HSIL - Hindustan Sanitary
: Q2 FY13 : Building products grew steadily; Container glass faces bottleneck
Reco : Buy Cmp : 116 Target : 149
Hindustan Sanitary (HSIL) reported net revenue of Rs 342 cr (Up 15% YoY & 7% QoQ). Operating profit stood at Rs 67 cr (Up 22% YoY & 18% QoQ) with margin at 19.7%. Net profit stood at Rs 21 cr (Down 11% YoY; Up 12% QoQ).
Highlights of Q2FY13 result -
Building Product Division: Revenue of Rs 183 cr (Up 26% YoY & 15% QoQ) contributed by 12% increase in product volume & 14% price hike + change in product mix YoY; EBIT stood at Rs 34 cr (Up 17% YoY & 14% QoQ) with margin of 18.6%(vs. 20.2% YoY; 18.7% QoQ). Capacity utilization stood at 92% for the quarter and is expected to remain at these levels in 2H FY13
Container Glass Division:
Revenue of Rs 166 cr (Up 8% YoY & 1% QoQ) contributed by ~2% decrease in volume but increase in realization by 10% YoY; EBIT at Rs 18 cr (Down 7% YoY; Up 12% QoQ) with margin of 10.9%(vs. 12.6% YoY; 9.8% QoQ). Extended monsoon lowered the volume off-take; resulting in low capacity utilization levels (84% vs over 90% YoY & QoQ) hence inventory pile Up is seen.
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