For 3QFY2017, HCL Tech posted numbers almost in-line with expectations. On the revenue front, the company posted a 1.3% sequential growth in USD revenues to US$1,745mn (US$1,749mn expected) v/s US$1,722mn in 2QFY2017. Revenue in Constant Currency (CC) was up 3.0% qoq. On EBIT front, the company posted an EBIT of 20.4% (20.0% expected) v/s 20.1% in 2QFY2017, expansion of 30bps qoq. Consequently,
Demonetisation fails to dampen Q3 performance
CROMPTON posted an-above expected Q3FY17 (revenue/adj. PAT: +10%/ +35% YoY to Rs 8.9bn/Rs 574mn) as various measures helped combat the impact of demonetisation during the quarter. EBITDA margins at 11.2% (+95bps YoY) also beat estimates on higher gross margins. Management however maintained a cautious stanc
For 3QFY2017, Rallis India (Rallis) reported a yoy growth of 6.5% in sales to `326cr (v/s `306cr in 3QFY2016). On the operating front, the OPM came in at 11.4% (v/s 11.0% in 3QFY2016). Aided by sales growth, a good operating performance and surge in other income (`8cr v/s `3cr in 3QFY2016), the Adjusted Net profit grew by 30.2% yoy to `25cr (v/s `19cr in 3QFY2016). We maintain our Neutral view
* Revenue misses estimates, margin surprises positively:
Wipro’s IT Services revenue for Q3FY2017 stood at $1,902.8 million on Constant Currency (CC) basis, up 0.6% QoQ (below estimates). Appirio’s contribution to the overall revenue was around $20 million for five weeks. Excluding App
Strong operating performance aided by decent UV volumes:
Maruti Suzuki (MSIL) reported a good set of numbers for 3QFY2017 with yoy 12.3% revenue growth and yoy 47.5% growth in its PAT. EBITDA came at `2,489cr, a yoy growth of 16.0%. EBITDA margins were at 14.8% v/s. 14.3% in 3QFY2016 and 17.0% in 2QFY2017. On sequential basis, revenue witnessed a 5.5%
CRAMs segment to drive growth; maintain ACCUMULATE
* NFIL’s Q3FY17 results were marginally lower than our estimates mainly on account of decline in refrigerant segment’s revenues by 16% yoy. Inorganic Fluoride and CRAMs segment have continued to perform well with 24% and 26% yoy growth in revenues respectively.
* In Q3FY17, the co
Despite adverse operating environment, Kotak Mahindra Bank continues to deliver healthy performance on operating and assets quality front. Net profit grew by 38.6% yoy (8.2% qoq) to Rs8.8bn led by robust operating profit which grew by 26.8% yoy (6.1% qoq) in to Rs15.3bn. Sharp upsurge in operating profit is attributable to strong growth in operating income, which grew by 19.0% yoy (4.7% qoq) to
Zee Entertainment Enterprises Ltd reported healthy Q3FY17 numbers amidst demonetisation woes. The company reported 3.4% yoy increase in net sales at Rs 1,639crs. EBITDA shot up by 20% yoy to Rs 515.8crs. EBITDA margin improved by 438bps yoy to 31.5% led by cost optimisation. Net profit for the quarter stood at Rs 250.8crs, a growth of 8.6% over Q3FY16. ZEEL's Q3FY17 stellar performance in a
* Disappointing quarter owing to demonetisation and poor content:
Inox Leisure (ILL) reported weaker-than-expected Q3FY2017 results on all fronts, owing to the adverse impact of demonetisation (footfalls down 3.1% YoY; occupancy down 200BPS at 26%). Further, the below-par box office performance of
Surprises positively on volume growth; Maintain Accumulate
* KJC’s top line growth of 1% yoy at Rs 6.1bn is above our and consensus estimates mainly driven by volume growth. Growth came as a positive surprise as December month witnessed a recovery in sales after a decline of 5-6% in November.
* EBITDA margins declined by 90 bps yoy and
Clutching at straws; Downgrade to SELL
* Mahindra Finance (MMFS) surprised negatively with a net loss during Q3FY17 led by higher NPLs and credit costs, despite utilizing the 90-day RBI dispensation towards deferment of NPL recognition
* Reported GNPLs rose 6.5% qoq (+21% qoq without RBI dispensation) and annualized credit costs for the quart
* Results ahead of estimates; margins sustained despite rising cost pressures:
TVS Motor (TVSM) has reported a strong set of numbers for Q3FY2017, with the company being able to maintain margins on a YoY basis contrary to street expectations of a marginal decline. The topline for the quarter grew b
Another steadfast performance
* HCL Tech’s Dec’16 quarter performance was reminiscent of its steadiness seen in the recent quarters. A 1.3% QoQ US$ revenue growth coupled with ~30bps QoQ improvement in EBIT margins was broadly in line with our estimates though a tad higher than consensus expectations.
* The growth was anchored by
Indian Bank has delivered healthy growth in operating profit (Rs10.2bn; +34.3% yoy & +1.5% qoq) in 3QFY17 led by strong growth in trading income (Rs2.9bn; +338% yoy & +10.1% qoq) along with relatively lower opex (Rs8.3bn; +4.5% yoy & -3.7% qoq). However, loan book growth dipped to -0.1% yoy and remain muted at +2.7% qoq due to repayment of Rs22.4bn of loan in demonetized currency qo
* Good quarter:
Zee Entertainment Enterprises’ (ZEEL) revenue grew by 3.4% YoY to Rs1,639.10 crore, which is a tad below our estimate (numbers for Q3FY2016 re-stated as per IND AS accounting standard; thus growth figure may vary from estimates). Advertising revenue grew by 3.4% YoY to Rs955.4
LIC Housing Finance's (LICHF) 3QFY17 earnings came broadly in line with expectations with steady loan growth and stable spreads resulting in PAT growth of 19% YoY to Rs 499 cr. Improving spreads, stable asset quality and strong earnings visibility support our positive view on the stock.
Q3FY17 result update:
* Loan growth
Fertiliser segment drags revenues
* Net revenues declined 25% yoy to Rs11.5bn, below our estimate of Rs15.2bn; while EBIT stood at Rs514mn (+32% yoy) against our estimate of Rs1,474mn. Chemical segment revenues dipped by 3.5% yoy and 3.6% qoq to Rs4.3bn.
* Chemical EBIT dropped 50% qoq to Rs180mn as lower profitability in Other chemicals nega
Wipro’s 3QFY17 report was disappointing on revenue, even as cost control led EBIT margin to come in above our estimates. USD revenue came in at US$1,903mn, down 0.7% qoq (0.8% below our estimate). In CC terms, revenue rose 0.6%. 4QFY17 revenue growth guidance is 1-2% qoq, implying a none-too-enthusing exit rate for FY18E. Vertical-wise, all verticals except Energy and Utilities (ENU) saw
Sustenance of accelerated Tenancy addition key for re-rating
* Robust tenancy addition of 6.1k on a sequential basis was higher than our estimate of 5.1k, driven by both - incumbents and R-Jio. Operating performance was decent but weighed down by new MSAs and continued double-digit increase in rental expense.
* Rental revenue growth of 7% yoy
The quarter is marked by the commencement of revenue recognition at some new projects. With construction set to gain further momentum at these projects and as revenue recognition commences at further projects, we see construction revenues increasing. De-monetisation weighed on the BOT-toll segment, but we expect traffic to return with the gradual improvement in economic activity. The healthy bo
* In-line revenue, margins beat estimates:
HCL Technologies (HCL Tech) delivered an inline revenue performance for Q3FY2017, with a 3.0% QoQ growth on constant currency (CC) basis, led by a CC growth of 2.1%/7.1% QoQ in IMS Services/Engineering and R&D Services (ERD). On a reported basis, Q3FY
The House always wins
* We initiate coverage on DELTA, India’s largest Casino operator, with a BUY recommendation and Rs192 TP (54% upside). DELTA is the market leader with five operational casinos out of total fifteen in India. The Management has demonstrated a solid track record by doubling gaming revenue to Rs3.3bn over FY13-16.
Force Motors's Q3FY17 numbers were below expectations led by demonetization. Revenue fell 14.2%, whereas EBITDA and PAT declined 39% and 14.8% respectively on YoY basis. Nevertheless, we remain positive on the business of the company and expect recovery to happen soon as the liquidity crunch situation normalizes. We are bullish on luxury cars segment (auto component segment) and Force's
* Operating performance improves despite demonetisation:
HDFC Bank (HDFCBK) reported better-than-expected results for Q3FY2017, with its net profit growing by 15.1% YoY and relatively slower growth of 17.6% YoY in the Net Interest Income (NII). The NII growth slowed compared to earlier quarters on
Executing well in a tough environment – maintain BUY
HCLT posted a steady Q3FY17 with 3% QoQ CC revenue growth helped by inorganic activity. EBIT margins came in ahead of estimates at 20.3% (RCMLe: 19.6%). In another positive, management reiterated its FY17 CC revenue growth and margin guidance of 12-14% and 19.5-20.5% respectively. We believe HC