$136mn (DE 2.9%). OPM improved by 170bps QoQ to 12.1% (DE 10.6%) driven by sustained traction in TSU business (up 4.1% QoQ). Commentary turns further confident as the Newly instated CEO expect the turnaround in the Alliance business in FY22e both on growth as well as profitability, while expects momentum in the TSU business to continue to clock healthy growth led by robust deal-win momentum. Expect sustenance of Profitability despite impending wage hikes given potential for improvement in Alliance biz (offshore shift), efficiency in...
TECHM reported revenue growth of 2.9% QoQ (DE: 2.1%) led by strong growth in Hi-Tech/BFSI/Retail Vertical (14%/9.5%/7.5% QoQ). EBIT margins improved by 410bps to 14.2% (DE: 10.7%) led by easing of supply side factors (160bps), higher off-shoring, improved utilization and lower sub-con (160bps) gain and savings on visa cost (70bps). TCV signings were strong at US$421mn up 45% QoQ, but still down 13% on TTM basis. The management expects recovery in Enterprise vertical starting Q3 and improved traction from Network side in...
Nestl's Q3CY20 results beat our estimates on all counts with 10% volume and mix growth in the domestic market. In-house consumption brands witnessed double digit growth supported by improved supply situation. However, out of home categories continues to remain impacted due to pandemic fears. E-com business (4% contribution) witnessed strong acceleration with 97% growth. Exports increased 9.4% YoY. We have revised our CY20E, CY21E and CY22E EPS estimates at Rs 223...
Revenues came in at Rs21.1bn, down by 6% YoY, while EBITDA at Rs3.1bn was up 15% YoY but PAT was up by 14% YoY at Rs2.2bn ahead of estimates as outlined in Exhibit 1. CCC days was flat compared to Q4FY20 at 85 days in Q2FY21, but inventory was higher at 96 days compared to 80 days in March 2020 quarter. Cash generated from operations in H1 was Rs7.8bn with a net C&CE; of Rs6.8bn Wires & Cables margins came in higher by 340bps YoY at 13.9% while FMEG margins saw an exponential increase of 470bps YoY to 8.0% in...
Atul Ltd's result was yet another surprise on the margin front, with sales too slowly reverting to pre-covid levels. Sales came in above our estimate at Rs 10.02bn (D.est: Rs 9.07) down by 4.2% YoY. EBITDA (D.est: Rs 2.06 bn) grew by 16.4% YoY to Rs 2.61bn, with a strong EBITDA margin of 26.1%, an increase of 460 bps YoY. The company has controlled its other expenses and power and fuel costs,...
Rallis' 2QFY21 earnings print was below our estimates by 7.1% on sales and 21.2% on EBITDA. Sales/EBITDA/PAT stood at Rs 7.25bn/1.17bn/830mn down by 3.2/1.6/3.3% YoY. We had anticipated fall in sales of international business, however the reported fall was even steeper (down 29% YoY to Rs 1.54bn) than our expectations. Domestic business did report a decent growth by...
A strong growth recovery, end of price erosion in LEDs and cost savings saw a result beat from the company (Exhibit 1). The gradual m-o-m recovery seen in the Jul-Sep quarter is continuing in October, indicating...
