Q4FY11 Result Highlights for Jain Irrigation Systems:: Unicon

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Q4FY11 Result Highlights
Jain Irrigation Systems (JISL) posted strong numbers in Q4 FY11. Total
revenue grew by 27% YoY to ~INR 12bn.
MIS segment registered a revenue growth of 36% YoY driven by
23% growth in volume. Growth in the MIS (Micro irrigation
systems) business was driven by 1157% growth in Rajasthan, 175%
growth in Karnataka, 130% growth in MP and 109% growth in
Punjab.
PVC and PE pipes segments also showed strong growth of 20%
and 18% respectively. Growth in PVC and PE pipe segments was
led by 20% & 36% YOY rise in volumes.
PVC sheets showed a decline of 9% in revenues due to 10% drop in
volume. Agro products segment grew by 15% YoY due to better
product mix.
JISL’s EBITDA increased by 9.9% YoY to INR 2,605mn while EBITDA
margin dropped by 365bps to 21.1% in the quarter. MIS segment
posted an EBITDA margin of 32% while other segments PVC pipes, PE
pipes and PVC sheets showed margin reduction of 60bp, 410bp and
620bp respectively. Agro products segment posted a steady margin of
11%, down 300bp YoY in Q4 FY11.
Net Profit shrunk by 2.4% YoY to INR 1,146mn along with net profit
margin which dropped from 11.8% to 8.9% in the quarter. Interest cost
for the company rose by 39% to INR 698mn.
Outlook & Valuation
JISL holds 55% market share in domestic MIS business. This segment is
expected to post 20-25% YoY growth till FY13E. Increased govt focus
towards food security (via farm yield) would continue to stimulate the
demand in coming years.
MIS segment has boundless opportunity with only 50% of India’s
arable land under irrigation facilities. Demand in PVC pipes is
expected to pick-up with evolving applications of these products.
At CMP of INR 178, stock is trading at 16.2x its FY12E earnings. We
recommend ACCUMULATE with a price target of INR 207.

Indian Telecom Sector -Seasonal weakness in April net adds — not worrying:: Credit Suisse

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Indian Telecom Sector ----------------------------------------------------------------------------------------
Seasonal weakness in April net adds — not worrying


● The April 2011 net adds data for GSM operators showed a decline
from the previous month (11.1 mn versus 14.5 mn). GSM
subscriber base has now grown to 581 mn (+39% YoY).
● We believe the weakness in net adds is linked to seasonality, and
thus do not see this as a negative data point. April is usually a
weak month for net adds after a strong March, this being likely
linked to year closure in March.
● While seasonality was always prominent in the case of BSNL/
MTNL, in recent years it is also becoming noticeable in the case
of private operators. BSNL/ MTNL, Vodafone, Bharti saw higher
drop-off in net adds while Idea saw a smaller decline. Idea
continues to gain subscriber market share (albeit slowly) at the
expense of BSNL/ MTNL.
● We expect the competitive environment to remain benign with
stable pricing. This should enable incumbents to consolidate their
revenue market share and grow margins. We retain our
OUTPERFORM ratings on Bharti and Idea.

JPMorgan:: DB Corp Q4FY11: Solid ad growth, but newsprint prices a concern

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DB Corp Ltd.
Overweight
DBCL.BO, DBCL IN
Q4FY11: Solid ad growth, but newsprint prices a
concern


DBCL reported Q4 profit growth of 23% YoY, driven by strong growth in
advertising revenues (up 31% YoY). Q4 EBITDA margins were down 180bps
YoY on account of higher newsprint costs and new launches. Management
have guided at higher newsprint costs going forward, we pare our FY12E/13E
EPS estimates by 3%/6%. Remain OW with TP of Rs290.
• Robust ad revenue growth: FY11 advertising revenues were up 24% YoY
driven by volumes and yield improvement in equal measure. Management
guided to similar growth driven mostly by yield improvements in FY12.
DBCL have raised ad rates from April, which would improve yields 12%-
14% going forward
• Newsprint costs pressure to continue: DBCL saw newsprint prices rising
8% YoY in FY11. Management guided to 12%-14% further increase in
newsprint prices for FY12. We expect total newsprint costs to increase 21%
YoY in FY12 on back of higher prices as well as increased circulation from
new edition launches. As a result, we cut our FY12/FY13 EPS estimates by
3%/6%. We roll forward our TP to Mar-12(from Sep-11), to Rs290 based
on 18x FY13E P/E, in-line with its historic trading average.
• Roll out in Maharashtra imminent: Management indicated that Jharkhand
editions are performing in-line with modest contribution to FY11 ad
revenues. DBCL is set to launch its Marathi daily from Aurangabad from
May 29 and management noted that intial response to subscriptions has
been promising. DBCL further plans to launch a Nashik Marathi edition
soon after Auraganbad launch. DBCL indicated that they might delay the
launch in Bihar to end FY12 (from Oct-Nov 11) to focus on Maharashtra.
• FY11 results highlights: FY11 revenues increased 19% YoY driven by ad
revenue growth (+24% YoY). EBITDA margins moderated 40bps YoY to
32.2% with mature editions’ margins at 36.5%. Net profit increased 41%
YoY.
• Risks: Key risks include rising competitive intensity, failure to scale up in
new markets, significant increase in newsprint costs and slowdown in
economic growth.

Voltas – 4QFY11 earnings disappointing ::RBS

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4Q11 adjusted PAT were below estimates at Rs806mn, while sales was in line at Rs16.8bn. The
core projects business has been lacklustre due to execution delays and legacy orders of Rohini
Electricals. While the order book has grown 3.6% sequentially, macro environment remains
challenging. We have a Sell rating.

Attractive Company FDs

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Attractive FD schemes from popular Companies to suit Investors looking for safety with decent return.

 

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