HBL Power System Limited

We have just received the results of HBL Power. Here is a quick look and analysis on the same.

For Q3FY08, it has reported Revenues of Rs.288.6 crore compared to Rs.121.9 crore in the same period last year, a 137% growth on YoY basis and 11% growth on QoQ basis. It has reported EBIDTA of Rs.51.9 crore compared to Rs.18.3 crore last year, a growth of 183%. Growth in PAT is even more impressive at 279% as its PAT stood at Rs.27.7 crore in Q3FY08 from Rs.7.3 crore in Q3FY07. EBIDTA Margin improved to 18% in Q3FY08 from 11.2% in Q2FY08 and 15.1% in Q3FY07. On QoQ basis, EBIDTA margin expanded by 680 basis points, mainly due to lower raw material (lead) prices.

In last 3-4 months, price of 2 key raw materials have fallen by more than 30-35% from its peak in October, which has resulted in improved situation on raw material as a percentage to sales.