Dalal Street

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.

For 4QFY2008, Marico Limited posted a modest Topline growth of 17.8% yoy to Rs468cr (Rs397cr) on a consolidated basis in line with our expectation of an 18.6% growth to Rs471cr. However, this was the first quarter of below 20% Topline growth during the last eight quarters indicating the impact of high base. Healthy growth across its businesses including consumer products in India, international business and Kaya Skin Solutions, contributed to overall growth.

Marico’s Earnings for the quarter, on a consolidated basis, grew 45.1% yoy to Rs40.8cr (Rs28.1cr) on reported basis largely aided by a one-time gain of Rs10.6cr on account of sale of Sil brand to Scandic Food India Pvt Limited. At the Operating front, Marico delivered a disappointing performance registering a 35bp contraction in OPM to 9.7% (10.1%) resulting in a muted 13.6% yoy growth in EBITDA to Rs45.6cr (Rs40.1cr).

Lloyd Electric and Engg net sales rose by 36.14 per cent from Rs. 490.28 crores in FY07 to Rs.668.23 crores in FY08. During the recent quarter net sales of the company rose by 21.02 per cent from Rs.153.25 crores to Rs.185.47 crores.

EBIDTA increased by 32.94 per cent from Rs.66.06 crores in FY07 to Rs.87.82 crores in FY08. During the recent quarter the EBIDTA increased by 3.74 per cent from Rs.21.38 crores in Q4 FY07 to Rs.22.18 crores to Rs.22.18 per cent in Q4 FY08. EBIDTA margins registered a fall from 13.81 per cent in Q4 FY07 to 11.90 per cent in Q4 FY08. The fall in EBIDTA margins was due to higher raw material cost. RM cost during Q4 FY08 was 87.69 per cent of net sales as compared to 81.87 per cent during Q4 FY07.

PAT registered a growth of 23.84 per cent from Rs.42.96 crores in FY07 to Rs.60.38 crores in FY08. PAT registered a growth of 1.58 per cent from Rs.15.20 crores in Q4 FY07 to Rs.15.44 crores in Q4 FY08. PAT margins declined during the quarter from 9.82 per cent in Q4 FY07 to 8.28 per cent in Q4 FY08