Cipla reported mere 2% YoY growth in revenue in Q3FY19 as strong 31% YoY growth in North America business (contributing 21% to revenue) was offset by weak India revenue (down 1% YoY), which contributes ~40% of Cipla's revenue. Further, revenue from Cipla SAGA (South Africa, Sub-Saharan Africa and Cipla Global Access) business which is largely tender based, declined by 11% YoY in Q3FY19 impacted by certain one-time low-margin sales both for South Africa and CGA tender business, leading to inventory liquidation. However, South Africa private market continued its strong trajectory growing at 4x the market at 9.1%. Revenue from Europe business grew by 11% YoY in Q3FY19 on the back of expansion in respiratory franchise. Decline in India revenue was primarily due to high base last year on account of...
Loan growth was higher at 12% YoY in Q3FY19 mainly led by 16% YoY growth in the domestic loans (92% of the total loan book). Within domestic credit, corporate advances grew by 21% YoY largely driven by the infrastructure sector (20% YoY). Retail segment continued exhibiting strong growth (18% YoY) led by robust growth in home loans (26.5% YoY). SME continued to grow at a slower pace of 8% YoY as the bank remained cautious in lending to SME after witnessing high levels of stress from this segment. Going forward, we expect advances to grow at a moderate...
Robust US sales; high debt remains a concern Cadila Healthcare (Cadila) is India's leading vertically integrated pharmaceutical company. With its presence across the value chain, it manufactures finished dosage forms, active pharmaceutical...
EBITDA margin contracted 150bpsYoY to 13.2% due to partial pass through of commodity inflation, adverse mix, uptick in marketing spends & discounts. PAT grew by 60%YoY due to higher other income and lower tax. Management expects cumulative volume of three new UVs - Marazzo MPV, XUV300 compact UV, and Alturas luxury UV to touch at 9000 units/m. In addition, new products in CVs & electric vehicles should support volume. We expect revenue CAGR of 8% over FY19E-21E led by strong tractor sales, new planned launches and export sales will drive volume growth....
TechM delivered healthy performance in Q3FY19 with revenue growth of 3.5% QoQ in USD terms (+4.3% QoQ in CC terms), ahead of our estimate. EBITDA margin expansion continued to beat estimate with an improvement of 50...
EBITDA margin came in at 15.6% down by 397bpsYoY due to a) higher commodity cost b) higher discounts c) lower than expected forex realizations. PAT grew by 16%YoY due to higher other income We expects the EBITDA margin to be in range of 16-17% due to competition in the commuter segment. Given its strong brands and robust distribution network, BAL is in a superior position to benefit from export market. We expect revenue CAGR of 10% over FY19E-21E led by strong rural demand, new planned launches and export sales, will drive volume growth....
Hero MotoCorp Ltd. (Formerly Hero Honda Motors Ltd.) is the world's largest manufacturer of two wheelers based in India and also 'World No.1' Twowheeler Company in terms of unit volume sales in a calendar year. It has a total market share of 36% in 2wheeler industry and 50% market share in Motorcycles category. It has 4 globally benchmarked manufacturing facilities; two of these are based at Gurgaon and Dharuhera which are located in the state of Haryana in Northern India. The third manufacturing plant is based at Haridwar, in the hill state of Uttrakhand; the latest...
Q1FY19 revenue grew by 16%YoY supported by strong growth in Digital factory (36%) and Process Industries & Drives (PID-31%) segments. EBITDA grew by 13%YoY while EBITDA margin declined 30bps. Margins improved in all segments except in Mobility and PID....
Mold-Tek Packaging Ltd (MTEP), one of the leading manufacturers and suppliers of high quality airtight and pilfer proof containers/pails in India for Paints, Lubricants, Food and FMCG. MTEP's revenue grew by 12% CAGR whereas PAT grew by whopping 41% CAGR over FY13-FY18. EBITDA margin expanded by 830bps to 18.7% over FY13-18. Strong profitability growth was led by margin expansion on account of increasing share of in-mold volumes....
Q3FY19 revenue grew by 11%YoY led by 14% growth in domestic sales while exports grew by 4.7%YoY. 9MFY19 revenue growth was at 12%YoY. Despite ~200bps decline in Gross margins, EBITDA margins improved by ~50bps due to control on other expenses (-6%YoY). The full impact of the price hike taken by the company is expected from Q4FY19E onwards which will add to the revenue growth. Revenue growth guidance have been revised upward to 13-15% from 1012% for domestic while exports to 4-5% from 3-5% for FY19E. Revenue/PAT is expected to grow at 12% and 8% CAGR over FY18-21E...
CPIL posted 13.5% YoY increase in revenue in Q3FY19 primarily driven by spurt in revenue from MDF (85.4% YoY), laminates (28.6% YoY) and particle board (57.7% YoY) segments. However, decline in revenue from key plywood segment (2.6% YoY) weighed by weak realisation (6% YoY) restricted the topline growth. However, sales volume of Plywood segment increased by 7% YoY. While the growth in MDF revenue was driven by surge in volumes that grew by 105% YoY which helped to offset 10% YoY decline in realisation, improvement in both volumes and realisation...
In spite of a challenging environment and tight liquidity, asset quality improved by write-offs and seasonal improvement. Gross and Net non-performing asset (NPA) ratios (stage 3) improved by 130 bps and 20 bps sequentially in Q3FY19 to 7.7% and 5.8%, respectively. Importantly, the number of NPLs contracts declined QoQ, implying improvement in the underlying trend. However, higher write-offs led to decline (800 bps QoQ) in provision coverage ratio (PCR) to 26.9%. Going forward, we expect rural cash flow to improve with increased government focus on rural initiatives, hence, collections will improve further. Thus, we project Gross/Net NPA ratios...
Gabriel India Ltd (GIL) is one of the leading manufacturers of ride control products viz Shock Absorbers, Front Forks in automotive segments, with a market share of 25 %( 2W, PV) & 75 %( CV). Q3FY19 revenue grew by 14% on the back of strong orders from two wheeler manufacturers (19%YoY) and higher export share. However share from the PV segment declined by 9%YoY. EBITDA margin contracted by 60bps owing to change in product mix and elevated RM cost (+190bps)....
Essel Propack posted 16.7% YoY growth in revenue in Q3FY19 supported by broad-based growth across geographies. AMESA region, largest contributor to overall sales, grew by 13.5% YoY in Q3FY19 led by robust revenue growth in Egypt (up by 54.8% YoY) in both oral and non-oral care categories. Egypt nonoral care category revenue composition improved by 4.9 percentage point (pp) YoY. India revenues grew just 8.9% YoY in Q3FY19 impacted by lower pharma segment volumes due to change in pharma regulations. However, with the issues being addressed by the industry, we expect India business to witness an improved performance going ahead given strong order pipeline coupled with ramp-up of Assam facility and commencement of production of a new laminator in December 2018. The new facility will increase the lamination capacity by 25 million square metres to 80 million square metres per annum....
Strong execution but margin still an overhang... NBCC Ltd (NBCC) is a Navaratna Enterprise under Ministry of Urban development and their business verticals include: Project Management...
Nestle India, a subsidiary of Nestle S.A of Switzerland (~63% share). Nestle is a strong play in the food & beverage space with leadership in ~85% of the product portfolio. The company has presence in milk products & nutrition, beverages, prepared dishes and cooking aids, and chocolate and confectionery. The company has 8 manufacturing facilities in India with products...
Mahindra CIE (MCIE) is among the top global forging players with a strong presence in both Europe and India. Currently 2/3rdof the revenue comes from Europe while the rest is from India. MCIE registered a robust revenue growth of 17.5% in Q4CY18, driven by 15%YoY growth from India and 19%YoY from European business. PBT grew by 30%YoY due to lower depreciation. Despite weak European car sales, the growth was largely led by new orders in Gears & Forging and growth in EU truck sales....
Order book remains robust at Rs12,478cr which is 4.5x TTM revenue, provides improved visibility. We expect revenue to grow at a CAGR of 30% over FY18-21E as PNC achieved financial closure for 7 HAM projects and execution of four project is progressing well....
Mixed bag; strong volume growth while margin disappoints Pidilite Industries Ltd. is a pioneer in consumer and speciality chemicals in India. The company has a diversified product portfolio including adhesives and sealants,...
Q3FY19 revenue grew by 74% YoY supported by strong execution in road, building and electrical division. EBITDA margin stands at 12.2% YoY due to surge in execution of...
