Time Technoplast Ltd (TTL) Q2FY19 net revenue increased by 14.2% YoY in Q2FY19, driven by 9% growth in volumes. However, EBITDA declined by 1.6% YoY, while EBITDA margins contracted 209bps YoY to 13%, impacted by input cost inflation and rupee depreciation. Further, decline in the other income and higher depreciation, interest & tax expense resulted in 24.7% YoY decline in PAT.
Indraprastha Gas Ltd. (IGL) is a JV between GAIL and BPCL; while Government of NCT of Delhi holds 5% equity. IGL operates in two segments - compressed natural gas (CNG) and piped natural gas (PNG). The CNG business (76% of FY18 sales) involves distribution of CNG to vehicles through gas stations. In PNG (24%), IGL supplies natural gas to homes and commercial/ industrial users.
Headquartered in Gurugram, Whirlpool of India Limited (WIL) is one of Indias leading manufacturer and marketers of major home appliances like Refrigerators (57% of revenues), Washing machines (21% of revenues), Air Conditioners (9% of revenues) and Microwave ovens.
TeamLease Services Ltd. (TEAM) is the largest player in the organized staffing industry with a market share of ~6%. It has presence in all 29 states with a network of partnerships delivering in over 6,000 locations with 2,250 clients and 1,700 core employees.
Going forward, as we move into December, the fortunate turn of events with the sharp correction in crude oil prices and appreciation in rupee are definitely comforting factors for the Indian economy and consequently the market. Nonetheless, it is advisable to take note of the various important global / domestic events lined up in December, which would have a strong bearing in providing further direction to the market in the short-term.
Nifty futures has rolled around 71% vs 76% with respect to the last month, the open interest for the new December contract is also lower by 20 lkh. Long unwinding in Nifty futures was witnessed month on month. The range for Nifty might be at 11080-10700 and Banknifty at 27400-26500 for first fortnight of December series.
Incorporated in 1974, Emami Limited is one of the leading and fastest growing personal and healthcare companies in India, with an enviable portfolio of over 300 household products.
Mold-Tek Packaging Ltds (MPL) Q2FY19 net revenue grew by 27.5% YoY in Q2FY19, driven by healthy volume growth of 19%. However, growth in EBITDA was relatively lower at 18.9% YoY, while EBITDA margins declined by 120bps YoY at 16.5%, impacted by input cost inflation.
Established in 1968 in New Delhi, KEI Industries Ltd. (KEI) is engaged in manufacturing and marketing of Extra-High Voltage (EHV), Medium Voltage (MV) and Low Voltage (LV) power cables & House Wire. It has a diversified business model spread across different markets (domestic 87% and exports 13%) and segments (Retail 32% and Institutional 55%).
Asian Granitos (AGIL) Q2FY19 numbers were disappointing and below our estimates on all parameters. While the volume growth was 8.4% YoY, poor realizations impacted the overall revenue growth, which stood in low single digits at 2.9% YoY. EBITDA margins contracted sharply by 712bps YoY to 6.4%, impacted by muted realization, higher gas prices and staff cost.
Fiem Industries Ltd (Fiem) reported weak set of numbers in Q2FY19, which was below our estimates. While revenue growth was healthy at 20.8% YoY, the operating profit grew at meagre 5.6% YoY as margins declined 145bps during the quarter. Further, dismal operational performance and lower other income led to net profit growth of 3% YoY.
Apollo Tyres (APTL) reported decent set of numbers for Q2FY19. While revenue and operating profit growth came in line with our estimates at 22.5% YoY and 28.2% YoY, the net profit growth was restricted to 4.2% YoY as the company made provision of Rs. 40 cr after IL&FS defaulted on repayment of its deposit.
Srikalahasthi Pipes Ltd (SPL) registered strong revenue growth of 28.6% YoY in Q2FY19, largely driven by volumes. However, EBITDA and PAT declined by 15% & 10.5% respectively, which was disappointing and significantly below our estimates. Impacted by muted realizations, input cost inflation and rupee depreciation, EBITDA margins contracted sharply by 657bps YoY to 12.8%.
VIP Industries (VIP) reported healthy set of numbers for Q2FY19 with a revenue and PAT growth of 29.9% & 37.8% YoY. Aided by operating leverage (strong volume growth of ~35%) and consumption of low cost inventory, EBITDA grew by 39.6%, while EBITDA margin improved by 88bps YoY to 12.7%. PAT growth stood healthy at 37.7% YoY.
Wim plast ltd (WPL) reported subdued numbers for Q2FY19, which were below our expectation. Its revenue declined by 22.1% yoy due to lower sales & volume growth. Gross profit of the company de-grew by 8.8% yoy, due to decline in sales. However, on other hand, the companys EBITDA and PAT margins improved 233bps/15bps yoy, respectively.
Ashok Leyland (ALL) reported strong set of numbers, which were in line with our estimates. The revenue growth of 25.2% YoY was on account of volume growth of 26.8% YoY and marginal decline in realization. However, margins came in marginally below our estimates on account of weak product mix and increase in discounts during the quarter. Further, adjusted net profit grew by 41.1% YoY led by improved operational performance, lower interest expense and tax rate in Q2FY19.
Century Plyboards (India) Ltds (CPIL) standalone Q2FY19 numbers were disappointing, especially on the profit front. Net revenue increased by 18.9% YoY, mainly led by incremental sales from MDF division. However, EBITDA growth stood flat with 245bps YoY contraction in EBITDA margins, while PAT declined by 5.8% YoY, impacted by significant margin decline in Laminates & MDF segment.
SML Isuzu (SML) reported weak set of numbers in Q2FY19, which were lower than our estimates. While net revenue grew by 30.1% YoY led by volume growth of 27.7% YoY, the loss widened on a YoY basis to Rs. 7.7 cr on account of weak operational performance and higher depreciation. The operating margins declined by 151bps YoY to 0.5% due to higher raw material cost and other expense. Despite headwinds in the near term, with depreciating currency and increased cost pressures.
Symphony Ltd reported mix set of numbers for Q2FY19. While revenue growth was in-line with our projection, the company disappointed on the profit front. At the consolidated level, revenue grew by 5.2%, aided by first time consolidation of Climate Technologies, while EBITDA & APAT declined by 31.7% & 30% YoY respectively.
Reliance Nippon Life Asset Management (RNAM) reported a net profit growth of 10.4% YoY at Rs. 111 cr. The overall mutual fund QAAUM grew at a healthy pace of 5.8% YoY, which was led by 24.6% YoY growth in Equity QAAUM. However, debt QAAUM declined on a YoY basis due to redemption pressure witnessed across the industry during the quarter.
