Tata Sponge - 4QFY13 Result Update - Nirmal Bang

- Result was below than market estimates

- Net Sales was up by 16.3% YoY to Rs. 206.7 cr and by 5.3% QoQ.

- The EBITDA declined by 26.7% YoY to Rs. 18.7 cr and by 31.6% on QoQ basis. The EBIDTA margin fell by 530bps YoY to 9% in Q4FY13 and down by 400bps on QoQ basis. The margin declined on account of jump in raw-material cost, employee expenses as a % of sales, though the fall in EBITDA got some respite from the cost control in Other expenses.

- The PAT was down by 36.1% YoY to Rs. 9.4 crs and by 54.5% QoQ. The jump in interest cost by 23.4% YoY and by 504.5% QoQ, and jump in tax rate contributed into the steep fall in the profitability of the company. Tax rate stood at 41.2% in Q4FY13 as against 33.6% in Q4FY12 and 29.8% in Q3FY13. The jump in Other income by 25.9% YoY and by 8.5% QoQ restricted the fall in PAT.

- The PAT margin stood at 4.5% in Q4FY13 as against 8.2% in Q4FY12 and 10.5% in Q3FY13.

Source : Equity Bulls

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