ICICI Securities Limited Broker Research reports

As expected, Trent reported a washout Q1FY21. High store concentration in worst hit Coivd-19 states (~ 17%, 16% of Westside, Zudio stores in Maharashtra) and higher presence in malls (~50% for Westside, 25% for Zudio) further hampered store operations due to stringent measures by local authorities. Subsequently, the company reported revenue de-growth of 87% YoY to | 96.3 crore (April: 0%, May: 8%, June: 32% pre-Covid sales YoY). The company made provisions worth | 40 crore towards inventories that led gross margins to contract substantially to 13.3% vs. 53% in Q1FY20....

In 2014, IDFC Ltd received a license to set up a universal bank IDFC Bank. To strengthen retail franchise, IDFC Bank, Capital First Ltd engaged in a merger to form IDFC First Bank in December 2018. Currently, IDFC Ltd holds 40% stake in IDFC First Bank. Apart from banking, IDFC Ltd owns a Mutual Fund (100% owned). Its AUM stands at | 103893 crore of which equity AUM...

Consolidated revenue came in at | 665 crore, down 52.2% YoY (vs. our estimate of | 716.4 crore) on the back of slower execution owing to covid19 lockdowns. Energy segment revenue (that contributes ~75% to revenue) fell 57% to | 500.4 crore YoY while environment segment revenue fell 43% to | 83.9 crore and chemical segment revenue was at | 84.3 crore, down 13.8%, YoY. It posted a loss of | 11.4 crore at the EBITDA level (vs. EBITDA of | 99.1 crore in Q1FY20), owing to higher employee expenses, other operating expenses and less booking of revenue. Consolidated loss after tax came in at | 15.3 crore (vs. PAT of | 62.8 crore in Q1FY20), partially impacted...

Natco has carved out its own identity via tie-ups to tap limited but niche products pipeline including 20 Para IVs filings (FY20). As per the revised and more feasible game plan, it plans to market products via tie-ups with established players in the generic space. Till FY19, the company had filed 51 ANDAs, which includes some niche FTF opportunities. Overall, the...

While the topline performance is expected to remain fairly subdued in FY2022E, margin trajectory is seen improving, largely on the back of actions initiated on the cost front. ALL's cost savings programme K54 has delivered benefits worth ~| 500 crore in FY20, with the focus remaining on driving further efficiencies across areas in coming quarters. Modular programme AVTR is also seen helping by reducing inventory needs and production complexity. ALL expects to close FY22E with much better profitability levels than FY20. We build uptick in margins to 10% by that time, also factoring in...

US key growth driver despite recent compliance upheavals After filing its first ANDA in the US in 2003, the company has come a long way as current ANDA filings are at 604. US revenues have grown from ~US$100 million in 2009 crossing $1.6 billion sales as on 2020. In rupee terms, US sales have grown at 17% CAGR to | 11484 crore in FY16-20. US formulations now constitute 50% of total turnover, up from 30% in FY13. Despite calling off the acquisition of Sandoz' US dermatology and oral solid portfolio, we expect US revenue size to reach | 14925 crore in FY22E at a...

Graphite India (GIL) reported a subdued set of Q1FY21 numbers wherein it reported a consolidated loss at the EBITDA, PAT level. During the quarter, the performance was impacted by inventory write down taken by the company. For Q1FY21, GIL reported a consolidated topline of | 409 crore (down 58% YoY, 32% QoQ), compared to our estimate of | 335 crore. Better than expected topline was on account of higher-than-expected capacity utilisation. Consolidated capacity utilisation in Q1FY21 was at 36% (75% in Q1FY20, 41% in Q4FY20), higher than our estimate of 30%. Consolidated...

Ashoka Buildcon's (ABL) performance was a mixed bag in Q1FY21. Revenues de-grew ~35% YoY to | 572.4 crore on account of weaker-thanexpected execution during the quarter owing to Covid-19 led challenges such amid lockdown and labour shortage. Reported EBITDA margin was up 180 bps YoY to 14.3%, mainly on account of release of contingencies on account of project completion. RPAT grew 11.9% YoY to | 68.1 crore on account of higher other income (driven by insurance claim and restructuring of equipment loans) and higher reported EBITDA. Order book at | 8,617 crore as of Q1FY21...

For Q1FY21, both freight and supply chain segments experienced heavy disruptions. While the supply chain segment, which largely caters to the automobile segment, continues to scale up with the sustained revival in the operations and demand for the automobile sector, the freight segment is increasingly seeing its operations normalising (E-way bill data for July showed 80-90% normalisation). The shipping division, similarly, de-grew 14% owing to lower fleet utilisation. Due to the capability to serve diverse sectors in its freight segment, TCI increased exposure to providing logistics...

The current quarter was impacted by lower volumes from top client. However, FSL expects contribution of top client to gradually improve from 13.7% of topline in Q1FY21 to 20.3% in Q4FY21E. Also, the company is seeing traction in its mortgage business (led by new home sales and may see better growth if delinquencies increases) and improvement in healthcare business. Further, six new logo wins in BFS, new logo win in media & communication, traction in UK retail & BFS and improvement in payer business is expected to drive revenues. In addition, FSL's strategy of...