Crompton Greaves - 3QFY2013 Result Review - Nirmal Bang

The consolidated revenue fell 1.9% YoY to Rs29.7bn, 3.1% below our estimate

Business restructuring cost in Belgium operations amounting to Rs1.1bn in 3QFY13 led to EBITDA crashing by 99% YoY to Rs20mn. (Our estimate/Bloomberg consensus at Rs1.3bn/Rs1.6bn, respectively).

Crompton reported net loss of Rs1.9bn compared to our estimate/Bloomberg consensus of net profit of Rs543mn/Rs638mn, respectively. Excluding the employee severance cost, net loss stands at Rs687mn. The profitability across the segments was weak during the quarter.

We currently have a Sell rating on the stock with a target price of Rs105. We will release a detailed note post the con-call scheduled at 9.30 am today.

Source : Equity Bulls

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