>JYOTI STRUCTURES LIMITED (ELARA CAPITAL)

Key Takeaways

■ In line with our expectations Net Sales for FY09 stood at Rs 1,717.1 crores (Elara estimate Rs 1717.3 crores) against Rs 1,370.4 crores in FY08 (up 25%).

■ The order book for the company as at end of FY09 stands at Rs 3,606 croes (2.1x FY09 sales) with new order intakes of Rs570 crores (2.1x FY09 sales) with new order intakes of Rs570 crores in Q4FY09 from PGCIL (Rs 247 crores) and Maharashtra State Electricity Distribution (Rs 323croes). Of the current order book 65% are for tranmission lines, Substations 15% and Rural Electrification 20%. The order book addition was subdued in the H2FY09 but we expect it to improve with order visibility of up to Rs 3,000 crores for the sector in next two months. JSL would also bid for orders worth Rs 1,300 - 1,500 crores internationally for Gulf Jyoti and JSL Africa.

To see full report: JYOTI STRUCTURES LIMITED

>Infosys Technologies (ELARA CAPITAL)

Key Highlights

Infosys today declared full year FY09 and Q4Fy09 results with consolidated income of Rs 21,693 crores (up 30.0% YoY0 and Rs 5,635 crores (down 2.65 QoQ and up 24.1% YoY) respectively. EBITDA of Rs 7,195 crores (up 37.4% YoY) and Rs 1,891 crores (down 6.9% QoQ and up 27.9% YoY) respectively, and PAT of Rs 5,988 crores (up 28.5% YoY0) and Rs 1,613 crores (down 1.7% QoQ and up 29.1% YoY) respectively.

* Negative Growth in Q4 FY09 Revenue was led by volume decline of 0.94% QoQ (decrease of 0.77% in offshore volumes and decrease o1.4% in onsite volumes), currency depreciation (INR/USD) of 4.1% QoQ qand pricing in constant currency terms declined 2.1% QoQ (decline of 3% in offshore and decline of 1% in onsite). The companies expects the pricing decline in the range of 6% - 6.5% in FY10.

* Operating Profit Margins for the full year FY09 improved 180 bps. The margins for Q4 FY09 increased 110 bps YoY but declined by 150 bps QoQ. The improvement was led by reduction in selling & marketing expenses and general & administrative expenses as a percentage of sales to 5.09% and 7.51% in FY09 against 5.49% and 7.97% in FY08.

* PAT margins for the full year FY09 were stable with an improvement of 20 bps. The margins for Q4 FY09 improved 70 bps with higher non-operating income of Rs 252 crores. The management expects a likely fall of 200 bps in the PAT margins. The Eps increases to Rs 104.6 for full year FY09 from Rs 8.15 in FY08, YoY growth of 28.4%.

To see full report: INFOSYS

>Strategy Note (ELARA CAPITAL)

Elara Strategy Note - March 2009

Fundamental View....

The impact of the global financial meltdown is now clearly visible on the healthy of majority of Indian companies with deceleration of both the top line and bottom line. Sales growth for many companies ia at record low levels with negative price and volume growth. The reported profits for the listed companies have declined by almost 20% by almost 20% in Q3 FY09. We expect poor numbers again in Q4 FY09 resulting in a lower than expected growth in FY09.

The revised Sensex earnings (post the constitutent changes in the index) have fallen 13% in Q3 FY09 hinting at poor pricing power with declining volumes.Reported profits are also down 11%. The TTM EPS is down to Rs 704 at the end of Q3 FY09 from Rs 809 as at Q2 FY09.

With expectations of decelerating revenue and profit numbers in Q4 FY09, we expect Sensex earnings to be below Rs 700 for FY09. At 8,600, Sensex is trading 12.3x TTM earnings. Considering the other emerging equity markets in the world, Indian equity markets look expensive on a PE basis. Given the increased correltaion of Indian markets with other global markets, Sensex is likely to see a downward bias.

To see full report: Strategy Note