OFSS reported inline operating results for Q4FY20 with a 4% YoY revenue growth at Rs12.6bn against our estimate of Rs12.4bn. EBIT stood at Rs5bn as against our estimate of Rs5.1bn - OPM at 39% It signed new licence worth USD23mn for the quarter; full year wins at US$76mn down 7% on YoY basis. It signed 12 new deals in the quarter (including an OBP deal) and witnessed 13 sites going-live. OPM for Q4 stood at 42.6% down 50bps QoQ higher against our estimate of 41.3%. Product margins improved further to 50.5% (up...
While KMB's PPoP growth was healthy at 19% YoY led by stable NIM and healthy sequential growth in other income, PAT was impacted by Rs6.5bn of COVID related provisions. Higher CASA ratio and decline in SA deposit rates resulted in ~45 bps QoQ decline in CoF, aiding NIM of 4.7% despite a 700 bps decline in Loan-deposit ratio. We continue to like KMB for its strong liability franchise with improving CoF, conservative lending approach, strong subsidiaries, and healthy capital position. Despite lowering growth estimates and doubling of...
Strong Results; TCV and Commentary reassures growth Mphasis reported INR Revenue growth of 3.1% QoQ (1.5% QoQ in CC terms) ahead of estimates (1.4%) led by sustained traction in Direct International business (70% of revenue) that grew 2.6% QoQ in CC terms while DXC (26% of revenue) declined by 1% QoQ. OPM margin improved 10bps sequentially to 16.3% (our estm: 16.1%). PAT stood at Rs. 3.5Bn (our estm: 2.9Bn) due to lower tax out go at ~15%. MPHL added strong TCV wins at $201mn (TTM basis: $715mn, up 13%...
While coronavirus outbreak continues to dampen near term PVs demand, we maintain our thesis that Maruti Suzuki (MSIL) is best positioned to tap the long term potential of the domestic PV market with (1) network strength, (2) strong rural presence and 3) product positioning (continued market dominance in the entry-level car...
COVID related provisions of `27bn and lower other income led to weaker than expected PAT for ICICI Bank. The disappointment on asset quality was driven by high corporate slippages, led by two overseas exposures. Substantial provisions on these however ensured PCR was sequentially stable. Margins showed healthy trends despite a sequential 500 bps decline in CD ratio. We factor in near-doubling of slippages in FY21E but high contingency buffers of ~`45bn (including all STD asset provisions except for general...
HCLT reported 0.8% QoQ growth in CC terms (our estimate: 1.4%) led by 7.1% QoQ growth in Mode 2 covering up for 0.4%/1% QoQ decline in Mode 1/Mode 3. OPM improved by 60bps to 20.9% (DE: 20.3%) driven...
Persistent reported 1.8% QoQ decline in revenues as US$127mn (in line with our estimates) as Alliance Business de-grew 28% QoQ, partially off-set by 3.8% QoQ growth in Services (Technology+ Digital) Segment. OPM for the quarter improved 50bps QoQ to 9.2% (our estimate: 8.1%) led by lower volumes in reseller business in Q4. Technology & Digital segment (collectively 74% of revenues) continue to drive topline growth with 2.2% and 7% QoQ growth. PSYS expects these segments to outperform based on positive client interactions,...
Q4 results were an operational miss. Revenue declined by ~5% YoY to ` 29.2bn. Lower SEZ income affecting revenues and margins. Adj EBITDA was at ` 16.4Bn, down 15% YoY. Margins came lower at 56.3% vs 62.7% YoY. FY20 margins at 63.7% vs 64.7% YoY. APAT stood at ` 13.4bn, up 14% YoY. PAT was impacted by a ` 10bn forex on the P&L.; The management guidance: (1) Evaluating the situation, No volume guidance for FY21 ; may give one when there is better visibility post lockdown (2) SEZ income to be ` 8-10Bn; (3) Ports margin to range...
Results inline, Deal Wins supports confident commentary NITEC reported 3% QoQ CC revenue growth (our estm: 2%) largely driven by traction in Insurance (up 6% QoQ) and Others Vertical (up 11% QoQ) that covered up for decline in Travel vertical (-3.8% QoQ). OPM was in-line with our estimates at 14%. PAT stood at ` 1.1Bn below estm due to provisioning related exceptional loss of ` 128mn. It has added $180mn in TCV including 3 large deals (2 in BFSI) during the quarter. Deal TCV on TTM basis is up 16% at $749mn. The 12M...
Green shoots until early March obstructed by Covid-19 disruption Marico's Q4FY20 revenue and EBITDA came below our estimate but APAT was in line. India business reported 3% volume de-growth while overall volume de-growth was 4%....
