Author: CP

Sanwaria Agro Oils – SAOL exceeded sales estimates by a wide margin & PAT estimates marginally for FY08. It achieved a turnover & PAT of Rs. 9386 mn & Rs. 543 mn respectively against an estimated turnover and PAT of Rs. 8234 mn & Rs. 501 mn respectively. EPS for FY08 stood at Rs. 6.2 [FY07: Rs. 1.4] vs. estimated EPS of Rs. 5.8. The net sales & PAT increased by 110.7% & 344% respectively over FY07. EBITDA margins improved from 5.2% in FY07 to 8.3% in FY08. PAT margins increased from 2.7% in FY07 to 5.8% in FY08. Improved realisations, better capacity utilisation & economies of scale contributed largely to the sales & profitability growth.

SAOL has expanded the existing daily crushing capacities at Mandideep & Itarsi from a total of 1,000 TPD to 2,000 TPD & refining capacity from a total of 150 TPD to 300 TPD. The commercial production of the same has commenced from January 15 2008. The full impact of this expansion is expected in FY09.

HDFC Bank has reported a net profit of Rs. 4.71bn (37 % yoy growth), ahead of our estimate of Rs 4.61bn. The key takeaways from the quarter: Strong NII growth, slower non- fund income growth, higher provisioning expenses as the bank set aside for contingencies and a lower tax rate. Sequentially the advance portfolio has declined: a function of securitization carried out during the quarter.

Non-fund income growth has been relatively slower this quarter at ~39% yoy, primarily due to decline in forex/derivative revenues. Lower tax outflow on account of tax free income booked during the quarter allowed the bank to make a higher provision on contingencies (for derivative related issues). On the positive side, sequentially there has been a decline in the provisions on NPA and standard assets (NPA provision to average loan down to 1.66% from 1.87% in Q3FY08)

Expect HDFC Bank to report a fully diluted EPS of Rs 54, post centurion bank of punjab merger with itself.

Net sales grew at 38.9% YoY (Vs estimate of 26.3%) to Rs3,014 MM, as the realization per MVA remained stable at Rs0.5 MM. The net sales for Q4FY08 stood at Rs1,066 MM (YoY not comparable, as the company got listed recently).

EBITDA increased by an impressive 69.3% YoY (Vs 53.3% YoY) to Rs552 MM. The EBITDA margins stood at 18.3% (improvement of 70 bps YoY). For Q4FY08 the EBITDA margins stood at 17.6%.

PAT grew by 98% YoY (Vs 70% YoY) to Rs331 MM owing to higher EBITDA margins, thereby leading to net margins being higher at 11.0% (Vs 10.3%) compared to 7.7% in FY07. The net margins for Q4FY08 were at 10.3%.

The management for FY09, has guided for revenues of Rs5 Bn with an EBITDA and net profit margins of 20% and 10% respectively. They expect similar realizations in FY09 and some moderation in FY10, as they are planning to enter in higher MVA transformer segment.