Dalmia Securities

Bajaj Electricals (Reduce)

CMP: Rs 197

Target: Rs 200

Bajaj Electricals Ltd (BJE) reported Q4FY2012 results. Standalone revenue came in at Rs 1,058.63 crore as against Rs 979.35 crore y-o-y, up eight per cent, which was in line with our expectations. While, net profit de-grew by 15 per cent to Rs 48.98 crore as against Rs 57.45 crore mainly due to rise in interest rate. EBITDA margin stood at eight per cent in Q4FY12 as against 10 per cent in Q4FY11 mainly on back of weak operating performance of consumer durable segment and engineering and project (E&P) segment. Consumer durable EBIT margin declined by 200 bps mainly on back of slower sales from fans and air coolers. Simultaneously, rupee depreciation had impacted on the imported goods. Management had also stated till mid last year, consumer goods from China is used to be 10-20 per cent cheaper than Indian consumer goods.

Prabhudas Lilladher

Engineers India (Accumulate)

CMP: Rs 227

Target: Rs 246

Engineers India (EIL) posted a robust top-line growth of 29 per cent at Rs 122 crore in Q4FY12 which was higher than our estimate of Rs 1,000 crore. Sales composition continues to be skewed towards Lump Sum Turnkey Projects (LSTK). These projects had a share of 73.5 per cent in total sales as compared to 68 per cent in Q4FY11 and have grown by 40 per cent y-o-y. Similarly, LSTK revenue growth of 47 per cent for FY12 led to a 31 per cent growth in sales. Other income has increased by 44 per cent y-o-y (on account of maturity of FMPs) which aided a 25 per cent y-o-y PAT growth at Rs 190 crore in Q4FY12. PAT for FY12 grew by 25 per cent y-o-y, whereas, EBITDA grew by 9.9 per cent. The current order book stands at around Rs 4,600 crore (down from Rs 5,700 crore in Q3FY12) and the order inflow for Q4FY12 stood at Rs 50 crore.

Related Topics
comment COMMENT NOW