Hitachi Home Life Solutions - Q4FY13 Result Review - Angel Broking

For 4QFY2013, Hitachi Home (HHLS) reported a yoy revenue growth of 14.6% to Rs. 270cr in line with our expectation of Rs. 269cr. The company disappointed on the EBITDA front with a margin of 5.5%, yoy contraction on 111bp from 6.6% in 4QFY2012. However, forex gain of Rs. 5.3cr led to 6.3% yoy growth in net profit to Rs. 8cr during 4QFY2013 as compared to Rs. 7cr in 4QFY2012.

For FY2013, HHLS's topline growth came in at 20.3% to Rs. 960cr, while the EBITDA margin expanded by 506bp yoy to 8.7% from 3.7% in FY2012 owing to lower raw material costs and declining other expenses. This led to a 1411% growth in net profit to Rs. 49cr in FY2013 from Rs. 3cr in FY2012.

As we rollover to FY2015, we upgrade the stock to Buy with a target price of Rs. 184 based on a target PE of 10x for FY2015E.

Source : Equity Bulls

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