construction capacity is 19.3 GW and expected commercial capacity addition would be around 3.5GW in FY20. According to management, the regulated equity is expected to be Rs600 bn by the end of FY20 compared to ~Rs540 bn at the end of FY19. The company's FGD implementation plan is on track with final awarding materializing by end of this year. The stock is currently trading at P/BV 1.1x FY21E Consensus BV of Rs147. The stock offers attractive dividend yield of ~5%. Not rated. Robust capacity addition pipeline: NTPC's capacity addition pipeline remains...
1Q FY20: PL Universe 1Q sales grew 4.3% (Est. 3.5%), Adjusted PAT grew 6.7% (Est. 6.9%). Excluding Banks, sales grew 3.7% while PAT declined by 9.7%. Automobiles, Metals, Oil and Gas and Agro Chemicals were worst suffers with 54%, 26.7%, 19%, 39% decline in PAT. Cement, Banks, NBFC and Pharma posted strong numbers, mainly on a low base. Earnings breadth was negative as...
a couple of years back. Milo is the largest MFD brand globally with sales exceeding USD2.5bn. Milo is the Global leader in malt-based drinks with over 36 million serves consumed daily in more than 50 countries. Milo mainly competes in the chocolate segment which has presence of players like Chocolate Horlicks, Bournvita, Boost and Complan. We believe that the launch is well timed given that Glaxo Consumer is in the process of being acquired by HUL and Complan is in integration process post...
1Q FY20: PL Universe 1Q sales grew 4.3% (Est. 3.5%), Adjusted PAT grew 6.7% (Est. 6.9%). Excluding Banks, sales grew 3.7% while PAT declined by 9.7%. Automobiles, Metals, Oil and Gas and Agro Chemicals were worst suffers with 54%, 26.7%, 19%, 39% decline in PAT. Cement, Banks, NBFC and Pharma posted strong numbers, mainly on a low base. Earnings breadth was negative as...
Company continued to deliver strongly on debt. Net debt fell 4% QoQ/Rs14bn to Rs376bn due to higher FCF generation and proceeds of Rs5bn from conversion of options to shares by promoters. Management expects to maintain Q1 EBITDA margins in domestic steel operations due to lower fall in realisations (due to its better mix inclined towards Rails, structural and beams) than market, offset by reduction in iron ore and coal cost. Street remains doubtful on JSP's ability to generate ample FCF to meet its...
NMDC reported Q1FY20 earnings in line with our estimates. The sharp rise in Change in Estimates | Target | Reco iron prices aftermath collapse of Vale's Brumadinho dam in Brazil helped NMDC to post strong earnings growth in last couple of quarters. However, we...
delivered CC revenue growth of -1%-4.2% QoQ & Tier-II delivered USD revenue growth of -5.2%-4.7% QoQ. The management across our coverage companies has sighted weakness towards US, Europe & BFSI sector (inclined towards US capital markets). IT companies under our coverage are uncertain on Q2 revenue growth (TCS, Wipro) which we believe could incrementally reflect on FY20E growth. Guidance cuts or caution was given by LTI (mentioned improvement Q3 onwards), LTTS (cut guidance from 1416% to 12-14%, weakness due to hi-tech & telecom), Hexaware (cuts guidance from 20% to 19% due to headwinds on one BFS client) & Cyient...
base) with deteriorating visibility on the state of operations. Sales volume in last four months fell by 2% YoY. The performance stands unjustified in light of two major rail lines (loading incremental 20mtpa or 3.5% growth over FY19 base) commissioned in Odisha and Jharkhand during later part of FY19. Contractor related issues, lack of last mile connectivity at recently...
DLPL's revenue, adj. EBITDA and PAT grew 15%, 21% and 19% YoY Change in Estimates | Target | Reco With strong cash flow and growth in new customers and packaged offer, the...
delivered CC revenue growth of -1%-4.2% QoQ & Tier-II delivered USD revenue growth of -5.2%-4.7% QoQ. The management across our coverage companies has sighted weakness towards US, Europe & BFSI sector (inclined towards US capital markets). IT companies under our coverage are uncertain on Q2 revenue growth (TCS, Wipro) which we believe could incrementally reflect on FY20E growth. Guidance cuts or caution was given by LTI (mentioned improvement Q3 onwards), LTTS (cut guidance from 1416% to 12-14%, weakness due to hi-tech & telecom), Hexaware (cuts guidance from 20% to 19% due to headwinds on one BFS client) & Cyient...
Apar Industries (Apar) reported strong set of numbers for 1QFY20 with Change in Estimates | Target | Reco revenue/PAT up 33%/42% YoY to Rs20bn/Rs412 mn (PLe Rs17bn/Rs334 mn). The top-line growth was led by growth across segments that is...
for better US prospects as it expects two key approvals of limited competition drugs (one injectable and one CGT drug) as well as turnaround of gMupirocin in the next three quarters of FY20E. With launch of in-licensed SGLT2...
Engineers India Ltd (EIL) reported good set of numbers for 1QFY20, led by higher contribution coming from Consultancy Segment. Revenue/PAT up 28%/43% YoY, mainly led by strong revenue performance in Consultancy segment which grew by 38% YoY at Rs4.4 bn (included Rs966mn on account of change in order) and margin expansion in Consultancy segment. Order inflow during the quarter stood at Rs9.4 bn against Rs832 mn in 1QFY19, taking order backlog to Rs114 bn (42% Consultancy). Management indicated strong hydrocarbon tender activities in international geographies...
3.2mn (PLe: 3.4mn) t. Realisations rose 1.7% QoQ/Rs740 (6% YoY/Rs3,050) to Rs45,075 above our estimate of Rs44,210. Cost/t rose 3% QoQ/Rs1,325 (flat YoY) at Rs40,745 (PLe:Rs40,630). Impacted by lower scale, EBITDA/t fell 9% QoQ (38% YoY) to Rs4,870 (PLe:Rs4,030). Hence, EBITDA fell 29% QoQ (39% YoY) to Rs15.8bn, ahead of our estimates of Rs13.6bn. Due to better than expected margins, PAT came above our estimate at Rs688mn (PLe: loss...
diagnostic tests. Overall, Thyrocar increased 10% price for its sick care business in B2B segment while price of few tests in preventive care marginally reduced in Q1FY20. Management guided that the benefits of price rationalization in Aarogyam 1.1, 1.2 and 1.3 will be visible in FY20E. Hence, we expect better traction in volumes and growth in the remaining three quarters of FY20E. Management guided for increased focus on B-2-B business with higher incentives and revenues per franchisee as it focusses...
Introduction of natural gas to GST will add volume momentum. We maintain our estimates for FY20 & FY21. IGL remains a play on rising pollution concerns. Expanding geographical reach coupled with increased cars/taxis conversion and new bus additions in Delhi will drive earnings. Also, report of ban on competing industrial fuel is a major positive. We see...
Q1FY20 from its average contribution of 25%. This has resulted in higher material costs and lower gross margin by 360bps QoQ. Management guided that normalized gross margin will return from Q2FY20E onwards. The higher material costs also contributed from the higher price of material by 100bps out of 360bps in Q1FY20. IPCA is global leader in losartan production (Rs1.2bn sales in FY19) and its valsartan sales is improving from current run rate of Rs25m/month. It guided more than 20% growth in API sales in FY20E....
Total Industry volume is down 3% to 5.4 mn tons. Urea/ DAP/ NPK sales are down 1%/18%/6% YoY to 3.0 mn tons/0.7 mn tons/0.9 mn tonnes respectively. SSP volumes are up 15% to 0.4 mn tons. Industry domestic sales are down 10% driven by 13%/7% decline in sales of Urea/NPK...
flat YoY & 10-Yr average) and substantial improvement in soil moisture levels. Andhra Pradesh and Rajasthan has shown most improvement in sowing but Tamil Nadu and Odisha continue to struggle along with other Crop-wise top 7 producing states eastern states. According to our channel checks, the crop damage is...
SBI life growth was steady at 24% YoY with strong MoM growth of 25% and sighted continuous increase in ticket size (18% YoY), while Max life Source: Life Insurance Council, PL...
