Jubilant Industries -FY12e 850 cr. Revenues -US$ 3 bn. Group Backing-World-Leadership

[maheshi]

Re: Jubilant Industries -FY12e 850 cr. Revenues -US$ 3 bn. Group Backing-World-Leader

In anticipation of huge demand for SSP fertilizer, Coromandel International has joined the league of other major players, to set-up new SSP Plant..



Coromandel International Limited, part of the Rs. 17,000 crore Murugappa Group, has announced plans for setting up a Greenfield Single Super Phosphate Plat at Punjab with an estimated Rs. 116 crore.

The plant has been finalised in the light of the ballooning prices of phosphate fertilisers and the 800 tonne per day plant including 400 TPD granulator plant is expected to be ready within two years, Coromandel Fertilisers Chairman A. Vellayan said.

 

[maheshi]

Re: Jubilant Industries -FY12e 850 cr. Revenues -US$ 3 bn. Group Backing-World-Leader

Jubilant Industries Board will meet on 2nd November 2011 to consider Q2FY12 results..

Rgds.

 

[maheshi]

Re: Jubilant Industries -FY12e 850 cr. Revenues -US$ 3 bn. Group Backing-World-Leader

Jubilant Industries today announced its Q2FY12 results.... Results beat the upper range of our estimates by ~8 % ....



Total Revenue = INR 161.25 cr. (Our estimate – 134-148 cr.)



EBITDA = INR 14.83 cr. (Our estimate – 12.1 – 13.8 cr.)





Breakup of Revenues – Segmentwise





Agri Input = INR 73.15 cr. (Our estimate – 58-65 cr.)



Performance Polymers (CP, Latex & Food Polymer) = INR 87.27 cr. (Our estimate – 76-83 cr.)



My Initial Take post Q2FY12 numbers :

Company's performance polymers business (which includes Consumer Products, Food Polymer & Latex) is growing robustly while Agri-Input segment is proving to be a steady cash generator as anticipated.....

Agri segment would have even performed excellently especially on EBITDA front provided Govt.'s favourable ruling had come on subsidy front which is still under consideration and decision is expected shortly.... In case of favourable ruling, PAT for H1FY12 would increase by ~9 cr. which will add to the robust cash generated by Agri division.... It is worthwhile to note here that while majors like Coromandel and Khaitan have published their Q2Fy12 results without making provision for adverse ruling thereby including the revised subsidy figures into the results, Jubilant has decided otherwise and not included the revised subsidy figures into H1FY12 results signifying great amount of transparency adopted in accounts....

The scheme of merger of retail division is already filed on 14th September 2011 with Allahabad High Court and approval should be received by December 2011....

For Q2FY12, Jubilant Industries has attained EPS of Rs. 12.46 while for H1FY12 company has attained an EPS of Rs. 24.33....On full year basis, company should easily attain an EPS of Rs. 40 + for FY12 which means that at current market price of Rs. 190, its trading at a p/e multiple of just 4.75, forget here the mcap-to-sales which is dismally low at 0.26...

Balance Sheet is very strong with a debt-free status and cash of Rs. 39.25 cr. on books as at 30th September 2011 in addition to parked money in liquid funds amounting to Rs. 13.18 cr. which simply means Hard Cash & Cash Equivalents of Rs. 52.43 cr. on books as at the end of H1FY12.....


With :
Rs. 66 per share as cash on books,

a 550 cr. revenue of core businesses which are themselves expected to grow by minimum 20 % for atleast next 3 years

~Rs. 370 cr. + revenues generating Retail business to be merged with the listed entity,

: make Jubilant Industries grossly undervalued stock on the bourses and it can't trade for too long at a forward p/e of just 4.75 and a mcap-to-sales of just 0.26..

Views Invited and feel free to ask any queries...

Rgds.

 

[maheshi]

Re: Jubilant Industries -FY12e 850 cr. Revenues -US$ 3 bn. Group Backing-World-Leader

The final scheme of merger is now out and shareholders meet is to be held on 2nd dec, 2011 for its approval....

Post scheme, Jubilant Industries on a consolidated basis is likely to have (as per my rough calculations based on data provided in the scheme) :



an equity capital of 11.84 cr. (1.184 cr. shares of FV 10)

with promoters stake at 64.5 %,



a book value of Rs. 77,



Enterprise Value at current mcap of Rs. 375 cr.,



debt-to-equity at 1.99,



Fixed Assets worth Rs. 193 cr.



Cash & Cash Equivalents worth Rs. 78 cr.



Debt of Rs. 182 cr.



With regards to accumulated losses of retail venture, prima-facie from scheme it seems that its not transferred to listed entity which is extremely positive for shareholders of JIL......However, a goodwill amount of Rs. 123.77 cr. is capitalised on account of merger which will, in all probability, get amortised over a period of 5 years which will mean an additional depreciation worth Rs. 24.75 cr. each year for next five years starting from current FY12.

It seems that JIL shares are valued at Rs. 234 for allotment of 0.3835 cr. shares as consideration for retail business merger.

Overall entity, post merger, seems healthy with FY12 revenues most likely to cross Rs. 1000 cr. mark on a consolidated basis.

Rgds.

 

[maheshi]

Re: Jubilant Industries -FY12e 850 cr. Revenues -US$ 3 bn. Group Backing-World-Leader

Link to Scheme of Merger --- Meeting on 2nd December 2011

http://www.bseindia.com/xml-data/corpfiling/AttachLive/Jubilant_Industries_Ltd_211111.pdf

 

[maheshi]

Re: Jubilant Industries -FY12e 850 cr. Revenues -US$ 3 bn. Group Backing-World-Leader

Listed Retail players become even more expensive on the back of clearance of fdi in m.b.retail which makes the valuations of Jubilant Industries even more compelling once merger is through next week..

Rgds.

 

[maheshi]

Re: Jubilant Industries -FY12e 850 cr. Revenues -US$ 3 bn. Group Backing-World-Leader

Outcome of Meeting

Jubilant Industries Ltd has informed BSE that in terms of the order of the Hon'ble High Court of Judicature at Allahabad, Court Convened Meetings of Equity Shareholders and Creditors of Jubilant Industries Limited (JIL), Enpro Oil Private Limited (EOPL) & Jubilant Agri and Consumer Products Limited (JACPL) were held as per following schedule:

1. Meeting of Unsecured Creditors of JIL on December 02, 2011 at 11.00 am at the registered office at Bhartiagram, Gajraula - 244 223, District Jyotiba Phoolay Nagar, U.P.

2. Meeting of Secured Creditors of JIL on December 02, 2011 at 2.00 pm at the registered office at Bhartiagram, Gajraula - 244 223, District Jyotiba Phoolay Nagar, U.P.

3. Meeting of Equity Shareholders of JIL on December 02, 2011 at 4.00 pm at the registered office at Bhartiagram, Gajraula - 244 223, District Jyotiba Phoolay Nagar, U.P.

4. Meeting of Secured Creditors of EOPL on December 03, 2011 at 11.00 am at the registered office at Plot
1A, Sector 16A, Noida - 201 301.

5. Meeting of Unsecured Creditors of EOPL on December 03, 2011 at 1.00 pm at the registered office at Plot
1A, Sector 16A, Noida - 201 301.

6. Meeting of Equity Shareholders of EOPL on December 04, 2011 at 11.00 am at the registered office at Plot
1A, Sector 16A, Noida - 201 301.

7. Meeting of Equity Shareholders of JACPL on December 04, 2011 at 1.00 pm at the registered office at Plot
1A, Sector 16A, Institutional Area, Noida - 201 301.

In their respective meetings as mentioned above, the Equity Shareholders and Creditors have unanimously approved the Scheme of Arrangement among Enpro Oil Private Limited, Jubilant Industries Limited and Jubilant Agri and Consumer Products Limited pursuant to the provisions of Section 391 to 394 of the Companies Act, 1956.

 

[maheshi]

Re: Jubilant Industries -FY12e 850 cr. Revenues -US$ 3 bn. Group Backing-World-Leader

Link to 14-page Event Update report post merger approval of Retail Business :

http://www.scribd.com/doc/75419915


Contents of the Update :

Consolidated Structure of JIL post Merger & Demerger

Overview of each of the Operational Segments


Past 3 Years' Revenue of Each Segment - IP
- ACP
- Retail
- Consolidated


Retail Business EBITDAR & EBITDA Loss Margins since Inception

Critical Financial & Valuation Ratios of JIL as Consolidated Entity (post merger) as at FY11

Scenario post-merger of Retail Business

 

[maheshi]

Re: Jubilant Industries -FY12e 850 cr. Revenues -US$ 3 bn. Group Backing-World-Leader

Jubilant Bhartia Group's Retail Mall-cum-Hypermarket business started with the launch of first store under the brand 'Total' of 1,33,094 sq.ft. area in the year 2006 (December 2006) at Mysore Road, Bangalore. After that 2nd store was launched in July 2007, 3rd in February 2008, 4th in November 2008 and the latest 5th store in July 2011.

Since Retail businesses are marred by the presence of operational losses, it is prudent to assess a retail business by its EBITDAR Margins (R = Rent) as well as EBITDA level (Loss) margins wherein a break-even can be gauged by the extent of reduction in loss margins w.r.t. revenues. On this count, given below are the EBITDAR as well as EBITDA loss margins achieved by JIL's Retail business since inception. Since the first store was opened in December 2006, the inception financial year is FY08.






FY11


FY10


FY09


FY08

EBITDAR Margin

(+) 6.8 %
(+) 4.1 %
(-) 3.8 %
(-) 15.4 %
EBITDA Loss Margin
12.3 %
17.2 %
35.2 %
35.7 %

 

[maheshi]

Re: Jubilant Industries -FY12e 850 cr. Revenues -US$ 3 bn. Group Backing-World-Leader

Past 3 Years Revenue Performance of JIL as Consolidated
Entity (post merger) as at FY11

( fig. In ` cr. )

FY11


FY10


FY09

Industrial Products (IP)
141.5
121.4
113.5
Agri & Consumer Products (ACP)
378.8
251.3
355.2
Retail Mall-cum-Hypermarket (Retail)
314.4
281.8
166.3




Total Consolidated Revenue
834.7
654.5
635