Sell

TCV was strong at US$1.23 bn (M9FY20: USD 3.2 bn, 151% YoY) led by US$ 900mn mega deal with Jackson National Life, this deal will be executed over a period of six years with revenue flow starting in the Q4FY20E....

Revival in revenue growth key thing to watch Dollar revenues grew 3.4% sequentially after two consecutive quarters of decline. The growth was aided by one-off projects in the CLX business and milestone accruals. The management said the soft Q4FY20E was on account of one-off gains in Q3 and delay in ramp up of projects. Taking into consideration the weak performance in H1FY20 and a softer Q4FY20E, we expect mere 2.2% YoY revenue growth in FY20E. The company has faced certain client specific issues in the past and pressure in legacy business. In...

JUBILANT Adj. Sales declined 3% YoY to Rs 23.2bn (PLe Rs24.6bn) on account of 11% YoY decline in LSI (Life Science Ingredients) segment. Adj. EBITDA grew 3% YoY to Rs5.1bn (PLe Rs5.1b), while EBITDA margin expanded by 116bps to 21.9% (PLe 20.8%). With installation of instruments, Ruby-fill received better traction from hospitals though the expectation seems to be short-lived with new prolong legality of Bracco over IP assets. US formulations and API sales to remain muted in FY21E, given the FDA's six...

31 January 2020 Despite the weakness at the top client, revenue growth and margins were largely in line with our estimates. The positive outlook on all key verticals and the healthy deal pipeline within IBM are likely to translate into decent revenue growth (8.6% CAGR, USD) over FY20-22. Also, SG&A; optimization will likely leave ~120bp headroom for margin expansion over FY20-22. Our EPS estimates over FY20-22 remain largely unchanged. Despite the sharp re-rating (40% over last year), reasonable multiples offer margin of safety, in our view. Revenue grew 7% YoY to USD129m, EBIT declined 38% YoY to INR806m and PAT was down 4% YoY to INR879m largely in line with our estimates. Growth was led by Services (+6.1% QoQ) and Digital (+6.8% QoQ), partially offset by a decline in Alliance (2% QoQ) and Accelerite (~14% QoQ). While IP-led revenue declined by ~2.

A mix of favourable yet transient dynamics saw eClerx (ECLX) staging a surprising operational beat in Q3FY20 (revenue up 3% QoQ, EBIT margin up 590bps).

Bajaj Finance (BAF) reported healthy 35% YoY growth in AUM in Q3FY20.

NIIT Tech's (NITEC) Q3FY20 performance was mixed with a miss on operating margins (20bps QoQ to 18.1%) but healthy deal wins.

KMB has received in-principle approval from RBI to cap its promoters' voting rights in the bank from ~30% currently to 20% of paid-up voting equity share capital (PUVESC) until Mar'20, and thereafter reduce this to 15%.

Pidilite Industries (PIDI) reported below-expected Q3FY20 consolidated revenue growth of 4% YoY CBP volumes grew just 2% while industrial volumes rose 13% YoY.

Large deal wins, healthy order book to drive revenues US$ revenues grew 1.7% QoQ to $151.3 million mainly driven by transport vertical partially driven by weakness in banking & financial services (client specific) and digital revenues. Weakness in banking services is likely to see a revival in growth as the company has won a large deals from its challenged client. Further, NIITT has hired three new leaders in top positions (CFO, digital business & global sales), which are expected to drive the momentum. In addition, strong fresh order intake (grew strong 24% QoQ) and robust...