Jayant Agro-Organics Ltd (JAOL), manufactures castor oil and castor-oil-based derivative products. Company in total has 100+ products and also has more than 300 products in R&D. Company has complete value chain of castor oil and has also diversified by forming JV's with other companies. In our recent interaction, management sounded optimistic about growth given India's strong hold i
* In line revenues at Rs20.9bn (-3% yoy) on the back of muted sale of urea as well traded fertilizers due to advancement of sales to Q1FY18. EBITDA came in at Rs2.2bn (flat yoy) and was also in line with our estimate
* EBITDA per MT stood flat yoy at Rs2420/MT but was lower compared to Q1FY18 at Rs2530/MT. EBITDA margins improved marginally by 30bps yoy to 10.6% and was tad lower than
Revenue impacted by GST rollout; margins surprise positively
* GSK Pharma’s (GLXO) 2QFY18 sales increased 6.8% YoY (+43% QoQ) to INR8.4b (5% miss). Other income came in lower at INR96m v/s INR343m in 2QFY17. EBITDA increased significantly by 54.3% YoY to INR1.9b (+25% v/s our est.), primarily led by a decline in other expense (as % of sales) by
Revenue in-line, but beat on margins
* Revenue in-line, but beat on EBITDA margins; Consolidated revenue grew by 3% yoy to Rs 15.9bn. EBITDA margins improved by 200bps to 8.6% driven by operational efficiencies; APAT stood at Rs 390mn, up 29% yoy
* While branded apparels grew by 13%, weak exports and suiting sales impacted branded
Radico Khaitan Ltd (RKL) Q2FY18 results were ahead of our estimates. The net revenue for the quarter grew by 0.6% yoy to Rs 4.48 bn and was ahead of our estimates, led by above expected volume in the quarter, which grew by 4.3% to 4.7 mn cases. The impact of recent highway liquor ban started to normalize in Q2FY18 after the Supreme Court clarification which allowed highways liquor stores within
Infosys’ results were steady with USD revenues in‐line with our estimates and EBIT margin and PAT ahead of our estimates. EBIT Margins at 24.2% has surprised positively (PLe: 23.3%) led by headcount reduction and mix shift of effort in favour of offshore. Constant currency revenue growth for the quarter stood at 2.2% QoQ in‐line with our estimates (PLe: 2.2%). We note that TCS deliver
Axis Bank Ltd. reported major increase in Q2FY18 net profit of 35%. The net profit stood at Rs 432 cr for the quarter ended September, 2017 vs. Rs 319 cr for the same quarter in the previous year on account of lower provisioning for bad loans. However, total income of the bank has grown marginally to Rs 11,235 cr for quarter under review vs. Rs. 11,053 cr for the quarter ended June, 2017.
Hindustan Zinc (HZ) reported an in-line 2Q with 46% yoy growth in EBITDA driven by volume as well as pricing growth. As highlighted in our earlier notes, zinc remains the strongest among base metals due to shortage of concentrate in the market, and HZ is minting benefits of the same. We raise our FY18/FY19E zinc pricing estimates by 11%/14% to US$ 2,933/3,012 per tonne and lead by 5%/4% to US$
Remarkable growth in EBITDA augurs well for future
* HUVR’s 2QFY18 net sales rose 5.9% YoY to INR83.1b.
Domestic consumer business grew 10% YoY, with 4% underlying volume growth. EBITDA increased 19.5% YoY to INR16.8b (est. of INR15.6b) and PAT (bei) by 14.2% YoY to INR12.4b (est. of INR11.9b). E
Company Background & Product Highlights
Graphite India Limited (GIL), incorporated in 1974, is promoted by Mr K K Bangur of Kolkata, is the largest graphite electrodes (GE) producer in India and third largest globally, with an installed capacity of 98,000 mtpa and co-generation power capacity of 33 MW (19.5 MW hydel capacity & 13.5 MW multi-fu
Muted quarter, promising future
Zee Entertainment Enterprises Ltd.'s Q2FY18 result was a mixed bag. The company reported 6.7% YoY de-growth in sales as subscription revenue declined for second consecutive quarter. EBITDA increased by 17.2% YoY on account of lower operating cost while sharp surge in other income and exceptional gain due to closure o
Organic growth remains the dampener
* India drags organic growth: 2QFY18 CC revenue growth stood at 0.9% QoQ, which implies flat revenue on an organic basis, in our view. Growth was driven by Engineering Services (4.4% QoQ CC) – which should have some contribution from the IBM license arrangements. On a YoY basis, g
EBITDA above estimate; recovery seen in wholesale channel
* 2QFY18 sales grew 9.7% YoY to INR6.3b. Domestic revenue rose 14% YoY, with 10% volume growth. The quarter continued to see CSD and wholesale channel destocking, but there has been significant recovery compared to 1QFY18. HMN expects the wholesale channel
* Infosys delivered in-line revenue with 2.2% qoq growth in constant currency (CC) terms, driven by 1.6% qoq volume growth and 0.7% qoq growth in pricing. New business was up 14% qoq whereas Renew business grew by 1.6% qoq in US$ terms.
* Guidance has been curtailed by 150bps (mid-point basis) for FY18, as the company continues to see challenges in Renew business and weak traction in
Ad recovery in sight; subscription growth stable
Ex-sports revenue up 7%, EBITDA flat: Ex-sports revenue rose 7% YoY, led by domestic ad and subscription revenue. Consol. revenue fell 7% YoY to INR15.8b (in-line). Consol. EBITDA stood at INR4.9b (flat YoY, 4% beat) with a 31% margin (+210bp YoY), despite lower revenues
NIIT Tech (NITEC) reported better-than-anticipated 2Q earnings (US$ revenue growth of 4.4% qoq/11% yoy) despite ramp-down in a large travel EMEA customer. Constant currency (CC) growth (4% qoq) was led by BFSI, manufacturing and media (aided by RuleTek) while EMEA was soft. Overall commentary remains encouraging as 3Q CC growth could be decent while margin trajectory is on the rise (note NITEC
We initiate coverage on Maharashtra Seamless MSL (MSL) with ‘BUY’ rating and a target price of Rs 560 based on 9x EV/EBITDA FY19E earnings. We believe that MSL valuations can get rerated on back of strong growth in company’s consolidated profits through FY17-19E driven by 1) recovery in demand for seamless pipes in the domestic/international market 2) imposition of antidumping
* GHCL’s reported muted performance on the revenue front in Q2FY18. The key reason was 9% yoy de-growth in Home Textiles business. This was partially offset by 10% yoy revenue growth in Inorganic Chemicals.
* On account of client-specific slowdown in Textiles and input cost rise in Organic Chemicals, the overall EBITDA margin contracted by 597bps yoy to 19.0% (25% in Q2FY17). Du
In-line results; Downgrading to Neutral on valuation concerns
* Strong volume growth led by favorable base: Volumes rose 10% YoY to 5.02mt, led by a favorable base. 3QCY17 standalone revenue of INR23.2b (+15% YoY) marginally exceeded our estimate of INR22.9b, led by realizations of INR4,621, which were up 5% YoY,
Volumes recover but delay in price increase dents margins
* Asian Paints (APNT) reported consol. sales growth of 15% YoY to INR42.7b in 2QFY18, with volume growth of ~9% (est. of +15%) in the domestic decorative paints business. EBITDA and adj. PAT grew 13.6% and 7.5%, respectively.
Hindustan Zinc’s (HZ) reported PAT came in at Rs25.45bn (incl. exceptional gain of Rs2.9bn), up 33.8%/35.7% YoY/QoQ, backed by the strong realisation across the products and higher lead and silver volumes. EBITDA during the quarter grew 45.6%/26.8% YoY/QoQ to Rs30.24 bn and margin during the quarter stood at 57%, which was higher than estimates. HZ’s near completion of shafts at Ram
Holding fort; no red alarms post CEO exit
In-line revenues and better margins; no red alarms post CEO exit
* 2QFY18 CC revenue growth of 2.2% QoQ was in line with our estimate. YoY CC growth decelerated to 4.6% from 6% in 1Q. EBIT margin of 24.2% (+10bp QoQ) implies a 90bp beat, led by yet another quarter of
Cyient is a market leader in Engineering Services in the Aerospace and Railways verticals, which constitute to 50% of its total revenue. Its strong relationships with clients, years of experience has helped Cyient sustain its leadership position in engineering services segment. Management guided for strong double digit growth in services and DLM segment backed by strong pipeline and order backl
* Lower-than-expected revenue for Sep’17 quarter was attributed to an upfront discount in Journal business, deferment of projects in Platform business and pruning of unhealthy accounts in MagPlus business.
* EBITDA margin at 34.5% surprised positively, driven by commendable operational efficiencies (despite pricing pressure). Net profit at Rs170mn was ahead of Emkay estimate of
Robust PPoP growth; operating leverage will continue to aid earnings
* HDFC Bank (HDFCB) reported strong 30% YoY growth in PPoP (~4% beat), led by steady revenue growth and controlled opex. However, higher provisions (HDFCB made contingent provisions toward one large account that underwent 5:25 restructuring in Feb-16) resulted in 20% YoY growth in PA