VRL reported Q2FY18 numbers, marginally below our expectation with de-growth in both trucking as well as the bus segment. Trucking segment was impacted by weak volumes in July 2017 due to GST implementation, while the bus segment was weak due to seasonality. Sales was reported at Rs 4.52 bn (-8% QoQ and flat YoY) with YoY improvement in EBIDTA margin at 12.3% (+120 bps YoY) on the back of improving turnaround time for trucks with removal of interstate check post. Interest cost has further decreased with prepayment of debt in the quarter. Consequently the company has reported PAT of Rs 216 mn (+27% YoY)...
CUMI Q2FY18 PAT outperformed our estimate on back of higher margin in the Electrominerals division (EMD). Revenues at Rs 5.8 Bn came in line with our estimate. Management highlighted that the abrasives business has started to make up for the lost volumes in the previous quarter due to GST transition and would further report traction in 2HFY18. Industrial ceramics and EMD division have been witnessing rising demand across geographies. Company's Russian subsidiaries VAW reported significant volume led growth in the quarter. We however believe that the company would take slightly longer to recover from...
Escorts 2QFY18 results significantly outperformed estimates. Revenue grew by 26% YoY on the back of grow volume growth in the tractor segment. Reported EBITDA margin was 460bps higher YoY (adjusted for Rs260mn one-off payment, margins would increase further). Cost reduction measures, operating leverage and turnaround in construction equipment business helped margin expansion during the quarter. Tractor volume growth in 2HFY18 is expected to moderate as compared with 1HFY18. However other segments are expected to witness robust growth in revenues. We expect EBITDA margins in FY18/FY19 to witness gradual...
With an order book of Rs 417 bn, the company has one of the highest revenue visibility among the capital goods universe. With India's continued thrust on defence indigenization, BEL could be the key beneficiary of extant spending. The company has early mover advantage over the private sector in terms of trust factor, substantial R&D; spending etc. BEL has broadspectrum horizontal capabilities in electronics, communications and software, and has emerged as a large system integrator as well. We ascribe fresh target to the stock by valuing the stock at 22x FY19 earnings (earlier target of Rs 183, valued at 20x FY19 earnings). Since the upside from current levels is modest, we change...
Supreme Industries Q2FY18 results were ahead of our estimates led by strong volume growth across most of the segments. The company reported 19.5% yoy growth in revenue backed by 18.3% yoy growth in total volume. The volume growth in the quarter was led by aggressive discount policy adopted by the company particularly in agri-based PVC pipes segment. The company's piping segment grew by 17% yoy despite 6% decline in the PVC pipes industry. Aggressive pricing and inventory loss resulted in 160 bps yoy decline in EBITDA margins which stood at 13.6% in Q2FY18. The company expects EBITDA margins...
Revenue for Q2FY18 was ahead of our estimates led by 5% YoY volume improvement and 2% YoY pricing improvement. Operating margins were under pressure due to higher power and other costs. Net profit performance on YoY basis was impacted by fall in margins. Going ahead, we expect company to improve its market share by capturing the market share of unorganized players as well as with improvement in product mix. Its enhanced presence in Tier 2/3/4 cities, strong dealer network, value added products as well as improvement in capacity utilization of its JV plants are expected to aid revenue growth going forward....
EIL Q2FY18 outperformed our estimate due to 1/ strong execution in PMC division; 2/ higher operating margin supported by operating leverage and 3/ provision write back (one off items) in the LST division (Lump Sum Turnkey Project). Order inflows grew substantially in the quarter led by PMC orders; current order backlog stands at Rs 88.1 Bn (highest level ever) implying three year revenue visibility. We reiterate our long term positive view on EIL; expect significant improvement in FY19 earnings driven by 1) improved execution in 2HFY18-FY19 2) improved margins on back of operating leverage. We increase FY19 earnings estimate to...
NIIT Ltd 2QFY18 results came below our expectation largely due to sharp de growth in SLG and S&C; segment of 49% and 21% YoY respectively. CLG reported growth of 10% YoY (14% YoY in CC Terms) in line with our expectation. SLG segment degrew mainly on account of planned ramp down of government business and lower than expected revenue from IP led business which contributes 73% of SLG revenue. S&C; de growth was predominantly due to changes in spending pattern of Indian banking sector, though management remains confident of pikup in revenue from 3Q onwards. EBITDA margins too were below...
