ICICI Securities Limited Broker Research reports

Focus on cost efficiencies to drive margin expansion Being predominantly a north (8.2MT capacity) and central (3.5 MT capacity) player, the company has got structural advantage of balanced supply and demand environment in these two high growing regions. Further, selfsufficiency in power, through captive power plant (CPP) of 54 MW, waste heat recovery (WHR) plant of 14 MW and solar power plant of 6 MW has helped the company to reduce reliance on costly grid power. In the eastern region, the company has already commissioned its 7 MW WHR plant and has recently commissioned CPP of 20MW, to become self-sufficient. To...

Weakness was seen across KPIs. ARPU decline of ~6% QoQ, vis--vis peers who reported ARPU growth, was owing to extension of validity of low cost customers during lockdown, SIM consolidation by its customers and postpaid sub base decline. The subscriber base fell by 11.3 million to 279.8 mn. The 4G sub base saw a modest decline of ~1 mn QoQ to 104.6 mn, clearly reflecting pressure on its high paying customers. Even the post-paid sub base at 21.5 mn was down by 1.5 mn QoQ, owing to fall in POS connections where SIM was requested to be put in safe custody by customers. Cost rationalisation plan of | 4000 crore in next 18 months...

TV Today reported a weaker than estimated set of numbers in all segments for Q1FY21 led by sharp de-growth in the broadcasting segment. Operating revenue fell 31.9% YoY to | 167.7 crore with TV broadcasting revenue at | 137.8 crore (33.7% YoY de-growth) due to low ad volumes and high base effect (general elections in Q1FY20). Radio segment reported a sixth consecutive quarterly de-growth with revenues declining 70% YoY at | 20 lakh. Growth momentum of digital revenue came to a halt. It fell 4.6% YoY at | 27.6 crore. EBITDA was at | 30 crore, down 59.7% YoY as the topline...

It is likely to be a weak FY21 for the tiles industry, as a whole, with a washout H1, discretionary nature of demand and real estate demand pressure. Kajaria, however, with a net cash balance sheet and superior brand, is likely to tide over the challenging times and even capitalise on market share gain during recovery phase. We raise our earnings estimates by 4% and 8%, respectively, given the commentary by management on production and demand traction. However, we would turn constructive once sustained volume recovery is seen. We maintain our HOLD recommendation on the...

Provision surged 106% YoY to | 84 crore, including Covid related provisioning of | 32 crore. Total Covid provisioning as on June 2020 was at | 95 crore i.e 40 bps of advances. In addition, the bank has additional floating provisions of | 99 crore i.e ~0.4% of advances. PCR was at ~75.2% against 70.8% in Q4FY20. Slippages were lower at | 5.2 crore, on the back of standstill asset classification. GNPA and NNPA ratio declined 2 bps and 17 bps QoQ to 2.44% and 0.99%, respectively. Advances growth saw continued deceleration to 4.2% YoY to | 25058 crore...

Under the terms of the agreement, all Majesco US (US entity) shareholders of record will receive $16 cash for each share of Majesco US common stock held by them upon closing of the transaction. Majesco US board of directors have unanimously approved the merger and recommended that shareholders approve the merger. Majesco India board also approved the revised transaction on August 8, 2020. In order to enhance successful completion of the proposed transaction, under the Revised Support Agreement, the specified promoters have agreed, in their individual capacity...

Domestic tractor industry is continuing to be at the forefront of post-Covid automotive recovery in India. Against overall auto industry's ~36% YoY fall in July retail volumes, tractor segment volumes rose 35%. M&M;, as market leader with dominant 41.2% domestic market share as of FY20, is also benefitting from present sector tailwinds. Rural income levels stay on a relatively firmer footing with cash flows healthy on the back of strong Rabi harvest, rise in crop MSPs, healthy water table levels. Moreover, amid ongoing normal monsoon progress (1% above LPA as of July 31), strong...

Sharp decline in Q1 revenue amid lockdown Consolidated revenue fell ~56% YoY to ~| 878 crore in Q1FY21 due to sales loss for almost 40 days in domestic operations amid lockdown. The standalone revenue fell ~57% YoY led by ~58% decline in volume mix. Overseas subsidiaries recorded revenue de-growth of ~36% YoY led by revenue decline of ~49%, ~30% and ~25% YoY in Asia, Middle East and America regions, respectively. Further, domestic subsidiaries also recorded a sharp revenue fall of 82% YoY led by sharp fall in volume. Post relaxation...

Stepped up exports to bring down inventory Dwarikesh sugar has aggressively exported sugar in 2019-20 sugar season. In the third tranche of re-allocation, the company received ~20,000 tonnes for export quota. In the full year, the company will be exporting 1.4 lakh tonnes. However, it has crushed 20% higher sugarcane in current season due to early closure of small scale Jaggery units in surrounding areas, which has led to the higher sugarcane availability for its units in Bijnore'. We estimate sugar sales volume of 4.65 lakh tonnes (including exports of 1.4...

The 30-year concession agreement between GPPL, Gujarat Maritime Board (GMB) and Gujarat government ends in CY28. Upon expiry of the agreement, all assets have to be handed over to GMB based on valuation provided by an independent third party. The company, however, has received approval from its global parent to incur US$97 million on upgrading its container facility and increasing its yard capacity to 1.6 million TeU (current capacity 1.35 mil TeU). GPPL will require written permission from GMB authorities for extension of the concession agreement before incurring the capex. The...