will government's massive surge in investment ... - Myiris.com
will government's massive surge in investment ... - Myiris.com
will government's massive surge in investment ... - Myiris.com
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Apr-Jun 2013 Earn<strong>in</strong>gs Preview<br />
KEC International<br />
Rat<strong>in</strong>g<br />
Accumulate<br />
Price (Rs) 32<br />
Target Price (Rs) 56<br />
M/Cap (Rs bn) 8.2<br />
Shares o/s (m) 257.0<br />
Given the strong order carry, we expect steady sales growth of 12% YoY at Rs15.2bn.<br />
Marg<strong>in</strong>s are likely to be under pressure due to execution of low marg<strong>in</strong> orders and<br />
contribution from new bus<strong>in</strong>esses with low marg<strong>in</strong>s and forex losses. Higher <strong>in</strong>terest<br />
costs and lower marg<strong>in</strong>s <strong>will</strong> take a toll on the PAT growth.<br />
Key Figures (Rs m)<br />
Y/e March FY13 FY14E FY15E<br />
Net Sales 69,795 80,971 89,750<br />
EBITDA 3,814 5,305 6,662<br />
Marg<strong>in</strong> (%) 5.5 6.6 7.4<br />
PAT 654 1,674 2,372<br />
EPS (Rs) 2.5 6.5 9.2<br />
Growth (%) (64.9) 156.0 41.7<br />
RoE (%) 5.7 13.0 15.8<br />
PE (x) 12.6 4.9 3.5<br />
P / BV (x) 0.7 0.6 0.5<br />
EV / E (x) 5.6 4.0 3.3<br />
Quarterly Table (Rs m)<br />
Y/e March<br />
Q1<br />
FY14E<br />
Q1<br />
FY13<br />
YoY gr.<br />
(%)<br />
Q4<br />
FY13<br />
12M<br />
FY14E<br />
12M<br />
FY13<br />
YoY gr.<br />
(%)<br />
Net Sales 15,278 13,641 12.0 21,500 80,971 69,795 16.0<br />
EBITDA 578 1,032 (44.0) 889 5,305 3,814 39.1<br />
Marg<strong>in</strong> (%) 3.8 7.6 (378)bps 4.1 6.6 5.5 109 bps<br />
Reported PAT (107) 332 (132.3) (138) 1,674 654 156.0<br />
PAT (Excl. Ex Items ) (107) 332 (132.3) (138) 1,674 654 156.0<br />
Operat<strong>in</strong>g Metrics<br />
Order Book 86,222 94,620 (8.9) 89,400 95,235 94,700 0.6<br />
Order Flow 12,100 20,200 (40.1) 17,040 82,324 74,840 10.0<br />
Interest % sales 2.7 2.9 (19)bps 2.7 2.8 2.8 (2)bps<br />
Power Grid Corporation<br />
Rat<strong>in</strong>g<br />
BUY<br />
Price (Rs) 105<br />
Target Price (Rs) 133<br />
M/Cap (Rs bn) 535.4<br />
Shares o/s (m) 5,084.1<br />
We expect the <strong>com</strong>pany to cont<strong>in</strong>ue to deliver on execution. We also believe that<br />
the capitalization <strong>will</strong> be strong (up ~23% YoY), go<strong>in</strong>g ahead. As per the <strong>com</strong>pany,<br />
quick clearance and corporation from the M<strong>in</strong>istry of Power has also aided<br />
execution. It highlighted that there has been a marked acceleration <strong>in</strong> secur<strong>in</strong>g<br />
clearances from MoEF <strong>in</strong> the recent past.<br />
Key Figures (Rs m)<br />
Y/e March FY13 FY14E FY15E<br />
Net Sales 127,579 156,931 180,559<br />
EBITDA 109,999 136,832 161,012<br />
Marg<strong>in</strong> (%) 86.2 87.2 89.2<br />
PAT 42,343 47,892 52,844<br />
EPS (Rs) 9.1 9.4 10.4<br />
Growth (%) 30.1 3.0 10.3<br />
RoE (%) 15.1 14.3 13.6<br />
PE (x) 11.5 11.2 10.1<br />
P / BV (x) 1.6 1.5 1.3<br />
EV / E (x) 10.6 9.0 8.3<br />
Quarterly Table (Rs m)<br />
Y/e March<br />
Q1<br />
FY14E<br />
Q1<br />
FY13<br />
YoY gr.<br />
(%)<br />
Q4<br />
FY13<br />
12M<br />
FY14E<br />
12M<br />
FY13<br />
YoY gr.<br />
(%)<br />
Net Sales 35,933 28,883 24.4 34,222 156,931 127,579 23.0<br />
EBITDA 30,383 24,646 23.3 28,795 136,832 109,999 24.4<br />
Marg<strong>in</strong> (%) 84.6 85.3 (78)bps 84.1 87.2 86.2 97 bps<br />
Reported PAT 11,548 8,701 32.7 11,186 47,892 42,343 13.1<br />
PAT (Excl. Ex Items) 11,548 8,701 32.7 11,186 47,892 42,343 13.1<br />
Operat<strong>in</strong>g Metrics<br />
Capitalization(Rs bn 50 41 22.8 105 170 170 0.0<br />
July 8, 2013 85
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