Q4FY19 revenue increased 4% y-o-y (+17% q-o-q) to Rs 16.8b (v/s est. of Rs 16.5b). Cement volumes stood at 1.75mt (+5% y-o-y) implying 100% utilisation, while cement realisations increased 0.5% y-o-y, led by stronger prices i
SA deposits continued growing strongly by 22% y-o-y (SA cost of 5.66%). Core deposit mix (CASA + TD < Rs 50 m) stood at 81% of total deposits. CASA mix improved to 52.5% (+180bp q-o-q) .
For FY19, total premium/PAT grew 23.8/13.1% y-o-y to Rs 289/12.5 bn. For FY19, the share of the protection business increased to 16.7% of total APE (7% on an individual APE basis).
Management’s expectation, in pre-quarterly update for Q4FY19 (and FY19), of further 20% sales growth in FY20 shows that all segments are doing well; ‘Buy’ retained.
Implementation of the Real Estate (Regulation and Development) Act (RERA), 2016, also brought about a paradigm shift in the construction sector, making it transparent.
The strength of the ‘Godrej’ brand and its association with trust, quality and reliability helps the company across segments, particularly in those involving direct sales to retail consumers.
We value JSWE on an SOTP basis; the long-term PPA capacities on DCF and merchant capacities at `0.4 crore/MW. The target price is raised to `77/share, on lower net debt. Maintain ‘neutral’.
A small short-term blip was seen in the Q4FY19 demand. But, we had already built in an 8% volume growth for Q4FY19 v/s a double-digit growth of the preceding five quarters.
