Results Update Date Jan 22, 2008
Key data
Face Value 10 NSE Code KLG
52 WEEK NSE High /Low : 1022 /260
Avg Volume (no of shares) 1956703
Shareholding Pattern 31.12.07
Foreign 7.79% Institutions 2.16% Non Promoter Corp. Hold. 22.83%
Promoters 25.74% Public & Others 41.48%
Results Highlights
• The company has posted its result for Q3FY07. KLG Systel reported an increase in net income by124.49% in Q3FY07.
• As per our expectations the major contributor to the revenues of the company was the power
system and solutions (PSS) with 70%. Going forward, the PSS group would not only add to the
top-line but also to bottom line.
• The company has a strong order book of about Rs 450 crore and most of it is in PSS domain.
• The company also posted net profit of 17.14 crore. Up by 36.35 % versus Q2FY08 and a growth of 141.07% over Q3FY07 of Rs 7.11 crore.
• The operating profits were under pressure in this quarter due to manufacturing costs associated with the new product developed i.e. connectgia.com. The operating profit margins came down to 23.28% due to increased manufacturing expenditure.
• The institution holding have increased in this quarter from 0.26% in Q1FY08 to 2.16% in Q3FY08.
• The company has posted its result for Q3FY07. KLG Systel reported an increase in net income by124.49% in Q3FY07.
• As per our expectations the major contributor to the revenues of the company was the power
system and solutions (PSS) with 70%. Going forward, the PSS group would not only add to the
top-line but also to bottom line.
• The company has a strong order book of about Rs 450 crore and most of it is in PSS domain.
• The company also posted net profit of 17.14 crore. Up by 36.35 % versus Q2FY08 and a growth of 141.07% over Q3FY07 of Rs 7.11 crore.
• The operating profits were under pressure in this quarter due to manufacturing costs associated with the new product developed i.e. connectgia.com. The operating profit margins came down to 23.28% due to increased manufacturing expenditure.
• The institution holding have increased in this quarter from 0.26% in Q1FY08 to 2.16% in Q3FY08.
Recommendation
The company results came in line with our expectations. We believe that the company would continue to perform well in the future. On the back of strong order book we have revised the company top line to Rs 288 crores for FY08. Looking at the company growth, in both top-line and bottom line, we maintain a ‘hold’ on the counter with our target of Rs1300 in Six months time.
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