Adjusted FY20 book falls 15-25%, assuming a Rs 70-130 bn write-off; subsequent dilutions at low prices to also have impact
We note that SUN’s 2-year ad revenue CAGR for Q3FY18 at 5% is significantly lower than Zee’s (Z IN) at 15% CAGR
Glenmark’s Q3FY18 operating performance was lower than our estimates. Net revenues at `22 bn were down 13% y-o-y, 0.8% lower than our expectations.
Titan’s Q3FY18 results were marginally below our and the consensus expectations, which is a departure from the trend which has prevailed in the past 4-5 quarters.
Higher employee expenses will pressurise near-term EBITDA margins: Concor has implemented 3rd Pay Commission-related wage hikes, which we expect will lead to an adverse impact of 70-80bps on a recurring basis.
HDFC did not sell down any loans to HDFC Bank during the quarter due to GST-related issues, but the same will normalise from Q4FY18F onwards. Corporate book growth was weak at 15% y-o-y and despite that stable q-o-q spreads was a positive outcome.
Wipro posted revenue growth below estimates and internals do not give a reason to change our cautious stance, with: (i) slower developed market growth vs. peers (flat y-o-y in US, < 5% y-o-y in EU despite decent q-o-q traction); (ii) slow y-o-y growth in verticals (ex of BFSI); (iii) y-o-y growth in Digital slowed to 22% y-o-y (vs. 39% in Q4FY17) and Legacy grew ~1%; (iv) weakest exit growth in 4QF at 3% y-o-y (vs. 6-9% at peers), will make material acceleration difficult and growth differentials with peers might persist in FY19F...
The Q3 results still did not indicate revenue acceleration, but the key positives are: (i) Traffic growth still strong at 34% y-o-y despite some pullback in ads; (ii) Realisations showing upward trajectory on entry level price hikes, staying away from discounts and selling bundled products; (iii) Ops still tightly managed, resulting in a nine-quarter-high Ebitda margin at 23.7% (up 940bps y-o-y).
HCLT Q3 was ahead of expectation on revenue growth and reduces investor concerns on achievement of full-year growth guidance.
Recent order wins suggest growing momentum at Andhra capital, with trends likely to accelerate in FY19; L&T walking talk on plans; top pick in industrial sector
Bharti Airtel (Bharti) announced that an affiliate of Warburg Pincus will acquire up to a 20 % equity stake in Bharti Telemedia (DTH arm of Bharti) for $350 million. The 20 % stake in Telemedia will include 15 % out of Bharti’s 95% holding in the company, ie, after the deal closure, Bharti will own […]
Axis bank’s asset quality performance has been poor in the last six quarters and Q2FY18 disclosures on quantum of BB and below exposure were negative.
Order inflows for Class 8 trucks in North America (NA) remained strong, up 71% y-o-y (-9% m-m) to 32,400 units in November-17, according to preliminary data from Freight Transportation Research (FTR). While November is usually a slower month compared to October, our seasonally adjusted rate (SAAR) is still higher by ~4% m-m, indicating healthy orders. […]
TRx data shows trends for key products; Cadila and Natco see good response to gTamiflu; gains for some of Glenmark launches limited
We hosted Zee Entertainment (Z IN) management at our India Corporate Day in Hong Kong. Management highlighted that advertisement spending continues to be healthy and maintained mid-teens growth for Z ad spending in H2FY18.
Earnings estimates down 31/25% for FY18/19F; expect 32% earnings CAGR over FY17-20F; TP reduced to 1,307 from 1,505
Revenue estimates cut to 10% CAGR over FY17-19F; TP up to Rs 635 from Rs 590
PNC’s execution was weaker than our estimate in 2QFY18, as revenue declined 25% y-o-y on delayed appointed dates and the early stages of execution of stalled projects hit revenue recognition
At Rs 15.9 billion (+8% y-o-y), Tata Power’s (TPWR’s) Ebitda was marginally below our/consensus forecast.
The government’s recapitalisation package takes care of not only provisioning needs but also growth capital; banks expected to see a re-rating; PNB likely to benefit the most.
IHFL reported 2Q PAT of Rs 8.6 bn, in line with our expectation. AUM growth held up well at 33% y-o-y, with mortgages growing at 3% y-o-y. IHFL was also able to hold up NIM better than our expectation, as it bridges the gap between its borrowing cost vs. top HFCs.
Exide’s strong 23% y-y revenue growth benefited from strong volume growth in automotive and motorcycle batteries and encouraging growth in UPS, telecom other infrastructure segments, as per management.
Insurance individual APE grew by 21% y-o-y, with ~30% y-o-y growth for private insurers and ~10% y-o-y growth for LIC.
MFI business is much more attractive in a bank if managed well: IIB had always been positive on MFI businesses; it has an Rs 29 billion MFI portfolio which it guided to ramp-up to Rs 100 billion in 3-4 years.
The savings account (SA) rate cut (Aug-17) of 50 bps should help net off some NIM pressure, but core PPOP growth is unlikely to surprise positively.
Future Retail recently announced the acquisition of HyperCity, one of India’s leading food & grocery retailers.
Only a few companies have reported September 2017 volumes thus far. Volumes in the festive season have been largely good, as highlighted in our preview note.