Persistent Systems’ (Persistent’s) Q1FY15 result was another soft quarter compared to PLe/Consensus’ expectation. We see weak start to the year and near term headwinds to operating margin to restrict upside.
Blue Star Infotech Q1FY15: Revenues grow 13% y-o-y; Positive outlookIndiaNotes.com
Blue Star reported Q1FY15 numbers in line with our expectations. Revenues for the quarter have grown by 13% YoY; EBIDTA margins went down by 180 bps YoY. Nirmal Bang continues to be positive about the stock and recommends buy for long term.
Stantec is a design consulting firm with over 15,000 employees in over 250 locations worldwide. It provides professional consulting services in planning, engineering, infrastructure and energy/resources. The document analyzes Stantec's business operations, industry and competitive landscape, financial performance, valuation using a discounted cash flow model, risks, and recommends a "hold" position with a 12-month target price of $34.1, an 8.8% upside from the current price. Key risks include operational, market, integration and commodity risks.
The document provides an analyst briefing on the 1st quarter 2014 financial results of Alliance Financial Group. Some key points:
- Net income grew 14% to RM364.2 million driven by an 11.9% increase in net loans. However, net interest margins continue to be under pressure.
- Non-interest income increased 52.8% to RM125.9 million, with the non-interest income ratio at 35.4%. This was contributed to by a one-off bancassurance fee but also growing recurring fee income.
- Asset quality remains strong with net impaired loans at 1.1% and loan loss coverage at 84.7%. Overall the company is progressing well against its 3-
The document provides an analysis of Churchill Downs Incorporated (CHDN) and recommends a HOLD position. It summarizes CHDN's business operations, competitive environment, financial performance, and valuation. The fair value range is estimated to be $88-92, and the current stock price of $91.25 falls within this range. While gaming legislation in Kentucky and Illinois could provide growth opportunities, there is uncertainty around CHDN's diversification strategy and future gaming regulations. For these reasons, the analyst recommends a HOLD on CHDN.
This document summarizes the results of the 2014 ASEAN Business Outlook Survey conducted in cooperation with the U.S. Chamber of Commerce and AmCham Singapore. The survey polled over 500 companies across 11 countries and territories in ASEAN regarding business conditions, opportunities, challenges and outlook. Key findings include that a majority of companies see ASEAN markets as more important and expect profits to increase in 2014. Top opportunities for business expansion were seen in Indonesia, Vietnam and Thailand, while monetary and resource constraints were the biggest barriers to business. Regional integration was viewed as important with hopes that the ASEAN Economic Community will enable seamless operations across ASEAN.
The corporate presentation discusses PFSweb's financial performance and outlook. It provides key metrics such as service fee equivalent revenue, which was $185.3 million in 2015 and is projected to be $225 million in 2016. Adjusted EBITDA was $20.7 million in 2015 and is estimated to be $22.5 million in 2016. The presentation also outlines PFSweb's business segments and global operations across major eCommerce platforms. It positions the company as the only global provider of end-to-end eCommerce solutions and discusses how strategic acquisitions have expanded its total addressable market.
The document examines how the top performing upstream oil and gas companies are able to deliver higher returns on capital employed compared to their peers. It analyzes 74 of the largest global oil and gas companies based on data from 2006-2012. The top performers significantly outperformed the industry average, achieving a 38% return on capital employed versus 21% for the industry. The key differentiators of the top companies were selectivity in capital investment rather than velocity of spending, higher capital productivity through generating more revenue per dollar invested, and a strong focus on operating excellence through lower production costs. While the top companies demonstrated a positive relationship between returns and pursuit of growth, capital productivity was declining across the industry as exploration moved to more challenging areas.
The document provides an overview of the company's financial results for the year ended 31 December 2014. Key points include:
- Profit before tax was $261.9m, down 16% from 2013, with a combined ratio of 89% and gross premiums written up 3% to $2,021.8m.
- The dividend per share was increased to 9.3p for the full year with a special dividend of 11.8p.
- Prior year reserve releases were $158.1m and net investment income was $83.0m.
- The underwriting review showed growth in the US platform and a 2% rate reduction on renewals.
Blue Star Infotech Q1FY15: Revenues grow 13% y-o-y; Positive outlookIndiaNotes.com
Blue Star reported Q1FY15 numbers in line with our expectations. Revenues for the quarter have grown by 13% YoY; EBIDTA margins went down by 180 bps YoY. Nirmal Bang continues to be positive about the stock and recommends buy for long term.
Stantec is a design consulting firm with over 15,000 employees in over 250 locations worldwide. It provides professional consulting services in planning, engineering, infrastructure and energy/resources. The document analyzes Stantec's business operations, industry and competitive landscape, financial performance, valuation using a discounted cash flow model, risks, and recommends a "hold" position with a 12-month target price of $34.1, an 8.8% upside from the current price. Key risks include operational, market, integration and commodity risks.
The document provides an analyst briefing on the 1st quarter 2014 financial results of Alliance Financial Group. Some key points:
- Net income grew 14% to RM364.2 million driven by an 11.9% increase in net loans. However, net interest margins continue to be under pressure.
- Non-interest income increased 52.8% to RM125.9 million, with the non-interest income ratio at 35.4%. This was contributed to by a one-off bancassurance fee but also growing recurring fee income.
- Asset quality remains strong with net impaired loans at 1.1% and loan loss coverage at 84.7%. Overall the company is progressing well against its 3-
The document provides an analysis of Churchill Downs Incorporated (CHDN) and recommends a HOLD position. It summarizes CHDN's business operations, competitive environment, financial performance, and valuation. The fair value range is estimated to be $88-92, and the current stock price of $91.25 falls within this range. While gaming legislation in Kentucky and Illinois could provide growth opportunities, there is uncertainty around CHDN's diversification strategy and future gaming regulations. For these reasons, the analyst recommends a HOLD on CHDN.
This document summarizes the results of the 2014 ASEAN Business Outlook Survey conducted in cooperation with the U.S. Chamber of Commerce and AmCham Singapore. The survey polled over 500 companies across 11 countries and territories in ASEAN regarding business conditions, opportunities, challenges and outlook. Key findings include that a majority of companies see ASEAN markets as more important and expect profits to increase in 2014. Top opportunities for business expansion were seen in Indonesia, Vietnam and Thailand, while monetary and resource constraints were the biggest barriers to business. Regional integration was viewed as important with hopes that the ASEAN Economic Community will enable seamless operations across ASEAN.
The corporate presentation discusses PFSweb's financial performance and outlook. It provides key metrics such as service fee equivalent revenue, which was $185.3 million in 2015 and is projected to be $225 million in 2016. Adjusted EBITDA was $20.7 million in 2015 and is estimated to be $22.5 million in 2016. The presentation also outlines PFSweb's business segments and global operations across major eCommerce platforms. It positions the company as the only global provider of end-to-end eCommerce solutions and discusses how strategic acquisitions have expanded its total addressable market.
The document examines how the top performing upstream oil and gas companies are able to deliver higher returns on capital employed compared to their peers. It analyzes 74 of the largest global oil and gas companies based on data from 2006-2012. The top performers significantly outperformed the industry average, achieving a 38% return on capital employed versus 21% for the industry. The key differentiators of the top companies were selectivity in capital investment rather than velocity of spending, higher capital productivity through generating more revenue per dollar invested, and a strong focus on operating excellence through lower production costs. While the top companies demonstrated a positive relationship between returns and pursuit of growth, capital productivity was declining across the industry as exploration moved to more challenging areas.
The document provides an overview of the company's financial results for the year ended 31 December 2014. Key points include:
- Profit before tax was $261.9m, down 16% from 2013, with a combined ratio of 89% and gross premiums written up 3% to $2,021.8m.
- The dividend per share was increased to 9.3p for the full year with a special dividend of 11.8p.
- Prior year reserve releases were $158.1m and net investment income was $83.0m.
- The underwriting review showed growth in the US platform and a 2% rate reduction on renewals.
This document contains performance data and financial analysis for Algorithm company from 2017-2021. It provides quarterly sales, profit, debt, and other metrics. It also includes the company's stock price history and probability of price increases. The document evaluates Algorithm as a normal investment and suggests purchasing 137 shares at the current price. It notes that the accuracy of analysis can change over time and the user is responsible for investment decisions.
This document discusses current issues in energy network regulation in Australia. It focuses on capital expenditure forecasts and incentives, the weighted average cost of capital and the global financial crisis, and institutional governance arrangements. Specifically, it examines challenges in forecasting capital expenditures, issues with existing incentives, and potential alternative incentive schemes used internationally to better incentivize efficient capital spending.
Ratio analysis on Pharmaceutical Companies: A study of BangladeshAL Babur Rahman
In this study, we analyzed 7 Pharmaceutical companies of Bangladesh to Measure their profitability, liquidity to Indicate overall efficiency and Determine financial solvency.
The document discusses a case study examining the potential return on investment of implementing a web-based customer portal for B&K Distributors. It finds the projected 5-year internal rate of return would be 40.6%, significantly higher than the 12% without the portal. However, the analysis notes many assumptions around growth projections and recommends conducting sensitivity analysis on factors like market share increases, technical issues, and technological advancements that could impact returns. While carrying risks, the group recommends moving forward with the portal due to significant upside potential if managed correctly after implementation.
The document discusses current issues in energy network regulation in Australia. It covers capital expenditure forecasts and incentives, the weighted average cost of capital and how it was impacted by the global financial crisis, and institutional governance arrangements. Specific issues examined include challenges in forecasting capital expenditures, developing better tools and techniques for testing forecasts, using incentives to encourage accurate forecasts, and determining the cost of debt during periods of financial crisis when usual benchmarks are disrupted.
The document describes a proprietary screen called Yield Leaders that ranks stocks based on their shareholder yield, which is the sum of the annual dividend yield and percentage of shares bought back over the past year. The screen provides a list of companies that aggressively return cash to shareholders through dividends and share buybacks. The top ranked stocks on the August 12, 2016 list are shown along with their shareholder yield and other relevant data.
EPIC RESEARCH SINGAPORE - Daily SGX Singapore report of 20 April 2015Epic Research Singapore
Epic Research Singapore have best technical research team, Our research team provide Daily report on SGX Singapore and SGX Exchange, You can get Daily Favorable Tips & future Strategy for SGX Stocks Market.
This document contains performance data and analysis of an algorithm company over several periods from 2017-2020. It includes key financial metrics like sales, operating profit, net income, debt ratios, and stock prices. It also provides probability scores for the company's stock price rising and charts these scores over time. The document evaluates the company's current stock price compared to indication prices and provides strategies for purchasing the company's stocks.
This document contains performance data and financial metrics for an algorithm company over several periods from 2018-2021. It also includes the company's current stock price, an indication of the stock's estimated price range, and analysis of the stock's probability of rising in price. Recommendations are provided on purchasing additional shares of the company's stock. Compliance disclosures are included, noting that the analysis is for reference only and users are responsible for their own investment decisions.
Idea Cellular Ltd. Q2 FY16 Result First Cut choice broking
Idea Cellular reported quarterly results that were largely in line with estimates. Consolidated net sales were 1.7% higher than expected at Rs. 86,765.8 million, driven by higher value-added services revenue. Consolidated EBITDA of Rs. 30,526.3 million and reported PAT of Rs. 7,873.3 million also met estimates. However, key operating metrics like voice revenue, minutes of usage, and data ARPU declined sequentially, leading to a 5.3% quarter-on-quarter drop in EBITDA and 13.1% fall in reported PAT. The brokerage maintains a "Buy" rating on Idea Cellular.
This document analyzes the corporate financial performance of two international companies in Bangladesh - British American Tobacco Bangladesh (BAT) and GlaxoSmithKline plc (GSK) Bangladesh in 2017. It provides an overview of each company and analyzes their financial performance using various ratios such as profit margin, asset turnover, current ratio, debt-to-equity ratio, return on assets, return on equity, earnings per share and dividend payout ratio. The analysis finds that while both companies were profitable in 2017, GSK generally had better financial performance than BAT according to most ratio measures.
AmCham Taipei 2016 Business Climate Survey - Full results Jan 19Gordon Stewart
- The survey found that 67% of companies were profitable in 2015, similar to previous years. However, forecasts for 2016 show a slight expected decline in revenues and profits.
- Investment levels are expected to remain unchanged or decrease slightly in 2016 after recovering in past years.
- Optimism in the 5-year business outlook dropped sharply from 60% to 47%, tracking a decline in Taiwan's GDP growth and raising concerns.
- The top issues impacting businesses are outdated laws, inconsistent regulations, declining domestic demand, bureaucracy, and lack of notice on legal changes.
This document provides a summary of financial performance and stock price indicators for an unnamed company over several periods between 2017-2021. It includes metrics like sales, operating profit, net income, debt ratios, and stock prices. It also analyzes the company's stock price against indication price ranges, and provides strategies for purchasing stocks within different price ranges. Overall, it uses financial data and algorithms to evaluate the company's performance and recommend investment strategies.
The document provides an overview of a company's financial results for the six months ended 30 June 2014. Key points include a profit before tax of $132.9m, a combined ratio of 90%, and prior year reserve releases of $72.9m. Gross written premiums increased 1% to $1,077.7m. The interim dividend was increased 7% to 3.1p. Specialty lines achieved a 1% rate increase on renewal business and $16.6m in prior year reserve releases.
The document provides an overview of the company's financial results for the year ended 31 December 2013. Key highlights include:
- Profit before tax increased 25% to $313.3 million.
- Gross written premiums grew 4% to $1,970.2 million.
- The combined ratio improved to 84% from 91% the prior year.
- A special dividend of 16.1p per share was declared, in addition to the regular dividend of 8.8p per share.
- The underwriting performance was strong across all divisions with prior year reserve releases and rate increases achieved.
Data were collected by The Survey Shop in June 2010. A total of 406 interviews were conducted by telephone using quota sampling. Respondents were qualified as owners, managers and decision-makers, and the data are representative of SMEs in UK and Ireland.
The document discusses extracting information from text. It focuses on identifying key elements and summarizing them concisely while retaining the most important details and concepts from the original text in 3 sentences or less.
How do you invest when valuations are high? What are the parameters that an investor needs to consider before he decides to invest? Explore the deck where Sorbh Gupta, Fund Manager, Equity, Quantum Mutual Fund answers these questions & more.
www.Quantumamc.com
Chase Corporation is a leading manufacturer of protective materials for high-reliability applications. It has a highly experienced management team and a track record of executing initiatives to grow organically and through acquisitions. Chase aims to be recognized as a trusted partner providing effective product solutions and to create long-term shareholder value through risk management and sustainable practices.
Hexaware Technologies' margins have troughed as investments made over the last three quarters eroded EBITDA margins by 713 basis points. The analyst expects margins to bottom out in Q3CY14 at 16% and then improve steadily through CY15. Revenue growth is expected to improve to high single digits in CY14 and mid-teens growth in CY15, accelerating on new deal wins. The analyst upgrades Hexaware to "Accumulate" and raises the target price to Rs160, citing bottoming margins and steady improvement, as well as revenue momentum acceleration in CY15.
- KSB Pumps reported flat profits for the quarter despite a 5.7% rise in sales, due to weaker margins from an unfavorable product mix and losses in the valve segment.
- While the pump segment grew sales by 5.7%, the valve segment returned to growth after four declining quarters but reported losses.
- Margins declined due to high prior year margins providing a tough comparison and costs rising faster than revenues.
- The analyst maintains a 'Buy' rating, expecting the company to benefit from an industrial recovery and its diverse portfolio.
This document contains performance data and financial analysis for Algorithm company from 2017-2021. It provides quarterly sales, profit, debt, and other metrics. It also includes the company's stock price history and probability of price increases. The document evaluates Algorithm as a normal investment and suggests purchasing 137 shares at the current price. It notes that the accuracy of analysis can change over time and the user is responsible for investment decisions.
This document discusses current issues in energy network regulation in Australia. It focuses on capital expenditure forecasts and incentives, the weighted average cost of capital and the global financial crisis, and institutional governance arrangements. Specifically, it examines challenges in forecasting capital expenditures, issues with existing incentives, and potential alternative incentive schemes used internationally to better incentivize efficient capital spending.
Ratio analysis on Pharmaceutical Companies: A study of BangladeshAL Babur Rahman
In this study, we analyzed 7 Pharmaceutical companies of Bangladesh to Measure their profitability, liquidity to Indicate overall efficiency and Determine financial solvency.
The document discusses a case study examining the potential return on investment of implementing a web-based customer portal for B&K Distributors. It finds the projected 5-year internal rate of return would be 40.6%, significantly higher than the 12% without the portal. However, the analysis notes many assumptions around growth projections and recommends conducting sensitivity analysis on factors like market share increases, technical issues, and technological advancements that could impact returns. While carrying risks, the group recommends moving forward with the portal due to significant upside potential if managed correctly after implementation.
The document discusses current issues in energy network regulation in Australia. It covers capital expenditure forecasts and incentives, the weighted average cost of capital and how it was impacted by the global financial crisis, and institutional governance arrangements. Specific issues examined include challenges in forecasting capital expenditures, developing better tools and techniques for testing forecasts, using incentives to encourage accurate forecasts, and determining the cost of debt during periods of financial crisis when usual benchmarks are disrupted.
The document describes a proprietary screen called Yield Leaders that ranks stocks based on their shareholder yield, which is the sum of the annual dividend yield and percentage of shares bought back over the past year. The screen provides a list of companies that aggressively return cash to shareholders through dividends and share buybacks. The top ranked stocks on the August 12, 2016 list are shown along with their shareholder yield and other relevant data.
EPIC RESEARCH SINGAPORE - Daily SGX Singapore report of 20 April 2015Epic Research Singapore
Epic Research Singapore have best technical research team, Our research team provide Daily report on SGX Singapore and SGX Exchange, You can get Daily Favorable Tips & future Strategy for SGX Stocks Market.
This document contains performance data and analysis of an algorithm company over several periods from 2017-2020. It includes key financial metrics like sales, operating profit, net income, debt ratios, and stock prices. It also provides probability scores for the company's stock price rising and charts these scores over time. The document evaluates the company's current stock price compared to indication prices and provides strategies for purchasing the company's stocks.
This document contains performance data and financial metrics for an algorithm company over several periods from 2018-2021. It also includes the company's current stock price, an indication of the stock's estimated price range, and analysis of the stock's probability of rising in price. Recommendations are provided on purchasing additional shares of the company's stock. Compliance disclosures are included, noting that the analysis is for reference only and users are responsible for their own investment decisions.
Idea Cellular Ltd. Q2 FY16 Result First Cut choice broking
Idea Cellular reported quarterly results that were largely in line with estimates. Consolidated net sales were 1.7% higher than expected at Rs. 86,765.8 million, driven by higher value-added services revenue. Consolidated EBITDA of Rs. 30,526.3 million and reported PAT of Rs. 7,873.3 million also met estimates. However, key operating metrics like voice revenue, minutes of usage, and data ARPU declined sequentially, leading to a 5.3% quarter-on-quarter drop in EBITDA and 13.1% fall in reported PAT. The brokerage maintains a "Buy" rating on Idea Cellular.
This document analyzes the corporate financial performance of two international companies in Bangladesh - British American Tobacco Bangladesh (BAT) and GlaxoSmithKline plc (GSK) Bangladesh in 2017. It provides an overview of each company and analyzes their financial performance using various ratios such as profit margin, asset turnover, current ratio, debt-to-equity ratio, return on assets, return on equity, earnings per share and dividend payout ratio. The analysis finds that while both companies were profitable in 2017, GSK generally had better financial performance than BAT according to most ratio measures.
AmCham Taipei 2016 Business Climate Survey - Full results Jan 19Gordon Stewart
- The survey found that 67% of companies were profitable in 2015, similar to previous years. However, forecasts for 2016 show a slight expected decline in revenues and profits.
- Investment levels are expected to remain unchanged or decrease slightly in 2016 after recovering in past years.
- Optimism in the 5-year business outlook dropped sharply from 60% to 47%, tracking a decline in Taiwan's GDP growth and raising concerns.
- The top issues impacting businesses are outdated laws, inconsistent regulations, declining domestic demand, bureaucracy, and lack of notice on legal changes.
This document provides a summary of financial performance and stock price indicators for an unnamed company over several periods between 2017-2021. It includes metrics like sales, operating profit, net income, debt ratios, and stock prices. It also analyzes the company's stock price against indication price ranges, and provides strategies for purchasing stocks within different price ranges. Overall, it uses financial data and algorithms to evaluate the company's performance and recommend investment strategies.
The document provides an overview of a company's financial results for the six months ended 30 June 2014. Key points include a profit before tax of $132.9m, a combined ratio of 90%, and prior year reserve releases of $72.9m. Gross written premiums increased 1% to $1,077.7m. The interim dividend was increased 7% to 3.1p. Specialty lines achieved a 1% rate increase on renewal business and $16.6m in prior year reserve releases.
The document provides an overview of the company's financial results for the year ended 31 December 2013. Key highlights include:
- Profit before tax increased 25% to $313.3 million.
- Gross written premiums grew 4% to $1,970.2 million.
- The combined ratio improved to 84% from 91% the prior year.
- A special dividend of 16.1p per share was declared, in addition to the regular dividend of 8.8p per share.
- The underwriting performance was strong across all divisions with prior year reserve releases and rate increases achieved.
Data were collected by The Survey Shop in June 2010. A total of 406 interviews were conducted by telephone using quota sampling. Respondents were qualified as owners, managers and decision-makers, and the data are representative of SMEs in UK and Ireland.
The document discusses extracting information from text. It focuses on identifying key elements and summarizing them concisely while retaining the most important details and concepts from the original text in 3 sentences or less.
How do you invest when valuations are high? What are the parameters that an investor needs to consider before he decides to invest? Explore the deck where Sorbh Gupta, Fund Manager, Equity, Quantum Mutual Fund answers these questions & more.
www.Quantumamc.com
Chase Corporation is a leading manufacturer of protective materials for high-reliability applications. It has a highly experienced management team and a track record of executing initiatives to grow organically and through acquisitions. Chase aims to be recognized as a trusted partner providing effective product solutions and to create long-term shareholder value through risk management and sustainable practices.
Hexaware Technologies' margins have troughed as investments made over the last three quarters eroded EBITDA margins by 713 basis points. The analyst expects margins to bottom out in Q3CY14 at 16% and then improve steadily through CY15. Revenue growth is expected to improve to high single digits in CY14 and mid-teens growth in CY15, accelerating on new deal wins. The analyst upgrades Hexaware to "Accumulate" and raises the target price to Rs160, citing bottoming margins and steady improvement, as well as revenue momentum acceleration in CY15.
- KSB Pumps reported flat profits for the quarter despite a 5.7% rise in sales, due to weaker margins from an unfavorable product mix and losses in the valve segment.
- While the pump segment grew sales by 5.7%, the valve segment returned to growth after four declining quarters but reported losses.
- Margins declined due to high prior year margins providing a tough comparison and costs rising faster than revenues.
- The analyst maintains a 'Buy' rating, expecting the company to benefit from an industrial recovery and its diverse portfolio.
For the quarter, Alembic Pharma reported sales growth of 23.1% yoy to Rs 463.4 cr, marginally below expectations. EBITDA margins improved by ~285 bps yoy to 19.6%, on the back of lower raw material cost. Hold for a target of Rs359.
Dr. Reddy's 1FY15: Strong sales in key markets drive growth, marginsIndiaNotes.com
Dr Reddy’s sales reached Rs35.2bn in Q1FY15, in line withour estimate of Rs36.2bn. Adjusted EBITDA margin was at 23%and PAT atRs5.5bn in Q1FY15. Strong traction in key geographies such as US, India and ROW markets helped in 24% YoY.
Zensar Technologies Q1FY15: Results in line with our expectations, buyIndiaNotes.com
Zensar Technologies reported quarterly results for Q1FY15. While INR revenues remained flat, USD revenues grew 3.8% above expectations. EBITDA margins declined due to project delays but are expected to improve going forward. Adjusted PAT fell 20% YoY. The company is focusing on growing its higher margin IM services business while reducing the lower margin IM products segment. With an improving deal pipeline and attractive valuations, analysts maintain a buy recommendation on the stock.
Q2FY15: Hold Mahindra & Mahindra Financial Services - Nirmal BangIndiaNotes.com
M&M Financial Services reported quarterly results that were in line with expectations. While profit declined slightly year-over-year due to higher provisions, asset quality issues were arrested and loan growth improved driven by growth in pre-owned vehicles. The company's asset quality and margins showed signs of improvement due to better collections and controlled slippages. However, valuations leave limited upside, leading analysts to maintain a HOLD rating with a target price slightly above current levels.
Tech Mahindra reported a weak Q1FY16 outlook, with marginal revenue decline and sustained pressure on margins expected. The company anticipates challenges in its communication business to persist through FY16, though its enterprise business is expected to grow in line with industry averages. Analysts revised down their estimates for FY16 and FY17 but maintained a 'buy' rating, expecting improvement in the second half of FY16. Margins are forecast to bottom out in the first half before showing gains from cost optimization and currency benefits in the latter half of the year.
Cipla Q2 disappoints, gearing up for strong H2FY15EIndiaNotes.com
Cipla reported disappointing sales, EBITDA, and PAT for Q2FY15 due to lower institutional sales, exports declining 5% YoY, and aggressive setup costs. However, strong license income from Salix partially offset the PAT decline. Management expects sales and EBITDA growth in H2FY15 to overcome the shortfall, driven by increased EU sales, South African tender wins, and export growth. The document provides an overview of Cipla's Q2 results and financials, with analysis of growth drivers and maintaining an Accumulate rating.
PI Industries: Another strong performance; Sales up 16% in Q1FY15IndiaNotes.com
PI Industries posted strong quarter with 16% growth in sales for the quarter. However, key highlight of the quarter is improvement in margins which has moved up by ~348 up yoy and ~859 bps qoq. Hold for a target of Rs465.
J&K Bank's profits declined by ~60% YoY due to high provisions for fraud accounts and stress asset accretion. Business growth was weak with loan book declining 3% YoY as the bank took a cautious approach outside J&K state. Asset quality risks remain high from the corporate book outside J&K state. Going forward, the bank plans to focus loan growth, margins, and deposits in J&K state to improve earnings, but high credit costs and slow growth will likely impact profits in FY16.
Punjab National Bank Q1FY15: Sane performance sanity in the quarterIndiaNotes.com
PNB’s Q1FY15 PAT of Rs14.1 bn was better than consensus expectations on betterNII performance and lower provisions. Asset quality was stable with no large slippages. Opex growth remained under control.
- Hinduja Global Solutions reported steady quarterly results with revenue up 1.9% quarter-over-quarter and 5.7% year-over-year. EBITDA was down 20.3% quarter-over-quarter due to currency movements and higher headcount.
- Lower capital expenditures of 4.3% of revenue led to a significant rise in free cash flow, which was used to repay debt and strengthen the balance sheet with net debt reduced to Rs. 1,187 million.
- The analyst maintains a 'Buy' rating and target price of Rs. 700 per share, seeing potential for 38% growth, based on strong free cash flow generation and robust balance sheet.
Sun Pharma: Compelling valuation post stake sale of Daiichi; BuyIndiaNotes.com
Daiichi Sankyo sold its entire 8.9% stake in Sun Pharmaceutical Industries through an offer for sale at an average price of Rs932 per share, realizing US$3.2 billion and taking a 30% loss on its original investment in Ranbaxy Laboratories. The analyst maintains a buy rating on Sun Pharma with a target price of Rs1138, believing the company's fundamentals remain strong and its current valuation is compelling relative to peers following a 21% decline over the past two weeks.
LIC Housing Finance Q1FY15 performance in line with estimates; buyIndiaNotes.com
LIC Housing Finance reported operational performance in line with estimates for the first quarter of fiscal year 2015. Net interest income was 3% below estimates but operating expenses were 5% below estimates, compensating and resulting in operating profits in line with expectations. Loan growth was healthy at 17% year-over-year driven by individual loans. Asset quality was stable with gross NPAs increasing slightly. The report maintains a "Buy" rating for LIC Housing Finance based on continued healthy volume growth and expected profitability over fiscal years 2014 to 2017.
Bajaj Finance Q1FY15: AUM growth remained strong at Rs269.4 bn, buyIndiaNotes.com
Bajaj Finance Q1FY15 PAT stood at INR2.11b, up 20% YoY and 16% QoQ (11% above est. of INR1.9b). Strong AUM growth (+40% YoY and 12% QoQ) and stable asset quality QoQ (GNPA/NNPA 1.13/0.27%) were highlights of the quarter. Buy
- Zee Entertainment reported a 2% decline in revenue for Q1 FY18, adjusted for asset sales and acquisitions. Revenue growth was impacted by the implementation of GST in June.
- EBITDA margin was strong at 31.4% due to lack of sports-related costs. Zee maintained its outlook for margins above 30%.
- The research firm maintains a 'Hold' rating on Zee stock with a target price of Rs. 560, valuing the company at 21x FY19 EV/EBITDA due to its leading position and superior margins. However, revenue growth estimates were lowered.
Mahindra Financial result update: 4QFY15 PAT up 7% YoY and 144% QoQIndiaNotes.com
- Mahindra Financial Services reported better than expected 4QFY15 results with net profit growing 7% YoY to INR3.33 billion, beating estimates by 23%.
- Key factors were a 6% beat in net interest income due to higher interest writebacks from improved asset quality, and lower operating expenses due to a reversal of employee provisions.
- Asset quality improved significantly with GNPAs declining 120bps sequentially to 5.9% and NNPA declining 100bps to 2.4%, driven by focus on recoveries and seasonal effects.
Zydus Wellness reports a subdued quarter, hold - Nirmal BangIndiaNotes.com
Zydus Wellness reported subdued quarterly results, with net sales declining 1.8% YoY and EBITDA declining 33.4% YoY. While gross margins improved, operating margins declined due to a large jump in advertising expenses. Profitability metrics like EBITDA, PBT and PAT all declined over 40% YoY. The weak performance was driven by continued slowdown in key brands EverYuth and Nutralite due to increased competition. The company has launched new products and variants which it expects will improve performance going forward. While Sugarfree grew, overall results were below estimates.
Shree Cement reported quarterly earnings in line with expectations. Earnings were impacted by an 8% decline in cement realizations, though volume growth of 7.6% partially offset the impact. While the company maintains strong operations and growth potential, further upside is limited given its expensive valuation at current levels. The report maintains an "Accumulate" rating with a target price of Rs11,080, citing low return potential and rich valuations.
Similar to Persistent Systems Q1FY15: Soft performance, margin headwinds limit near term upside (20)
The document summarizes financial information for GlaxoSmithKline Consumer Healthcare Ltd for quarters ending June 2015 and September 2015E. Key highlights include:
- For Q1 FY16 ending June 2015, net profit increased 19.13% YoY to Rs. 1550.10 million, net sales grew 8.18% YoY, and operating profit rose 20.64% YoY.
- Estimates for Q2 FY16 ending September 2015 show net sales growth to Rs. 11850.30 million and net profit increasing to Rs. 1775.02 million.
- At the current market price of Rs. 6270.20, the stock trades at a P/E ratio of 40.
Apollo Tyres approves further expansion of the Truck & Bus radial tyre capacityIndiaNotes.com
Apollo Tyres reported a 12.4% decrease in net sales but a 27.5% increase in net profit for Q1 FY16 compared to Q1 FY15. EBITDA rose 15.4% and profit margins increased 319 and 447 basis points respectively. Apollo Tyres approved expanding its Chennai truck and bus radial tire capacity and raising Rs. 20,000 million in debt for ongoing expansions. Analyst estimates see Apollo Tyres' operating profit and PAT growing at a CAGR of 13% and 23% from FY14 to FY17 respectively.
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Persistent Systems Q1FY15: Soft performance, margin headwinds limit near term upside
1.
Persistent Systems
Soft performance, Margin headwinds limit near term upside
July 28, 2014
Prabhudas Lilladher Pvt. Ltd. and/or its associates (the 'Firm') does and/or seeks to do business with companies covered in its research reports. As a result investors should be aware that
the Firm may have a conflict of interest that could affect the objectivity of the report. Investors should consider this report as only a single factor in making their investment decision.
Please refer to important disclosures and disclaimers at the end of the report
Q1FY15 Result Update
Shashi Bhusan
shashibhusan@plindia.com
+91‐22‐66322300
Hussain Kagzi
hussainkagzi@plindia.com
+91‐22‐66322242
Rating Accumlate
Price Rs1,284
Target Price Rs1,285
Implied Upside .1%
Sensex 26,127
Nifty 7,790
(Prices as on July 25, 2014)
Trading data
Market Cap. (Rs bn) 51.4
Shares o/s (m) 40.0
3M Avg. Daily value (Rs m) 222.4
Major shareholders
Promoters 38.96%
Foreign 27.37%
Domestic Inst. 9.82%
Public & Other 23.85%
Stock Performance
(%) 1M 6M 12M
Absolute 16.0 27.4 138.8
Relative 12.8 3.7 106.9
How we differ from Consensus
EPS (Rs) PL Cons. % Diff.
2015 78.6 77.7 1.2
2016 94.2 90.8 3.8
Price Performance (RIC: PERS.BO, BB: PSYS IN)
Source: Bloomberg
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(Rs)
Persistent Systems’ (Persistent’s) Q1FY15 result was another soft quarter compared
to PLe/Consensus’ expectation. We see weak start to the year and near term
headwinds to operating margin to restrict upside. Retain “Accumulate”.
Revenue and margin softer than expected: Persistent’s Q1FY15 result was
softer than expectation. Revenue declined by 2.6% QoQ to Rs4,349.9m (PLe:
Rs4,384m Cons: Rs4,385m) and flattish in USD terms to US$72.66m (PLe:
US$73.4m, Cons: US$73.4m). EBITDA margins eroded by 519bps to 21.8% (PLe:
24%, Cons: 24%) due to higher S&M cost (investment and wage hike ~7%), and
currency appreciation. EPS grew by 2.4% QoQ to Rs17.2 (PLe: Rs17.2, Cons:
Rs16.8) due to forex gain of Rs133m (Q4FY14 loss of Rs87mn).
IP had better than seasonal quarter, client addition strong: IP revenue for
Q1FY15 tracked better than seasonality expectation. The growth outlook for IP
in FY15 continues to be strong. The investment in sales and marketing has
started showing early traction with 76 new clients’ addition in Q1FY15. The
management continues to hold the view of stronger FY15 than FY14.
S&M investment and wage hike – Margin headwinds: The management
continues to invest in S&M team expanding their workforce by 52 QoQ (18 new
additions and rest reclassification of account managers as S&M that was earlier
classified in technical) to 202. We believe S&M investment, which will continue
through FY15, is right strategic move as Persistent gears up for enterprise sales.
Moreover, the wage hike for technical workforce would be headwind to the
margin in Q2FY15. However, non‐recurring visa cost, room for higher utilization,
and seasonally strong IP‐revenue would give margin tailwind in FY15.
Valuation & Recommendation: Persistent has delivered the margin and revenue
performance in FY14, but heightened consensus expectation leave limited scope
for earnings upgrade. However, the constant pursuits to inorganic opportunity
leave room for surprises. Despite, high‐teen revenue performance, margin
headwinds would yield decelerated earnings growth. We Retain ‘Accumulate’
with revised target price of Rs1,285 (Old: Rs1,130).
Key financials (Y/e March) 2013 2014 2015E 2016E
Revenues (Rs m) 12,945 16,692 19,228 22,745
Growth (%) 29.4 28.9 15.2 18.3
EBITDA (Rs m) 3,352 4,303 4,885 5,746
PAT (Rs m) 1,876 2,493 3,144 3,770
EPS (Rs) 46.9 62.3 78.6 94.2
Growth (%) 32.3 32.9 26.1 19.9
Net DPS (Rs) 8.5 11.3 13.2 15.1
Profitability & Valuation 2013 2014 2015E 2016E
EBITDA margin (%) 25.9 25.8 25.4 25.3
RoE (%) 20.2 22.3 23.2 23.0
RoCE (%) 19.4 21.7 22.4 22.4
EV / sales (x) 4.0 3.0 2.6 2.2
EV / EBITDA (x) 15.4 11.8 10.3 8.6
PE (x) 27.4 20.6 16.3 13.6
P / BV (x) 5.0 4.2 3.5 2.9
Net dividend yield (%) 0.7 0.9 1.0 1.2
Source: Company Data; PL Research
2.
July 28, 2014 2
Persistent Systems
Exhibit 1: Revenue and margin lower than expected (Rs m)
Y/e March Q1FY15 Q4FY14 QoQ Q1FY14 YoY Cons PLe Var (Act. Vs Est.)
Sales ($ m) 72.7 72.6 0.0% 63.0 15.3% 73.4 73.4 ‐1.0%
Period Average Rate 59.87 61.50 ‐2.7% 56.7 5.6% 59.7 59.7
Sales 4,349.9 4,467 ‐2.6% 3,572.9 21.7% 4,385.0 4,383.7 ‐0.8%
EBITDA 949.0 1,206.5 ‐21.3% 776.9 22.1% 1,053.0 1,052.1 ‐9.8%
EBITDA Margin 21.8% 27.0% ‐519 bps 21.7% 7 bps 24.0% 24.0% ‐218 bps
PBT 954.2 923.3 3.3% 803.1 18.8% 944.0 947.2 0.7%
Tax 266.1 251.3 5.9% 232.2 14.6% 268.3 255.7 4.1%
Tax Rate 27.9% 27.2% 67 bps 28.9% ‐102 bps 28.4% 27.0% 89 bps
PAT 688.0 672.0 2.4% 571.0 20.5% 675.7 691.5 ‐0.5%
EPS (Rs) 17.2 16.7 2.9% 14.2 21.1% 16.8 17.2 0.0%
Source: Company Data, Bloomberg, PL Research
Exhibit 2: S&M investment continues – Continues ramping‐up the sales team
Q1FY15 Q4FY14 QoQ Q1FY14 YoY
Sales & Business Development 202 150 34.7% 119 69.7%
S&M Expense 389 342 13.9% 319 21.8%
S&M (% of Revs) 8.9% 7.6% 129 bps 8.9% 1 bps
Source: Company Data, PL Research
Exhibit 3: Strong growth in America and Europe
By Geography ($m) Q1FY15 Q4FY14 QoQ Q1FY14 YoY
America 62.4 62.0 0.6% 55.2 13.0%
Europe 4.7 4.4 6.6% 3.0 56.1%
RoW 5.5 6.2 ‐10.6% 4.8 15.3%
% of Total
America 85.9% 85.4% 50 bps 87.6% ‐170 bps
Europe 6.5% 6.1% 40 bps 4.8% 170 bps
Row 7.6% 8.5% ‐90 bps 7.6% 0 bps
Source: Company Data, PL Research
3.
July 28, 2014 3
Persistent Systems
Exhibit 4: Strong growth in Telecom
By Vertical Offering ($ m) Q1FY15 Q4FY14 QoQ Q1FY14 YoY
Telecom 13.4 11.1 20.9% 13.0 3.0%
Infrastructure and BFSI 49.7 52.0 ‐4.4% 43.6 14.1%
Life Sciences & Healthcare 9.5 9.5 0.0% 6.4 48.1%
% of Total
Telecom 18.5% 15.3% 320 bps 20.7% ‐220 bps
Infrastructure and Systems 68.4% 71.6% ‐320 bps 69.1% ‐70 bps
Life Sciences & BFSI 13.1% 13.1% 0 bps 10.2% 290 bps
Source: Company Data, PL Research
Exhibit 5: Pricing likely to remain stable at this level, Yield flattish
Delivery Split Q1FY15 Q4FY14 QoQ Q1FY14 YoY
Onsite 16.8 15.5 8.0% 13.4 25.6%
Offshore 41.3 42.9 ‐3.5% 40.2 3.0%
IP Driven 14.5 14.2 2.1% 9.5 52.7%
Fee Revenue
Onsite 23.1% 21.4% 170 bps 21.2% 190 bps
Offshore 56.9% 59.0% ‐210 bps 63.7% ‐680 bps
IP Driven 20.0% 19.6% 40 bps 15.1% 490 bps
Pricing (USD/ person month)
Onsite 14,905 14,355 3.8% 14,567 2.3%
Offshore 4,219 4,241 ‐0.5% 4,111 2.6%
Yield 3915.0 3927.0 ‐0.3% 3602.0 8.7%
Source: Company Data, PL Research
Exhibit 6: IP‐led revenue strong despite seasonality
By Business Offering ($ m) Q1FY15 Q4FY14 QoQ Q1FY14 YoY
Product Engineering & Platform 58.1 58.4 ‐0.5% 53.5 8.6%
IP Led 14.5 14.2 2.1% 9.5 52.7%
% of Total
Product Engineering & Platform 80.0% 80.4% ‐40 bps 84.9% ‐490 bps
IP Led 20.0% 19.6% 40 bps 15.1% 490 bps
Source: Company Data, PL Research
4.
July 28, 2014 4
Persistent Systems
Exhibit 7: Attrition up in‐line with industry
Manpower details Q1FY15 Q4FY14 QoQ Q1FY14 YoY
Billable 16,139 16,155 ‐0.1% 15,161 6.5%
Billed 10,925 11,183 ‐2.3% 10,607 3.0%
IP Led 2,419 2,343 3.2% 2,335 3.6%
Sales & Business Development 202 150 34.7% 119 69.7%
Support 403 358 12.6% 336 19.9%
Technical 7,271 7,349 ‐1.1% 6,689 8.7%
Total 7,876 7,857 0.2% 7,144 10.2%
DSO 69 63 9.5% 65 6.2%
Attrition (LTM) 14.0% 13.4% 60 bps 14.2% ‐20 bps
Source: Company Data, PL Research
Exhibit 8: Weak growth from top 5 clients
Client Details Q1FY15 Q4FY14 QoQ Q1FY14 YoY
Large > $ 3m 14 15 ‐6.7% 15 ‐6.7%
Medium > $ 1m, < $ 3m 38 36 5.6% 30 26.7%
Prod. Eng. & Platforms 260 261 ‐0.4% 253 2.8%
IP Led 347 358 ‐3.1% 387 ‐10.3%
Top Client 15.1 15.3 ‐1.4% 13.4 13.1%
Top 2‐5 Clients 13.0 13.3 ‐2.2% 9.6 35.8%
Top 5 Clients 28.1 28.6 ‐1.7% 22.9 22.6%
Top 6‐10 Clients 7.5 6.6 13.2% 6.9 8.9%
Top 10 Clients 35.6 35.2 1.1% 29.8 19.4%
Non Top 10 Clients 37.1 37.4 ‐0.9% 33.2 11.6%
% of Total
Top Client 20.8% 21.1% ‐30 bps 21.2% ‐40 bps
Top 5 Clients 38.7% 39.4% ‐70 bps 36.4% 230 bps
Top 10 Clients 49.0% 48.5% 50 bps 47.3% 170 bps
Non Top 10 Clients 51.0% 51.5% ‐50 bps 52.7% ‐170 bps
Revenue from repeat business 63.0 61.9 1.8% 52.3 20.4%
Non‐repeat business 9.7 10.8 ‐10.1% 10.7 ‐9.8%
% of Total
New Business 13.3% 14.8% ‐150 bps 17.0% ‐370 bps
Repeat Business 86.7% 85.2% 150 bps 83.0% 370 bps
Source: Company Data, PL Research
5.
July 28, 2014 5
Persistent Systems
Income Statement (Rs m)
Y/e March 2013 2014 2015E 2016E
Net Revenue 12,945 16,692 19,228 22,745
Raw Material Expenses — — — —
Gross Profit 12,945 16,692 19,228 22,745
Employee Cost 8,888 11,406 13,192 15,679
Other Expenses 705 983 1,151 1,319
EBITDA 3,352 4,303 4,885 5,746
Depr. & Amortization 783 1,026 1,007 1,180
Net Interest — 78 (21) 1
Other Income 61 228 468 529
Profit before Tax 2,630 3,427 4,367 5,094
Total Tax 754 934 1,223 1,324
Profit after Tax 1,876 2,493 3,144 3,770
Ex‐Od items / Min. Int. — — — —
Adj. PAT 1,876 2,493 3,144 3,770
Avg. Shares O/S (m) 40.0 40.0 40.0 40.0
EPS (Rs.) 46.9 62.3 78.6 94.2
Cash Flow Abstract (Rs m)
Y/e March 2013 2014 2015E 2016E
C/F from Operations 2,163 2,808 3,592 4,242
C/F from Investing (1,711) (1,958) (2,307) (2,729)
C/F from Financing (386) (516) (404) (603)
Inc. / Dec. in Cash 66 334 881 910
Opening Cash 433 499 833 1,714
Closing Cash 499 833 1,714 2,624
FCFF 1,352 1,789 1,285 1,513
FCFE 1,928 1,561 1,285 1,513
Key Financial Metrics
Y/e March 2013 2014 2015E 2016E
Growth
Revenue (%) 29.4 28.9 15.2 18.3
EBITDA (%) 44.2 28.4 13.5 17.6
PAT (%) 32.3 32.9 26.1 19.9
EPS (%) 32.3 32.9 26.1 19.9
Profitability
EBITDA Margin (%) 25.9 25.8 25.4 25.3
PAT Margin (%) 14.5 14.9 16.4 16.6
RoCE (%) 19.4 21.7 22.4 22.4
RoE (%) 20.2 22.3 23.2 23.0
Balance Sheet
Net Debt : Equity — — (0.1) (0.1)
Net Wrkng Cap. (days) — — — —
Valuation
PER (x) 27.4 20.6 16.3 13.6
P / B (x) 5.0 4.2 3.5 2.9
EV / EBITDA (x) 15.4 11.8 10.3 8.6
EV / Sales (x) 4.0 3.0 2.6 2.2
Earnings Quality
Eff. Tax Rate 28.7 27.3 28.0 26.0
Other Inc / PBT 2.3 6.7 10.7 10.4
Eff. Depr. Rate (%) 11.3 12.0 9.3 8.7
FCFE / PAT 102.8 62.6 40.9 40.1
Source: Company Data, PL Research.
Balance Sheet Abstract (Rs m)
Y/e March 2013 2014 2015E 2016E
Shareholder's Funds 10,183 12,223 14,840 18,006
Total Debt 653 426 426 426
Other Liabilities — — — —
Total Liabilities 10,836 12,649 15,266 18,432
Net Fixed Assets 4,677 4,362 5,662 7,212
Goodwill 721 620 620 620
Investments 3,289 4,895 4,895 4,895
Net Current Assets 1,959 2,512 3,829 5,445
Cash & Equivalents 561 957 1,714 2,624
Other Current Assets 3,291 4,340 5,151 6,392
Current Liabilities 1,894 2,785 3,037 3,570
Other Assets 190 260 260 260
Total Assets 10,836 12,649 15,266 18,432
Quarterly Financials (Rs m)
Y/e March Q2FY14 Q3FY14 Q4FY14 Q1FY15
Net Revenue 4,324 4,328 4,467 4,350
EBITDA 1,122 1,197 1,207 949
% of revenue 26.0 27.7 27.0 21.8
Depr. & Amortization 263 262 264 228
Net Interest (75) 147 87 (133)
Other Income (100) 77 68 100
Profit before Tax 835 865 923 954
Total Tax 227 223 251 266
Profit after Tax 608 642 672 688
Adj. PAT 608 642 672 688
Key Operating Metrics
Y/e March 2013 2014 2015E 2016E
Volume (persons month) 41,176 44,033 50,638 59,246
Realization (US$ / person month) 3,686 3,847 3,905 3,998
Currency (USDINR) 54.5 60.9 59.8 59.0
SW Devp. Cost (% of sales) 68.7 68.3 68.6 68.9
SG&A (% of sales) 5.4 5.9 6.0 5.8
Revenue (US$ m) 237.8 275.7 321.8 385.5
EBITDA Margin Expansion/(Erosion) (bps) 0.7 (1.4) 75.0 (200.0)
Tax Rate (%) 28.7 27.3 28.0 26.0
Source: Company Data, PL Research.
6.
July 28, 2014 6
Persistent Systems
Prabhudas Lilladher Pvt. Ltd.
3rd Floor, Sadhana House, 570, P. B. Marg, Worli, Mumbai‐400 018, India
Tel: (91 22) 6632 2222 Fax: (91 22) 6632 2209
Rating Distribution of Research Coverage
29.6%
50.9%
19.4%
0.0%
0%
10%
20%
30%
40%
50%
60%
BUY Accumulate Reduce Sell
% of Total Coverage
PL’s Recommendation Nomenclature
BUY : Over 15% Outperformance to Sensex over 12‐months Accumulate : Outperformance to Sensex over 12‐months
Reduce : Underperformance to Sensex over 12‐months Sell : Over 15% underperformance to Sensex over 12‐months
Trading Buy : Over 10% absolute upside in 1‐month Trading Sell : Over 10% absolute decline in 1‐month
Not Rated (NR) : No specific call on the stock Under Review (UR) : Rating likely to change shortly
This document has been prepared by the Research Division of Prabhudas Lilladher Pvt. Ltd. Mumbai, India (PL) and is meant for use by the recipient only as
information and is not for circulation. This document is not to be reported or copied or made available to others without prior permission of PL. It should not be
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The information contained in this report has been obtained from sources that are considered to be reliable. However, PL has not independently verified the accuracy
or completeness of the same. Neither PL nor any of its affiliates, its directors or its employees accept any responsibility of whatsoever nature for the information,
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