Dear All,
Forwarding you the Result Flash on Areva T&D for 4QCY2010.
Revenues ahead of our estimates: For the quarter ending December 2010, Areva T&D reported 14.4% yoy growth in top-line to `1,327cr, well above our expectation of `1,177cr. The company ended CY2010 with a 12.7% growth in revenues to `4,037cr.
Positive surprise in EBIDTA margins: EBITDA margins witnessed an expansion of 141.6bps yoy to 13.4% as compared to our expectation of 12.7%. Consequently EBDITA surged by 28% yoy to `178cr. We had estimated the EBIDTA at `149cr.
Reported PAT higher than our estimates: The higher than expected growth in revenues and the margin expansions positively impacted PAT, which surged 29.4% yoy to `88cr as against our estimates of `75cr.
Overall, the reported numbers were higher than our estimates. At CMP of `284, the stock is trading at 36x and 27x its CY2010 and CY2011E earnings. Currently the stock is under review.
We will revise our estimates post the conference call with management.
1: Actual vs Estimates
| ` cr | Actual | Estimates | Var (%) |
| Revenues | 1,327 | 1,177 | 12.7 |
| EBITDA | 178 | 149 | 19.5 |
| PAT | 88 | 75 | 16.9 |
| EPS | 3.7 | 3.2 | 16.9 |
2: Quarterly Performance
| (` cr) | 4QCY10 | 4QCY09 | % chg (yoy) | 3QCY10 | % chg (qoq) | CY10 | CY09 | % chg (yoy) |
| Net Sales | 1,327 | 1,160 | 14.4 | 1,048 | 26.7 | 4,037 | 3,583 | 12.7 |
| Other operating income | 0.0 | 0.0 | - | 0.0 | - | 0.0 | 0.0 | - |
| Total income | 1,327 | 1,160 | 14.4 | 1,048 | 26.7 | 4,037 | 3,583 | 12.7 |
| Stock adjustments | 4.5 | 24.3 | (81.6) | (7) | (168.0) | (122.6) | 39.2 | |
| Raw Material | 901 | 799 | 12.9 | 638 | 41.3 | 2,876 | 2,453 | 18.3 |
| (% of total income) | 67.9 | 68.8 | (93.0) | 61 | | 71.2 | 68.5 | |
| Employee Cost | 92 | 84 | 9.3 | 81 | 13.9 | 346 | 292 | 18.3 |
| (% of total income) | 7.0 | 7.3 | (32.2) | 7.7 | | 8.6 | 8.2 | |
| Other Expenses | 151 | 113 | 33.1 | 122.5 | 23.0 | 497 | 379 | 24.5 |
| (% of total income) | 11.4 |
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