Hexaware Technologies (HEXW) recorded a strong 2QCY19, with revenue up 4.7% QoQ (5% QoQ in CC terms) to US$188.5mn. Adjusted for 15 day revenue impact for Mobiquity (acquired in Jun'19), USD revenue rose 2.8% QoQ, while CC revenue rose >3% QoQ. Growth components include volume growth of 3.9% QoQ and higher billing days of 1.1% QoQ, totalling 5% CC growth, while there was an adverse currency impact of 0.3% QoQ. Owing to healthy revenue growth, lower visa cost, improved billing rate, favourable delivery-mix, higher utilisation and cost efficiencies, EBIT margin rose 87bps QoQ to 14.6% (154bps above our estimate). Aided by higher margin, other income and lower tax rate, adjusted net profit surged by 21.5% QoQ with...
UltraTech Cement (UTCEM) has reported a better-than-expected operating performance in 1QFY20 despite miss on volume front. EBITDA grew by a stellar 57% YoY (+15% QoQ) to Rs25.5bn mainly led by superior and higher-than-expected realisation. Witnessing a sharp up-tick of 13.2% YoY and 12% QoQ, cement realisation/tonne came in at Rs5,018. EBITDA/tonne stood at strong Rs1,428 in 1QFY20 vs. Rs928 in 1QFY19 and Rs1,039 in 4QFY19. However, sales volume grew by mere 2% YoY to 17.86mnT, missing our estimate of 18.5mnT. Higher realisation growth was mainly supported by sharp uptick in realisation across the pockets, higher premium products sales volume (+28% YoY), less discount/incentives and higher traded sales volume. Further,...
Petronet LNG's (PLNG) reported numbers are 6%/7% lower than ours/consensus estimates in 1QFY20. Net sales fell by 6% YoY to Rs86.1bn led by 11% YoY fall in long-term LNG volume at Dahej. The Company receives higher tariffs on long-term volume compared to only Regas volume. Reported EBITDA grew by 10% YoY to Rs10.2bn (13% above our estimate), as the Company adopted Ind AS 116 with Lease Liability of Rs38.3bn. Classification of the lease rentals for the current quarter has been changed from the Cost of the Goods Sold' and Rent Expenses', as the case may be, in the P&L; account to Depreciation' and Finance Cost'. EBITDA margin improved 170bps YoY to 11.9%. Net profit fell by 5% YoY to Rs5.6bn (4% below our estimate), owing to Ind AS116, which led to Rs516mn decrease in PBT. Adoption of Ind As-116 resulted into...
Aided by strong growth across geographies in formulation segment, Aurobindo Pharma (ARBP) has delivered a better-than-expected performance in 1QFY20 with its sales/EBITDA/PAT exceeding our estimate by 4%/9%/9%, respectively. Its revenue grew by 28% YoY to Rs54bn led by US business (+43% YoY to US$387mn), ARV (+104% YoY), Europe (+16% YoY) and RoW (+22% YoY). Gross margin rose by 266bps YoY and up 262bps QoQ to 57.8% due to better product and business-mix, which led to 273bps YoY and 102bps QoQ improvement in EBITDA margin to 21.1%. Led by strong sales performance and low YoY base, EBITDA grew 47% YoY to Rs11.5bn. Resultantly, reported PAT grew by 39% YoY to Rs6.4bn. Net debt sequentially declined...
Currently, LPC has OAI status for its 4 plants i.e. (1) Mandideep Unit 1 (No new approval pending for approval); (2) Goa (30-40% of US sales; WL also; 20 pending ANDAs); (3) Somerset (~15-20% to US sales, ~40 ANDA pending ANDAs); (4) Pithampur Unit 2 (WL; 15-20 ANDAs pending for approvals; no new filings since WL). We expect the pending US FDA issues to remain as the key overhang for the...
Healthy Operating Performance on Strong Deal Execution; FY20 Guidance Maintained HCL Technologies (HCLT) reported robust revenue growth of 4.2% in CC terms in 1QFY20, while USD revenue rose by 3.8% QoQ to US$2,364mn (1.7% above our estimate). This included 50bps growth from acquired entity, Strong-Bridge Envision (SBE). Ex-acquisition, revenue growth came in at 3.3% QoQ in USD terms and 3.7% QoQ in CC terms. Segment-wise, revenue from Products & Platforms business grew by a strong 7.1% QoQ in USD terms, while Engineering and R&D; (ERD) revenue clocked a healthy 5.7% QoQ growth. IT and Business Services, its largest segment, saw a decent 3% QoQ USD revenue growth. EBIT margin declined by 193bps QoQ to 17.1%, below...
KEC International (KEC) has reported a healthy performance in 1QFY20 with its revenue growing by 15% YoY to Rs24.1bn in-line with our estimate of Rs24bn led by a strong 25% YoY growth in T&D; segment. EBITDA increased by 16% YoY, while EBITDA margin rose by 10bps YoY to 10.4%. PAT increased by 4% YoY to Rs886mn impacted by lower other income (down 75% YoY) and higher interest cost (up 23% YoY). While its order book stood at Rs190bn (1.7x of FY19 revenue) as of 1QFY20-end, it is favourably placed (L1) in orders worth ~Rs35bn. Order inflow declined significantly by 65% YoY to ~Rs10bn due to weak ordering activity in domestic T&D; business and no new order in railway segment due to General Elections. Despite lower order inflow, the...
Healthy Performance on Firm Realisation; Maintain HOLD India Cements (ICEM) has reported a healthy operating performance in 1QFY20 with EBITDA growing by 55% YoY and 26% QoQ to Rs2.4bn vs. our estimate of Rs2.1bn. Cement EBITDA/tonne stood at Rs752 as against Rs489 in 1QFY19 and Rs552 in 4QFY19, respectively. While average cement realisation increased by 8.6% YoY and 4% QoQ to Rs4685/tonne, sales volume de-grew marginally by 1% to 3.04mnT. Notably, cement operating cost/tonne marginally declined by 0.4% QoQ to Rs3,932 mainly led by lower input cost. A consistent increase in higher non-trade sales and tight liquidity conditions especially in the Southern states resulted in further working capital...
