>AIA ENGINEERING (ENAM SECURITIES)

NEAR TERM VISIBILITY IMPACTED BY SLOWDOWN
AIA Engineering (AIAE) FY09 results were in line with our estimates. On a consolidated basis, AIAE reported revenues of Rs 10.3 bn (up 45% YoY), EBITDS of Rs 2.6 bn (up 39% YoY) and adj. PAT of Rs 1.7bn (up 28% YoY). Due to uncertain export-market outlook (esp mining); the mgmt yhas not given specific revenue guidance but is cofident of maining margins.

FY09 result highlights and concall | takeaways

■ Sales volume were up 11% YoY to 95,348 MT, largel due to strong H1FY09 (~22% growth).
■ Margins: Bcaked by favourable sales mix and weaker INR, realizations increased ~32% YoY to Rs 108/kg.
■ MTM: AIAE partially hedges its forward sales (30-40%). In FY09, it booked gross MTM loss of Rs 320 mn (Rs 200 mn net MTM).
■ Balance sheet: Reduction in debtor (66 days) and inventory days (45 days) was noteworthy. Net cash increased to ~Rs 2.7 bn.

To see full report: AIA ENGINEERING