The bank has provided for INR 16,502 Cr of net provisions during the quarter, down 41% YoY/ up 174% QoQ translating in credit costs of 3.22%, an improvement of 178 bps YoY /down 52 bps QoQ. Asset quality improved with GNPAs at 7.53%, improving by 338 bps YoY / 118 bps QoQ while NNPAs at 3.01% was 272 bps better on sequential basis and 94 bps better annually. PCR stood at 78.7%....

Incorporated in 1985, Minda Corporation Ltd. (MCL) is the flagship company of Spark Minda, Ashok Minda Group, the erstwhile Minda Group. One of the leading automotive component manufacturing companies, it has pan-India and international presence. The company operates through three business verticals Safety, Security & Restraint, Driver Information & Telematics and Interior Plastics for auto OEMs. Their products cater to 2/3 wheelers, passenger vehicles, commercial vehicles and after market. It has 34 manufacturing facilities in India (28 plants & two offices) & South-East Asia (2 plants & one representative office in Japan), Europe...

Net sales came at INR 7.2 bn, (+23.1% YoY and -4.0% QoQ) driven by higher realizations but lower CNG and domestic PNG volumes on a YoY basis. Total sales volume for Q4 registered a growth of 7.4% YoY while declining by 0.74% QoQ primarily due to lost CNG volumes (-1.1% QoQ). Gross margins declined to 49.3% on a YoY basis (-109 bps) due to higher gas costs (+25.8% YoY) and a higher excise duty out-go (+24.5% YoY). OPM was further negatively impacted (-40 bps YoY, -216 bps QoQ) to 29.6% owing to higher employee costs (+15.0% YoY, +6.2% QoQ) and other expenses (+19.6% YoY, +9.7% QoQ). EBITDA stood at INR 2.1 bn. (+21.5% YoY, -10.5% QoQ). Lower finance cost (-44.4% YoY, -16.7%) and higher other income (+37.3% YoY, +16.9% QoQ) aided PAT at INR 1.3 bn (+27.4% YoY, -10.0% QoQ). The tax rate remained nearly unchanged at 34.9%. NPM declined by...

ICICI Bank delivered 14.5% YoY growth in advances while deposit mobilization clocked a solid 16.4% YoY growth in Q4 FY19. Domestic loan book growth of 16.9% YoY was primarily driven by Retail loans which grew 21.7% YoY and accounted for 60% of the total advances. NII stood at INR 27,015 Cr., up 17.3% YoY for FY19 and for Q4FY19, the NII came at INR 7,620 Cr., up by 26% YoY/+10% QoQ. NIMs at 3.58% in Q4FY19 expanded 45 bps YoY (up 18bps QoQ). Retail business supported the bank's asset yields (+72 bps YoY) in Q4FY19 at 8.12% for Q4 FY19 while cost of funds declined by 25 bps sequentially to 4.76% on account of higher CASA deposits. Bank's asset quality improved with GNPA levels down to 6.7% in Q4 FY19, reducing by 214 bps/49 bps on a YoY/QoQ basis, respectively....

Maruti Suzuki India Ltd's (MSIL) Net Sales (ex-GST) stood at INR 207,375 Mn, a marginal increase of 0.7% YoY (+9.6% QoQ). Volumes remained almost flat YoY (+7% QoQ). Total revenue from operations of INR 214,594mn, a growth of 1.4% YoY (+9.1% QoQ) slightly above our estimates of INR 211,425 Mn. EBITDA contracted by 373bps YoY to 10.9% (+71 bps YoY) indicating margin pressures. Management indicated that despite cost reduction efforts, the impact of adverse foreign exchange/ commodity prices and higher expenses for sales promotion and costs related to Gujrat plant negatively impacted profitability during the quarter....

Tata Elxsi (TELX) reported revenue growth of 7.9% YoY (flat QoQ) to INR 4,051mn. Net Profit was marginally up by 1.4% YoY to INR 713mn (+8.0% QoQ) with NPM of 17.6% (down 113bps YoY). By Segment: The growth was led by Software Development & Services (SDS) segment which recorded a growth of 8% YoY (down 1.2% QoQ) and accounted for 96% of total revenue. Revenue growth was also supported by the System Integration and Support Services (SISS) segment which grew 5.4% YoY to INR 162mn (+19.8% QoQ) Cues on the margin front were mixed. EBIT contracted by 104bps YoY to 22.7% in Q4FY19 (down 120 bps QoQ). PBT margin in its key SDS segment witnessed a ~556 bps contraction on a YoY basis while the SISS segment saw a 408bps expansion....

Sterlite Tech reported good set of numbers in Q4 FY19 driven by increase in revenue contribution from service and solutions business. Revenue recorded remarkable growth of 111.56% YoY and 34% QoQ to INR 17,912 Mn driven by early execution of the navy order. EBITDA stood at INR 3,151 Mn, an increase of 7.19% QoQ and 43% YoY while margin reported at 18% which is down 800bps YoY and 400 bps QoQ. Decrease in margin was primarily driven by the increase in execution of service orders and softening of fibre prices. Order book remains robust at INR 105160 Mn, which is 2x of FY19 revenue and gives us a good revenue visibility. The order book consists of INR 55000 Mn worth of orders for Product whereas INR 50000 Mn for Services and Software. Net Profit came at INR 1652 Mn. for the...

HDFC Bank delivered a 24% yoy growth in the loan book while deposits grew 17% yoy for Q4 FY19. The retail loan book grew 19% yoy while the CASA ratio fell by 112 bps over last year to 42.4% . C/D ratio stood at 88.8% in Q4 FY19 vs 91.6% in Q3 FY19. NII at INR 13089 Cr. is up 22.8% yoy/4.1% qoq. NIMs at 4.54% have expanded by 11 bps yoy/3 bps qoq in Q4 FY19 while Non-interest income grew 15% yoy ( almost flat on a sequential basis) Cost of Funds also improved for the bank on sequential basis by 20 bps while increasing by 28 bps on YoY basis. Asset quality improved with GNPAs reducing by 2bps sequentially to 1.36% while credit costs were mostly stable. PPOP at INR 10,844 Cr. is up 22.7% yoy/0.6% qoq on back of NIM expansion and control over operating expenses....

TV18 reported its Q4 FY19 results with a consolidated net revenue of INR 11,815 Mn, a decline of 20% qoq. EBITDA stood at INR 517 Mn in Q4FY19 . EBITDA Margins were reported at 4.37% in Q4 FY19 vs a margin of 7.78% in Q3 FY19. EBIT came in at INR 173 Mn. Net Profit for Q4 was reported at INR 282 Mn. EPS for the quarter stood at INR 0.16 vs INR 0.02 in the previous quarter....

TCS delivered solid constant currency (cc) revenue growth of 12.7% yoy (+2.4% qoq) in Q4 FY19 while the USD Revenue increased 8.5% yoy to USD 5,397 mn (+2.8% qoq) in line with our expectations. In Rupee terms, top line increased 1.8% qoq to INR 38,010 Cr. (+18.5% yoy). Operating margin of 25.1% in Q4 FY19 was down 52 bps qoq (down 31 bps yoy) impacted by slightly higher direct cost as % of revenue....

Revenue in constant currency terms grew 11.7% yoy to USD 3,060mn in Q4 FY19 (up 2.1% qoq) which was above our estimates of $3,031 mn. The revenue growth was supported by improvement in global IT spending environment across key verticals, especially Communications and Healthcare. Operating margin of 21.4% in Q4 FY19 was down 113 bps qoq (down 191 bps yoy) impacted by higher direct cost % of revenue. By Geography: North America remained strong with 3.7% qoq in revenue on CC basis while Europe business advanced 1.4% qoq. 4QFy19 revenue from India/rest of the world declined 9.1%/1.3% qoq, respectively. By Industry: BFSI remained under pressure with revenue on cc basis down 0.8% qoq while Retail declined 0.9% qoq. However, Communication vertical saw a robust growth of 16.6% qoq. By offering: Digital Revenues (33.8% of total business) registered a strong 9.7% qoq growth (+41% yoy) while the Core business was down 1.4%...

Fee income at INR 10.2 bn continued to exhibit strong growth, up 26% yoy. The bank delivered a PPOP of INR 21 bn, +21% yoy/3% qoq while simultaneously improving opex/assets ratio (at 2.57% vs 2.66% in Q2FY18 and 2.56% in Q1FY19). Provisioning at INR 3.5 bn includes provision on investments of INR 1.3 bn and was up 63% yoy/down 25% qoq. Credit costs of 51 bps is lower sequentially owing to low MTM losses as compared to Q1FY19. PAT at INR 11.4 bn was up 15% yoy/ 11% qoq, translating into ROE of 11.6%. GNPA at INR 40.3 bn was up 3.4% qoq translating into stress of 2.15%, down 2 bps qoq. NNPA was 0.86%, flat qoq and PCR stands at 62.8% (+196 bps qoq). CAR stands at 18%. The...

Reliance Industries Ltd (RIL) reported net sales for the quarter at INR 1,433.23 bn (+11.3% QoQ, +56.7% YoY) driven by robust performance in the petchem and its consumer businesses retail and telecom. The petrochemical segment reported a strong performance with revenues at INR 437.4 bn (+8.6% QoQ, +56.2% YoY) from increase in volumes as well as higher realizations for petchem products as a result of higher crude prices. Production came in at 9.4 MMT (2.17% QoQ, 18.9% YoY) led by stabilization of the ROGC cracker and the new Px facility. Under the refining segment, the GRM stood at $9.5/bbl below market expectations while outperforming benchmark Singapore Complex margins by $3.4/bbl. The lower GRM was attributed to higher crude prices and tighter product cracks on a sequential basis. Retail segment reported a strong performance with revenues at INR 324.3 bn (+25.3% QoQ, +121.5% YoY) with 213.5% YoY growth in EBITDA driven by accelerated store expansion and strong value proposition. NPM for the quarter...

HDFC Bank (HDFCBK) reported PAT of INR 50.1 bn, +21% yoy/9% qoq translating into ROA/ROE of 1.8%/15.2%. Advances growth at 24.1% yoy/6% qoq was commendable given the tough environment, driven by 24% yoy growth in retail and 25% yoy growth in corporate book (loan mix retail/ corporate stands at 53%/47%). Unsecured lending continued to grow at hgiher rates with PL up 37% yoy and CC up 31% yoy. Business banking (BB) is witnessing growth taper off with yoy growth at 19% (vs. 45% avg over Mar'17-Jun'18). Auto grew by 16% yoy and CE/CV grew by 26% yoy. Though the bank is witnessing some pricing pressure in the CE/CV segment on account of competition, yields on the incremental book are higher. NII growth at 21% yoy/9% qoq lagged loan book growth (on yoy basis) on account of NIM compression (-10 bps yoy). Sequentially, NIMs were up around 10 bps, benefitting from the capital raise done during the quarter. Considering the rising rates scenario, the bank has been prudent in parking funds in tbills/bonds in order to create liquidity on the balance sheet (LCR at 118%). CASA, up 18% yoy (vs. deposits growth of 21% yoy), stood at 42%. The bank...

IndusInd Bank (IIB) reported a strong operational performance with advances growth of 32% yoy/8% qoq, led by robust traction in both corporate banking (+35% yoy/10% qoq) and consumer finance (+29% yoy/+5.6% qoq). Despite the above-industry growth, IIB witnessed NIM compression; contracted by 6 bps qoq/8 bps yoy to 3.94% resulting in NII growth lagging at 21% yoy/4% qoq. 25 bps increase in cost of funds qoq was disproportionately larger, offsetting 13 bps increase in advances yield. However, as re-pricing of the back-book catches up, we expect NIM pressure to subside. Opex at INR 15.3 bn grew 11% yoy/1% qoq translating into C/I of 43.4% (-80 bps qoq, -230 bps yoy). Despite strong PPOP growth of 22% yoy/4% qoq to INR 20 bn, heavy provisioning weighed down on bottom-line profitability. Provisioning at INR 5.9 bn (including INR 2.8 bn towards ILFS) translated into credit costs of 102 bps (vs. 63 bps average for preceding 5 qtrs). The bank continued to improve on its asset quality with GNPAs at 1.09%, down 6 bps qoq / NNPAs at 0.48%, down 3 bps qoq. Net accretion to GNPAs during the quarter was INR 0.4 bn (11 bps net slippage). Capital...

OVERVIEW concentrated India, diversified financial services Annual Report FY18 The Indian financial services space was always inhabited by a few visionary groups for whom demonetisation was a boon and the event only accelerated their agenda of financialization. One such visionary group is Kotak which offers financial products across the board credit, deposits, wealth management, broking, life insurance, general insurance, investment banking, asset management, auto loans. With such a vast array of products in its kitty, the opportunity to cross-sell across the group is large. For example, 50% volume for life and general insurance comes from Kotak's own distribution network. In this note, Decoding Kotak, we have tried to dissect each of the main subsidiaries that we believe will continue to grow larger and will be instrumental in driving synergy benefits and cross-sell opportunities as well as improving profitability level at the group level. While 811 continues to be the bank's strategy to acquire customers, our recent interaction with the bank...

CCAvenues registered a growth of 128% YoY in payment processing to INR 102.45bn. Total number of transactions processed volume stands at 27mn translating into ticket value of INR 3,795/transaction. Adjusting the exception items to the tune of INR 75mn, EBITDA for the qtr remained at INR 45.9mn (-78% QoQ, -69% YoY). Adjusted OPM for the qtr stands at ~5%, which was dropped by 1557bps YoY. The drop is largely attributable to management's strong focus of improving the transaction size resulting into higher payment processing charges along with delay in recovering MDR charges for transactions below INR 2000 had impacted financial performance during the qtr. Adjusting exceptional item to the tune of INR 107mn (INR 32mn impairment on investments, INR 50mn stamp duty impairment, INR 25mn MDR...

Revenue grew by 24.4% YoY to INR 20.9bn against our estimates of INR 19.6bn. The growth was led by agro processing segment (+39% YoY). Further, steady growth from Hi-tech and plastic segment also supported overall growth for the qtr. The revenue from hi-tech segment was up by 17% YoY to INR 10.1bn, while the same from plastic remained higher by 15% YoY to INR 5.9bn supported by low base. OPM dipped by 101bps YoY to 12.9% due to contraction in operational performance into Hi-tech and agro segments. OPM for both segment fell by 78bps YoY & 229bps YoY respectively. On the other side, plastic segment OPM improved by 65bps YoY to 9% due to improvement in the sales mix of PE. EBITDA grew by 15.4% YoY to INR 2.7bn against our estimates of INR 2.6bn. PAT was up by 84.4% YoY to INR 0.8bn against our estimates of INR 0.5bn. The beat is due to higher other income (+356% YoY)....

Net sales came in at INR 12.8 bn (+24.1% YoY, +6.0% QoQ) due to increased volumes from both CNG and PNG segment. Total gas sales volumes were reported at 505 mmscm v/s 446 mmscm in Q1FY18 (482 mmscm in Q4FY18). CNG volumes increased by 10.1% YoY while PNG volumes increased by 18.3% QoQ with the highest growth coming from the industrial/commercial segment at 28.9% YoY. Gross margins were dented by 475 bpd YoY and 185 bps QoQ to 42.4% due to increased cost of NG resulting in a higher RMAT (+35.3% YoY, +9.6% QoQ). OPM was further negatively impacted by 381 bps YoY and 108 bps QoQ to 22.9% from higher operating expenses (+18.3% YoY, +2% QoQ). EBITDA stood at INR 2.95 bn (+6.4% YoY, +1.3% QoQ). Other income was higher 46.8% on a YoY basis at INR 262 mn. However, this was negated by higher finance costs (+55.6% YoY) resulting in a PAT margin of 13.7% (-188 bps YoY and -73 bps...

The Company reported net sales at INR 6047 mn as against our estimates of INR 5733 mn; which grew by 34% YoY and 10% QoQ. Better realizations under Specialty Carbon Black (SCB) segment and Coal Tar Pitch (CTP) segments combined with healthy volumes aided the top line growth for the company. EBIDTA (excl. FX losses) stood at INR 1408 mn (+40% YoY; 11% QoQ). EBITDA/ton surged to INR 14,190/ton (+33% YoY; +9% QoQ). OPM came in at 23% in line with our estimates of 22.4% on the back of lower other expenses....