Apollo Tyres Limited (ATL) Q1FY21 results were ahead of estimates, mainly driven by better-than-expected revenues. A sharp recovery in replacement demand in both domestic as well as the European businesses helped revenue exceed estimates. Operating margins were better than expectations mainly due to employee furlough benefits to the tune of Euro 7 million (Rs 60 cr). The company reported lower than expected loss. With the government opening up the economy, domestic replacement demand has recovered sharply, reporting a 10% y-o-y growth in June 2020 and a 7-8% y-o-y growth in July 2020. As per management the recovery in replacement demand...
Torrent Pharmaceuticals Limited (Torrent) reported strong performance for Q1FY2021. Revenues at Rs. 2,056 crore increased by 1.7% y-o-y on account of 2% growth in India business, while other geographies reported a decline. The chronic heavy portfolio in the Indian markets led to revenue growth. Operating profit at Rs. 661 crore increased by 22% y-o-y and was better than estimates. Operating profit margin (OPM) at 32% expanded by 540 bps y-o-y, backed by expansion in gross margins and lower other expenses. Strong operating performance percolated to the bottom line as well. Consequently, PAT for the quarter stood at Rs. 321 crore, up impressively by 49% y-o-y and was ahead...
State Bank of India (SBI) posted encouraging results with asset-quality improvement on a sequential basis, even as operational performance came mixed, aided by one-time gain of stake sale benefit of Rs. 1,539 crore from the subsidiary. However, weak other income and higher provisions expenses resulted in PPOP and PAT missing estimates. Net interest income (NII) came at Rs. 26,642 crore, up 16.1% y-o-y and 17% q-o-q, in line with estimates. Non-interest income came at Rs. 7,957 crore, flat y-o-y but was down by 40% q-o-q, mainly as the quarter saw impact of fee and charge waivers amidst pandemic. However, the key is the balance sheet strength and asset quality, on which parameters the bank fares well....
Bharti Airtel delivered in-line revenue and margin performance despite strict nationwide lockdown mandates, while net loss widened owing to incremental provision for the AGR dues. Further, the company positively surprised by reporting improvement in ARPU despite slower 4G subscriber additions, nil revenue from international segment, SIM consolidation at the bottom of the pyramid and increase in worker migration. Consolidated revenues increased by 0.9% q-o-q (up 15.4% y-o-y) to Rs. 23,939 crore, in-line with our estimates. India wireless/Africa businesses revenue declined 0.6% each on q-o-q basis, but they grew 18.5%/16.4%...
HDFC Limited's results were mixed with better-than-expected operational results (benefitted by stake sale proceeds) and sequentially improved asset quality performance but the pace of loan growth slowed (understandably due to the lockdown) and moratorium book stood at 22.4% for overall loans; (from 26% earlier), the decline was lesser compared to other peers. Net interest income (NII, Calculated) came at Rs. 3,518.8 crore, up 5% y-o-y and came better than expectations, even though assets under management (AUM) growth slowed. PAT came at Rs. 3,052 crore (up 36.7% q-o-q but was down 4.7% y-o-y, as...
ICICI Bank posted good numbers for Q1FY2021, where operating performance was better than expectations, and large provisions (partly due to COVID-19) resulted in lower-than-expected PAT. Asset quality improved on a sequential basis, with moratorium book at 17.5% (from 30% in Q4FY2020). Net interest margin (NIM) was at 3.69% (down 18 bps q-o-q) mainly due to high deposit growth as compared to advances growth. Net interest income (NII) at Rs. 9,280 crore was up 19.9% y-o-y, and came in line with expectations. While other income was boosted by stake sale gains (Rs. 3,036 crore) and higher treasury income,...
Larsen and Toubro (L&T;) reported decent performance in Q1FY2021 despite challenges. The company's operational performance was broadly in line with our estimates. L&T;'s revenue declined by 28% y-o-y to Rs. 21,260 crore, affected by 53% y-o-y decline in E&C; revenue (33% of revenue). L&T;'s core E&C; was affected by COVID-19 led stringent lockdown hampering project execution. The company lost Rs. 12,500 crore revenue in Q1FY2021 due to the lockdown. Operating profit margin (OPM) at 7.6% was lower by -273 bps y-o-y (marginally lower than estimates) as margins shrank across all segments. E&C; margins dipped by 340 bps to 3.9%, while service margins declined by 875 bps to 10.4% on losses on developmental...
Initiating coverage on Tata Consumer Products Limited (TCPL) earlier named Tata Global Beverages with a Buy rating and PT of Rs. 484. TCPL will become strong play with integration of Tata Chemicals' consumer business; share of consistently-performing India business in revenue to rise to 61% from 48%, margins too can rise 60-80 bps in the near term. Appointment of consumer expert Mr. Sunil D'Souza as MD & CEO improves earnings visibility; consolidated revenue and earnings (including TCL's consumer business) to clock CAGR of 10% and 20% over FY2020-23E....
Bajaj Finserv (BFS; holding company) saw consolidated net profit in Q1FY21 rise by 43.7% to Rs. 1,215 crore, while revenue increased by 15.6% y-o-y to Rs. 14,190 crore, which were better than expectations, mainly on the back of strong earnings from its insurance subsidiaries. The lending subsidiary Bajaj Finance Ltd (BFL) reported mixed numbers for Q1FY20, with tepid business growth, but a q-o-q improvement in asset quality and a decline in moratorium share to 15.7% of AUM from 27%, was a positive. Assets under management (AUM) stood at Rs. 138,055 crore, down 6% q-o-q due to steps like more stringent loan-to-value (LTV) ratios, tightened credit filters, etc....
Axis Bank posted strong numbers for Q1FY2020. While operating results were better than expectations, and moratorium book declined on a sequential basis, adopting a conservative provision policy and slow growth on business impacted the fee income. Notably, the moratorium book has declined to 9.7% from ~26% earlier, which is a clear positive. Net interest income (NII) increased by 19.5% y-o-y to Rs. 6,985 crore (better than expectations), while non-interest income decreased by 33% y-o-y to Rs. 2587 crore (lower growth, waiver of charges etc). Retail fees constituted 57% of the total fee income. Net interest margin declined to...
