Fwd: Sterlite Industries Q2FY12 Result Update; Cost escalation continues; Accumulate; Target: Rs 162
Deepak Vaishnav
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Sterlite Industries |
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Cost escalation continues |
ACCUMULATE
CMP: Rs 116 Target Price: Rs 162
n Q2FY12 revenue at Rs 102 bn with a growth of 68% YoY and 3% QoQ was in line with estimates; Weak INR and volume growth have been the key drivers for higher revenue
n EBITDA at Rs 24.8 bn, despite a YoY growth of 62% fell 10% on QoQ on account of higher CoP in Aluminium and power businesses. INR depreciation also played spoil sport
n Higher interest costs, lower than expected other income and losses in aluminium business during the quarter restricted the PAT at Rs 10 bn, flat YoY and down 39% QoQ
n Barring zinc, subdued performance of other businesses and rising costs continue to be a worry. Revising our SOTP target price to Rs 162/ share; Maintain Accumulate
Regards,
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Goutam Chakraborty |
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Research Analyst | Emkay Global Financial Services Ltd. | www.emkayglobal.com| | Email : goutam.ch...@emkayglobal.com |
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Board No. +91-22-66121212 | Extn. 275 | DID : 66121275 | Mob No. : +919867361765 | |
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