Repro india limited


(Hitesh Patel) #1

REPRO INDIA LIMITED. Cmp 123.

The company is into integrated print solutions business.

They are into printing for various groups of clients

EDUCATIONAL BOOKSâclients include Paragon, Playmore, Igloo, Modern

CATALOGUES & MAGAZINES: clients include New Woman, Cine Blitz, Hi Blitz, Business Barons, Gladrags, OK India

ANNUAL REPORTSâfor Tata Steel, HUL, DLF, Infosys, Wipro, Vedanta,Rolta,Patni etc

Other clients for various purposes include Microsoft, IBM, Alligator Books,Orient Longman,Oxford University i Press etc.

The company expanded its capacities to meet an increasing demand by adding on machines, IT systems and high-end workflows.

This is in addition to the setting up of a facility in the SEZ at Surat â which is now operational.

THE COMPANY IS INTO PRINT ON DEMAND SOLUTIONS.(POD)

FACILITIES located at Mumbai, Equipped with state-of the-art web, sheet-fed and Print-on-Demand presses and

SURAT facility has a combination of web presses, sheet-fed presses with complementary CTP and binding lines â Also has a battery of inline hologram, label pasting and shrink-wrapping machines

â Has the capacity to produce 100 million books per annum

â Can despatch upto 50 containers per month

FUNDAMENTALS

Shareholding pattern: Promoters hold around 68% with no pledging.

YEAR

05

06

07

08

09

10

Q1fy11

SALES

83

111

129

150

238

201

59

NP

4.5

8.7

9.5

15.5

16.5

17.55

2.93

Eps

5.67

8

9

14.8

15.7

16.7

Dividend

1.5

2

2

2.5

3

RONW

14

11

11

16

15

loan

40

30

43

41

106

135

EQUITY IS 10.52 CRORES AND AT AROUND CMP OF 123, MARKET CAP CLOSE TO 131 CRORES

This company has finished its expansions and now needs to deliver in terms of earnings performance. Since there are no comparable peers, if it does give good results going forward, it can easily catch market fancy and get rerated. All in all, this looks like a moderate risk high return kind of company.

POSITIVES;

Long standing relationships with clients. The knowledge of their clients helps them to conceptualize and convey the contents which the clients want from them

Good R&D team and POD concepts would provide them edge.

They provide concept, and print solutions at same place. The content process outsourcing seems to have good potential going forward.

Reasonably attractive valuations of around 8.3

NEGATIVES;

Volatility in raw material prices like paper could dampen prospects

Since exports contribute major chunk of business, currency risk exists.

Ipo of the company was in Nov 05 and it was priced at 165.


Technically the stock has broken out of a long consolidation pattern above 118 with good volumes.


.


(Donald Francis) #2

Found a somewhat dated January 27, 2010 Conference call Transcript. Still is useful to understand a few things about the company.

Transcript - Conference Call of Repro India Limited

Transcript

Conference Call of Repro India Limited

Event Date / Time : 27th January 2010, 4 PM IST

Event Duration : 12 min 55 sec

Presentation Session

Moderator: Good evening ladies and gentlemen. I am Imran,moderator for this conference. Welcome to the conferencecall of Repro India Limited. We have with us today, Mr.Mukesh Dhruve, Executive Director Repro India Limited.

At this moment all participants are in listen only mode.Later, we will conduct a question and answer session, atthat time if you have a question, please press * and 1 on your telephone key pad. Please note this conference isrecorded. I would now like to hand over the conference to Mr. Mukesh Dhruve, please go ahead sir.

Mukesh Dhruve: Good evening ladies and gentlemen. Welcome to all of you and a belated Happy Republic Day to all of you. Goodto get all of you back after a quarter. As you all know Repro India is in a very exciting business of educationbooks and exporting of education and childrenâs books globally, which includes UK, Europe, US, about 22 countries in Africa and some even Far East, Middle East as well as going down as far as Australia. The Indian business, of course is focused as you know on annual reports as well as the education and the corporate. This has been, I would say the turning quarter, where Repro has achieved the highest profits for the quarter in its history. As you all know we listed about 16 quarters back.

And all the 16 quarters, Repro has been showing a profit quarter on quarter. But, the last quarter we can see, is theturning quarter for Repro, where it has recorded the highest profits post listing in the quarter. Though the saleshave gone slightly down as the company decided not to do certain sales, which were not profitable. So, itâs a conscious call by the company to reduce some of the sales, which were not profitable, but focus on the high profit margin jobs. It has been the highest PAT, highest operating margin for the quarter and this has been partly because of the performance of our Surat plant, which is doing exceeding well. As you all know, we invested just about 36 crores in that plant. And on that we areexpecting annual turnover of 120 crores. Surat has now a capacity of 35 tonnes per day and produces almost abouttwo containers everyday. The sales to turnover ratio is extremely good there at one employee a crore. There hasbeen a lot of reduction in the overall operating expenditure as well as the outsourcing cost. The raw material cost alsohas gone down. So this I can say is the turning quarter for Repro India Limited, and we can see very clearly, that thisis something which we will be able to sustain in the coming quarters. Itâs been an exciting quarter and an exciting yearand we think 2010 is going to bring in great and big opportunities for Repro India Limited. Thank you onceagain for participating and I welcome any questions from all of you.

Question and Answer Session

Moderator: Thank you sir. Ladies and gentlemen, we will now begin the question and answer session. If you have a question,

please press * and 1 on your telephone key pad and wait for your turn to ask the question. If your question has beenanswered before your turn, and you wish to withdraw your request, you may do so by pressing # key.

Our first question comes from Mr. Lokesh of Citibank.

Lokesh: Yeah Mr. Mukesh.

Mukesh Dhruve: Yes Lokesh.

Lokesh: Hi sir. Sir, I just wanted to know about your future plans? Are you planning for any further expansion or you want to continue with this setup flow?

Mukesh Dhruve: We are planning for expansions and there are two routes. One is of course as you know, you have got enough loans and it is available for expansion, it will be the normal operating growth. We are doing the organic process also.

At the same time, we are also looking at inorganic growth, whether it is acquisitions, mergers where ever we get theopportunities. We are looking at both the options.

Lokesh: Okay sir. Thank you.

Mukesh Dhruve: Okay.

Moderator: Thank you sir. Dear participants, if you have any questions, please press * and 1 on your telephone keypad.

Our next question comes from Mr. Sunil Kothari of Unique Investments & Consultancy.

Sunil Kothari: Yeah, good afternoon Mukesh.

Mukesh Dhruve: Good afternoon Mr. Kothari.

Sunil Kothari: Congratulations.

Mukesh Dhruve: Thank you.

Sunil Kothari: Yeah, sir about the broad guidance, in the starting of the year, you have given about some may be marginal growth. So should we now revise it to may be little bit lower than last yearâs size or how you see remaining and next yearonwards?

Mukesh Dhruve: Definitely as I mentioned in the beginning of the concall, we may be little less than the last year, because the quarter 1 and quarter 2 has been a tough quarter. But quarter 3 is the one where we are sensing a change. Andmore than, I think more than the top line, our focus has been the bottom line. As compared to last year our

operating margins will be, as I recall, better than what we did last year, though the turnover might be little down. Thefocus is on the bottom line and that is where I think a lot of improvement is happening. You can see thatâs from thisquarter.

Sunil Kothari: Right. So sir, what numbers should we expect for this year?

Mukesh Dhruve: I would say anything between 200 to 225. I know, this quarter has just started, it is going on. So, anythingbetween 200 to 225 is what we are looking at, at a broader level.

Sunil Kothari: Right. Next year can we expect major growth? We were expecting this current year, but maybe because of thisexchange factor, it has gone may be a little bit back.

Mukesh Dhruve: Yes. As I was saying, we are expecting next year in the range of 30 to 35% growth levels.

Sunil Kothari: Right, right. What should be the benchmark in our operating margins, this quarter should be taken as a realmargin or because the FOREX loss is now almost going out?

Mukesh Dhruve: Thatâs correct. I think, the current quarter, you can take it as a benchmark definitely.

Sunil Kothari: Okay, okay. And sir this doubtful debts provision which we have done, that is related to which country or which customer, if you can?

Mukesh Dhruve: It is not related to a country specific, it is related to the total debtors. As we have said in quarter 1 and quarter 2, we have put in a debtors policy into place. Based on the number of days and the period of the debtor, we expect

that whether they are going to come or not, we make a provision. Itâs more of what you see a conservative accounting policy, moment as per the policy, whatever is getting older, we just make a provision, and like we have not written it off , we have just made a provision.

Sunil Kothari: There is no risk you find?

Mukesh Dhruve: Yes.

Sunil Kothari: What should be now, your policy towards the external interests is witnessed, are we now getting good orders and comments? Or, if yes, because it was funded by some external agencies, so there was a little bit slowdown, you

feel that original momentum has come back or it will take a little bit longer?

Mukesh Dhruve: Yes, two things. One was, a lot of this project, education projects world over are financed by the World Bank, the UNICEF and an agency called CIDA, which is the Canadian International Development Agency. These funds which were supposed to come in the Q1 have started actually, we can see, have started flowing in from Q3. Last quarter was when a lot of funds have started coming in and those businesses which we have tied up but the funding were not tied up, we could not do those, but in quarter 3, we could start executing those contracts. So,the funds have just started coming back and like at current, there are nothing less than about 14 to 15 projects which are being funded by this, this associations of World Bankand UNICEF and others. So, we can see a lot of funds coming back into the education segment and that is what will lead to growth in this segment.

Sunil Kothari: So, hopefully next year, we should not see any challenge from this side?

Mukesh Dhruve: I donât think so. I donât think so. But what we have seen in Q3, we should not be seeing any challenge from this side.

Sunil Kothari: Right, right. And regarding this rate of dollar, 45 or 46 whatever rupee - dollar parity. You feel at this rate, this type of margins can be maintained or it will deviate depending on rupees appreciation or depreciation?

Mukesh Dhruve: I donât think, our margins are determined by the appreciation or depreciation of dollar. The simple reasonis that, what we are following is that as I mentioned last time, a very conservative hedging policy. Hence, if we signup a business today, whatever is the dollar rate, and we know that when this money is going to come in, so we willtry to do a simple forward cover for this currency what we are standing at today. Suppose, if today the dollar is atabout 46.70, or if it is 50, if it is 46.50, we have done business at 46.50 and we know that the money are goingto come say in Q1 or Q4, in Q1, then we will tie up a simple forward cover for Q1. When we give the money, wehave done business at 46.50, we will get 46.50. Dollar can be 44, dollar can be 48, it doesnât make a difference to us.

Sunil Kothari: So, hopefully this, last year 17 crore loss on exchange,these are the things of the past, we should not worry about this now?

Mukesh Dhruve: Absolutely, we should not be worrying about this now.

Sunil Kothari: Thank you. Wish you good luck.

Mukesh Dhruve: Thank you.

Moderator: Thank you sir. The next question comes from Mr. Saket Narang of Samara Capital.

Saket Narang: Hello.

Mukesh Dhruve: Yeah, good afternoon.

Saket Narang: If you could give us the breakup between domestic and export sales of?

Mukesh Dhruve: Yes, it is 66% is the exports and 34% was the domestic for the last quarter.

Saket Narang: And in your P&L, the interest cost has been coming down. So if you can also give us, what is the debt on the balance sheet and also what is the debtor days.

Mukesh Dhruve: Yes. As you can see that the sundry debtor has come down from 141 days to 116 days. The prime reason isrenegotiating the terms with our existing customers, where you try to grow. You know normally in the publishingworld, the credit period is anything between 120 to 150 to 170 to 180 days. We are trying to bring it down to closer to100 or below 100 days. That has been a discipline which we have followed in the last two quarters, as a result ofwhich a lot of collections has happened. Lot of our working capital limits which are sanctioned, we are utilizingless. The total working capital limits which are available to us is almost in the range of 75 crores. And the long termdebts on ECB were 36 crores. And recently, we have just tied up another 4 million dollars for expansion on our digitaland other areas. So, the total outstanding debts, short term and long term together would be roughly in the rangeof about 60 crores.

Saket Narang: Okay. That would be all.

Mukesh Dhruve: Yeah, okay.

Moderator: Thank you sir. Dear participants, if you have any questions, please press * and 1 on your telephone keypad.Mr. Mukesh, there are no further questions, now I handover the floor to Mr. Mukesh for closing comments.

Mukesh Dhruve: Okay, fine. Ladies and gentlemen, thank you once again for joining us. And as I can tell you this is an exciting year that we can see in our growth and our plans. Both the plants, Surat as well as Mahape has been doing extremelywell. We are looking at new investments, new mergersacquisitions as I said. And it is going to be an excitingyear. We see 2010, as a great year for Repro India Limited going forward. And youâll hear a lot from us in thecoming months and coming quarters. Thank you so much for coming and participating.

Moderator: Thank you sir. Ladies and gentlemen, this concludes your conference for today. Thank you for your participation and for using Door Sabhaâs conference call service. You may disconnect your lines now. Thank you and have apleasant day.


(Arindam) #3

For me the takeaways:

1). Surat SEZ may be a key growth driver - This caters to the Educational Books printing segment which is the mainstay of Repros business. Capacity is now doubled to 200 million books from earlier 100? Built at a capex of 36 Cr, expected to deliver 120 Crs annually to Sales

2). Forex risks - Exports at 66%; there was a loss of 17Cr in Forex in FY09. Company now hedges by taking forward cover to protect margins.

3). High Working Capital - Debtor days are still at 120 days plus

Its done some 60cr in Sales 1QFY11. So there may easily be a 30-40% growth in FY11. However this so far has been a low RoCE business. FY10 RoCE has dropped below 10!


(Hitesh Patel) #4

Thanks donald for the update.

Having read thru the concall transcript, it seems the repro guy is very excited by the quarterly numbers.

I like their attitude of paying attention to profitability and reducing debtor days.

regards


(Donald Francis) #5

Excerpts from a 2009 ICRA report on the company

Credit Strengths

  • Proactive marketing strategy helped establish stable, long-term relationships with a strong and diverse group of clients including leading publishers and corporates
  • Has the one star export house status; recognized as one of the largest exporter of education books from India
  • Integrated printing solutions company, providing end-to-end services; distinctive value-addition to customers as a one-stop shop
  • New unit at Surat a SEZ would help meet strong demand requirements and enhance the competitive advantage of the company in the exports market
  • Compliant with Global Manufacturing Principles (GMP), Ethical Trading Initiatives (ETI) and Suppliers Ethical Database Exchange (SEDEX) requirements; ERP implementation ensures efficiency in order processing and better inventory handling

Credit Concerns

  • Rapid growth phase coupled with high working capital intensity resulting from high debtor levels
  • Competition from unorganized sector, other players in the organized sector and other Asian countries like Malaysia, Mauritius and Singapore
  • Exposed to foreign exchange fluctuation risks; rupee appreciation could hit the competitiveness of the company in export markets; net profitability depressed by forex notional loss in 9m, 2008-09

Company Profile

Repro India Limited (RIL) was incorporated on April 1, 1993. The company was closely held until 2005. The company went for an IPO (Initial Public Offering) in November 2005; 25% of its shares was offered to the public. RIL is an integrated print based house and a provider of value-added printing solutions. The company has an ISO certified, 150,000 sq. ft. production facility in Mahape (Navi Mumbai) and has recently commercialised (January 2009) another 1, 00,000 sq. feet printing unit in a SEZ (Special Economic Zone) at Sachin (near Surat in Gujarat). The unit is aimed at exports and would give RIL the benefit of zero income tax for the first five years and 50% income tax rebate for the next five years. Also, as the unit is just about 250 km from the Mumbai port, it would lead to lower transit time. The company has the capacity to supply 100 million books to the educational and childrenas book markets in Africa, Europe and the United States.

RIL today offers end-to-end printing services like content creation, design and layout, database management, printing, packaging, warehousing, and dispatch to last mile. The company has three broad lines of operations a Education book printing (67% of revenues in 2007-08), corporate printing (17%) and contract printing (6%). Its selected geographies for exports are 14 countries in Africa, Europe and the United States.

Export of education book printing drives revenue growth:

In sync with the growing global demand for print outsourcing, RIL is currently focussing on growing its presence in printing educational books for the international markets. The share of exports went up to 62% of overall revenues in 9m, 2008-09 from 44% of overall revenues in 2007-08. RIL plans to keep the share of exports at around 70%; a level expected to be reached by 2009-10. More than 75% of exports are to African countries like Nigeria, Ghana, Mozambique, Uganda, Zambia and Tanzania. Africa, which accounted for 35% of 2007-08 revenues, has been a region of continued focus for the company for the last few years, as the demand for educational books is huge due to World Bank funded education projects. The lack of domestic printing facilities in Africa is an added advantage. Considering the stickiness in the demand for educational books from established markets in Africa and the increase in demand in less entrenched markets like Europe and the United States, ICRA expects good growth inthe export revenues of RIL. The recently commissioned SEZ facility at Surat is expected to contribute significantly to revenues from 2009-10 and help sustain a high pace of growth in exports.

Credit risk mitigation systems for export orders:

RIL currently exports to 14 African countries, which together contribute more than 75% of exports revenues of the company. In these countries, RIL deals with large publishers such as Heinemann Educational Books Plc., University Press, Longman Nigeria, Oxford University Press - Tanzania and Evans Publishing Group. The company also works with the local governments of Mozambique and Nigeria. The general payment period is 60-90 days; however, it goes up to 120 days in some cases. Almost 100% order executions are backed by LCs with the advising/ confirming bank being from a developed country like the United Kingdom or the United States. About 75% of LCs is confirmed by a bank in a developed country. Additionally, the company avails ECGC cover for export clients.

The export revenues of the company are largely denominated in foreign currency, predominantly in USD, thus exposing the profitability of the company to currency fluctuation risks. To mitigate this risk, the company follows a proactive hedging policy for foreign currency exposure using foreign exchange forwards. The hedging philosophy of the company is to hedge the net exposure to protect margins.

Well-diversified customer base; established stable relationships with globally acclaimed publishers and corporates:

RIL has a well-diversified client base, with no single customer contributing more than 5% of its overall revenues. By its ability to add value through customisation, RIL has managed a customer base that comprises some of the largest publishers of the world across Africa, India, the United Kingdom and the United States. RIL is working with leading publishers like McGraw-Hill, Pearson, Longman, Oxford and Heinemann in educational publishing; and Modern Publishing, Igloo, Autumn Publishing, Arcturus, Beaver Books, C4Ci, Dalmatian and Holland Publishing in childrenas book publishing. The customers of RIL in the domestic market include Indiaas largest corporates including the TATA group, Hindustan Unilever Limited, Wipro Technologies, Godrej Industries Limited, Asian Paints Limited and DLF Suzlon Energy Limited for whom it produces Annual Reports, Corporate Brochures and Magazines. RIL also caters to domestic educational publishers like Jeevandeep Prakashan, the Institute of Chartered Accountants of India (ICAI), the Institute of Cost and Works Accountants of India (ICWAI), Symbiosis (Distance Learning), Aptech, IIJT (Indian Institute of Job-oriented Training), IIHT Limited, IMS learning, Vikas Prakashan and Amity Press.

Capacity expansion to augment growth:

Having established a stable customer base, the company expanded its capacity in 2008-09 by setting up a greenfield printing unit in Surat SEZ. The investment of Rs. 320 million on the Surat SEZ was funded through an ECB of USD 7 Million. The facility was fully commercialized in January 2009 and doubled the capacity of RIL to 200 million books a year from 100 million books. The capacity expansion would ensure that the high pace growth in exports is sustained over a medium term. The unit is expected to contribute Rs. 400 million and Rs. 1.5 billion to the total sales of the company in 2008-09 and 2009-10, respectively. The company does not have any major capex for the next five years. However, the capacity enhancement of its two existing plants would be funded through internal accruals.


(Donald Francis) #6

Hitesh,

I Need to track/follow this company some more:

Pros:

1). On the face of it, looks like a company with good prospects, strong customer relationships, diversified client base. Major Capex is behind the company, its getting better at Forex risk Management, working Capital management showing marginal improvement. Sales should do 35-40% growth. Will Surat SEZ do the trick?

Cons:

2). 5 yr track record on growth is average. Sales, EPS and DPS 5yr CAGR is roughly 20%

3). The high working capital requirement (120days+) is the biggest drag on the company’s profitability record. In FY10 working Capital requirement was almost the same as longterm debt? RoCE has been coming down for last 3 yrs and dropping below 10% as pointed out by Arindam is a concern

Need to see if Management noise on margins, better working capital management is borne out in FY11 and the trend of diminishing returns can be reversed.

Rgds

Donald


(Hitesh Patel) #7

Repro seems to be shaping up quite well if one looks at the first quarter results and fy 11 results. Debt though is high for the company. I think this one needs a re look. Div paid for fy 11 was at Rs 6 so effective yield at cmp 135 comes at 4% plus.


The stock after posting a recent high of 187 is correcting along with the markets and cmp is 135. It should find good support around 120-125 where it previously used to find stiff resistance.

YEAR

05

06

07

08

09

10

11

Q1 fy 12

SALES

83

111

129

150

238

201

255

71.43

NP

4.5

8.7

9.5

15.5

16.5

17.55

22.79

8.7

Eps

5.67

8

9

14.8

15.7

16.7

20.61

8.21

Dividend

1.5

2

2

2.5

5.5

6

RONW

14

11

11

16

15

loan

40

30

43

41

106

135

156


(OMPRAKASH) #8

Recent HDFCSEC report on Repro.http://www.hdfcsec.com/Research/ResearchDetails.aspx?report_id=2979923C


(Hitesh Patel) #9

repro has come out with excellent numbers and continues its growth trend.

YEAR

05

06

07

08

09

10

11

12

SALES

83

111

129

150

238

201

255

336

NP

4.5

8.7

9.5

15.5

16.5

17.55

22.79

35

Eps

5.67

8

9

14.8

15.7

16.7

20.61

33

Dividend

1.5

2

2

2.5

5.5

6

10

ROE

11.7

17.28

16

15

17.34

10.24

loan

40

30

43

41

106

135

156

180*


* net debt on march 12 is 180 cr total debt minus 72 crores cash in hand which amounts to 102 crores.

cmp of stock around 220, div announced for fy 12 is rs 10 per share. div yield amounts to 4.5% and stock currently available at a PE of 6.66. I think this one needs a serious look.


(Hitesh Patel) #10

ROE for fy 12 should be read as 20 instead of 10.24. typo error regretted.


(Ayush Mittal) #11

One negative is that the co hasn’t been providing for taxes. Even if one considers 18% taxation, PE ratio won’t seem that cheap.


(AMN) #12

Company has been consistently increasing dividends. The recently announced dividend of Rs.10 per share gives a very healthy dividend yield on CMP Rs.218.


(Anand Bhushan) #13

Hi Hitesh/Ayush,

Just want to understand the anomaly in Repro’s balance sheet. LT Debt and ST debt is increasing YOY and cash & cash equivalents also increased YOY. what could be the rational logic for keeping debt and cash both high and at the same time increasing the dividend yield YOY? wont it be proper strategy to reduce debt by cash available in the book?

Rgds,

Anand


(Hitesh Patel) #14

I guess they might be keeping cash to do some acquisitions. There was some talk back in 2011 also about acquisitions.

Debt has increased marginally and I think should not be a cause of worry looking at the growth.

Of more concern is the observation by Ayush about tax. If and when the tax holiday stops, there could be a major impact on profits.


(Anand Bhushan) #15

Debt has increased from 139 cr in 2011 to 180 cr in 2012…so almost 30% increase…their cash has also increased to 72cr from 51 cr YOY…almost 40% increase…and on top of all more than 60% increase in dividend payout…some how or other all these things are not sitting well together for me…

please let me know the gaps in my analysis…because this story is another value erosionfor shareholders atleast for me…

Rgds,

Anand


(ranvir dehal) #16

Hi everyone,

Seems like no one is tracking this company anymore. To be fair the business certainly a great one but it isn’t bad either. Considering the high dividend yeild, healthy cash on books and good future prospects (as brought out by the management in the recentconferencecall) the company doesn’t look expensive at all. High levels of debt however is a concern. But if the company uses its cash to pay off its debts or to do some acquisition or to may be buyback its shares, it could be a major trigger going forward.

I would request Donald, Hitesh and other esteemed valuepickrs to throw some light on this one.

Thanks,

Ranvir


(Deepak Swamy) #17

Q3/Fy-13 Results out…

Total Income up 8.7% to 96.37 Cr from 88.66 Cr.
EBIDTA up 3.5% to 16.25 Cr from 15.69 Cr.
Net Profit up 33.3% to 11.02 Cr from 8.27 Cr.

EBIDTA margin is 16.9% v/s 24.7% (SQ-12) and 17.7% (DQ-11)
NET Profit margin is 11.4% v/s 9% (SQ-12) and 9.3% (DQ-11)

Total Raw material costs as a %ge to Income is 43.5% v/s 40.4% (SQ-12) and 44.1% (DQ-11)
Employee costs to Income is 10.2% v/s 9.2% (SQ-12) and 9.5% (DQ-11)
Other expenses to Income is 29.4% v/s 25.8% (SQ-12) and 28.9% (DQ-11)

Financial costs to EBIT is 24.1% v/s 12.8% (SQ-12) and 27.5% (DQ-11)

Tax Rate 0% v/s 12.8% (SQ-12) and 27.5% (DQ-11)

9M/Fy-13 v/s 9M/Fy-12:
Total Income up 16.7% to 291 Cr from 249.41 Cr
EBIDTA up 43.5% to 59.86 Cr from 41.72 Cr
Net Profit up 10.4% to 29.12 Cr from 26.37 Cr

Reported 9-month EPS 26.54 v/s 24.59 (Fy/11-12: 33.28)
Recorded TTM diluted EPS: Rs. 35.32

At 01:20 pm on 29/01/2013, stock on BSE trading at Rs. /-197 down 6.7%


(ranvir dehal) #18

Results are descent. I wonder why is the stock going so cheap. Probably some clarity will emerge after their quarterly conference call.

Ranvir


(Hitesh Patel) #19

ranvir,

I am not too sure but I think one reason could be tax rates are probably going to go up going forward.


(Mokhtar Yaveri) #20

Along with the tax another worrying sign is the decreasing promoter stake.

The stock is quoting cheap considering the high divident declared; even if consider tax yet taking this high dividend yield compensates for it.

Hitesh bhai any idea why are the promotersreducingstake? The con-calls of the company emit a lot of positivity especially from the export(AFrica) business segment.