Background & Business
India Cements (ICL), established in 1946, is one of the leading cement manufacturing companies in India and also a market leader in South India. Currently, it has a total installed capacity of 15.6mnT spread over Southern, Northern and Western states.
* Q1FY2018 performance marred by GST led de-stocking:
Like other FMCG companies, Jyothy Laboratories Ltd (JLL) performance for Q1FY2018 was marred by GST led de-stocking undertaken by various trade channels in the month of June 2017. The consolidated revenues declined by 14.8% to Rs385.8 crore wit
Margins miss; outlook intact
Century Plyboards (I) Ltd.'s (CPIL) Q1FY18 result was a mixed bag. The company reported 8.7% YoY increase in Net sales while EBITDA and PAT were down by 19.7% and 18.5% respectively over Q1FY17. Despite weak Q1FY18 results, the management has guided for healthy volume growth led by capacity expansion and GST implementat
No impact of GST in 1Q; Zetia boosts US sales
* Net sales grew 22% YoY (but declined 4% QoQ) to INR23.2b (v/s our estimate of INR23.5b). EBITDA margin expanded >600bp YoY (and QoQ) to 23.3% on strong ramp-up in US sales (up 55% YoY and 9% QoQ), strong growth in India despite GST impact (up ~15% YoY), lower R&D cost at INR2.55b (down ~INR1b QoQ),
So far so good but revenue growth a challenge, Maintain SELL
* Overall reported Q1FY18 numbers had no major negatives, with some surprises along the way including an India business that didn’t seem impacted by GST led destocking, much higher other income and a sequential jump in gross margins by 500bps.
* Company’s India business
Sadbhav Infra (SIPL) reported in line toll revenues but lower EBITDA due to Ind AS adjustments while quarterly cash generation was in line with EE. We expect the monetization of its stable operational assets to be concluded by Dec 17. With positive traffic growth in August, we expect steady growth to return over next 2 quarters. The company will continue its focus on more HAM projects and reduc
Earnings Continue to Remain Robust on High Order Book
In line with our estimate, standalone revenue of Kalpataru Power Transmission (KPTL) grew by 1.6% YoY to Rs12.0bn in 1QFY18 owing to muted growth in T&D business. Revenues from T&D declined by 3% YoY on back of deferrals due to GST. Notably, revenue from Railways and Piping business grew by
* Q1 performance affected by down-stocking in domestic market and inventory correction in international market:
In Q1FY2018, Emami’s revenue declined by 16.1% YoY to Rs.541.1 crore, significantly impacted by down-stocking in domestic business and a 19% decline in the international business rev
Recovery will be gradual
* Tech Mahindra reported decline in organic revenues for Q1FY18 but remains confident on improved business traction both on Enterprise as well as Telecom business (ex LCC). LCC business would bottom in Q2FY18 and should then stabilize.
* Commentary is confident on revenue traction driven by strong TCV signings of US$
Ashoka Buildcon’s (ASBL) saw strong execution ramp-up during 1Q18. Its current order book stands at Rs 64bn and order book/TTM ratio at 2.8x, giving us confidence on the company achieving 20% revenue CAGR over FY17-FY20E. Toll collections grew 14% yoy with most projects seeing decent traffic growth. We expect new HAM project wins, sale of SBI Macquarie stake and steady EPC performance to
Foray into Electric Vehicle Manufacturing Biz – A Big Challenge
JSW Energy (JSWEL) has reported a subdued performance in 1QFY18 largely due to lower generation from thermal plants and lower merchant realisation. Its revenue dipped by 8.9% YoY to Rs22.3 bn owing to 4.4% YoY decline in generation and lower average realisation of Rs3.5/unit vs. Rs3.
* Healthy operating performance and lower interest cost led to robust PAT growth, results in-line with expectations:
Sundram Fasteners Limited (SFL) registered healthy double-digit topline growth (11% YoY) for Q1FY2018, driven by improved demand scenario and new product additions. The company&rsquo
Better than forecasted OPM offset by higher tax rate
Hero Motocorp (HMCL) revenues were below estimates,OPM was better than forecasts but PAT was in line with estimates.HMCL reported a revenue growth of 7.7%,which was lower than forecasts as realizations came in weaker than expectations owing to Rs500mn impact of dealer compenation for GST. OPM at 16.3
Operating performance beats estimates; Maintain HOLD
* Mangalam Cement’s (MGC) Q1FY18 results surprised positively on operational parameters, with EBITDA at Rs405mn coming in against estimate of Rs295mn, led by higher realization and inclusion of other operating income in revenue.
* Sales volume was up 3.3% yoy at 0.63mt. Reported reali