Prakash Industries - Q4FY13 Result Review - Angel Broking

Prakash Industries reported disappointing profitability performance for 4QFY2013 due to higher costs. Its net sales decreased by 4.3% yoy to Rs. 602cr in 4QFY2013 whereas its EBITDA margin dipped by 368bp yoy to 13.3% on account of sharp rise in input costs and other expenses. EBITDA also dipped by 25.0% yoy to Rs. 80cr. Depreciation increased by 15.9% yoy to Rs. 27cr and the Interest expenses increased by 132.8% yoy to Rs. 15cr in 4QFY2013. Consequently, net profit decreased by 48.9% yoy to Rs. 39cr.

We maintain our Buy rating on the stock with a target price of Rs. 48.

Source : Equity Bulls

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