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V-Mart Retail (VMART) reported below-expected revenue growth of 20% YoY to Rs 3.1bn in Q2FY20, with SSSg of 1% (volumes 8%).

Based on our analysis, total sensitive sector exposure is ~20% of portfolio while BB & below portfolio is at 14% and this makes us believe that stress is largely recognized. Higher the asset quality deterioration, higher would be the capital requirements of the bank going forward. In our view, even if the bank is able to raise capital, future profitability would be dependent on...

Background: TVS Motors Company Limited (TVSM) is the third-largest two-wheeler manufacturer in India with revenues of INR 182bn in FY19. The company manufactures motorcycles, scooters, mopeds and three-wheelers and has a production capacity of 4mn two-wheelers and 0.12mn three-wheelers.TVS Motors is credited with many innovations in the Indian automobile industry, notable among them being the introduction of India's first two-seater moped, the TVS 50cc. The company has 4 manufacturing plants in total with three of them in India (Hosur, Mysore and Nalagarh in India and one in Indonesia, Karawang). In FY19, 40% of volumes were from sale of...

Headwinds in domestic OEMs to lead to sluggish FY20E Domestic OEM segment witnessed double digit de-growth in the midst of a slowdown in the auto sector. Domestic OEM (two-wheelers and CV comprise highest share in the OEM segment) contributes to around ~69% of NRB's topline. Going ahead, we expect some short-term pain in this segment, which can be followed by some recovery starting H1FY21. On the raw material front, the company is expected to benefit from the current decline in steel prices starting from Q4FY20E onwards, which should...

Cummins India Q2 sales, EBITDA and PAT declined by 12 percent, 39 percent and 29 percent The Q2 weakness was witnessed across business segments.

Exports cushion revenue decline as other segments decline Exports for the quarter grew 84% YoY while the share of the same was at 14% of total revenues. In other words, rise in exports was a counter move to utilise capacity and arrest revenue decline in the domestic market and cover fixed overheads. Overall revenues declined 3% YoY. In terms of segments, slowdown in auto sector impacted the segment wherein revenues fell 20% for Q2FY20 while industrial segment revenues declined 1%. Going ahead, we expect growth to hinge on the magnitude and timing...

Supreme Industries Ltd (SIL) is India's leading player in plastic products; the wide range of offering includes Plastic Piping system, Packaging, Industrial and Consumer products ....

Mindtree Limited's revenue grew by 9.1% YoY (11.1% YoY in constant currency) driven primarily by HiTech and Media segment (39.8% of revenue) which grew 10.4% YoY supported by 11.1% YoY growth in Travel and Hospitality segment (17.0% of revenue) while BFSI (21.6% of revenue) and Retail, CPG and Manufacturing segments (21.7% of revenue) were up 5.4% and 8.7% respectively. Geographically, US (73.7% of revenue) witnessed significant improvement of 9.3% YoY while Europe (17.6% of revenue) saw limited YoY growth of 2.8%. The revenue growth was driven primarily by Digital business which was up 18.8% YoY and maintained its contribution to total...

Havells India Ltd (HAVL) is a leading player in electrical consumer goods in India. Its key verticals include switchgears, cables & wires, lighting fixtures and consumer appliances. Revenue grew by modest 2% YoY, which was below expectation. EBITDA margins declined by 150bps on account of weak product mix, margin erosion in Lloyd business and higher cost. But supported by tax cut PAT growth was flat YoY. Demand situation continues to be weak on account of tight liquidity scenario and slowdown in real estate business....

custom duty) of INR154mn. The company posted revenues of INR 3,211mn with 18.7% YoY decline which was below our estimate of INR,4,845mn. Multiple factors affected revenue growth during the quarter such as 1) Crop protection business was affected by heavy flooding at Mahad facility in the month of august which led to temporary production shut down.2) Pharmaceutical business faced issue at taloja facility where MIDC had cut 50% of the water supply to all industries in that region during Q2 and destocking of some of the products by innovator clients led to postponement in product...