While margin levers such as automation and off-shoring remain, we believe FY20 margin will be lower than FY19 owing to higher costs incurred due to deal ramp-ups and a slow start to the year (H1FY20 margin down 210bps y-o-y).
The ongoing economic slowdown dragged toll collection in the BOT portfolio by 2% y-o-y. Incremental order-wins, ramp-up in execution, and conclusion of the BOT stake sale process is key to stock performance in our view.
In our view, given the potentially dire repercussions of AGR liabilities, the government may intervene, but the nature of its solution/support has wide-ranging possibilities and, given Idea’s leverage, the impact thereof co
During Q2FY20, NTPC’s generation declined by 6.5%, in line with the industry’s decline. Management attributed weaker generation primarily to the tepid economic activity in the country and hence lacklustre demand, apart fr
While benign RM costs led to 257bps y-o-y gross margin expansion, initial factory costs and ad spends jumped—staff and other expenses up 16.3% and 20.7% y-o-y, respectively – resulting in Ebitda growing mere 60bps y-o-y.
While asset quality can be volatile ahead, we believe steps taken to de-risk strategy, strengthen liability and operating efficiency can help Axis turn in an RoE of 15–16% (even after recent equity raising).