loans. Few upsides in Q4 were (i) strong CASA growth of 27% QoQ moving up the ratio to 31.7%, up 810bps QoQ (ii) 40bps QoQ of NIM improvement to 4.24% led by continued mix change towards retail (grew 40% YoY) plus improvement in cost of funds due to sharp decline in bulk deposits replaced by retail and (iii) asset quality has held up especially in retail. Some niggling issues that will keep ROEs in lackluster are (i)steady asset growth as bank continues to adjust wholesale liabilities & assets, (ii)continued opex/assets on high retail focus and (iii)COVID impact on asset quality. may keep ROEs...
Next leg of Aarti's growth will ride on three long-term contracts worth Rs150bn, first of which has started from Q4FY20 and second from H2FY21E. We leave the estimates largely unchanged for FY21/22E. AIL's near term...
estimates by 11%/9% at Rs22.2b, led by higher margins in India and Shadeed steel operations. EBITDA of Domestic steel/Shadeed/Jindal power (JPL) rose 16%/93%/30% QoQ (+8%/+82%/25% YoY). Aided by lower interest cost, quarter turned black with PBT (before exceptional) of Rs1.9bn (PLe:loss of Rs1.5bn) against loss of Rs2.0bn/Rs4.0bn in Q3FY20/Q4FY19....
Operating cost optimized to Rs100-110mn per month during lockdown. Prelockdown monthly run-rate was Rs160-170mn. We cut our EBITDA estimates by 79%/29% for FY21/FY22 respectively as 1) we expect inventory utilization for 28 legacy/11 batch 1 stations to be at 36%/30% in FY21 and 55%/40% in FY22 respectively since COVID-19 is expected to have an adverse impact on the overall demand environment...
JSW Steel (JSTL) posted Q4FY20 EBITDA below our estimates by 11% due to lower than expected earnings in domestic subsidiaries and higher intercompany eliminations. Impacted by tepid domestic demand and lower exports, sales volume fell 8% QoQ/14% YoY to 3.7mnt (PLe:3.75mnt). Realisations rose 8% or Rs2,880/t QoQ (down 10% or Rs4,310/t YoY) to Rs40,600 (PLe:Rs40,415). Cost/t remained flat QoQ to Rs32,585 (PLe:Rs32,600)/t. Hence, EBITDA/t came in line with our estimates at Rs8,700 (PLe:Rs8,500), up 45% QoQ/14% YoY. Management guided to maintain volumes in FY21e at 15mnt on expectation...
half of Mar'20 led to spike in individual NPAs COVID provisioning (Rs5.9bn; total provisions up 220%YoY) and weak other income (down 92%QoQ/38%YoY) dented Q4FY20 earnings for HDFC with reported PAT at Rs22.33bn (declined 73%QoQ/22%YoY). While NII grew 10%QoQ/12%YoY to Rs35.4bn, it failed to save PPoP that de-grew 67%QoQ/3%YoY. Loans at Rs4509bn stood in-line growing 11%YoY/2%QoQ. Pandemic shutdown contributed to asset quality woes (NPA ~2%) as...
BYRCS reported solid results, topline grew by 82% YoY driven by high corn portfolio sales and sharp growth in CP segment. Massive sales return in 4QFY19 (57% revenue decline in 4QFY19 for core-BYRCS) led to favourable base but even excluding that growth is expected to be ~15-20% in CP. EBITDA (Rs582mn) and APAT (Rs601mn) reversed into profits from losses last year....
Stoppage of construction to impact store openings in FY21. We are cutting FY21 and FY22 EPS estimates of D'Mart by 16.8% and 8.1% due to 1) Lockdown impact on footfalls/sales 2) higher cost of operations 3) delay in store openings and safety cost. Although worst seems over given MOM improvement in May sales, expect near term margins to suffer due to...
We have upgraded our topline/EBITDA/APAT by 3%/3.6%/11% for FY21E and 2.6%/0.6%/5.8% for FY22E but lowered our target price from Rs542 to Rs497 based on 7.0x FY22E EV/EBITDA (implied P/E on TP- 11x) due to lower than expected debt reduction (considering perpetual bond as part of debt). UPL...
Introduction of price brands based on duration of flight After nearly 2 months of being grounded, Govt has finally announced resumption of domestic air travel from May 25, 2020, in a phased manner. Initially airlines shall operate at 1/3rd of the approved 2020 summer schedule and the number of flights will increase in a calibrated manner. However, in an unprecedented move, the Govt has introduced price bands on routes. With Q2 traditionally being the weakest of all quarters, price band is likely to further hamper airlines from achieving breakeven fares/load factors. With...
respectively based on 1) Covid impact on production and sales in 1Q 2) 3) delay in opening of high focus modern trade in top cities. Mgt strategy is now centered on 1) gaining share in urban India with value added premium products (Bamboo Toothbrush, Charcoal Toothpaste and naturals segment...
UTCEM reported Q4FY20 earnings in line with our and consensus estimates. It underperformed industry with sharper fall in volumes. However, we believe that it was calculated move to sacrifice volumes in order to expand realisations of Century cement through gradual migration to Ultratech brand. Century cement's realisations improved by Rs160/t with shift to Ultratech...
We continue to believe that DRRD is one of the best play in large-cap pharma space a) due to its control on overhead expenses, b) focus on domestic business, c) injectable pipeline for US and EU, d) net cash on books and e) resolution for all major FDA issues. Over FY21-22E, DRRD will likely see change is business mix with high margin domestic formulation (17% of...
Finacing concerns for domestic 3Ws although no conern on 2W so-far. BJAUT results look better at Revenue/EBITDA/PAT where EBITDA margin came in at 18.4% (PLe 16.2%), expanding 50bp QoQ. The beat in margin was led by higher realizations at Rs68.7k/unit (PLe Rs63.7k/unit) aided by favorable mix and forex movement. We have slashed FY21/22 eps estimates by 5.3%/2.6% as we cut sales by 11%/8% due to uncertainties in both domestic and exports volumes (both in 2W and 3W). BJAUT is already...
Demand for used CVs declined, as price difference between new and used CVs has reduced to only Rs1lac. We hosted an investor call with Mr. Chirag Katira, Project Head- All India Motor Transport Congress (AIMTC) and CEO & Director, Shree Nasik Goods Transport Co. to gain insights on impact of COVID-19 on CV fleet operators and likely challenges going forward. Their challenges include i) being paid last in the whole cycle, ii) Delayed payment from MNCs by 90-120 days and further interruption from SMEs....
Demand for used CVs declined, as price difference between new and used CVs has reduced to only Rs1lac. We hosted an investor call with Mr. Chirag Katira, Project Head- All India Motor Transport Congress (AIMTC) and CEO & Director, Shree Nasik Goods Transport Co. to gain insights on impact of COVID-19 on CV fleet operators and likely challenges going forward. Their challenges include i) being paid last in the whole cycle, ii) Delayed payment from MNCs by 90-120 days and further interruption from SMEs....
(down 41%QoQ/19%YoY) for BAF. The 81-day quarter witnessed 5%QoQ growth in customer franchise, 1.4%QoQ/27%YoY growth in AUM translating into 3%QoQ/38%YoY increase in NII. Steady NII traction and lower opex (declined 5%QoQ) despite collection infra ramp-up aided healthy operating profit (up 8%QoQ/46%YoY). While inherent unsecured short tenure business stands susceptible to pandemic shocks, incremental asset quality deterioration should not exasperate as: (a) 68% of customers under morat...
costs and near normal small town delivery sales are positive, we see near term headwinds from 1) closure of 30% stores with opening unlikely before Mid June 2) loss of dine in sales due to social distancing 3) lower store...
RIL have raised Rs670bn through sale of stake in Jio platform to multiple global investors. To further strengthen B/S and capitalize on global opportunities amidst the Covid-19 pandemic, RIL plans to raise Rs531bn...
28-30% of revenue compared to last year in Q1FY21E and gradual recovery from Q2FY21E. As per the management, 60-65% of DLPL's total operating cost is fixed in nature and the new additional expense (cost of safety for...
