Bodal Chemicals (BCL) is a leading manufacturer of dyes Intermediates/dyestuff and has diversified into speciality chemicals. Company's products are used in diverse industries such as Textile, Paper, Plastic, Leather etc. Stricter environmental norms and increased costs substantially eradicated low cost advantage of Chinese dye manufacturers. BCL with presence across dyestuff value chain an
* Operating performance stable in a weak environment; higher other income leads to strong growth in PAT:
For Q4FY2017, Kewal Kiran Clothing’s (KKCL) overall revenue was marginally up by 2.9% to Rs130.3 crore, driven by a 7.7% YoY rise in realisation per unit, which resulted in a value growth o
Impressive Performance; Reiterate BUY
Indian Bank has delivered a healthy operating performance in 4QFY17. Its operating profit surged by 29.3% YoY and 4.8% QoQ to Rs10.7bn led by strong growth in NII (22.1% YoY & 11.1% QoQ to Rs13.9bn) and relatively lower (7.6% YoY and 9.1% QoQ) opex at Rs9bn. However, provisioning expense increased by 49.3% QoQ
* We expect CYL’s USD revenue to grow 3.3% QoQ in 4QFY17 (+2.7% QoQ in CC).
* In the core services business, CYL’s revenue is expected to increase by 1.9% QoQ. Revenue growth is expected to pick up post the seasonal weakness witnessed in the previous quarter.
* We expect USD17m in revenue in Rangsons, which would imply annual revenue of USD55m; +42% YoY, short of
Sales volume stagnant; valuations stretched
* UltraTech (UTCEM)’s Q4FY17 operating performance was lower than estimates with EBITDA at Rs11.8bn (adjusted for other operating income) against our estimate of Rs12.7bn. EBITDA/tn was at Rs872 against our estimate of Rs933.
* Domestic sales volume was flat YoY at 13.35mt. Grey cement realiza
Non-Maggi volumes continue to be tepid
Increasing cash and cash equivalents restricting RoCE improvement
* Key takeaways from Nestle India's (NEST) CY16 annual report:
* Continued poor volumes in non-Maggi portfolio n Blended realization growth lower than earlier years
* A&P to sale
* Strong operating performance; Ninth consecutive quarter of 20%+ growth in NII:
LIC Housing Finance (LICHF) has posted better-than-expected results for Q4FY2017 with a strong net profit growth of 18.1% YoY to Rs529.2 crore, driven by a healthy 30.6% YoY growth in the Net Interest Income (NII) and c
Strong performance in line with thesis
* Hexaware reported a strong revenue performance in Mar’17 quarter with a 4.1% QoQ US$ revenue growth ( best sequential growth in Q1 since 2012), significantly ahead of Street/Emkay estimates
* EBIT margins came in at 15.3%, down by 50 bps QoQ albeit still better than estimates. Robust headcount ad
Inline; Asset quality impacted by one off large account
* Yes Bank’s (YES) NII grew 32% YoY (+10% QoQ) to INR16.4b, helped by 20bp YoY NIM improvement (to 3.6%) and customer assets growth of 36% YoY (+15% QoQ). Strong NII and beat on other income (27% beat; +57% YoY) drove PPoP outperformance (+38% YoY; 14% beat). However, significantly higher pr
* The event - Doctors directed to prescribe generics compulsorily:
According to media reports, the government is considering drafting a legislation, making it mandatory for the doctors to prescribe generic drugs as against branded drugs (as is being done now). A circular in this regard is already b
Steady Q1 notwithstanding a 'forex' blip…
CRISIL's 11.9% YoY Revenue growth in Q1CY17 was driven by pick-up in the research business while Operating margins came in largely in-line at 30.3%. However, adverse forex impact of Rs 11.9 cr led to flattish profit growth of Rs 73.3 cr. Though sluggish credit offtake and diminished prospects
Broadly in-line; Maintain Buy
* Results beat marginally our estimates with EBITDA at Rs113bn (against our estimates of Rs111bn) due to higher than expected GRM. Also PAT came in at Rs81.5bn vs our estimate of Rs79.5bn. Due to forex gain interest expenses came down qoq. While tax out go was lower due to benefit of IndAS implementation which is expected
One-off provision mars strong operating performance
* IndusInd Bank’s (IIB) 4QFY17 PAT grew 21% YoY (in-line) to INR7.5b. Provisions were elevated at INR4.3b as they included one-off amount of INR1.22b on a bridge loan for a cement M&A transaction (account remains standard), where the receivable is in June (likely to get reversed in 1QFY18).
Abundant opportunity in long term, but short-medium term concerns to
* The long-term opportunity for GUJGA is sizable, given just 18% penetration in the
PNG-domestic segment and 30% penetration in the CNG segment, coupled with
possible regulatory push.
* Combined pre-merger peak sales were 8-9mmscmd. Morbi, the largest
* Solid performance in a challenging period: During Q4FY2017, HDFC Bank (HDFCBK) registered a strong performance (ahead of our as well as street expectation), with the Net Interest Income (NII) growing by 21.5% YoY to Rs9,055 crore on the back of asset growth of ~19% YoY and a core Net Interest Margin (NIM) of 4.3% vs 4.1% QoQ (4.2% YoY). N
Volumes remain muted…
UltraTech’s Q4FY17 operational performance was broadly in-line with our estimates with revenues/EBITDA came at Rs 65.9bn/12.8bn against our estimates of Rs 64.7.3bn/12.5bn. Blended cement sales volume remained flattish YoY while realisation declined 2% QoQ. EBITDA/ton declined 8% YoY to Rs 908/t (in-line with estimate
SUN is shining- Now with clarity on digitization in TN
* Recently, the Ministry of Information & Broadcasting finally issued a provisional digital addressable system (DAS) license to Tamil Nadu (TN) government-owned ARASU Cable TV Corporation but with the condition to complete digitation in three months
* This announcement paves the way f
* We expect loan growth to be significantly ahead of system average at 25% YoY (nearly 5x industry growth rate) on the back of refinancing opportunities and strong growth in retail banking.
* We expect NIM to remain largely stable with falling yields negated by lower cost of funds on account of CASA inflows post demonetization and re-pricing of bulk deposits. Consequently, NII growth
* Higher than expected GRM leads to beat in operating profit: Reliance Industries (RIL) reported better-than-expected Q4FY2017 operating profit of Rs11,280 crore compared to our estimate of Rs10,711 crore, primarily on the account of a strong beat in GRM at $11.5/bbl (vs our expectation of $10.5/bbl) while the Petrochemicals EBIT margin at
* We expect strong loan growth of ~24% in 4QFY17 – significantly ahead of system loan growth. Deposit growth would be strong at 32% YoY, aided by demonetization in 3Q. Continued market share gains in VF would remain a key factor to monitor.
* NIM is likely to decline marginally (by 5bp QoQ), but would remain at 3.8-3.9%. The quantum of CASA retained would be a key factor.
Revenue Growth Enthuses; Guidance Reiterated
Hexaware Technologies (Hexaware) recorded a strong performance in 1QCY17 led by focus on niche sub-verticals like Travel and Capital Markets. USD revenue grew 4.2% QoQ in 1QCY17 (4% in CC terms) to $144.7mn (3.1% above estimate) mainly on strong volume growth of 3.8% QoQ. Vertical-wise, strong growth was rec
Lower costs led better than expected margins
ACC’s Q1CY17 operational performance better than our & consensus estimates, led by higher than expected volumes and lower than expected fixed costs. EBITDA of Rs 3.42 bn (-9% YoY) was 18% higher than our estimate of Rs 2.88 bn. Volume growth of 4% YoY was better than expectations. EBITDA/t stood a
Impressive all-round performance
* Gruh Finance (GRHF) reported PAT of INR1,104m (6% above our estimate) for 4QFY17, driven by strong loan growth, controlled operating expenses and lower provisioning charge.
* Loan growth for the quarter was a robust 19% YoY, marginally ahead of our expectation, driven by growth of 19% in housing loans and 37
INVIT listing a positive trigger
Key INVIT listing highlights
* IRB’s upcoming INVIT listing for 6 projects priced at an EV of Rs58-59bn (1x implied P/B) will lead to net debt reduction of Rs47.4bn (includes Rs33bn of SPV level debt and Rs14bn of subordinated debt given by IRB to these SPVs).
Moving in the right direction, but fairly valued
We recently met management of Indraprastha Gas (IGL). Key takeaways:
CNG segment to see 8-10% growth
* At peak, Delhi Transport Corporation (DTC) had a fleet of 5,500 buses. However, due to the phasing out of older buses and the inability to add newer