V.S.T. Tillers Tractors (VSTT) reported a ~12% YoY growth in revenues during 4QFY17. The company sold 7,766 tillers (down 2% YoY basis; up 92% on a QoQ basis), while tractor volumes came in at 2,567 units (up ~33% YoY). The tiller business contributed to a little over INR 1 bn while tractor sales stood at INR 750 mn. At the operating level, EBITDA numbers came in flat as margins contracted to 14.6% as compared to 16.3% in same quarter last year. Performance in the quarter is in line with the guidance that was provided by the management earlier during the year gone by there were higher investments made towards...
Sadbhav Infrastructure ended FY17 with PAT losses of INR 3.5 bn, down from loss of INR 4.0 bn reported in FY16. However, adjusting for non-cash items (MMR provision, depreciation and non-cash financial itms), the cash profit stood at INR 1.2 bn; implying positive operating leverage as the road portfolio is getting in steady state phase. We estimate the gross toll + annuity collection to grow 2.5x to INR 21.6 bn by FY20 from INR 8.5 bn in FY17 as the new projects become operational and the existing ones' stabilize. The standalone debt stands at INR 12.7 bn, however it's not a major concern as the...
PI Industries (PII) reported a 4% YoY decline in revenues during 4QFY17. Growth during the quarter was muted due to dull global market conditions. Domestic business was muted due to delayed and uneven rainfall distribution as well as lower pest infestation in India. At the operating level however, PII continued to perform well as its EBITDA margins came in at 25.4% during 4QFY17 as compared to 18.6% in the corresponding quarter last year (21.2% margins in 3QFY17). Margin expansion was led by favourable product mix and leverage. For the full year FY17, revenues came in higher by 8% YoY led by an 11% YoY increase in exports while domestic business rose by 5% YoY. PII has been able to...
BSL posted an 18.5% rise in 4QFY17 consolidated net sales to INR 13.8bn supported by a 20%/18% growth in Unitary Products (UP)/ Electro Mechanical Projects (EMP) sales. Professional Electronics & Industrials Systems (PEIS) sales rose 8% to INR 568mn. EBIT margins in UP/EMP/PEIS were stable at/rose 185bps to/rose 529bps to 10.5%/4.8%/19.4%. EBITDAM was stable at 5.5%. Adjusted net profit fell by ~6% to INR 372mn; a result of lower other income (down 48% to INR 37mn) and higher effective tax rate (up 813bps to 26.4%). BSL would have grown 10 percentage points more than the industry in 4Q. With a market share of ~11.5%, management expects...
Future Retail Ltd (FRL) is the retailing arm of the Future Group, selling products ranging from food, apparels, appliances to general merchandise through large and small store formats including Big Bazaar (BB), Easyday (ED), Foodhall, Fashion at Big Bazaar (FBB), and ezone. As of 31 December 2016, FRL had retail space of ~ 13 mn square feet (sq ft) with BB forming ~75% of the total space; ED~ 6%; HomeTown~10% and FBB (standalone stores) and ezone contributed equally to the balance. We like FRL's leadership position in the fast growing modern retail space; focus on improving profitability; and the strong expansion plans within the retail space. We expect FRL to...
