Thursday, January 29, 2009

>Engineers India Limited (GEOJIT)

# EIL, 90.4% owned by government, has reported very fantastic performance for Q3 FY 2009. Net Sales more than doubled to Rs. 528.5
crore (Rs. 177.5 crore) led by substantial jump in Lump Sum Turnkey (LSTK) turnover of Rs. 286.95 crore (Rs. 28.35 crore). Consultancy
& Engineering business also reported sharp 62% jump in sales of Rs. 241.52 crore (Rs. 149.1 crore). OPM% however declined to 23.6%
(27.4%) due to change in sales composition more in favor of lower margin LSTK business. Nevertheless, strong sales growth coupled with
150% spurt in other income of Rs. 43.2 crore (Rs. 28.8 crore) resulted in PBT (before extra ordinary items) more than doubling to Rs.
165.4 crore (Rs. 75.2 crore). However, after accounting for provision for gratuity liability of Rs. 60.56 crore restricted growth in PAT of Rs.
68.9 crore (Rs. 50.2 crore) at 137%.
# For 9 months FY 2009, net sales zoomed to Rs. 1,124.9 crore (Rs. 494.9 crore). OPM% dropped to 20.6% (25%). PBT skyrocketed to Rs.
339.7 crore (Rs. 206.5 crore). Extra ordinary expenses of Rs. 60.56 crore dragged down growth in PAT of Rs. 185.7 crore (Rs. 137.9
crore) to 35%.

To see full report : EIL (Investment idea)

>Wyeth Investment Idea (GEOJIT)

# Wyeth Limited, a 51.12% subsidiary of Wyeth Inc.,USA has put up excellent performance
for Q3 FY2009. Net Sales grew@ 12.6% to Rs.93.8 crore (Rs.83.3 crore) led by 11.2%
growth in Pharma business to Rs.85.19 crore. Consumer Health Care business also grew @
14.3% to Rs.8.85 crore (Rs.7.74 crore). OPM% improved to 27.7% (25.8%) as a result of
operational efficiencies. Consequently, PBT was up by 20.3% to Rs.29.3 crore (Rs.24.4
crore) and PAT grew@ 18.5% to Rs.20.8 crore.

# For 9 months FY 2009, Net Sales grew @ 14 % to Rs.293.4 crore (Rs.257.3 crore) led by
14.4% growth in Pharma sales of Rs.264.81 crore. OPM% improved to 35.4% (34.7%)
PBIT% of Pharma business was up to 38.5% (35.2%), while Loss Before Interest and Tax of
Consumer Health Care business declined to 4.8%(9.8%). Consequently, PBT grew@ 15.5%
to Rs.114.6 crore (Rs.99.3 crore) and PAT was up by 17.1% to Rs.81.2 crore (Rs.69.3 crore).

To see full report : Wyeth

>Hyderabad Industries Limited (GEOJIT)

Hyderabad Industries, flagship company of C.K. Birla group, has reported fabulous performance
for Q3 FY 2009. Turnover increased by 16.2% to Rs. 129.6 crore led by 14% higher sales of
Building product segment of Rs. 120.53 crore. Thermal Insulation business turnover jumped up by
43.9% to Rs. 9.02 crore (Rs. 6.27 crore). OPM% zoomed to 12.1% (0.9%) mainly led by reduction
in raw material cost (owing to softening of cement prices) to 51.6% (59.9%) of sales. Moreover,
with correction of demand-supply mismatch, company has been able to raise the prices of its
products. Consequently, PBT skyrocketed to 10.2 crore (loss of Rs. 2.3 crore). Further aided by
absence of extra ordinary expenses (Rs. 1.3 crore being provision for loss on Onerous contracts),
PAT shot up to Rs. 6.6 crore (loss of Rs. 1.9 crore).
For 9 months FY 2009, sales grew @ 23.8% to Rs. 435.1 crore. OPM% more than doubled to
15.3% (7.3%). Strong sales growth coupled with improved profitability led to tripling of PBT (before
extra ordinary items) to Rs. 54.3 crore (Rs. 17.6 crore). PAT zoomed by whooping 245.8% to Rs.
35.6 crore.
To see full report : HIL


> The company came out with better than expected quarterly numbers though the quarter was a challenging
> Performance of the petrochemicals division looks better than expectations and surprising too because of
increasing margins and rising volumes despite difficult market conditions.
> EPS for FY 09 is expected at R.98.15 and it would be Rs.127.37 and Rs.138.68 respectively for FY10 and
FY 11.
> Oil from KG D 6 is expected within two – three weeks.
> Resolving the gas dispute appears to be the key for better performance in the days ahead.
> The stock is recommended with a one-year target price of Rs.1322.

To see full report: RIL(A BUY)