Kalpataru Power Transmission - Results miss on weak revenue; margins/returns to improve in FY2014E - Kotak

KPTL results missed our estimates on weaker-than-expected revenues (down 3% to Rs10.3 bn); EBITDA margin was broadly in line (at 9.7%) leading to PAT of Rs486 mn (down 14%). Results were broadly strong on most other parameters with improving backlog (Rs124 bn) and an in-line balance sheet.

We note potential for improved margins (lower competitive intensity; guidance of 100 bps expansion) and returns (SSL stake sale, real estate monetization, BOT asset commissioning). We retain BUY (TP: Rs120).

Source : Equity Bulls

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