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Earnings Season - Results Updates for Q2FY19

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  • First impression: NBCC (India) Ltd.

    Publish date: 15th November, 2018

    • NBCC reported mixed result with revenue better than estimates and EBITDA margins disappoint.
    • Standalone Net Sales for the quarter grew by 39.7% yoy as compared to our expectation of 17% yoy growth led by strong revenue in PMC segment
    • EBITDA margin at 3.7% was below our estimates of 8.4% due to lower margins in PMC segment.
    • The company reported 16% yoy growth in PAT as against our estimates of 18.9% yoy growth due to lower margins, but other income was higher than estimates.
    • We will look for granular details in the company’s post concall with the management and would come out with detailed update note in Morning Insight.



    First impression: MRPL

    Publish date: 15th November, 2018

    • MRPL reported lower than estimated results mainly due to poor GRMs, higher forex losses and higher RM cost.
    • Standalone Net Sales grew by 43% yoy and 7% qoq lower than our expectation. Exports jumped meaningfully 82% qoq.
    • Reported GRMs (US$4.41/bbl) are below benchmark Singapore GRMs (US$5.9/bbl). This has been the main drag.
    • Crude throughput is higher 2% qoq and 11% yoy to 3.91 Mn MT, in line.
    • We will look for granular details post discussing with the management and would come out with detailed update note in Morning Insight.



    First impression: PNC Infratech Ltd.

    Publish date: 14th November, 2018

    • PNC Infratech reported better than estimated results driven by strong execution in the quarter
    • Standalone Net Sales grew by 108% yoy as compared to our expectation of 44% yoy growth
    • EBITDA margin at 13.4% was below our estimates of 14.9%.
    • The company reported 110.8% yoy growth in PAT as against our estimates of 58% yoy growth due to higher growth in revenue
    • We will look for granular details in the company’s post concall with the management and would come out with detailed update note in Morning Insight.



    First impression: Talbros Automotive Component

    Publish date: 14th November, 2018

    • Talbros Auto reported strong financial performance in 2QFY19 and the same were ahead of estimates
    • Revenues for the company grew by 27% YoY, led by strong growth in forging business
    • EBITDA margin improved from 9.8% in 2QFY18 to 11.5% in 2QFY19
    • Backed by high growth in EBITDA; adjusted PAT for the quarter grew by 60% YoY. Share of profit from associates increased by 30% YoY



    First impression: Engineers India LTD

    Publish date: 14th November, 2018

    • EIL reported 2QFY19 result in line with our estimates.
    • Revenues for the company grew by 58% YoY, led by strong growth in both-LSTK/PMC divisions.
    • EBITDA margin declined from 32% in 2QFY18 to 14% in 2QFY19. Note that 1/ Q2FY18 financials included change order write back and so not comparable 2/ due to lumpy nature of ordering/execution, nos are often erratic.
    • Order inflows remain strong at Rs 50 Bn in the quarter taking order book to Rs 111.5 Bn in 1HFY19.



    Non-Banking Stocks : Q2 preview

    Publish date: 14th November, 2018



    Banking Stocks : Q2 preview

    Publish date: 14th November, 2018



    Non-Banking Stocks : Q2 preview

    Publish date: 13th November, 2018



    First impression: VA Tech Wabag Ltd.

    Publish date: 13th November, 2018

    • Prima Facie, results lower than expectation
    • Net Sales declined by 15% y-o-y, and was lower than our expectations
    • EBITDA margins contracted by 40 bps to 8.4%
    • Net profit declined by 3% on y-o-y basis, and came in lower than our expectations (profit est of Rs 410 mn)
    • We will look for granular details in the company and detailed note will follow after that.



    Non-Banking Stocks : Q2 preview

    Publish date: 12th November, 2018



    First impression: Sterling Tools Ltd.

    Publish date: 12th November, 2018

    • Sterling Tools reported better than expected financial performance in 2QFY19
    • Revenues in the quarter grew by 21% YoY; ahead of our expectation of 12% YoY revenue increase
    • EBITDA margin came in at 19.2% YoY (our estimate was 18.8%); down YoY due to higher raw material prices
    • Company reported PAT of Rs152mn (higher than our estimate of Rs135mn due to revenue outperformance); PAT grew by 3.5% YoY



    First impression: Insecticides India Ltd.

    Publish date: 12th November, 2018

    • Insecticides India reported better than estimated results with revenue, EBITDA margins and PAT were ahead of our estimates.
    • Standalone Net Sales grew by 10% yoy as compared to our expectation of 1.2% yoy growth.
    • EBITDA margin at 15.1% was ahead of our estimates of 14.7%.
    • The company reported 18.9% yoy growth in PAT as against our estimates of 1% yoy growth due to higher growth in revenue.
    • We will look for granular details in the company’s post concall with the management and would come out with detailed update note in Morning Insight.



    First impression:Dollar Industries Ltd.

    Publish date: 12th November, 2018

    • Dollar Industries reported better than estimated results with revenue, EBITDA margins and PAT was ahead of our estimates.
    • Standalone Net Sales grew by 24.1% yoy as compared to our expectation of 5% yoy growth.
    • EBITDA margin at 14.9% was ahead of our estimates of 12.9%.
    • The company reported 31.3% yoy growth in PAT as against our estimates of 7% yoy decline due to strong growth in revenue.
    • We will look for granular details in the company’s post concall with the management and would come out with detailed update note in Morning Insight.



    Non-Banking Stocks : Q2 preview

    Publish date: 09th November, 2018



    Banking Stocks : Q2 preview

    Publish date: 09th November, 2018



    Non-Banking Stocks : Q2 preview

    Publish date: 06th November, 2018



    Allcargo Logistics – strong Q2FY19, ahead of expectation

    Publish date: 06th November, 2018

    • Allcargo Logistics reported numbers ahead of our expectation with revenue of Rs 17.4 bn (+12.3%YoY and +6.9% QoQ)
    • The performance was led by strong volume growth in both the key segments of Multimodal Transport Operations (MTO) and Container freight station (CFS)
    • MTO reported volume of 1.74 lakh TEUs (+22% YoY) while CFS reported volume of 88,604 TEUs (+36% YoY)
    • Strong volume growth and operating leverage drove the margins of the company, with the company reporting EBIDTA margin of 7.2% (+40 bps) and highest in the last six quarters.
    • Consequently, company reported PAT of Rs 629 mn ahead of our expectation of 492 mn
    • We interpret the numbers as strong. We would share more details and our updated rating post attending the concall scheduled later



    First impression: Phoenix mills Q2FY19 results ahead our estimates

    Publish date: 06th November, 2018

    • Revenue growth stood at 9.2% YoY for Q2FY19, ahead of our expectation. Performance improvement at HSP and other market cities aided revenue growth.
    • Margins stood at 49% as against our expectation of 48% for Q2FY19.
    • Consequently PAT was reported was at Rs 621 mn, ahead of our expectation of Rs 550 mn
    • Growth going ahead is likely to be led by improvement in rentals on higher consumption and rental renegotiations as well as uptick in residential segment revenue booking.
    • We continue to remain positive on the company. Would share more details on the results and our updated rating post interacting with the company in their conference call today.



    First impression: Century Plyboards Q2FY19 results lower than our estimates

    Publish date: 06th November, 2018

    • Revenues growth was led by volume improvement in plywood but MDF division volumes declined sequentially with continuous pressure on realizations.
    • Realizations remain under pressure for MDF thereby resulting in operating margins of 13.2% as against our expectation of 15% for Q2FY19. Forex losses also might have contributed to some decline in margins.
    • Consequently PAT was reported at Rs 379 mn, lower than our expectation of Rs 466 mn.
    • Would share more details on the results and our updated rating post interacting with the company in their conference call on 6th Nov, 2018.



    Non-Banking Stocks : Q2 preview

    Publish date: 05th November, 2018



    First impression: VRL reported numbers in line with our expectation

    Publish date: 05th November, 2018

    • Performance was stable across the key divisions of trucking and bus.
    • Higher diesel prices and weak domestic trade impacted the operating margins of the company which was reported at 10.4% (down 100 bps QoQ and down 190 bps YoY)
    • Consequently PAT was reported weak at Rs 207 mn in line with our expectation of Rs 210 mn
    • Would share more details on the results and our updated rating post interacting with the company today.



    First impression: Akzo Nobel reported weak numbers for Q2FY19

    Publish date: 05th November, 2018

    • Revenue was reported at Rs 7.14 bn (+1.3%) with strong growth in the decorative segment.
    • However, margins were impacted by increase in raw material cost, depreciation of rupee and Unfavorable sales mix.
    • EBIDTA was reported at Rs 654 mn (+2.7% YoY and -9.8% QoQ) with a sequential decline in margins
    • Consequently PAT was reported weak at Rs 365 mn vs. our expectation of Rs 449 mn
    • Would share more details on the results and our updated rating post interacting with the company today.

    Inventory pile –up of room ACs across the industry in Q1FY19 led to lower offtake of ACs from Amber which affected revenue and profits. However, the inventory has now been largely normalised. Hence, growth would be back on track.



    First impression: Vascon Engineers Ltd.

    Publish date: 1st November, 2018

    • Results have been below our expectation as the company reported lower revenue and higher losses in real estate segment
    • Consolidated Net Sales grew by 27.6% yoy as compared to our expectation of 25%, driven by higher growth in EPC segment
    • The company reported operating loss of Rs 69 mn as against our estimates of Rs 48 mn EBITDA on account of higher loss in real estate segment and below expected margins in EPC segment. Loss is real estate segment is primarily due to change in accounting standard (by adopting Ind AS 115). As a result, the company could not book revenue from under construction real estate projects while fixed cost attributed to the segment was accounted in the quarter. Also, there was no major contribution from completed project.
    • The company reported net loss of Rs 11 mn as against our estimates of Rs 17 mn PAT.
    • We will look for granular details in the company’s post concall with the management and would come out with detailed update note in Morning Insight.

    Inventory pile –up of room ACs across the industry in Q1FY19 led to lower offtake of ACs from Amber which affected revenue and profits. However, the inventory has now been largely normalised. Hence, growth would be back on track.



    Non-Banking Stocks : Q2 preview

    Publish date: 02nd November, 2018



    Banking Stocks : Q2 preview

    Publish date: 02nd November, 2018



    First impression: Indo Count Industries Ltd.

    Publish date: 02nd November, 2018

    • ICIL reported mixed results as the revenue was ahead of our estimates while PAT was below our estimates.
    • Standalone Net Sales grew by 7.4% yoy as compared to our expectation of 2% yoy decline.
    • EBITDA margin at 10.3% was inline with our estimates.
    • The company reported 39.4% yoy decline in PAT as against our estimates 14.4% decline due to negative other operating income.
    • We will look for granular details in the company’s post concall with the management and would come out with detailed update note in Morning Insight.

    Inventory pile –up of room ACs across the industry in Q1FY19 led to lower offtake of ACs from Amber which affected revenue and profits. However, the inventory has now been largely normalised. Hence, growth would be back on track.



    First impression: Amber Enterprises Ltd.

    Publish date: 1st November, 2018

    • Prima Facie, results have been below our expectations
    • Net Sales declined by 15% as compared to our expectation of 4% decline
    • EBITDA margins contracted sharply from 8.3% to 3.9% on YoY basis
    • As a result, the company reported a minor loss of Rs 17 mn (profit est of Rs 25 mn)
    • We will look for granular details in the company’s post result concall scheduled today evening and detailed note will follow after that.

    Inventory pile –up of room ACs across the industry in Q1FY19 led to lower offtake of ACs from Amber which affected revenue and profits. However, the inventory has now been largely normalised. Hence, growth would be back on track.



    First impression: Greaves Cotton Ltd.

    Publish date: 1st November, 2018

    • Prima Facie, results have been ahead of expectations
    • Net Sales grew by 9% in line with our expectations
    • EBITDA margins reported marginal drop from 15.0% to 14.8% on YoY basis
    • Net profit grew by 15% on YoY basis, ahead of our expectations (profit est of Rs 474 mn)
    • We will look for granular details in the company’s post result concall scheduled today evening and detailed note will follow after that.



    Non-Banking Stocks : Q2 preview

    Publish date: 01st November, 2018



    Banking Stocks : Q2 preview

    Publish date: 01st November, 2018



    First impression: Maharashtra Seamless.

    Publish date: 1st November, 2018

    • Results have been in line with our expectation
    • Net Sales grew by 45.3% as compared to our expectation of 48% growth.
    • EBITDA margins improved from 12.4% to 18.3% on YoY basis
    • Net profit increased by 162%% on YoY basis, in line with our expectations (profit est of Rs 900 mn)
    • We will look for granular details in the company’s post management interaction and detailed note will follow after that.



    First impression: Arvind Ltd.

    Publish date: 1st November, 2018

    • Q2FY19 results is broadly inline with estimates assuming branded apparel and engineering business as continued operation.
    • Consolidated Net Sales (on continued operation basis) grew by 11.6% as compared to our expectation of 9%, on higher revenue growth of 15% in garments business segment and 21% yoy in advance material business segment. Branded apparel (Arvind Fashions) grew at 13% yoy on like to like basis (adjusted for Ind AS changes).
    • EBITDA margins improved from 8% to 9.1% on YoY basis, our estimates was 8.7%.
    • Net profit was largely inline with our estimates, grew by 17.7% yoy to Rs 751 mn (on continued operation basis) as against our estimates was Rs 730 mn.
    • As per company PPT, Certified order from NCLT expected in 1st week of November 18 and expect the demerge to become effective by end of November 18 with 29th November likely to be the record date. Likely listing of Arvind Fashions & Anup Engineering is expected in early February 2019.
    • We will look for granular details in the company’s post concall with the management and would come out with detailed update note in Morning Insight.



    Berger Paints – Q2FY19, misses profit estimates

    Publish date: 1st November, 2018

    • Sales was reported at Rs 14.9 bn (+16.3% YoY) with strong volume growth in the decorative segment (80% of the revenue)
    • High cost inflation environment and weakness in the industrial segment led to EBIDTA margin declining by 160 bps YOY
    • Consequently PAT was reported at Rs 1.17 bn vs. our aggressive expectation of Rs 1.37 bn
    • It is important to note that Berger is one of the fastest growing paint companies in the last few quarters. Even for Q2FY19 Sales growth was the best and operating margin erosion was the lowest for the company compared to peers.
    • We would share more details post interacting with the company.



    Bluedart Q2FY19- Strong topline, bottom-line misses

    Publish date: 1st November, 2018

    • Bluedart has reported strong sales of Rs 7.98 bn (+13.5% YoY/+8.9% QoQ and expectation of Rs 7.41 bn) in an environment of weak trade, competitive environment but strong e-commerce growth.
    • We estimate the company to have reported double digit volume growth with significant contribution of the e-com segment. However, competition restrained the company’s ability to increase courier charges in a high fuel price environment which impacted the operational performance of the company.
    • EBIDTA was reported at Rs 402 mn (-47.6% YoY and -9.7% QoQ) with weak EBIDTA margin of 5%.
    • Consequently PAT was reported at Rs 210 mn vs. expectation of Rs 294 mn.
    • We interpret the numbers as weak in a constrained environment.
    • Would share more details on the results post interacting with the company today.



    First impression: Blue Star Ltd.

    Publish date: 31st October, 2018

    • Prima Facie, results have been marginally ahead of expectation
    • Net Sales grew by 18% as compared to our expectation of muted growth
    • EBITDA margins improved from 5.7% to 5.0% on YoY basis
    • Net profit declined by 15% on YoY basis, ahead of our expectations (profit est of Rs 169 mn)
    • We will look for granular details in the company’s post result concall scheduled today evening and detailed note will follow after that.



    Non-Banking Stocks : Q2 preview

    Publish date: 31st October, 2018



    Banking Stocks : Q2 preview

    Publish date: 31st October, 2018



    First impression: Cochin Shipyard Q2FY19- outperformance

    Publish date: 31st October, 2018

    Cochin Shipyard (COSH) has reported outperformance in all parameters in Q2FY19

    The performance was led by strong performance of the high margin ship-repair business which constituted 42.2% of the revenues (vs. 27.6% YoY)

    The company has reported its highest ever EBIDTA margin of 23.5% (+350 bps YoY) and PAT of Rs 1.48 bn (vs. expectation of 1.02 bn)

    We interpret the results as strong and have a BUY rating on the stock with a TP of Rs 520

    The company just completed a buyback of 3.23% of its equity or 4.4 mn shares at a price of 455 per share aggregating Rs 2 bn (with record date of 31st Oct)

    We would share more details post attending the concall scheduled tomorrow.



    First impression: Jindal Stainless Hisar

    Publish date: 31st October, 2018

    • Net sales during the quarter decline 5.1% YoY to Rs22.29 bn (up 4.5% QoQ) higher than estimates. Sequential jump in revenue was supported by ~7% increase in realisation. But the benefit of the same was partly offset by decline in sales volume.
    • EBITDA during the quarter declined 17.1%/8.7% YoY/QoQ to Rs2.3 bn, with an EBITDA margin of 10.3% (vs est of 10.9%). The dip in margin is attributed to increase in raw material costs (Nickel). EBITDA/T during the stood at Rs13,840/tonne (down Rs985/tonne QoQ)
    • PAT during the quarter came in at Rs616 mn vs est of Rs598 mn.
    • Will come out with the detail note, post the conference call which is likely to be schedule on Friday, 2nd November, 2018



    Non-Banking Stocks : Q2 preview

    Publish date: 30th October, 2018



    Banking Stocks : Q2 preview

    Publish date: 30th October, 2018



    First impression: Chennai Petroleum Ltd. (Earning volatility continues)

    Publish date: 30th October, 2018

    • Results have been below our expectation
    • Consolidated Net Sales grew by 22% qoq and 44% yoy to Rs.151 bn supported by higher crude throughput and weak rupee.
    • Implied GRMs stood lower at US$4.96/bbl as against US$7.11/bbl in Q1FY19 partly due to lower benchmark GRMs, we opine.
    • Despite 11% qoq and 10% yoy increase in crude throughput, CPCL’s consolidated PAT has declined by 85% qoq to Rs.236 mn. Net profit was below our estimates.
    • We will look for granular details after talking with the management and would come out with detailed update note in Morning Insight.

    First impression: Mahindra Holidays & Resorts India Ltd.

    Publish date: 30th October, 2018

    • Prima Facia, results have been below expectation
    • Standalone Net Sales (as per old AS) grew by 3.4% as compared to our expectation of 4.7%, on lower resort income
    • EBITDA margins declined from 22.6% to 19.8% on YoY basis, below our estimates of 22.2%.
    • Net profit was below of our estimates, grew by 0.7% as against our expectation of 8% yoy growth
    • New members addition grew by 4145 up 11.9% yoy (decent growth), occupancy rate lower due to Kerala Floods
    • We will look for granular details in the company’s post concall with the management and would come out with detailed update note in Morning Insight.

    First impression: Finolex Industries Ltd.

    Publish date: 30th October, 2018

    • Prima Facia, results have been above expectation
    • Consolidated Net Sales grew by 14.2% as compared to our expectation of 13.2%, driven by higher realization in pipes and resin business
    • EBITDA margins improved from 10.4% to 23% on YoY basis, ahead of our estimates of 13.5% on strong margin in resin business (based on favourable PVC-EDC spread & low cost inventory)
    • Net profit ahead of our estimates, grew by 170% as against our expectation of 55% growth on strong margins and lower interest expenses.
    • We will look for granular details in the company’s post concall with the management and would come out with detailed update note in Morning Insight.

    Non-Banking Stocks : Q2 preview

    Publish date: 29th October, 2018



    Banking Stocks : Q2 preview

    Publish date: 29th October, 2018

    Disclaimer - http://bit.ly/2n5AxIE


    First impression: Wonderla Holidays Ltd.

    Publish date: 29th October, 2018

    • Results have been below our expectation
    • Consolidated Net Sales de-grew by 16.4% yoy as compared to our expectation of 2.7% decline.
    • EBITDA margins declined from 22.4% to 21.9% on YoY basis, below our estimates of 22.5%
    • Net profit was below our estimates, declined by 59.7% as against our expectation of 33.4% yoy decline
    • Q2 is normally a lean quarter for the company. Further, floods in Kerala would have also affected the performance of Kochi park. We are awaiting more details.
    • We will look for granular details in the company’s post concall with the management and would come out with detailed update note in Morning Insight.

    CDSL: Q2 preview

    Result date: October 29, 2018

    Revenue during the quarter grew 17.4%/12.5% QoQ/YoY to Rs531 mn, higher than our estimate. Steep jump in revenue was driven by 35.9% /43.7% YoY/QoQ jump in data entry and storage revenue. Depository activity was up 9.2% sequentially.

    EBITDA during the quarter grew 13.9%33% YoY/QoQ to Rs342 mn, with an EBITDA margin of 64.3%, supported by strong revenue and 7.1% sequentially decline in other expenses

    Strong operating performance and higher than expected other income led to 17.2%/42.9% YoY/QoQ jump in PAT to Rs315 mn.

    First impression: Bharat Electronics Ltd.

    Publish date: 26th October, 2018

    • Prima Facie, results have been ahead of expectation
    • Net Sales grew by 35% as compared to our expectation of 15% growth
    • EBITDA margins improved from 24.5% to 26.0% on YoY basis
    • Net profit grew by 39% on YoY basis, ahead of our expectations (profit est of Rs 3394 mn)
    • We will look for granular details in the company and detailed note will follow after that.

    Non-Banking Stocks : Q2 preview

    Publish date: 26th October, 2018



    Banking Stocks : Q2 preview

    Publish date: 26th October, 2018

    Disclaimer - http://bit.ly/2n5AxIE


    First impression: Quess Corp Ltd.

    Publish date: 26th October, 2018

    • Prima Facie, Q2FY19 results have been below our expectation
    • Revenue grew by 50% yoy (26% organic growth) and 6% qoq to Rs.20.9 bn v/s our expectation of Rs.20.1 bn. Growth (yoy/qoq) spread across all five segments.
    • EBITDA margins improved from 5.2% to 5.4% on sequential basis due to better revenue mix. EBITDA grew by 42% yoy and 9% QoQ basis to Rs.1.12 bn (est. of Rs 1.2 bn)
    • Employee headcount increased by 32% yoy to 280,400
    • Net profit grew by 11% on qoq basis. PAT is not comparable on YoY due to tax benefit relating to an earlier period to the tune of Rs.670 mn in Q2FY18 and also due to disproportionate impact of certain non-operating accounting charge such as Amortization of Intangible Assets and Non-Controlling Interest Put Option.
    • Cash flow from Operations (OCF) stood at Rs.720 mn resulting in a 34% OCF/EBITDA conversion for H1FY19.
    • We will look for granular details in the company’s post result concall scheduled today and a detailed note will follow after that.

    Non-Banking Stocks : Q2 preview

    Publish date: 25th October, 2018



    Banking Stocks : Q2 preview

    Publish date: 25th October, 2018



    First impression: Praj Industries Ltd..

    Publish date: 25th October, 2018

    • Prima Facie, results have been ahead of expectation
    • Net Sales grew by 21% as compared to our expectation of muted growth
    • EBITDA margins improved from 4.7% to 5.5% on YoY basis
    • Net profit grew by 89% on YoY basis, ahead of our expectations (profit est of Rs 75 mn)
    • We will look for granular details in the company’s post result concall scheduled tomorrow evening and detailed note will follow after that.

    First impression: NIIT Ltd.

    Publish date: 25th October, 2018

    • Prima Facia, results have been above expectation
    • Net Sales grew by 9.6% as compared to our expectation of 7%
    • EBITDA margins improved from 7.8% to 9.8% on YoY basis, ahead of our estimates of 9.45%
    • We will look for granular details in the company’s post concall with the management and would come out with detailed update note in Morning Insight.

    Bharti Airtel: Q2 preview

    Result date: October 25, 2018

    As per Bloomberg consensus estimates, the market expects a 7% year-on-year (YoY) slowdown in consolidated sales to Rs 202,864 million in September 2018 quarter, down from Rs 217,769 million in the September 2017 quarter.

    The earnings before income tax, depreciation and amortization (EBITDA) is likely to dip 17% to Rs 65,461 million in the quarter-ended September 2018 as against Rs 79,220 million in the year-ago period.

    Profit after tax (PAT), meanwhile, is expected to plummet 277% to Rs 8,283 million in the red from Rs 4,680 million in the positive over the same time period.

    BHEL: Q2 preview

    Result date: October 25, 2018

    As per Bloomberg consensus estimates, the market expects a 12% year-on-year (YoY) growth in standalone sales to Rs 69,335 million in September 2018 quarter, up from Rs 61,684 million in the September 2017 quarter.

    The earnings before income tax, depreciation and amortization (EBITDA) is likely to fall 497% to Rs 954 million in losses in the quarter-ended September 2018 as against Rs 3,788 million in the year-ago period.

    Profit after tax (PAT), meanwhile, is expected to grow 95% to Rs 2,251 million from Rs 1,154 million over the same time period.

    Biocon: Q2 preview

    Result date: October 25, 2018

    As per Bloomberg consensus estimates, the market expects a 24% year-on-year (YoY) growth in consolidated sales to Rs 12,029 million in September 2018 quarter, up from Rs 9,686 million in the September 2017 quarter.

    The earnings before income tax, depreciation and amortization (EBITDA) is likely to rise 48% to Rs 2,705 million in the quarter-ended September 2018 as against Rs 1,823 million in the year-ago period.

    Profit after tax (PAT), meanwhile, is expected to grow 68% to Rs 1,156 million from Rs 688 million over the same time period.

    CEAT: Q2 preview

    Result date: October 25, 2018

    As per Bloomberg consensus estimates, the market expects a 14% year-on-year (YoY) growth in consolidated sales to Rs 17,374 million in September 2018 quarter, up from Rs 15,230 million in the September 2017 quarter.

    The earnings before income tax, depreciation and amortization (EBITDA) is likely to rise 5% to Rs 1,834 million in the quarter-ended September 2018 as against Rs 1,747 million in the year-ago period.

    Profit after tax (PAT), meanwhile, is expected to grow 9% to Rs 835 million from Rs 766 million over the same time period.

    Compton Greaves Consumer: Q2 preview

    Result date: October 25, 2018

    As per Bloomberg consensus estimates, the market expects an 11% year-on-year (YoY) growth in standalone sales to Rs 10,659 million in September 2018 quarter, up from Rs 9,597 million in the September 2017 quarter.

    The earnings before income tax, depreciation and amortization (EBITDA) is likely to rise 6% to Rs 1,274 million in the quarter-ended September 2018 as against Rs 1,207 million in the year-ago period.

    Profit after tax (PAT), meanwhile, is expected to grow 8% to Rs 765 million from Rs 708 million over the same time period.

    DB Corp: Q2 preview

    Result date: October 25, 2018

    As per Bloomberg consensus estimates, the market expects a 5% year-on-year (YoY) growth in consolidated sales to Rs 5,992 million in September 2018 quarter, up from Rs 5,683 million in the September 2017 quarter.

    The earnings before income tax, depreciation and amortization (EBITDA) is likely to fall 18% to Rs 1,196 million in the quarter-ended September 2018 as against Rs 1,456 million in the year-ago period.

    Profit after tax (PAT), meanwhile, is expected to dip by 20% to Rs 629 million from Rs 787 million over the same time period.

    Dish TV: Q2 preview

    Result date: October 25, 2018

    As per Bloomberg consensus estimates, the market expects a 121% year-on-year (YoY) growth in consolidated sales to Rs 16,534 million in September 2018 quarter, up from Rs 7,486 million in the September 2017 quarter.

    The earnings before income tax, depreciation and amortization (EBITDA) is likely to rise 245% to Rs 5,615 million in the quarter-ended September 2018 as against Rs 1,627 million in the year-ago period.

    Profit after tax (PAT), meanwhile, is expected to plummet 372% to Rs 179 million in the negative from Rs 486 million over the same time period.

    JSW Steel: Q2 preview

    Result date: October 25, 2018

    As per Bloomberg consensus estimates, the market expects a 22% year-on-year (YoY) growth in consolidated sales to Rs 202,441 million in September 2018 quarter, up from Rs 166,380 million in the September 2017 quarter.

    The earnings before income tax, depreciation and amortization (EBITDA) is likely to rise 53% to Rs 46,597 million in the quarter-ended September 2018 as against Rs 30,360 million in the year-ago period.

    Profit after tax (PAT), meanwhile, is expected to grow 142% to Rs 20,303 million from Rs 8,390 million over the same time period. 

    Maruti Suzuki India: Q2 preview

    Result date: October 25, 2018

    As per Bloomberg consensus estimates, the market expects a 4% year-on-year (YoY) growth in standalone sales to Rs 222,640 million in September 2018 quarter, up from Rs 214,381 million in the September 2017 quarter.

    The earnings before income tax, depreciation and amortization (EBITDA) is likely to fall 12% to Rs 32,364 million in the quarter-ended September 2018 as against Rs 36,775 million in the year-ago period.

    Profit after tax (PAT), meanwhile, is expected to decline by 17% to Rs 20,611 million from Rs 24,843 million over the same time period.

    PVR: Q2 preview

    Result date: October 25, 2018

    As per Bloomberg consensus estimates, the market expects an 18% year-on-year (YoY) growth in consolidated sales to Rs 6,540 million in September 2018 quarter, up from Rs 5,554 million in the September 2017 quarter.

    The earnings before income tax, depreciation and amortization (EBITDA) is likely to rise 26% to Rs 1,138 million in the quarter-ended September 2018 as against Rs 905 million in the year-ago period.

    Profit after tax (PAT), meanwhile, is expected to grow 37% to Rs 346 million from Rs 252 million over the same time period.

    Varuna Beverages: Q2 preview

    Result date: October 25, 2018

    As per Bloomberg consensus estimates, the market expects a 28% year-on-year (YoY) growth in consolidated sales to Rs 12,277 million in September 2018 quarter, up from Rs 9,598 million in the September 2017 quarter.

    The earnings before income tax, depreciation and amortization (EBITDA) is likely to rise 20% to Rs 2,225 million in the quarter-ended September 2018 as against Rs 1,854 million in the year-ago period.

    Profit after tax (PAT), meanwhile, is expected to grow 38% to Rs 464 million from Rs 337 million over the same time period.

    Bodal Chemicals: Q2 preview

    Result date: October 25, 2018

    As per PCG estimates, the market expects a 51% year-on-year (YoY) growth in consolidated sales to Rs 3,957 million in September 2018 quarter, up from Rs 2,625 million in the September 2017 quarter.

    The earnings before income tax, depreciation and amortization (EBITDA) is likely to rise 66% to Rs 772 million in the quarter-ended September 2018 as against Rs 465 million in the year-ago period.

    Profit after tax (PAT), meanwhile, is expected to grow 47% to Rs 384 million from Rs 262 million over the same time period.

    Kajaria Ceramics: Q2 preview

    Result date: October 25, 2018

    As per PCG estimates, the market expects a 6% year-on-year (YoY) growth in consolidated sales to Rs 7,115 million in September 2018 quarter, up from Rs 6,712 million in the September 2017 quarter.

    The earnings before income tax, depreciation and amortization (EBITDA) is likely to decline by 15% to Rs 1,032 million in the quarter-ended September 2018 as against Rs 1,220 million in the year-ago period.

    Profit after tax (PAT), meanwhile, is also expected to fall 20% to Rs 507 million from Rs 637 million over the same time period.

    NIIT Ltd: Q2 preview

    Result date: October 25, 2018

    As per PCG estimates, the market expects a 7% year-on-year (YoY) growth in consolidated sales to Rs 2,233 million in September 2018 quarter, up from Rs 2,084 million in the September 2017 quarter.

    The earnings before income tax, depreciation and amortization (EBITDA) is likely to rise 18% to Rs 210 million in the quarter-ended September 2018 as against Rs 177 million in the year-ago period.

    Profit after tax (PAT), meanwhile, is expected to grow 110% to Rs 267 million from Rs 127 million over the same time period.

    Praj Industries: Q2 preview

    Result date: October 25, 2018

    As per PCG estimates, the market expects a marginal 1% year-on-year (YoY) decline in consolidated sales to Rs 2,050 million in September 2018 quarter, down from Rs 2,079 million in the September 2017 quarter.

    The earnings before income tax, depreciation and amortization (EBITDA) is likely to rise 83% to Rs 123 million in the quarter-ended September 2018 as against Rs 67 million in the year-ago period.

    Profit after tax (PAT), meanwhile, is expected to grow 58% to Rs 75 million from Rs 47 million over the same time period.

    Guess Corp: Q2 preview

    Result date: October 25, 2018

    As per PCG estimates, the market expects a 44% year-on-year (YoY) growth in consolidated sales to Rs 20,051 million in September 2018 quarter, up from Rs 13,953 million in the September 2017 quarter.

    The earnings before income tax, depreciation and amortization (EBITDA) is likely to rise 56% to Rs 1,243 million in the quarter-ended September 2018 as against Rs 795 million in the year-ago period.

    Profit after tax (PAT), meanwhile, is expected to decline by 44% to Rs 831 million from Rs 1,483 million over the same time period.

    Results Update and Recommendation for 24th October

    Kansai Nerolac Paints Ltd

    Revenue growth (YoY): 11.1%

    2Q missed estimates

    Recommendation: BUY

    Target Price: Rs 485

    Why?

    Decorative segment remained strong and will remain strong in the medium term. Branded paint demand is expected to grow.

    |

    Asian Paints

    Revenue growth (YoY): 9%

    2Q missed estimates

    Recommendation: REDUCE

    Target Price: Rs 1,140

    Why?

    Poor margins, low-margin paints selling in higher volumes.

    |

    Bajaj Finserv

    Revenue growth (YoY): 151.26%

    2Q exceeded estimates

    Recommendation: ADD

    Target Price: Rs 5,650

    Why?

    Upgrade from ‘Reduce’ due to superior performance, recent stock correction

    |

    Bajaj Finance

    Revenue growth (YoY): 54%

    2Q exceeded estimates

    Recommendation: REDUCE

    Target Price: Rs 1,950

    Why?

    Borrowing cost rising, liquidity unlikely to be a problem. Rising loan yields.

    |

    HDFC Standard Life Insurance

    Revenue growth (YoY): 0.1% in US $

    2Q broadly in line with estimates

    Recommendation: ADD

    Target Price: Rs 380

    Why?

    Is the most profitable life insurance company.

    |

    Adani Ports and SEZ

    Revenue growth (YoY):18%

    2Q exceeded estimates

    Recommendation: BUY

    Target Price: Rs 390

    Why?

    Gaining market share. Increasing margins. Foreign borrowings have natural hedge due to container handling pricing in US $ and saves the company on interest costs.

    |

    ICICI Prudential Life

    Profit growth (YoY): 29% decline

    2Q missed estimates

    Recommendation: BUY

    Target Price: Rs 475

    Why?

    Lower growth, but higher margins.

    |

    Ambuja Cements

    Revenue growth (YoY): 13%

    2Q missed estimates

    Recommendation: REDUCE

    Target Price: Rs 195

    Why?

    Reduced margins. Expensive valuation.

    |

    TVS Motor

    Revenue growth (YoY): 0.1% in US $

    2Q missed estimates

    Recommendation: SELL

    Target Price: Rs 350

    Why?

    Weak half year likely. Further significant gain in market share is unlikely. Increasing costs likely to lead to smaller profits. Expensive valuation.

    |

    Oberoi Realty

    Revenue growth (YoY): 95%

    2Q missed estimates

    Recommendation: BUY

    Target Price: Rs 460

    Why?

    High margins and volume growth. Improved execution of projects.

    |

    HCL Technologies

    Revenue growth (YoY): 3% in constant currency

    2Q in line with estimates

    Recommendation: ADD

    Target Price: Rs 1,100

    Why?

    Underperformance on the share market and benefits from rupee depreciation makes reasonable returns likely.

    |

    RBL Bank

    Revenue growth (YoY): 40%

    2Q broadly in line with estimates

    Recommendation: ADD

    Gross NPLs stable at 1.4%

    Target Price: Rs 500

    Why?

    Solid overall performance. Growth from MFI business and improving margins. Recent underperformance of the stock makes valuation more attractive.

    |

    Bayer Cropscience: Results Update:

    Revenue growth (YoY): 10% decline

    2Q missed estimates

    Recommendation: SELL

    Target Price: Rs 3,550

    Why?

    Expensive valuation and drop in profits. Competitors are performing better and will hurt margins going forward.

    |

    First impression: Radico Khaitan Ltd.

    Publish date: 24th October, 2018

    • Prima Facia, results have been above expectation
    • Net Sales grew by 15.5% as compared to our expectation of 15.1%
    • EBITDA margins improved from 14.7% to 17.7% on YoY basis, ahead of our estimates of 16.1%
    • Net profit ahead of our estimates, grew by 73.2% as against our expectation of 53.8% growth (due to higher EBITDA margins and lower interest expenses)
    • We will look for granular details in the company’s post concall with the management and would come out with detailed update note in Morning Insight.

    Bharat Financial Inclusion: Q2 preview

    Publish date: 23rd October, 2018

    As per Bloomberg consensus estimates, the market expects a 31% year-on-year growth in standalone Net Interest Income (NII) to Rs 3,767 million in September 2018 quarter, up from Rs 2,874 million in the September 2017 quarter. Profit After Tax (PAT), meanwhile, is expected to grow 31% to Rs 1,569 million from Rs 1,194 million over the same time period.

    IDFC Bank: Q2 preview

    Publish date: 23rd October, 2018

    As per Bloomberg consensus estimates, the market expects an 8% year-on-year growth in standalone Net Interest Income (NII) to Rs 4,986 million in September 2018 quarter, up from Rs 4,619 million in the September 2017 quarter. Profit After Tax (PAT), meanwhile, is expected to decline 122% to Rs 513 million from Rs 2,337 million over the same time period.

    Kaur Vysya Bank: Q2 preview

    Publish date: 23rd October, 2018

    As per Bloomberg consensus estimates, the market expects an 8% year-on-year growth in standalone Net Interest Income (NII) to Rs 5,989 million in September 2018 quarter, up from Rs 5,550 million in the September 2017 quarter. Profit After Tax (PAT), meanwhile, is expected to grow 32% to Rs 999 million from Rs 757 million over the same time period.

    L&T Finance Holdings: Q2 preview

    Publish date: 23rd October, 2018

    As per Bloomberg consensus estimates, the market expects 35% year-on-year decline in standalone Net Interest Income (NII) to Rs 15,530 million in September 2018 quarter, down from Rs 23,838 million in the September 2017 quarter. Profit After Tax (PAT), meanwhile, is expected to grow 52% to Rs 5,491 million from Rs 3,602 million over the same time period.

    Mahindra & Mahindra Financial: Q2 preview

    Publish date: 23rd October, 2018

    As per Bloomberg consensus estimates, the market expects a 20% year-on-year growth in standalone Net Interest Income (NII) to Rs 10,957 million in September 2018 quarter, up from Rs 9,110 million in the September 2017 quarter. Profit After Tax (PAT), meanwhile, is expected to grow 288% to Rs 3,028 million from Rs 780 million over the same time period.

    First impression: Genus Power Ltd.

    Publish date: 23rd October, 2018

    • Prima Facie, results have been in line with expectation
    • 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 est of Rs 120 mn)
    • We will look for granular details in the company’s post result concall scheduled tomorrow evening and a detailed note will follow after that.

    First impression: Persistent Systems Limited

    Publish date: 22nd October, 2018

    • Net profit grew by 7% yoy and 1% qoq to Rs. 881 mn better than our expectation due to rupee benefit and lower operating cost sequentially.
    • EBITDA margins improved marginally to 17.18% from 16.79%/15.21% in Q1FY19/Q2FY18, respectively.
    • Net Sales (in INR terms) grew by 10% yoy but flat sequentially. In USD$ terms, Consolidated Revenue declined 4% qoq but flat yoy to US$118 mn due to decline in IP Led business.
    • Persistent wholly owned subsidiary Persistent Systems Inc has completed the acquisition of Herald Technologies Inc, a US-based healthcare start-up on August 24, 2018 and the second quarter results also include business from Herald.
    • As of September 30, 2018, Persistent had deposits of Rs 430 mn with Infrastructure Leasing & Financial Services Ltd (IL&FS) and IL&FS Financial Services Ltd. These are due for maturity from January 2019 to June 2019. As of September 30, 2018, there have been no defaults in payment of interest on the aforesaid deposits. The company management believes that there is no immediate need to recognize any impairment on these deposits.

    Bajaj Corp Ltd: Q2 preview

    Result date: October 23, 2018

    As per Bloomberg consensus estimates, the market expects a 11% year-on-year (YoY) growth in standalone sales to Rs 2,264 million in September 2018 quarter, up from Rs 2,041 million in the September 2017 quarter.

    The earnings before income tax, depreciation and amortization (EBITDA) is likely to rise 13% to Rs 662 million in the quarter-ended September 2018 as against Rs 583 million in the year-ago period.

    Profit after tax (PAT), meanwhile, is expected to grow 7% to Rs 541 million from Rs 501 million over the same time period.

    Adani Port and Special Economic Zone: Q2 preview

    Result date: October 23, 2018

    As per Bloomberg consensus estimates, the market expects a 6% year-on-year (YoY) slowdown in consolidated sales to Rs 25,332 million in September 2018 quarter, up from Rs 27,061 million in the September 2017 quarter.

    The earnings before income tax, depreciation and amortization (EBITDA) is likely to dip 15% to Rs 15,915 million in the quarter-ended September 2018 as against Rs 18,632 million in the year-ago period.

    Profit after tax (PAT), meanwhile, is expected to decline 28% to Rs 7,130 million from Rs 9,921 million over the same time period.

    TVS Motor: Q2 preview

    Result date: October 23, 2018

    As per Bloomberg consensus estimates, the market expects a 20% year-on-year (YoY) growth in standalone sales to Rs 48,663 million in September 2018 quarter, up from Rs 40,524 million in the September 2017 quarter.

    The earnings before income tax, depreciation and amortization (EBITDA) is likely to rise 10% to Rs 3,861 million in the quarter-ended September 2018 as against Rs 3,503 million in the year-ago period.

    Profit after tax (PAT), meanwhile, is expected to decline 4% to Rs 2,047 million from Rs 2,132 million over the same time period.

    Bajaj Finserv: Q2 preview

    Result date: October 23, 2018

    As per Bloomberg consensus estimates, the market expects a 47% year-on-year (YoY) growth in consolidated sales to Rs 94,766 million in September 2018 quarter, up from Rs 64,490 million in the September 2017 quarter.

    Profit after tax (PAT), meanwhile, is expected to grow 52% to Rs 9,939 million from Rs 6,523 million over the same time period.

    Bayer CropScience: Q2 preview

    Result date: October 23, 2018

    As per Bloomberg consensus estimates, the market expects a 8% year-on-year (YoY) growth in standalone sales to Rs 13,326 million in September 2018 quarter, up from Rs 12,320 million in the September 2017 quarter.

    The earnings before income tax, depreciation and amortization (EBITDA) is likely to rise 13% to Rs 3,259 million in the quarter-ended September 2018 as against Rs 2,875 million in the year-ago period.

    Profit after tax (PAT), meanwhile, is expected to grow 10% to Rs 2,103 million from Rs 1,906 million over the same time period.

    Rallis India: Q2 preview

    Result date: October 23, 2018

    As per Bloomberg consensus estimates, the market expects a 16% year-on-year (YoY) growth in consolidated sales to Rs 6,836 million in September 2018 quarter, up from Rs 5,879 million in the September 2017 quarter.

    The earnings before income tax, depreciation and amortization (EBITDA) is likely to rise 7% to Rs 1,316 million in the quarter-ended September 2018 as against Rs 1,225 million in the year-ago period.

    Profit after tax (PAT), meanwhile, is expected to grow 9% to Rs 844 million from Rs 774 million over the same time period.

    HCL Technologies: Q2 preview

    Result date: October 23, 2018

    As per Bloomberg consensus estimates, the market expects a 19% year-on-year (YoY) growth in consolidated sales to Rs 147,480 million in September 2018 quarter, up from Rs 123,944 million in the September 2017 quarter.

    The earnings before income tax, depreciation and amortization (EBITDA) is likely to rise 23% to Rs 33,950 million in the quarter-ended September 2018 as against Rs 27,502 million in the year-ago period.

    Profit after tax (PAT), meanwhile, is expected to grow 12% to Rs 24,331 million from Rs 21,806 million over the same time period.

    Ambuja Cements: Q2 preview

    Result date: October 23, 2018

    As per Bloomberg consensus estimates, the market expects a 53% year-on-year (YoY) slowdown in consolidated sales to Rs 25,025 million in September 2018 quarter, up from Rs 53,769 million in the September 2017 quarter.

    The earnings before income tax, depreciation and amortization (EBITDA) is likely to dip 48% to Rs 4,019 million in the quarter-ended September 2018 as against Rs 7,728 million in the year-ago period.

    Profit after tax (PAT), meanwhile, is expected to grow 4% to Rs 2,716 million from Rs 2,606 million over the same time period.

    Zensar Technologies: Q2 preview

    Result date: October 23, 2018

    As per PCG estimates, the market expects a 28% year-on-year (YoY) growth in consolidated sales to Rs 9,781 million in September 2018 quarter, up from Rs 7,626 million in the September 2017 quarter.

    The earnings before income tax, depreciation and amortization (EBITDA) is likely to rise 38% to Rs 1,223 million in the quarter-ended September 2018 as against Rs 885 million in the year-ago period.

    Profit after tax (PAT), meanwhile, is expected to grow 55% to Rs 969 million from Rs 626 million over the same time period.

    Bajaj Finance: Q2 preview

    Result date: October 23, 2018

    As per Bloomberg consensus estimates, the market expects a 40% year-on-year growth in standalone Net Interest Income (NII) to Rs 27,270 million in September 2018 quarter, up from Rs 19,425 million in the September 2017 quarter. Profit After Tax (PAT), meanwhile, is expected to grow 56% to Rs 8,703 million from Rs 5,569 million over the same time period.

    RBL Bank: Q2 preview

    Result date: October 23, 2018

    As per Bloomberg consensus estimates, the market expects a 38% year-on-year growth in standalone Net Interest Income (NII) to Rs 5,808 million in September 2018 quarter, up from Rs 4,202 million in the September 2017 quarter. Profit After Tax (PAT), meanwhile, is expected to grow 36% to Rs 2,054 million from Rs 1,506 million over the same time period.

    IndusInd Bank: Q2 preview

    Publish date: 14th October, 2018

    As per Bloomberg’s Consensus estimate, the market expects a 23% year-on-year growth in standalone Net Interest Income (NII) to Rs 22,450 million in September 2018 quarter, up from Rs 18,210 million the September 2017 quarter. Profit After Tax (PAT), meanwhile, is expected to grow 25% to Rs 10,980 million from Rs 8,801 million over the same time period.


        


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