Ballarpur Industries - Margin pressure continues - Emkay

- BILT's Q3FY12 results were below est due to lower margins. Consol revenues of Rs 12.5bn, +7% yoy were in line however APAT at Rs 278mn, -43%yoy was below est

- Despite company undertaking price hikes recently, paper margins remain under pressure. Pulp realizations remain healthy at Rs 54,100/mt

- Expanded pulp line at Sabah is in ramp-up phase & commercial production is expected to start from May'12. Margins are likely to improve post new pulp plant stabilizing

- With near term pressure on margins & increased supply in industry, we remain cautious on paper companies. Maintain Accumulate with target of Rs 35.

Source : Equity Bulls

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