ICICI Securities Limited Broker Research reports

The Covid-19 led lockdown hit ad revenues, which fell sharply by 65.8% YoY. In the current quarter, ad revenues recovered partially and currently are at 75% of pre-Covid levels. Ad spends from FMCG, e-commerce, auto, consumer durables, pharma are seeing a pickup. Sun has reduced ad minutes to maintain ad rates and will increase it once normalcy returns. Also, original fiction programming across all languages resumed with better than pre-Covid viewership in Tamil market. The management indicated start of festive season and pent up demand will lead to recovery in ad revenues....

Ramco Cements' Q1FY21 numbers broadly remained above our estimates with better net profitability. The company reported a 24.6% YoY drop in revenues to | 1,048 crore (vs. I-direct estimate of | 934 crore). This was mainly led by 28.3% fall in sales volume during the quarter to 1.94 MT (vs. I-direct estimate: 1.8 MT) as the company's operation were impacted from mid-March due to imposition of lockdown. On the other hand, realisations remained better, increasing 5% YoY to | 5,408/tonne (vs. I-direct estimate: 5043/t). Total costs per tonne increased 6.6% YoY to | 4051/t. This was led...

Gas transmission segment volumes were down 14.4% YoY at 90.2 mmscmd (our estimate: 97.5 mmscmd) as offtake was lower due to impact of lockdown. Going ahead, we estimate transmission volumes at 109 mmscmd, 127.5 mmscmd for FY21E, FY22E, respectively, due to additional domestic gas from newer fields. The gas transmission EBIT at | 716.7 crore, was down 16.6% YoY but above our estimates due to lower costs. Gas trading volumes declined 15.9% YoY to 81.2 mmscmd. Gas trading reported loss of | 545.5 crore (estimated profit: | 214.9 crore) as the company had to...

Action's Q1FY21 performance was dire as the company registered a loss. Crane segment (~70% of revenue in FY20) was the worst hit due to standstill in infrastructure activities. Revenue for the quarter was at | 100.9 crore, down 65.6% YoY. Crane segment revenue was at | 49.8 crore, down 77% YoY. Total crane volumes were at ~299 units vs. ~1316 units in Q1FY20. Gross margins expanded ~160 bps YoY on account of lower input costs & trade purchases. However, unabsorbed fixed overheads led ACE to report an EBIDTA loss of | 3 lakh. On the expenses side, employee expenses...

NII growth was healthy at 4.8% YoY to | 437 crore on account of stable margins. NIMs were down 13 bps YoY to 3.98% (flat QoQ). Other income was at | 161 crore mainly supported by healthy growth in treasury income. Muted topline growth coupled with controlled opex led operating profit to come in at | 356 crore, up 1.3% YoY, 6% QoQ. QoQ drop in provisioning led PAT to come in at | 154 crore against loss of | 95 crore in Q4FY20. Fresh slippages reduced to | 3 crore on account of standstill asset classification norms. GNPA and NNPA were down 19 bps & 18 bps QoQ to...

Revenue from Lifestyle brands de-grew 81% YoY to | 190.0 crore. It reached 30% of pre-Covid sales in June (LTL: 50%). Aligning with the current demand scenario, it tweaked its product portfolio by launch of work from home collections, merchandise focused on around health & safety and protective masks (~50 lakh branded masks sold). The company fortified its digital presence as sales in June from e-commerce channel grew 166% YoY (share of e-commerce rose to 21% in Q1FY21 vs. 6%). Revenue from other business (that includes innerwear & athleisure) de-grew 77% YoY to | 47.0...

CPI inflation for July 2020 rose further to 6.93% compared to upwardly revised June data at 6.23%. Similar to last month, the supply related disruption in food items, higher petrol, gold prices and unfavourable...

Commercial rental remained stable with rent collection at 98% in Q1FY21, while no new leasing was seen. In the operating lease portfolio, it has an active leasing pipeline of 0.8 msf, spread across Bengaluru (0.6 msf), Kochi (0.2 msf). Also, WTC Chennai (leasable area 2 msf of which 0.34 msf yet to be leased), BTG Bengaluru (leasable area 1.76 msf of which 1.55 msf yet to be leased) will start getting rentals from January 2021, Q3FY21, respectively. In terms of malls, footfall is at 20-25% of pre-Covid level. It has given 50% concession on rent during the lockdown period and lower minimum...

Domestic CV industry remains beset by various demand side (soft economic activity, sluggish freight movement) and supply side (excess capacity, high installed base, stringency in financing) issues, with demand outlook yet to take a turn for the better amid missing green shoots. EML's exposure to the sector through 54.4% stake in VECV is likely to eat into expected improvement on the 2-W side and, thus, crimp overall profitability. We build | 72.3 crore as share of losses from VECV in FY21E and with recovery of CV...

Execution is likely to pick up only in H2FY21 gradually while order inflows, cost rationalisation have been a positive surprise. The controlled debt levels also remain a solace. We highlight that execution traction and dues from AP will be key monitorables, going ahead. We also believe receipts from arbitration will be a big boost to liquidity amid the tough times. We note that NCC is currently trading at attractive 6.4x FY22E P/E. However, we would turn constructive only when we see an improvement in execution. We...