Sadbhav Engineering - 4QFY2013 Result Review - Angel Broking

For 4QFY2013, Sadbhav Engineering (SEL) reported a mix set of numbers. SEL posted better-than expected numbers on the revenue front; however owing to abysmal operational performance earnings were in-line with our estimate. On the top-line front, SEL reported revenue of Rs. 702cr, indicating a decline of 22.4% yoy which was significantly higher than our estimate of Rs. 456cr. This was mainly on the back of pick up in execution in remaining under construction projects. On the margin front, EBITDAM came in 7.4%, a dip of 207bp on yoy basis and was lower than our estimate of 10.4%. Interest cost grew by 94.1% yoy/42.8% qoq to Rs. 29cr and was above our estimate. On the bottom-line front, company reported a PAT of Rs. 12cr (was in-line with our estimate of Rs. 12cr) in 4QFY2013 registering a decline of 75.4% yoy. This was mainly due to abysmal operational performance and higher interest expense during the quarter. At CMP, the stock is trading at P/E and P/BV of 15.9x and 1.8x FY2015 earnings.

The stock rating is currently under review. We shall revise our estimates post earnings conference call with the management.

Source : Equity Bulls

Keywords