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Royal Enfield volumes suffered a 10% yoy decline over Nov'18-Feb'19 despite the absence of negative one-off factors such as production losses due to labor strikes. Volume performance is expected to remain subdued due to the steep but inevitable price...

ICICI Securities Ltd | Retail Equity Research The demand situation in the domestic auto space has got aggravated post the recent muted festive season (Dussehra, Diwali 2018) with inventory levels in the system showing no signs of abatement. Consumer sentiment is muted primarily tracking higher penetration of connected mobility (ride sharing), higher insurance costs incidence, etc. As per recent FADA release, total passenger vehicles retail sales domestically are down 8.25% YoY in February 2019 with inventory in this segment at 50-60 days vs. the...

The MHCV industry volumes are expected to remain weak in the near term due to high base, surplus capacity with fleet operators, deferred purchases during elections and rising cost of ownership, according to our channel checks. North/West regions are witnessing steep declines, while the South is seeing positive growth. Volume growth is expected to recover in FY20, led by pre-buying before the transition to BS6 emission norms. After the transition, volumes are likely to decline due to high base...

We reinstate coverage with a SELL and have a target price of Rs 21,000 based on SOTP. Multiple factors are likely to impact the growth outlook at Eicher. After witnessing robust growth over CY12-FY18, when earnings grew at 46% CAGR, we believe earnings growth will moderate to 10% CAGR over FY19-21E as lifestyle segment growth normalizes in India, competition steps in and export initiatives take time to pay off.

Announces Rs 2.6bn buyback a transient trigger Event: eClerx (ECLX) has announced a buyback worth Rs 2.6bn through the tender offer route at a maximum price of Rs 1,600/sh (39.6% premium over...

USFDA issued four observations (including sartan productions) post inspection of Roorkee plant in August CY18. While the plant contributes US$50m in revenues, we expect a bigger impact will come from lack of...

VST Tillers & Tractors (VST) continued to report dismal numbers amid a fall in sales volume and muted EBITDA margin trajectory Power tiller volume in Q3FY19 was at 4,507 units, down 35.6% YoY while tractor volume was at 2,063 units, down 2.3% YoY Net sales in Q3FY19 came in at | 146.0 crore, down 11.9% YoY EBITDA for the quarter was at | 13.4 crore with consequent operating margins at 9.2%. Margins came in lower tracking higher other expenses amid controlled raw material & employee costs...

1 March 2019 Revenue increased 15% YoY to INR19.7b in 4QCY18. EBITDA grew 48% YoY to INR2.2b, while PAT increased 58% YoY to INR1.3b. For CY18, sales/EBIDTA/PAT from the continued business grew 6%/10%/13%. We note that ABB has shown power grid as a discontinued business as it has entered into an agreement with Hitachi at global level to sell this business. During the quarter, discontinued business revenue grew 6% YoY to INR11.6b, while EBIT/PAT declined 2.4%/22% YoY to INR1.1b/INR0.7b. Continued business gross margin expanded by 210bp YoY to 32.6% and operating margin by 250bp YoY to 11.0%, driven by (a) operating leverage on better execution, (b) improved revenue mix and (c) strong control over RM cost.

10th CGD bidding round ends key wins for GAIL, IGL, GUJGA PNGRB recently concluded the 10th round of CGD bidding that offered 50 geographical areas (GA), taking the cumulative count to 130 GAs awarded across India within a year. Given the strategic nature of ~20 GAs won by GAIL Gas, IGL and GUJGA that complement their infrastructure presence, these players could see significant volume ramp-up over 2-3 years. OMCs take the lead: OMCs and their JVs have won 21 of the 50 GAs bid out by PNGRB in the recently concluded 10th CGD round. This isn't surprising as...

In our recent interaction with VIL's top management, they reinforced the stance on fasterthan-expected delivery of cost synergies, keep treading in the right direction on network integration, data capacity expansion, raising customer realization with minimum ARPU plans, and focusing on incremental 4G subscriber share. Management's focus remains on generating incremental revenues by increasing 4G coverage and creating additional data capacity. Although incremental data subscribers...