Cummins India-First cut
RAJESH DESAI
Dear Sir/Madam,
Cummins India Ltd, has announced it Q4FY12 and FY12 results on 15th May, 2012.
Quarterly Performance:
The company arrived at net sales of INR 1021.28 crores, which was up by 1.16% on YoY basis and 5.23% on QoQ basis. The EBITDA was up by 5.37% on YoY basis and 8.88% on QoQ basis. However, the EBITDA Margin was up by 76bps and 64bps on YoY and QoQ basis, respectively. The company posted a net profit of INR144.57 crore, which was marginally up by 0.42% on YoY basis and 2.57% on QoQ basis.
Annual Performance:
The company arrived at annual net sales of INR4052.17 crore, which was up by just 2.71% as compared to FY11. But, the EBITDA was down by 10.52% on YoY basis, followed by downfall of 254bps in the EBITDA Margin. The company posted a net profit of INR591.27 crore, which was marginally up by 0.05%.
The Board has recommended a final dividend of INR6 per share on equity shares of Rs. 2/- each fully paid up for the year ended March 31, 2012, in addition to the interim dividend of Rs. 5/- per share.
At the current CMP of INR429, we recommend a “BUY” with a target price of INR537 for the period of 2 years ; an upside of 25.17%.
*In Q1FY12, the company issued Bonus Shares in the proportion of 2 (two) Bonus equity shares of Rs. 2/- each for every 5 (five) existing equity shares of Rs. 2/- each fully paid up by capitalization of reserves of the Company.
Regards,
Team Microsec Research
Microsec Capital Limited
Tel: 91 33 30512100
Fax: 91 33 30512020
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CA. Rajesh Desai