BHEL’s Q3FY17 operating performance was above our expectations. Q3FY17 revenue grew 18.7% YoY to Rs 63.2bn, which was a tad higher than our estimate of Rs 62.3bn. This was the fourth successive quarter of strong revenue growth after fourteen consecutive quarters of revenue de‐growth. EBITDA margin improved to 3.5% from ‐30.3% YoY against our estimate of 1.9%, mainly due to 65.2% YoY d
* Disappointing quarter:
Kaveri Seed Company (KSCL) reported a weak set of numbers for Q3FY2017, with the topline down by 2.7% YoY to Rs67.9 crore, as Maize performance was affected by lower acreage in Bihar and coastal Andhra Pradesh. EBITDA margin shrunk by 1,829BPS from 23.3% to 5%, mainly due
IB/BHAFIN merger – Win-win for both
Better profitability – strong market share gain
The Economic Times, in its article published last week, reported that IndusInd Bank (IIB) and Bharat Financial Inclusion (BHAFIN) are in talks to explore a merger opportunity. In this note, we present a short summar
Inline operating performance; SKY deal lends near term growth visibility
* FSL reported sequentially flat INR revenues, inline with our estimate. The constant currency revenue growth for Dec’16 quarter was 2.1% QoQ/13.9% YoY, continuing on strong double digit YoY growth trajectory for fourth quarter in row
* EBITDA margins at 12.1%, dec
Titan Company has posted an impressive performance in 3QFY17 especially in the backdrop of demonetization. While net revenues increased by 13.9% YoY to Rs38.7bn, net profit rose by 13.1% YoY to Rs2.6bn and EBITDA grew impressively by 25.5% YoY to Rs3.5bn. We continue to remain positive on Titan owing to its leadership in organised jewellery market, success of new products and recovery in watch
Strong operating performance, BUY
KKC’s Q3FY17 operating performance (revenue/EBITDA: +19%/+31% YoY to (Rs 13.6bn/Rs 2.3bn) was ahead of estimates on above-expected export growth (+23% YoY) while domestic sales rose 16% YoY. Management has guided for 10-12% YoY domestic revenue growth in FY17 buoyed by the Govt.’s infrastructure thrust, ev
VSF segment posts a favourable performance, Valuation expensive
* Grasim Industries’ Q3 operating performance was largely in-line with our estimates with EBITDA at Rs5.1bn (vs Rs4.9bn estimated) on the back of a favorable performance of the VSF segment although the Chemical segment was subject to margin pressure.
* VSF realization was u
* Strong footfalls despite cash crunch; non-ticket revenue growth also sturdy:
For Q3FY2017, Wonderla Holidays’ (WHL) revenue grew by 39.0% YoY to Rs70.1 crore - much ahead of our as well as street expectations. Despite the tight liquidity scenario in the wake of demonetisation, the footfalls
Jubilant FoodWorks (JFL) has reported respectable set of numbers in 3QFY17, especially considering the impact of demonetization. Its net revenues grew by 3.9% YoY to Rs6.6bn, while EBITDA and PAT declined by 11.8% YoY and 32% YoY to Rs640mn and Rs200mn, respectively. Same Store Sales (SSS) fell by 3.3% vs. our estimate of 5% YoY decline.
Since we initiated our coverage on JFL in Jan&r
Better than expected recovery post demonetization; Retain ACCUMULATE
* Revenue & operating performance above estimates - Consolidated revenues Rs246bn, +9.2% yoy, EBITDA at Rs5.2bn, +13.7% yoy, and APAT at Rs3.5bn, +5.3% yoy
* Domestic volume declined by 3% yoy while value growth was flat yoy. Soaps declined by 6% yoy impacted by withdraw
Edelweiss Financial Services Ltd (EFSL) is on the cusp of accelerated growth given the growth opportunities presented by:
* Under penetration of credit in India
* Exponential growth of the wealth management industry
* Unique opportunity presented by the Asset Reconstruction space
* Emergence of Insurance as a high growth
* Jaguar continues to do well clocking +75.7%/(‐14.7%) YoY/MoM growth in Jan‐ 17 at 13,949 units led by F‐Pace model which started sales in Mar‐16. F‐Pace sales were at 5,863 units, down 11% MoM.
* Land Rover continues to follow the trend seen in Q3FY17 witnessing a YoY fall. Retail sales volume dipped (‐11.4%)/(‐13.5%) YoY/MoM in Jan‐17 at 33,744 units owing to ‐6.6
Sonata Software (Sonata) delivered an unimpressive performance in 3QFY17, with IITS business revenue declining 2.9% QoQ to $30.3mn (~4% below our estimate). However, IITS revenue adjusting for Systems Integration (hardware) revenue in 2QFY17 rose 1% QoQ in USD terms and 3.5% QoQ in CC terms. DPS revenue rose by 31% QoQ and 20.9% YoY to Rs4.15bn. While consolidated EBIT margin topped our estimat
Good performance in a tough environment
VMART reported above-expected Q3 revenue of Rs 3.26bn (+23.3% YoY) with apparel SSSg of 17% YoY. EBIDTA margins expanded ~338bps YoY to 14.8% led by higher gross margins (+252bps YoY). Adj. PAT jumped ~81.2% YoY to Rs 272mn on lower interest cost and depreciation, and came in much better than expectations. As pe
Tough times ahead
* Blue Star (BLSTR) 3QFY17 operational performance was impacted by incremental promotional and marketing expenses on the launch of water purifiers. Revenues increased by 26 % YoY, EBITDAM increased by 58bps YoY and PAT increased by 57% YoY.
* Revenues in the Electro-mechanical projects and packaged air conditioning systems (
* Strong growth in profitability:
Bajaj Finserv (BFS) reported a strong 40.4% YoY growth in Q3FY2017 net profit, driven by a healthy growth in the General Insurance and Lending segments. The company also reported an encouraging 35.7% YoY growth in consolidated total revenue, as loan book from the Le
APTY's results came in ahead of expectation on account higher than expected revenues from the European business. Consolidated revenues grew by 17% YoY. EBITDA margin contracted YoY and QoQ to 14.4% on account of rise in raw material cost. However, high other income and lower tax rate translated into 6% growth in PAT, despite 2% decline in EBITDA. Going ahead, we expect there various drivers
Escorts’ tractor volume grew by 27.4% YoY to 16,963 units in Q3FY17. While, its construction equipment business is expected to be healthy double digit growth of around 15% YoY during the quarter. We expect revenues from construction equipment segment to grow by 8% YoY due to product mix during the quarter. We expect Company’s blended revenue to grow by 19.6% YoY and 6.7% QoQ t
Targeting new growth opportunities...
NRB Bearings is amongst the largest bearing companies in India, specializing in providing
customized bearings for the mobility segments (automobiles, aftermarket, etc.).
Incorporated in 1965, it was the first company to manufacture needle roller bearings in
India and has a dominant market share
JK Lakshmi Cement (JKLC) has reported a better-than-expected operating performance in 3QFY17. JKLC’s EBITDA grew by 22% YoY to Rs0.83bn vis-à-vis our estimate of Rs0.63bn primarily attributable to better-than-estimated sales volume, which stood at 1.83mnT (+4% YoY and +6.5% QoQ). Operating cost/tonne declined by ~2.5% YoY and ~1.7% QoQ mainly on account of significant reduction in
Turning around on expected lines
IOCL’s Q3 PAT at Rs 46bn (+67% YoY, +49% QoQ), adjusting for one-time crude entry-tax provisions of Rs 19.8bn, matched estimates on (a) in-line GRMs of US$ 5.1/bbl (adj. for US$ 2.6/bbl of inventory gains) (b) higher petchem volumes (0.64mmt; +2% YoY/+4.6% QoQ) (c) higher marketing margins (Rs 1,200/mt adj. for in
Revenues for Q3FY17 were ahead of our estimates and were led by healthy 13%YoY improvement in laminates volume and 7.2% YoY improvement in plywood volumes division. Operating margins declined due to lower margins across divisions. Higher depreciation and interest expense led to net profits coming slightly below our estimates. Volumes were impacted in the current quarter by demonetization but no
Continued traction in the brand portfolio
* Consolidated revenues rose by 15% yoy to Rs23bn. EBITDA margin was down 250bps yoy at 10.1%. APAT down 16% yoy at Rs756mn
* “Unlimited” and growth brands drove overall Brand and Retail (B&R) growth by 24% yoy to Rs7.6bn. Textile revenues grew 8% yoy to Rs14bn on the back of a robust
* AUM growth propels strong profit growth; NIM expands:
Housing Development Finance Corporation (HDFC) posted a better-than-expected Q3FY2017 results, with an 11.9% YoY growth in the standalone profit after tax (PAT) at Rs1,702 crore, helped by strong AUM growth and better-than-expected Net Intere
Cummins India met sales/PAT Q3FY17 estimates on back of growth across key business segments-both domestic and exports. Exports recovered in the quarter (on the low base of Q3FY16), however management is more confident in sustainability of growth in the domestic business. Management maintained FY17 growth guidance of 10-12% YoY growth in domestic and flat growth in international business.