Volume traction strong, margins expanded. Recommend Accumulate. GOLIL's revenue and profitability were in line with our estimates. Volume in Q1FY20 grew 7.5% YoY. (Core volumes grew 9.8%). While economic factors were slowing down and there was a slowdown in auto sales, GOLIL outperformed the industry in Q1FY19. Sales came from personal mobility, industrial and infrastructure segment. DEO segment had a slowdown due to slowdown in auto sector. Gross margins improved by 280 bps due to better product mix, segment mix, better realisations (retail price hike taken...
Gujarat Gas volumes were higher than expected at 833 mmscm as against our estimates of 792 mmscm. Strong revenues at ` 26.1 bn was driven by 43%YoY gas volumes growth. Gross spreads were flat on a sequential basis and higher by 9% on a yearly basis. EBITDA spreads were highest in this quarter at ` 5.6/scm due to lower LNG spot prices. EBITDA spreads increased by 32% YoY and 29% QoQ. With recent strategy of management to focus on volumes, we believe that operating spreads should sustain at ` 4.5/SCM. Overall volumes increased by 43% YoY and 41% QoQ, with...
Navin fluorine international ltd reported Sales/EBITDA/PAT de-growth of 0.5/3.8/0.3% YoY to ` 2.41bn/607mn/395mn. Sales were lower than our expectations by 7.5% (D.est: ` 2.6bn), while EBITDA/PAT came in-line with estimates (D.est: ` 577/391mn). Gross margins improved on a sequential basis by 230 bps, while there was a drop on a YoY basis of 250 bps to 52.5%. The company has taken price hikes in Q1FY20 and expects gross margins to be sustainable with fluorspar prices softening. CRAMS revenues weak, however commentary positive...
CSTRL's Q2CY19 volumes were in line with our estimates at 55.4 TKL. Revenue increased 2.2% YoY and by 6.5% QoQ, due to growth in the personal mobility segment, focus on channels, and new premium products. Gross spreads declined by 2% on a sequential basis. We expect spreads to remain stable/expand going forward, as CIL has already hiked prices in Q1CY19. CIL has been continuously working on protecting margins with sustainable growth. Management expects H2CY19 to boost volumes and they maintain they guidance between 2%-4%. Volume growth with spreads...
Strong quarter; early signs of concern. Maintain Accumulate Bajaj Finance posted another strong quarter, with PAT growing at 43% YoY on an AUM growth of 41%, (38% YoY excluding IPO financing). The negatives were a 6 bps increase in GNPA and caution on 2W/3W and digital products. The two account for 11% of the book. Except the mortgage portfolio, all portfolios witnessed a deterioration in asset quality. The GNPA rose 61% YoY, faster than the book growth. We have reduced our earnings by 3%/2% in FY20 and FY21 respectively to factor higher credit costs. We maintain our rating and multiple,...
Bajaj Auto's (BJAUT) 1QFY20 EBITDA was ` 12bn (-6.5% YoY) and margins was 15.4% (-182 bps YoY/-27bps QoQ), broadly in line with our estimates. The management expects 2W industry volume to remain subdued in the near-term, due to challenging macro conditions, we however expect BJAUT to outperform the industry's growth rate. We maintain our positive stance, given its 1) wide product portfolio and diversified geographical mix, 2) continued boost of distribution network, and 3) strong cash balance (22% of current market cap). However, margin recovery is unlikely in the...
Maruti's 1QFY20 results were broadly in line with our estimates, as lowerthan-expected EBIDTA margin at 10.4% (vs estimate of 11%) was offset by an increase in ASP. While MSIL's net profit fell by 27% YoY in 1QFY20, but we still retain our faith in the company, given its dealership strength and strong product portfolio. We expect reduction in interest rate, pick-up in rural volume, and festive season to revive demand from 2HFY20. The company also bring down dealer inventory to comfortable four weeks. We lower our EPS estimate by 3/4% for FY20E/21E, factoring in slower-thanexpected ramp up in volume. We forecast a 10% EPS CAGR over FY19-21E, driven by a 3% volume growth and 110bps margin expansion. Given the...
Investing to build National Gas Grid, while growing revenue In the next few years, GAIL will invest about `450.0 billion in major crosscountry pipeline projects, such as Urja Ganga Project, Kochi Kootanad Bangalore Mangalore Pipeline, Indradhanush Gas Grid (North East Grid in joint venture mode), and other pipelines connecting crucial supply and demand centers, to build the proposed National Gas Grid (NGG). GAIL will continue to focus on the growth of its core business segments, such as natural gas, petrochemicals, and gas processing. In addition, GAIL plans to look for diversified and fresh business opportunities, which have the...
View: Robust realization drives EBITDA/tn growth; Accumulate ACEM posted 1.3% YoY decline in revenue to `29.8 bn due to 8.6% YoY decline in volume whereas realization went up 8% YoY. EBITDA grew 12.2% YoY to `7 bn, however, PAT declined 17.5% YoY to `29.8 bn mainly due to lower other income as dividend from ACC booked in Q1CY19 v/s Q2CY18. We expect 5.5/ 10.8%/ 7.9% revenue/ EBITDA/ APAT CAGR over CY18-20E led by (0.9%)/ 6% volume growth and 7.5%/ 2% cement realization growth in CY19E/ CY20E. ACEM gradually lost market share over last decade....
DART view: In line quarter; ECD grew strongly: Maintain Buy The Q1FY19 results were in line with our estimates. The ECD growth was strong, with seasonal impetus for fans and pumps. However, price erosion continued in the B2B lighting, falling 5-7% YoY. Although Crompton, is trying to offset it with premium products in B2C. Lighting margins contracted 631bps QoQ, on account of higher A&P; spend and accounting provisions, while EBIT margins for ECD expanded, due to better product mix. We maintain our Sales/EBITDA/PAT in FY20E, and expect the company...
