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Jul 30, 2012, 06.26 PM IST
CRISIL Research has come out with its report on HSIL. The research firm has maintained the fundamental grade of 4/5, in its July 26, 2012 report.
CRISIL Research has come out with its report on HSIL . The research firm has maintained the fundamental grade of 4/5, in its July 26, 2012 report.
HSIL Ltd’s (HSIL’s) Q1FY13 results were below CRISIL Research’s expectations due to underperformance by the container glass segment. Sales grew by 6% y-o-y to Rs 3,240 mn driven by 18% growth in building products that was offset by 4% y-o-y decline in container glass. EBITDA margin contracted by 250 bps y-o-y to 17.6% because of a steep rise in power and fuel costs. PAT margin declined by 367 bps y-o-y to 5.6% due to lower EBITDA margin and increase in interest cost and depreciation. We remain positive on HSIL’s strong position in sanitaryware and container glass segments and long-term growth prospects. We maintain our fundamental grading of 4/5.
Weak sales growth; uncertain macro environment likely to play spoilsport
Expect EBITDA margin to likely remain under pressure from persisting cost inflation
Earnings estimates reduced and fair value revised to Rs 185
Disclaimer: This report (Report) has been commissioned by the Company/Investor/Exchange and prepared by CRISIL. The report is based on data publicly available or from sources considered reliable by CRISIL (Data). However, CRISIL does not guarantee the accuracy, adequacy or completeness of the Data / Report and is not responsible for any errors or omissions or for the results obtained from the use of Data / Report. Opinions expressed herein are CRISIL's opinions as on the date of this Report. The Data / Report are subject to change without any prior notice. Nothing in this Report constitutes investment, legal, accounting or tax advice or any solicitation, whatsoever. The Report is not a recommendation to buy / sell or hold any securities of the Company. CRISIL especially states that it has no financial liability, whatsoever, to the subscribers / users of this Report. This Report is for the personal information of the authorized recipient only. This Report should not be reproduced or redistributed or communicated directly or indirectly in any form to any other person or published or copied in whole or in part especially outside India, for any purpose.
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