4 August 2020 Godrej Consumers (GCPL) 1QFY21 earnings were in line. Household Insecticides (HI) sales were better than expectations. However, Soaps disappointed with 2% YoY sales decline, despite a favorable environment. Gross margins were below expectations due to an adverse mix. A sharp 46% YoY cut in ad-spends meant that EBITDA was slightly ahead of expectations. We do not see any visibility for the single-digit EPS trajectory of the past 5 years to change materially any time soon. RoCE at less than 20% is also much lower than peers and is unlikely to improve materially over the next few years. Thus, valuation of 40.5x FY22E seems fair. EBITDA grew 3% YoY to INR4.7b (v/s est.
This was primarily led by North America (NA), wherein EBITDA declined 81% YoY on lower volume offtake. The Soda Ash segments performance was impacted by a reduction in demand from the end user industry (largely for flat and container glass). Factoring the miss in our estimates and a weak end user industry demand scenario, we cut our EBITDA estimates by 14%/6% for FY21/FY22 and arrive at an SOTP-based TP of INR368. Maintain was primarily on account of the absence of operating leverage and higher RM cost, offset by lower freight and power costs. EBITDA de-grew 30% YoY INR1,824m); decline in adj. This was on account of a 28%/22% drop in soda ash/bicarb volumes and lower realization, offset by 26% volume growth in salt. revenue declined 27% YoY due to a 28% drop in volumes (exports / domestic volumes declined 45% / 13% YoY).
Production disruption caused by the extended lockdown resulted in lower-than-expected sales volume of higher-margin specialty 45%/302% due to strong volumes and higher realizations in the enterprise declined 26% YoY and stood at INR2.4b with EBIT margin contracting 70bp to 1.4%. GOAGRO's CP business is expected to be on strong footing due to (a) product launches in the standalone CP segment, (b) strong performance in Astec owing to its expertise in triazole chemistry, and (c) commencement of a new herbicide In the AF segment, increase in chicken/milk prices should improve farm profitability, thereby driving demand for broiler/cattle feed. Crop protection segments performance was impacted as the company took a conscious call to reduce the receivable for The company launched new herbicides during the quarter Delete Aqua and Production disruption caused by the extended lockdown resulted in lower-than- expected sales volumes of higher margin specialty products.
Further, FY21 should see continued benefit of mix (lower OEMs) and lead prices. We have downgraded our EPS by 4.5%/1.4% for FY21/FY22E to factor in weaker 1QFY21 revenues/EBITDA/PAT declined 44%/64%/80% YoY to INR15.5b/ Revenue declined due to the lockdown impact on auto/non-auto segments and the OEM/replacement businesses. The company is focussing on cost control measures and technology upgrades to We have downgraded our EPS by 4.5%/1.4% for FY21/22E to factor in the lower revenues, better mix and lower lead prices. structure remains largely duopoly, EXID is the largest lead acid battery manufacturer in India with leadership in Auto OEMs and the replacement segment. However, EXID has largely caught up with competitors by investing in technology and by being more proactive in customer service and plugging gaps EXID should improve its market share as economic recovery led demand would come in from AUTO OEMs and the Industrial segment.
Cross-subsidization by NSE has limited monetization opportunities for BSE in the Star MF, INX, and Commodity Derivatives segments in the near term. This was primarily due to a decrease in turnover by 26% YoY in the Equity Cash segment (special rate group) in 1QFY21 and one- While total expenditure of INR1.0b was lower than estimated, overall decline in revenues resulted in largely in-line EBITDA (v/s estimates). NSEs competitive pricing has impacted BSEs ability to charge in the Star MF, INX, and Commodity Derivatives segments. NSEs competitive pricing has impacted BSEs ability to charge in the Star MF, INX, and Commodity Derivatives segments. This was primarily due to a decrease in turnover by 26% YoY in the Equity Cash segment (special rate group) in 1QFY21 and one-off income in While total expenditure of INR1.0b was lower than estimated, overall decline in revenues resulted in largely in-line EBITDA (v/s estimates).
TeamLease reported revenue/EBIT/PAT growth of -9%/-4%/-9% YoY v/s our General Staffing headcount decline (10% QoQ) in 1QFY21 came in lower than initially expected (1620% QoQ). Even as the management is cautiously optimistic on prospects of growth recovery, we expect a good rebound in General Staffing headcount over the next two quarters. Our DCF-based TP of INR2,700 implies 32x FY22E Overall revenue was below our estimates as decline in Other HR Services In General Staffing, headcount declined just 10% QoQ (v/s ~15% for Quess) and revenue ~14% QoQ (v/s 22% for Quess). Across segments, margin expansion during the quarter was Realizations in General Staffing remained stable despite the markup pressure in the industry. Over the medium term, as both the central and state governments look forward to liberalizing and formalizing the labor markets, TeamLease should be among Stable realizations and aggressive cost rationalization should enable the company to report robust margin expansion in FY21E.
1 August 2020 In 1QFY21, gross margin expansion and synergy benefits aided EBITDA disruption in Latin America, North America, and Europe, (ii) the postponement of sales in Brazil from 1Q to 2Q due to fluctuation in the Brazilian real, and (iii) pre-buying in North America at the end of 4QFY20 impacting growth in the region in 1QFY21. In 1QFY21, UPLL reported strong revenue growth of 27% YoY in India v/s 15% industry growth. Revenue from the LATAM region declined 16% YoY on forex volatility in Brazil, which led to the postponement of orders to later quarters. Revenue from North America declined 14% YoY on pre-buying due to COVID-19 in 4QFY20. According to management, for 1QFY21, cost synergy realized from the Arysta acquisition stood at INR830m (USD11m) and revenue synergies at INR530m (USD7m). Gross debt was INR325b as of Jun20 v/s. Net debt was INR220b as of June20 (similar to March levels).
1 August 2020 TTMTs had its toughest quarter ever with net consol losses of INR84b as both JLR and India business were badly hurt by Covid-19 related lockdowns. (auto) FCF being negative at ~INR182b. However, it expects positive FCF in both businesses 2QFY21 onwards. Recovery in both businesses is critical for net debt reduction (INR678b, increase of INR196b QoQ). We expect losses to gradually reduce in coming quarters and turn profitable only from 4QFY21. We have lowered our FY21E loss estimates by 8% to factor in faster JLR volume recovery and cost cutting initiatives. adverse mix and higher fixed cost led to the fourth consecutive quarter of EBITDA loss (~INR7b v/s est. The beat was led by 10% YoY increase in realizations (due to higher spare contribution) and cost savings of INR5.4b. JLR Project Charge delivered total savings of GBP1.2b (cost savings of GBP0.
(%) Margins (%) FY20 was a challenging year with high gold prices affecting 1QFY20 and the COVID-19 crisis disrupting 4QFY20. Amid this tough operating environment, however, overall topline and earnings growth for Titan Company (TTAN) remained healthy at 6.4% and 8.9%, respectively. This continues a strong trend witnessed in recent years as a result of which sales and PAT CAGRs over FY1720 were also impressive at 17% and 24%, respectively, . Response to the COVID-19 crisis has also been heartening, with clear communication on safety and the addition of two new growth engines digital thrust and lower price point products. Barring high-value jewellery sales, we note that all of these growth engines are at play in FY21 as well. Gains from unorganized and other organized players continued unabated in FY20 and remain promising going forward as well. At less than 10% of the overall jewellery market, TTAN remains well-placed to capture further market share.
Growth segment Revenue grew 8% to INR9.2b, led by new deals while EBITDA jumped 16% to INR1.2b. TCOMs order book is equally growing in India/international markets and stake in the data center partnership important and has no immediate plans to monetize the land parcel. Voice segment revenue was flat QoQ at INR8b while EBITDA grew 46% QoQ to Payments solution segment revenue was down 37% QoQ to INR520m and EBITDA loss stood at INR40m (v/s profit of INR220m in 4QFY20), affected by the lockdown as average transactions declined to 56 in 1QFY21 (v/s 84 in 4QFY20). Despite some impact of COVID-19 on deal conversions, TCOM witnessed healthy addition in its order book, which is equally growing in India/international markets and across business verticals. It saw marginal QoQ revenue growth due to one-time gain in 4QFY20 and benefit of increase in traffic from customers, which was offset by lower revenue from other part of the Increased bandwidth usage led growth in this business.
