Electrosteel Castings - 3QFY2013 Result Review - Angel Broking

Electrosteel Castings (CMP: Rs.27 / TP: Under Review / Upside: -)

Electrosteel Castings reported its 3QFY2013 results. Its net sales increased by 6.5% yoy to Rs.473cr. It posted a positive EBITDA of Rs.47cr compared to an EBITDA loss of Rs.1cr in 3QFY2012 mainly due to lower raw material costs. Raw material costs as a percentage of net sales decreased to 53.9% in 3QFY2013, compared to 70.9% in 3QFY2012. The interest costs, however, increased by 142.3% yoy to Rs.27cr while other income grew by 397.5% yoy to Rs.38cr. Consequently, the company reported a net profit of Rs.33cr compared to a PAT loss of Rs.11cr in 3QFY2012.

We maintain our Buy view on the stock but keep our target price under review.

Source : Equity Bulls

Keywords