31 July, 2014 00:44 IST
News
Result Previews: Sun Pharma, SAIL, Ranbaxy, RCom, ALL, NCC, ABL
Source: IRIS (08-NOV-12)
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Following are the Q2 earnings preview from Angel Broking for companies whose results are expected today:

Sun Pharma

Sun Pharma is likely to clock a 31% yoy growth on the sales front, led by both exports and domestic sales. Operating profit margins would decline by 120bps with margins likely to be around 40.2%. This along with a higher tax outgo would lead to an expected net growth of 11.3% yoy during the quarter. We recommend a neutral on the stock.

SAIL

SAIL is expected to announce its 2QFY2013 results today. We expect the company’s top-line to grow by 1.1% yoy to Rs 109.6 billion due to better realizations. Also we expect the EBITDA margin to improve by 228bp yoy to 13.2% on account of higher realizations coupled with lower coking coal and iron ore costs. The bottom-line is expected to fall by 4.1% yoy to Rs 9.62 billion. We maintain our Neutral rating on the stock.

Ranbaxy Labs

Ranbaxy is expected to post a growth of 34.7% with sales at Rs 27.68 billion during 3QCY2012. The OPM is expected to be at 13.5% V/s 5.0% in 3QCY2011. However, the net profit is likely to come in at Rs 3.57 billion, V/s a loss of Rs 1.24 billion during the corresponding period of the previous year. We maintain our neutral view on the stock.

Reliance Communication

Reliance Communications (RCom) is slated to announce its 2QFY2013 results today. We expect the company to record revenues of Rs 51.99 billion, down 2.3% qoq. This is expected primarily on the back of qoq flat ARPM at Rs 0.43/min and 1.7% qoq decline in MOU to 225min. The EBITDA margin is expected to decline by 10bp qoq to 30.9%. PAT is expected to come in at Rs 1.7 billion. We maintain our Neutral view on the stock.

Ashok Leyland

Ashok Leyland (AL) is slated to announce its 2QFY2013 results today. The company’s top-line is expected to grow by 8% yoy to Rs 33.26 billion led by a 26% yoy growth in volumes mainly led by its LCV - Dost. We expect net average realization to decline by 17% yoy on account of higher contribution from its lower priced vehicle, Dost. On the operating front, the EBITDA margin is expected to witness a 140bp yoy contraction to 9.3% mainly due to change in product-mix and higher discounts. As a result, the net profit is expected to decline by 24% yoy to Rs 1.17 billion. At Rs 25, the stock is trading at 9x FY2014E earnings.  Currently, we have a Buy rating on the stock with a target price of Rs 30.

Nagarjuna Construction Company

We expect subdued performance from Nagarjuna Construction Company (NCC) for this quarter. On the top-line front, NCC is expected to post a growth of 12.0% to Rs 12.21 billion. The EBITDA margin is expected to witness a dip of 126bp yoy to 8.2% for the quarter. However, the blow is expected on the earnings front, as we expect the company to post a decline of 53.9% on a yoy basis to Rs 50 million for the quarter. This would be primarily on account of muted revenue and EBITDAM and burgeoning interest cost (yoy jump of 36.7%), led by elongated working capital cycle. We maintain our Neutral view on the stock.

Ashoka Buildcon

For 2QFY2013, Ashoka Buildcon (ABL) is expected to post a revenue growth of 40.5% yoy on the consolidated revenue front to Rs 4.03 billion. This is mainly on account of lower base of last year. On the margin front, we expect ABL to post an EBITDAM of 22.1%, registering a dip of 134bp on a yoy basis. We expect the company to post a 33.1% yoy decline in its earnings to Rs 220 million for the quarter. We maintain our Buy recommendation on the stock with a target price of Rs 304.

Disclaimer: IRIS has taken due care and caution in compilation of data for its web site. Information has been obtained by IRIS from sources which it considers reliable. However, IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website.


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