USD revenues grew by 6.5% qoq to $1691mn inline with our but higher than street estimates of 5.3% growth. CC growth of 6.0% - positive cc impact of 50bps qoq. Volvo acquisition contributed $40mn to the revenue in the quarter. Geographies: Strong growth in Europe (+17.8% qoq) due to Volvo acquisition. US/ROW grew 2.1%/1.8% qoq (+2.0%/0% qoq in CC terms). Service lines: IMS grew by 17.1% qoq (Volvo acquisition) while Application/ERD grew by 2.2%/0.8% qoq. BPO declined by -16.0% qoq. Verticals: Retail grew 15.8% qoq, Manufacturing +12.6% qoq (Volvo acquisition) and...
After many years of debate and consultations between political parties, the GST bill has finally been clearedbytheupperhouse(RajyaSabha).Whilethebillhasbeenconstitutionallyclearedandwillbe implemented sometime in FY18 (central government's guideline is April 2017), its actual impact on corporates,consumers,andtheeconomycannotbegaugeduntilthecentralgovernmentfinalisesthe GST rate. Assuming a revenueneutral GST rate of 18% (as recommended by the Chief Economic Advisor), the GST implementation would result in higher services inflation (CPI) and would have no impactonGDPandfiscaldeficitinFY18.However,itcouldhaveapositiveimpactonGDPandfiscalin thenext34years.CompanieswilltakeafewquarterstounderstandtheGSTmechanismandevaluate...
High interest costs and goodwill amortisation led to decline in reported PAT Key highlights: In Q1FY17, organic sales grew by 9.4% (6.4% volume growth). Strong growth was driven by BoroPlus/healthcare/cooling oils/cooling talc which grew by 38%/14%/8%/15% yoy. However, growth was lacklustre in Fair & Handsome/balms, which grew by 1%/6%. Domestic/international/CSD businesses grew 21%/14%/12%. Sales of Kesh...
Outlook and valuation: At a CAR of 13.2% (tier1 at 12.08%) Indian Bank is sufficiently capitalisedtofunditsneartermgrowth.Themanagementisalsotakingeffortsbyputting thrust on retail and SME to drive loan growth drivers in FY17, as demand from corporate loanswouldremainweak.Weexpectthetrendinslippagestoimproveasithasrecognised mostofNPAsinFY17andthebaggagefromexistingrestructuredloanbookwillnoterode theassetqualitysignificantly.WehaverevisedourearningsestimateforFY17andFY18by 32%and20%respectively,duetoimprovementinNIIandlowerNPAandhaverevisedour...
Key highlights: Revenue was up 2.3%yoy to Rs. 4.6bn, inline with our estimates. Goods transport (GT) (78% of revenue) reported revenue growth of 4.2%yoy while bus segment (20%ofsales)revenuedeclinedby3.7%yoytoRs912mn.EBITDAdeclinedby20%yoytoRs 670mn,lowerthanestimatesofRs750mn.EBITDAmarginsdeclinedby412bpsyoyto14.6% inQ1FY17.EBITDAmarginsingoodtransportdeclinedby280bpsyoyto12.9%whileinbus segment,marginsdeclinedby620bpsyoyto22.4%inQ1FY17.Margindeclinewasmainly duetoloweravailabilityofbiodieselandcostinflation.Employeecostincreasedby26%yoy toRs661mnduetoincrementin2QFY16.Interestcostdeclined36%yoytoRs67mnwith...
MHCV sales remain weak with Tata Motors and Ashok Leyland posting a decline in MHCV sales for the second consecutive month. Our checks suggest that pressure on MHCV sales is seasonal in nature as construction activity is downduetoheavyrainfall.Demandexpectedtopickupasmonsoonrecedes. LCVscontinuestobeonarecoverypath....
To maintain 20% growth in balance sheet, with higher focus on LCV, Home loan and MSME.GrowthinHCVhascomeoffslightlyinthisquarter. 9 Usedvehiclesegmentequallysplitbetween34yearsand47yearscategory.WithNGT lookingtobanvehiclespost10yearsvintageinDelhi,demandforusedvehiclesin47 yearscategorymightseesubstantialincrease....
USD revenue at $1,032mn (+0.9% qoq) inline with street but higher than our expectation (+0.1% qoq). Positive cross currency impact of 50bps. EBITDA Margins at 14.9% - decline of 185bps qoq significantly below our and street expectations of 15.8%. Margins were impacted by visa cost (-100bps) and seasonally weak Comviva business (-180bps) partly negated by operational efficiencies. Margins have now fallen by 530bps over the last six quarters. Geographies: US grew 5.6% qoq while Europe remained flat. RoW declined by -7% qoq. Verticals: Telecom continued to be weak declining by -2.5% qoq. BFSI grew 7.5% qoq,...
Key highlights: Sales of Rs 1.67bn was up 8% yoy (+6% vs estimated). Healthy ATBS sales (+19%value&+29%volumegrowth)andincrementalsalesfromnewproductsstartingQ1 supportedrevenuegrowth.Withtheimprovingproductmixtowardsbettermarginproducts like ATBS and new launched ones, the EBITDA margins saw +390bps surprise at 35.6% (estimated31.7%),resultingin19%beatinEBITDAatRs596mn(estimatedRs500mn).The...
Key highlights: Revenues at Rs 219bn (+9% yoy) were led by a pick up in execution in its powersegment.Itsinfrastructuresegment(42%ofsales)revenuesgrew9%yoyona20% yoyincreaseininternationalrevenues,evenasdomesticsalesforthesegmentgrewby4%....
