India's GDP slowed down to 13-quarter low at 5.7% in Q1FY18 v/s 6.1 in Q4FY17 Agriculture grew by 2.3% in Q1FY18 (5.2% in Q4FY17), industry grew by 1.6% in Q1FY18 (3.1% in Q4FY17) and services by 8.7% in Q1FY18 (7.2% in Q4FY17) Manufacturing GVA reduced to 20-quarter low at 1.2% due to destocking by manufactures ahead of the implementation of GST Electricity and construction sector showed improvement compared to Q4FY17. Growth in services sector remained higher among the three broad sectors of the...
Outlook CMI is one of the leading manufacturers of wires and cables seeing the promising outlook of the wires and cables industry which is expected to grow at CAGR of 15% by FY 22 due to growing demand from the power infrastructure and communication sector we expect new avenue for growth will open in future for the company . Railways and Power Sector are the major revenue contributors for CMIL. The gradual efforts of Indian railway to modernize the signaling system and huge investment of government in power sector to expand the generation capacity as well as to promote the transmission and distribution segment will help to boost the...
Lower market place commission led to a contraction in gross margin: During the quarter, one of the key market place has extended its promotional offer to ITL, thereby effectively reducing the commission expenses. Consequently, the company passed on the saving arising from lower commission charges to the customers, in that way leading to lower sales value. There seems to be an impression of contraction in the gross margin, but that is not the case. Actually COGS went up, while sales & marketing expenses (SME; not part of gross margin calculation) declined. So on a net basis, COGS and SME as a percent of...
FDC Limited (Food, Drugs and Chemicals) is a fully integrated pharmaceutical company which has been in business for more than 70 years. The company is engaged in manufacturing of specialized formulations and oral rehydration salts (ORS) since 1972. The company is currently ranked 26th in India as per AWACS-AIOCD, recording a growth of 3.7% and attaining a market share of 0.89% whereas IPM (Indian Pharmaceutical markets) recorded a growth of 10.3% as per secondary sales, as of March 2017. The Company has built a visible presence across markets in Europe, USA, Asia, Africa, Latin America and Confederation of Independent States (CIS). It has...
Apex Frozen Foods Ltd. (AFFL) is one of the integrated producer and exporter of shelf stable quality aquaculture products. It supplies its ready-to-cook products to a diversified client base and distributors spread across the USA, UK and various European countries. The company will be utilizing around 70% (Rs. 901.5mn) of the net proceeds for setting up a new shrimp processing unit, while the rest...
IIP witnessed contraction of (-)0.1% in June v/s 2.8% in May Decline in the factory output was expected owing to reduction in inventories by manufactures ahead of the implementation of GST Manufacturing sector witnessed contraction of (-)0.4% in June v/s 2.6% in May with 15 out of 23 classified industries witnessing contraction...
Outlook The Indian Auto Component industry is expected to grow by 8-10 % in FY18. During FY13-17 SFL, operating income grew at CAGR of 7.4% due to increase in domestic and export sales while EBITDA grew at a CAGR of 22.4% over the same period. EBITDA margins of the company are consistently improving and stood at 16.9% in FY17 as compared to 10% in FY13, representing an expansion of around 7ppts. Margin expansion was primarily driven by the reduction in cost of raw material consumed and increased productivity. Cost of raw material increased at a lower rate as compared to the top-line by 0.8%, while employee expenses increased...
Consequently, the reverse repo rate under the LAF stands adjusted to 5.75%, and the marginal standing facility (MSF) rate and the Bank Rate reduced to 6.25%. The Reserve Bank of India (RBI), in its third bi-monthly monetary policy statement' 2017-18, cut the repo rate by 25 bps to 6.0% from 6.25% with immediate effect amidst the sharper than expected decline in inflation trend over the last few months. However, the central bank expects that inflation will rise from current level in coming months and...
HDFC Bank Ltd. (HDFCB) reported another stellar performance for Q1FY18 with net profit growing by 20.2% YoY in line with our estimates. During the quarter, the bank witnessed growth in NII & business and NIM improved by 10 bps to 4.4% driven by strong assets growth and operating efficiencies. However, owing to high slippage from agriculture portfolio, assets quality deteriorated in the reported quarter with GNPA ratio increasing by 19 bps QoQ to 1.24%. Q1 FY18 Result Analysis: Net Interest Income (NII) grew by 20.4% YoY and 3.5% QoQ on the back of high interest income and low cost of funds. While strong...
