operational performance, c) higher other income and d) exceptional gains of Rs760mn. 2HFY20 EBITDA reported a decline of 38.9% YoY to Rs366mn owing to lower gross margins and is expected to be better than 1HFY20 with reasonable growth in exports and presence of levers operating deleverage. PAT reported decline of 39.6% YoY to Rs219mn with PAT margin of for margin improvement. However, we believe current valuations already discount most of the 10.3% which witnessed a contraction of 470bps. positives of the better product mix, growth at export front and margin improvement and hence offer limited upside from here. We assign accumulate rating with target price of Rs. 474...
operational performance, c) higher other income and d) exceptional gains of Rs760mn. 2HFY20 in RM cost by about 375bps YoY to 79.9% of sales. Other expenses stood at 8.1% of sales, up is expected to be better than 1HFY20 with reasonable growth in exports and presence of levers ~60 bps YoY. The company reported one-offs of Rs55-60mn owing to inventory losses and for margin improvement. However, we believe current valuations already discount most of the COVID related provisions. Adjusting for one-offs, EBITDA margin stood at 8.0%. Overall,...
operational performance, c) higher other income and d) exceptional gains of Rs760mn. 2HFY20 for forex loss, EBITDA margin stood at 10.6% and EBITDA declined by 11% to Rs466mn. is expected to be better than 1HFY20 with reasonable growth in exports and presence of levers Notional forex loss led to PBT loss of Rs20mn. However, Consolidated PAT grew by 58.5% for margin improvement. However, we believe current valuations already discount most of the YoY to Rs 281mn as tax related write backs offset the impact of forex loss....
prevented a steep decline in the bottom line which was down by 15% YoY to Rs 6.2bn operational performance, c) higher other income and d) exceptional gains of Rs760mn. 2HFY20 vs. est. of Rs 4.4bn. Further lower scale of operation in FY21e to impact the margin, while is expected to be better than 1HFY20 with reasonable growth in exports and presence of levers Hero's Leap-II program along with soft commodity prices would provide some support. A...
is expected to be better than 1HFY20 with reasonable growth in exports and presence of levers and lower tax rate (-950bps YoY to 17.8%) offset the impact of exceptional costs. The near-term for margin improvement. However, we believe current valuations already discount most of the outlook is poor due to demand contraction and supply bottlenecks. We believe, in FY21e, TVS positives of the better product mix, growth at export front and margin improvement and hence would grow lower than the industry due to downtrading and competitive prices in the entry...
operational performance, c) higher other income and d) exceptional gains of Rs760mn. 2HFY20 against 18.8% in Q4FY19. PAT declined by 11.9% to Rs1,104mn in Q4FY20. However, the is expected to be better than 1HFY20 with reasonable growth in exports and presence of levers full year fiscal performance of FY20 is far better. The company reported revenue and for margin improvement. However, we believe current valuations already discount most of the EBITDA growth of 0.4% & 1.3% respectively in FY20. EBITDA margins reported minor...
The festivals started on a slow note, but History indicates a strong correlation between weak oil & impact on its exports (FY16 & picked up during the last few days of FY17). We think this will repeat in FY21e as well & expect ~27% YoY degrowth in exports. Navratri/Dussehra post clarification on GST,...
Auto industry is looking forward for a better The employees whose salary levels are above Rs 5 lakhs p.a. will have to take a Diwali. On the back of improvement in rural...
operating leverage and higher discounts in the market. This has led to a subdued operational on account of a) lower effective tax rate of 17.8% in Q2FY20 vis--vis 31.0% in Q2FY19, b) better performance. Topline declined by 15.2% YoY to Rs 181bn in Q4FY20, while margin contracted by operational performance, c) higher other income and d) exceptional gains of Rs760mn. 2HFY20 205bps YoY to 8.5% for the quarter. Bottom line degrew by 28%YoY to Rs 12.9bn in Q4FY20 despite is expected to be better than 1HFY20 with reasonable growth in exports and presence of levers some support from lower tax rate. We believe change in the consumers approach towards...
At the current price of Rs 978, the stock is trading at 13.4x FY22E EPS, much lower than the last six year's average of 1-year forward P/E of 21.7x. By looking at the present uncertain situation and intensifying competition in tractor industry, we have lower down our multiple to 18x FY22E (~17% discount to its six-year average) to arrive at a target price of Rs 1,313 per share, which indicates 34% upside from the current levels....
Revenue: Nitin Spinner sales increased 48.4% YoY Rs 2.8 bn. The utilisation levels continue to remain high at 94-95% in yarns and 85% in fabrics. Sales growth would have been much higher if the business sentiments would not have been impacted due to GST. EBITDA: Raw material cost increased at a much higher rate due to increase in the cotton prices on an YoY basis, manufacturing and employee cost increased 42% and 28% YoY. EBITDA stood at Rs 413 mn with an increase of 33.7% on YoY basis. PAT: Depreciation cost increased due to impact of full commissioning of new plant capacity. Tax rate...
Revenue: KPR Mills (KPRM) consolidated revenue grew by 12.1% YoY to Rs 7.4 bn. Growth in textile business was muted at 1.2% YoY due to impact of GST rollout. Sugar segment revenue grew by 471 % YoY to Rs 830 mn as unsold inventory was liquidated in this quarter. EBITDA: Higher operating leverage in sugar and soft cotton prices helped in the expansion of EBITDA margin by 50 bps YoY. EBITDA stood at Rs 1.5 bn with an increase of 15.1% on YoY basis. PAT: Depreciation cost was largely along the anticipated lines. Other income however declined...
