Asset Quality showed improvement with GNPAs decreasing by 47bps QoQ at 4.49% and NNPAs decreased by 57bps QoQ at 0.57% after considering the dispensation provided by RBI as the company continues to recognize NPLs on a 150-dpd basis. GNPA would stand increased at 5.4% had the relaxation given RBI was not taken in to account. As of 3QFY17,...
Background: ICICI Bank is one of India's largest banks with advances of INR 4.54tn. Network: Branches 4504, ATMs 14,146, presence in 19 countries. Focus is on retail lending representing ~48.9% of total loans while International and retail are the new growth drivers. The bank holds near market leadership in almost all its businesses including Mortgages, Auto Loans, Commercial Vehicle loans, Life Insurance, General Insurance, and Asset Management. Its subsidiaries ICICI Venture...
Background: Bajaj Finance, a subsidiary of Bajaj Finserv is a leading NBFC with INR 576bn Assets under Management. The AUM is diversified with 2-3 Consumer Finance 46.9%, SME business 36.6%, Commercial-12.1% & Rural- 4.5%. Asset Quality is strong with Gross NPA - 1.47% & Net NPA - 0.39% with Prov Coverage at 74%. On liabilities, Banks, Money market and retail deposits for 37%, 54% & 9% respectively. Return ratios are very healthy in 3QFY17 with ROA at 1.1% & ROE at...
Background: Maruti is a subsidiary of Suzuki Motor. Maruti pays ~6.1% on sales as royalty to parent. Maruti is India's largest passenger car company, which primarily sells compact hatchbacks (75% of volumes), Utility vehicles and sedans. Its key models are Alto, Wagon R, Swift and Dzire, Baleno and Brezza. With its early-mover advantage in the Indian market, Maruti is a dominant player in the domestic passenger car market with a ~ 45% market share. Maruti has over 1200...
Background: Supreme Industries (SI) is a plastic product manufacturer and the largest plastic processor in India, processing over 0.28mn MT annually. Company has four business verticals i.e. Plastic Piping (52%), Packaging Products (21%), Industrial Products (19%) and Consumer Products (8%). SI has 22 manufacturing plants situated across India. Company enjoys a significant market share across its business verticals; Plastic Piping (9.48%), Industrial Products (15%) and Consumer Products (13%). Supreme Industries is the market leader in the Packaging Products segments like XLPE (50%), EPE Foam (36%), Cap Cell (30%) and Air Bubble Film (18%). SI's...
Background: Karur Vysya Bank (KVB) is one of the mid-sized banks in the private sector space, operates through a network of 706 branches and about 1,711 ATMs. KVB's business - 82% is concentrated in South India with about 73% of its branch footprint in Tamil Nadu and Andhra Pradesh. As of 3QFY17 the total business stood at INR 935bn. The bank is capitalized with a total CAR of 11.93% (Basel III). Gross NPAs were reported at 2.66% with provision...
Global Deposits grew by (5.2%YoY, 3.1% QoQ) to INR 1836bn driven by growth in domestic deposits (5.9%YoY, 3.4% QoQ) to INR 1782bn. Growth was largely driven by increase in CASA base (33.5% YoY, 19.3% QoQ) due to the impact of demonetization...
Background: HCL Tech is the 4th largest IT services exporter offering offshore IT Services. In 3QFY17: Revenue split, Americas: 61.9%, Europe: 29.6% & ROW: 8.5%. Service Mix: Application development & maintenance: 37.5%, Infrastructure Services: 39.8%, Engineering and R&D; services: 18.6% business process management: 4.0%. Managed services and fixed price contracts account for 63.2%, while time and material 36.8%. Major verticals are Manufacturing: 33.9%, Financial Services: 24.3%, Healthcare: 12.0%, Retail and CPG: 9.4%, Media: 8.9%, Public Services: 11.2% & others: 0.4%. Company has 8 clients in USD...
Background: Persistent Systems is one of the leading outsourced product development (OPD) companies in India. 3QFY17: Revenue share from Services business (71.6%) & the IP -led business (28.4%). The company has domain expertise in ISV (42.5%), Enterprise (29.1%) and IP Led (28.4%). Company has strong workforce of 9,389 employees. The company's business is spread across North America (86.6%), Europe (5.3%) and RoW (8.1%). Company earns revenue from global delivery centers (26.7% ), India (44.9%) and IP Led (28.4%). Total active clients stood at 654 including services and IP led business. Company's top client accounts 29.5% in...
