Financial Technologies reported a 53% rise in standalone profit after tax for Q3FY09 versus the previous year. Standalone operating revenue increased 58% to Rs. 62.4 crore. Total income, excluding project divestment income, rose 69% to Rs. 105.4 crore. Expenses rose at a faster pace than revenue, putting pressure on margins. However, the analyst remains positive on the company's long-term prospects given its unique technology-driven business model and position as a global leader in financial markets. The analyst recommends buying the stock for a short-term target of Rs. 850 and long-term target of Rs. 1400-1500.
Tech Mahindra's recent deal restructuring with BT ends uncertainty and guarantees volumes. While margins are currently weak due to the BT deal and Satyam uncertainty, margins are expected to eventually recover to peer levels as the company has a pedigree as a tier-1 player. The stock currently looks attractive relative to peers on an EV/Sales basis, trading at a substantial discount to peer averages. Based on this, the report upgrades Tech Mahindra to a "Buy" recommendation with a target price of Rs1,168 per share.
For the fourth quarter of 2010, TVS Motor reported net sales of Rs. 1,216 crore, up 33.7% year-over-year due to a 27.8% increase in volumes and 8.7% increase in realizations. Operating margins expanded 118 basis points due to a 416 basis point drop in raw material costs. Net profit was Rs. 20.3 crore, up 38.9% year-over-year. Going forward, TVS Motor expects to improve market share following new product launches but faces competitive pressures. The analyst maintains a neutral rating due to recent stock price appreciation and TVS Motor's inconsistent performance history.
PTC India reported a 121.8% quarter-over-quarter growth in net revenue to Rs. 2,758 cr for 1QFY2011, driven by a 36.7% year-over-year increase in sales volume. Operating profit grew 194.2% qoq and 85.3% yoy to Rs. 28 cr due to higher trading margins. However, net profit declined 16.7% yoy to Rs. 28 cr due to lower other income and higher taxes. Going forward, the company expects further volume growth as new projects come online and higher trading margins will boost profits.
HT Media reported strong results for 1QFY2011 with revenues growing 22% year-over-year to Rs. 402.8 crore, driven by growth in advertising, circulation, radio, and internet revenues. Operating profits grew 55% to Rs. 78.6 crore due to a 410 basis point expansion in operating margins to 19.5% on the back of a 520 basis point increase in gross margins. Net profits increased 43.5% to Rs. 40.2 crore despite a rise in taxes and fall in other income, aided by top-line growth and lower interest costs. The company continued to see traction in its new businesses such as radio and internet.
- Mphasis Limited is an Indian IT & BPO services provider and subsidiary of Hewlett Packard (HP), with HP owning 61% stake.
- The document provides an analysis of Mphasis' business segments, financial performance, valuation and recommendations.
- Based on a projected FY12 P/E multiple of 15, the fair value for Mphasis is estimated to be Rs. 723 per share. The document recommends a 'HOLD' rating on the stock.
Telecom Italia 1Q 2010 Results - Domestic Market Gruppo TIM
Telecom Italia reported its 1Q 2010 results. Key highlights included:
1) Reversing the declining revenue trend, with mobile revenues stabilizing and fixed line revenues declining less severely.
2) Improving customer satisfaction levels through better service quality and new convergent offers.
3) Continuing efforts to reduce costs and optimize the operating model.
1. Mahindra and Mahindra (M&M) reported good results for the first quarter of the fiscal year 2011, with net sales up 21.6% and operating profit up 27.4% compared to the same period last year.
2. Net profit beat analyst expectations by 11%, reaching Rs. 562 crore due to lower than expected tax rates and higher interest income.
3. The report recommends maintaining a "Buy" rating for M&M, setting a target price of Rs. 772 based on the company's core business valuation and value of investments.
Larsen and Toubro (L&T) reported much better than expected results for the fourth quarter of fiscal year 2010. Revenues grew 28.1% year-over-year to Rs. 13,858 crore, driven by increases in several business segments. Operating margins reached a historic high of 15.1% due to cost controls. The order backlog remained robust at Rs. 1,00,239 crore. Going forward, the analyst maintains a positive view on the company given its strong order backlog, operating cash flows, and return ratios above 20%.
Tech Mahindra's recent deal restructuring with BT ends uncertainty and guarantees volumes. While margins are currently weak due to the BT deal and Satyam uncertainty, margins are expected to eventually recover to peer levels as the company has a pedigree as a tier-1 player. The stock currently looks attractive relative to peers on an EV/Sales basis, trading at a substantial discount to peer averages. Based on this, the report upgrades Tech Mahindra to a "Buy" recommendation with a target price of Rs1,168 per share.
For the fourth quarter of 2010, TVS Motor reported net sales of Rs. 1,216 crore, up 33.7% year-over-year due to a 27.8% increase in volumes and 8.7% increase in realizations. Operating margins expanded 118 basis points due to a 416 basis point drop in raw material costs. Net profit was Rs. 20.3 crore, up 38.9% year-over-year. Going forward, TVS Motor expects to improve market share following new product launches but faces competitive pressures. The analyst maintains a neutral rating due to recent stock price appreciation and TVS Motor's inconsistent performance history.
PTC India reported a 121.8% quarter-over-quarter growth in net revenue to Rs. 2,758 cr for 1QFY2011, driven by a 36.7% year-over-year increase in sales volume. Operating profit grew 194.2% qoq and 85.3% yoy to Rs. 28 cr due to higher trading margins. However, net profit declined 16.7% yoy to Rs. 28 cr due to lower other income and higher taxes. Going forward, the company expects further volume growth as new projects come online and higher trading margins will boost profits.
HT Media reported strong results for 1QFY2011 with revenues growing 22% year-over-year to Rs. 402.8 crore, driven by growth in advertising, circulation, radio, and internet revenues. Operating profits grew 55% to Rs. 78.6 crore due to a 410 basis point expansion in operating margins to 19.5% on the back of a 520 basis point increase in gross margins. Net profits increased 43.5% to Rs. 40.2 crore despite a rise in taxes and fall in other income, aided by top-line growth and lower interest costs. The company continued to see traction in its new businesses such as radio and internet.
- Mphasis Limited is an Indian IT & BPO services provider and subsidiary of Hewlett Packard (HP), with HP owning 61% stake.
- The document provides an analysis of Mphasis' business segments, financial performance, valuation and recommendations.
- Based on a projected FY12 P/E multiple of 15, the fair value for Mphasis is estimated to be Rs. 723 per share. The document recommends a 'HOLD' rating on the stock.
Telecom Italia 1Q 2010 Results - Domestic Market Gruppo TIM
Telecom Italia reported its 1Q 2010 results. Key highlights included:
1) Reversing the declining revenue trend, with mobile revenues stabilizing and fixed line revenues declining less severely.
2) Improving customer satisfaction levels through better service quality and new convergent offers.
3) Continuing efforts to reduce costs and optimize the operating model.
1. Mahindra and Mahindra (M&M) reported good results for the first quarter of the fiscal year 2011, with net sales up 21.6% and operating profit up 27.4% compared to the same period last year.
2. Net profit beat analyst expectations by 11%, reaching Rs. 562 crore due to lower than expected tax rates and higher interest income.
3. The report recommends maintaining a "Buy" rating for M&M, setting a target price of Rs. 772 based on the company's core business valuation and value of investments.
Larsen and Toubro (L&T) reported much better than expected results for the fourth quarter of fiscal year 2010. Revenues grew 28.1% year-over-year to Rs. 13,858 crore, driven by increases in several business segments. Operating margins reached a historic high of 15.1% due to cost controls. The order backlog remained robust at Rs. 1,00,239 crore. Going forward, the analyst maintains a positive view on the company given its strong order backlog, operating cash flows, and return ratios above 20%.
Ashok Leyland reported a 141.3% year-over-year growth in net sales to Rs2,939 crore for the fourth quarter of fiscal year 2010, in line with expectations. Net profit grew 317.6% year-over-year to Rs222.7 crore, higher than expected due to better operating margins and a change in depreciation policy. Operating margins increased 345 basis points due to price hikes, lower raw material prices, and cost reduction efforts. The company expects commercial vehicle industry volumes to grow 15-18% in fiscal year 2011.
TCS reported strong financial results for the fourth quarter of fiscal year 2010 that exceeded expectations. Revenue grew 1.1% over the previous quarter to Rs. 7,737 crore, driven by a 4% increase in volumes. However, currency fluctuations reduced realized revenue. Improved operating levers helped expand operating margins by 19 basis points sequentially and 368 basis points year-over-year. Strong other income and profit growth of 7.4% sequentially and 47.1% year-over-year exceeded forecasts. The company added over 10,000 employees in the quarter and closed 10 large deals.
Nestle reported a 21% increase in revenue for the second quarter driven by 20% growth in domestic sales and 36% growth in exports. However, earnings grew at a slower 12% due to a contraction in operating margins from rising input costs and increased spending on marketing. The analyst downgraded the stock to Reduce due to concerns over margin pressure and high valuations leaving little room for negative surprises. Top-line growth was robust due to increased sales volumes and limited price increases while exports picked up on higher sales to Russia.
Dabur reported a 16% year-over-year growth in top-line revenue for the fourth quarter of FY2010, below estimates. Earnings grew 30% year-over-year, above estimates, driven by higher gross margins and lower expenses. While top-line growth was lower than expected, strong operating performance from margin expansion led to earnings beating estimates. Going forward, the company expects input costs to remain low, though it maintains a neutral outlook on the stock given its recent run-up in price.
Amara Raja Batteries-Management Meet NoteAngel Broking
- Management indicated strong demand for batteries from the growing automobile industry and pickup in industrial activities.
- The company plans capacity expansions to meet increasing demand and expects to clock 15% CAGR in industrial batteries over the next few years.
- While demand from telecom batteries has contracted, the company expects 6-7% annual growth and is optimistic about long-term replacement demand.
Titan Industries reported stellar results for the fourth quarter of fiscal year 2010 that exceeded expectations. Revenue grew 48.9% year-over-year driven by robust 63.4% growth in the jewelry segment. Operating margins improved 140 basis points while earnings before interest, taxes, depreciation, and amortization (EBITDA) and net profit grew 81% and 87.8% respectively. The analyst maintains a Neutral rating due to rich valuations but revises financial estimates upward and expects continued strong performance given improving consumer sentiment.
Mphasis reported 4.8% quarter-over-quarter revenue growth to Rs. 1,279 crore for 3QFY2010. The company saw mixed performance, with strong volume growth in application and ITO segments, but steep pricing cuts of 9.6% in applications. Margins declined slightly due to pricing changes and salary hikes, but were supported by restructuring in BPO and cost optimization in ITO. Revenue was driven by financial services, technology, and healthcare verticals, while telecom declined due to client issues. The company added 22 new clients spanning industries and saw improved wallet share with existing clients.
1) Finolex Cables reported a 50.4% year-over-year increase in net sales to Rs. 493.1 crore for the first quarter of FY2011, driven by strong growth in the electrical cables segment.
2) Operating margins declined to 8% from 15.2% in the prior year quarter due to higher raw material costs, though margins improved sequentially.
3) Net profit increased 4.5% year-over-year to Rs. 23 crore for the quarter despite margin pressure, with sales growth offsetting higher costs.
Colgate Palmolive reported first quarter results for fiscal year 2011 with revenues growing 13% year-over-year to Rs. 528.8 crores, slightly below estimates. Earnings beat estimates due to a sharp rise in gross margins of 662 basis points year-over-year. Volume growth was 13% overall led by 14% growth in toothpaste and 19% growth in toothbrushes. The analyst maintains a "Reduce" rating due to the stock being highly expensive trading at 23.4 times estimated fiscal year 2012 earnings per share given muted earnings growth estimates.
TIM Participações S.A. reported its results for the second quarter of 2008. [1] The company saw a 1% growth in average revenue per user (ARPU) despite an overall market drop, supported by increased minutes of use. [2] Value-added services revenue grew 21% quarter-over-quarter and 49% year-over-year. [3] EBITDA increased 19% quarter-over-quarter to R$637 million, with a recovering EBITDA margin of 20.0%, despite partial spillover of trends from the first quarter of 2008.
SpiceJet reported strong financial results for the 1st quarter of FY2011, with net sales growing 34.9% year-over-year to Rs708cr, above expectations. Operating margins expanded significantly to 8.3% due to higher passenger loads. Net profit increased 109.6% to Rs55cr, also above estimates, driven by improved operating efficiency. The analyst maintains an 'Accumulate' rating on SpiceJet, expecting sales and profits to grow rapidly in the coming years as the company expands its fleet and benefits from strong industry demand fundamentals.
ITC posted strong quarterly results with top-line growth of 28% above estimates, driven by growth in cigarettes, agriculture, and non-cigarette FMCG. However, earnings growth was below estimates at 27% due to margin contraction from lower margins in agriculture. Cigarette volumes grew around 8-9% while margins expanded. The analyst maintains an accumulate rating and revises estimates upward to reflect stronger non-cigarette revenue and lower losses, while maintaining cigarette growth outlook.
1) Amazon reported Q3 2011 financial results with net sales up 44% year-over-year to $10.9 billion.
2) However, operating income decreased significantly, down 71% to $79 million compared to the same period last year.
3) Free cash flow also declined 17% year-over-year to $1.5 billion, as the company continues investing heavily in new business opportunities.
Wipro reported financial results for the first quarter of fiscal year 2011, with revenues growing 3.1% over the previous quarter and 12.6% over the same quarter last year. Operating profit margins expanded due to effective currency hedges, and net income grew 9% over the previous quarter and 30.5% over the first quarter of fiscal year 2010. The company's performance was driven by strong volume growth in IT services revenues, with new client additions and large deal wins during the quarter. The analyst maintained an "Accumulate" rating on Wipro stock, with a target price representing 13% upside.
- Revenue for CMC was up 20% year-over-year for the quarter at Rs. 240.84 crore compared to Rs. 201.35 crore in the same quarter last year.
- EBITDA was Rs. 17.14 crore for the quarter, up 103% year-over-year. However, the quarter was impacted by a Rs. 12.58 crore provision for a contract under dispute.
- Profit before tax was Rs. 15.38 crore for the quarter, up 9% year-over-year.
1) Colgate reported a 13.4% year-over-year growth in top-line to Rs. 516 crores, in line with estimates. Volume growth was steady at 11%.
2) Earnings grew 39.6% year-over-year to Rs. 114.4 crores, significantly beating estimates. This was driven by a 638 basis point expansion in operating margins to 24.1% due to higher gross margins.
3) The analyst maintains an 'Accumulate' rating and revised target price of Rs. 752, expecting the company to report a 15.1% CAGR in revenue through FY2012, while margins remain stable.
Marico reported strong revenue growth of 33% year-over-year for the first quarter, driven by double-digit volume growth in its core brands Parachute and Saffola. Parachute saw 10% volume growth and Saffola grew by around 15% despite price hikes by both brands. Operating margins declined slightly due to rising input costs. The analyst maintains a neutral rating on Marico, seeing the stock as fairly valued based on projected growth rates.
Cipla reported subdued fourth quarter results due to lower-than-expected technical know-how fees, which decreased 86% year-over-year. Net sales were in-line at Rs. 1,318 crore, driven by domestic and export formulations. Operating margins declined to 15.2% due to higher employee expenses. For the full year, net sales grew 8% to Rs. 5,358 crore while operating margins expanded to 20.3%. Cipla expects 8-10% revenue growth in fiscal year 2011 and maintained operating margins of 20%, excluding technical fees. The company remains optimistic about contributions from its inhaled products in Europe and potential supply deals with global pharmaceutical companies.
1 Q09 Earnings Eng Final[20090421134102809]Sang Park
The document provides LG Electronics' earnings release for the first quarter of 2009. It summarizes key financial results including:
- Consolidated sales of KRW 15.89 trillion, up 10.7% year-over-year but down 7.5% quarter-over-quarter. The operating profit margin was 0.12%.
- Sales and profit results for each business sector, including home entertainment, mobile communications, home appliances, and air conditioning. Most sectors saw sales growth year-over-year despite the economic recession.
- Parent company sales of KRW 7.07 trillion, up 2.1% year-over-year, with an operating profit of KRW 437 billion,
Infosys reported a 4.3% quarter-over-quarter growth in revenues to Rs. 6,198 crore for the first quarter of fiscal year 2011, backed by a 7.6% growth in volumes. However, earnings before interest and taxes (EBIT) margins fell by 1.8% due to annual wage hikes. Infosys revised its fiscal year 2011 revenue growth guidance upwards from 16-18% to 19-21% in rupee terms and maintained its earnings per share growth guidance of 7.2-11.5%. The growth was broad-based across services and verticals led by the banking, financial services and insurance sector.
Tech Mahindra reported a 4.2% quarter-over-quarter decline in revenue for the first quarter of fiscal year 2011, which was attributed to adverse currency movements and slower client decision making. The company's profitability declined as well, with earnings before interest, taxes, depreciation, and amortization margins contracting 480 basis points and net income declining 36.4% compared to the previous quarter. However, revenue grew 1.9% year-over-year and management expects growth to be led by strong volume increases from large transformational deals in the pipeline. While the outlook remains positive, uncertainties around currency fluctuations and aggressive hiring could pressure margins going forward.
Tech Mahindra Result Update 4qfy2010-040510Angel Broking
Tech Mahindra reported better-than-expected 4QFY2010 results, with revenue growth of -0.3% quarter-over-quarter. Revenue growth in constant currency was 4% supported by strong volume growth from their top account BT. EBITDA margins remained flat at 23.6% despite rupee appreciation and profit after tax grew 31.3% due to lower interest costs and foreign exchange gains. The analyst maintains a Buy recommendation based on expected revenue and profit growth over the next two years.
Ashok Leyland reported a 141.3% year-over-year growth in net sales to Rs2,939 crore for the fourth quarter of fiscal year 2010, in line with expectations. Net profit grew 317.6% year-over-year to Rs222.7 crore, higher than expected due to better operating margins and a change in depreciation policy. Operating margins increased 345 basis points due to price hikes, lower raw material prices, and cost reduction efforts. The company expects commercial vehicle industry volumes to grow 15-18% in fiscal year 2011.
TCS reported strong financial results for the fourth quarter of fiscal year 2010 that exceeded expectations. Revenue grew 1.1% over the previous quarter to Rs. 7,737 crore, driven by a 4% increase in volumes. However, currency fluctuations reduced realized revenue. Improved operating levers helped expand operating margins by 19 basis points sequentially and 368 basis points year-over-year. Strong other income and profit growth of 7.4% sequentially and 47.1% year-over-year exceeded forecasts. The company added over 10,000 employees in the quarter and closed 10 large deals.
Nestle reported a 21% increase in revenue for the second quarter driven by 20% growth in domestic sales and 36% growth in exports. However, earnings grew at a slower 12% due to a contraction in operating margins from rising input costs and increased spending on marketing. The analyst downgraded the stock to Reduce due to concerns over margin pressure and high valuations leaving little room for negative surprises. Top-line growth was robust due to increased sales volumes and limited price increases while exports picked up on higher sales to Russia.
Dabur reported a 16% year-over-year growth in top-line revenue for the fourth quarter of FY2010, below estimates. Earnings grew 30% year-over-year, above estimates, driven by higher gross margins and lower expenses. While top-line growth was lower than expected, strong operating performance from margin expansion led to earnings beating estimates. Going forward, the company expects input costs to remain low, though it maintains a neutral outlook on the stock given its recent run-up in price.
Amara Raja Batteries-Management Meet NoteAngel Broking
- Management indicated strong demand for batteries from the growing automobile industry and pickup in industrial activities.
- The company plans capacity expansions to meet increasing demand and expects to clock 15% CAGR in industrial batteries over the next few years.
- While demand from telecom batteries has contracted, the company expects 6-7% annual growth and is optimistic about long-term replacement demand.
Titan Industries reported stellar results for the fourth quarter of fiscal year 2010 that exceeded expectations. Revenue grew 48.9% year-over-year driven by robust 63.4% growth in the jewelry segment. Operating margins improved 140 basis points while earnings before interest, taxes, depreciation, and amortization (EBITDA) and net profit grew 81% and 87.8% respectively. The analyst maintains a Neutral rating due to rich valuations but revises financial estimates upward and expects continued strong performance given improving consumer sentiment.
Mphasis reported 4.8% quarter-over-quarter revenue growth to Rs. 1,279 crore for 3QFY2010. The company saw mixed performance, with strong volume growth in application and ITO segments, but steep pricing cuts of 9.6% in applications. Margins declined slightly due to pricing changes and salary hikes, but were supported by restructuring in BPO and cost optimization in ITO. Revenue was driven by financial services, technology, and healthcare verticals, while telecom declined due to client issues. The company added 22 new clients spanning industries and saw improved wallet share with existing clients.
1) Finolex Cables reported a 50.4% year-over-year increase in net sales to Rs. 493.1 crore for the first quarter of FY2011, driven by strong growth in the electrical cables segment.
2) Operating margins declined to 8% from 15.2% in the prior year quarter due to higher raw material costs, though margins improved sequentially.
3) Net profit increased 4.5% year-over-year to Rs. 23 crore for the quarter despite margin pressure, with sales growth offsetting higher costs.
Colgate Palmolive reported first quarter results for fiscal year 2011 with revenues growing 13% year-over-year to Rs. 528.8 crores, slightly below estimates. Earnings beat estimates due to a sharp rise in gross margins of 662 basis points year-over-year. Volume growth was 13% overall led by 14% growth in toothpaste and 19% growth in toothbrushes. The analyst maintains a "Reduce" rating due to the stock being highly expensive trading at 23.4 times estimated fiscal year 2012 earnings per share given muted earnings growth estimates.
TIM Participações S.A. reported its results for the second quarter of 2008. [1] The company saw a 1% growth in average revenue per user (ARPU) despite an overall market drop, supported by increased minutes of use. [2] Value-added services revenue grew 21% quarter-over-quarter and 49% year-over-year. [3] EBITDA increased 19% quarter-over-quarter to R$637 million, with a recovering EBITDA margin of 20.0%, despite partial spillover of trends from the first quarter of 2008.
SpiceJet reported strong financial results for the 1st quarter of FY2011, with net sales growing 34.9% year-over-year to Rs708cr, above expectations. Operating margins expanded significantly to 8.3% due to higher passenger loads. Net profit increased 109.6% to Rs55cr, also above estimates, driven by improved operating efficiency. The analyst maintains an 'Accumulate' rating on SpiceJet, expecting sales and profits to grow rapidly in the coming years as the company expands its fleet and benefits from strong industry demand fundamentals.
ITC posted strong quarterly results with top-line growth of 28% above estimates, driven by growth in cigarettes, agriculture, and non-cigarette FMCG. However, earnings growth was below estimates at 27% due to margin contraction from lower margins in agriculture. Cigarette volumes grew around 8-9% while margins expanded. The analyst maintains an accumulate rating and revises estimates upward to reflect stronger non-cigarette revenue and lower losses, while maintaining cigarette growth outlook.
1) Amazon reported Q3 2011 financial results with net sales up 44% year-over-year to $10.9 billion.
2) However, operating income decreased significantly, down 71% to $79 million compared to the same period last year.
3) Free cash flow also declined 17% year-over-year to $1.5 billion, as the company continues investing heavily in new business opportunities.
Wipro reported financial results for the first quarter of fiscal year 2011, with revenues growing 3.1% over the previous quarter and 12.6% over the same quarter last year. Operating profit margins expanded due to effective currency hedges, and net income grew 9% over the previous quarter and 30.5% over the first quarter of fiscal year 2010. The company's performance was driven by strong volume growth in IT services revenues, with new client additions and large deal wins during the quarter. The analyst maintained an "Accumulate" rating on Wipro stock, with a target price representing 13% upside.
- Revenue for CMC was up 20% year-over-year for the quarter at Rs. 240.84 crore compared to Rs. 201.35 crore in the same quarter last year.
- EBITDA was Rs. 17.14 crore for the quarter, up 103% year-over-year. However, the quarter was impacted by a Rs. 12.58 crore provision for a contract under dispute.
- Profit before tax was Rs. 15.38 crore for the quarter, up 9% year-over-year.
1) Colgate reported a 13.4% year-over-year growth in top-line to Rs. 516 crores, in line with estimates. Volume growth was steady at 11%.
2) Earnings grew 39.6% year-over-year to Rs. 114.4 crores, significantly beating estimates. This was driven by a 638 basis point expansion in operating margins to 24.1% due to higher gross margins.
3) The analyst maintains an 'Accumulate' rating and revised target price of Rs. 752, expecting the company to report a 15.1% CAGR in revenue through FY2012, while margins remain stable.
Marico reported strong revenue growth of 33% year-over-year for the first quarter, driven by double-digit volume growth in its core brands Parachute and Saffola. Parachute saw 10% volume growth and Saffola grew by around 15% despite price hikes by both brands. Operating margins declined slightly due to rising input costs. The analyst maintains a neutral rating on Marico, seeing the stock as fairly valued based on projected growth rates.
Cipla reported subdued fourth quarter results due to lower-than-expected technical know-how fees, which decreased 86% year-over-year. Net sales were in-line at Rs. 1,318 crore, driven by domestic and export formulations. Operating margins declined to 15.2% due to higher employee expenses. For the full year, net sales grew 8% to Rs. 5,358 crore while operating margins expanded to 20.3%. Cipla expects 8-10% revenue growth in fiscal year 2011 and maintained operating margins of 20%, excluding technical fees. The company remains optimistic about contributions from its inhaled products in Europe and potential supply deals with global pharmaceutical companies.
1 Q09 Earnings Eng Final[20090421134102809]Sang Park
The document provides LG Electronics' earnings release for the first quarter of 2009. It summarizes key financial results including:
- Consolidated sales of KRW 15.89 trillion, up 10.7% year-over-year but down 7.5% quarter-over-quarter. The operating profit margin was 0.12%.
- Sales and profit results for each business sector, including home entertainment, mobile communications, home appliances, and air conditioning. Most sectors saw sales growth year-over-year despite the economic recession.
- Parent company sales of KRW 7.07 trillion, up 2.1% year-over-year, with an operating profit of KRW 437 billion,
Infosys reported a 4.3% quarter-over-quarter growth in revenues to Rs. 6,198 crore for the first quarter of fiscal year 2011, backed by a 7.6% growth in volumes. However, earnings before interest and taxes (EBIT) margins fell by 1.8% due to annual wage hikes. Infosys revised its fiscal year 2011 revenue growth guidance upwards from 16-18% to 19-21% in rupee terms and maintained its earnings per share growth guidance of 7.2-11.5%. The growth was broad-based across services and verticals led by the banking, financial services and insurance sector.
Tech Mahindra reported a 4.2% quarter-over-quarter decline in revenue for the first quarter of fiscal year 2011, which was attributed to adverse currency movements and slower client decision making. The company's profitability declined as well, with earnings before interest, taxes, depreciation, and amortization margins contracting 480 basis points and net income declining 36.4% compared to the previous quarter. However, revenue grew 1.9% year-over-year and management expects growth to be led by strong volume increases from large transformational deals in the pipeline. While the outlook remains positive, uncertainties around currency fluctuations and aggressive hiring could pressure margins going forward.
Tech Mahindra Result Update 4qfy2010-040510Angel Broking
Tech Mahindra reported better-than-expected 4QFY2010 results, with revenue growth of -0.3% quarter-over-quarter. Revenue growth in constant currency was 4% supported by strong volume growth from their top account BT. EBITDA margins remained flat at 23.6% despite rupee appreciation and profit after tax grew 31.3% due to lower interest costs and foreign exchange gains. The analyst maintains a Buy recommendation based on expected revenue and profit growth over the next two years.
3i Infotech reported subdued quarterly results with a 1.4% increase in revenue. EBITDA margins declined slightly despite a 10% wage hike. The bottom line declined from the previous quarter due to higher costs and taxes, though it improved year-over-year. The company maintained its full-year revenue guidance, expecting growth of 11-14% driven by a strong order backlog. While initiatives to boost integrated offerings are expected to drive long-term growth, margins may be pressured in the near-term from operational investments. The report maintains a Buy recommendation based on a revised target price implying a 6x forward P/E multiple.
PTC India reported a 5.4% year-over-year increase in top-line for the fourth quarter of fiscal year 2010, however bottom-line declined 10.7% due to a 26.5% reduction in other income and a 39.2% rise in taxes. While sales volumes grew 46.7% year-over-year, average realizations declined 28% due to falling power prices. Operating profit increased 120.1% on a 40 basis point expansion in margins. The analyst maintains a buy recommendation based on an expected positive impact from new trading margin regulations and a fair value estimate of Rs136 per share.
Infotech Enterprises reported modest revenue growth of 2% for the fourth quarter of fiscal year 2010. Net profit increased 35% due to a 130% rise in other income and lower taxes. While revenue from the engineering and manufacturing segment grew 6%, the utilities, telecom, and government segment declined 6%. Looking forward, the company expects strong revenue growth driven by its order pipeline and improving business environment. The analyst maintains a 'Buy' rating with a target price implying 20% upside.
Pratibha ind Result Update 4 qfy2010-110510Angel Broking
Pratibha Industries reported financial results for the fourth quarter of fiscal year 2010 that were in line with expectations. Operating margins improved significantly due to a reduction in raw material costs, boosting the bottom line. However, the company paid taxes at the marginal rate rather than claiming tax benefits. While the results were decent, the analyst maintains a neutral outlook on the stock given that positives are already reflected in the price.
HCL Technologies reported revenue of $803.8 million for the first quarter of fiscal year 2011, up 9% from the previous quarter. Revenue growth was driven by a 7.4% increase in IT services volume and a 1.6% benefit from currency fluctuations. However, earnings before interest and taxes (EBIT) margins declined 242 basis points quarter-over-quarter to 12.9% due to wage inflation, increased hiring, and higher sales and marketing expenses. While margins decreased in the short-term, management expects strong deal pipeline and margin improvement initiatives to drive revenue growth of 27% and EBITDA growth of 17% annually over the next two fiscal years.
MPL Result Update 4qfy2010-030510-finalAngel Broking
Madhucon Projects reported disappointing results for the fourth quarter of fiscal year 2010 that were below expectations. While revenue grew robustly due to higher subcontracting in the power segment, operating margins hit a historical low of 6.4% due to the heavy subcontracting. The analyst maintains a "Buy" rating but lowers the target price to Rs. 190 per share based on revised estimates factoring in lower margins and a higher holding company discount applied to the valuation of Madhucon Infra subsidiary. Near-term revenue visibility comes from existing power segment orders but margins are expected to remain under pressure from ongoing subcontracting.
HCL Technologies reported an 11.4% quarter-over-quarter revenue growth for the fourth quarter of FY2010, driven by a 10% volume growth. However, margins contracted due to lower utilization rates, currency impacts, and higher spending. While revenue grew, net profit declined slightly due to higher foreign exchange losses. Going forward, the company expects salary increases to impact margins in the first quarter of FY2011 but aims to offset this through operational improvements.
The document provides a quarterly report and analysis of Infosys Ltd. for the quarter ending December 31, 2011. Some key highlights include:
- Revenues grew 14.8% quarter-over-quarter and 30.8% year-over-year in Indian Rupee terms, ahead of guidance and expectations. EBITDA margin improved 265 basis points quarter-over-quarter to 33.7%.
- The company added 49 new clients during the quarter, including 6 Fortune 500 companies. Europe showed strong growth of 14% while the US and rest of the world were flat.
- The report maintains a "Buy" recommendation on Infosys with a target price of Rs. 3,142
McNally Bharat Engineering reported strong growth in 4QFY2010, with sales and profit growth of 19% and 142% respectively, ahead of estimates. This was driven by higher EBITDA margins and lower interest costs. For the full year, standalone sales grew 50% and EBITDA margins improved 80 basis points. Going forward, the company is well positioned for robust growth over the next few years due to its large order backlog of 2.6 times FY2010 revenue. The analyst maintains a 'Buy' recommendation with a revised target price of Rs486.
Infosys reported strong revenue growth of 12.1% quarter-over-quarter for 2QFY2011, driven by persistent volume growth of 7.2% and better business mix. Operating margins rebounded to 33.3% from cost efficiencies. The company revised its FY2011 revenue guidance upwards to 24-25% growth and EPS growth to 10.4-12.2% in US dollar terms. Broad-based growth was seen across industries like retail, BFSI, and manufacturing as well as geographies like Europe and the US. Hiring continued to be strong though utilisation improved.
Tata Motors reported strong results for the fourth quarter of fiscal year 2010. Consolidated net sales were up 84.6% year-over-year to Rs. 28,978 crore, driven by higher other income and improved performance at subsidiaries like Jaguar Land Rover. Operating profit was Rs. 3,135 crore compared to an operating loss in the prior year. Net profit increased significantly to Rs. 2,228 crore from Rs. 316 crore in 4QFY2009, benefiting from cost cutting measures and higher other income. The results were above expectations due to the company's aggressive cost reductions and good turnaround at key subsidiaries.
Bharti Airtel reported a 2.4% year-over-year growth in net revenue for 4QFY2010 due to strong growth in its tower business and other businesses, although its mobile business revenue declined slightly. While the company's mobile subscriber base grew 35.9% year-over-year, revenue per user declined significantly due to competitive pressures. Higher selling, general and administrative expenses eroded operating margins, and combined with higher taxes and depreciation expenses, net income declined 8.2% year-over-year despite total minutes of usage growing by 12.8%. Going forward, the company expects continued strong subscriber addition but declining revenue per minute, which will impact profitability.
1) Tata Consultancy Services (TCS) reported strong results for the first quarter of fiscal year 2012, outperforming expectations with revenue growth of 6.3% over the previous quarter and 31.4% over the same quarter of the previous fiscal year.
2) A key highlight was 7.4% quarter-over-quarter growth in business volumes. While profit margins declined due to wage hikes, net profit remained flat due to foreign exchange gains.
3) Management maintained a positive outlook, highlighting strong demand environment and deal pipeline, and expects pricing increases later in the fiscal year.
Reliance Industries reported lower-than-expected earnings for 1QFY2011. While net operating income rose 86.7% year-over-year due to growth in refining revenues, EBITDA was below estimates due to lower petrochemical sales volumes and refining margins. Net profit grew 32.3% year-over-year, meeting estimates. The analyst maintains a 'Buy' rating based on the company's growth outlook and believes it is undervalued relative to its peers.
1) For 1QFY2012, Persistent Systems reported revenues of ₹224 crore, up 5.2% over the previous quarter and 23.6% over the same period last year.
2) EBITDA was ₹40 crore, up 5.3% over the previous quarter but margins declined.
3) PAT was ₹28 crore, down 16.8% over the previous quarter due to higher taxes.
4) Management maintained revenue guidance of 29% growth for FY2012 and expects PAT to remain flat despite higher tax rates.
NIIT reported a 1.9% decline in consolidated net revenues for the fourth quarter of fiscal year 2010 but net income grew 40.2% due to a 400 basis point increase in EBITDA margins. While the company's school learning services and corporate learning services businesses saw revenue declines, its individual learning solutions segment grew revenues by 13.9% driven by growth in the IT and formal training management sectors. Strong margin expansion and improved performance in the individual learning segment helped boost profits despite currency headwinds.
Pantaloon Retail reported a 25.3% year-over-year growth in net sales to Rs. 2,057.6 crore for the third quarter of fiscal year 2010, below expectations of 30.2% growth. Same store sales growth was 13.9% and 13.2% for value and lifestyle retailing respectively. Operating margins remained flat at 10.5% while net profit grew 62.7% to Rs. 55.9 crore due to sales growth and unchanged interest costs. The analyst maintains an accumulate rating and target price of Rs. 469 based on retail space expansion, revival in consumer sentiment, and organizational restructuring.
Orchid Chemicals reported subdued 4QFY2010 results with net sales of Rs285.7cr, up 19.1% but below expectations. The company reported an operating loss of Rs407.2cr due to one-time write-offs of Rs390cr. Excluding write-offs, the operating loss was Rs17.2cr. The company announced a special dividend of Rs10/share. For FY2011, Orchid expects net sales of Rs1,472cr, an 84% increase year-over-year, and operating margins of 20%. However, the brokerage expects lower sales and margins for FY2011 compared to the company's guidance and maintains a Neutral rating on
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Financial Technologies
1. th
6 April, 2009
India
Financial Technologies
CMP: Rs. 665 Target: Rs. 850+
Financial Technologies (India) Ltd, reported 53% rise in stand-alone profit after tax,
excluding project divestment income(PDI), at Rs43.2 crore for Q3FY09 versus 28.3 crore
Sovid Gupta +911243024840 Q3 FY08.
Equity Analyst: Fairwealth Securities Stand-alone operating revenue went up by 58% to Rs62.4 crore in third quarter against
Private. Ltd.
Rs39.4 crore a year ago. Total income, excluding PDI, rose by 69% to Rs105.4 crore in the
quarter, against Rs62.4 crore in the year-ago quarter.
Company’s performance was impressive considering the challenging financial environment
in the Company’s main line of revenue, MCX which is the largest commodity exchange of
India, with over 80% market share.
Priced on April 4, 2009 Outlook:
±% potential 40%+ We believe future profitability of the company could be strained for the next few quarters as
Target set on
th
6 April competition with NSE is getting fierce over pricing. Heavy expansions is also putting short
term pressure on profitability.
However with unique and technology driven business model and its position as a global
leader in creating and operating new generation tech-centric financial markets,we remain
Market Data positive on the long term prospects of FT.
Beta 0.85
12M hi/lo 1945/404 We recommend investors to buy Financial Technologies for a short term target of
850 and long term target of 1400-1500.
Market cap, INR Crores 3119.1
Shares in issue (mn.) Quarterly Result Round up:
Reuters FITE.BO Q3 FY09 Q3 FY08 Y-o-Y Q2 FY09 QoQ(%)
Bloomberg FTECH:IN Growth(%)
Net Sales 62.4 39.4 58.5 119.5 -47.8
Operating Profit 16.7 17.2 -3.1 81.1 -79.4
OPM Margin(%) 30 40 70
Other Income 43.0 679.8 -93.7 4.8 795.8
Share Holding Pattern (%) EBIDTA 59.7 697.0 -91.4 85.9 -30.5
Promoters 45% Interest 0.0 2.8 -99.7 0.0
FII 35% PBDT 59.7 694.2 -91.4 85.9 -30.5
Domestic Inst. & Corp Bod. 4%
Depreciation 1.9 0.6 224.1 1.6 18.8
Public & Others 16%
PBT 57.8 693.6 -91.7 84.2 -31.4
Tax 14.6 156.6 -90.7 7.2 102.8
PAT 43.2 537.0 -92.0 77.1 -44.0
Extra-Ordinary - - -
PAT 43.2 537.0 -92.0 77.1 -44.0
EPS 9.41 117.37 16.79
Source: Company Data, Capital Line
Fairwealth Securities Page 1
2. Buy-Financial Technologies
Q3 Analysis Highlights:
58.5% Y-o-Y growth in Net sales. FTIL to set up multi-asset bourse in Bahrain-Jan-09
Non PDI income has grown to 105 crores BFX (Bahrain Financial Exchange) has been given approval to list and trade cash and
versus 63 crores in the year ago quarter. derivatives instruments on multiple asset classes such as equities, currencies, commodities,
debt products, Islamic Finance instruments and clearing by its brokers.
Operating PAT on standalone basis stood at
43.2 crores versus 28 crores in Q3 FY08.
Company’s Operating Profit margins
have witnessed sharp drop as Expenses FTIL to acquire acquires 60% equity in Bourse Africa-Dec’08
have risen at faster pace.
Botswana-based Bourse Africa Limited has been licensed by government of Botswana, to
Expenditure set-up Spot and Derivative Multi-Asset exchange for trading in commodities, currencies,
bonds and diamonds
Q3FY0 Q3F % Change
9 Y08 Y-o-Y
MCX-India’s leading commodity exchange launched currency derivatives -October
Mat. Cost 5.5 1.9 193.3 2008.
% of Sales 8.8 4.8
Emp.
21.5 11.7 83.4
Company Description:
Expenses
The Financial Technologies group is among the global leaders in offering technology IP
% of Sales 34.4 29.8
(Intellectual Property) and domain expertise to create and trade on next-generation financial
S&A Exp. 6.8 1.1 539.4 markets.
% of Sales 10.9 2.7 The Financial Technologies group operates one of the world’s largest network of 10
exchanges connecting fast-growing economies of Africa, Middle East, India and South East
Other Exp. 12.0 7.4 61.2
Asia. The group also has six ecosystem ventures to address upstream and downstream
% of Sales 19.2 18.9 opportunities around exchanges, including clearing, depository, information vending, and
Source: Capital Line payment gateway among others.
Rising Expenses are putting pressures Company is the only corporate house to have set up 5 international exchange namely :
on the bottom line and EBITDA margins.
Dubai: Dubai Gold and Commodity Exchange(DGCX)
Increased Employee and Sales
Expenses is also seen as preperation for Singapore(Sinfapore Mercentile Exchange(SMX)
Future Growth. Bahrain: Bahrain Commodity Exchnage
Mauritius: GBOT (Global Board f Trade)
Botswana: South Africa Bourse
Company has 3 focussed line of business.
Exchange business
Ecosystem Businesss
Technology Business
While Exchange business is the company’s focussed line of business, Ecosystem and
Technology are the supporting businesses which form upstream and downstream
opportunities and support.
Fairwealth Securities Page 2
3. Buy-Financial Technologies
Group Companies:
MULTI COMMODITIES EXCHANGE OF INDIA:
Largest Commodity exchange in India with:
89% market share in Q3 as against 82% in the corresponding quarter.
Average daily turnover of 13,900 crore for April-Dec 2008.
Latest tradeable product to be launched was Electricity in Jan 2009
Financial Technologies is the main promoters of Financial Technologies with 37% share
holding. Other main promoters of MCX are SBI, Fidlity and Citigroup (Source: Draft Red
Herring Prospectus). At the time deal valued MCX-SX at around USD 1 billion.
MCX-SX
Started currency futures trading in October 2008. Within 2 months of Operation acquires over
50% market share.
DGCX(Dubai Gold and Commodity Exchange)
DGCX commenced trading in November 2005 as the regions first commodity derivatives
exchange and has become today, Middle East's largest and most diverse commodities and
derivatives exchange. DGCX is an initiative of the Dubai Multi Commodities Centre (DMCC),
Financial Technologies (India) Limited and the Multi Commodity Exchange of India Limited
(MCX)
Total of 2.6 million + contracts traded with a value of USD 107 billion+ since inception.
FT group holds 39% shareholding while MCX holds 5% shareholding in the company.
IEX:
India’s No.1 power exchange with a market share of 96%, 55 members and a turnover of
1337 crores.
NSEL
National Spot exchange Limited, established in October’08 with an aim to reach a daily
turnover of 15000 crores by 2011. Currently traded commodities are Bullion and Agri
Commodities
NHBC:
National Bulk handling Corporation is highly ambitious project of FTIL with a purpose to
establish Warehouses (418 ware houses with 1.64 mn.MT of storage Capacity and 9.2 mn.
Sq. Ft. of storage area.)
Company also provide Collateral Management Services to over 3500 storage facilities and
handles over 6mn MT of Commodities and perform Quality Assurance and Pest
Management.
Fairwealth Securities Page 3
4. Buy-Financial Technologies
Atom
Atom is the product from the technology arm providing Mobile payments servces 5 fold
growth in payment processing from 30 crores in March’08 Quarter to over 160 crores in
Dec’08 Quarter.
Tickerplant
Ticker plant is in the business of information retailing by providing data, news, analytics for
Capital Markets. It provides feeds, entire data, Fundamental and Technical Charting for
Forex, Equities and Commodities markets from vatious Exchanges.
Competition:
NSE is leading exchange in India, since its inception in 1994. It is the largest Equities and
FNO exchange in the country with BSE a distant second. Exchange also has its presence in
Commodities, Foreign Exchange and Power Trading.
MCX which is late entrant has with its strong technical and support infrastructure has lately
started giving tough competition to NSE.
NSE, which enjoyed a virtual monopoly in the stock market, had a taste of real competition
when FT launched MCX-SX, a stock exchange, and started currency derivatives trading in
October last year. It’s been a see-saw fight ever since, with daily trading volume data for
February showing MCX-SX’s market share at 50.23 per cent to NSE’s 49.77 per cent.
MCX –SX hasn’t started operations in Cash and Futures segment of Equities as it is awaiting
regulatory approvals.
NSE has started a price war by offering its software NOW free of cost for three years. 80% of
the brokers are already using FT’s ODIN. What many analysts believe is predatory pricing,
NSE has clarified that it does this is inline with its policy.
FT received biggest hit when NSE decided to put FT’s ODIN on watch list on software
defeciency ssues and rejected FT’s application to issue new licenses. FT took NSE to court
for taking such step and now both parties are presenting their case in the court.
There is another majore issue in the currency futures market, NSE has kept zero transaction
fee a practise which has been criticised by MCX-SX as well as industry experts.
NSE can afford to keep zero transaction fees as it earns most of its revenue in the cash and
futures segment of Equities.
Industry experts have called fr a level playing field asking regulators to allow more brokerage
houses in the Equities and Derivatives segment.
Fairwealth Securities Page 4
5. Buy-Financial Technologies
THE BATTLEFIELD
Who operates what
NSE FT/MCX
Technology Now, NSEIT, OM NSESYS ODIN
Stock exchange Equity, F&O and currency Currency
Commodity futures NCDEX MCX
Power trading PXI IEX
Overseas exchange 5 exchanges
Source: Business Standard
While there is much more to the battle between two large exchange in India, Industry has
clearly suggested its need for more transparent and competitive exchanges, moreover
considering demand and need to develop Indian Financial markets Indian markets can clearly
accommodate more exchanges.
Valuations:
We initaiate a buy call on Financial Technologies after analysing and accounting for major
upsides and downsides for the stock. Company is poised to give astounding results in years
to come and we expect them to deliver 40% CAGR in its topline over next 4 years.
Profitability can get get strained in FY 10E if the they enter into a price war with NSE.
Company’s amazing track record and its technical and operational capabilities and unlimited
opportunities in Financial Markets industry in the developong and under developed countries.
We remain positive in the long term and advise investors to invest for longer periods to of
time.
At its current price of 635 stock is fairly valued for high growth company. Company’s total
Income has increased to 484 crores for 9M FY’09 while Net Profits have risen to Rs. 290
crores giving EPS of 63.21 for 9M FY’09. At annualised EPS of around 84 for stock is trading
at 7.5 x times its expected FY’09 earnings. Company has app. 1200 crores of cash and liquid
securities on its balance sheet. Copany has been registering growth of over 100%over last 5
year.
We expert stock to touch 850 – 900 in 4-6 months and to go even higher to touch its lifetime
highs for investors who can hold the stock for a period of two years.
Fairwealth Securities Page 5
6. Buy-Financial Technologies
Buy
Key Risks:
1. With current price war between NSE- MCX-SX and NSE- -MCX, FT might be forced to
lower the fees for its product which can have a huge negative impact on its profitability.
2. Financial Technologies can face major downside if it receives unfavorable response
over its ongoing litigation with NSE, which stops it to issue further licences to brokers for
,
its ODIN product.
3. Any major policy changes which stops FT’s exhanges to expand in Indian markets.
4. Policy changes in spot and futures of major Commodities can also have negative impact
pot
on Financial Technologies.
5. General slowdown in Bullion, Forex and Commodity markets can also lead to lower than
expected growth.
Besides first point we do not see any major risk and other risk mentioned are unlikely to
materialize.
However price war between MCX and NSE is likely which could lead to lower profitability in the
coming quarters.
Financial Technology stock has witnessed more
than 70% drop in share value from Feb’08 to
Feb’09 while Nifty fell by only 40%.
Last 1 month of continuous buying has led to a
huge spurt in Financial Technology share prise
which has risen by more than 50%.
We believe that a lot of steam is left in the stock
and with latest announcements of Bourse Africa
and Bahrain Stock exchange FT stock price will
see further triggers in the share price.
ther
Source: Capital Line
Fairwealth Securities Page 6
7. Buy-Financial Technologies
Investment Rational
Dominance in commodities(85% market share), Power(90% market share ) and Forex
markets with MCX and MCX –SX, FT has huge growth potential as India’s Financial
markets are only in nascent stage
With over 10 exchanges and supplementary businesses like Ecosystem and IT
services FT has established expertise in developin and operating exchanges.
With major presence in India and Dubai, FT is exapanding its presence fast other
emerging economies like Bahrain and Africa(Bourse Africa). We see tremendous
growth in financial markets of these economies and FT is well poised to take
advantage of the boom.
MCX-SX, which already has more than 50% market share in Currency Futures market
has applied to launch cash and futures for Equity markets. When it gets permission for
the same. Given FT’s track record MCX-SX is likely to give huge competition to NSE
and BSE in their biggest revenue contributor.
As a final word, FT’s current cash flow and growth figures do not justify its huge
valuation, but key to FT’s valuation is
Its strong technical capabilities and proven operational track record
Strong growth being wiitnessed and huge growth potential of Indian Financial markets
Need for other Financial markets to develop and establish Exchange traded products
and supporting infrastructure to develop spot market in tandem.
TECHNICAL OUTLOOK FINANTECH
FINANTECH has given a break out above 540 levels and had a good rally above that to post a high of 702.A look at the RSI shows that
the stock is trading in a highly overbought zone .So one can buy the stocks on dips at around 550-600 levels for an upside Target of 850
in 2-3 months.
Fairwealth Securities Page 7
8. Buy-Financial Technologies
Annexure:
1. Income Statement:
Income Statement Fund Flow Statement:
200803 200703 200603
2008(12) 2007(12) 2006 (12) SOURCES OF FUNDS :
Share Capital 9.18 8.82 8.8
INCOME
Reserves Total 1492.05 304.49 299.88
Net Sales 266.9 264.5 182.0
Total Shareholders Funds 1501.23 313.31 308.68
Other Income 1177.5 62.2 19.3 Minority Interest 11.79 108.92 110.9
Total Income 1444.5 326.7 201.2 Secured Loans 24.83 0 0
EXPENDITURE : Unsecured Loans 399.45 434.42 0
Raw Materials 3.0 7.9 0.0 Total Debt 424.28 434.42 0
Employee Cost 94.5 58.8 22.2 Total Liabilities 1937.3 856.65 419.58
Selling and Admin. APPLICATION OF FUNDS :
Expenses 29.3 62.9 38.6 Net Block 50.38 98.85 34.2
Other Expenses 115.8 27.3 16.0 Capital Work in Progress 170.88 88.35 2.02
Total Expenditure 242.6 161.7 79.0 Investments 1184.16 438.66 630.99
Operating Profit 1201.9 165.0 122.2 Current Assets, Loans &
Advances
Interest 12.3 0.9 0.1
Inventories 59.15 1.76 0
Gross Profit 1189.6 164.1 122.1
Sundry Debtors 39.03 26.93 16.13
Depreciation 9.8 8.9 5.6
Cash and Bank 554.34 656.3 105.24
Profit Before Tax 1179.8 155.3 116.5
Loans and Advances 68.32 35.89 25.89
Tax 294.0 50.2 31.6
Total Current Assets 720.84 720.88 147.26
Net Profit 885.8 103.6 83.9
Less : Current Liabilities
EO Items & Min.
and Provisions
Interest 16.3 37.2 31.5
Adj Net profit Current Liabilities 123.13 456.9 361.16
869.5 66.3 52.4
Provisions 69.77 30.55 31.4
EPS after Min. Int 185.57 13.04 14.86
Total Current Liabilities 192.9 487.45 392.56
Book Value 327.07 71.05 70.15
Source: Company Report, Capital Line Net Current Assets 527.94 233.43 -245.3
Net Deferred Tax 3.94 -2.64 -2.33
Total Assets 1937.3 856.65 419.58
Contingent Liabilities 8.57 4.38 2.7
Source: Company Report, Capital Line
2. Cash Flow Statement:
200803 200703 200603 .
Cash Flow Summary
Cash and Cash Equivalents at
Beginning of the year 534.63 73.42 16.36
Net Cash from Operating Activities -296.21 125.89 312.22
Net Cash Used in Investing Activities -230.53 -23.2 -470.21
Net Cash Used in Financing Activities 346.5 358.52 215.05
Net Inc/(Dec) in Cash and Cash
Equivalent -180.24 461.21 57.06
Cash and Cash Equivalents at End of
the year 354.39 534.63 73.42
Source: Company Report, Capital Line
Fairwealth Securities Page 8
9. Buy-Financial Technologies
Coverage:
Our Stock coverage and Returns.
Stock Target Price as on Call date Price on % return absolute % return
2nd Relative
April (Outperfe
romance)
Set Date Price Stock Sensex Stock Stock Sensex
Educomp 22-Jan-09 2750 1715 8814 2398 39.8% 19.5% 20.3%
Havells 30-Jan-09 280 115 8325 153.1 33.1% 26.5% 6.6%
Jaiprakash 12-Feb-09 110 73 9466 97.55 33.6% 11.3% 22.3%
Associates
Lupin 3-Feb-09 780 630 8607 640 1.6% 22.4% -20.8%
Tata Steel 6-Mar-09 250 152 8325 235.65 55.0% 26.5% 28.5%
M&M 12-Mar-09 430 345 8344 459.7 33.2% 26.2% 7.0%
Unitech 25-Mar-09 51 34 9667 36.75 8.1% 9.0% -0.9%
Punj Lloyd 30-Mar-09 120/145 85 9549 106.7 25.5% 10.3% 15.2%
Note: Based on 6th April Sensex closing of 10535
Note: All calls are initial/ first time calls
Note: All reports can be accesed
Fundamental and Technical reports are independently given and investors are advised to take their decision based on their investment
profile and holding periods
Disclaimer
This publication has been prepared solely for information purpose and does not constitute a solicitation to any person to buy or sell a security. While
the information contained therein has been obtained from sources believed to be reliable; investors are advised to satisfy themselves before making
any investments. Fairwealth Securities Pvt Ltd does not bear any responsibility for the authentication of the information contained in
the reports and consequently, is not liable for any decisions taken based on the same. Further, Fairwealth Research Reports only provide information
updates and analysis. All opinion for buying and selling are available to investors when they are registered clients of Fairwealth Investment Advisory
Services. As a matter of practice, Fairwealth refrains from publishing any individual names with its reports. As per SEBI requirements it is stated that,
Fairwealth Sec Pvt Ltd., and/or individuals thereof may have positions in securities referred herein and may make purchases or sale while this report is
in circulation.
Fairwealth Securities Page 9