CCCL (Consolidated Construction Consortium Ltd.) posted a dismal set of
numbers once again for 2Q FY 2012. The company’s top line grew by 9.5% yoy to
Rs.535.8 cr (Rs.489.5 cr), above our estimate of Rs.465.0 cr.
However, a major disappointment came on the margin front, as CCCL posted abysmal EBITDA
margin of 1.4% (7.8%), reporting a drop of 6.40% yoy, against our expectation of
5.2%.
On a sequential basis as well, the CCCL’s margin witnessed a decline of
3.4%. The decline in margin can mainly be attributed to commodity price
pressures, along with increased employee cost and labor cost.
Further, on the bottom-line front, the company posted loss of Rs.18.7 cr vs. profit of Rs.13.7 cr in
2 QFY 2011 and against our expectation of Rs.1.4 cr profit, mainly on account of
lower margin and higher interest cost (Rs.17.2 cr, a jump of 42 %/11.3% yoy/qoq).
CCCL reported an order inflow of Rs.321 cr during the quarter, taking its outstanding order book to Rs.5,936 cr. The company has been disappointing on the earnings front and posting erratic margins since the last few quarters.
Maintain Neutral view on the stock.
Review by Angle Broking
numbers once again for 2Q FY 2012. The company’s top line grew by 9.5% yoy to
Rs.535.8 cr (Rs.489.5 cr), above our estimate of Rs.465.0 cr.
However, a major disappointment came on the margin front, as CCCL posted abysmal EBITDA
margin of 1.4% (7.8%), reporting a drop of 6.40% yoy, against our expectation of
5.2%.
On a sequential basis as well, the CCCL’s margin witnessed a decline of
3.4%. The decline in margin can mainly be attributed to commodity price
pressures, along with increased employee cost and labor cost.
Further, on the bottom-line front, the company posted loss of Rs.18.7 cr vs. profit of Rs.13.7 cr in
2 QFY 2011 and against our expectation of Rs.1.4 cr profit, mainly on account of
lower margin and higher interest cost (Rs.17.2 cr, a jump of 42 %/11.3% yoy/qoq).
CCCL reported an order inflow of Rs.321 cr during the quarter, taking its outstanding order book to Rs.5,936 cr. The company has been disappointing on the earnings front and posting erratic margins since the last few quarters.
Maintain Neutral view on the stock.
Review by Angle Broking
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