Views on Jyoti Structures 3QFY2014 results - Angel Broking

Mr. Amit Patil (Research Analyst – Capital Goods, Angel Broking) on Jyoti Structures 3QFY2014 results:

"For 3QFY2014, Jyoti Structures top-line and bottom-line performance were below our estimates. Top-line grew by 6.9% yoy to Rs. 663cr (our estimate of Rs. 698cr). On the operating front, EBITDA came in flat yoy at Rs. 62cr (our estimate of Rs. 66cr) while OPM contracted by 73bp yoy to 9.4%. Interest cost remains at elevated levels, increasing 4.0% yoy to Rs. 40cr. The delay in payments has elongated working capital cycle, leading to higher interest due to working capital borrowings. Consequently, the company reported sluggish growth of 3.5% yoy in net profit to Rs. 14cr (our estimate of Rs. 16cr). We maintain our Neutral recommendation on the stock."

Source : Equity Bulls

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