BGR Energy - Q4FY13 Result Review - Angel Broking

For 4QFY2013, BGR Energy's (BGR) top-line was in-line with our expectation, declining by 6.5% yoy to Rs. 1,063cr. The subdued performance on top-line front was driven by decline in capital goods segment by 8.9% yoy to Rs. 80cr and decline in EPC segment by 6.3% yoy to Rs. 984cr. On the operating front, EBITDA margins were better than our estimates, with margin expanding by 112bp yoy to 13.0% (aided by softening in commodity prices). However, higher interest (due enhanced working capital requirement) dragged the bottom-line down by 19.8% yoy to Rs. 54cr.

We recommend Neutral on the stock.

Source : Equity Bulls

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