Vardhman Textiles Ltd (VTL), for Q1FY19 on a consolidated basis, reported decent numbers. Revenue grew ~8% YoY to 1,700 crore, aided by 7% growth in textile segment to 1,625 crore and 47% growth in acrylic fibre segment to 99 crore. EBITDA grew 32% to 292 crore. Lower raw material cost (down 91bps to 53.3% of sales) and other expenses (down 229bps to 21.7%) resulted in EBITDA margin expansion of 312bps to 17.2%. Net profit grew 7% to 159 crore, owing to lower other income (down 42%) and higher tax rate (29.5% vs 17.6% in Q1FY18). Management View: Maintained long term EBITDA margin guidance of 18-22%....
One-offs impact performance, but order inflow gains traction Ahluwalia Contracts (India) Ltd (ACIL), for Q1FY19, reported muted numbers, mainly on the back of one-offs. Revenue declined by ~20% YoY to 404 crore, on the back of slow execution in few projects (impact of 35 crore Delhi CPWD project tree cutting issue, and NBCC Kolkata design issue). EBITDA declined by 2% to 53 crore. Lower raw material cost (down 1,099bps to 43.5% of Q1FY19 sales) was partly offset by higher employee cost (up 258bps to 8.9%) and other expenses (up 603 bps to 34.6%) leading to EBITDA margin expansion of 238bps to...
Jain Irrigation Systems Ltd (JISL), for Q1FY19 on a consolidated basis, reported good numbers. Revenue grew 24% YoY to 2,092 crore, with better growth across business segments Hi-Tech Agri Input products (48% of Q1FY19 revenue) up 17%, Plastic (28%) up 15% and agro processing (22%) up 39%. EBITDA grew 15% to 270 crore, with margins contracting by 101bps to 12.9%, due to high value inventory in the food business. Higher other income (impact of 30 crore due to mark to market - MTM gain on listed bond in Singapore), led to net profit growth of 84% to 82 crore. As per JISL, net debt increased by 13% YoY to 4,579 crore...
Loan growth improving gradually with stable NPAs Loan growth in TN remains muted: The overall loan book grew 11.8% YoY to 10,075 crore as on 30 Jun'18, mainly driven by ~20% growth in the non-TN states, while the same in TN remained muted at 7%. Sanctions and disbursements grew at a healthy pace of 22.3% to 758 crore and by 28.4% to 704 crore. Disbursements growth in non-TN states stood at ~58% vs. that in TN at ~8%. Moreover, LAP book declined to 18.2% of the total with about 80% of disbursements are in the IHL segment. Going ahead, the growth is expected to be driven by non-TN states. The...
Good order inflows, growth traction in place Power Mech Projects Ltd (PMPL) for Q1FY19 on a consolidated basis reported good numbers. Revenue grew ~29% YoY to 462 crore, on the back of better order execution. Revenue from erection segment (39% of Q1FY19 revenue) grew 26%, operation & maintenance (O&M; -28%) grew 6%, civil (31%) grew 60% and electrical works (2%) grew 220%. EBITDA grew 32% to 61 crore, with margins expanding 34bps to 13.2%, due to better project mix. Net profit grew 34% to 24 crore. As of 30 Jun'18 debt stood at 310 crore (vs 274 crore as of 31 Mar'18)....
Q1FY19 result highlights: Revenues for Sun TV Network was up 42.5% to Rs11.2bn (10% above expectation) on the back of Rs3.9bn revenue from IPL, 20% YoY growth in advertisement revenue and 21% YoY growth in DTH revenues. Operating profit was up 63.8% YoY to Rs7,347mn on Rs2bn operating profit from IPL against loss of Rs224mn. Depreciation and movie amortisation cost was up 42% as company showed higher number of blockbuster movies on 25th anniversary of the Sun TV channel. PAT rose 62% YoY to Rs4,091mn (3.8% above expectations). Ex-IPL revenue growth was 14.1%YoY to Rs7.3bn while EBIDTA growth was 13.7%YoY to Rs5.3bn....
In our Exide IC note, we had indicated that EXIDE had taken several initiatives on the automotive side and the corrective actions over the past 2-3 years have yielded strong results and has further enhanced its position in the automotive replacement market. As a follow up series, we have now done our exhaustive channel checks with more than 50+ inverter/UPS battery dealers across all the brands and understand that similar to the automotive segment, the company has taken significant efforts to fill up the gaps and has deployed several corrective actions on the inverter/industrial side. Our interactions further suggest that these corrective...
We maintain our Buy rating on FIEM Industries with TP of Rs1,150. We expect FIEM's growth to continue aided by strong growth prospects of its two biggest clients namely Honda Motorcycle and Scooter India (HMSI) and TVS Motor, along with richer product mix. 1QFY19 top-line performance was in-line with estimates, as auto segment posted strong growth. However, pain in the LED business continues. Had it not been for issues in the LED business, performance would have looked much stronger at profit levels. We remain convinced of FIEM's medium-to-long-term growth opportunity as the company continues to remain a strong 2W auto ancillary company. Many 2W OEMs are expected to shift towards LED...
We retain Buy on State Bank of India (SBIN) with revised SOTP-based TP at Rs350. Q1FY19 results saw several hits healthy NII, improved margins, strong core operating profit and lower slippages; and few misses feeble other income growth, elevated provisions and thus yet another quarter of losses. Watchlist portfolio stands reduced to 1.24%; management has reiterated its stance on moderation in slippages / credit cost for FY19E. Focus shifts towards recoveries and balance sheet growth. Capital position remains strong, subsidiaries profitable. Valuations continue to remain attractive. Retain BUY....
We maintain our Buy rating on Aurobindo Pharma (APL) and revise TP to Rs1,010 (earlier Rs1,070) based on 18x March'20E EPS of Rs56.2. The company's Q1FY19 revenue was in-line with our expectations. However, EBIDTA margin and net profit were below expectation. APL's sales grew 16% YoY, margin declined 460bps to 18.3% and net profit declined by 12% YoY. Its specialised segments such as injectables, penam, microspheres, hormones, oncology, vaccines, neutraceutical, depot injections, OTC and peptides would improve margins due to complexity in the manufacturing. APL has developed a robust pipeline of 487 ANDAs for the US...
