Electrosteel Castings' associate Electrosteel Steel reported 4QFY2013 results - Angel Broking

Electrosteel Castings (ECL)' associate, Electrosteel Steel (ESL) reported its 4QFY2013 results. Net sales grew by 31.5% yoy to Rs. 73cr. However, it reported a loss of Rs. 46cr at the EBITDA level due to higher employee costs and other expenditure. The company reported an exceptional item relating to depreciation not provided since the inception of the new unit amounting to Rs. 2cr and hence the adjusted net loss stood at Rs. 120cr due to higher depreciation expenses of Rs. 18cr and interest expenses of Rs. 57cr.

We maintain our Buy rating on ECL with a target price of Rs. 26.

Source : Equity Bulls

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