Sizes of Hard X-ray Footpoints Brian Dennis Rick Pernak (CUA) NASA GSFC.
GSFC Q3 FY13
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Transcript of GSFC Q3 FY13
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February 05, 2013 Apurva Shah (Research Analyst)(022) 6714 1449Milind Karmarkar (Head Research)
(022) 6630 8667
Nilay Dalal / (Equity Sales)
(022) 3290 3017
Gujarat State Fertilizers & Chemicals Ltd.
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Dalal & Broacha
Stock Broking Pvt. Ltd.
Dalal & Broacha Research is available on Bloomberg DBVS
GSFC Q3 FY13 result was above our expectation.
Net sales increased by 33% YOY to Rs. 17294.3 mn from Rs. 13000.2 mn, on back
of robust growth in fertilizer segment by 40.6% to Rs.12637.9mn. Industrial
segment too posted healthy growth of 16% to Rs.4656.4mn.
EBITDA reduced by 10.5% to Rs.2308.3mn in Q3FY13 vs Rs.2579.6mn in Q3FY12.
Operating margins reduced by ~650bps. Decrease in employee cost and power
cost by 320bps and 230bps respectively was off set against increase in raw
material cost by 1280bps as percentage to sales, which impacted the margins.
Due to increase in raw material cost, margins of fertilizer and industrial segment
both have dropped by 200bps and 1730bps respectively. Interest expense
increased by 328% to Rs.108.4mn from Rs.25.3mn.
Net profit decreased by 20.8% to Rs.1364.9mn from Rs.1723.5mn. EPS for the
quarter stood at Rs.3.4.
Segment wise breakup (Rs. Mn)
Segments Q3 FY13 Q3 FY12 YOY Q2 FY13 Q OQ
Ferti li zer (13.3%)* 12637.9 8989.2 40.6% 9208.8 37.2%
Chemicals (9.1%)* 4656.4 4011 16.1% 4951.4 6.0%
Total 17294.3 13000.2 33.0% 14160.2 22.1%
*Figure i n braket indi cates EBIDTA margin for quarter per se gment
Conference call highlights:
. Company paid one time expense of Rs.15cr for the settlement of arrears of
union at its sikka unit.
. Company had shut down its caprolactam plant for 15-20 days for
modernization, the cost of which was Rs.80cr. Due to this production was
impacted.
. The modernization of caprolactam plant will help the company reduce its
benzene raw material cost by ~4.5%.
. Methanol project is in pre commissioning phase and will start by feb end.
. Interest expense increased due to increase in working capital, as they did
not recieve subsidy since Sept 2012.
Valuation:
The stock is trading at 4.5x FY13E EPS of Rs. 14.6 and 3.8x FY14E EPS of Rs. 17.2.
We recommend buying the stock at current level.
Result Update @ Dalal & Broacha
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GSFC Sensex
Year Net Sales % Growth EBIDTA OPM % PAT % Growth EPS P/E (x) ROE % RoCE %
FY 11 47,550.5 18.3 11,718.9 24.6 7,493.7 194.5 18.8 3.5 30.1 36.6
FY 12 53,018.3 11.5 11,346.5 21.4 7,575.7 1.1 19.0 3.5 23.9 30.2
FY 13E 59,786.9 12.8 9,034.6 15.1 5,830.7 -23.0 14.6 4.5 15.5 20.8
FY 14E 65,803.0 10.1 10,958.0 16.7 6,862.1 17.7 17.2 3.8 15.8 22.3
KEY SHARE DATA
Ma rke t Ca p Rs 25.5 BN/$481.3MNEV / Sales 0.4
EV / EBIDTA 2.0
Volume (BSE + NSE) 180804
No of o/s shares 398.5
Face Value 2
Book Value 88.3
BSE / NSE 500690 / GSFC
Reuters GSFC.BO
Bloomberg GSFC IN Equity
BU Y
Curre nt Pri ce Rs 64
Ta rge t Pri ce Rs 93
Upside 45%
52 We e k Ra nge Rs 91 / Rs 64
Shareholding (%)
Period Dec12 Sep
12
Promoters 37.8 37.8
MF / Ba nks / FI 26.6 26.5
FII 11.6 11.9
Publ ic & Others 23.9 23.8
Total 100.0 100.0
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Result Update @ Dalal & Broacha
Pa rti cu l a rs (R s . M n ) Q 3 F Y13 Q 3 F Y 12 Y -O -Y Q 2 F Y 13 Q -O -Q N et S a les 17294.3 13000.2 33.0% 14160.2 18.1%
E x p e n d i t u r e
R a w m a te ri a l s co n s u m e d (11430.6) ( 6929 .2 ) 65.0% (9477.3) -17.1%
E m p l o ye e E xp e n s e s (1018 .7) ( 1182 .3 ) -13.8% (892 .9) -12.3%
Po w e r co s t (1002 .9 ) ( 1052.7 ) 0 .0 -100.0%
O th e r E xp e n s e s (1533 .8) ( 1256 .4 ) 22.1% (1762.4) 14.9%
TO TAL E X PE N D ITU R E (14986.0) (10420.6) 43.8% (12132.6) 19.0%
E B I D T A 2308.3 2579.6 -10.5% 2027.6 -12.2%
O th e r I n co m e 193.8 307.1 -36.9% 459.9 137.3%
I n te re s t (108 .4 ) ( 25 .3 ) 328.5% ( 32 .4) -70.1%
D e p re ci a ti o n (348 .3 ) (327 .6) 6.3% (339 .9) - 2.4%
PB T 2045.4 2533.8 19.3% 2115.2 3.4%
T a x e xp e n s e (680 .5) (810 .3 ) (610 .6) -10.3%
PAT 1364.9 1723.5 20.8% 1504.6 10.2%
E xce p ti o n a l I te m 0.0 0 .0 0 .0
R eported PAT 1364.9 1723.5 20.8% 1504.6 10.2%
E PS 3 .4 21 .6 3 .8
N o . o f E q u i ty s h a re s 797 .0 797 .0 797 .0
F a ce V a l u e 2 .0 10 .0 2 .0
M a r g i n s
O PM 13.3% 19.8% 14.3%
PB T 11.8% 19.5% 14.9%
N PM 7.9% 13.3% 10.6%
T a x R a te 33 .3% 32.0% 28.9%
A s p e rce n t a g e o f S a l e sR a w M a te ri a l Co n s u m e d -66.1% -53 .3% -66 .9%
E m p l o ye e E xp e n s e s -5 .9% -9 .1% -6 .3%
Po w e r Co s t -5 .8% -8 .1% 0.0%
O th e r E xp e n s e s -8 .9% -9 .7% -12 .4%
G S F C - R e s u l t U p d a t e
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Disclaimer
This document has been prepared and compiled from reliable sources. While utmost care has been taken to ensure that
the facts stated are accurate and opinions given are fair and reasonable, neither the Company nor any of its Directors,
Officers or Employees shall in any way be responsible for the contents. The Company, its Directors, Officers or Employees
may have a position or may otherwise be interested in the investment referred in this document. This is not an offer or
solicitation to buy, sell or dispose off any securities mentioned in this document.
For Further details
Contact Email ID Contact No. SectorMr. Milind Karmarkar [email protected] 022 67141445 Head Research
Mr. Chirag Shah [email protected] 022 67141447 Head Equity Sales
Ms. Hiral Sanghvi [email protected] 022 67141444 IT, Retail
Mr. Kunal Bhatia [email protected] 022 67141442 Auto, Auto Ancillary, FMCG
Mr. Lalitabh Shrivastawa [email protected] 022 67141450 Banking & NBFCs
Mr. Ashutosh Garud, CFA [email protected] 022 67141448 Capital goods
Ms. Purvi Shah [email protected] 022 67141446 Pharma
Mr. Apurva Shah [email protected] 022 67141449 Agrochemicals, Fertilizers
Address :- 508, Maker Chambers V, 221 Nariman Point, Mumbai 400 021 Tel: 91-22- 2282 2992, 2287 6173, (D) 6630 8667 Fax:
91-22-2287 0092
