Sell

Consolidated generation increased 6.5% YoY to 4.9BU, driven by ~25% YoY generation increase at Ratnagiri (shutdown impact in the base quarter). Interest cost declined ~120bp YoY/~30bp QoQ to ~9%, led by refinancing of loans. Gross debt reduced by ~INR25b in 9MFY18 on operating cash flows and a reduction in debtor days (26 days w.r.t 4QFY17). Against advance of ~INR10b to JPVL, it has adjusted INR2.4b from payments to be made to JPVL. JSWE is in discussion with banks for the recovery of the balance. Operating cost (ex-fuel) declined ~2% YoY, despite higher generation, on various efficiency measures

Bajaj Auto (BJAUT) reported 3QFY17 results earnings were lower than our and consensus expectations. Net Revenue were above our and consensus estimates due to better product mix, higher realization in export market and recent prices hikes. EBITDA margin for the quarter stood at 19.3% vs our and consensus estimates of 19.9% and 20% due to higher other expenses (increase in CSR activities and one time software expenses of Rs280 mn and Rs200 mn respectively) whereas Adj. Pat for the quarter stood at Rs9.5 bn lower than our and consensus estimates of Rs10.3bn anRs10.7 bn due to lower other income and higher tax rate....

Revenues for the quarter at Rs 7039 mn were below our estimates of Rs7760mn. The margins were in-line with our estimate and stood at 20% inQ3FY18 as against 7.4% in Q3FY17. Higher margins were mainly onaccount of better gross margins.

Despite gross margin improvement, Q3FY18 EBITDA margin at 7.8% (+50 bps YoY/ -90 bps QoQ) missed our/consensus estimate of 8.2%/8.0% due to higher other expenses. Management reiterated its target of double digit margin in Q4FY18.

Subdued cashflow and return ratios outlook intact; SELL JK Lakshmi Cement (JKLC) delivered 25%/14%/13% standalone revenue/EBITDA/PAT growth in Q3FY18. Ramp-up in east buoyed volume growth to 15% YoY. However, high energy and freight cost inflation amid lack of operating leverage gains offset realisation benefits, leading to subdued EBITDA of Rs447/MT. We maintain our anticonsensus SELL on the stock with a revised TP of Rs340, as we see (1) volume growth tapering off to 2% CAGR during FY19/20, (2) subdued operating cashflow to mute...

ICICI Securities Ltd | Retail Equity Research eClerx reported Q3FY18 earnings, where US$ revenues were largely in line with our expectations while EBITDA margin and net profit were way below our expectations US$ revenues grew 1.0% QoQ to $48.9 million and were largely in...

In Q3FY18, total revenues of Alembic Pharma increased by 8% YoY to Rs8.4 bn (above our estimates Rs 7.8 bn). The Companys operating marginsincreased from 18.7% to 22.3% YoY (our estimates 22%).

In view of the termination of Punjab e-governance contract, uncertainty regarding high receivables and no near-term growth triggers we downgrade our rating to SELL with a TP of Rs 160, based on 20x Dec-19 EPS (earlier 25x) and adjusting for one-time write-off impact of Rs 10/share. Punjab government has terminated the five year e-governance contact awarded to BLS International in Mar-16. This came in as a major negative surprise as we were expecting closure of only some financially unviable centers out of total 2,147 seva kendras operated by BLS.

TVS Motor's 3QFY18 EBITDA margin improved by +50bps yoy (-80bps qoq) to 7.8% (IDBI Est: 7.0%; Consensus Est: 7.9%), led by better scale and favorable product mix. Management expects strong volume growth and market share gains in domestic motorcycles/scooters, driven by network expansion and new launches. Company expects to launch new motorcycle and scooter in 4QFY18 and maintain its double digit operating margin guidance for 4QFY18. We expect revenue to grow at 18% CAGR over FY17-20E, led by 12% CAGR in volume. Margin is likely to expand by 100bps over FY17-20E, driven by better scale, increased penetration in high-margin...

eClerx Services (eClerx) has reported another underwhelming performance in 3QFY18, with its USD revenue rising by just 1% QoQ (1.1% QoQ in CC terms) to US$48.9mn, missing our estimate by 1.9%. However, eClerx's INR revenue grew by 2.7% QoQ to Rs3.34bn, beating our estimate by 5.3%, owing to higher currency realisation. The company reported a major underperformance on operating margin front, with its EBIT margin crashing by a steep 264bps QoQ to the lowest-ever 22.8%, missing our estimate by a substantial 268bps owing to low revenue growth, and higher employee and SG&A; cost. Notably, new business in areas like Managed Services, Robotic Process Automation (RPA) and Analytics having lower initial...