*Jubilant Industries-Back A Winning Horse* *9MFY12 EPS Rs 43; BUY With A Tgt of Rs 400* Q3FY12 (9'Months'FY12) Results' Highlights On 14th January 2012, Jubilant Industries Ltd. announced its results for Q3FY12 (9'Month'FY12). The results surpassed our estimates by quite a wide margin. Given below are the highlights of the results :
(1) Consolidated Revenues (excluding Retail business) for Q3FY12 grew by 28.3 % YoY to stand at Rs.178.22 cr.. For 9'Month'FY12, consolidated revenues (excluding Retail business) grew by 8.3 % YoY to stand at Rs. 482.85 cr.. It is worthwhile to note here that this 8.3 % YoY growth on 9'Monthly basis has came inspite of non-inclusion of subsidy income for opening stock of SSP fertilizer and raw materials due to DOF's Office Memorandum dated 11th July 2011 which is being contested by the industry. In absence of such directive, revenue would have been higher by Rs. 13.58 cr. for 9'Month'FY12 to stand at Rs. 496.43 cr. (2) Consolidated EBITDA (excluding Retail business) for Q3FY12 grew by 113.8 % YoY to stand at Rs.23.82 cr.. For 9'Month'FY12, consolidated EBITDA (excluding Retail business) grew by 20.8 % to stand at Rs. 52.38 cr.. It is worthwhile to note here that this 20.8 % YoY growth on 9'Monthly basis has came inspite of the non-inclusion of subsidy income for opening stock of SSP fertilizer and raw materials due to DOF's Office Memorandum dated 11th July 2011 which is being contested by the industry. In absence of such directive, EBITDA would have been higher by ~Rs. 9 cr. for 9'Month'FY12 to stand at ~Rs. 61.38 cr. (3) The key highlight for the quarter was the strong performance of company's Agri segment which grew its revenues by 42 % YoY & 23.7 % QoQ. Key offering of the company, viz., SSP fertilizer (Brand – Ramban) seems to have fared exceedingly well in Q3FY12 mainly because of unprecedented price rise of other alternatives like DAP and MOP. With urea price-rise round the corner and no immediate significant respite seen from high-prices of DAP & MOP, SSP demand is projected to rise exponentially to touch 5.9 mn. MT from current 3.6 mn. MT. by 2017 (source – Fitch Fertilizer Sector Report dated 27th Jan. 2012). It is worthwhile to note here that this projected 64 % rise in SSP demand over a 5-year time period, is the highest amongst entire fertilizer pack and this puts Jubilant Industries into a very sweet spot as its SSP brand Ramban is currently the fourth largest SSP fertilizer brand of India. (4) The growth in 'Performance Polymers' segment (which includes Consumer Products-Jivanjor Brand , Food Polymer-SPVA and Latex) continues with a 35.3 % YoY rise in Q3FY12 and a 34.4 % YoY rise in 9'Month'FY12 revenues. Apart from growth in revenues, the more heartening thing about the segment's performance is an exceptional rise in EBITDA which has grown by 71.2 % YoY in Q3FY12 and by 53.1 % YoY on a 9'Month'FY12 basis. EBITDA margins of the segment have touched a historical high figure of 13.94 % --- a sequential QoQ 209 basis points expansion and YoY 292 basis points expansion. (5) The growth in 'Performance Polymers' segment can be largely attributed to better capacity utilisation of the expanded capacities, healthy order-flow in Food Polymer segment as well as successful new product launches in Consumer Products segment. It is worthwhile to note here that company enjoys a strong market-leadership position in each of its operational segment with its Consumer Products segment brand 'Jivanjor' standing second after Pidilite; its Food Polymer segment being the third largest in the world; and, its VP Latex brand being No.1 brand in India. (6) Company has not given Q3FY12 as well as 9'Month'FY12 numbers of Retail business that is to be merged with the company because of pending court approval and the matter being subjudice. *Safe Harbor Statement:* *Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints.* ** *Nothing in this article is, or should be construed as, investment advice.** * ** * * ** ** -- For Anything related with Stock market be Online at http://www.niftyviews.com/ Get free updates on your mobile phone. Sms "Join TSR " and send to 09223492234 FOR TRIAL STOCK/NIFTY/OPTION CALLS You received this message because you are subscribed to Google Group "STOCKRESEARCHER" group. To post to this group, send an email to [email protected] To unsubscribe email [email protected] for more info visit http://groups.google.com/group/STOCKRESEARCHER?hl=en-GB . This is Not a Spam Mail. Disclaimer :- "The opinions expressed by the members on this board are based on their individual experience and perceptions and to share information with other members with the best of intentions to help fellow members in investment decisions as equity investment is a risky venture."
