Subros - Q4FY13 Result Review - Angel Broking

For 4QFY2013, Subros posted revenue de-growth of 5.8% yoy to Rs. 348cr, as volumes declined by 1.5% yoy, while realizations came in lower by 4.4% yoy. The EBITDA margin for the company declined by 196bp yoy to 9.5%, primarily due to 36.1% yoy increase in staff costs. On a sequential basis too, it declined by 76bp. Hence, operating profit de-grew by 21.9% yoy to Rs. 33cr. The company reported other income of Rs. 10cr during the quarter, which was almost nil in 4QFY2012. The reported net profit came in at Rs. 9cr as against Rs. 35cr in 4QFY2012 (which was boosted by extraordinary gains of around Rs. 29cr), hence on an adjusted basis, net profit stood at Rs. 9cr as against Rs. 6cr in 4QFY2012, a growth of 43.1% yoy.

At CMP, the stock is trading at 3.5x FY2015E earnings. We maintain our Accumulate rating on the stock with a target price of Rs. 35.

Source : Equity Bulls

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