In our view, better days are ahead for the bank in terms of asset quality going forward. Large part of restructured assets has already been recognized as NPA by the bank (5.8 bn, down 77% in 4 yrs). Of this 5.8 bn of restructured stock, 2.8 bn is exposure to Air India and balance 3 bn are...

By the end of FY 18, the CV industry grew at a growth rate of 19.4%, while by 7M YTD FY19, it has grown by 42%, and is expected to end the year with at least 15-20% growth. Despite the short term trend of slight weakening of CV sales on the back of liquidity crunch, rising interest rates and fuel costs, we believe the long term trend is intact...

and fuel costs the long term demand is intact as BS VI implementation and scrappage policy will trigger a strong and continuous demand for the sector. The company being market leader in axles business is well placed in gaining incremental business from its...

associated with Marazzo. FES margins zoomed up at 20.1% which was a surprise to us despite higher RM costs. Higher other income (up by 50% yoy) and lower tax rate at 23% (due to deferred tax asset of 1.34 bn) led to net profits to be higher at 23.9%, however, adjusted net profits grew by 14% to 15.2 bn....

and yoy. Due to reduction in tax sops in Pantnagar, the tax rate came in at 29.7% qoq. Net profits however surged by 41.2% yoy as topline and operating profits moved up strongly. Resignation of the company's MD and CEO Mr Vinod Dasari may act as an overhang on the stock....

Yes Bank showed dismal performance PAT declined by 24% qoq (4% yoy) to 9.6 bn largely led by higher credit cost. Gross slippages escalated sharply for the quarter at 16.3 bn ( 5.6 bn qoq) led by one large corporate account defaulting amounting to 6.3 bn (most likely it expects upgrade in this account in Q3). Bank has exposure to IL&FS; amounting to 26.2 bn which is currently recognized as standard account in the books of the banks (lent to SPV and no holdco exposure). Investment provisions were also high due to a) 2.5 bn provided for corporate bonds b) 0.9 bn amortised MTM...

Demand concerns spring up, worries to continue over some time Q2 performance muted as expected Maruti Suzuki India Ltd (MSIL)'s Q2 FY19 numbers came in line with our tepid expectations as volumes reflected a negative growth of 1% yoy and 1.5% qoq. High base of last year, slowdown in urban retail demand, higher fuel prices, rising interest rates, intensifying competition led to this performance. Realizations growth was flat yoy, while grew by just 2% on a slightly improved product mix. Revenues grew by 1% yoy and fell by 1.2% qoq. EBITDA margins came up at 15.3%, which were supported by Engineering Services Fees worth 2bn booked in the other operating...

Q2 top line excels, margins below expectations Bajaj Auto posted a mixed bag of numbers in Q2 FY19, though volumes in the quarter grew by a handsome 25% yoy and 9.2% qoq to its highest ever quarterly volumes of 1.34 mn units. Despite such a strong show, the realizations dropped by 3% yoy and 1.3% qoq to 58,470/unit. This was a result of adverse product mix where the company sold more volumes of CT 100 and Platina belonging to the mass/M1 segment. This was due to company's strategy of gaining market share in the M1 segment by providing heavy discounts and subvention schemes. As a result of this, EBITDA margins touched lows of 16.8% also thanks to the RM price growth. RM costs as a % of...

Volumes witnessed a soft growth in Q2 on the back of high base, higher insurance cost, competition, rival launches and somewhat slowdown in retail demand. Furthermore, safety and emission norms implementation would result in demand fall again as product prices move up. Upcoming new launches of scooters and a premium bike may provide some support. Modelwise, in the 100-125 cc motorcycle segment through Deluxe, Splendor and Glamour, Hero is strengthening its position and has maintained it's market share in Q2. On margin front, higher RM prices, higher launch costs, withdrawal of Haridwar tax benefits, competition from rivals especially in the mass segment may impact margins along with setting up of new plants in...

PAT of the bank showed subdued growth of +5% yoy (-11% qoq). Largely numbers were in-line in terms of growth and operational efficiency; however, there was a miss on the credit cost & margins. During the quarter, the bank made 2.75 bn contingent provisions for IL&FS; Group exposure, however, account still remains standard in the books of the bank. The bank has proactively created this provision buffer, though future provisions would be determined by...

monetization. Reduction in operating costs despite launch of Zee5 in Q4 (from 37.7% in Q1 as a % of sales to 36.8% in Q2) has led to strong margin performance at 34.2% up 230 bps qoq and 320 bps yoy. Even the other expenses and advertising costs as a % of sales along with employee costs have reduced, thus leading to superior margin performance despite original programming hours...

Operationally good quarter for the bank, PAT grew by 47% yoy driven by strong loan growth and stable margins. Other income showed flat growth more due to change in the recognition of PSLC income. AUM growth was strong at 51%, margins remained stable at 9% which led to...

Upcoming elections in 2019 may push MHCV sales on the back of GOI expediting infra reforms Axle norms implementation may pull down truck sales to some extent in the ensuing months, but the intrinsic demand strength may well offset this pull down....

and increase the size of non-corporate loans sizeably going forward. In the next 5 years, it aims AUM mix of VF 35%, corporate loans 35%, SME 15% and housing loans 15%. Over the FY18-22E period, we anticipate AUMs to grow at 50% CAGR which would be mainly driven by vehicle finance loans. Operating leverage set to play out in the longer run, boosting return profile of the...

competitors as long as technology is concerned. Wide client base reduces uncertainty of customer concentration 2W - Gabriel being the second largest shock absorber manufacturing company after Munjal Showa in the 2W segment (contributing 58% of revenues) growing at 25% in Q1 FY19 has a huge client base including all the big OEMs except HMCL in that space(Munjal Showa being their inhouse sole supplier). Gabriel is the largest vendor of HMSI, and fancies great chances to acquire secured long term business with HMSI's aggressive expansion of capacities and launch of new products. In order to cater to HMSI's requirement of front forks at its Gujarat plant where they are expanding their capacities (upcoming capacity of 1.2 mn), Gabriel has set up a capex of Rs50...

IPL beat strengthens our view; Subscription and Ad businesses continue the momentum Q1 numbers above expectations on IPL surprise. Sun TV Network Ltd (Sun TV)'s Q1 FY19 numbers came above our expectations as both Subscription as well as Advertising revenues grew strongly at 15% and 20% yoy respectively. IPL revenues got a boost at 3.82bn by the virtue of its team SRH ending up this season as runners up and overall surge in sponsorship and gate revenues. Management highlighted that despite dip in market share in Q1, there has been a good revival in it in July. Though the cable TV revenues grew by just 4% on a high base of last year which had some catch up revenues...

yoy from 3.9% yoy. FES margins zoomed up at 20.9% due to sharp surge in tractor margins along with the volumes offering operating leverage despite higher RM costs. Higher other income (by 30% yoy) standard tax rate (@30%) and maintained depreciation expenses (14% up yoy, 1.6% down qoq) led to PAT adjusted for exceptional...

to zoom at 8.7 % (up from 6.1% qoq) despite high RM costs. PV EBIT margins are in the negative territory, while CV margins are at ~8% during the quarter. Bottomline at this business adjusted for one offs came in at a profit of 13.8 bn against loss yoy. At JLR, the company...

consumer banking (up by 104.5% yoy and 21% qoq). While medium corporate & micro & small corporates reported flat to negative growth on sequential basis. Going forward, management expects the credit to grow by 30% in FY19 vs. our expectation of 33%....

Maruti Suzuki India Ltd (MSIL)'s Q1 FY19 numbers came a bit below our expectations as margins were hurt despite top-line growing at 28% yoy and 6% qoq. Volumes in the quarter were at a high of 4.9 lakh units, growing by 24% yoy and 6% qoq, while realizations growth was flat both on yoy as well as qoq basis. Upbeat volume performance came on the back of strong new DZire and Swift sales and strengthening franchise of Vitarra Brezza and Baleno. The company did not take any price hike during the quarter, despite RM prices moving up. EBITDA margins came up at 14.9%, which is a rise on both qoq and yoy basis on better product mix. However they have come on a low...