Management has guided for pain to continue until FY19 in the US markets and some delays in launches but is confident on continuous launches from India/Somerset with a focus on 30+ launches in FY18/19E to support the base business. India business to grow ahead of IPM, however, pain in Japan on the back of new norms. Lupin also has a strong NCE pipeline but...
BAF reported Q4FY17 PAT of Rs 4.5 bn (+43% YoY), below our estimate, dragged by one-time accelerated provision of Rs 700 mn. Management attributed this to demonetization and expects ~Rs 300 mn more provisionsin coming quarters.AUM growth recovered and was strong at 36% YoY.
Bajaj Finserv reported Q4FY17 PAT of Rs 5.4 bn (+3% YoY)on strong show by Bajaj Finance (PAT up 43% YoY, contributing ~84% to total profits).Life Insurance business posted weak performance new business premium was down 6% YoY at Rs 11.4 bn in a seasonally important quarter.
FY17sales grew 25% YoY to Rs 51.1 bn,EBITDA was up24% at Rs 9.9 bn and EBITDA margin was flat at 19.5%. PAT was up 63% YoY at ~Rs 3.6bn. The company is delivering well on its strategy of executing projects ahead of schedule and booked early completion bonus of Rs 1.06 bn during the year.
Best-placed lubricant player:Gulf has progressed from a B2B player to a premium lubes company over past 7-8 years. Balanced approach to B2B and B2C segments has led to strong volume growth at firm margin.
Q4 ahead of expectations:Net sales, EBITDA and adj. PAT grew 7%, 12% and 8%. FMCG volumes grew 4% YoY, with restocking impact of 100-150 bps. OPM expanded 104 bpsYoY to 20.1% YoY due to decline in staff costs (-105 bps) and lower A&P; (-87 bps).
EBITDA down 17% YoY at Rs 716 mn was below consensus and our estimates. Average realization was broadly flat QoQ at Rs 3,525/ton, as cement price rise in Northern region was offset by weak prices in Eastern region.
Strong quarter: Q4FY17 consolidated EBITDA was up 73% YoY at Rs32bn, in line with our estimate. The rise was mainly due to: (1) higher volumes as the company pushed export sales to counter muted domestic demand,(2) strong realization due to upswing in steel prices
Net sales, EBITDA and Adj PAT grew 4%, -4% and 35%. Overall volumes grew 5.1% but ex-HI, the growth was higher at9.7%.Personal wash and fabric care posted decent growth of 23% and 8% (given higher share of south). Dish wash recorded muted sales growth at 4%.
Deal pipeline in product business remains healthy especially from US geography.Pipeline has good Tier-1 opportunities.High-growth engines includedigital, analytics, core banking (both for OBP, Flexcube), compliance and integration services.
Likely flat profitability in FY18: Management guided for 10% revenue growth, flat EBITDA margin and 20% tax rate (vs. 9% in FY17), which will lead to flat EPS YoY. However, in FY17, PI delivered 370 bps expansion in EBITDA margin vs. its earlier guidance of 150-200 bps.
Steel outlook: Chinese steel price has corrected from USD 500/t to 420/t in last 2 months due to fall in iron ore and spot coking coal prices. Domestic steel prices have also corrected by 3-5% due to weak demand and falling RM prices.
Karur Vysya Bank (KVB) reported strong profits of Rs.218 cr which grew by 58% YoY (up 88% QoQ) due to profit on sale of investments of Rs.78 cr. Loan growth improved to 5% YoY in FY17 as against 2% YoY in 9MFY17 led by growth in commercial book (up 13.6% YoY).
Revenue growth of 12.5% was better than expected while continued aggressive marketing spends led to EBITDA miss of 10%. Legacy stations registered revenue growth of 6.2% yoy while new stations helped company recording 18.6% yoy growth. Radio business continued to see impact of demonetization in Q4FY17 while ENIL performed was better than industry, implying market share gain. Continued marketing...
Company expects America geography to grow at a healthy rate as Columbia and Mexico have stabilize & seeing strong growth. In EAP recent traction in oral care and continuation of healthy growth in non-oral care should lead to high single digit growth. India business...
Dish TV once again disappointed with meaningful deterioration in subscription revenues, which management attributed to heightened impact of demonetization. Subscription revenue declined 10% qoq, impacted by ARPU decline of 11% qoq. Down trading to lower packs and HD to SD platform accelerated in 4Q, resulting to sharp decline in ARPU. Dish TV's performance was substantially weaker than Airtel DTH in terms of both ARPU and subscriber additions. One-off income restricted EBITDA decline. demonetization impact, down trading by subscribers has been the key concern from last few quarters. Subscriber addition guidance for FY18 is ~1.2mn vs 1mn added in FY17....