The company reported an adjusted PAT of Rs1,225 million for Q4FY08 as compared to Rs551million for Q3FY08. PAT margins for the quarter were 38% - an increase of 1340 bps sequentially mainly due to lower taxation as the company claimed S.80 IA benefits for some of its projects.
Net sales for during the quarter were at Rs3,208 million as compared to Rs1,915 million for the full year FY07. Since the company was listed in April FY07, the numbers for the corresponding quarters are not available.
However, sequentially, net sales increased by 43%. The sales for FY08 were below our estimates by 16%.
At the CMP of Rs410, the stock trades at 6.7x FY09E diluted earnings. We maintain our ACCUMULATE rating on the stock with a price target of Rs640.