For 3QFY2019, Music Broadcast (MBL) posted in-line with expectation results both on top-line and bottom-line fronts. Revenues grew by ~14% yoy to `87cr on the back of price hike. The company's operating margins improved by robust 225bps yoy. On the bottom-line front, MBL reported lower growth of ~38% yoy to `16cr on the back of

Music Broadcast Ltd (MBL) reported healthy performance with revenues increasing 14.2% YoY to Rs870mn (PLe of Rs853 mn) due to rising inventory utilization in batch 1 stations (45% in 1QFY19, 50% in 2QFY19 and 53% in 3QFY19) and price hike of 11% taken in top 12 markets during the quarter. EBITDA margin expanded 230 bps YoY to 32.9% due to incremental...

Reiterate BUY with a revised TP of Rs 402 (25x Dec-20E FCFE/sh). Music Broadcast Ltds (MBL) 3QFY19 revenue /EBITDA/PAT grew by 14/22.6/38% YoY on a low base, in-line with our estimates. The growth recovery was driven by 11% rate hike in the legacy markets, festive advertising and contribution from the Govt, E-Com & Auto sectors. Revenue growth guidance of 12-14% remains intact on the back of recovering economy and political spends.

EBITDA came in at | 28.6 crore (margin of 32.9%, slightly higher than estimates of 32%), up 22.6% YoY, better than our estimate of | 27.6 crore, owing to healthy revenue growth and lower-than-expected employee expenses. EBITDA margins for new stations were at 8%, while that of 28 stations were at 38% The company reported a profit of | 16.4 crore, above our estimate of | 15.4 crore, owing to a healthy performance at the EBITDA level Election related tailwinds to boost FY20E ad growth...

25 January 2019 Dewan Housings (DEWH) PAT declined 37% YoY to INR3.2b (18% below estimate) in 3QFY19. Over the past quarter, the company focused on liquidity management, while growth took a backseat. It raised INR163b of borrowings, largely from portfolio sell-downs. Due to curtailed disbursements, AUM declined 3% QoQ to INR1.27t. Management reiterated its priority to reduce the builder loan portfolio share to 5% of AUM by end-FY19. Management targets to infuse INR20b of equity capital by March 2019 by means including stake sale in non-core assets. Gross Stage 3 loans increased 16bp QoQ to 1.12%. DEWH is a focused play on low-ticket housing. While the company had been gaining traction in core affordable housing loans, it opportunistically diversified into non-retail loans over the past few years. However, this is expected to normalize and DEWH is likely to focus on its core strength of being a low-ticket affordable housing financier.

VIL requires INR600b over the next eight quarters to fund (a) estimated capex of INR326b, (b) spectrum payment liabilities of INR213b and (c) external debt servicing and interest cost. The rights issue of INR250b, along with Ideas INR50b stake sale in Indus, current cash position, and cumulative EBITDA of INR220b until FY21, will be the sources of funds. Despite the huge fund raise and the estimated EBITDA increase to INR126b by FY21, net debt is likely to remain at INR1,060b, with the net debt-to-EBITDA ratio at a steep 8.4x. Unlike Bhartis fund raise, which will help it to deleverage the balance sheet significantly, VILs estimated annual capex requirement and interest burden of over INR200b in FY21 may not be fulfilled even with an optimistic EBITDA of INR126b. Thus, without an ARPU increase, it may need another round of fund-raise to survive. Given the cash flow and capex requirements for telcos and the current price plans offered, there exists a huge opportunity to increase ARPU.

This has led to an increase in 4G population coverage to 65% v/s 40% at the time of merger. While taking a tariff hike in the current market situation is unlikely, management indicated that its initiatives on network synergies, minimum recharge voucher program and accelerating shift from 2G to 4G should drive EBITDA growth. The company expects to achieve cumulative EBITDA of INR200b in the next eight quarters. Based on our workings, we estimate the 3QFY19 EBITDA run-rate of INR11.4b to reach INR37.1b in 4QFY21, factoring in (a) INR12b synergy gains (INR78b opex synergy by FY21), (b) zero IUC gain v/s current estimate of INR4b and (c) INR17.7b from revenue-linked gains, led by the minimum recharge voucher program, increasing shift to 4G and ARPU increase. Management plans to source this from the INR250b rights issue, the INR50b Ideas stake sale in Indus, current cash & investments of INR136b, and cumulative EBITDA of INR200b over the next eight quarters.

7 February 2019 Reversal in EBITDA trend led Vodafone Idea to witness growth for the first time (excl. one-offs) since the launch of RJio. LTL growth came in at 16% QoQ to INR11.4b (12% miss), led by synergy gains, despite LTL revenue decline of 2.2% QoQ to INR117.6b (in-line). (for exceptional item and DTA impact) net loss stood at INR62b (v/s INR44.5b in 2Q). A silver lining was the monthly exit revenue (Dec18 and Jan19) experiencing growth. (1) Combined FY19-20E capex guidance remains unchanged at INR270b (ex-redeployment). (2) Expect rights issue to get completed by early 1QFY20. (3) Expect network integration across all circles to get completed by Jun20. With estimated run-rate of a healthy INR2.5-3b quarterly synergy accretion in FY20, we expect EBITDA at INR81b.

Regional channels reported an EBITDA margin of ~27% in 9MFY19 (above market benchmark and higher than ~25% margin reported by national channels over the same period). ZMCL reported topline growth of 22.7% YoY to Rs1,942.2mn led by strong performance across national & regional channels aided by election tailwind and delayed festivities. In the national bouquet, Zee News witnessed a yield increase of ~3% QoQ while Zee Business' market share during stock market hours increased to 35.5% in 3QFY19. Within the regional bouquet, Zee MPCG...

We, recently, met Mr Raj Ahuja, CFO and Senior Group President, Mr Niranjan Banodkar, Senior President, Financial and Investor Strategy and Mr Sunny Desa, Senior VP, Financial and Investor Strategy, Yes Bank (YBL) and gleaned incremental insight into future prospects for the bank. The most key takeaway from our conversation with management was that the likelihood of Divergence with RBI in asset quality assessment in the future is low. We detail our takeaways below. We have also revised our estimates for FY20/FY21 and retained Buy rating on YBL, revising our target price to Rs329 (from...

3QFY19 revenue declined 1.7% QoQ in constant currency (3% miss). While Engineering SBU (43% of revenue) grew 6.4% QoQ, IT Business dragged with a decline of 7.5% QoQ 16 January 2019 due to completion of a few large projects. EBITDA margin shrank 60bp QoQ (excluding translation loss) 110bp miss due to weaker revenue. PAT declined 25% QoQ (+6% YoY) to INR656m, 14% below our estimate due to the operational miss. 3QFY19/9MFY19 data of the IT and Engineering businesses. The key surprise for us was the 9MFY19 EBITDA margin in Engineering Services, which stood at 11.8% v/s 15.4% for IT Services.

Yes Bank (YBL) reported 3QFY19 results with the key takeaways being: (1) Ravneet Gill, current MD, India operation for Deutsche Bank was appointed MD & CEO of Yes Bank with a joining date of 1 st March or earlier (2) Of the aggregate funded exposure of Rs 25.3bn to infra conglomerate, Rs 19.13bn was recognized as NPA, aside of which, asset quality improved (3) YBL's capital conservation strategy enabled it to marginally augment capital ratios on QoQ basis (4) YBL was able to maintain NIM QoQ at 3.3% despite rapid increase in IBU book, which is margin dilutive. (See comprehensive conference call takeaways on page 2 for significant incremental colour.). Per se, on the key P&L; items, YBL posted NII growth of 41% YoY at Rs26,664mn, PPOP decline of 0.6% YoY at Rs19,904mn and PAT decline of 7% YoY...

ICICI Securities Ltd | Retail Equity Research The bank has received RBI approval to select Ravneet Singh Gill as new MD & CEO. He is set to join on or before March 1, 2019 Exposure to IL&FS; was at ~| 2530 crore, out of which | 1913 crore was classified as NPA against which provision of | 478 crore (25%) has been made. Remaining exposure of | 616 crore continues to remain standard, on which the bank has prudently provided | 92.5 crore (15%). The bank has no exposure to the parent company...

ENIL saw a stellar 3QFY19, with revenues growing 36% YoY to INR2b, backed by healthy mix of growth in old and new stations, shift in the festive season to 3Q, and contribution from mega-international artist concerts (healthy F&B; revenue). Yet, EBITDA grew 14% YoY (in-line) to 7 February 2019 INR404m, with a 400bp margin contraction to 20.1% due to losses incurred from mega concerts. Ex-international concerts, revenue grew 20% YoY with a strong 37% YoY growth in EBITDA. PAT at INR160m grew 22% YoY (in-line). For 9MFY19, revenue /EBITDA/PAT grew 18%/18%/55% YoY. (3) The company is following up with MIB for approval on the acquisition of TV Today radio stations. We largely maintain our estimates; expect strong 41% EBITDA CAGR (on a low base) over FY19-21, primarily on the back of healthy 17% revenue CAGR. Potential gains from the acquisition of three TV Today radio stations (pending approvals) could provide further upside.

Yes Bank Q3FY19 results were exceedingly good in terms of asset quality barring IL&FS; account. There is change in the guard with Mr.Ravneet Gill appointed as new MD&CEO; replacing Mr.Rana Kapoor. NII growth was strong at 41% yoy led by strong loan growth and stable margins. However, operating profit growth was muted due to fall in other income. MTM losses on corporate bonds resulted in overall fall in other income by 37% yoy. During the quarter, the bank declared IL&FS; account as an NPA it has total exposure of 25.3 bn ( 19.1 bn is added in NPAs while 6.2 bn remains standard). Barring this one-off, gross slippages were at 3.8 bn vs. 16.3 bn last quarter. Major headwind on the stock wrt Mr.Rana Kapoor exit seems to be waning with Mr.Ravneet Gill...

For Q3FY19, LT Foods Ltd (LTFLs) revenue grew 21% YoY largely driven by pick up in branded consumer business and better realization both in India (+2%) and international (+8%) market. In Q3FY19, branded business (both domestic and international combined) saw a growth of 2% YoY driven by better realization in international branded segment (up 8% YoY). Organic segment de-grew by 12% YoY in value terms largely on account of consolidation. For Q3FY19, growth was triggered by India unbranded segment and other value added products which together grew by 63% YoY. Other Income Adj. PAT Adj. PAT Margin % Market share in India Basmati rice industry for the company stands at 29% while in USA it is 45% (Royal Brand). Branded business as % of overall sales up 100bps YoY for 9MFY19 to 69% from 68%. In Q3FY19, other income was down significantly on account of lower forex gains of INR50mn vs INR220mn gains for the corresponding quarter last year.

However, the quarter witnessed a steep rise in provisions, where it increased 8x y-o-y and ~6x on a q-o-q basis to Rs. 3661.7 crore. Yes Bank has identified a stressed pool of ~ Rs 10,000 crores, against which it has taken additional contingent provisions of Rs 2,100 crore. Affected by accelerated additional provisioning and lower other income, the bank reported a loss of Rs...

Maintain BUY with a reduced SOTP based TP of Rs 246/sh (EPC standalone at 7.5x Dec-20E EPS and ~60% discount to peers). IRBs 3QFY19 Revenue/EBIDTA/PAT were 7/5/7% ahead of our estimates at Rs 17.9/7.6/2.2bn. EPC margin witnessed a 612bps YoY drop led by ~Rs 1bn of revenue from utility shifting (with negligible margins) and ~150-200bps impact of increase in raw material costs.

Rs28mn/Rs46mn respectively as the process of improving credit terms with channel partners led to unexpected sales return (Rs350mn) coupled with postponement of certain schemes/discounts to 4QFY19 (partial revenue spillover expected). Standalone/consolidated EBITDA losses stood at Rs277mn/Rs852mn. Locking in paper prices at 5-6% higher vis--vis an increase of 15-16% witnessed in the market partially curbed EBITDA losses....

Varroc Engineering Ltd. is a global tier-1 auto components supplier engaged in the design, manufacture and supply of auto exterior lighting systems, plastic and polymer components, electricals-electronics components, and precision metallic components used in passenger cars, commercial vehicles, 2-wheelers (2W), 3-wheelers (3W), and off-highway vehicles (OHV) OEMs. Varroc Lighting Systems division is the sixth-largest supplier globally and one of the top three independent exterior lighting suppliers. Varroc's business consists 1) Global Lighting Business involved in design, manufacture and supply of exterior lighting for passenger cars,with the products sold to OEMs globally; 2) India Business involved in design, manufacture and supply of a variety of...