Endurance Technologies Ltd is one of India's leading automotive component manufacturers with operations in India and Europe. It mainly caters to twoand three-wheeler OEMs in India and supplies aluminium casting products to four-wheeler OEMs in Europe. The company operates 16 plants in India, 9...

SH Kelkar & Co Ltd (SHK) posted revenues of INR2,744mn with 16.1% YoY increase which was above our estimate of INR2,589mn. Revenue growth was mainly driven by new product and brand launch and value & volume growth in existing products. Overall domestic business grew by 9.8% (YoY) and Exports shown growth of 25.4%(YoY). Despite 97bps decline in gross margin due to change in product mix, EBITDA margin improved by 297bps, was 234bps higher than our estimate. Surge in margin due to adoption of Ind AS 116for lease this led to lower rent exp by INR39mn. Adj EBITDA margin were up by 154bps. Adj. PAT came below our estimate at INR185mn (est INR235mn) due to higher finance and depreciation cost (Ind As adjustment). As per management, over the last...

August MPC Minutes: Focus on growth to continue. BDE: Buffeted by headwinds

However, EBITDA margin improved by 84bps YoY to 12.2% led by lower material cost and drop in sub-contracting expenses. Order book now stands at Rs33,495cr (2.8x TTM revenue), however, projects worth Rs12,500cr is still constituting from AP region where company is facing issues with the state government....

GMM Pfaudler Ltd (GMM), for Q1FY20, reported a strong set of numbers. On standalone basis revenue grew by 39.4% YoY to INR 1,303mn (est INR 1,207mn). EBITDA showed growth of 56.8% YoY to INR239mn (est INR203mn) with 200bps YoY improvement in margin from 16.4% in Q1FY19 to 18.4% in Q1FY20, due to favorable product mix mainly led by Glasslined business ,which grew by 46% YoY with 74% contribution in revenue (vs 71% in Q1FY19). However, Heavy engineering business delivered poor performance with 40% decline in revenue and 2.8% EBIT margin compared to 22.1% in Q1FY19. As per the management, the decline in margin was due to cyclical nature of the business and expect improvement in margin going forward. Net profit surged by 61.2% to INR 147mn (est. INR125mn) due to operationally strong performance and lower tax expense (28.4% vs 34.4%). During the quarter, export share in revenue remained at 12%. Most of the export orders were mainly...

Q1FY20 revenue declined by 23% YoY due to significant slid in real estate revenue and 13% fall in the PMC segment. EBITDA margin fell near to zero level due to execution woes on redevelopment project and absence of high margin real estate revenue....

Natco witnessed YoY de-growth of 11% in sales in Q1FY20 due to poor sales in the US and decline in Hep-C revenue in India. EBITDA was down by 16% (YoY) while the margin down by 270bps on account of lower realisation in the US . Launched first time generics - apixaban and rivaroxaban in India (June) which are globally mega blockbuster molecules. Key drivers of revenue in FY20 will be India, Brazil and Canada which together is expected to see encouraging growth in FY20-21E....

Bharat Forge Ltd (BFL) is a leading player in the forgings industry. The company is serving several sectors including automobile, power, oil and gas, rail & marine, aerospace, construction, mining, etc. Q1FY20 revenue de-grew by 4%YoY due to the slowdown in Industrial export (down by 37%YoY) & weakness in domestic CV by 31%YoY. EBITDA margin declined by 240bps due to inflationary pressure on steel price and lower product mix. BFL's new value-added order received on aluminum forging is on track...

Graphite electrodes are used in the EAF route of steelmaking. Global steel demand has been negatively impacted by a weakening global economy. World Steel Association (WSA) forecasts global steel demand will reach 1735 million tonnes (MT) in CY19, a modest increase of 1.3% and 1752 MT in CY20, an increase of 1.0% over 2019. In the current muted demand scenario, excess production of graphite electrodes in China due to relatively slow ramp up of EAF capacities has led to cheaper graphite electrode exports to other countries (from China). Against the backdrop of removal of...

Aarti Industries Ltd (AIL), for Q1FY20, reported steady set of numbers. Revenue has grown by 8.8% (on adjusting HPC business revenue) mainly due to higher utilisation across all segments. EBITDA grew by 26.1%YoY to INR2.36bn with 439bps improvement in margins to 21.7% on account of increasing share of value added and high margin products. Net profit grew at a higher pace of 53.9% to...

NMDC reported Q1FY20 earnings in line with our estimates. The sharp rise in Change in Estimates | Target | Reco iron prices aftermath collapse of Vale's Brumadinho dam in Brazil helped NMDC to post strong earnings growth in last couple of quarters. However, we...

The competition in the Indian innerwear industry is intense and most innerwear players (excluding new entrant Aditya Birla Fashion) have registered a flattish revenue growth. Rupa in-spite of spending ~ 7% of revenues on branding and investment and using celebrity endorsement has not been able to achieve acceleration in revenue growth for the past two years. In a bid to enhance the share in growing premium menswear segment, the company undertook various licencing of international brands. However due to intense competitive scenario (Van Heusen from ABFRL and...

Essel Propack (EPL) reported flattish topline (down ~9% QoQ) led by poor performance in AMESA and EAP regions (mainly India and China respectively). While India demand slowdown due to macro headwinds, the Chinese revenue slowdown was largely due to ongoing US-China trade issues. Despite significant rise in the contribution of non oral care to topline (up from 40.7% in Q1FY19 to 46.6% in Q1FY20) the EBITDA margin was under pressure mainly due to sharp decline in the profitability of the AMESA regions. We believe, the lumpiness of domestic business coupled with...

Bosch has an established leadership in diesel technology (starter motors, common rail systems), with market share in gasoline fuel injection systems lower courtesy its late entry into that space. With BS-VI rollout, lower capacity diesel engines are expected to migrate to gasoline given the prohibitive price increase in the former would further exacerbate existing cost difference between the two technologies. While diesel is seen remaining the dominant fuel choice among UVs, larger engine capacity passenger cars, tractors and the CV space, Bosch's addressable market is...

TMX reported a robust Q1FY20 revenue growth of 35% YoY aided by strong execution in energy segment (45% YoY). While EBITDA margin improved by 42bps YoY to 7.1% due to drop in employee cost and other expenses . Improved operating margin and lower tax rate of 30% (vs 36% Q1FY19) increased earnings by 28% YoY. But order book de-grew by 18% YoY (OB to sales at 0.8x TTM...

US business grew by 125%QoQ driven by healthy performance in the base portfolio with no major price erosions. Remediation work has started in response to the warning letter (WL) by USFDA on Puducherry plant (~7% of the total revenue of SS) with the management transferring production to other locations. Exit from Arrow investments at Australia got successfully completed with the proceeds reducing the debt significantly ~Rs1000cr. Regulated markets witnessed a modest growth (13%YoY) while...

Given strong demand outlook in domestic & export market in the long term, the capacity augmentation is on track. We believe that capacity addition, focus on high margin products and robust off-take from Specialty chemicals and Pharma segment, will continue to drive profitability. However, given weak macro economic situation and slowdown in...

Q1FY20 consolidated revenue declined by 7.7% YoY on weaker sales volumes (-20.8% YoY). Standalone TML (S) revenue dropped by 19.9% YoY and Jaguar Land Rover (JLR) revenue was down by 5.4% YoY. Adj. EBIT loss came in at Rs. 1,562cr vs. Rs. 548cr loss in Q1FY19, primarily on negative operating leverage from lower wholesale business. Adj. EBIT margin dropped 170bps YoY to -2.5%. Adj. loss after taxes stood at Rs. 3,590cr vs Rs. 1,902cr in Q1FY19 (Adj. loss per share at Rs. 10.6 vs. Rs. 5.6 in Q1FY19)....

City Union Bank Ltd (CUB), the oldest private sector bank in India, is a mid-sized commercial bank headquartered at Tamil Nadu, having a network of 650 branches and 1,711 ATMs spread across the country and have a loan book size of ~Rs32,000cr. Net Interest Income (NII) grew by 11% and PAT grew by 15% YoY in Q4FY19, with 14% YoY growth in loans and advances. Marginal reduction in Net Interest Margin (NIM) on a YoY as well as sequential basis, and currently stands at 4.11%....

Apollo Tyres Limited manufactures tires and tubes for cars, trucks, farm equipment, and light commercial vehicles. The company markets its products with two global brands: Apollo and Vredestein in APMEA (Asia...