View: Footfall growth expected to continue. Maintain Accumulate Wonderla posted good set of numbers in Q1FY20. Revenue grew 13.2% YoY, driven by 8.2% YoY growth in footfalls and a 4.1% rise in ARPU. Ticket revenue grew by 14% & non ticket revenue grew by 11% in Q1FY20. While Kochi and Bangalore park registered double digit revenue growth, Hyderabad park revenue was restricted due to lower footfalls on account of extreme weather conditions. We have revised our estimates marginally to factor in Q1 performance. Valuing the stock at 20x FY21E PE to arrive at a...
Higher volumes due to higher efficiency in operations and expansion of nameplate capacity; long-term outlook better. Maintain Accumulate PLL Q1FY20 revenues were line with estimates, due to higher off-take from the Dahej terminal. The volume was 217 TBTU for Q1FY20. Volumes at Dahej were higher due to addition of nameplate capacity at Dahej of 2.5 MMTPA and shut down of Dabhol terminal (which will be operational post monsoon). The Dahej terminal's capacity utilization continues to be 112%. The Kochi terminal's utilization remains low and is only expected to...
View: Growth traction improves, margin recovery crucial for rerating HCL Tech reported strong revenue performance in Q1FY20 with a 4.2% CC terms QoQ growth in revenues, with almost 88% of the incremental revenue contribution being organic (our estimate at 2.4%). Profitability however was lower than expectation with a 190bps QoQ decline at 17.1% as against our expectations of 90bps cut on account of unexpected hit of ~110bps in the Engg R&D; segment. Despite the slip in OPM performance in Q1, Management has retained its guided band of 18.5%-19.5% as it...
Page Industries' continues to report weak performance. The revenues came below our estimate second consecutive quarter of flat to low single digit growth for the company. We attribute this to slowdown in the economy and low footfalls in EBO's. Going ahead, we believe that slowdown in the economy would restrict the company's performance in the near term. nevertheless, new product launches in men, women and kid's category and impetus to increase penetration especially in kid's category would help the company to register double digit growth in...
Delivers in its best seasonal quarter; Maintain Buy In Q1FY20, Voltas reported results that were in-line with our expectations, adjusted for one-off. The results were driven by strong growth in the UCP division, which rose 47% YoY, due to a good summera fact corroborated by competitors and channel checks. While project business was down, we do not read too much into it and expect the business to remain steady on a full year basis. The company's balance sheet is improving with negative capital employed in the UCP segment, reversing the WC expansion seen in...
View: Strong licence signings at US$29mn, wins another OBP deal OFSS reported strong Q1FY20 results with a new licence signings of US$29mn in the quarter. It signed 11 new deals in the quarter and included one OBP deal from a leading Australian Bank. The revenues were below our estimate due to weak implementation revenues in the quarter (down 10% on YoY basis) but is expected to pick up given strong 14% growth on TTM basis in its Licence revenue stream. EBIT for the quarter was inline while PAT slip was largely on account of adverse FX....
View: Healthy deal win to aid revenue growth momentum Zensar's Q1FY20 revenue was lower than our estimate, due to conscious exit from its low-margin ROW business stream and muted growth in digital application services (adjusted revenues inline). The management remained confident on its deal wins (TCV of USD 160mn in Q1FY20) and its pipeline and expects it to exceed the previous year record deal wins of about USD 700mn. We believe that healthy deal wins and higher demand in digital services are likely to lead to strong revenue growth in the next few...
Execution momentum good; guidance retained for FY20; Maintain Buy In Q1, execution momentum grew, with revenue rising by 16% YoY. However, EBIDTA and PAT were marred by one off costs. The company retained the revenue and order inflow guidance given in Q4FY19, with the order pipeline in FY20 more promising in H2; The current order book is strong at `190bn. The T&D;, railways, and civil projects will drive earnings growth of 20% CAGR over FY19-21, in our view. We maintain our estimates considering strong revenue and order inflow guidance and solid return...
Titan's net revenue grew 14.4% YoY to `49.4bn in Q1FY20, below our estimate. We believe the growth in the jewellery segment will remain muted (low double digits) in Q2FY20E. Nevertheless, we anticipate an increase in growth in H2FY20E, due to new store additions, customer acquisition, and anticipated improvement in overall economy. Also, as Titan is one of the largest players in the organized industry, with attractive products, we believe it will emerge as a winner of the shift from unorganised to organised. Further, the trend of buying jewellery for...
View: Robust performance led by strong realization; Buy JKCE posted a strong set of numbers with 19%/ 101.8%/ 211.8% YoY growth in revenue/ EBITDA/ APAT to `11.3 bn/ `3 bn/ `1.5 bn in Q2FY20 driven by strong 19.4% YoY/ 11% QoQ blended realization growth. We expect 15.1/ 20.3%/ 15.9% revenue/ EBITDA/ APAT CAGR over FY19-21E led by 8.9%/ 12.3% blended volume growth and 6.5%/ 1.8% blended cement realization growth in FY20E/ FY21E. We like JKCE because of its sizable presence in higher EBITDA margin (25-28%) contributing white...
