Sharda Cropchem's 1QFY20 performance was below our expectations, Sales de-grew by 7.5% YoY to 4.23bn (D.est: 5.25bn). EBITDA/PAT degrowth was even sharper by 13.3/33.5% YoY to 616/228mn respectively. Gross margin contraction of 337 bps YoY and 331 bps QoQ was a function of consistently rising raw material prices and a sharp gross margin decline in Europe of 560bps YoY (to 36.5% in 1QFY20). The stress on gross margins is largely attributed to innovators not taking price hikes eventually deterring Sharda's ability to take pricing action....
View: Record order bookings covers up for modest qtly performance Nucleus Software reported modest quarterly performance with a 10% YoY growth in revenues (lower than our estimate of 14%) and 260bps decline in EBIT margins at 12.3%. The revenue miss was largely led by soft 8% YoY growth in the Product business (78% of revenues) as it witnessed large number of go-lives (23) during the quarter. Services business (22% of revenues) grew by 20% YoY during the quarter. The EBIDTA margins slip was largely on account of soft revenue bookings (down 2.3% on QoQ basis)...
View: SSSG continues to moderate; Maintain Accumulate JFL's Q1FY20 results were below our estimate, with a 4.1% YoY same store sales growth (SSSG) vs our estimate of 5%. A high base of 25.9% YoY in SSSG restricted overall growth in Q1FY20. We believe JFL will likely post a high single digit SSSG in the ensuing quarters, as the base remains highly unfavorable. In addition, margins are likely to remain under pressure in the near term due to store additions, escalating RM prices, and rise in A&P; costs. We revise our FY20E and FY21E EPS estimates downwards to ` 25.5...
Better than expected Q1; FY20 guidance intact; Maintain Buy The Q1FY20 was a better-than-expected quarter operationally and the marginal drop in infrastructure margins were due to project mix. The company has retained its guidance for FY20, in terms of inflows, revenues, and margins, while the upwards RoE trajectory continues. It remains the best proxy for the capex story. We continue to maintain our Buy, with an unchanged TP of ` 1600 based on SOTP. FY20 guidance intact despite challenging macro conditions...
The robust subscription revenue growth of 36.6% YoY is the key highlight of Zee's healthy Q1FY20. Ad revenue growth was a marginal 3.6%, due to FTA channels becoming pay and NTO. Zee's struggle and ambiguity due to promoter stake sale to bail out the Essel group since the past 6-8...
DART View: Premiumisation and margin expansion story continues UNSP's Q1FY20 revenue grew a weak 5.6% YoY (adjusted). The gross margin also fell 359bps to 46.6%. However, EBITDA/PAT (adjusted) rose 42/98% YoY, due to steep cost control. It is likely to achieve the guided...
Satisfactory volume growth on high base and consumption slowdown HUL's volume grew +5% YoY and operational results were in line with our estimate. We are positive about this as (1) the base was unfavorable (+12%) and (2) the industry, across categories, is experiencing a slowdown. We expect the volume growth to remain in mid-single digit, due to an unfavorable base in next few quarters. Even a 6%+ volume growth is a positive, given HUL's size. In addition, the GM and EBITDA margin rise on an unfavourable base (highest Q1 EBITDAM in 10 years+), indicates that...
Dhanuka agritech reported a muted 1QFY20 performance, Sales/EBITDA grew by 2.8/25.9% YoY to ` 2.19bn/200mn respectively. PAT de-grew by 8.6% YoY to ` 148mn. Results were below our estimates on all fronts. Gross margins continue to be under pressure as rising prices of certain technicals (Cartap Hydrochloride technical for Caldan') could not be passed on. Though gross margins saw a contraction of 110bps YoY to 34.1%, EBITDA margins expanded by 170 bps YoY owing to lower employee costs (down 7.9% YoY) and other expenses (down 7.1% YoY)....
Amara Raja reported strong results in 1QFY20 in challenging conditions. Net profit jumped 25% YoY to ` 1.4bn, due to sharp margin expansion of 300bps and a low base. We remain positive about the Indian batteries market, as we expect 1) replacement demand to further improve, given healthy primary sales in the past three years, 2) a market share gain from unorganized players, after GST, and 3) an uptick in the nascent e-rickshaws /solar batter. We forecast Revenue/EBITDA/PAT CAGR of 8%/11%/10% over FY19-21E. At CMP, the stock trades at 19/18x for FY20/21E EPS (vs 5...
The Q1FY20 results were in line with our expectation. On a base of 4%, the company's volume rose 4%. We view this as a decent performance, considering the slowdown in most consumer categories and intense competition in the oral care category. The launch of Swarna Vedshakti and...
