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JSW Steel (JSTL) posted Q4FY20 EBITDA below our estimates by 11% due to lower than expected earnings in domestic subsidiaries and higher intercompany eliminations. Impacted by tepid domestic demand and lower exports, sales volume fell 8% QoQ/14% YoY to 3.7mnt (PLe:3.75mnt). Realisations rose 8% or Rs2,880/t QoQ (down 10% or Rs4,310/t YoY) to Rs40,600 (PLe:Rs40,415). Cost/t remained flat QoQ to Rs32,585 (PLe:Rs32,600)/t. Hence, EBITDA/t came in line with our estimates at Rs8,700 (PLe:Rs8,500), up 45% QoQ/14% YoY. Management guided to maintain volumes in FY21e at 15mnt on expectation...

25 May 2020 10.9% SSSG and a strong 18 store additions drove 24% YoY revenue growth (in- line) in FY20. However, the company reported a big 22% miss on EBITDA with 4% YoY growth. We have cut our EBITDA estimate by 16.8% for FY21E due to 50% of stores being closed over AprMay20, lower gross margins from increased non- discretionary revenue, and higher opex. However, we maintained our FY22E EBITDA estimates given the sharp recovery expectation as it pertains to non- discretionary. DMARTs consolidated revenue grew 24% YoY to INR63b (down 8% QoQ, 4% above est.) on account of sales of only essential products at DMART stores. In Mar20, revenues grew only 11% YoY (v/s Mar19) due to the lockdown effect witnessed in the nine days of Mar20. Hence, implied revenue growth over JanFeb20 is ~30%. For FY20, revenue/EBITDA grew 24%/8.1% to INR249b/INR20.2b with flat EBITDA margin at 8.1%.

Though significant negative impact is expected on sales; costs like rent, other operation related costs would not decline in the same proportion. Hence Bata would take abnormally longer time to restore...

Stoppage of construction to impact store openings in FY21. We are cutting FY21 and FY22 EPS estimates of D'Mart by 16.8% and 8.1% due to 1) Lockdown impact on footfalls/sales 2) higher cost of operations 3) delay in store openings and safety cost. Although worst seems over given MOM improvement in May sales, expect near term margins to suffer due to...

below our estimate of INR 2,032mn. The revenue growth was mainly driven by the CMS (62% YoY growth) segment, led by 25 molecules with speciality API segment, which grew by 18.9% in Q4FY20. EBITDA margin expanded by 498bps to 15.6% level, which was 274bps higher than our estimate due...

While the domestic auto industry was already reeling under demand challenges across segments (particularly in CV) during the past 18 months, the Covid-19 Black Swan event has further pressurised (1) demand in the medium term by reducing incomes and consequent propensity to spend and (2) supply in the short term, with manufacturing activities across the country grinding to a halt overnight. As a vital part of the automotive supply chain, ancillaries such as Bosch would continue to feel the second order effects of slowdown in vehicle demand over the coming quarters. The...

respectively based on 1) Covid impact on production and sales in 1Q 2) 3) delay in opening of high focus modern trade in top cities. Mgt strategy is now centered on 1) gaining share in urban India with value added premium products (Bamboo Toothbrush, Charcoal Toothpaste and naturals segment...

Gabriel reported a relatively better Q4, with revenue down 17% at Rs425 cr (v/s expectation of 20% decline), Gross margins improved by 230 bps YoY on account of operational efficiencies

Background: Gabriel India Ltd.(GIL) is the flagship company of Anand Group, offering the widest range of ride control products including shock absorbers, struts, and front forks. The Company commenced operations in 1961, with a single plant in Mulund, Mumbai and has grown manifold, currently it has nine manufacturing facilities spread across the country with strong 500 dealer network and 10,000 retail outlets. The company has strong R&D; capabilities with over 43 patents in products and...

GlaxoSmithKline Pharmaceuticals Ltd: Outlook & Valuation: We downgrade our revenue estimates for FY21E by 4.3% to Rs 34.5 bn and introduce our revenues for FY22E.