Rs 14.6bn v/s 92.5bn, sales Rs 532bn v/s 464bn
* DLF : Q1 PAT Rs 1.81bn v/s 2.93bn, sales Rs 23bn v/s 22bn
* JAIPRAKASH POWER : Q1 PAT Rs 929mn v/s 1.83bn, sales Rs 7.86bn v/s 5.45bn
* UNITED BANK : Q1 PAT Rs 447mn v/s 1.74bn, int income Rs 24.6bn v/s 22.8bn..     gross NPAs 5.59% v/s 3.47%
* EROS INTLN : Q1 PAT Rs 204mn v/s 369mn, sales Rs 1.41bn v/s 2.5bn

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CA. Rajesh Desai