Sie sind auf Seite 1von 3

Company Report | Q4FY11 Result Update

LONG TERM INVESTMENT CALL

11 June 2011 Building Products 169 180 7% 184 / 82 11,294 0.15 mn 11

Hold

Industry CMP (INR) Target (INR) Upside / Downside (%) 52 week High/Low (INR) Market Cap (INR mn) 3M Avg. Daily Volumes P/E (FY12 E) Shareholding Pattern (%)

Q4FY11 Result Highlights


HSIL Ltd. (HSIL) reported revenue of INR 3,270.6 mn for this quarter. This was below Unicon estimates. On a YoY and a QoQ basis, total income from operations has increased 26.7% and 18.1% respectively. This growth was driven by 22% growth in the Building Products segment and ~28% in the Container Glass segment.

EBITDA for this quarter stood at INR 656.4 mn. While EBITDA was up a whopping 28.4% on a YoY basis, it was marginally up by 5.2% on a QoQ basis. EBITDA was above Unicon estimates. EBITDA margin shrank to 22.2%, a 240 bps fall on a sequential basis. On an annual basis, EBITDA margin has improved by 46 bps. The improvement is on the back of improved product mix and better pricing power.

Stock Performance Net Income clocked a growth of 4.6% on a YoY basis and 17.2% on a QoQ basis at INR 323.1 mn. PAT is in line with Unicon estimates. Higher other income and lower interest aided the growth in bottom-line for HSIL.

HSIL is planning to increase its capacity in the sanitaryware segment by investing around INR 6.5 bn over the next two three years. It is planning to set up a new facility to produce 1.2 mn pieces while Performance (%) 1 Month 4.2 -1.4 3 Months 28.4 0.7 1 Year 89.7 7.2
(INR in mn)

expanding its existing facilities capacity by 1 mn.

Outlook & Valuation


HSIL is well placed to benefit from timely expansion to capture growth opportunities in both its segments. Margins are expected to expand on improving realisations, savings on fuel cost front and higher capacity utilization levels. At CMP, the stock is trading at a PE multiple of ~11x its FY12E earnings. Given the strong brand recall & wide distribution network, capex lined up, diversified revenue base, we recommend a HOLD on this stock with a price target of INR 180.

HSIL NIFTY

Particulars Total Income EBIDTA Reported PAT

Actual 3,270.6 656.4 323.1

Estimates 3427.7 614.9 313.4

* Source: Bloomberg, Unicon Research

Wealth Research, Unicon Financial Intermediaries. Pvt Ltd. Email: wealthresearch@unicon.in

Financials Summary
(INR in mn)

Q4 FY11 Net Revenue Other Operating income Total Income Operating Exp. EBITDA EBITDA (%) Depreciation Other income EBIT EBIT (%) Financial charges Exceptional Items PBT Tax Provision Tax Rate (%) PAT PAT Margins (%) EPS
Source: Company, Unicon Research

Q4 FY10 2,580.9 63.6 2,644.5 2,133.3 511.2 19.3 127.8 2.8 386.2 14.6 97.6 0.0 288.6 -20.4 -7.1 309.0 11.7 5.6

Y-o-Y 26.7 -27.4 25.4 24.7 28.4 46 bps 4.5 814.3 42.0 193 bps -16.7 61.9 NA 3791 bps 4.6 -201 bps -12.9

Q3 FY11 2,768.8 43.6 2,812.4 2,188.2 624.2 22.2 138.8 4.6 490.0 17.4 82.6 0.0 407.4 131.6 32.3 275.8 9.8 4.2

Q-o-Q 18.1 -162.7 17.9 21.6 5.2 -240 bps -3.8 456.5 11.9 -89 bps -1.6 14.7 -146 bps 17.2 -12 bps 17.2

FY11 10,353.3 168.9 10,522.2 8,392.3 2,129.9 20.2 535.0 36.0 1,630.9 15.5 356.3 0.0 1,274.6 401.1 31.5 873.5 8.3 13.2

FY10 7,887.4 123.2 8,010.6 6,478.4 1,532.2 19.1 490.4 15.9 1,057.7 13.2 400.9 0.0 656.8 132.5 20.2 524.3 6.5 9.5

Y-o-Y 31.3 37.1 31.4 29.5 39.0 111 bps 9.1 126.4 54.2 230 bps -11.1 94.1 202.7 1130 bps 66.6 174 bps 38.9

3,270.6 46.2 3,316.8 2,660.4 656.4 19.8 133.5 25.6 548.5 16.5 81.3 0.0 467.2 144.1 30.8 323.1 9.7 4.9

Wealth Research, Unicon Financial Intermediaries. Pvt Ltd. Email: wealthresearch@unicon.in

Unicon Investment Ranking Methodology


Rating Return Range Buy >= 20% Accumulate 10% to 20% Hold -10% to 10% Reduce -10% to -20% Sell <= -20%

Disclaimer
This document has been issued by Unicon Financial Intermediaries Pvt. Ltd. (UNICON) for the information of its customers only. UNICON is governed by the Securities and Exchange Board of India. This document is not for public distribution and has been furnished to you solely for your information and must not be reproduced or redistributed to any other person. Persons into whose possession this document may come are required to observe these restrictions. The information and opinions contained herein have been compiled or arrived at based upon information obtained in good faith from public sources believed to be reliable. Such information has not been independently verified and no guarantee, representation or warranty, express or implied is made as to its accuracy, completeness or correctness. All such information and opinions are subject to change without notice. This document has been produced independently of any company or companies mentioned herein, and forward looking statements; opinions and expectations contained herein are subject to change without notice. This document is for information purposes only and is provided on an as is basis. Descriptions of any company or companies or their securities mentioned herein are not intended to be complete and this document is not, and should not be construed as an offer, or solicitation of an offer, to buy or sell or subscribe to any securities or other financial instruments. We are not soliciting any action based on this document. UNICON, its associate and group companies its directors or employees do not take any responsibility, financial or otherwise, of the losses or the damages sustained due to the investments made or any action taken on basis of this document, including but not restricted to, fluctuation in the prices of the shares and bonds, reduction in the dividend or income, etc. This document is not directed to or intended for display, downloading, printing, reproducing or for distribution to or use by any person or entity who is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, publication, reproduction, availability or use would be contrary to law or regulation or would subject UNICON or its associates or group companies to any registration or licensing requirement within such jurisdiction. If this document is inadvertently sent or has reached any individual in such country, the same may be ignored and brought to the attention of the sender. This document may not be reproduced, distributed or published for any purpose without prior written approval of UNICON. This document is for the general information and does not take into account the particular investment objectives, financial situation or needs of any individual customer, and it does not constitute a personalised recommendation of any particular security or investment strategy. Before acting on any advice or recommendation in this document, a customer should consider whether it is suitable given the customers particular circumstances and, if necessary, seek professional advice. Certain transactions, including those involving futures, options, and high yield securities, give rise to substantial risk and are not suitable for all investors. UNICON, its associates or group companies do not represent or endorse the accuracy or reliability of any of the information or content of the document and reliance upon it is at your own risk. UNICON, its associates or group companies, expressly disclaims any and all warranties, express or implied, including without limitation warranties of merchantability and fitness for a particular purpose with respect to the document and any information in it. UNICON, its associates or group companies, shall not be liable for any direct, indirect, incidental, punitive or consequential damages of any kind with respect to the document. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, on any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of Unicon Financial Intermediaries Pvt. Ltd.

Address: Wealth Management Unicon Financial Intermediaries. Pvt. Ltd. Vilco Centre, 2nd Floor, Subhash Road, Mumbai 400054
Ph: 022 3390 1559 Email: wealthresearch@unicon.in Visit us at www.unicon.in

Wealth Research, Unicon Financial Intermediaries. Pvt Ltd. Email: wealthresearch@unicon.in