Ashoka Buildcon - 4QFY2013 Result Review - Angel Broking

Ashoka Buildcon (ABL) posted 4QFY13 results reflect improvement in execution however bottom-line disappoints owing to lower-than-expected operating performance and exceptional item. ABL's top line reported a robust growth of 38.8% yoy to Rs. 542cr in 4QFY2013 and was higher than our estimate by 19.0%. On the EBITDAM front, ABL's margins came in at 16.7%, a dip of 336bp on a yoy basis and below our estimate of 23.0%. This was mainly due to increase in operating expense (a jump of 44% yoy). On the bottom line, ABL reported a PAT of Rs. 6cr (our estimate was Rs. 45cr) in 4QFY2013, indicating a decline of 86.2% yoy. This was mainly on back of lower-than-expected operating performance and an exceptional item of Rs. 15.7cr. Adjusting to this, PAT came in at Rs. 22cr, a decline of 52.6% for the quarter.

At CMP, the stock is trading at P/E and P/BV of 9.2x and 0.9 FY2015 earnings. The stock rating is currently under review. We shall revise our estimates post earnings conference call with the management which is scheduled on 14th May 2013 at 4.30pm.

Source : Equity Bulls

Keywords