Vascon Engineers (VEL) reported strong revenue growth in Q3FY18 due to high contribution from real estate business in the quarter. Net sales for the quarter grew at 84.8% yoy to Rs 935 mn with EBITDA turning positive at Rs.65mn and PAT going up to Rs.25 mn, which was inline with estimates. But the contribution from EPC segment was below our estimates at Rs 520 mn Vs estimates of Rs 571 mn as its new projects would contribute meaningfully from Q4FY18 onwards. VEL has external order backlog of Rs Rs 6.7 bn and internal order book of Rs 2.3 bn at the end of Q3FY18. VEL has added Rs 3.7 bn of new orders in 9MFY18 and is well...
MSIL's market share in FY18 (April-Dec) has increased to 50.3% (up from 47.4% in FY17). Despite higher base, strong product portfolio and robust after sales network has helped the company grow its volumes at a healthy rate. We expect MSIL's volumes to grow by 12% over FY17-FY20E driven by current portfolio and new products. MSIL's EBITDA margin is expected to improve gradually over the coming years. Operational leverage from high capacity utilization at Gujarat plant and cost reduction measures is expected to translate into EBITDA margin expansion over FY18-FY20. We introduce FY20E earnings and roll over our target price to...
Company's revenues for Q3FY18 reported an improvement of 25% YoY, in line with our estimates. Growth in revenues was led by 8.4% YoY improvement in cement volumes and 11.4% YoY jump in cement realizations. Power segment sales have also witnessed drastic improvement on YoY basis. Operating margins stood strong at 24.8% for the quarter and impacted by sharp jump in power and fuel cost and freight cost on YoY basis. Better than...
We believe Petronet's earnings will continue to rise over the next 2-3 years, driven by higher volumes from Dahej LNG regasification terminal and a higher operating rate of the currently stranded Kochi terminal. Construction of the pipeline to evacuate gas from Kochi is progressing well. The company is further in the process of expanding capacity of the Dahej LNG terminal from 15 MMTPA to 17.5MMTPA. The expansion is likely to be commissioned in 1QFY19. This will help in meeting the rising domestic gas demand. Recently, it has expanded Dahej capacity by 50% to 15 MMTPA and...
Wonderla Holidays Ltd (WHL) is the largest amusement park chain in India with over 17 years of successful operations. WHL has been running amusement park in southern India through 3 operational parks in Kochi, Bangalore and Hyderabad. The company follows low capex model with its parks located near large cities with less than 7 years of payback period as against capex intensive holiday destination model. In order to tap huge opportunity in the sector, WHL is expanding its presence to Chennai where it has finalized land and is further targeting new geographies particularly in...
Strong relationship with shipping lines, vast experience and wide network in the Multimodal Transport (MTO) segment, global presence, experienced management team and efforts taken by the company to improve operational performance have translated in strong operational performance for ALL in H1FY18 despite weak global container trade. Also with significant International operations (MTO segment), B2B clients and 100% e-payments systems would provide impetus to growth under GST. New container freight station (CFS) in Kolkata, value accretive small acquisitions in the MTO segment, improved utilization in the projects division and rational steps to bring down operational cost would enable the company to maintain margins at ~8.8% and earnings CAGR of 14.5% over FY17 to FY20E. We also estimate ALL to be the biggest beneficiary of any recovery...
Radico Khaitan Ltd (RKL) is expected to be a major beneficiary of decline in molasses prices. Molasses comprises of over 20% of its raw material cost and ~8% of its net sales. As per news reports, molasses prices have declined by upto 90% in the past 3-4 months. As per management, the prices may remain lower than its historical average in coming quarters. We have assumed 150-200 bps improvement in EBITDA margins assuming average prices to be at 25-35% lower i.e. ~Rs 250-300 per quintal for next 1-2 years Vs current ~Rs 40 per quintal. Further, price hike received in...
With a ban on the usage of petcoke (petroleum coke)/furnace oil, improving gas demand from power/fertilizer sector and no major ramp-up in domestic gas production in the near-term, LNG demand in India is expected to rise...
With a ban on the usage of petcoke (petroleum coke)/furnace oil, improving gas demand from power/fertilizer sector and no major ramp-up in domestic gas production in the near-term, LNG demand in India is expected to rise...
Castrol's performance is better than our expectation. The company has reported a PAT growth of 29% qoq and 28% yoy basis to Rs.1.78 bn mainly on account of better realization, marginally higher volumes (despite GST impact) and higher other income. Overall revenue has increased by 13% yoy to Rs. 8.6 bn. Operating margin improved impressively by 150 bps to 29% in Q3CY17. The Company has also declared a bonus in 1:1 ratio with expected date of allotment 6th Jan'18. The Company has a strong trust on personal mobility. In Q3CY17, Castrol reported double digit volume growth (yoy) in personal mobility segment and power brands....
