LCV merger, better product mix drive margins, guides for muted FY 21 Weak volumes and realizations impact topline Ashok Leyland (ALL) reported 11.1% yoy and 16.9% qoq fall in the topline. Volume dip was at 6% yoy and the realizations were down by about 5%. The company's market share dipped by 1% yoy close to ~32% in the Trucks segment and ~40% in Buses segment. Margins came in at 10.3% better than market estimates as input costs weakened in December and product mix improvement was seen in the form of higher sale of high margin products like tippers & MAVs. Despite higher discounts, the company took price hike in November. RM to sales came in at 70.1% down from 71.4% yoy and...
as well as Advertising revenues grew strongly at 24% and 13% yoy respectively. Management highlighted that despite dip in market share in Q3, there has been a good revival in January. Cable TV revenues grew 24.3% on new tariff regime implementation, while DTH revenues grew by 24.1% pulling up the overall domestic Subscription revenues by 24.2% yoy. Also the continued process of...
Domestic market growth strong despite OEM slowdown in Q3 Margins impacted by higher RM costs Apollo's standalone net sales grew by 16% yoy and 0.5% qoq to 30.6bn. The yoy growth came on the back of 11% blended volume growth, out of which the TBR segment volumes grew at double digit yoy, while PCR de-grew in mid-single digit. OEM segment sales declined, however Replacement segment showed a double digit growth on a yoy basis. The company rolled back price hike of 2% (taken earlier in the quarter) viewing lower demand later. RM prices saw a hike of 13% yoy and 2% qoq on rubber price hike as well as fuel price surge during the quarter. Hence, at...
Yes Bank Q3FY19 results were exceedingly good in terms of asset quality barring IL&FS; account. There is change in the guard with Mr.Ravneet Gill appointed as new MD&CEO; replacing Mr.Rana Kapoor. NII growth was strong at 41% yoy led by strong loan growth and stable margins. However, operating profit growth was muted due to fall in other income. MTM losses on corporate bonds resulted in overall fall in other income by 37% yoy. During the quarter, the bank declared IL&FS; account as an NPA it has total exposure of 25.3 bn ( 19.1 bn is added in NPAs while 6.2 bn remains standard). Barring this one-off, gross slippages were at 3.8 bn vs. 16.3 bn last quarter. Major headwind on the stock wrt Mr.Rana Kapoor exit seems to be waning with Mr.Ravneet Gill...
Q3FY19 results of the bank were in-line with our expectations PAT grew by 30% yoy to 3.3 bn. Balance sheet growth was strong credit grew by 24% yoy led by corporate and retail loans. Core fee income (CEB + loan processing) grew by 34% - which is one of the highest growth we have seen in the recent past. Slippages were less at 4.3 bn vs. 4.8 bn last quarter. The bank has front-loaded some of Kerala flood related slippages during the quarter. On the other hand, positively, RBI audit of the bank for the year FY18 is done and there is no NPA divergence to be reported. Cost ratios inched up during the quarter to 50% (up by ~220 bps) due to higher provisions on gratuity (led by increase in gratuity limits) and rise in CSR expenses....
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...
