investors to wait for a better entry point. Q1FY21E is a washout quarter that captures full impact of uncertainty in business from COVID-19 led by lockdown, supply side compression & demand pullback. We expect retail, travel & transport, hospitality and oil & Gas verticals to be severely impacted and do not expect recovery in Q2 also. We expect revenue trajectory to show resilience in Q2FY21 before starting growth (
investors to wait for a better entry point. Q1FY21E is a washout quarter that captures full impact of uncertainty in business from COVID-19 led by lockdown, supply side compression & demand pullback. We expect retail, travel & transport, hospitality and oil & Gas verticals to be severely impacted and do not expect recovery in Q2 also. We expect revenue trajectory to show resilience in Q2FY21 before starting growth (
Believe reorganization is a long term positive for MSS. MSS board approved the proposed demerger of domestic wiring harness (DWH 57.4%/6.2% of Standalone/Consol revenues), that will be listed with mirror shareholding (likely by July-21). The board also approved merger of...
Order Inflow came in at ~Rs6.6bn in the quarter, down 33% YoY. Order book stood at Rs59bn providing revenue visibility for the next 1.5 years. GE T&D; (GETD) reported weak set of numbers for the quarter with a revenue de-growth of 26% YoY leading to loss at bottom-line. Sales during the quarter got impacted by Rs2bn owing to declining HVDC (~Rs400mn), lockdown impact, global supply chain issues and delay in projects by customers. Order...
alongside growth could result in possible rerating APL Apollo Tubes (APAT) reported good Q4FY20 results amidst tough times. Cons revenue de-grew 9.8% YoY to Rs 18,885m on back of 4.1% volume de-growth to 401,000 MT. While sales in metros have taken a back seat, Tier 2&3 cities are showing strong traction and now account for 75% of revenues (40% last year). EBITDA/ton declined 9.9% YoY to Rs 2,989 due to lower fixed cost absorption. PAT declined 1.5% YoY to Rs 608m. FY20 Revenue/EBITDA/PBT grew 8%/21.5%/30.6% to Rs77.2bn/4.8bn/2.9bn respectively. Volumes grew by 22.7% to 16,43,099 MT...
alongside growth could result in possible rerating APL Apollo Tubes (APAT) reported good Q4FY20 results amidst tough times. Cons revenue de-grew 9.8% YoY to Rs 18,885m on back of 4.1% volume de-growth to 401,000 MT. While sales in metros have taken a back seat, Tier 2&3 cities are showing strong traction and now account for 75% of revenues (40% last year). EBITDA/ton declined 9.9% YoY to Rs 2,989 due to lower fixed cost absorption. PAT declined 1.5% YoY to Rs 608m. FY20 Revenue/EBITDA/PBT grew 8%/21.5%/30.6% to Rs77.2bn/4.8bn/2.9bn respectively. Volumes grew by 22.7% to 16,43,099 MT...
rationalization by 10-20% to result in cost savings in FY21. COVID-19 led to a revenue loss/spillover of Rs1.6-1.8bn. While cost generation at Rs486mn was below expectations of Rs1.2bn as lockdown impacted collection efforts and led to inventory pile up. Given the uncertain timeline regarding start of the upcoming academic year, full recovery of...
Due to deferments of orders, order Inflow was down 59% YoY at Rs28.7bn in 4Q. Order Book stands healthy at Rs520bn as on 4QFY20. Bharat Electronics (BEL) reported a strong quarter where revenue grew by 49% YoY leading to high profitability. Perhaps Covid-19 pandemic deferred many orders thereby leading to decline in order Inflows by 59% YoY to Rs28.7bn, during the quarter. Order book stood healthy at Rs520bn providing revenue visibility going ahead. Key projects executed in FY20 include Part...
Operations resumed at all project sites with labour force at ~25% pre-covid levels (peer avg of 40-50%); Company expects to reach ~50% by Aug'20. Ahluwalia Contracts (ACIL) results were a mixed bag with revenues growing 14.4% YoY despite impact of nationwide lockdown however margins were hit...
We cut our estimates for FY21/22E to factor in lower gas realization and FY20 actuals. Global crude oil and gas prices are likely to remain weak given weak global macros and rising supplies. ONGC stock has underperformed the broader index due to concerns on divestment of Government of India share and inefficient capital allocation policies. However, ONGC's gas volume growth is likely to improve from new supplies. Reiterate BUY with a Price...
Tata Steel (TATA) reported Q4FY20 EBITDA above our/consensus estimates by 12%/8% at Rs46.5bn (up 48% QoQ/down 38% YoY), led by higher than expected earnings in TATA Steel Europe (TSE). While, Indian operations reported earnings in line with our expectation. Stock moved up ~20% over last couple of months in light of improvement in global prices (up 15% from bottom), low input prices and gradual recovery in domestic demand. However, we expect prices to weaken in H2CY20 due to ease in China's pent-up demand and sharp increase in Chinese steel...
Likely imposition of Anti-Dumping Duty to aid profitability. We lower our FY21/22E earnings estimates by 19/1% to factor in near term weakness in volumes. While near term demand slowdown in China and India...
Fleet utilzation in June'20 increased to ~40-45% (v/s 25-30% in May'20). for the month of June largely led by i) pent up demand (~45%) ii) marriage season demand (~35%), iii) robust Rabi crop output and iv) increased preference for personal mobility to drive shift towards entry level products. Cancellation rates for the booking happened during April-May remained low (~15%). However, urban demand continued to remain subdued due to i) unstable...
ACN management indicated demand for IT services in digital & overall transformation programs. The key point to note is that the company did not face significant cancellations or pricing pressure. WFH transition was smooth...
due to weak spot LNG price to make up for weak GRMs. We lower our FY21/22 earnings estimates as we update FY20 actuals. During FY20, core standalone EBIDTA adjusted for inventory and forex loss was healthy at Rs280bn (-10%YoY) despite lower refining margins ($0.08/bbl vs $5.4/bbl in FY19). Sharp drop in crude oil prices dragged down reported FY20 PAT, however, with recovering crude oil prices part of the losses to be...
Strong performance: GAIL reported better than expected Q4FY20 resultsEBITDA Rs24.7bn (PLe: Rs16.9bn; +47% YoY) and PBT at Rs24.5bn (PLe Rs16.7bn; +19% YoY), respectively. EBIDTA also included provision write back of Rs1.38bn towards Konkan LNG impairment, Rs1.79bn for Gail Global USA and Rs1.17 for RGPPL. PAT at Rs 28.1bn got a boost from tax write back as company moved to lower tax regime. For FY20, EBIDTA and PBT of Rs83.6bn (-12%YoY) and Rs78bn (-17%YoY) respectively. PAT at Rs64.1bn...
We maintain HOLD on INDR and wait for more visibility post Q1FY21E considering that this quarter is usually weak due to seasonality effect plus COVID scenario could possibly lead to a double blow. FY20 was a recovery and CAPEX phase for INDR given 1) Remediation work for its Goa facility 2) Expansion of API segment with Patalganga Unit 3) Restructuring of Domestic...
visa holders currently in the US, nor does it affect renewal or change of status of existing visa holders inside US. No changes in OPT (optional practical training program) applicable to STEM...
visa holders currently in the US, nor does it affect renewal or change of status of existing visa holders inside US. No changes in OPT (optional practical training program) applicable to STEM...
We have drastically cut our EBITDA estimates for FY21/FY22 as 1) fixed cost absorption will be a challenge in a weak demand environment (inventory utilization for 35 legacy/17 batch 1/21batch 2 stations is expected to be 55%/15%/10% in FY21E) 2) recovery in non-FCT business will be back ended...
