Subros - 1QFY2014 Result Review - Angel Broking

Subros reported poor results for 1QFY2014, which were lower than our expectations and impacted due to the continued slowdown in the automotive sector. Top-line for the quarter registered a decline of 12.1% yoy to Rs. 280cr on account of an 8.1% yoy decline in volumes and 3.8% yoy decline in net average realization. While, the volume decline was broadly in-line with the decline in the domestic passenger vehicle industry; net average realization was impacted due to the adverse product-mix. On the operating front, EBITDA margin improved to 10.5% (up 150bp yoy) driven by easing of commodity prices and also due to decline in other expenditure. Net profit stood at Rs. 3cr as against Rs. 2.75cr in 1QFY2013.

The stock rating is currently under review. We would revise our target price and rating post our interaction with the management.

Source : Equity Bulls

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