Driven by robust 35%/46% YoY growth in both VSF and chemical segments coupled with merger of some of the businesses of ABNL with standalone operations, revenue grew by strong 75% YoY in Q1FY19 on standalone basis. Resultantly, standalone EBITDA margin improved sharply by 175 bps YoY driven...

GNPA/NNPA ratios slipped to 3.1%/1.8 against 2.4%/1.3 YoY caused by flood in Kerala & corporate slippages. Loan book grew by 25% YoY with a whopping growth across Retail, SME and Corporate segments, while deposits grew by 21.5% YoY....

Mindtree's (MTCL) 2.4% constant currency (CC) revenue growth QoQ in 2QFY19 was significantly below our estimate of 4.7%. While it had given guidance of slightly lower growth' vis-a-vis 1QFY19, it turned out to be significantly lower'. We are not sure after the analyst call that whether the turn of events really surprised MTCL or it was a case of incorrect guidance after an abnormally strong 1QFY19 (8.2% CC growth). In fact, at the analyst meet that was held a month ago (link here), MTCL did not drop any hint about this near-term weakness in growth or about the macro concerns in clients it alluded to on the call. After being very positive on demand so far, MTCL has suddenly turned cautious,...

Maintain BUY with a TP of 209 (2x Sept-20E ABV of Rs 104). DCBBs 2Q results were impressive, particularly, the stable asset quality (esp. in the mortgage business) on account of lower slippages, sustained business momentum (+27%), controlled costs (core C-I improved ~360bps) and further decline in provisions (even as PCR inched up). RWA remained constant even as the loan book grew 4% QoQ. While the CASA ratio dipped QoQ, 30% SA growth was promising.

Mindtree delivered a weak performance for 2QFY19 with miss on USD Change in Estimates | Target | Reco income. Revenues came at USD246.4mn were up 2% QoQ and below our...

Steady quarter: Cyient delivered a steady performance for 2QFY19 with a marginal Change in Estimates | Target | Reco beat on revenues and margins. Revenues came at USD 169mn up 5% QoQ and...

Karnataka Bank Ltd Q2FY19 profitability has substantially improved YoY. It has reported PAT of Rs 112 cr. in Q2FY19 vs Rs. 93 cr. in the corresponding quarter of last fiscal year. On a QoQ basis, the net profit fell by 32%. Operating profit of the bank...

Asset quality continued to remain under pressure as Gross non-performing assets (NPA) ratio increased by 97 bps QoQ to 8.1% in Q1FY19. However, RECL had to make incremental provisions of Rs5,800cr under IND-AS, consequently, provision coverage ratio (PCR) improved by 2685 bps QoQ to 47.4%. It also helped the company to improve Net NPA ratio by 141 bps sequentially to 4.3%. The company also provided Rs1,700cr against standard private exposure which provides further comfort. However, with ~60% of private sector marked as stress assets, we believe that the company's asset quality will improve gradually...

Infosys (INFO) reported 4.2% QoQ CC revenue growth in Q2FY19, well ahead of our and street estimates, supported by a broad-based uptick across verticals and geographies. The strong revenue beat made up for a miss on margins, while US$ 2bn+ in large deal wins during the quarter marks a record high. Revenue and EBIT margin guidance for FY19 stays intact. We upgrade the stock from ADD to BUY on higher growth visibility backed by impressive deal wins, and roll over to a revised Sep'19 target of Rs 820 (from Rs 750), set at 19x fwd P/E vs. 18x earlier....

ZMCL reported topline/adjusted bottom-line growth of 35.5%/138.7% YoY led Change in Estimates | Target | Reco increase in effective rate (ER) and inventory utilization (regional channels),...

Strong execution on all front: NIIT Tech delivered strong result for 2QFY19 with Change in Estimates | Target | Reco beat on revenue, EBIDTA margin and PAT. Revenues at USD132.5mn were up...

Demand was muted due to increasing interest rates. However, management expects a turnaround during the festive season and expects a growth of around 8-10%....

ICICI Securities Ltd | Retail Equity Research Hero MotoCorp (HMCL) reported a steady Q2FY19 performance and was a beat on the topline and bottomline front led by higher spare parts income (up 24% YoY) and higher other income, respectively Total 2W sales volume for the quarter came in at 21.3 lakh units, up 5.5% YoY. Scooter sales volume was at 2.1 lakh units, down 13.8% YoY. Motorcycle sales volume was at 19.3 lakh units, up 8.4% YoY Consequent net sales were at | 9,091 crore, up 8.7% YoY. Blended...

ICICI Securities Ltd | Retail Equity Research Operating earnings increased 20% YoY to | 698 crore vs. estimate of | 664 crore. This was led by healthy traction in other income (core fee income grew 33% YoY) and lower operating expenses However, PAT was at | 266 crore (up by a muted 0.7% YoY) vs....

We, had come out with Idirect Instinct on Zee Media (ZMCL) in September, 2017. As a recent development, the company confirmed that due to expiry of the MoU signed between the company and Big FM for acquisition of radio channels, the deal stands called-off as of now and we exclude the radio valuations from our target price. Nevertheless, we highlight that ZMCL is in a sweet spot after de-merger of loss making print business and sale of online shopping business. Moreover, it remains a quasi-play on elections (both states and national) given its respectable no....

Passenger vehicle industry witnessed slowdown in 2QFY19 due to floods in Kerala, delayed festive season and some softening in demand. While in the near term, growth is expected to be slow, medium to long term growth...

Hero MotoCorp (HMCL) Q2FY19 results were in-line with our and consensus estimates on operating level. EBITDA margin for the quarter stood at 15.2% vs our and consensus estimates of 15.3% and 15.5% respectively. Operating performance in-line: Revenue grew +9% YoY/+3% QoQ to Rs90.9bn. Revenue performance were driven by volume growth of +6% YoY/ +1% QoQ to 2.1mn. Net realization grew +3% YoY/+2% QoQ to ~Rs42.6k. Spare part business grew 24% QoQ to Rs7.1bn. RM cost for the quarter increased +10% YoY/+2% QoQ to Rs62.9bn. Company has taken a price hike of Rs500 to offset the commodity cost. Company has taken another...

Infosys's (INFO) Q2FY19 result was in-line with our forecast as regards headline numbers. While revenue growth of 4.2% QoQ in CC and TCV of US$2bn (highest till date) beat our forecast, EBIT margin of 23.7%, unchanged QoQ, was a miss. Digital revenue is now 31% of INFO's revenue and grew by 13.5%/33.5% QoQ/YoY in CC. INFO has maintained FY19 guidance. While we were forecasting it to maintain the revenue growth guidance, we were expected it to increase EBIT margin guidance. We factor FX rate of R70 vs. Rs68 earlier for H2FY19 and FY20. We increase our FY19/20E EPS by 1.6%/4.6%. We now forecast FY19/20 revenue growth in CC at...

Strongest TCV Ever, But At A Cost; We Like The Growth Focus ACCUMULATE Shrugging itself off from a turbulent 2017, Infosys recorded best ever large deal total contract value (TCV) in its history of US$2bn (previous highest ~US$1.2bn) in 2QFY19, against our expectation of US$1.5bn. 63% of the TCV is net new Infosys has been perennially plagued not only by its low TCV (compared to its size), but also by the fact that most of it was renewal, which did not help drive growth. A large part of this surprise has to do with: (1) The red-hot demand environment the best since the Global Financial Crisis of 2008-09. (2) Fairly aggressive bidding. The US$700mn Verizon deal is a case in point. Infosys is not a recognised...

Federal Bank (FBL) reported 2QFY19 results with the key takeaways being: (1) Kerala floods would result in incremental slippage of ~Rs1.5bn in total and full year FY19 slippage guidance stands at Rs14.5bn, implying significantly lower slippage ratio over 2HFY19. (2) NIM expanded 3bps QoQ to 3.15% even in this environment of elevated generic interest rates and crimped liquidity. (3) Core fee income rose 33% showing incipient signs of fee income strategy working out. Opex control and digital strategy continued to display encouraging outcomes (See comprehensive conference call takeaways on page 2; See Management Meet note; see initiating coverage report here). Per se, on the results front, FBL posted a net interest income (NII) growth of 14% YoY to Rs10,225mn, PPOP growth of 20% YoY to Rs6,976mn and PAT...