Bartronics’ 1QFY10 net profit jumped 121% yoy to Rs352m due to margin expansion and mark-to-market forex gain on the FCCBs.
Bartronics has maintained FY10 guidance of Rs10bn in revenue and Rs1.5-1.8bn in net profit. It expects FY10 EBITDA margin to hold at around 28-31%. The consolidated EBITDA margin was 31%, while the standalone margin came in at 36.5%. The boost in the margin came primarily from lower employee costs in the
international business and SG&A expenses.
The company is seeing healthy traction in its domestic business (government related orders). However, both the foreign subsidiaries (USA and Singapore) will take some time before they are out of the woods
The company is expected to report an EPS of Rs 38.7 and Rs 44 for FY 10 and FY 11. One can BUY the Stock for a Price Target of Rs 225.
