We attended BEL’s analyst meet and returned confident of maintaining our bullish stance on the company as the prospects remain firm in the near/medium term. The company expects order inflow to remain healthy at ~Rs150bn for next 2‐3 years, given the healthy pipeline of orders. BEL is investing in capex to support execution of strong order book. It is also looking at stepping up R&D
Revival in Building Product segment holds key; Retain Hold
* Subdued quarter – Revenue at Rs 4.8bn up 0.2% yoy, EBITDA down 21.5% yoy to Rs 531mn and APAT at Rs 118mn down 44.4% yoy
* Building products grew by 1.2% yoy impacted by GST led destocking in the month of June. Company expecting normalcy to be attained by September and i
Strong volume growth continues; deserves premium valuations
* Net sales grew 22.5% YoY to INR6.96b (our estimate: INR6.81b), with 13% volume growth. Men’s innerwear grew 20% (11% volume growth), women’s innerwear grew 24% (15% volume growth), and sportswear grew 26% (21% volume growth). Speedo sales grew 8% (14% volume dec
Robust execution drives earnings
* ASBL reported Q1FY18 standalone revenue of Rs7.3bn which was 31% higher than our estimates of Rs5.5bn led by strong execution in the EPC revenue, mainly from Eastern Peripheral Expressway, Mumbai JNPT Port and other road projects
* ACL and ABL owned projects both
* Weak quarter:
Ratnamani Metals & Tubes (RMTL) has reported a below-than-expected earnings performance for Q1FY2018, with its Operating Profit Margin (OPM) coming in at 14.8% (down 210BPS YoY), owing to lower revenue. Consequently, net profit for the quarter declined by 26% YoY to Rs23.1 cror
Genus is the largest player in the domestic electric metering market with a 27% market share and installation base of 42mn units across the globe. Post the FY17 blip, domestic metering market is expected to bounce back stronger over the next three years even as DISCOMS work towards reducing AT&C losses to meet UDAY targets. Further, demand for smart meters is expected to jump multifold as A
Rail profitability impacted sharply by increased imbalance
GDPL reported EBITDA (Rail + CFS) of INR450m (est. of INR531m; -19% YoY, -14% QoQ). PAT (before associate/minority interests) of INR180m (-20% YoY, -19% QoQ) was below our estimate of INR250m due to lower margins in the Rail segment. CFS profitability was largely in line, as the better perform
* Domestic revenue dropped by 17% yoy to Rs2.8bn due to destocking ahead of GST implementation while export revenue at Rs3bn were lower by 12% yoy, in line with planned supply schedule of the management.
* Total revenue at Rs5.8bn (-14% yoy) was below our as well as consensus estimates. Gross margin improved by 210bps to 53% but due to higher other exp
In-line at operating level; Strong performance across segments
* Tonnage grew 12% YoY to 55,100MT (est. of 53.5k), while realizations rose 18% YoY (+7% QoQ) to INR218k/ton (est. of INR208k). Net revenues rose 33% YoY (+7% QoQ) to INR12b (est. of INR11.1b).
* The company delivered strong performance across segments, particularly Nonauto (+80%
* Kolte-Patil Developers’ (KPDL) Q1FY18 consolidated earnings were 5% ahead of estimate as the Jay-Vijay, Mumbai project hit revenue recognition during the quarter.
* New sales bookings of 0.41msf were down 38% YoY and 25% QoQ on account of GST/RERA impact. The newly launched
* Decent performance in the backdrop of volatile currency; lower interest and depreciation cost led to strong PAT growth:
During Q1FY2018, Cox & Kings Limited’s (CKL) net revenue stood flat at Rs.705.6 crore, as rupee appreciation against key currencies affected the international busines
Well placed to address the Digital opportunity…
…but status quo on near-term challenges
* We attended MindTree’s (MTCL) analyst meet, where the company highlighted its roadmap to capitalize on the Digital opportunity.
* Its differentiated approach in Digital is led by its holistic approach of [1
Strong margin in Paper negates subdued show in Textile
* Trident’s Q1FY18 net sales stood at Rs11.8bn (+2.3% yoy), led by a 1.7% yoy growth in Textile and a 2.4% yoy growth in the Paper segment. Towels revenue declined by 7.8% yoy, primarily due to a higher base.
* EBITDA margin declined 50bps yoy to 20.3%. EBITDA stood at Rs2.39bn (-0.
On the way to glory
* EBITDA grew 16% YoY (+21% QoQ) to INR7.4b, higher than our estimate of INR6.9b. While utilization was in line with our estimate, lower opex resulted in the EBITDA beat. PAT increased 16% YoY (-7% QoQ) to INR4.4b, below our estimate of INR4.6b, due to lower other income of INR707m (est. of INR1b; +43% YoY, -53% QoQ) and a hig
* JKIL’s Q1FY18 earnings were in line with our estimates as the lackluster performance resulted on account of lack of availability of raw materials (mining ban on stone quarries), which is temporary in nature.
* TBMs are expected to arrive by Q3FY18 and Metro 3 underground lin
* Good operational performance across business verticals:
Grasim Industries’ (Grasim) consolidated net sales for Q1FY2018 grew by 8.4% YoY to Rs.9,846 crore, led by revenue growth in chemical (up 19.4% YoY), VSF (up 10.9% YoY) and cement (6.4% YoY) divisions. Margin improvement in the cement
Srikalahasthi Pipes Ltd. (SPL) one of the leading manufacturers of DI pipes in India, reported a mixed set of numbers for Q1 FY18. It reported a 53.7% Y-o-Y rise in the revenue to Rs. 4,404.9mn, while there was a sharp contraction in EBITDA margin by over 13ppts. Profit after tax declined by 15.2% Y-o-Y to Rs. 364.4mn. Q1 FY18
* Topline growth driven by both volume and realisation; higher power purchase cost impacts margin:
PTC India’s revenue grew by 21% YoY to Rs.4,402 crore, driven by volume and realisation growth during the period. Volume grew by 16% YoY to 14,182MU, in line with our estimates, while realisati
Merger to conclude sooner than anticipated
Risk of market share dilution reduced; synergies not fully factored
* The Vodafone-Idea merger is likely to conclude by the end of FY18, much ahead of the earlier expectation of mid-FY19. This should reduce the risk of market share dilution; we had assumed cumulative market share di
Weak demand dents performance
* TD Power Systems (TDPS)’ Q1FY18 operational performance was below our expectations. Revenues declined by 32% yoy as lower billings and GST related deferment impacted revenue bookings. TDPS posted losses of Rs188mn at the EBIDTA level, while bottom-line loss stood at Rs210mn.
* TDPS has recently finalised
Operating performance below expectations; maintain Sell
* 1QFY18 operating performance disappoints: Sales for the quarter stood muted at INR55.1b (-1.9% YoY), below our estimate of INR58.9b, led by weak execution in Industrial segment (-8% YoY) and flat YoY Power segment sales of INR43.4b. BHEL recorded operating loss of INR0.9b, as a
Strong rental growth continues
* The Phoenix Mills (PHNX) reported revenue of Rs4.6bn (including Chennai Mall which has become an associate) that was in line with estimates. Including Chennai Mall, EBITDA and APAT were also in line with estimates.
* Consumption grew 19% YoY across malls in Q1FY18
* Revenue grows 10%, driven by 19% growth in industrial systems, profitability weakens:
On a standalone basis, CG Power and Industrial Solutions Ltd. (CGP) reported 10% YoY growth in its net sales to Rs.1,261 crore, led by 19% growth in industrial systems business during Q1FY2018. Industrial busine
Cotton leadership and product diversification to provide holistic growth
* Revenue in-line; EBITDA and PAT beat estimates: KSCL reported overall revenue of INR5,906m (est. of INR5,829m) in 1QFY18, as against INR4,940m in 1QFY17, marking growth of 19.6%. EBITDA stood at INR2,069m (est. of INR1,918m), as against INR1,583m in 1QFY17. Mar
Strong quarter; Outlook remains intact
* Consolidated revenue grew 26% yoy to Rs131 bn (Emkay: Rs114bn; Consensus: Rs124bn), led by acquisition of PKC, as well as growth of 21% and 6% in standalone and SMRPBV, respectively. Both domestic and overseas revenue growth was robust, at 24% and 25%, respectively.