In-line result; capacity expansion to drive growth
* East continues to gain momentum: TRCL’s volumes grew 4% YoY (-6% QoQ) to 2.15mt (est. of 2.16mt) in 1QFY18, driven by increased sales to the east markets. Volumes for the southern operations declined due to weak demand in Tamil Nadu on account of sand shortage.
A steady quarter...
Manpasand Beverages reported decent set of numbers for Q1FY18. Net sales increased by 28.6%, while Net profit was up by 25.5% on YoY basis. With doubling of capacity in the next 12-18 months, entry in new markets and launch of new brands, we expect the company to post healthy growth in the coming years. Thus, we maintain a BUY on th
For 1QFY2018 Indoco Remedies posted poor set of numbers. Sales came in at `204cr (`214cr expected) v/s. `253cr in 1QFY2017, a yoy de-growth of 19.1%. The company witnessed a disruptive 1QFY2018, with domestic as well International sales getting affected adversely due to GST implementation in India and voluntary stoppage of ophthalmic product supplies to US respectively. On operating front, the
Latent synergies to bolster growth
* Flat consolidated revenues – a solace to Idea: Marred by disruption in the sector over the last two quarters, Idea’s revenue for 1QFY18 came in flat QoQ (-14% YoY) at INR81.7b. Recovery in voice revenue growth to 2% QoQ (to INR61b) was offset by data revenue decline of 7% QoQ (to INR13.7
Higher RM costs weigh on margins
* Revenues in Q1FY18 up 8.4% yoy to Rs3.4bn driven by robust volume growth of 15.7% yoy which was partly offset by adverse currency impact of 5.4% and 1.9% of price/product mix. NAFTA region reported stellar growth of 49.7%yoy.
* Gross margins contracted by 358bps yoy to 32.3% on high raw material and adverse
JSW Energy (JSWEL) 1QFY18 performance was impacted by lower PLFs at thermal plants and subdued merchant realization. Management highlighted that going ahead thrust will on reduction of debt, capacities tie up and efficiency improvement. JSWEL has announced its foray into e-vehicles and energy storage systems with approx. capex of Rs 40bn over three years with first e-vehicle planned to come up
In-line Quarter; Positives Priced in
CESC’s net profit grew by 2.3% YoY to Rs1.78bn in 1QFY18, in line with our estimate of Rs1.79bn. Its revenue rose by 8.5% YoY to Rs21.8bn led by rise in PLF at Haldia & Dhariwal plants and 5.8% YoY rise in realisation to Rs7.66/unit.
Witnessing a sharp rally since our last recommendation, CESC ha
* Higher volume and realization negated by elevated opex; higher depreciation and interest outgo dents earnings:
Shree Cement’s Q1FY2018 revenue grew by 13.9% YoY to Rs2,536 crore, driven by a 13.9% YoY volume growth (due to capacity ramp-up in the East) and a 7.5% YoY growth in realisations
Taro numbers indicate elevated pricing pressure: Maintain REDUCE
* Taro (TARO) reported Q1FY18 numbers that are below estimates, with revenue of US$161mn (estimate: US$194mn), EBITDA of US$81mn (estimate: US$100mn) and net income of US$74mn (estimate: US$86mn).
* Overall EBITDA margin stood at 50.
Ramkrishna Forgings Ltd. (RKFL) reported revenue of INR 2576 mn in Q1 FY18 (18.5% jump over INR 2175 mn YoY) and a PAT of INR 91 mn (71.9% jump over INR 53 mn YoY) on the back of pickup in export volume and improved realizations in domestic market. EBITDAM has improved by 8.4 bps YoY despite delay in passing of increased RM cost to the clients. RM cost as % of sales increased by 79.6 bps. Emplo
On a growth path…
Wonderla Holiday Ltd. (WHL) reported steady Q1FY18 results on expected lines. Net sales increased by 18.3% YoY to Rs 102.3crs, primarily led by increase in realisation. EBITDA increased by 17.3% YoY to Rs 47.3crs. Net profit came in at Rs 26crs, a growth of 15.7% over Q1FY17. The Company has acquired land in Chennai for its 4th