For 4QFY2011, GDL reported strong revenue growth of 24.7% yoy to `169cr against our estimates of `155cr on account of better performance across segments. Revenue growth was driven by healthy volumes across segments, normalcy of operations at Punjab Conware and strong performance of the rail segment. OPM improved by 658bp yoy to 32.9% on the back of better profitability in the rail business. PAT grew by 38.4% yoy to `35cr vs. our estimate of `25cr. We maintain our earnings estimates for the company and recommend Accumulate on the stock.
Strong growth witnessed across segments: GDL reported strong revenue growth of 24.7% yoy to `169cr for 4QFY2011, led by better capacity utilisation across segments. Revenue from the CFS segment increased by 46.2% yoy to `71cr, while that from the rail segment grew by 8.5% yoy to `84cr. Cold-chain business reported revenue growth of 48.1% yoy to `14cr on account of low base and improved utilisation. Consolidated OPM improved by 658bp yoy to 32.9%, owing to healthy realisation in the CFS segment and a higher share of exim revenue in the rail segment. The rail segment reported PAT of `3.8cr vs. loss of `1.2cr in 4QFY2010. Consequently, the company’s PAT grew by 38.4% yoy to `35cr.
Outlook and valuation: We maintain our FY2012E and FY2013E estimates. Profitability of the rail business at the PAT level and the ability to combat intense completion at JNPT CFS on a sustainable basis will act as positive catalysts for the business’s performance. At the CMP, the stock is trading at P/E of 10.5x and P/BV of 1.7x on FY2013 estimates. We recommend Accumulate on the stock with a target price of `130.
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