Citadel Group (CGL) - initiation report - latent value in a trusted it servic...George Gabriel
Citadel Group is a highly trusted provider of IT and health care services, trusted by critical government departments to manage sensitive data. We were pleased to support Citadel with its corporate growth agenda.
Our topic specific Financial Forecast Power Point Presentation Slides presentation deck contains sixteen slides to formulate the topic with a sound understanding. This PPT deck is what you can bank upon. With diverse and professional slides at your side, worry the least for a powerpack presentation. A range of editable and ready to use slides with all sorts of relevant charts and graphs, overviews, topics subtopics templates, and analysis templates makes it all the more worth. This deck displays creative and professional looking slides of all sorts. Whether you are a member of an assigned team or a designated official on the look out for impacting slides, it caters to every professional field.
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
Voltas Visit Update: Muted near-term outlook - Prabhudas LilladherIndiaNotes.com
We met the management of Voltas. The key takeaways from the meet are 1) Management expects ordering in the MEP segment to pick up in FY16 2) Legacy orders in the MEP segment might continue till Q3/Q4FY15 3) EMP segment may see a meaningful dip in revenues in FY15
Zensar Technologies Q1FY15: Results in line with our expectations, buyIndiaNotes.com
USD Revenues grew by 3.8% led by good growth seen in the enterprise business which grew 6.6% QoQ. During the quarter, the IM services grew by 2.5% QoQ whereas IM Products business grew by 1% QoQ.
In case you need to present economic status of your company then our content-ready financial statement analysis PowerPoint Presentation is ideal for you. This income statement PPT presentation having multiple slides such as financial projections, key financial ratios, liquidity ratios, cash flow statement KPIs, profitability ratios, activity ratios, solvency ratios, income statement overview and funding updates etc. This cash flow assessment PowerPoint template goes well with topics like profitability analysis, business impact analysis, financial health, and income statement, balance sheet, statement of cash flow, business performance analysis, financial health, and future prospects of an organization, project future performance, economic analysis, company analysis, business valuation, fundamental analysis. For successful business presentation, PowerPoint background is as important as the content in the slides. Our accounting statement PPT slide provides you both content rich as well as professional slides. Download our financial statement analysis presentation slides to project your business future performance. Elucidate on your ideas with our Financial Statement Analysis PowerPoint Presentation Slides. Drive your team to excellence.
LIC Housing Finance Q1FY15 performance in line with estimates; buyIndiaNotes.com
LIC Housing Finance’s 1QFY15 operational performance was in line with estimates. Lower than expected Net interest income (3% below estimate) compensated by 5% below estimated opex. Operating profits grew 13% YoY to INR4.97b (in-line).
In case you need to present economic status of your company then our content-ready financial statement analysis PowerPoint Presentation is ideal for you. This income statement PPT presentation having multiple slides such as financial projections, key financial ratios, liquidity ratios, cash flow statement KPIs, profitability ratios, activity ratios, solvency ratios, income statement overview and funding updates etc. This cash flow assessment PowerPoint template goes well with topics like profitability analysis, business impact analysis, financial health, and income statement, balance sheet, statement of cash flow, business performance analysis, financial health, and future prospects of an organization, project future performance, economic analysis, company analysis, business valuation, fundamental analysis. For successful business presentation, PowerPoint background is as important as the content in the slides. Our accounting statement PPT slide provides you both content rich as well as professional slides. Download our financial statement analysis presentation slides to project your business future performance. Elucidate on your ideas with our Financial Statement Analysis Powerpoint Presentation Slides. Drive your team to excellence. https://bit.ly/2VtddrR
ACC Q1FY15: Earnings mildly below expectation; outlook remains strongIndiaNotes.com
ACC reported Q2CY14 earnings below our expectation, primarily on account of higher‐than‐expected cost. BUY rating is retained on the stock, driven by strong outlook on demand of worst hit southern and western regions
Citadel Group (CGL) - initiation report - latent value in a trusted it servic...George Gabriel
Citadel Group is a highly trusted provider of IT and health care services, trusted by critical government departments to manage sensitive data. We were pleased to support Citadel with its corporate growth agenda.
Our topic specific Financial Forecast Power Point Presentation Slides presentation deck contains sixteen slides to formulate the topic with a sound understanding. This PPT deck is what you can bank upon. With diverse and professional slides at your side, worry the least for a powerpack presentation. A range of editable and ready to use slides with all sorts of relevant charts and graphs, overviews, topics subtopics templates, and analysis templates makes it all the more worth. This deck displays creative and professional looking slides of all sorts. Whether you are a member of an assigned team or a designated official on the look out for impacting slides, it caters to every professional field.
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
Voltas Visit Update: Muted near-term outlook - Prabhudas LilladherIndiaNotes.com
We met the management of Voltas. The key takeaways from the meet are 1) Management expects ordering in the MEP segment to pick up in FY16 2) Legacy orders in the MEP segment might continue till Q3/Q4FY15 3) EMP segment may see a meaningful dip in revenues in FY15
Zensar Technologies Q1FY15: Results in line with our expectations, buyIndiaNotes.com
USD Revenues grew by 3.8% led by good growth seen in the enterprise business which grew 6.6% QoQ. During the quarter, the IM services grew by 2.5% QoQ whereas IM Products business grew by 1% QoQ.
In case you need to present economic status of your company then our content-ready financial statement analysis PowerPoint Presentation is ideal for you. This income statement PPT presentation having multiple slides such as financial projections, key financial ratios, liquidity ratios, cash flow statement KPIs, profitability ratios, activity ratios, solvency ratios, income statement overview and funding updates etc. This cash flow assessment PowerPoint template goes well with topics like profitability analysis, business impact analysis, financial health, and income statement, balance sheet, statement of cash flow, business performance analysis, financial health, and future prospects of an organization, project future performance, economic analysis, company analysis, business valuation, fundamental analysis. For successful business presentation, PowerPoint background is as important as the content in the slides. Our accounting statement PPT slide provides you both content rich as well as professional slides. Download our financial statement analysis presentation slides to project your business future performance. Elucidate on your ideas with our Financial Statement Analysis PowerPoint Presentation Slides. Drive your team to excellence.
LIC Housing Finance Q1FY15 performance in line with estimates; buyIndiaNotes.com
LIC Housing Finance’s 1QFY15 operational performance was in line with estimates. Lower than expected Net interest income (3% below estimate) compensated by 5% below estimated opex. Operating profits grew 13% YoY to INR4.97b (in-line).
In case you need to present economic status of your company then our content-ready financial statement analysis PowerPoint Presentation is ideal for you. This income statement PPT presentation having multiple slides such as financial projections, key financial ratios, liquidity ratios, cash flow statement KPIs, profitability ratios, activity ratios, solvency ratios, income statement overview and funding updates etc. This cash flow assessment PowerPoint template goes well with topics like profitability analysis, business impact analysis, financial health, and income statement, balance sheet, statement of cash flow, business performance analysis, financial health, and future prospects of an organization, project future performance, economic analysis, company analysis, business valuation, fundamental analysis. For successful business presentation, PowerPoint background is as important as the content in the slides. Our accounting statement PPT slide provides you both content rich as well as professional slides. Download our financial statement analysis presentation slides to project your business future performance. Elucidate on your ideas with our Financial Statement Analysis Powerpoint Presentation Slides. Drive your team to excellence. https://bit.ly/2VtddrR
ACC Q1FY15: Earnings mildly below expectation; outlook remains strongIndiaNotes.com
ACC reported Q2CY14 earnings below our expectation, primarily on account of higher‐than‐expected cost. BUY rating is retained on the stock, driven by strong outlook on demand of worst hit southern and western regions
Persistent Systems Q1FY15: Soft performance, margin headwinds limit near ter...IndiaNotes.com
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.
KSB Pumps Q1FY15: Strong PAT growth of 45% YoY; buyIndiaNotes.com
KSB Pumps reported sales of Rs1.9bn, up 2.7% YoY (PLe: Rs2bn). While sales in the Pump segment was up 7% YoY to Rs1.6bn, sales in the Valve segment continue to de‐grow, down 24% YoY to Rs289m. EBITDA margin improved 80bps YoY to 14.7%.
Vaibhav Global Q1FY15: Outlook continues to remain positive; HoldIndiaNotes.com
As expected, the company reported sales growth of 20.3% yoy to Rs 301 cr, on account of sluggish TV Sales. Q1 is a temporary blip and Nirmal Bang expects the growth to be normalized from Q3 onwards (Q2 is seasonally weak quarter for the company). Hold
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.
TRAI has revised DTH licence fee from 10% of GR to 8% of AGR. Reported EBITDA margin to increase by ~290bp. However cash flow impact is negative as currently cash licence fee payout is only ~6% of revenue, in line with the current legal understanding. Buy
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.
More about RGen solution: Founded in 2006, RGen has headquarters at Redmond, USA. The company provides services like Business Intelligence, staffing, software development & testing and SharePoint 2010 services.
1.
Hexaware Technologies
Margin troughed, Sales uptick likely; Upgrade to ‘Accumulate’
August 06, 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
Company Update
Shashi Bhusan
shashibhusan@plindia.com
+91‐22‐66322300
Hussain Kagzi
hussainkagzi@plindia.com
+91‐22‐66322242
Rating Accumulate
Price Rs141
Target Price Rs160
Implied Upside 13.5%
Sensex 25,908
Nifty 7,747
(Prices as on August 05, 2014)
Trading data
Market Cap. (Rs bn) 41.7
Shares o/s (m) 296.5
3M Avg. Daily value (Rs m) 474.8
Major shareholders
Promoters 63.83%
Foreign 15.68%
Domestic Inst. 2.19%
Public & Other 18.30%
Stock Performance
(%) 1M 6M 12M
Absolute (9.4) 5.0 18.3
Relative (9.2) (22.9) (16.7)
How we differ from Consensus
EPS (Rs) PL Cons. % Diff.
2014 11.5 10.9 4.8
2015 14.3 13.2 8.6
Price Performance (RIC: HEXT.BO, BB: HEXW IN)
Source: Bloomberg
0
50
100
150
200
Aug‐13
Oct‐13
Dec‐13
Feb‐14
Apr‐14
Jun‐14
Aug‐14
(Rs)
We upgrade Hexaware Technologies (HEXW) to “Accumulate” from “Reduce” as our
long‐standing hypothesis of margin reset with moderating growth played out in
Q2CY14. We see the benefits of investments to flow‐in earlier than consensus
expectation as demand environment remains healthy. We see bottoming‐out of the
consensus expectations.
Margin expectation bottomed out, improvement likely: In conjunction with our
hypothesis over the last two years about stretched levers and under‐investment
in business that resulted in margin improvement, margin reset happened over
the last three quarters as EBITDA margins eroded by 713bps. The management
started making investment in the business as they are eyeing for growth in
improved environment. We see headwinds in Q3CY14 due to wage hike and cost
associated with “Consultant Fees”. However, we expect EBITDA margin to
bottom‐out in Q3CY14 (@ 16%) with steady improvement in CY15.
Growth momentum to improve, accelerate in CY15: According to the
management, revenue growth in H2CY14 is likely to remain sustained. HEXW is
chasing three large deals and initiating two new sales engagements (early stage
of discussion). The deal pipeline has witnessed steady improvement during the
quarter. Growth is likely to be strong on the back of new deal wins. However,
we see improving revenue momentum to only yield high single digit revenue
growth in USD terms in CY14, but mid‐teens growth in CY15 (PLe: 15.9%,
implying CQGR: 3.5%).
Revising CY14E and CY15E estimates upward: We revise our estimates upward
for revenue and margin assumptions of CY14E and CY15E.
Valuation & Recommendation – Upgrade to “Accumulate” with a revised TP of
Rs160: We see margin expectation of consensus to bottom‐out in Q3CY14.
However, we see steady improvement in margin thereon, with revenue
momentum seeing acceleration in CY15 to mid‐teens. We revise our multiple to
11x from 9x as company sustained healthy cash conversion and dividend
payout. We upgrade to “Accumulate”, with a revised TP of Rs160 (from Rs120).
Key financials (Y/e December) 2012 2013 2014E 2015E
Revenues (Rs m) 19,482 22,854 24,874 28,609
Growth (%) 34.3 17.3 8.8 15.0
EBITDA (Rs m) 4,074 5,124 4,291 5,344
PAT (Rs m) 3,276 3,792 3,435 4,285
EPS (Rs) 11.0 12.6 11.5 14.3
Growth (%) 21.4 14.5 (9.4) 24.8
Net DPS (Rs) 6.6 9.9 5.7 5.9
Profitability & Valuation 2012 2013 2014E 2015E
EBITDA margin (%) 20.9 22.4 17.3 18.7
RoE (%) 29.5 31.6 26.7 28.6
RoCE (%) 29.4 31.4 26.7 28.6
EV / sales (x) 2.0 1.7 1.6 1.3
EV / EBITDA (x) 9.8 7.6 9.1 7.0
PE (x) 12.7 11.1 12.3 9.8
P / BV (x) 3.5 3.5 3.1 2.6
Net dividend yield (%) 4.7 7.1 4.0 4.2
Source: Company Data; PL Research
3.
August 06, 2014 3
Hexaware Technologies
Exhibit 4: Sustaining cash flow at healthy level despite volatile earnings
‐48.0%
‐23.0%
2.0%
27.0%
52.0%
77.0%
102.0%
127.0%
‐56%
‐16%
24%
64%
104%
144%
184%
Q1FY11
Q2FY11
Q3FY11
Q4FY11
Q1FY12
Q2FY12
Q3FY12
Q4FY12
Q1FY13
Q2FY13
Q3FY13
Q4FY13
Q1FY14
Q2FY14
CFO/PAT FCF/EBITDA (RHS)
Source: Company Data, PL Research
Exhibit 5: Dividend payout ahead of industry average
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
CY08 CY09 CY10 CY11 CY12 CY13
Dividend Payout Ratio
Source: Company Data, PL Research
Exhibit 6: PER Chart
6.5x
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
Aug‐08
Dec‐08
May‐09
Sep‐09
Jan‐10
Jun‐10
Nov‐10
Mar‐11
Aug‐11
Dec‐11
May‐12
Sep‐12
Jan‐13
Jun‐13
Nov‐13
Mar‐14
Aug‐14
1‐Yr Forward PER Average PER
Source: Company Data, Bloomberg, PL Research
4.
August 06, 2014 4
Hexaware Technologies
Income Statement (Rs m)
Y/e December 2012 2013 2014E 2015E
Net Revenue 19,482 22,854 24,874 28,609
Software Dev. Exp. 11,846 13,826 15,818 17,964
Gross Profit 7,636 9,028 9,056 10,646
Employee Cost — — — —
Other Expenses 3,562 3,904 4,764 5,302
EBITDA 4,074 5,124 4,291 5,344
Depr. & Amortization 324 386 443 497
Net Interest — — — —
Other Income 290 58 555 647
Profit before Tax 4,040 4,796 4,403 5,493
Total Tax 764 1,004 969 1,209
Profit after Tax 3,276 3,792 3,435 4,285
Ex‐Od items / Min. Int. — — — —
Adj. PAT 3,276 3,792 3,435 4,285
Avg. Shares O/S (m) 296.5 299.9 299.9 299.9
EPS (Rs.) 11.0 12.6 11.5 14.3
Cash Flow Abstract (Rs m)
Y/e December 2012 2013 2014E 2015E
C/F from Operations 2,199 3,358 2,653 4,343
C/F from Investing (2,484) (1,162) (871) (1,001)
C/F from Financing (1,897) (1,255) (1,577) (1,770)
Inc. / Dec. in Cash (2,182) 941 205 1,572
Opening Cash 4,132 1,951 2,892 3,097
Closing Cash 1,951 2,892 3,097 4,669
FCFF 1,915 5,780 1,783 3,342
FCFE 1,993 5,711 1,783 3,342
Key Financial Metrics
Y/e December 2012 2013 2014E 2015E
Growth
Revenue (%) 34.3 17.3 8.8 15.0
EBITDA (%) 53.9 25.8 (16.2) 24.5
PAT (%) 22.7 15.7 (9.4) 24.8
EPS (%) 21.4 14.5 (9.4) 24.8
Profitability
EBITDA Margin (%) 20.9 22.4 17.3 18.7
PAT Margin (%) 16.8 16.6 13.8 15.0
RoCE (%) 29.4 31.4 26.7 28.6
RoE (%) 29.5 31.6 26.7 28.6
Balance Sheet
Net Debt : Equity (0.2) (0.3) (0.2) (0.3)
Net Wrkng Cap. (days) — — — —
Valuation
PER (x) 12.7 11.1 12.3 9.8
P / B (x) 3.5 3.5 3.1 2.6
EV / EBITDA (x) 9.8 7.6 9.1 7.0
EV / Sales (x) 2.0 1.7 1.6 1.3
Earnings Quality
Eff. Tax Rate 18.9 20.9 22.0 22.0
Other Inc / PBT 7.2 1.2 12.6 11.8
Eff. Depr. Rate (%) 5.0 5.3 5.4 5.4
FCFE / PAT 60.8 150.6 51.9 78.0
Source: Company Data, PL Research.
Balance Sheet Abstract (Rs m)
Y/e December 2012 2013 2014E 2015E
Shareholder's Funds 12,038 11,992 13,731 16,246
Total Debt 78 9 9 9
Other Liabilities 396 480 480 480
Total Liabilities 12,512 12,482 14,220 16,735
Net Fixed Assets 5,199 5,371 5,798 6,302
Goodwill — — — —
Investments 2,354 3,383 3,383 3,383
Net Current Assets 3,496 2,034 3,345 5,356
Cash & Equivalents 1,969 3,011 3,097 4,669
Other Current Assets 4,799 4,853 5,969 7,267
Current Liabilities 3,272 5,830 5,721 6,580
Other Assets 1,462 1,695 1,695 1,695
Total Assets 12,512 12,482 14,220 16,735
Quarterly Financials (Rs m)
Y/e December Q3CY13 Q4CY13 Q1CY14 Q2CY14
Net Revenue 6,211 6,200 5,889 6,104
EBITDA 1,478 1,394 1,133 1,017
% of revenue 23.8 22.5 19.2 16.7
Depr. & Amortization 98 101 108 108
Net Interest — — — —
Other Income (120) (2) (50) 173
Profit before Tax 1,260 1,291 975 1,082
Total Tax 272 259 272 227
Profit after Tax 988 1,032 703 855
Adj. PAT 988 1,032 703 855
Key Operating Metrics
Y/e December 2012 2013 2014E 2015E
Total Technical Billed (Headcount) 8,371 — — —
Onsite Realization ($/hr) 73.8 72.9 72.1 75.0
Offshore Realization ($/hr) 23.0 23.0 22.7 23.6
Software Dev. Exp. (% of Sales) 60.8 60.5 63.6 62.8
Sales & Mktg. (% of Sales) 18.3 17.1 19.2 18.5
Currency (Re/$) 53 59 60 59
Revenue (US$ m) 364 389 416 485
Source: Company Data, PL Research.
5.
August 06, 2014 5
Hexaware Technologies
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
31.8%
49.1%
19.1%
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
considered or taken as an offer to sell or a solicitation to buy or sell any security.
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,
statements and opinion given, made available or expressed herein or for any omission therein.
Recipients of this report should be aware that past performance is not necessarily a guide to future performance and value of investments can go down as well. The
suitability or otherwise of any investments will depend upon the recipient's particular circumstances and, in case of doubt, advice should be sought from an
independent expert/advisor.
Either PL or its affiliates or its directors or its employees or its representatives or its clients or their relatives may have position(s), make market, act as principal or
engage in transactions of securities of companies referred to in this report and they may have used the research material prior to publication.
We may from time to time solicit or perform investment banking or other services for any company mentioned in this document.