The Tata Power Company Limited generates and supplies electricity. The Company constructs and operates independent power plants, as well as specializes in transmission and distribution of electricity. It delivers its...

Revenue declined 6.1% y-o-y to Rs 8,613 cr in Q1FY20. Petronet LNG Limited reported 9.6% y-o-y increase in EBITDA in Q1FY20 to reach Rs 1,023.9 cr. EBITDA margin improved by 170bps y-o-y to 11.9% due to high margin product mix and lower costs. Operating profit for Q1FY20 has remained constant at Rs. 834 cr. primarily because of decrease in cost of sales, which stood at Rs 7,418 cr. (vs. Rs. 8,084 cr. in Q1FY19). During Q1FY20, Dahej terminal had capacity utilization of around 112% and processed around 217 TBTUs of LNG against 199 TBTUs in Q1FY20 and 214 TBTUs in Q4YFY19. Overall LNG volume processed by the company in the current quarter is at 226 TBTUs...

Endurance Technologies Ltd is one of India's leading automotive component manufacturers with operations in India and Europe. It mainly caters to twoand three-wheeler OEMs in India and supplies aluminium casting products to four-wheeler OEMs in Europe. The company operates 16 plants in India, 9...

SH Kelkar & Co Ltd (SHK) posted revenues of INR2,744mn with 16.1% YoY increase which was above our estimate of INR2,589mn. Revenue growth was mainly driven by new product and brand launch and value & volume growth in existing products. Overall domestic business grew by 9.8% (YoY) and Exports shown growth of 25.4%(YoY). Despite 97bps decline in gross margin due to change in product mix, EBITDA margin improved by 297bps, was 234bps higher than our estimate. Surge in margin due to adoption of Ind AS 116for lease this led to lower rent exp by INR39mn. Adj EBITDA margin were up by 154bps. Adj. PAT came below our estimate at INR185mn (est INR235mn) due to higher finance and depreciation cost (Ind As adjustment). As per management, over the last...

Gillette India's (Gillette) 4QFY19 operating and net profit performance is below expectations largely on account of increased marketing investment, which is up nearly 42% YoY. Topline performance is slightly above expectation, largely driven by the Oral Care business, which grew by 42% YoY. In the Oral Care business, the company continues to demonstrate strong capability and its product innovations such as Cavity Defense Black' and Neem' infused toothbrushes have been received extremely well in the market. While the Grooming business witnessed improvement in growth rate to around 7% YoY, it is still below expectation. In our opinion, the company still needs to build on the brand equity of Mach 3 Start, which can help drive growth...

We maintain our Hold rating on the stock with a target price of Rs. 635 based on 29x FY21E adjusted EPS. Margins contract as costs increase Q1FY20 revenue was Rs. 2,647cr (up 24.0% YoY) against Rs. 2,134cr. for the same period last year. EBITDA margin declined 39bps YoY due to an increase in cost of sales (up 26.7% YoY), marginally offset by a decrease in employee benefit expenses (down 8.0% YoY). Reported PAT reduced 10.2% YoY to Rs. 165cr, as the VRS scheme...

Given strong quarter and a positive outlook across all businesses, we maintain our ACCUMULATE rating on the stock with a target price of Rs. 1,167 based on ~51x FY21E adj. EPS. Revenue growth across all businesses Q1FY20 revenue rose 15.7% YoY to Rs. 5,151cr with strong performance across all businesses. Jewellery contributed the most to the overall revenue (+14.3% YoY to Rs. 4,164cr despite higher gold prices and 2.5% consumer duty imposed on gold). Watches segment revenue grew 20.1% YoY to Rs. 716cr primarily driven by large institutional...

Net interest income improved 26.8% YoY, partly offset by weakness in other income, which declined 11.1% YoY. On improving asset quality and strong profitability, we maintain our...

HCL Technologies Limited provides software development, business process outsourcing, information technology and infrastructure services. The company is spread across 44 countries with 143,900 employees and...

New capacity ready, support volume & realisation Apex Frozen Foods Ltd (Apex) is an integrated producer and exporter of processed shrimps in Andhra Pradesh. Q1FY20 revenue de-grew by 7%YoY. Adjusting for a one-time item in Q1FY19, decline was 2.8%. Volumes declined by 2%YoY. Gross margin declined by 1150bps due to the procurement of raw material at a relatively higher price on account of pending order execution of the previous quarters....

Affle (India) Ltd is a global ad tech solution provider with two business segments: Consumer Platform (~97% of sales as of FY19) and Enterprise Platform. The company offers a variety of mobile-based marketing commerce solutions including mobile advertising, fraud detection, rich media and video, data management, audience intelligence and ad monetization. Affle caters the needs of B2C companies across various industries including e-commerce, fin-tech,...

22 August 2019 the fourth straight quarter of extremely healthy sales growth. Even adjusted for the GST effect on sanitary napkins (which optically inflates sales but has an adverse effect on operating costs), comparable growth stands healthy at 12% YoY for 4QFY19 and 14% YoY for FY19. EBITDA, however, was down 210bp YoY (off an extremely high base of 4QFY18), but other expenses were up by 330bp YoY. The sharp increase in other expenses (for which no explanations were provided) is surprising, given that it too has come off a very high base (+630bp YoY in 4QFY18). Net sales were up by 20% to INR29.5b. EBITDA declined 3% to INR6.1b, while adj. Margins have remained volatile over the past few years, but sales growth has revived significantly due to distribution expansion and sharp ad spends in the preceding quarters. While the structural growth opportunity in the feminine hygiene segment (~70% of sales) remains very promising, valuations of 52.

Sector: Textile /Mid-Cap | Earnings Update 1QFY20 Background: Arvind Ltd is the flagship company of the Lalbhai Group, established in 1931. The company manufactures and sells about 300 million meters (mn mtr) of fabrics (denim, woven, knit, etc) and over 34 mn pieces of garments (FY19). In Advance materials business, the company is catering to various segments under this division. This includes human protection products such as firefighting jackets, bullet proof jackets, etc. The company across its other subsidiary Arvind fashions Ltd has...

The latest union budget removed the tax arbitrage between dividend payout and buyback of shares, thus, limiting the extent of benefits. To start with, there is no major tax arbitrage on share buyback v/s the dividend payout option now. The latest union budget proposed 20% tax on buyback of shares, thus doing away with the tax arbitrage between dividend payout and buyback of shares.

August MPC Minutes: Focus on growth to continue. BDE: Buffeted by headwinds

Anup Engineering is promoted by Mr. Sanjay Lalbhai and his family (Promoter of Arvind Ltd). Anup was earlier a subsidiary of Arvind Ltd and recently got demerged. Anup is engaged in design and fabrication of process plant equipment which mainly includes heat exchangers, pressure vessels, centrifuges, columns/towers and reactors that find...

Aims to achieve further growth through outsourcing Plywood sales volumes grew 4.1% YoY to 13.57 MSM (premium category contributed 64%) in Q1FY20 while realisations improved 3.3% YoY to | 222/sq mt. GIL's own manufacturing facility is operating at 139% utilisation as of Q1FY20. With capacity constraints in place, it plans to achieve further growth via outsourcing. It has already entered into a JV (30% ownership) for premium-end products (11 MSM plant capacity) that is expected to commence production by Q3FY20E & could ensure revenue worth | 100115 crore at peak utilisation for GIL. It is also planning to enter another JV...

GMM Pfaudler Ltd (GMM) in Q1FY20 posted cons. revenues of Rs. 150 Cr. (up 34%Y-o-Y & 8% Q-o-Q), growth is largely attributable of surge in demand, 42% YoY, for Glass Line Equipment (GLE) coming from specialty chemical and agro chemical industry.

Finolex reported weak results wherein revenues grew by merely 2.1% (6% below our estimates) due to lower volume growth of 3% y-o-y in electrical wires hit by subdued construction activity and deceleration in OFC in communication segment. EBITDA declined 18% on higher other expenses including higher promotional expenses in its fast moving electronic goods (FMEG) segment leading to contraction of 328 bps y-o-y in EBIDTA margin to 13.1%. However, due to lower ETR (31% v/s 35% in Q1FY19) the decline in PAT was restricted to 10% y-o-y to Rs...