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    Quarterly results snapshot: How did GSK, TVS Motors, RBL bank and other companies perform during the quarter?

    Publish Date: October 24, 2018

    Pharma heavyweight GlaxoSmithKline (GSK) and two-wheeler major TVS Motors reported their 2QFY19 results along a bunch of other important companies. Read on to discover how each of them fared.

    1) GlaxoSmithKline net profit down 23%

    GlaxoSmithKline Pharma reported a fall in standalone net profit to Rs 100.77 crore for the quarter ended September 30, 2018. It earned a net profit of Rs 130.32 crore in the same quarter last year. The profits are down by nearly 23%.

    Total revenue stood at Rs 831.13 crore for the 2QFY19. The revenues of the company were Rs 845.89 crore in 2QFY18.

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    2) TVS Motors revenue up 21.9%, declares interim dividend

    TVS Motors reported total revenue of Rs 4,994 crore at growth of 21.9% YoY from Rs 4,098 crore in the quarter ended September 2017. 

    EBITDA for the quarter ended September 2018 is Rs 428.2 crore compared to Rs 362.6 crore for the quarter ended September 2017, a growth of 18.1%. EBITDA for the quarter is at 8.6%. Sequentially, EBITDA has gone up by 90 basis points.

    Profit after tax (PAT) for quarter ended September 2018 is Rs 211.3 crore against Rs 213.2 crore reported for the quarter ended September 2017. Operating PAT for the quarter ended September 2017 prior to consideration of fair valuation gain (net of tax) is Rs 190.4 crore. The growth in operating PAT for quarter ended September 2018 is 11%.

    The Board at its meeting on October 23, 2018, declared an interim dividend of Rs 2.10 per share (210%) for the year 2018-19.

    Related read: Will the extra cost of insurance hurt two-wheeler stocks?

    3) RBL Bank net profit increases 36%

    Lender RBL Bank’s 2QFY19 net profit up by 36% to Rs 204.54 crore. The bank reported advances (net) and deposits were up by 37% and 31%, respectively, on YoY basis. net interest income (NII) up by 41% to Rs 592.97 crore. RBL bank’s other income is up by 38% to Rs 333.11 crore, while core fee income is up by 60% to Rs 325.24 crore. The bank’s gross NPA ratio was at 1.40% (1.44% in 2QFY18) and net NPA ratio was at 0.74% (0.78% in 2Q18). Its provision coverage ratio increases to 61.45%.

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    4) Genus Power sales beat expectation

    Prima facie, Genus Power reported 2QFY19 results in line with expectations. Net sales grew by 34% as compared to our expectation of 26%. EBITDA margins improved from 9.6% to 11.0% on YoY basis. Net profit grew by 38% on YoY basis, in line with our expectations (profit estimate of Rs 12 crore).

    Related read: Stock Recommendation – Genus Power Infrastructure Ltd

    5) Kansai Nerolac: Prima facie results below expectation

    Revenue was reported at Rs 12.94 bn (11.1% YoY and expectation of Rs 13.65 bn) with 9% overall volume growth.

    Raw material price inflation and weakness in the industrial segment (especially Auto) impacted the Gross margin and EBIDTA margin for the quarter.

    In 1HFY19, company had taken a price hike of just 2% to counter the steep increase in raw material prices including crude derivatives. Company has taken another price hike of 2-3% across segments on October 1 which should reflect in the performance of 3QFY19.

    Management mentioned that the industrial segment including Automotive segment is weak and it is difficult to pass on RM hikes in this segment. While decorative is strong for the entire industry.

    Consequently, PAT was reported at Rs 1.22 bn vs. our expectation of Rs 1.42 bn.

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    6) Jubilant reports stronger performance

    Jubilant Life Sciences reported strong performance in 2QFY19. Revenue at Rs 2,269 crore, up 38% YoY; EBITDA at Rs 454 crore, up 45% YoY. PAT stood at Rs 210 crore, up 64% YoY, with net margin at 9.3%. Pharmaceuticals revenue stood at Rs. 1,326 crore, while that from Life Science Ingredients was at Rs. 887 crore.

    Jubilant reported that finance costs were lower by 5% YoY at Rs 63 crore. Finance costs include borrowing costs of Rs 54 crore and non-cash stock settlement charge of Rs 9 crore.

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    7) Schaeffler sees strong order inflows

    Schaeffler reported that total revenue from operations (net) of the merged entity for the quarter increased to Rs 1,191.5 crore, higher by 18.7% than the corresponding quarter of 2017. PBT (before exceptional items) of the merged entity for the quarter increased to INR 178.2 crore, higher by 20.9% than the corresponding quarter of 2017. Volumes increased with merger of INA Bearings India and LuK India.

    Increasing crude oil prices combined with appreciating US dollar and hike in steel prices and import duties put pressure on cost side for manufacturing sector. Schaeffler managed these challenges and deliver solid results. Strong order inflow assisted in stable results.

    Primary sectors for orders were led by railways, off-road equipment, commercial vehicles, and infrastructure-related sectors. Robust growth was reported in both automotive and industrial businesses.

    Related read: How high crude oil prices and Iran dilemma will impact India

    A few words of caution:

    The earnings are as reported by the companies under SEBI regulations and LODR agreements. Investors should check figures reported from the Stock Exchanges or published by the company on its website before making any investment decisions.

    Investors should also note that among the risks and concerns highlighted by us are any major revision in licensing terms of foreign brands, lower export incentives, and raw material or forex volatility.

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