For 3Q FY 2012, TSIL’s (Tata Sponge Iron Ltd’s) reported a 23.3% y o y decline in its revenue to Rs.131 cr, as compared to Rs.170 cr in 2QFY2011.
The company’s EBITDA margin came in at 18.8%, lower by 167bp y o y, from 20.5% in 3Q FY 2011 due to in creased employee expenses as a percentage of net sales from 2.9% in 3Q FY 2011 to 4%
in 3Q FY 2012.
Profit for the quarter stood at Rs.17 cr as compared to Rs.22 cr in
3Q FY 2011. We expect ramp up in sponge iron volume sales in FY 2013E, which
would lead to improvement in the top line.
Hence, we maintain our Buy recommendation on the stock with a target price of Rs.382, based on a target P/B
of 0.9x for FY2013E.
Review by Angel Broking
6th Floor, Ackruti Star, Central Road,MIDC
Andheri (E) , Mumbai-93
Main : (91-22) 3935 7600 Extn : 6956
Website : www.angelbroking.com
The company’s EBITDA margin came in at 18.8%, lower by 167bp y o y, from 20.5% in 3Q FY 2011 due to in creased employee expenses as a percentage of net sales from 2.9% in 3Q FY 2011 to 4%
in 3Q FY 2012.
Profit for the quarter stood at Rs.17 cr as compared to Rs.22 cr in
3Q FY 2011. We expect ramp up in sponge iron volume sales in FY 2013E, which
would lead to improvement in the top line.
Hence, we maintain our Buy recommendation on the stock with a target price of Rs.382, based on a target P/B
of 0.9x for FY2013E.
Review by Angel Broking
6th Floor, Ackruti Star, Central Road,MIDC
Andheri (E) , Mumbai-93
Main : (91-22) 3935 7600 Extn : 6956
Website : www.angelbroking.com
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