4QFY19 revenue grew 21.4% YoY (v/s est. +23%) to INR22.9b and EBITDA grew 20.5% YoY (v/s est. +18%) to INR1.3b. EBITDA margin expanded ~30bp QoQ to 5.7% (~20bp beat), despite an additional INR80-90m expenditure towards ad campaigns for Monster.com, implying an even better operating performance in the non-internet businesses. PAT declined 0.3% YoY to INR755m (v/s est. of 4% YoY decline). Organic growth in FY19 was driven by People and Services: In FY19, revenue/EBITDA/PBT was up 38.3%/31.1%/14.2% YoY, while PAT was down...
grew 16% YoY to INR6.1b (3% beat); margins, however, contracted 440bp YoY to 68.4% impacted by high production cost and IPL related increase in SG&A.; But, movie amortization cost pulled down PAT to INR2.8b, -2% YoY (23% miss). For FY19, revenue/EBITDA/PAT grew 28%/31%/28%. Concall highlights: (1) FY20 subscription revenue should grow at 14-15%. (2) Expect 1HFY20 ad growth to remain under pressure due to viewership impact from TRAI's New Tariff Order. (3) Currently, ~38% homes in Tamil...
Operating performance ahead of expectations: Sales grew 44% YoY to INR20.7b in 4QFY19. EBIDTA increased 24% YoY to INR1.7b, as margin contracted 140bp YoY to 8.2%. Adj. PAT grew 64% YoY to INR1.2b, ahead of our estimate of INR979m, supported by a lower tax rate at 36%. Revenue growth to moderate due to lower opening order book: Weak order inflow (-12% for FY19) and healthy execution (+34% YoY) have led to a decline in order backlog (-6% YoY to INR53.7b). Thus, we believe revenue growth will moderate in FY20 (+7.7% YoY). However, with ordering activity showing signs...
29% YoY to INR2b, driven by sales ramp-up in a few molecules and favorable FX. Domestic business outperformed industry in the key therapeutic areas, with growth of 11% YoY to INR15b (34% of sales). South African Global Access (SAGA) business, however, was flat YoY at INR8b. Limited-competition products drive profitability: Gross margin (GM) improved ~330bp YoY to 65.2%. EBITDA margin expanded at an even higher pace of ~680bp YoY to 21.8% due to a superior product mix and lower opex. Absolute EBITDA increased ~73% YoY to INR9.7b (our estimate: INR7.2b). R&D; spend was at 7% of...
Profitability restricted by higher cost: Blended EBITDA/t was down 1% YoY to INR979, with cost/t increasing 2% YoY to INR3,670. However, EBITDA grew 20% YoY to INR3.2b (in-line) due to volume gains. Margin contracted 0.5pp YoY to 21.1%. Adj. PAT was up 22.5% YoY to INR1.68b (in-line). FY19 performance: Volumes grew ~19%, sales increased 17% to INR51.2b, while EBITDA/PAT was down 5%/9% YoY to INR10b/INR5.1b. Key highlights from management interaction: (1) Average diesel prices increased 17% YoY in FY19, leading to higher logistics cost. (2) Petcoke prices...
Steel business ramping up, power outlook improving; Reiterate Buy 4QFY19 consolidated EBITDA at INR18.5b (-11% QoQ) came in 12% below our estimate due to (1) higher coal costs for Jindal Power, (2) low margins at Oman Steel, and (3) shutdown at Wongawalli mine. Interest cost increased 11% QoQ to INR11.6b on rising interest rates and LC discounting. Cash PAT (pre-tax and MI) declined 35% QoQ to INR6.8b (v/s. our estimate of INR10.6b). Non-cash exceptions drag reported performance: JSP incurred write-offs of INR17.3b related to (1) additional coal penalty (INR13.5b), (2) electricity duty...
Earnings in-line: 4QFY19 revenue grew 7% YoY to INR12b, while EBITDA was up 2.5% YoY to 1.7b. Reported EBITDA margin declined 60bp YoY to 14%, but adjusting for ESOP charges, EBITDA margin contracted 130bp YoY to 14.6%. Other income was higher than expectation at INR172m. Thus, adj. PAT came in at INR1.13b, in line with our expectation. For FY19, revenue growth stood...
During the year, the holding company reassessed the deferred tax asset on unutilized tax losses based on probability of future taxable income, and recognized net deferred tax asset of INR186.75m during the quarter. Thus, reported PAT stood at INR78m v/s loss of INR36m in base quarter....
Domestic loan growth came in at 14.2% YoY to INR3.7t, led by retail loans (+24.2% YoY). Within retail, home/auto loan growth was at 22.1%/49.4% YoY, whereas SME loan growth was muted at 7.2% YoY. Total deposits grew by 8.0% YoY to INR6.4t, taking the domestic CD ratio to 71.5%. Domestic CASA ratio improved by 26bp QoQ to 40.2%. Fresh slippages inched up to INR31.9b, of which INR5.3b was due to the IL&FS; Group, leading to an annualized slippage ratio of 3.3%. Write-offs for the quarter came in at INR67.5b, leading to a decline of 140bp/ 93bp QoQ in...
18%/22%, while PAT declined 8.5% YoY to INR33b. Total income increased 18% YoY, led by healthy other income growth of 29% YoY. Core fees rose 28% YoY, led by forex income and loan processing fees. Opex growth (+19% YoY) was slightly higher, leading to PPoP growth of 17% YoY. IIB guided for a C/I ratio improvement of 150bp to 42% over FY20. Loan growth stood at 29% YoY, led by robust traction across both corporate and consumer portfolios. The share of retail loans in total book stands at 39% (52% incl. MFI & business banking). Deposit growth, too, picked up...
Order backlog providing robust revenue visibility: Order backlog as on date stands at INR85.9b (+26% YoY in 4QFY19), with order inflow of INR13.1b (-21% YoY). VATW has also signed framework contracts worth INR7b, which will get converted into firm orders after receiving advance from customers. The current order backlog provides strong revenue visibility of INR3.1x its FY19 revenue. VATW won two orders under the Namami Gange scheme worth INR10b, which will entail equity investment of INR150m. Issues revenue and order inflow guidance for FY20: Management has issued...
Telecom is back on the growth trajectory due to multiple broad-based services deals.Action on the 5G rollout front- not as significant currently - is expected to accelerate CY20 onwards; lest there is positive disruption driven by some Service providers.
310bp YoY to 18.8% (our est. 19.8%) impacted by negative operating leverage. Lower tax restricted the decline in PAT to 17% YoY at INR4.1b (our est. INR4.4b). In FY19, Revenue/EBITDA/PAT grew 5%/3.4%/11.5%. Concall highlights: (a) FY20 outlook cautious due to BS6 transition, but growth expected from 2HFY20. It expects OEMs to stop manufacturing BS4 vehicles latest by end-3QFY20. (b) Aftermarket business grew 8-10% in CY18, but, 1QCY19 growth was muted. (c) BOS has ~33% market share in the gasoline business; it is growing in line with industry. (d) Capex: ~INR6b in...
Steady quarter; Acquisition of IIFL's CV financing business complete 4QFY19 PAT increased 83% YoY to INR741m, driven by healthy NII growth, higher upfronting of assignment income and controlled opex. The company completed the INR35.2b (INR22.4b on-book) acquisition of IIFL's CV financing business on 31st Mar'19, resulting in goodwill of ~INR3b. Excluding the acquisition, total AUM grew 8% QoQ to INR83.7b, largely driven by the VF portfolio. Disbursements in corporate finance rebounded from INR3-4b in the past...
A contrasting year for revenues and margins: For FY19, TECHM's USD revenue grew 4.2% YoY, EBITDA increased 34% YoY and PAT was up 13% YoY. Including the buyback of INR19.6b, the total payout for the year stood at 74.5%. For 4QFY19, USD revenue grew 1.9% YoY (our estimate: +3.5% YoY), EBITDA increased 16% YoY (our estimate: 23%) to INR16.4b, while PAT declined 7% YoY (our estimate: -1% YoY) to INR11.3b. 4QFY19 dragged by Enterprise: Communications (42.7% of revenue) surprised positively with sequential growth of 4.4% versus our estimate of...
4QFY19 standalone net sales grew 10.7% YoY (off a strong base) to INR16.3b (our est. INR16.5b). EBITDA declined 17.8% YoY to INR1.7b (our est. INR2.5b), while Adj. PAT declined 25.3% YoY to INR679m (our est. INR1.1b). Volumes are estimated to have grown at 9% with likely market share gains as well. Standalone Gross margins declined 220bp YoY (our est. -60bp) to 50.5% likely due to higher barley costs. Employee costs were up 10bp YoY to 7.6% while other expenses were up 130bp to 32.4%. Consequently, standalone EBITDA margins were down 360bp YoY to 10.5% (our est. 15.0%)....
Better-than-expected marketing margins result in a beat 4QFY19 EBITDA (adj. for inventory and one-offs) stood at INR74b (-10% YoY, 40% QoQ) due to lower-than-expected core GRM and refining throughput. EBITDA was ~45% above our estimate, primarily led by better marketing performance. PAT was 63% above our estimate at INR61b (+17% YoY), owing to higher other income and lower tax rate. Interest cost was higher at INR12.4b (-5% YoY, +47% QoQ). Forex gain was at INR8.4b (v/s loss of INR6.8b in 4QFY18 and gain of INR21b in 3QFY19). Total inventory gain stood at INR26b in 4QFY19 (our est. INR25b)....
Easing cost pressures drive margins: Total cost/t declined 2% YoY. Power EBITDA at INR430m, resulted in cement EBITDA/t growing 15% YoY to INR1,103/t). Thus, EBITDA was up 35% at INR8.5b (in-line). Overall, margins were up 3.4pp YoY at 25.8%. Tax rate stood at 20% in 4QFY19 v/s 13% in 4QFY18, thus, reported PAT declined 20% YoY to INR3.2b (our est. INR3.5b). Key highlights: (1) Company has announced a cement grinding unit of 3mt at a capex of INR5.2b in Pune; it should get commissioned by Sep'20. (2) 4QFY19 average fuel cost has decreased to INR8,670/t from INR8,900/t in...
estimate: INR14.4b), with the margin expanding 50bp YoY to 21.9% (our estimate: 22%). Adj. PAT grew 39.5% YoY to INR10.7b in the quarter. Other income came in lower at INR590m (v/s INR1,180m in 4QFY18), but the impact was more than offset by a lower tax rate (2.8% v/s 17.7% in 4QFY18) and a decline in finance cost (INR2.6b v/s INR4.1b in 4QFY18). For FY19, revenue grew 14% to INR198.7b, with the margin expanding 60bp to 20.8%. Adj. PAT increased 17% to INR26.1b. Key highlights of Arysta consolidation: On incorporating Arysta's financials...
Key highlights from earnings call: (a) In FY19, BHFC won new orders worth USD50m of this, 60-70% was from the non-CV segment. (b) US Class 8 volumes expected at 330k in CY19 (+5% YoY). (c) Sees headwinds in CVs (domestic), PVs (global) and Oil &Gas; (O&G;) in 1QFY20, but expect recovery from 2QFY20. (d) Capex for FY20 at INR4-5b (FY19 at ~INR8.6b); expect capex intensity to decline significantly post FY20. Valuation view: We have lowered our FY20/21 consol. EPS by ~10%/2% to factor in headwinds in key businesses. BHFC has delivered strong operating...
