Dalal Street Investments
Top

Elecon Engineering Ltd

June 12, 2008

Elecon Engineering Ltd’s [EEL] Q4FY2008 results are below expectations. Revenue below estimates at Rs3.3 bn and 16% yoy growth and net profit below estimates at Rs230 mn and 30% yoy growth.

For FY2008, Elecon Engineering (EEL) reported net profit growth at 26% yoy to Rs672 mn and earnings of Rs7.2/Share, below estimates. Led by slippages in new business, we have revised our revenue estimates by 15.1% (Rs11.5 bn) and 23.2% (Rs14.0 bn) for FY2009E and FY2010E respectively. Consequently, the net profit estimates are revised by 22.1% (Rs840 mn) and 31.6% (Rs992 mn) for FY2009E and FY2010E respectively.

EEL order book at Rs12.9 bn, in line with our expectations. The order book has grown at 55% from Rs8.3 bn to Rs12.9 bn. The current order book indicates robust visibility at 1.6X FY2008 revenues, best in last 5 years.

Comments

Got something to say?






Bottom