Kalpataru Power - In line results; Growth priced in - Edelweiss

Kalpataru Power (KPP) Q3FY13 PAT was in line with our estimates adjusting for forex loss of INR40mn. EBITDA margins declined by 130bps YoY to 10% mainly due to higher staff cost as a result of increments accruing in the quarter. It indicated that margins are expected to improve in the coming quarters. The company recorded an impressive order inflow of INR9bn (vs INR2.5bn in Q3FY12).

The company has maintained its FY13E revenue guidance of 15% and has issued fresh guidance of 15% revenue growth for FY14E.

We maintain 'HOLD'.

Source : Equity Bulls

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