to 18.5% level, which was 111bps higher than our estimate driven by positive operating leverage. SSL Key Data reported a PAT of INR 372mn compared to our estimate of INR 302mn (23% above our estimate) led by operationally strong performance. Management maintained its revenue growth guidance of the mid -teen level. However, trimmed down margin growth guidance to 100bps (from earlier 200bps) YoY for the medium term due to remain competitive in the challenging pricing environment. The company...
Neuland lab (NLL) has posted revenue of INR 2,454mn with a 20.4% YoY increase, which was 14% above our estimate of INR 2,150mn. The revenue growth was mainly driven by strong traction in the CMS (78.6% YoY growth) segment, led by 33 molecules (Development + Commercialize) along with the Speciality API segment, which grew by 20.5% in Q3FY21. EBITDA margin expanded by 510bps to 19% level, which was 76bps higher than our estimate driven by improved product mix. Management is confident to improve margin profile from the current level on the back of strong order book in CMS business, better traction in GDS business, and cost optimization measures. NLL reported a PAT of INR 267mn (up 141% YoY) compared to our PAT estimate of INR 202mn led by operationally...
Granules (GIL) posted revenues of INR 8445mn with 20% YoY growth, which was ~16% above our estimate of INR 7279mn. Revenue growth was mainly driven by increase in the market share of existing products, new customer additions in the API segment and increasing penetration of PFIs as a category. During Q3, FDs grew by 11% (YoY), PFIs grew by 48% (YoY) and API sales were up by 20%(YoY). Gross margin improved (300bps YoY) due to favourable product mix (larger share of FDs and PFIs) and higher capacity utilization. Subsequently, the EBITDA margin expanded by 188bps to 25.1% level was 145bps higher than our estimate supported by improved operational efficiency. As per management EBITDA margin can be sustained between 25% to 27% level as continued traction in the formulation business. GIL reported PAT of INR 1468mn, was above our estimate of INR 993mn...
In 3QFY21,CEAT reported a strong set of numbers. Revenue grew by 26.1%YoY to 22,123 mn (est.INR19,693 mn) mainly due to volume growth majorly from replacement demand led by rise in personal mobility, recovery in CV demand and farm equipment segments and restrictions on imports. EBITDA grew by 78.8% YoY to INR 3,277 mn (est.INR 2,422 mn) mainly due to higher gross margin on account of price hikes (i.e 3% in Dec'20) across categories (except 2W) and higher mix from replacement segment(+35% YoY) which resulted in operational efficiency. Moroever, in this quarter, company witnessed the strongest demand for CVs (~30% in TBR and TBB), PVs and 2W/3Ws. OTR segment grew 42% YoY due to increase in the domestic farm sector and exports. The company expects the RM basket to increase by 10% sequentially due to sharp surge in rubber and crude oil prices. Adjusted net profit stood at INR 1,417 mn (est.983 mn) strong performance on operational front. Focus on brand value with new client acquisition to increase market share gains...
Gradual improvement in demand to cushion overall growth We expect 3QFY21 earnings for Auto & Auto Ancillary to witness sequential growth driven by healthy volume recovery and cost control measures. Pent-up demand, increased preference for personal mobility and strong rural sentiments has enabled to revive the sector. Ramp-up in production post unlocking measures has helped to fill channel inventory,. Tractor, PV and 2W OEMs witnessed good pent-up demand, aided by strong rural and semi-urban markets. CV segment is gradually witnessing a recovery led by increase in construction activities and national infrastructure projects. Various cost control measures and increasing capacity utilization will enable to drive operating margins. However,...
We expect the companies under our pharmaceutical coverage to clock 36.7% (YoY) earnings growth with an 8.4% (YoY) rise in the revenue base, led by a notable recovery in the domestic market and healthy growth in the export market. In the domestic business, the chronic portfolio continues to be steady, and acute therapies are recovering slowly. US formulations are expected to grow due to a ramp-up in speciality products supported by improving prescription trends, new product launches, and favourable currency movement. We expect a moderation in API sales, which were abnormally high during H1FY21 due to the stocking of raw material by formulation companies. The recent INR weakness will also benefit Indian pharma companies, but some of the margin benefits are being offset from EM currencies and higher API/ KSM costs. Overall, our pharmaceutical coverage would...
IG Petrochemicals Ltd (IGPL) reported strong margin performance on the back of favourable PAN/OX spread during the quarter. Revenue de-grew by 9.1% YoY to INR 2424mn (est INR 2621mn) mainly impacted by lower realization due to soft crude oil prices. However, demand is fully recovered in Paints and Plasticizers to pre-COVID levels. EBITDA surged by 191.5% YoY to INR 418mn (est INR 235mn) with 1186bps YoY expansion in margin from 5.4% in Q2FY20 to 17.2% in Q2FY21 (est. 9%). This was mainly due to 1134bps expansion in gross margin (33.4% vs 22.4% in Q2FY20) on account of improvement in PAN/OX spread. Currently, PAN/OX average (avg) spread is around $200 (vs avg $150 in Q1FY21) compared to 10-year avg of $200 vs $100 in FY20. We believe spreads can continue to remain favourable in the near term on the back of healthy demand in the Paint and Plasticizer...
driven by positive operating leverage. During the quarter the company incurred one-time expenses of BSE code INR 90mn (onetime bonus and ESOPs of INR 52.1mn and INR 38.3mn related to discontinuation of Alivira France operations) under Exceptional item. SSL reported a PAT of INR 213mn compared to our estimate of INR 250mn. Adjusting onetime expenses, the Normalised PAT came in at INR297mn...
INR3,368mn mainly driven by strong growth in the Pharmaceutical segment. On segmental performance: The crop protection segment de grew by 17.9% (YoY) to INR 926mn and 12.7% (YoY) due to deferment of orders worth INR400mn which is expected to be supplied largely in Q3FY21. Pharmaceutical segment revenue surged by 34.1% to INR 2,793mn led by strong volume off-take supported by new capacity at Bangalore unit which was commissioned late last year. Despite 554bps contraction in gross margin, EBITDA margin managed to improve by 58bps to18.8%, was 29bps above our estimate. EBITDA margin was supported by 11% (YoY) decline in employee cost and flat other expenses in the growing topline. EBIT margin of the Crop protection segment declined by 1044bps...
