Author: CP

Moser Baer reported 4Q loss of ~Rs720m (standalone) compared to ~Rs400m profit in 4QFY07. For FY08, Moser reported standalone losses of Rs800m. Optical media outlook continues to be challenging with another sharp ASP fall this quarter. New businesses are still in investment mode and do not contribute much.

Optical Media is going through severe pricing pressures due to a difficult supply-demand scenario with the dispute on royalty issue between Philips and the large CDR producers. Management admitted that near-term challenges are likely to continue.

PV business had $20m revenue in 4Q. The 40 MW crystalline silicon line is being expanded to 80 MW soon and production capacity of solar modules has been expanded to 40 MW.

TAJ GVK reported 5.4% yoy increase in sales as ARRs for Chandigarh increased by 14% yoy while those for Taj Krishna in Hyderabad remained flat as compared to a year ago. Operating margins improved marginally by 30bps yoy as other expenditure declined yoy.

During the quarter, the company carried out routine renovation work which led to higher depreciation charge but a lower tax outgo led to 7% rise in net profit. For the full year FY08, PAT increased 9.5% as ARRs rose 3.7% on average across four properties.

The company is expected to commission its 215 room hotel in Chennai in May taking total room inventory to 899 rooms. The company is expected to report a Modest EPS Growth of Rs 12.8 for FY09.

For 4QFY2008, Subros Limited clocked 2.4% growth in Net Sales to Rs187.8cr, which was largely in line with our expectation of Rs188.1cr. Sales growth came on the back of volume growth of 7.6% while average realisations declined 4.8% yoy. Subros sold 1,43,717 AC units in 4QFY2008 as against 1,33,581 sold in 3QFY2008. The company’s Bottom-line, which increased 9.8% yoy to Rs8.9cr was also in line with our expectation of Rs8.7cr. Margins were however, marginally above our expectations primarily due to lower raw material costs.

During 4QFY2008, Subros witnessed a 115bp yoy increase in EBITDA Margins owing to lower Raw Material cost, which declined by almost 210bp yoy. Raw Material costs accounted for over 68.8% of Sales (70.9% in 4QFY2007). Subros reported a 9.8% jump in Net Profit wherein Net
Profit Margins improved by 30bp.

For FY2008, Subros clocked 2.4% growth in Net Sales to Rs662.7cr driven by around 8.3% yoy growth in volume while realisations declined by 5.4% yoy. Expect Subros to report an EPS of Rs 5.75 for FY2009.