Hindustan Zinc's (HZ) intent to ramp up its mined-metal capacity to 1.5MT in the medium term through expansion of SK and Zawar mines and taking several initiatives to curtail cost of production, is expected to improve its operating leverage. In the near term, FY19E metal production will be higher than FY18 as production improves in subsequent quarters led by ramp-up of...
The demand scenario for capital goods makers in general remains weak. In this scenario, the company's focus remains on taking good quality orders that are fairly priced and have reasonably good credit profile. This is manifested in...
MSL Q1FY19 result significantly outperformed our estimates; sales grew on back of improved realizations in Seamless as well as ERW pipe division. Margins expanded significantly on y/y and sequential basis demonstrating the pricing power. We note that Q1FY19 (and so the Q4FY18 quarter) signals...
Revenue growth of 5% YoY was in line with estimates and is likely to improve in coming quarters. Margins witnessed a decline on YoY basis but improved significantly from Q4FY18 which was impacted by write offs. Borrowings have declined sequentially after company raised Rs 4 bn via QIP and Rs 500 mn via issue of warrants to promoters. Order inflow stood at Rs 7.4 bn for Q1FY19 with closing order book of Rs 178 bn. Based on healthy traction in order inflows, company expects 40% YoY revenue...
Net revenue for the quarter grew at 15.4% yoy to Rs 939 mn driven by 19.8% yoy growth in EPC business at Rs 835 mn while real estate revenue declined by 11.2% yoy to Rs 104 mn. Adjusted for Ind AS 115 impact, the revenue from real estate segment grew by 78% yoy to Rs 208.5 mn. EBITDA margins for the quarter also declined by 110 bps yoy on account of loss reported in the real estate segment due to higher fixed cost to market launch pipeline, lower revenue recognition due to accounting changes and losses recognized in Windermere sale....
Forex loss of Rs 37 mn erased 190 bps from the EBITDA margins The room AC industry had planned for a growth of 20% in Q1FY19. As against this, the industry actually contracted by 13% y-o-y. As a result, there is excess inventory holding in channels by around 60 days....
Forex loss of Rs 37 mn erased 190 bps from the EBITDA margins The room AC industry had planned for a growth of 20% in Q1FY19. As against this, the industry actually contracted by 13% y-o-y. As a result, there is excess inventory holding in channels by around 60 days....
Shankara Building Products Ltd revenues were much ahead of our estimates but margins came lower than expectations due to sharp decline in enterprise and channel segment margins. Company is looking at higher revenue trajectory and in this process, margins may get impacted to some extent in the interim. However, more clarity would emerge in coming 1-2 quarters on the trade-off between higher revenues and slightly lower than expected margins. Though Q1FY19 was a strong quarter, company has mentioned that...
DBL results for the quarter were ahead of our estimates led by better than expected execution and margins. Better than expected order inflow during FY18 and a robust order book provides healthy visibility of future earnings...
Marico has delivered strong quarterly performance in the backdrop of the extremely challenging input cost environment, with healthy volume growth across key segments including Parachute Rigids (+9% YoY), Value Added Hair Oils (VAHO) (+15% YoY) and Saffola (+15% YoY). YoY comparison is not possible as Q1FY18 was a pre-GST quarter. The company continue to face Gross margin pressure due to steep increase in copra prices, which Marico countered with price hikes in the Coconut Oil portfolio. While near-term earnings shall continue to face pressure on weaker margins (higher copra...
