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    HomeNewsBusinessEarningsGrasim Q1 PAT may fall 43% at Rs 155 cr: Motilal Oswal

    Grasim Q1 PAT may fall 43% at Rs 155 cr: Motilal Oswal

    Motilal Oswal expects Grasim to report a 27.2 percent degrowth quarter-on-quarter (down 43.2 percent year-on-year) in net profit at Rs 154.9 crore.

    August 03, 2013 / 12:53 IST
       
       
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      Motilal Oswal has come out with its first quarter (April-June) earnings estimates for the cement sector. The brokerage house expects Grasim to report a 27.2 percent degrowth quarter-on-quarter (down 43.2 percent year-on-year) in net profit at Rs 154.9 crore.


      Revenues are expected to decrease by 15.8 percent Q-o-Q (down 6.4 percent Y-o-Y) to Rs 1,159.6 crore, according to Motilal Oswal.


      Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to fall by 11.4 percent Q-o-Q (down 35.7 percent Y-o-Y) to Rs 189.8 crore.


      Motilal Oswal report on Grasim


      We expect VSF volumes to grow 2.6 percent Y-o-Y (decline 17 percent Q-o-Q) to 79,052 tonne, impacted by the uncertain global economic outlook. VSF realizations would decline by INR 10/kg Y-o-Y (INR 1/kg Q-o-Q) to INR 118/kg, influenced by weak Chinese VSF pricing and soft cotton prices. We are assuming price/kg of INR 121/124 for FY14/15.


      Standalone EBITDA margin is likely to contract 7.4pp Y-o-Y (expand 80bp Q-o-Q) to 16.4percent.


      We expect EBITDA to decline 36 percent Y-o-Y (11 percent Q-o-Q) to INR 1.9 billion and PAT to decline 43 percent Y-o-Y (27 percent Q-o-Q) to INR 1.5 billion.

      The stock trades at 7.2x FY15E consolidated EPS, and an EV of 4.6x FY15E EBITDA and USD78/ton.

      first published: Aug 3, 2013 12:41 pm

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