Topline and margins remained under pressure due to weak consumer demand and slower economic growth. Net revenue remained flat at Rs. 1,415cr in Q2FY20 and EBITDA margin declined by 20bps to 7.5% primarily on higher other operating costs (+27.0% to Rs. 140cr). However, adj. PAT rose to Rs. 113cr (+8.7%YoY) primarily benefitting from higher other income (+57.6% YoY to Rs. 73cr). Weaker EMP operations offset growth from UCP segment Voltas recorded robust growth in revenue from UCP segment in Q2FY20 (+19.2% YoY to Rs. 526cr; 37.1% of total revenue) with increased traction and healthy growth in Air...
We reiterate our HOLD rating on the stock with a revised target price of Rs. 758 based on 40x FY21E adj. EPS given the strong volume growth, new product pipeline and improving market share....
Earnings continue to decline as demand slumps Eicher Motors Limited (EML) manufactures motorcycles and accessories. The company owns the iconic Royal Enfield brand and also has a joint...
Vinati Organics Ltd (VOL) enjoys global leadership in two specialty chemicals, with market share of 70% in IBB (isobutyl benzene) and 80% in ATBS (2-Acrylamindo 2-Methylpropane Sulfonic Acid). Q2FY20 Revenue de-grew by 3% YoY, but PAT grew by 69% YoY led by higher operating profit and corporate tax cut. EBITDA margins improved by 310bps YoY to 40.7% due to softer RM price and higher contribution from ATBS. We continue to maintain our positive outlook on the VOL given capacity expansion in ATBS and launch of Butyl phenols, which is expected to drive growth for 2-3 years....
Margin expanded owing to lower lead price Amara Raja Batteries Ltd (ARBL) is India's second largest Lead-acid battery manufacturer. Its segment includes automotive and industrial lead acid batteries, with market leadership in Telecom segment. During Q2FY20, ARBL revenue de-grew by -3.3%YoY, (marginally below our estimate) due to lower auto sales from manufacture's . However EBITDA margin expanded by 370bps to 17.2% on account of sharp decline in Lead price (-3.3%YoY) and better product mix....
Order inflow remains a key catalyst for re-rating... KEC International Limited (KEC) is a global infrastructure Engineering Procurement and Construction major. It has presence in the verticals of Power T&D; (Transmission & Distribution), Cables, Railways and Water & Renewable. Q2FY20 revenue grew by 17% YoY led by improved execution in T&D; (21%), SAE towers (95%) & Railway (35%) YoY....
Loans & Advances declined 6.3% YoY, due to 15.0% decline in the Corporate Banking division representing 61.9% of total loans. Net interest margin (NIM) declined ~60bps YoY and ~10bps sequentially, due to higher cost of funds, fresh slippages and decline in loans. GNPA/NNPA ratio increased sharply to 7.4%/4.4% in Q2FY20 vs. 1.6%/0.8% in Q2FY19, as a result of increasing bad loans. Given the weakening asset quality, declining margins and loan volumes,...
LIC Housing Finance is one of the largest housing finance companies in India. It provides long-term finance to individuals, professionals and builders of residential flats and houses. The company has a wide...
One-off gains lead to better than expected result Dr. Reddy's Laboratories is an Indian pharmaceutical manufacturer. The company is engaged in manufacturing and marketing of over 190...
Bharat Forge Ltd (BFL) is a leading player in the forgings industry. The company is serving several sectors including automobile, power, oil and gas, rail & marine, aerospace, construction, mining, etc. Q2FY20 revenue de-grew by 17%YoY due to the slowdown in export (down by 18%YoY) & domestic segment by 36%YoY. The negativity in growth is largely contributed by both CV and industrial segment. EBITDA margin declined by 440bps with 320bps increase in input cost , and lower utilization resulted in higher fixed cost....
Revenue growth was flat YoY, as supply chain business was impacted by slowdown in Auto sector. But PAT grew by robust 29% YoY on account of tax cut. EBITDA margins improved by 40bps YoY to 9% on account of lower cost....
Q2FY20 revenue rose 2.1% YoY to Rs. 4,662cr vs. 4,567cr in Q2FY19. Although the Jewellery business saw a subdued performance (revenue +0.1% YoY to Rs. 3,649cr), impacted by sudden increase in gold prices, the segment continued to gain market share with +7.2% YoY in 1H20. Revenue from the Watches segment increased 6.1% YoY to Rs. 720cr, yet the segment remained largely under pressure specially the EOB channel, world of titan and FastTrack struggled to perform. Eyewear revenue surged 28.5% YoY to Rs. 154cr on strong retail growth. Margin declines sharply in watches while flat in jewellery...
Tech Mahindra (TechM), a part of Mahindra Group, offers technology services and solutions across Telecom IT & Network Services, Consulting, Application & Infrastructure Outsourcing, Engineering Services, BPO &...
The company reported revenue growth of 5.9% YoY to Rs. 11,750 cr in Q2FY20. Across segments, the growth was led by Agri business (+19.3% YoY to Rs. 2,648cr). Revenue from FMCG business increased 5.2% YoY to Rs. 8,615cr. Growth in FMCG revenue has tapered down due to the weakness in overall demand environment especially in rural markets and wholesale channel, tight liquidity conditions coupled with disruptions and floods in several parts of the country. Despite slowdown in consumption, revenue from Paper boards, paper and packaging grew at 9.9% YoY to Rs. 1,565 cr. Hotel business revenue also rose 17.7% to Rs. 427cr....
Exide Industries Limited (EIL) is a leader in storage battery business with a market share of 60% in India. Its segment includes automotive and industrial lead - acid batteries. Q2FY20 revenue de-grew by -4%YoY owing to negative 2W industry growth of -17%. However strong sales from the aftermarket batteries & home invertor offset further decline. EBITDA margin improved by 160bps due to softening of lead price by -3.3YoY. Adj. PAT grew by 46%YoY....
Pre-buying of BS-VI vehicles and radialisation of tyres could drive growth in the coming years. However, the near-term outlook remains challenging due to sluggish economic growth. We reiterate our HOLD...
Q2FY20 revenue grew by 9.9%YoY aided by strong growth in realisation at 13.4%YoY while volume de-grew by ~3%YoY. Volume decline was mainly due to impact of cyclone in East. Improvement in trade sales in the mix and higher North volumes supported growth in realisation. EBITDA per ton improved to Rs722 from Rs431 YoY mainly supported by realisation growth while total cost increased by 7%YoY . Commissioning of new grinding unit (Odisha 0.8MT) and 20MW thermal power plant in East will bring cost savings while benefit from softening of pet coke prices is expected in coming quarters....
Gross loans grew 12.6% YoY to Rs. 613,359cr, driven by home loans (up 18.6% YoY) and personal loans (up 50.6% YoY). Net Interest Margin was at 3.64% in Q2FY20 up 31 bps YoY. GNPA/NNPA ratio stood at 6.4%/1.6% in Q1FY20 (vs. 8.5%/3.7% in Q2FY19) signaling improving asset quality. Slippages were as per expectations with total slippages for Q2FY20 at Rs. 2,482cr (vs. Rs. 2,779cr in Q1FY20). On a healthy capital position, strong digital growth and improving asset...
HDFC AMC's equity-oriented AUM grew by 11.9% YoY in Q2FY20 to Rs. 1,651bn as against industry' growth of 12.7%, thereby, reducing its equity-oriented assets from 47.7% in Q1FY20 to 45.1% in Q2FY20. Actively managed equity-oriented AUM stood at Rs. 1,637bn with market share of 15.8% in Q2FY20 vs Rs. 1,689bn in Q1FY20 (market share of 16.2%), mainly due to change in product mix. Individual investors contributing Rs. 2,180bn to the present HDFC AMC's AUM represent 57.4% share as against 54.1% for the industry, making it the most preferred choice. The company has over one-fourth of industry total unique customers (5.5mn unique customers out of...
In Q2FY20 Tata Motors Limited (TML) posted consolidated revenue of Rs. 65,432 cr (down 9.2% YoY) on continued weaker sales volume. TML standalone revenue dropped by 44% YoY while revenue from Jaguar Land Rover (JLR) recorded decent growth of 7% YoY. Retail sales in china was the main driver of growth for JLR as it increased 24.3% YoY...
