Independent Equity Research Other Agricultural Products BSE Scrip Code: 524226 CMP Rs. 20.5 1 July 9, 2012 Update for Quarter and Year ended 31 st March, 2012 Decline in revenue in Q4FY12 For Q4FY12 (refers to period January 1, 2012 to March 31, 2012) Gujarat Ambuja Exports Ltd. (GAEL) reported a top-line decline of 8.3 per cent y-o-y to Rs.561.2 crore compared with Rs.625.6 crore in Q4FY11. On annual basis, however, the top line increased marginally to Rs.2,096.3 crore in FY12 from Rs..2,086.3 crore in FY11. Margins too exhibited a drop GAEL exhibited no improvement in operating margins during the Q4FY12. The EBITDA margins for the company remained flat with a negative bias at 6.28 per cent in Q4FY12 as against 6.96 per cent in Q4FY11. The PAT margins also dipped to 3.1 per cent in Q4FY12 as against 4.41 per cent in Q4FY11. On an annual basis too, operating margins have been lower mainly due to Processing. GAEL reported an EPS of Rs.1.25 per share in Q4FY12 as against Rs.2 per share in Q4FY11 down 37.2 per cent. On an annual basis, the EPS performance was down 46 per cent at Rs.3.6 per share as against Rs.6.6 per share in FY11. Valuations GAEL is currently trading at trailing P/E multiple of 5.7 times Quarterly Performance Snapshot (Rs Crore) Q4 FY12 Q4 FY11 Net Operating Income 561.2 625.6-10.3% EBITDA 35.3 43.6-19.0% PAT 17.3 27.6-37.3% EPS* (diluted) (Rs.) 1.3 2.0-37.2% EBITDA Margin (%) 6.28% 6.96% PAT Margins (%) 3.08% 4.41% * Calculated on Current Face Value of Rs. 2/- per share 1 Initiative of the BSE Investors Protection Fund
CARE Revenue decline in Q4FY12; flat on annual basis GAEL s performance was subdued in Q4FY12. The total income for the quarter was lower at Rs.561.2 crore in Q4FY12 as against Rs.625.6 crore in the Q4FY11 down 10.3 per cent y-o-y. The agro processing segment, which is the key segment for the company exhibited a decline in revenue by 12.9 per cent. Maize processing and Processing segments contained the drop in revenue to some extent. On an annual basis, however, the segment has exhibited an increase of 9 per cent in top-line on account of a much better performance in the previous three quarters of FY12. GAEL reported revenue of Rs.1,444 crore from the segment for FY12 as against Rs.1324.3 crore in FY11. GAEL: Snapshot of Interim Financial Performance (Rs Crore) Total Income EBITDA PAT EBITDA Margin (%) PAT Margins (%) Q4 FY12 Q4 FY11 FY12 FY11 561.2 625.6-10.3% 2,096.3 2,086.3 0.5% 35.3 43.6-19.0% 111.3 156.2-28.8% 17.3 27.6-37.3% 49.7 93.2-46.7% 6.3% 7.0% 5.3% 7.5% 3.1% 4.4% 2.4% 4.5% Margins witness decline in Q4FY12 mainly due to CYP segments GAEL s EBITDA for Q4FY12 dipped from around 7 per cent in Q4FY11 to 6.3 per cent in Q4FY12. On an annual basis too, the margins were lower. Although the revenue decline was driven by the segment, PBIT margins for the same remained flat. On the other hand, Processing divisions which helped contain revenue growth reported a negative PBIT. The PAT margins for Q4FY12 too witnessed a decline and were at 3.1 per cent as against 4.4 per cent in Q4FY11. 2 Initiative of the BSE Investors Protection Fund
GAEL: Segmental Performance (Rs Crore) Revenue Q4 FY12 Q4 FY11 FY12 FY11 Division 403.0 462.8-12.9% 1,444.0 1,324.3 9.0% Division 39.5 32.1 23.1% 223.1 209.1 6.7% Windmill 1.7 1.3 29.2% 7.6 6.6 14.6% Maizeproce 121.4 120.3 0.9% 439.4 401.0 9.6% PBIT Division 9.0 11.7-23.0% 61.2 48.3 26.6% Division (5.8) 0.6-1058.3% (26.0) 11.3-330.3% Windmill 0.9 0.5 67.9% 4.5 3.5 27.0% Maizeproce 14.1 27.7-49.2% 55.2 81.1-31.9% PBIT Margins (%) Division 2.2% 2.5% 4.2% 3.6% Division NM 1.9% NM 5.4% Windmill 53.0% 40.8% 59.2% 53.4% Drop in profits and EPS for the year GAEL reported a significant drop in earnings in FY12 a decline of 46.7 per cent at Rs.49.7 crore as against Rs.93.2 crore in FY11. This resulted in EPS dropping to Rs.3.6 per share in FY12 from Rs.6.6 per share in FY11. 3 Initiative of the BSE Investors Protection Fund
CARE Quarterly financial performance (Standalone) (Rs crore) Q4 FY12 Q4 FY11 Q3FY12 (q-o-q) Total income 561.2 625.6-10.3% 700.6-19.9% EBITDA 35.3 43.6-19.0% 38.8-9.0% Depreciation and amortisation 7.3 6.8 6.4% 7.4-1.9% EBIT 28.0 36.7-23.8% 31.4-10.7% Interest 7.4 4.6 60.8% 6.0 22.3% PBT 20.6 32.2-35.8% 25.3-18.5% Reported PAT 17.3 27.6-37.3% 19.0-9.2% Fully Diluted Earnings Per Share* (Rs.) 1.25 1.99-37.2% 1.38 EBITDA Margin (%) 6.28% 6.96% 5.53% PAT Margin (%) 3.08% 4.41% 2.72% Annual financial performance (Standalone) # (Rs crore) FY12 FY11 Total income 2,096.3 2,086.3 0.5% EBITDA 111.3 156.2-28.8% Depreciation and amortisation 29.9 25.0 19.2% EBIT 81.4 131.1-37.9% Interest 20.9 12.9 61.7% PBT 60.5 118.2-48.8% Reported PAT 49.7 93.2-46.7% Fully Diluted Earnings Per Share* (Rs.) 3.6 6.6-45.9% EBITDA margin 5.31% 7.49% PAT margin 2.37% 4.47% # Based on abridged financials 4 Initiative of the BSE Investors Protection Fund
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