Q4FY18 result above expectation: Company posted revenue growth of 23.1% to Rs7170mn(5.2% above expectation) on the back of 23% YoY growth in advertisement & broadcast fee revenues while analog subscription revenues was up 47% and growth in DTH subscription revenue was 20% YoY. Operating profit was up 32.7% YoY to Rs5,224mn as operating margin expanded by 529bps to 72.9%. Depreciation and movie amortisation cost was up 55% leading to EBIT growth of 27%YoY with margins expansion by 184bps. PAT rose 23% YoY to Rs2,898mn (6% above expectations)....
Strong cost control QoQ offset impact of lower volume YoY Orient Cement (ORCMNT) posted flattish EBITDA YoY in Q4FY18, as increased competition drove volume decline YoY, and aggressive pricing led to weak NSR QoQ. Lower opex QoQ moderated YoY cost inflation. The JPA's assets acquisition is getting delayed owing to pending approvals. We remain wary of this inorganic acquisition which will keep leverage high, and return ratios subdued. We maintain HOLD with TP of Rs150. Volume declined 3% YoY, market share loss continues: Sales volume recovered 23% QoQ to 1.68mn MT, but still fell 3% YoY. Utilisation stood at 84% (vs 87% YoY and 69% QoQ)....
Robust loan growth at pre-demonetisation pace: The disbursements growth remained robust at 47.1% YoY in Q4 at 5,738 crore (FY18 growth of 26% to 18,472 crore). The gross loans grew 37.6% to 12,594 crore as on 31 Mar'18. The growth was driven by new customer additions active borrowers up 16% YoY and addition of 938 new borrowers in Q4 (up 123% YoY) vs. 421 in Q4 last year and 751 in Q3FY18. The company further plans to expand to 4 more states in FY19 with a total of initial 5 branches in each Gujarat, Tamil Nadu, Assam and Tripura. BFIL expects 2-wheeler and housing loans to pick up in FY19. For FY19, the...
We retain Hold on Axis Bank with TP revised lower to Rs520. The quarter saw bank upfront a substantial part of its watchlist exposure into NPA (slippages came in at Rs165.4bn or 15% of loans annualised). Resultant, Q4'18 results were lower to our / street estimates on both profitabiity and asset quality front. With large part of stressed assets recognised, focus now shifts towards growth. Loan loss provisions is expected to remain elevated (especially in H1FY19), however with healthy coreoperating profit we expect RoE to scale towards 14-15% levels by end-FY20e....
We retain Sell on MMFS with TP revised upwards to Rs380 (valued at 2.5x FY20E ABV). Our channel checks had pointed for strong disbursement growth and incidences of lower repossessions / higher recoveries for the quarter. Q4'18 results corroborated our survey that saw a) solid 17.8% YoY growth in AuM and b) sharp 22% QoQ decline in GNPA. Commentaries on growth, asset quality remain encouraging. Even as we factor in higher growth rates (we have our reservations here) and improved asset quality, FY20E RoE will still be lower to its 10-year average RoE, also when compared to its peers. Valuations at 3.4x FY20E ABV are on the higher end of the band. Retain SELL....
Higher utilisation & good cost controls offset cost pressure UltraTech's (UTCEM) Q4FY18 standalone EBITDA rose 33% YoY buoyed by 31% YoY volume growth (core volume up 8% YoY), and better cost control amid rising input and freight costs. Strong demand bolstered volume growth and boosted utilisation. Continued improvement in energy consumption metrics and lead distance reduction partly moderated the impact of rising energy costs YoY. Amid a good demand outlook, we expect UTCEM to deliver an industry leading 13% volume CAGR during FY18-20E. We also expect UTCEM's margins to benefit from better pricing, UTCEM's economies of scale and prudent cost...
Despite a strong growth in the India tractor industry, Swaraj Engines (SWE) reported a moderate volume growth. Considering stellar growth reported by M&M;'s tractor division, this performance was below our estimates. 4QFY18 EBITDA/PAT improved 19.0%/17.0% YoY, on the back of 9.8% growth in volumes and 49 bps YoY expansion in EBITDA margin. SWE's EBITDA and PAT were below our expectations on account of a slower than expected volume growth, affecting the topline. We acknowledge that SWE is poised to leverage the continued good growth momentum in tractor industry, with higher return ratios. Considering growth momentum in tractor industry, we maintain our Buy rating on the...
We maintain our Hold rating on Tata Sponge (TSIL) with a revised TP of Rs1130 as we see valuations fair with historic high spreads having marginal downside risks and surplus cash on books expected to be deployed as CWIP in the steel plant capex over the next few years. Q4 earnings were very strong YoY led by better pricing and solid volumes. TSIL's spreads in sponge iron business have continued to improve but sustenance of the same at current high levels for long periods of...
Good quarter, order book execution key to growth Ahluwalia Contracts (India) Ltd (ACIL), for Q3FY18, reported decent numbers. Revenue grew by ~1% YoY to 361 crore, growth was muted on the back of GST impact (adjusting for the same, revenue would have been up by 9-10%). Execution of better margin orders led to EBITDA margin expansion of 413bps to 17.3%. Good operational performance aided net profit growth of 20% to 29 crore. As of 31 Dec'17 debt was at 61 crore (vs 63 crore as of 30 Sept'17). Management Guidance: For FY18, the management has maintained revenue...
Weak results; Non-gold loans to drive growth Manappuram Finance Ltd (MFL) reported weak results led by a muted AUM growth of mere 0.7% YoY (6.6% QoQ) to 14,650 crore as on 31 Dec'17. Net interest income (NII) grew 5.5%, while pre-provisioning profit and net profit declined 12.6% and 14.6%, respectively. Cost-income ratio increased 1,045bps YoY to 51.0%. Asset quality remained healthy with gross and net NPAs at 0.7% and 0.4%, respectively, down 50bps QoQ each. Recommendation: Over the last few months, the stock of MFL has remained...
