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EBITDA margin contracted by 614bps to 27.9% in 4QFY18 vs. 34.1% in 4QFY17 due to increase in global coal prices. Adjusting for JPVL's liability, its net debt reduced by Rs31.06bn in FY18. Cost of debt dipped by 114bps YoY in 4QFY18, which brought down borrowing cost to Rs3.2bn from...

Improving financials, but outgo to group rises 4x in 10 years We read ABB India's CY17 annual report and the key takeaways are as follows: a) healthy free cash flow generation continued as FCF yield stood at 1.5%, led by improvement in the NWC cycle, b) gross margins scaled up to 10-year highs, but a 4x jump in outgo to parent/group entities from 1.9% to 7.7% of sales has led to moderate growth in EBITDA/PAT (6%/12% in CY17 and -0.6%/-2.3% CAGR over the last 10 years), c) management indicates an improved outlook due to increased opportunities in transportation (railway modernisation and EV charging infra), energy efficiency, service income, renewables (although margins may...

Ambuja Cements' (ACEM) result was below our estimates with EBITDA at Rs4.1bn against estimated Rs4.7bn and OPM at 14.7% against estimated 16.1% led by lower-thanestimated volume growth. EBITDA/tn was at Rs655 against our estimate of Rs718. Sales volume was up 1.8% yoy at 6.2mt. Capacity utilization was at 85% against 81% in Q1CY17. Realization was up 7.3% yoy to Rs4,442/tn (vs. estimated Rs4,450/tn)....

of 4.3% qoq and OPM gains of 80bps qoq. Revenue and OPM were ahead of our estimates of 3% qoq growth and 50bps gains. Management is expecting better client budgets in its Top 20 accounts across business...

Hexaware Technologies (Hexaware) recorded a largely in-line performance in 1QCY18. USD revenue rose by a healthy 3.9% QoQ, while CC revenue rose by 3.3% QoQ. Growth was led by good performance in the Travel & Transportation (+13.6% QoQ) and MFG & Consumer (+13%) verticals, aided by closure of some large projects. USD revenue came in at US$162.2mn, with YoY growth at a decent 12.1%. However, it should be noted that this is the 4th successive quarter of YoY revenue deceleration, owing to client-specific issues faced last year. Volume growth came in at 3.5%, more or less in line with revenue growth. Regards other verticals, the key BFS vertical grew by a relatively subdued 2.1% QoQ, Insurance and Healthcare revenue declined...

HEXW's 1QCY18 CC revenue growth of 3.3% QoQ was in line with our expectation (+3%). EBITDA margin shrunk 40bp QoQ to 15.5%, below our estimate of 16%. The company reinvested gross profits in S&M early in the year in anticipation of continued traction. PAT grew 11% QoQ to INR1.34b (in-line). On a YoY basis, USD revenue grew by 12.1% (CC revenue 10.1%), EBITDA by 0.2% and PAT by 17.8%

Strong but valuations add to discomfort:The key highlight for the quarter is a sequential increase in margins consequent tophenomenal accretion in CASA and MCLR increase. All the other parameters remained encouraging: Loan and core fee income growth was strong, Asset quality was stable and Cost ratios continued to trend down.

Idea Cellular reported better-than-expected operating performance, which was driven by one-offs of Rs4.4bn. Adjusting for one-offs, EBITDA stood at Rs10bn, in line with estimate and EBITDA margin stood at 16.4% (-238bps qoq). KPI's were weaker than Bharti Airtel in terms of total and data subscriber additions, ARPU decline. Capex stood at Rs21bn with annual capex of Rs70bn, in line with stated guidance. Competitive intensity continued to remain elevated with 1) competitors aggressively adding subscribers, 2) adding content to portfolio and spending substantially higher capex for both broadband coverage and capacity. Idea and Vodafone are struggling with...

Tata Power's 4QFY18 consol. adj. PAT declined 8% QoQ/30% YoY to INR2.7b (below our estimate of INR4.5b) due to higher losses at Mundra, lower coal production, and losses at some of the overseas JV companies. PAT is adjusted for (a) impairment reversal of INR18.8b, (b) impairment at Georgia Hydro of INR5.2b and (c) INR2.3b of other one-off items. Net debt (incl. perpetual securities) was unchanged YoY at INR501b. Consol. PAT increased ~3% YoY to INR14.4b for FY18.

Visible signs of pick-up in demand for mortgage loan led by improving affordability, attractive incentive from PMAY scheme and introduction of RERA augurs well for sustained growth in loan book for HDFC over the next 3-5 years. Further, the performance of its various financial business subsidiaries/associates has improved substantially over the last few quarters. HDFC has raised fresh equity via QIP and preferential placement in FY18 and incremental capital will help the company to participate in upcoming fund raising of HDFC Bank to retain its stake at 21% and create buffer for leveraging other organic and inorganic growth opportunities in domestic real estate and housing sector. Rolling over our valuation to FY20E, we reiterate...