Genus Power Infrastructure Ltd
CMP Rs.398 Buy, Upgraded Target Price of Rs.644
Genus Power Infrastructure Ltd. (Genus), has delivered robust growth in the top line as well as the bottom line for the quarter ended 31st March 2008. Some of the key highlights of the financial performance of Genus for the said period are as follows:
Net sales increased by 27.4% YoY and 83.8% QoQ to Rs.1936.7 mn in Q4FY '08.
EBIDTA increased to Rs.350.5 mn in Q4FY '08 i.e a at YoY growth of 75.9% and 112.1% QoQ growth. EBIDTA margins jumped by around 499 bps YoY to 18.1%. This was mainly due to a 913 bps reduction in the other expense although the raw materials as a percentage of sales increased to 77.8% from 70.4% during Q4FY07.
The Profit before Tax (PBT) including Other Income increased by 89.5% to Rs.294.4 mn in Q4FY '08. The PBT margins increased by 498 bps to 15.2% in this period.
The Profit after Tax (PAT) increased to Rs.255.5 mn in Q4FY'08, exhibiting a growth of 102.2% YoY.
For the full year FY'08 period, the Company showed a growth in net sales of 35.3% to Rs.4832.8 mn.The EBIDTA increased 53.7% to Rs.818.7 mn mainly due to lower other expenses, which decreased by 49.4%. Its PAT increased to Rs.516 mn, registering a growth of 85.9%. Its energy meters segment contributed around 48.3% (Rs.2430 mn) and turnkey projects segment contributed 42.1% (Rs.2120 mn) to its revenues during FY'08.
The Company has an order backlog of Rs 4170 mn, of which about 60% orders are from meters business. The Company has already participated in tenders more than worth Rs 48390 million, out of which the Company is already ´L-1´ in orders worth Rs 4500 million.
Genus has bought a 6 MW power generation plant from Genus Power Products Ltd (GPPL). Subsequently the GPPL shareholders would receive 1 fully paid-up share of GPIL for every 60 fully paid-up shares of GPPL currently held by them.
We have increased our numbers for FY09E and introduced new numbers for FY10E on back of better then expected numbers in FY08 and better visibility. At the current market price of Rs 398, the stock is available at an attractive valuation of 9.6x its FY '09E earnings of Rs 41.4 and 7.4x its FY '10E earnings of Rs.53.7. We upgrade our rating on the stock to a BUY with an increased price target of Rs.644 (12x FY '10E EPS).
Source: Internet
