Solid FY10. HSIL’s profit was above our estimates, led by higher EBITDA and lower-than-expected tax and interest. Robust revenue growth in both the divisions and margin expansion bodes well for HSIL. Reiterate Buy.

􀂄 Sanitaryware segment posts record margins. The sanitaryware division’s revenue grew 32% yoy on the back of a better product mix and higher realizations. The division recorded the highest ever EBIT margins in the last 15 quarters due to improved efficiencies
and higher capacity utilisation. EBIT margins for the division stood at 21.3% in 4FY10 (up 210bp yoy and 250bp qoq)...

To read the full research report you can refer to:
http://www.dsij.in/productattachment...ation/HSIL.pdf

Source: Dalal Street Investment Journal
Dalal Street Investment Journal