Revenues for Q2FY18 were ahead of our estimates led by better than expected growth in plywood volumes. Forex fluctuations and decline in plywood realizations impacted the margins. Lower than expected interest expense and lower tax expense led to net profit coming slightly ahead of our estimates. Company expects the volumes to start witnessing improvement from next year onwards once E-way bill gets implemented. Currently, the unorganized market is still not complying to the tax standards and hence the organized players are not able to benefit from the shift of market from unorganized to organized. But once...
Chennai petroleum has reported better than expected performance. CPCL's Q2FY18 PAT increased significantly by 846% qoq (partly base effect) to Rs.3.2 bn (+221% yoy) reflecting significantly higher refining margins, higher sales volume and lower raw material cost. CPCL has reported higher throughput of 2.64 mmt (2% qoq), resulting in 87% capacity utilization in Q2FY18. The company has reported higher GRMs of US$5.67/bbls in H1FY18 v/s US$ 3.81/bbls in Q1FY18. We expect CPCL to report an EPS of Rs.58.7/share in FY18E and an EPS of Rs.74.5 in FY19E supported by higher refining margins, lower operating cost, higher other...
VA Tech Wabag's (VAW) reported good set of numbers in the second quarter on an operational basis. Profit and EBITDA Numbers were ahead of our expectations. The stock has underperformed in recent quarters due to increasing working capital intensity which has raised net borrowings. We have been positive on the stock in view strong order book of the company coupled with relative under-performance in stock price in H1FY18. Valuations are...
Company's revenues for Q2FY18 reported an improvement of 6% YoY, marginally lower than our estimates. Growth in revenues was mainly led by 7% YoY improvement in cement volumes and 5% YoY jump in cement realizations but impacted by sharp fall in power segment sales. Operating margins stood strong at 26.2% for the quarter, though impacted by higher costs such as pet coke and diesel on yearly basis. Though margins stood...
Revenues of the company for Q2FY18 were slightly lower than our estimates due to lower than expected toll revenues. BOT revenues are not comparable due to transfer of assets to InVIT. Consolidated operating margins witnessed an improvement due to higher other income accrued in the EPC/BOT segment owing to transfer of projects to InVIT as well as dividend income from InVIT. Net profit performance stood ahead of our estimates led by fall in interest expense and higher other income despite higher tax rate for the quarter....
MSL Q2FY18 PAT declined 12.5% YY despite significant growth in revenue due to execution of low margin legacy orders. EBITDA margin contracted YY due to 1/ booking of low margin legacy orders and 2/ high base of Q2FY17. We consider that this is a quarterly aberration and maintain our FY19 earnings estimate. We believe that MSL valuations can get rerated on back of strong growth in company's estimated consolidated profits through FY17-19E driven by 1) recovery in demand for seamless pipes in the domestic/international market and 2) imposition of anti-dumping duty on Chinese imports would lead to demand...
VIP has reported second straight strong quarter with significant improvement in revenues, operating margins and earnings. This is on the back of improving luggage penetration in the country and sustained efforts by the company to improve its performance. Sales was reported at Rs 3.09 bn (+8% YoY). EBIDTA margin was reported at 11.3% (+210 bps YoY) with improving volumes and realisations and lower raw material cost. Consequently, PAT was reported at Rs 242 mn (+33% YoY). We estimate the company to be a major beneficiary of increasing penetration of luggage bags and back-packs in the country and...
Greaves Cotton (GCL) reported weak numbers that missed our revenue and profit estimates. The company continues to face growth challenges in view of slowdown in 3W sales of its OEMs and delay in firming up new OEMs for engine supplies. Over the longer term, the company will have to contend with challenge from shift away from fossil fuels to electric engines. Our previous call on the stock was Reduce as we expected the earnings to continue to disappoint and hence believed that valuations need to correct. Since our previous update in Q1FY18, the stock has corrected sharply by 19%. While the growth outlook remains tepid (we...
SCI has reported weak set of numbers for Q2FY18 despite improvement in macroeconomic environment and up-trend in shipping cycle. This is primarily due to poor strategy adopted by the company in placing its ships, improper capex plan and poor bargaining with customers. Sales was reported at Rs 8.08 bn (+6.5% YoY and -6.5% QoQ) with weakness in the key tanker segment despite upcoming winter in the west. This dragged the overall EBIDTA margin to 15.49% (-200 bps QoQ and -380 bps YoY) which is the lowest in the last 8 quarters. Consequently...
APTY's 2QFY18 results improved QoQ, but remained significantly weak YoY. Raw material price increase and weak performance at European operations impacted company's 2QFY18 results YoY. Consolidated revenue during the quarter was Rs34.7bn, 13% higher YoY. EBITDA and PAT declined by 17% YoY and 46% YoY respectively. Rubber prices have been stable and that should support EBITDA margins QoQ. EBITDA margins on a YoY basis is expected to stay lower in 2HFY18. While FY18 is expected to be a weak year for APTY, we expect performance to improve over FY19/FY20. We cut our earnings to factor in weak performance in...
