Ballarpur Inds - Recovery slower than expected - Emkay

* BILT reported Q4FY12 results in line with est. Consol revenues stood at Rs 12.5bn, 5% yoy while consol PAT stood at Rs 379mn, -62% yoy

* Industry has been struggling due to excess supply & higher costs. However, scenario is likely to improve as demand remains sustainable while no new supply is expected; costs pressures have peaked out

* Sustained demand has helped company to raise prices by Rs 1500/mt. Post commissioning of Ballarpur pulp line, BILT will become self-sufficient in pulp & lead to margin improvement

* Reduce earnings by 47% to Rs 2.7 for FY13 to reflect recent restructuring, slow ramp-up of expansion projects. Maintain Accumulate with target price of Rs 27 (previous Rs 35)

Source : Equity Bulls

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