Views on Sadbhav Engineering Ltd. 4QFY2016 Results: Angel Broking

Views of Mr. Santosh Yellapu (Sr. Equity Research Analyst - Infrastructure, Angel Broking) on Sadbhav Engineering Ltd. 4QFY2016 Results:

SEL reports better than expected Adj. PAT for 4QFY2016

"Sadbhav Engineering Ltd. (SEL) reported impressive set of Adj. PAT numbers for 4QFY2016. For the second successive quarter, SEL reported 11.3% YoY decline in its revenues to INR 858cr, which were lower than our estimates. Lower contribution from in-house BOT portfolio led to such revenue decline. Low contribution from in-house BOT projects and higher employee expenses led SEL report 41bps YoY decline in EBITDA margin to 9.5%, which is almost in-line with our expectation. PAT for the quarter came in at INR 41cr. On adjusting for exceptional item of INR 9cr (excess provision written back), SEL's Adj. PAT for the quarter stood at INR 50cr, which is ahead of our expectation of INR 44cr. Adjusted PAT margin were at 5.8% for the quarter vs. 4.0% in corresponding period a year ago. 4QFY2016 Adj. PAT benefited from high other income and low tax rate. During 4QFY2016, Sadbhav Group reported L1 for 2 Hybrid Annuity projects worth INR 1,336cr. Post these order wins, group's total Order Book would increase to INR 8,715cr. We wait for more insights from the management concall."

Shares of SADBHAV ENGINEERING LTD. was last trading in BSE at Rs.262.8 as compared to the previous close of Rs. 262.15. The total number of shares traded during the day was 8448 in over 270 trades.

The stock hit an intraday high of Rs. 265 and intraday low of 253. The net turnover during the day was Rs. 2211562.

Source : Equity Bulls

Keywords