ICICI Securities Limited Broker Research reports

HEG reported a subdued set of Q1FY21 numbers on account of a muted operational performance wherein it reported a loss at the EBITDA level. For standalone operations, topline came in at | 233.3 crore (down 71% YoY) & reported EBITDA loss came in at | 11.3 crore (vs. EBITDA profit of | 347.8 crore in Q1FY20). For the quarter, it reported a negative EBITDA margin of 4.8% compared to positive margin of 42.6% in Q1FY20. During the quarter, as the lockdown was in force for a significant period, the company's operations and financial results were impacted. On account of Covid-19...

Headwinds continue for India business amid challenges Elgi's domestic air compressor sales remained subdued in Q1FY21. The company is on track in its strategy to curtail employee cost and reduce fixed cost by 15-20% in FY21E primarily in India business. Elgi has seen activities across all major industries and expects some revival in capacity building with smaller incremental investments by industries. Its disrupted AB series oil free compressor that is gaining good traction in India as well as abroad. After-market (~24% to India topline), is likely to start gaining traction from...

Efforts to be more efficient to get visible from FY22E onwards FY21 has brought in new challenges to operate in the pandemic environment. In the first full quarter of lockdown, most of EIH's properties remained closed. Also, currently it is doing business of only 15-18% of its normal run rate. While there is uncertainty on the recovery, which is solely dependent on the launch of vaccine, the company has initiated major steps to bring down costs and come out stronger and more efficient once normalcy resumes. During the quarter, the company managed to reduce...

Indian Bank reported its first quarter of merged numbers with Allahabad Bank. The amalgamation of the bank came into effect on April 1, 2020. The bank reported a steady performance on business growth but higher provisioning arrested PAT growth. Provisioning for the quarter was elevated at | 2139 crore, up 18.6% YoY mainly on the back of 100% provisions for two fraud accounts at | 1133 crore. The bank provided | 112 crore for Covid-19 in the quarter. Total Covid provisions held as on June 2020 were at | 632 crore (~17 bps of advances)....

BS-VI likely to impact auto volumes; slowdown in FY21E In Q1Y21, GCL's engine volume (3-W) fell 83% YoY to 11216 units while 4W volumes was nil. Volumes are likely to be impacted by strict BS-VI norms and auto slowdown amid Covid-19. Other engines segment de-grew 55% YoY to 5155 units. Overall engine volumes de-grew 79% YoY. On non-auto side, power genset volumes fell 75% YoY to 275 units. Overall agriculture (pumpset, power tiller, other) volumes declined 69% YoY to 6317 units. GCL may have to take a price hike of 35-45% for BS-VI compliant engines leading to significant volume reduction and margin stress as it is difficult to...

Voltas lost almost 40 days of sales due to lockdown and reported ~51% YoY fall in revenue in Q1FY21. Revenues from UCP, electro-mechanical projects (EMPS) and engineering & product services declined ~60%, 37% and ~36%, respectively. The drag on EMPS business was largely on account of slow execution of international and domestic orders amid strict government regulations. Despite a strong order book of | 7663 crore, the lockdown situation may impact the pace of execution, job closures, thereby resulting...

Balkrishna Industries (BIL) reported healthy Q1FY21 results under the circumstances. Decline in standalone revenues was limited to 22.2% YoY (| 929 crore), tracking 25.7% decline in total tonnage to 38,096 MT during the Covid impacted quarter. Encouragingly, the company expects to close FY21E with similar volume levels as FY20 (~2 lakh MT). EBITDA in Q1FY21 was at | 230.6 crore, down 13.9% YoY, 38.1% QoQ. Margins fell 262 bps QoQ to 24.8%. QoQ decline in margin performance was on account of negative operating leverage although gross margins recorded a strong 511...

US generics comprise ~30% of total revenues. So far, the company has received approval for 164 ANDAs while another 44 are pending approval, of which 24 are Para IV applications. However, Glenmark's derma portfolio is facing stiff pricing pressure in the US. Going ahead, traction from the newly commissioned US based Monroe facility will be the key determinant besides sustained product launches. We expect the US to grow at 5.2% CAGR in...

Although half of the quarter saw no supplies, the situation was further escalated by the taxation impact of various states. However, June saw 57% de-growth in volumes compared to 77% for the quarter, which also saw reduction in taxation levels by several states. West Bengal, Odisha and Andhra excise hike was more impactful than other states (90% volume decline in the east). UP saw decline of mere 46%. However, with further opening up of the economy, we expect the situation to normalise in the medium to long term. The company continues to remain virtually debt-free...

Tata Steel reported subdued Q1FY21 results wherein consolidated topline came in line with our estimate while consolidated EBITDA was notably lower than our estimate. The EBITDA/tonne of both Indian, European operations came in lower than our estimate. Standalone operations reported sales volume of ~2.1 million tonnes (MT). European operations reported steel sales of 2.0 MT, marginally higher than our estimate of 1.9 MT. Tata Steel BSL reported sales volume of 0.7 MT (higher than our estimate of 0.65 MT). Consolidated topline was at | 24289 crore (down 32% YoY, 28% QoQ),...