Key highlights: Consolidated sales (Rs 1.4bn, +14% yoy) were 4% above our estimates. EBITDA margin saw sharp correction to 11.2% (vs. estimated 21.2%) on account of – (1) production disruption in Italy subsidiary for a month period (for implementing efficient technology with target to conserve energy and reduce wastage) and initial marketing spend to launch antioxidant blends in USA. Thus, the EBITDA declined 45% yoy to Rs 157mn. The weak operating performance and higher taxes dragged PAT by 78% yoy to Rs 31mn (estimated Rs 116mn). The weak operating performance was primarily due to quarter specific execution issues at subsidiaries. The standalone financials reported 3% sales growth (to Rs 1.02bn) coupled with 160bps expansion in EBITDA margin (to 17.5%), resulting in 18% yoy growth in profits to Rs 65mn (despite higher tax incidence of 36%). Phillip Capital retain their Buy rating with an unchanged TP of Rs 135 (9x FY18 EV/EBITDA).
Top takeaways from Q1FY17 : PAT of Rs4.2bn (below expectation) due to higher loan loss provision (Rs20bn). Strong pre?provision profit of Rs27bn (+21.2% yoy) driven by NII and treasury gain. Slippage was higher at Rs 60bn and recoveries were strong, as a result GNPA increased to 11.15% (+116bps qoq) and NNPA 5.73% (+67bps qoq). PCR remained flat at 60.2%. Slippage included Rs 12bn from small ticket loan which has emerged due to correction in system. Slippage from corporate segment was Rs13.8bn and balance contributed equally by agri, retail and SME. Slippage from restructured asset was Rs4.8bn. The total stress asset pool (GNPA + Standard restructured + SMA2) increased by Rs7.3bn qoq to Rs681bn (18.8% of loan book).Phillip Capital maintain Buy rating on the stock with PT of Rs200 (unchanged).
The exit of COO Sudhir Chaturvedi a significant negative In a recent development, NITEC's COO Mr Sudhir Chaturvedi resigned to pursue other interests. Mr Chauturvedi had joined NITEC in August 2013 from Infosys and was chiefly responsible for the company's turnaround over the last three years. After joining, he had laid out a strategy of: (1) cross-selling IMS, (2) expanding the BFSI business in the US, (3) securing a leadership position in the transport vertical, and (4) reducing the low-margin government business. The strategy was executed to perfection; over FY13-16, IMS grew...
Top takeaways from Q1FY17 8 M&M + MVML’s revenue grew 12% yoy to Rs 105bn; missed our estimates by 5% as the company shifted its agri business to a subsidiary. 9 EBITDA margin at 14.1% was ahead of our estimate of 13.9%, led by tractors, which posted a 120bps yoy expansion in EBIT margin to 18.8%. 8 Automotive segment saw sharp drop of 180bps qoq in EBIT margins to 7.8%, mainly led by Haridwar excise expiry and weak mix (higher KUV100 and TUV300). 8 EBITDA at Rs 14.9bn was 3% lower than our estimates 8 PAT at Rs 8.7bn was 9% below our estimate due to lower other income.
chemicals (+42% yoy) and Pigments (+7%). Basic Chemicals (+4% yoy) saw muted growth due to ~22 days production disruption on synchronisation of the new KOH plant with existing utilities. EBITDA margin was 170bps above expectations at 20.8% on better operatingperformanceinPigments(ledbylowerinputcosts),resultingin67%yoygrowthin...
of ~2% growth in volume. Exim volumes grew by 3% yoy after decline over past four quarterswhiledomesticvolumeremainedweakwithdeclineof4.3%yoy.Highergrowthin volumes at Mundra port and decline in volumes at JNPT resulted in reduction in lead distanceforexim,resultedinloweraveragerealizationperTEU.EBITDAmargindeclinedby 70bpsyoyto19.6%,higherthanourestimatesof16%.EBITperTEUineximdeclinedtoRs 3,223 in Q1FY17 from Rs 3,481 in Q1FY16, in domestic it declined by 3% yoy to Rs 381. Depreciation declined by 15%qoq with new accounting standards supporting EBIT margin...
Revenue growth met street estimates as volumes/realisations grew 8%/1%; company gained market share as its volumes grew even as category volumes were flat Gross margins fell 20bps qoq and 160bps yoy on upsurge in sugar/wheat prices...
competition and cutthroat competition from Chinese imports. Our checks showed that a couple of Chinese players are now offering warranty on tyres this addresses the quality concern.Despiterecentpricecuts,tyrepricesofincumbentsintheTBRsegmentarestill20 25%morethantheirChinesepeers.Wecontinuetobelievethatonlygovernmentactionin terms of antidumping duties can allay extreme competitive pressures, which in our mind...
Key highlights: Reported flat yoy sales and that was 3% below our estimates. Chemicals & Polymers business grew 3% yoy. TTB/PFB saw 6%/5% yoy decline in sales but they saw sequential recovery 17%/16% respectively. Improved operating performance across all three segments resulted in 220bps positive surprise in EBITDA margin at 23.3% (vs. estimated 21.1%), resulting in 6% yoy rise in EBITDA to Rs 2.84 bn (vs. estimated Rs 2.65bn). The maThe core PAT (adjusted for Fx gain of Rs 63mn) at Rs 1.38bn reported 12% yoy growth and that was 11% ahead of our estimates.Phillip Capital are positive on the incremental capex towards CPB, their staggered earning implications and limited visible stock upside make them downgrade their rating on SRF to NEUTRAL from Buy with the pre?fixed TP of Rs 1600.
Trendlyne has 7 reports on SRF updated in the last year from 3 brokers with an average target of Rs 1638.3. Brokers have a rating for SRF with 1 downgrade,2 price downgrades and 1 price upgrade in past 6 months.
Top takeaways from Q1FY17 : Reported in?line sales performance by delivering healthy 40% yoy growth. That was mainly led by strong gGlumetza/gFortamet and Gavis integration in US. EBITDA missed 200bps to our estimate despite strong US sales, due to price erosion in US, expansion in domestic field force (by 1000 nos in Q4) and one?off IND?AS led inventory adjustment in Gavis. Guides for 25 ANDA launches in US in FY17 but expects delayed launch of key products like – gRenvela, gRenagel and gWelchol in FY18 (vs. H2FY17 earlier) and continued pricing pressure sequentially. Also lacks clarity about complete resolution of 483 in Goa. Hence, Phillip Capital cut FY17/FY18 US sales estimates by 7% and earnings estimates by 4%. Thus reduce their TP to Rs 1650 (3% upside), i.e 22x FY18 vs. Rs 1710 earlier and remain Neutral.
Trendlyne has 18 reports on LUPIN updated in the last year from 8 brokers with an average target of Rs 1773.9. Brokers have a rating for LUPIN with 5 price downgrades,2 price upgrades,1 upgrade in past 6 months and 1 downgrades,7 price downgrades,2 upgrades,4 price upgrades in past 1 Year.
