Q2 was a gradual improvement over Q1 with revenues down 28% YoY, driven by a dip of 16% in the unitary cooling business at Rs3bn. The project business was down 31%, impacted due to sites with sites operating at 65-70% levels in Q2 as they open up. While revenues came in line, EBIDTA and PAT were better than estimates (Exhibit 1) Both the businesses are expected to show improvement as the economy opens up, with company expecting better H2 margins. The AC business is expected to normalize by Q4FY21, which is the next big...
Dr Reddy's reported a decent 2Q with strong performance in India (Wockhardt portfolio integration and COVID products) and US (new launches). However, lower export incentive, higher price erosion, change in product mix and adverse currency impacted gross margins (54% in 2Q vs 56% in 1Q), in line with estimates. Adjusting for the impairment charge of Rs781mn for intangibles, EBITDA margins came in line at 24.3%. Further, lower tax rate (deferred tax benefit) aided profitability at Rs7.6bn (vs our estimate of Rs5.7bn)....
Realization was at Rs 187.9/L. Revenue increased by 4% YoY and 80% QoQ owing to agri demand and partial revival of pent up demand. However, there was slow demand pick up in the industrial segment and volume recovery was mainly seen from CV and 2W space. Gross spreads improved by 7.2% on a YoY basis and by 30.2% on a sequential basis. CIL is taking pricing actions as and when required and will take necessary steps to keep cost in control. Cost per litre declined by 13.7% on a sequential basis and by 9.1% YoY. Gross margins...
Amara Raja demonstrated strong operating performance in Q2FY21. Revenue was Rs 19.36bn (+14.2% YoY), led by recovery in demand from the automotive (both OEM and Replacement) and the industrial...
Bharti reported strong all-round beat in Q2FY21 across both India Wireless and Africa. A solid 14mn subscriber, 14.5mn 4G additions, 3.4% QoQ ARPU (computed 5.5%) in India Wireless and 5mn sub adds in Africa with 8.8% QoQ ARPU growth were key highlights. Other...
SBILIFE reported a 28% YoY increase in GWP to Rs. 130.9bn in Q2FY21 driven by strong renewal premium and single premium, which grew 28% and 71% respectively to Rs 71.5bn and Rs 36.2bn. APE declined 3.5% YoY to Rs. 27.1bn but more than doubled sequentially. The savings APE declined 9.2% to Rs. 23.7bn while the protection APE grew 70% to Rs. 3.4bn. We expect SBILIFE's APE growth to be on par with the industry's. Individual savings APE declined 15% YoY to Rs. 21.1bn and comprise of 78% of the overall mix (Q2FY20: 88% Q1FY21: 75%). Although ULIP APE...
Bharti Infratel (BHIN) Q2FY21 was operationally healthy lead by strong tower additions, tenancy growth and rental/tenant. Energy spread was negative for 2nd consecutive quarter. BHIN's short-term prognosis remains significantly positive led by potential tariff increase in the telecom sector and/or fund-raise by VIL. More importantly, BHIN-Indus merger would conclude within a month and the combined entity would declare a dividend of Rs 48bn (Rs 17.8/sh ~9.5% yield) within 3Ms. We have marginally increased our estimates to factor in the robust growth....
In 2QFY21, Torrent reported muted performance in its key export markets US (20% YoY decline), Brazil (17% YoY decline, primarily due to currency depreciation) while India (7% YoY growth) aided in flattish revenues for the quarter, in-line with our estimates. However, EBITDA margin at 31.5% were marginally better than expectation led by...
Including standstill NPAs, slippages would have been ~1.1% and gross NPA would be stable QoQ at 2.7%. PCR increased by ~700 bps QoQ to 76% and stood at ~72% on a pro forma basis, implying healthy recoveries and low write-offs during the quarter. Standard loan cover stood at 0.6% of advances as of Sep-end, same as last quarter. Management noted that the stock of provisions the bank held was adequate and conservative. Despite weak growth trends, continued moderation in CoF has aided...
