Revenues (Rs 20bn, up 10% YoY) came in line with estimates as exports led the growth (India grew 3% YoY), gross margins at 56.3% (down 540bps QoQ and 180bps YoY) was impacted due to product mix (higher contribution from trade generics and competition in Mycophenolate in the US) coupled with higher API prices from China. Despite poor gross margins, lower fixed costs and employee expenses (15% cost is variable) led to EBITDA margins at 14.8% (up 210bps...
Robust volumes mostly driven by industrial and domestic PNG segment. Healthy EBITDA spreads. Maintain Accumulate. Gujarat Gas results were in line with estimates on revenue and above estimates on profitability front. Volumes were at 905 mmscm which was an increase of 54.7%YoY and of 5.6% QoQ, with industrial segment growing at 82.3% YoY and of 7% QoQ. Major growth in industrial segment has come from Morbi region (75%) despite worries over anti-dumping duty by GCC for ceramic industry....
Gross margins expanded by 580bps YoY on account of benign RM costs, sequentially improving by 102 bps to 50.6%. EBITDA margins at 20.9% could have been better (COVID-19 impact caused deferment in sales),...
line. Domestic volume growth was flattish compared to our estimate of mid-single digit growth. Lockdown due to Covid-19 in March impacted the revenue and net profit growth by ~7-10%. Though the sales were significantly impacted due to lockdown, the company was able to improve its overall market share in Q4. With ramp up in production, strong supply chain and distribution initiatives and focused marketing campaigns, company exhibited revenue growth of 20% YoY in April'20 and 28% YoY in May'20....
KEI Industries (KEI) results were below our estimates, due to sales lost in dealer segment in last 10 days of lockdown. Usually March month is a peak month for sales through dealer/distributor network. Cables division is expected to bounce back in H2FY21 considering the government push for rural electrification and metro transport....
UNSP's Q4FY20 was in-line but weak at operating level with volume decline of 13% YoY (P&A; 20%). Adjusted for one-off bulk sales, Revenue/ EBITDA/APAT were -14.8/-10.6/-28.2% YoY. Reported revenue/EBITDA/PAT were -11.4/-12.4/-14.6% YoY. Yet, UNSP's earnings print is impressive in backdrop of weak volume growth and decline in Gross margin of 433/220bps YoY/QoQ. Persistent cost controls in line-items below GP is enticing for second consecutive quarter. For perspective, below GP costs declined from...
Voltas had a stellar Q4, with main highlight being the 20% growth in the unitary cooling (compared to de-growth in teens for competitors) along with margin expansion and market share gains. Projects...
decline in volume in the auto OEM segment was offset by growth in the domestic replacement segment and exports. The home UPS segment was under pressure, as the seasonal demand for inverter batteries was severely impacted by the lockdown restrictions in March. EBITDA was Rs 2.4bn (+0.4% YoY) and margin was 15.4% (-82bps QoQ). The negative operating leverage was partially offset by fall in lead prices, a better product mix and cost control measures. APAT grew15% YoY to Rs 1.36bn due to lower tax rate....
Beat estimates; Short term blip, long term positive CEAT reported a strong operating performance in Q4FY20, despite challenging conditions. EBITDA grew 23% YoY to Rs 2bn. Operating margin benefited from lower RM prices, operational efficiency, and 40bps in positive impact due to finished goods inventory absorption. EBITDA margin, adjusted for one-offs, expanded 190bps QoQ to 12.3% (versus our estimate of Rs.10.3bn). Consolidated revenue de-grew 10.6% YoY to Rs.15.7bn (versus our estimate of Rs.16.1bn)....
Sun reported in-line sales in Q4 while higher bonus payouts, spend in Taro (believe related to higher volumes) and forex loss impacted EBITDA margins (18.4% vs our estimate of 21%) while one-offs related to litigation cost provision led to 20% miss in our PAT estimates. However, dip in margins remains an aberration and is expected to normalize in subsequent quarters. Global specialty portfolio recorded sales of US$126mn (up from US$118mn QoQ) led by seasonality in Levulan and Absorica coupled...
