TRF - Q3FY12 Result Update - Emkay

Reco: HOLD
CMP: Rs 345
Target Price: Rs 282

Investor concerns unresolved; Retain Hold

- Above estimates – (1) Strong standalone revenue growth (+89% yoy) – led by Projects div. (2) EBITDA margins down 570 bps qoq to 4.8% - negative surprise (3) APAT at Rs48 mn

- Auto components disappoints – (1) Revenue growth at 1% yoy (2) EBITDA margins at 3.6% - negative surprise (3) forex loss of Rs56 mn (4) Net loss of Rs57 mn

- Order inflows remain dismal - secures Rs1.9 bn orders. Order book cover down to 1.5X. L1 orders worth Rs5 bn – expect finalization in 2 quarters. DER deteriorates to 3.0X

- Cut earnings by 47% & 10% for FY12E & FY13E. Investor concerns on sustainable operational performance unresolved. See no upside catalysts. Retain Hold with target of Rs282.

Source : Equity Bulls

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