Results Update
Key data
Face Value :2 NSE Code KPIT
52 WEEK NSE High/Low : 181.9/ 69 Avg Volume (no of shares) 11008168
Shareholding Pattern 30.09.07
Foreign 27.42% Institutions 18.82%
Non Promoter Corp. Hold. 9.7% Promoters 25.14% Public & Others 18.92%
Non Promoter Corp. Hold. 9.7% Promoters 25.14% Public & Others 18.92%
Background
Recommended at Rs 122.5 on 22nd Dec 07 with a target of Rs 155.
Company highlights in Q3FY08
The company has fallen in line with our expectations on the revenue front. The company reported consolidated sales of 151.2 crores and PAT of 14.13 crores.
• KPIT Cummins also reported a growth of 15.8% in automotive electronics and Global Business
solutions grew by 31.7 during Q3FY08.
• The company’s hike in bill rate by 12-15% for new contracts comes into effect from the beginning in this quarter January 2008.
• Revenues in US$ terms grew sequentially by 4.30% and 42.11% y-o-y.
• Average realization during the quarter was Rs. 40.74 per US$ as against Rs. 41.95 per US$ during the previous quarter, lower by 9.16% compared to the average realization in Q3FY08
• KPIT Cummins improved its gross profit margins by 192 basis points. KPIT Cummins was able to maintain its EBITDA at 15.73% and profit margins at 9.35%.
• Volume increased by 35% YoY.
• Facility to seat 365 people in Bangalore completed.
• We estimate growth in revenue and profit in the last quarter. The company has shown great
promise in the niche line of business with more additions to star clients that stands at 23 as on
Q3FY08. The total client base also increased to 106 in Q3FY08.
The company has fallen in line with our expectations on the revenue front. The company reported consolidated sales of 151.2 crores and PAT of 14.13 crores.
• KPIT Cummins also reported a growth of 15.8% in automotive electronics and Global Business
solutions grew by 31.7 during Q3FY08.
• The company’s hike in bill rate by 12-15% for new contracts comes into effect from the beginning in this quarter January 2008.
• Revenues in US$ terms grew sequentially by 4.30% and 42.11% y-o-y.
• Average realization during the quarter was Rs. 40.74 per US$ as against Rs. 41.95 per US$ during the previous quarter, lower by 9.16% compared to the average realization in Q3FY08
• KPIT Cummins improved its gross profit margins by 192 basis points. KPIT Cummins was able to maintain its EBITDA at 15.73% and profit margins at 9.35%.
• Volume increased by 35% YoY.
• Facility to seat 365 people in Bangalore completed.
• We estimate growth in revenue and profit in the last quarter. The company has shown great
promise in the niche line of business with more additions to star clients that stands at 23 as on
Q3FY08. The total client base also increased to 106 in Q3FY08.
Latest Updates on KPIT Cummins
• KPIT Cummins plans to setup a new development facility in Pune costing Rs 80 crore.
• The company is in the process of developing onboard bi-fuel management systems for hybrid cars and unmanned tractors.
Recommendation
Contrary to the general sentiment against the IT; we maintain a Hold on the counter with a target of Rs 155.
Noida Toll Bridge : Results Update
Key data
Face Value : 10 NSE Code NOIDATOLL
52 WEEK NSE High / Low : 85.20 / 22.20
Shareholding Pattern30.09.07
Foreign 22.75 (%) Institutions 7.7(%) Non Promoter Corp. 12.8(%)
Government 5.37(%) Promoters 26.37(%) Public & Others 25.02(%)
Face Value : 10 NSE Code NOIDATOLL
52 WEEK NSE High / Low : 85.20 / 22.20
Shareholding Pattern30.09.07
Foreign 22.75 (%) Institutions 7.7(%) Non Promoter Corp. 12.8(%)
Government 5.37(%) Promoters 26.37(%) Public & Others 25.02(%)
Background
Noida Toll Bridge was recommended for purchase @ Rs 33 in October 2007 and partial profit
booking was advised @ Rs 82.50 in January 2008.
The company operates a toll bridge across river Yamuna which connects Noida to South Delhi.
Results Highlights
The results are in line with expectations. We are optimistic that the numbers at the end of the yearshould be would be better but we are maintaining the projections. We expect the company to give numbers better than our projections.
Recent Development
• The company has announced completion of Mayur Vihar Link which isexpected to increase the average daily traffic by 10000 vehicles.
• Taj expressway connecting Delhi to Agra has been awarded. Those who want touse the expressway would find it easier to reach the flyway thru the bridge. It isbeneficial for the company in the long run.
• Taj expressway connecting Delhi to Agra has been awarded. Those who want touse the expressway would find it easier to reach the flyway thru the bridge. It isbeneficial for the company in the long run.
Valuation and Recommendation
The factors for recommending the stock remain unchanged. At the current rate of Rs
55.45, it is recommended that share should be held.
55.45, it is recommended that share should be held.
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