Tata Steel reported financial results for the first quarter of fiscal year 2011. For the quarter, Tata Steel reported consolidated net revenue of Rs27,195 crore and net profit of Rs1,825 crore. The company's standalone operations saw a 16.5% increase in net revenue compared to the prior year quarter, but a 13.3% decline sequentially due to lower production volumes. Tata Steel's European operations reported a smaller loss than the previous year, with adjusted EBITDA/tonne of US$105 for the quarter. Going forward, the note expects weaker performance from Tata Steel Europe but stronger results from Tata Steel's Indian operations.
McNally Bharat Engineering Co. Ltd. (MBE) reported disappointing financial results for the first quarter of fiscal year 2011, with revenues, earnings, and margins coming in below previous estimates. While MBE's order backlog remains strong at Rs. 4,803 crores, providing high revenue visibility, its subsidiary McNally Sayaji also saw subdued performance. However, analysts maintain a 'Buy' recommendation due to MBE's experience in various sectors, ongoing government infrastructure spending, and significant projected market opportunities over the next few years totaling Rs. 51,600 crores. Estimates have been revised downward to account for the weak quarterly performance.
JSW Steel reported lower than expected results for 1QFY2011 with net revenue of Rs4,779cr, down 12.2% quarter-over-quarter due to a decline in sales volume. EBITDA grew 64.7% year-over-year to Rs1,134cr but the margin increased only 646bps to 23.7% due to higher staff costs and other expenses. Net profit was Rs295cr, a 26.2% increase from a year ago but below estimates. JSW Steel finalized a strategic investment deal with JFE Steel worth Rs4,800cr that will help reduce debt and provide access to new technologies. Management expects sales volume and profitability to improve in the coming
1) For 1QFY2011, Punj Lloyd posted disappointing results with net sales declining 41.7% year-over-year. Operating profits declined 56.1% and the company reported a net loss of Rs 30.6 crore.
2) The top-line was lower than expected, leading the company to downgrade its FY2011 and FY2012 revenue estimates. Problem orders like Ensus and Heera are now out of the picture.
3) While past performance was weak, the outlook is more positive as slow-moving orders have picked up and most challenges are now behind the company. With many negatives priced in, the analyst maintains a "Buy" rating on expectations of improved performance in F
India Cements' net sales and profits declined significantly in the first quarter of fiscal year 2011 compared to the same period last year. Net sales decreased 8.1% and operating profit declined 71.2% due to a substantial decline in cement prices in Andhra Pradesh, which accounts for around 45% of the company's revenues. Net profit dropped 82.7% to Rs25cr as a result of the poor operating performance, despite a profit from selling shares in another company. The company expects pricing pressure to continue in the southern region in the coming quarters due to excess capacity.
Bharat Forge reported strong results for 1QFY2011 with net sales growing 75.7% year-over-year to Rs 630.1 crore, beating estimates. Operating margins improved significantly to 25.2% due to lower raw material costs and higher utilization levels. Net profit was Rs 59.4 crore, exceeding expectations due to improved volumes and operating leverage. The analyst recommends accumulating the stock given the better-than-expected performance and revised upward estimates.
Sadbhav Engineering reported a 42% increase in net sales and 83.8% increase in net profit for the first quarter of fiscal year 2011 compared to the previous year. The company saw robust growth due to a rise in order book over the last few quarters and has guided for over 35% revenue growth over the next 12 months. However, the analyst downgraded the stock to Reduce due to rich valuations and concerns over potential execution challenges due to a record high order backlog.
CESC reported a 33.7% year-over-year growth in revenue for the first quarter of fiscal year 2011, driven by the commissioning of its new 250MW Budge-Budge power plant. However, operating margins declined from the previous quarter due to a 90.6% year-over-year increase in other expenses. While revenue beat estimates, net profit growth was moderate at 4.8% year-over-year due to higher expenditure, growing at a faster pace than revenues. The company continues construction on its 600MW Chandrapur and Haldia power projects.
Exide Industries reported a 35.1% increase in net profit for 1QFY2011 compared to the previous year. Net sales grew 27.5% year-over-year to Rs1,152 crore, exceeding estimates. Earnings before interest, taxes, depreciation, and amortization margins improved from the previous quarter due to a decline in other expenditures. The analyst maintains an "Accumulate" rating for Exide Industries due to reasonable valuations and expects net sales and profit to grow annually over the next two years.
McNally Bharat Engineering Co. Ltd. (MBE) reported disappointing financial results for the first quarter of fiscal year 2011, with revenues, earnings, and margins coming in below previous estimates. While MBE's order backlog remains strong at Rs. 4,803 crores, providing high revenue visibility, its subsidiary McNally Sayaji also saw subdued performance. However, analysts maintain a 'Buy' recommendation due to MBE's experience in various sectors, ongoing government infrastructure spending, and significant projected market opportunities over the next few years totaling Rs. 51,600 crores. Estimates have been revised downward to account for the weak quarterly performance.
JSW Steel reported lower than expected results for 1QFY2011 with net revenue of Rs4,779cr, down 12.2% quarter-over-quarter due to a decline in sales volume. EBITDA grew 64.7% year-over-year to Rs1,134cr but the margin increased only 646bps to 23.7% due to higher staff costs and other expenses. Net profit was Rs295cr, a 26.2% increase from a year ago but below estimates. JSW Steel finalized a strategic investment deal with JFE Steel worth Rs4,800cr that will help reduce debt and provide access to new technologies. Management expects sales volume and profitability to improve in the coming
1) For 1QFY2011, Punj Lloyd posted disappointing results with net sales declining 41.7% year-over-year. Operating profits declined 56.1% and the company reported a net loss of Rs 30.6 crore.
2) The top-line was lower than expected, leading the company to downgrade its FY2011 and FY2012 revenue estimates. Problem orders like Ensus and Heera are now out of the picture.
3) While past performance was weak, the outlook is more positive as slow-moving orders have picked up and most challenges are now behind the company. With many negatives priced in, the analyst maintains a "Buy" rating on expectations of improved performance in F
India Cements' net sales and profits declined significantly in the first quarter of fiscal year 2011 compared to the same period last year. Net sales decreased 8.1% and operating profit declined 71.2% due to a substantial decline in cement prices in Andhra Pradesh, which accounts for around 45% of the company's revenues. Net profit dropped 82.7% to Rs25cr as a result of the poor operating performance, despite a profit from selling shares in another company. The company expects pricing pressure to continue in the southern region in the coming quarters due to excess capacity.
Bharat Forge reported strong results for 1QFY2011 with net sales growing 75.7% year-over-year to Rs 630.1 crore, beating estimates. Operating margins improved significantly to 25.2% due to lower raw material costs and higher utilization levels. Net profit was Rs 59.4 crore, exceeding expectations due to improved volumes and operating leverage. The analyst recommends accumulating the stock given the better-than-expected performance and revised upward estimates.
Sadbhav Engineering reported a 42% increase in net sales and 83.8% increase in net profit for the first quarter of fiscal year 2011 compared to the previous year. The company saw robust growth due to a rise in order book over the last few quarters and has guided for over 35% revenue growth over the next 12 months. However, the analyst downgraded the stock to Reduce due to rich valuations and concerns over potential execution challenges due to a record high order backlog.
CESC reported a 33.7% year-over-year growth in revenue for the first quarter of fiscal year 2011, driven by the commissioning of its new 250MW Budge-Budge power plant. However, operating margins declined from the previous quarter due to a 90.6% year-over-year increase in other expenses. While revenue beat estimates, net profit growth was moderate at 4.8% year-over-year due to higher expenditure, growing at a faster pace than revenues. The company continues construction on its 600MW Chandrapur and Haldia power projects.
Exide Industries reported a 35.1% increase in net profit for 1QFY2011 compared to the previous year. Net sales grew 27.5% year-over-year to Rs1,152 crore, exceeding estimates. Earnings before interest, taxes, depreciation, and amortization margins improved from the previous quarter due to a decline in other expenditures. The analyst maintains an "Accumulate" rating for Exide Industries due to reasonable valuations and expects net sales and profit to grow annually over the next two years.
Sterlite Industries reported lower than expected results for the first quarter of fiscal year 2011. Net revenue grew 30.6% year-over-year to Rs5,925 crore, below Angel Research estimates, due to lower production from planned maintenance shutdowns and resource issues. EBITDA grew 48.3% to Rs1,452 crore but margins expanded less than expected. Net profit increased 49.9% to Rs1,008 crore, also below estimates. Segment performance was mixed, with copper improving but aluminum declining due to cost pressures. The results were impacted by higher costs and lower production than anticipated.
Exide Industries reported a 35.1% increase in net profit for the first quarter of fiscal year 2011. Net sales grew 27.5% due to a substantial increase in both original equipment and replacement auto battery sales. While raw material costs increased, operating margins improved on a quarter-over-quarter basis due to a decline in other expenditures and average lead prices. The analyst maintains an "Accumulate" rating for Exide Industries due to reasonable valuations and expectations for continued double-digit revenue and earnings growth over the next two fiscal years.
Ceat reported its results for the first quarter of fiscal year 2011. While the company's net sales grew 15.4% year-over-year to Rs. 778 crore, its operating profit declined 61% to Rs. 41 crore due to a sharp rise in raw material prices. The operating margin was 5.3% compared to 15.4% in the prior year quarter. Net profit fell 77% to Rs. 13.9 crore. However, results were marginally better than expected. The analyst maintains a 'Buy' rating on Ceat based on strong demand fundamentals in the tyre industry and expectations that margins will recover as the business model shifts towards more capital-intensive radial tyres.
JK Lakshmi Cement (JKLC) reported a 1,663bp year-over-year decline in operating margin to 17.4% in the first quarter of fiscal year 2011 due to an 8.7% fall in realizations and a 36% increase in power and fuel costs. Net profit declined 78.6% year-over-year to Rs. 17 crore. The analyst maintains a "Buy" rating on JKLC, revising the target price to Rs. 92, expecting the company to face relatively less pricing pressure due to its concentration in high-growth northern and eastern regions and benefit from increasing captive power capacity.
1) Sintex Industries reported a 1QFY2011 revenue growth of 37.5% year-over-year driven by strong performance in its monolithic, standalone pre-fab, and domestic custom moulding segments.
2) Net profit grew 30.1% year-over-year but declined 43.2% quarter-over-quarter due to one-time losses.
3) The analyst maintains a "Buy" rating on Sintex Industries with a target price of Rs385, citing the company's dominant position in the domestic plastics market, improving margins from international subsidiaries, and attractive valuations.
NTPC reported a 7.9% year-over-year increase in net sales for the fourth quarter of fiscal year 2010, slightly ahead of estimates. Operating profit grew 1.9% year-over-year due to a 2.3% increase in sales volumes from commissioning new plants and higher plant load factors, though margins declined. Net profit declined 4.5% due to one-time provisions and lower interest rates. The analyst maintains an "Accumulate" rating and target price of Rs230, seeing continued growth from NTPC's regulated business model and expansion plans offset by potential project delays.
1) Nestle reported a 16.9% increase in top-line to Rs1,480cr, slightly below estimates, due to higher volumes and limited price increases. Bottom-line grew only 2.3%, significantly below expectations, due to a spike in input costs.
2) Gross margins contracted 263bps and EBITDA margins fell 397bps as input costs rose substantially. Higher brand investments and other expenses also weighed on profits.
3) The analyst downgrades Nestle to Neutral and lowers earnings estimates due to higher input costs and competitive pressures. Valuations leave little upside potential given cost pressures.
Larsen & Toubro (L&T) reported modest results for the first quarter of fiscal year 2011 that were below analyst expectations on revenue but positively surprised on margins. Revenue grew 6.4% year-over-year to Rs. 7,885 crore, below estimates, due to flat performance in the engineering and construction segment. However, operating margins expanded significantly by 170 basis points due to lower subcontracting costs. The order backlog remained strong at Rs. 1,07,816 crore as of June 30, 2010 and order inflows were led by the power segment. While most positives are priced into the stock, further upside could come from value unlocking at subsidiary levels.
1) Finolex Cables reported a 50.4% year-over-year increase in net sales to Rs. 493.1 crore for the first quarter of FY2011, driven by strong growth in the electrical cables segment.
2) Operating margins declined to 8% from 15.2% in the prior year quarter due to higher raw material costs, though margins improved sequentially.
3) Net profit increased 4.5% year-over-year to Rs. 23 crore for the quarter despite margin pressure, with sales growth offsetting higher costs.
Hindalco reported strong results for the first quarter of fiscal year 2011. Revenue grew 29.2% year-over-year to Rs. 2,533 crore, driven by a 12.7% increase in aluminum shipments. Adjusted EBITDA more than doubled to Rs. 263 crore, resulting in adjusted EBITDA margins of 10.4%. However, net profit declined 65% to Rs. 50 crore due to higher interest and tax expenses. Management expects continued growth in demand and benefits from capacity expansions. The stock currently trades at attractive valuations and the analyst maintains a Buy rating with a target price of Rs. 204.
PTC India reported a 5.4% year-over-year increase in top-line for the fourth quarter of fiscal year 2010, however bottom-line declined 10.7% due to a 26.5% reduction in other income and a 39.2% rise in taxes. While sales volumes grew 46.7% year-over-year, average realizations declined 28% due to falling power prices. Operating profit increased 120.1% on a 40 basis point expansion in margins. The analyst maintains a buy recommendation based on an expected positive impact from new trading margin regulations and a fair value estimate of Rs136 per share.
Sarda Energy and Minerals reported strong results for the first quarter of fiscal year 2011. Net sales grew 132.8% year-over-year to Rs217 crore due to higher sales volumes and realizations of sponge iron and ferro alloys. EBITDA grew 973.2% year-over-year to Rs50 crore as margins expanded significantly due to lower raw material costs from captive coal and iron ore supplies. Adjusted net profit increased to Rs27 crore from a loss of Rs7 crore in the prior year quarter. The company is well positioned to benefit from backward integration, commercial production of pellets, and increased production of power and ferro alloys.
Tata Motors reported strong results for the first quarter of fiscal year 2011. Consolidated net sales grew 65% year-over-year to Rs. 27,056 crore, driven by higher domestic and JLR volumes as well as a 27% increase in JLR realizations. Consolidated operating profit jumped 667% to Rs. 3,855 crore and operating margins increased substantially to 14.2% compared to 3.1% in the prior year period. However, standalone performance was marginally below expectations with net sales up 63% to Rs. 10,416 crore and net profit falling 23% to Rs. 396 crore due to lower other income. While volumes grew 48% driven by strong
Bajaj Auto reported strong results for the fourth quarter of fiscal year 2010 that exceeded estimates. Net sales grew 80.5% year-over-year to Rs3,399 crore, driven by an 83.8% increase in volume. Operating profit margin expanded substantially to 22.9% compared to 15.2% in the prior year quarter. Net profit for the quarter was Rs529 crore, up 306% year-over-year and above estimates. For fiscal year 2011, management expects robust volume growth and maintains guidance of 20% operating profit margin despite rising raw material costs.
- Greenply Industries reported higher-than-estimated 1QFY2011 results, with net sales growing 47.7% year-over-year to Rs262 crore, driven by capacity expansion and higher utilization.
- EBITDA grew 28.6% to Rs31 crore, though EBITDA margin contracted 174 basis points to 11.7% due to higher raw material costs.
- Net profit declined 4.9% to Rs10 crore due to increased depreciation and interest expenses from a new plant.
Lupin reported in-line results for the first quarter of fiscal year 2011, with net sales of Rs1,312 crore, operating profit margin of 20%, and net profit of Rs196 crore. Key drivers of growth included strong sales of generic drugs in the US market, as well as expansion of Lupin's domestic field force in India. While the company saw a delay in FDA approval for oral contraceptive drugs, management does not expect this to impact its competitive position. The analyst maintains an 'Accumulate' rating for Lupin based on its scale in key markets like the US and India, as well as its pipeline of generic drug approvals.
Pratibha ind Result Update 4 qfy2010-110510Angel Broking
Pratibha Industries reported financial results for the fourth quarter of fiscal year 2010 that were in line with expectations. Operating margins improved significantly due to a reduction in raw material costs, boosting the bottom line. However, the company paid taxes at the marginal rate rather than claiming tax benefits. While the results were decent, the analyst maintains a neutral outlook on the stock given that positives are already reflected in the price.
PTC India reported a 121.8% quarter-over-quarter growth in net revenue to Rs. 2,758 cr for 1QFY2011, driven by a 36.7% year-over-year increase in sales volume. Operating profit grew 194.2% qoq and 85.3% yoy to Rs. 28 cr due to higher trading margins. However, net profit declined 16.7% yoy to Rs. 28 cr due to lower other income and higher taxes. Going forward, the company expects further volume growth as new projects come online and higher trading margins will boost profits.
Hindalco's subsidiary Novelis reported strong results for 4QFY2010. Top-line grew 24.8% year-over-year to US $2.42 billion as sales volumes increased 16.1% year-over-year. Adjusted EBITDA spiked 336% year-over-year to US $231 million. Novelis is focusing on increasing capacity in emerging markets, announcing plans to expand capacity in Brazil by 50% at a cost of US $300 million. Following the expiration of Novelis's metal price ceiling contracts and expected benefits from price increases and cost savings, the report maintains a "Buy" recommendation on Hindalco.
Pantaloon Retail reported a 25.3% year-over-year growth in net sales to Rs. 2,057.6 crore for the third quarter of fiscal year 2010, below expectations of 30.2% growth. Same store sales growth was 13.9% and 13.2% for value and lifestyle retailing respectively. Operating margins remained flat at 10.5% while net profit grew 62.7% to Rs. 55.9 crore due to sales growth and unchanged interest costs. The analyst maintains an accumulate rating and target price of Rs. 469 based on retail space expansion, revival in consumer sentiment, and organizational restructuring.
- The key Indian indices, Nifty and Sensex, opened flat but were unable to sustain gains and closed in the red.
- The top gainers were AXIS BANK, LT, and IDFC, while the biggest losers were KOTAK BANK, AMBUJACEM, and ICICIBANK.
- The market is showing a narrow range formation for the second consecutive day, indicating an absence of a clear trend direction. Support levels are seen at 17700/5300 and resistance at 17853-17900/5350-5364.
The document summarizes market performance and outlook for India on August 2, 2010. It provides details on the performance of domestic and global indices, sectors, and companies. It also discusses key factors that could influence the market that day, including support and resistance levels for indices to watch. Finally, it reviews the recent financial results of several major Indian companies.
Sterlite Industries reported lower than expected results for the first quarter of fiscal year 2011. Net revenue grew 30.6% year-over-year to Rs5,925 crore, below Angel Research estimates, due to lower production from planned maintenance shutdowns and resource issues. EBITDA grew 48.3% to Rs1,452 crore but margins expanded less than expected. Net profit increased 49.9% to Rs1,008 crore, also below estimates. Segment performance was mixed, with copper improving but aluminum declining due to cost pressures. The results were impacted by higher costs and lower production than anticipated.
Exide Industries reported a 35.1% increase in net profit for the first quarter of fiscal year 2011. Net sales grew 27.5% due to a substantial increase in both original equipment and replacement auto battery sales. While raw material costs increased, operating margins improved on a quarter-over-quarter basis due to a decline in other expenditures and average lead prices. The analyst maintains an "Accumulate" rating for Exide Industries due to reasonable valuations and expectations for continued double-digit revenue and earnings growth over the next two fiscal years.
Ceat reported its results for the first quarter of fiscal year 2011. While the company's net sales grew 15.4% year-over-year to Rs. 778 crore, its operating profit declined 61% to Rs. 41 crore due to a sharp rise in raw material prices. The operating margin was 5.3% compared to 15.4% in the prior year quarter. Net profit fell 77% to Rs. 13.9 crore. However, results were marginally better than expected. The analyst maintains a 'Buy' rating on Ceat based on strong demand fundamentals in the tyre industry and expectations that margins will recover as the business model shifts towards more capital-intensive radial tyres.
JK Lakshmi Cement (JKLC) reported a 1,663bp year-over-year decline in operating margin to 17.4% in the first quarter of fiscal year 2011 due to an 8.7% fall in realizations and a 36% increase in power and fuel costs. Net profit declined 78.6% year-over-year to Rs. 17 crore. The analyst maintains a "Buy" rating on JKLC, revising the target price to Rs. 92, expecting the company to face relatively less pricing pressure due to its concentration in high-growth northern and eastern regions and benefit from increasing captive power capacity.
1) Sintex Industries reported a 1QFY2011 revenue growth of 37.5% year-over-year driven by strong performance in its monolithic, standalone pre-fab, and domestic custom moulding segments.
2) Net profit grew 30.1% year-over-year but declined 43.2% quarter-over-quarter due to one-time losses.
3) The analyst maintains a "Buy" rating on Sintex Industries with a target price of Rs385, citing the company's dominant position in the domestic plastics market, improving margins from international subsidiaries, and attractive valuations.
NTPC reported a 7.9% year-over-year increase in net sales for the fourth quarter of fiscal year 2010, slightly ahead of estimates. Operating profit grew 1.9% year-over-year due to a 2.3% increase in sales volumes from commissioning new plants and higher plant load factors, though margins declined. Net profit declined 4.5% due to one-time provisions and lower interest rates. The analyst maintains an "Accumulate" rating and target price of Rs230, seeing continued growth from NTPC's regulated business model and expansion plans offset by potential project delays.
1) Nestle reported a 16.9% increase in top-line to Rs1,480cr, slightly below estimates, due to higher volumes and limited price increases. Bottom-line grew only 2.3%, significantly below expectations, due to a spike in input costs.
2) Gross margins contracted 263bps and EBITDA margins fell 397bps as input costs rose substantially. Higher brand investments and other expenses also weighed on profits.
3) The analyst downgrades Nestle to Neutral and lowers earnings estimates due to higher input costs and competitive pressures. Valuations leave little upside potential given cost pressures.
Larsen & Toubro (L&T) reported modest results for the first quarter of fiscal year 2011 that were below analyst expectations on revenue but positively surprised on margins. Revenue grew 6.4% year-over-year to Rs. 7,885 crore, below estimates, due to flat performance in the engineering and construction segment. However, operating margins expanded significantly by 170 basis points due to lower subcontracting costs. The order backlog remained strong at Rs. 1,07,816 crore as of June 30, 2010 and order inflows were led by the power segment. While most positives are priced into the stock, further upside could come from value unlocking at subsidiary levels.
1) Finolex Cables reported a 50.4% year-over-year increase in net sales to Rs. 493.1 crore for the first quarter of FY2011, driven by strong growth in the electrical cables segment.
2) Operating margins declined to 8% from 15.2% in the prior year quarter due to higher raw material costs, though margins improved sequentially.
3) Net profit increased 4.5% year-over-year to Rs. 23 crore for the quarter despite margin pressure, with sales growth offsetting higher costs.
Hindalco reported strong results for the first quarter of fiscal year 2011. Revenue grew 29.2% year-over-year to Rs. 2,533 crore, driven by a 12.7% increase in aluminum shipments. Adjusted EBITDA more than doubled to Rs. 263 crore, resulting in adjusted EBITDA margins of 10.4%. However, net profit declined 65% to Rs. 50 crore due to higher interest and tax expenses. Management expects continued growth in demand and benefits from capacity expansions. The stock currently trades at attractive valuations and the analyst maintains a Buy rating with a target price of Rs. 204.
PTC India reported a 5.4% year-over-year increase in top-line for the fourth quarter of fiscal year 2010, however bottom-line declined 10.7% due to a 26.5% reduction in other income and a 39.2% rise in taxes. While sales volumes grew 46.7% year-over-year, average realizations declined 28% due to falling power prices. Operating profit increased 120.1% on a 40 basis point expansion in margins. The analyst maintains a buy recommendation based on an expected positive impact from new trading margin regulations and a fair value estimate of Rs136 per share.
Sarda Energy and Minerals reported strong results for the first quarter of fiscal year 2011. Net sales grew 132.8% year-over-year to Rs217 crore due to higher sales volumes and realizations of sponge iron and ferro alloys. EBITDA grew 973.2% year-over-year to Rs50 crore as margins expanded significantly due to lower raw material costs from captive coal and iron ore supplies. Adjusted net profit increased to Rs27 crore from a loss of Rs7 crore in the prior year quarter. The company is well positioned to benefit from backward integration, commercial production of pellets, and increased production of power and ferro alloys.
Tata Motors reported strong results for the first quarter of fiscal year 2011. Consolidated net sales grew 65% year-over-year to Rs. 27,056 crore, driven by higher domestic and JLR volumes as well as a 27% increase in JLR realizations. Consolidated operating profit jumped 667% to Rs. 3,855 crore and operating margins increased substantially to 14.2% compared to 3.1% in the prior year period. However, standalone performance was marginally below expectations with net sales up 63% to Rs. 10,416 crore and net profit falling 23% to Rs. 396 crore due to lower other income. While volumes grew 48% driven by strong
Bajaj Auto reported strong results for the fourth quarter of fiscal year 2010 that exceeded estimates. Net sales grew 80.5% year-over-year to Rs3,399 crore, driven by an 83.8% increase in volume. Operating profit margin expanded substantially to 22.9% compared to 15.2% in the prior year quarter. Net profit for the quarter was Rs529 crore, up 306% year-over-year and above estimates. For fiscal year 2011, management expects robust volume growth and maintains guidance of 20% operating profit margin despite rising raw material costs.
- Greenply Industries reported higher-than-estimated 1QFY2011 results, with net sales growing 47.7% year-over-year to Rs262 crore, driven by capacity expansion and higher utilization.
- EBITDA grew 28.6% to Rs31 crore, though EBITDA margin contracted 174 basis points to 11.7% due to higher raw material costs.
- Net profit declined 4.9% to Rs10 crore due to increased depreciation and interest expenses from a new plant.
Lupin reported in-line results for the first quarter of fiscal year 2011, with net sales of Rs1,312 crore, operating profit margin of 20%, and net profit of Rs196 crore. Key drivers of growth included strong sales of generic drugs in the US market, as well as expansion of Lupin's domestic field force in India. While the company saw a delay in FDA approval for oral contraceptive drugs, management does not expect this to impact its competitive position. The analyst maintains an 'Accumulate' rating for Lupin based on its scale in key markets like the US and India, as well as its pipeline of generic drug approvals.
Pratibha ind Result Update 4 qfy2010-110510Angel Broking
Pratibha Industries reported financial results for the fourth quarter of fiscal year 2010 that were in line with expectations. Operating margins improved significantly due to a reduction in raw material costs, boosting the bottom line. However, the company paid taxes at the marginal rate rather than claiming tax benefits. While the results were decent, the analyst maintains a neutral outlook on the stock given that positives are already reflected in the price.
PTC India reported a 121.8% quarter-over-quarter growth in net revenue to Rs. 2,758 cr for 1QFY2011, driven by a 36.7% year-over-year increase in sales volume. Operating profit grew 194.2% qoq and 85.3% yoy to Rs. 28 cr due to higher trading margins. However, net profit declined 16.7% yoy to Rs. 28 cr due to lower other income and higher taxes. Going forward, the company expects further volume growth as new projects come online and higher trading margins will boost profits.
Hindalco's subsidiary Novelis reported strong results for 4QFY2010. Top-line grew 24.8% year-over-year to US $2.42 billion as sales volumes increased 16.1% year-over-year. Adjusted EBITDA spiked 336% year-over-year to US $231 million. Novelis is focusing on increasing capacity in emerging markets, announcing plans to expand capacity in Brazil by 50% at a cost of US $300 million. Following the expiration of Novelis's metal price ceiling contracts and expected benefits from price increases and cost savings, the report maintains a "Buy" recommendation on Hindalco.
Pantaloon Retail reported a 25.3% year-over-year growth in net sales to Rs. 2,057.6 crore for the third quarter of fiscal year 2010, below expectations of 30.2% growth. Same store sales growth was 13.9% and 13.2% for value and lifestyle retailing respectively. Operating margins remained flat at 10.5% while net profit grew 62.7% to Rs. 55.9 crore due to sales growth and unchanged interest costs. The analyst maintains an accumulate rating and target price of Rs. 469 based on retail space expansion, revival in consumer sentiment, and organizational restructuring.
- The key Indian indices, Nifty and Sensex, opened flat but were unable to sustain gains and closed in the red.
- The top gainers were AXIS BANK, LT, and IDFC, while the biggest losers were KOTAK BANK, AMBUJACEM, and ICICIBANK.
- The market is showing a narrow range formation for the second consecutive day, indicating an absence of a clear trend direction. Support levels are seen at 17700/5300 and resistance at 17853-17900/5350-5364.
The document summarizes market performance and outlook for India on August 2, 2010. It provides details on the performance of domestic and global indices, sectors, and companies. It also discusses key factors that could influence the market that day, including support and resistance levels for indices to watch. Finally, it reviews the recent financial results of several major Indian companies.
1) Marico reported a 13.4% increase in quarterly revenue to Rs. 790.1 crore, above estimates, led by 16% volume growth in its core brands Parachute and Saffola.
2) Earnings grew 27% to Rs. 73.7 crore after adjusting for tax rate declines, despite margins contracting.
3) The analyst upgrades Marico stock from "Reduce" to "Neutral" and increases earnings estimates by 2-3% based on strong volume growth and lower taxes boosting profits.
The document provides a market outlook and summary of key events from India on May 6, 2010. It includes the following:
1) Domestic indices closed lower as metal stocks fell with slumping metal prices, while banking stocks declined on fears of further monetary tightening.
2) Preliminary discussions were held between Bank of Rajasthan promoters and banks like ICICI and HDFC about a potential merger.
3) Jagran Prakashan acquired the print media business of Mid-Day Multimedia via a share swap deal valued at around Rs. 175 crore.
4) The government agreed to provide additional Rs. 14,000 crore to oil marketing companies to compensate most of their losses
The document provides a summary of derivative market activity in India on May 10, 2010. It notes that Nifty futures open interest increased by 1.61% while Minifutures increased by 3.70%. Key support and resistance levels are identified. Several stocks that saw increases or decreases in open interest are listed. Analysis of put-call ratios and historical volatility for various stocks is also provided. Bullish and bearish option strategies for Nifty are outlined. Finally, ongoing equity strategies are mentioned.
Indosolar manufactures solar photovoltaic cells and modules. It has a manufacturing capacity of 160MW as of now and plans to increase capacity to 260MW by 2012. The company relies heavily on government subsidies for the solar power industry. It has a robust order backlog of Rs. 1,012 crores but faces risks from declining subsidies globally, technological obsolescence, and volatile input prices which could impact its profitability. Given its limited operating history and dependence on subsidies, the document recommends avoiding the company's IPO.
Bosch reported strong results for 2QCY2010, with net sales growing 36% year-over-year to Rs. 1,700 cr, in line with expectations. Operating profit margin expanded by 122 basis points due to lower raw material costs and staff expenses. Net profit for the quarter grew 11% to Rs. 210 cr, broadly in line with estimates. Bosch maintained its Accumulate rating on the stock, expecting continued growth in auto demand to boost earnings in the coming years.
Oberoi Realty has a proven track record developing real estate projects in Mumbai since 1983. It differentiates itself by creating "destination developments" that integrate residential, commercial, retail, and community spaces. The company has a strong brand, timely project execution, and a well-capitalized balance sheet. Proceeds from the IPO will fund construction of ongoing projects and land acquisition, allowing Oberoi Realty to continue expanding its high-quality real estate development portfolio in Mumbai.
Blue Star reported a 25.2% year-over-year increase in net sales for the first quarter of fiscal year 2011, though margins declined and profit fell. While sales grew across all segments, higher input costs and lower commission income caused operating margins to drop 281 basis points year-over-year to 9.2%. Net profit declined 10% year-over-year due to the margin pressure and a change in accounting policy. However, the company's order backlog grew nearly 15% and the outlook for large orders remains positive.
Derivatives Report - September 15, 2010Angel Broking
The document provides a derivative report for India from September 15, 2010. It summarizes that the Nifty futures open interest decreased slightly while the Minifutures interest increased. The Nifty September future closed at a premium while the October future closed at a higher premium. Put-call ratios increased for some stocks. Some stocks saw increases and decreases in their open interest levels. The report also provides analysis on specific stocks and calls out trading strategies.
The document provides a summary of derivative market activity in India for March 30, 2010. It notes that open interest for Nifty futures increased by 3.79% while open interest for Minifity futures increased by 5.33%. The document also analyzes various stocks and indexes based on their open interest, price changes, put-call ratios, and other derivative indicators. It provides commentary on expected price movements and trading strategies.
- The key Indian stock market indices (Sensex and Nifty) declined slightly by around 0.4% on weak global cues and selling pressure in metal, banking and oil & gas stocks.
- Some major companies like NTPC, Sterlite, UltraTech, JSW Steel and Bosch reported their quarterly earnings, with most meeting or beating estimates. However, UltraTech's profits declined significantly year-over-year due to higher costs.
- OVL, along with OIL and IOC, are expected to soon sign a contract to develop an offshore gas field in Iran valued at over $5 billion. The deal offers limited profit potential given it is a service contract.
JSW Steel reported a 26.5% year-over-year increase in consolidated net revenue to Rs. 5,908 crore for the second quarter of fiscal year 2011, driven by higher sales volume and improved product mix. However, earnings before interest, taxes, depreciation and amortization (EBITDA) margin declined by 617 basis points to 17.3% due to higher raw material costs. While interest expenses declined, other income from foreign exchange gains supported a 15.6% rise in net profit to Rs. 373 crore for the quarter. The company expects benefits from upcoming raw material assets and power plants to help lower costs going forward.
ITC posted strong quarterly results with top-line growth of 28% above estimates, driven by growth in cigarettes, agriculture, and non-cigarette FMCG. However, earnings growth was below estimates at 27% due to margin contraction from lower margins in agriculture. Cigarette volumes grew around 8-9% while margins expanded. The analyst maintains an accumulate rating and revises estimates upward to reflect stronger non-cigarette revenue and lower losses, while maintaining cigarette growth outlook.
The markets opened on a positive note but closed lower as indices faced resistance at key levels. The Nifty closed down 0.80% at 6027 and Sensex closed down 0.92% at 19983. Among sectoral indices, IT and Realty declined the most while Healthcare rose. Cipla, Hero Honda, and BPCL gained the most while InfoSys, DLF, and Hindalco lost the most. The technical outlook is bearish if indices breach key support levels, while upside is limited by resistance levels. Pivot points are provided for 50 stocks.
Lakshmi Machine works quick take-130910Angel Broking
Lakshmi Machine Works (LMW) dominates the Indian textile machinery sector with around 70% market share. The company has a healthy order backlog of Rs3,300cr providing revenue visibility. LMW is expected to register top-line CAGR of 48.3% and bottom-line CAGR of 51.8% from FY2010-12E. At the current price of Rs2,476, the stock offers an attractive valuation. We recommend accumulating the stock with a target price of Rs2,819 over the next 12 months.
Consolidated Construction Consortium (CCCL) reported net sales of Rs.508 crore for 1QFY2011, in line with expectations. Operating margins of 8.3% and net profits of Rs.18.8 crore were also as expected. Order inflows grew 152% year-over-year to Rs.1,706 crore, indicating a revival in commercial and infrastructure segments. CCCL maintains an order backlog of Rs.4,527 crore, providing visibility for the next few years. While margins and profits met estimates this quarter, analysts maintain an 'Accumulate' rating given strong order backlog and expected 20% earnings growth over FY2010-12.
Steel Authority of India reported a 1.7% decline in EBITDA to Rs. 1,843 cr for the first quarter of FY2011, below Angel Research's estimate, due to lower sales volume and higher staff costs. Net profit declined 11.3% to Rs. 1,177 cr for the same reasons. While steel prices increased, sales volume fell 15.5% from a year ago. Staff costs rose sharply due to additional provisions for employee benefits. Going forward, the company is expected to benefit from strong domestic demand, but capacity expansion benefits will only be seen after FY2012. Angel Research maintains a Neutral rating on the stock.
Bhushan Steel reported lower sales volume in 1QFY2011 compared to the previous quarter, however average gross realizations increased. Despite lower top-line performance, margins expanded due to lower raw material costs. Net profit increased by 19.7% year-over-year due to margin expansion, though it declined 14.6% sequentially. The analyst maintains a 'Buy' recommendation and sees volumes growing over the next few years as expansion plans are completed.
Hindalco reported financial results for the first quarter of fiscal year 2011. Net revenue increased 32.9% year-over-year to Rs. 5,146 crore, driven by higher aluminum and copper volumes and prices. EBITDA grew 9.9% to Rs. 832 crore while net profit increased 11.2% to Rs. 534 crore. Hindalco is expanding aluminum production capacity significantly over the next few years, which is expected to drive further revenue and profit growth. The analyst maintains a Buy recommendation on Hindalco shares.
Bajaj Electricals reported a 35.2% year-over-year growth in net sales for the first quarter of fiscal year 2011, driven by strong growth in lighting and consumer durables. However, operating margins declined to 8.4% from 10% in the previous year due to higher raw material costs. Net profit increased 37.3% despite a decline in operating margins, aided by lower interest costs. Management expects sales growth of over 20% for fiscal year 2011 but anticipates pressure on margins to continue in the next quarter before improving in the second half of the year.
Reliance Industries reported lower-than-expected earnings for 1QFY2011. While net operating income rose 86.7% year-over-year due to growth in refining revenues, EBITDA was below estimates due to lower petrochemical sales volumes and refining margins. Net profit grew 32.3% year-over-year, meeting estimates. The analyst maintains a 'Buy' rating based on the company's growth outlook and believes it is undervalued relative to its peers.
FAG Bearing recorded strong results for the second quarter of 2010, with net sales growing 35% year-over-year to Rs. 273 crore, beating estimates. Operating profit increased 66% to Rs. 52 crore due to lower raw material costs and improved operating leverage. Net profit surged 82% to Rs. 33.8 crore, aided by robust top-line growth and lower taxes. The analyst maintains a "Buy" rating and revised earnings estimates upward based on the company's solid performance.
Ultratech Cement reported lower than estimated revenues and profits for the first quarter of fiscal year 2011 due to a decline in sales prices and higher operating expenses. Net sales were down 8.1% year-over-year due to lower volumes and a 4.9% decline in prices. Increased power and freight costs led to a 41.9% fall in operating profits. The analyst maintains a 'Buy' rating, seeing benefits from Ultratech's expanded national presence post an acquisition and expects a recovery in prices. The stock is valued at Rs1,087 based on estimated earnings growth and industry valuation multiples.
Ultratech Cement reported a 5.9% quarter-on-quarter decline in net revenue to Rs. 1,810 crore for 1QFY2011 due to a 3.6% decline in despatches and a 4.9% decline in realizations. Operating profit declined 41.9% year-on-year to Rs. 425 crore due to higher operating expenses from increased power costs and reduced coal supply. Net profit declined 41.9% to Rs. 243 crore for the quarter compared to the prior year period. The company faces pricing pressure due to its exposure to the southern region which was affected by lower demand and supply issues.
JP Associates reported a 51.8% year-over-year increase in net sales for the first quarter of FY2011, driven by strong growth in the cement, construction, and real estate verticals. However, operating margins declined significantly from 28% to 21.2% due to margin pressure, resulting in a 57.6% decrease in recurring earnings. While reported profits were up 5% due to exceptional gains, underlying earnings were down. The analyst maintains a buy rating but expects margins to recover, and forecasts JP Associates will become one of the fastest growing conglomerates in cement, power, and real estate.
NTPC reported a 7.8% year-over-year increase in net sales to Rs. 12,944 crores in the first quarter of fiscal year 2011, driven by lower plant load factors. Operating profit fell 9.6% year-over-year to Rs. 3,345 crores due to higher fuel and employee expenses. Net profit declined 16.1% to Rs. 1,842 crores for the quarter. While NTPC added new capacity, plant load factors declined for some key plants, affecting power generation and margins. The company plans further large capacity additions over the next two fiscal years to drive future growth.
ABG Shipyard reported a 1QFY2011 result that was marginally below estimates due to lower execution. While operating margins improved substantially due to lower costs, this was offset by higher depreciation expenses. The company's order backlog provides strong revenue visibility through FY2014, however its increasing debt levels are a concern. As a result, the analyst downgraded their rating on ABG Shipyard stock from "Buy" to "Accumulate" and lowered the target price.
GIPCL reported a 42.3% year-over-year increase in net profit to Rs42cr for the first quarter of fiscal year 2011, despite flat revenues. The bottom line growth was driven by lower tax expenses from tax refunds received for prior years. Operating profit grew 3.3% to Rs64cr on better realizations. The company maintains a buy rating with a target price of Rs135, expecting revenue and profit to grow at a CAGR of 32.5% and 28.3% through fiscal year 2012 driven by new plant capacity additions.
Nagarjuna Construction Company (NCC) reported disappointing 1QFY2011 results with revenues growing only 8.5% year-over-year, below expectations. Operating margins were in line with estimates at 9.7% however. The company maintained full-year revenue guidance of Rs5,800cr. NCC has a strong order backlog of Rs16,051cr, providing revenue visibility. While results were below estimates, management sees potential in its diversified operations and order backlog. The stock remains undervalued and analysts maintain a "Buy" rating given growth opportunities.
Ashok Leyland reported a 157% year-over-year growth in net sales for the first quarter of fiscal year 2011, driven by a 178% increase in vehicle volumes. However, operating profit margins of 10% were lower than expected due to lower growth in other business segments like engines and spare parts. Net profit jumped substantially to Rs. 123 crore compared to Rs. 7.8 crore in the prior year quarter, benefiting from higher sales volume and improved operating leverage. While volumes and sales grew strongly, margins were lower than estimates due to higher raw material costs and lower contribution from other business segments.
Ashok Leyland reported a 157% year-over-year growth in net sales for the first quarter of fiscal year 2011, which was lower than expected. While volumes grew substantially by 178% year-over-year, growth in other business segments was lower than expected. Operating margins of 10% were also lower than expected, though net profits jumped due to higher sales volume and improved operating leverage. The outlook for the domestic commercial vehicle industry remains positive on expected volume growth of 16-18% for fiscal year 2011.
Patel Engineering reported a 9.2% year-over-year increase in net sales for the first quarter of FY2011 despite high exposure to politically volatile Andhra Pradesh markets. Operating margins came in at 16.9%, slightly above estimates. The company maintained its guidance of 20% revenue growth for FY2011. Patel Engineering has a large order backlog of Rs. 8,000 crore and expects to gain further orders in the growing hydropower sector in India. However, the stock has underperformed peers recently due to concerns over Andhra Pradesh exposure, but these are believed to be short term issues.
National Aluminium's (Nalco) net revenue in 1QFY2011 increased 40.2% year-over-year to Rs. 1,292 crore, driven by higher realizations and sales volumes. Net profit increased 124.8% to Rs. 284 crore. EBITDA margin expanded significantly to 30.5% due to declines in raw material, power, and staff costs. While aluminum and chemical segments saw revenue growth, the energy segment's revenue declined 25.1% despite higher power generation. The company continues to face challenges around coal supply and has limited growth visibility beyond current expansion plans.
BGR Energy Systems reported strong results for the first quarter of fiscal year 2011. Revenue grew 191% year-over-year to Rs. 905 crore, driven by execution of EPC projects. Net profit increased 205.6% to Rs. 61 crore. Margins were compressed due to higher raw material costs but execution of large EPC contracts provides good revenue visibility. The company maintains its neutral rating on BGR Energy Systems due to its order backlog, transformation into a full EPC provider through potential JV with Hitachi, and growth opportunities in the power sector.
Sun TV reported strong 1QFY2011 results with 53% year-over-year revenue growth and 43% PAT growth. Revenues grew due to a 50% increase in advertising revenue, 84% growth in DTH subscription revenue, and 42% growth in analogue subscription revenue. Operating margins expanded 397 basis points to 81.7% due to cost rationalization and operating leverage. The company maintained its Accumulate rating based on continued earnings and cash flow growth despite increasing its FY2012 EPS estimates 2-5% to account for margin expansion.
National Aluminium reported a 47.3% year-over-year increase in net revenue to Rs. 1,604 crore for the fourth quarter of fiscal year 2010, exceeding estimates. EBITDA margins expanded substantially by 2,496 basis points year-over-year to 33.7% due to lower raw material, power, and staff costs. As a result, net profit increased 371.5% year-over-year and 152.3% quarter-over-quarter to Rs. 392 crore. However, the analyst maintains a "Sell" rating due to rich valuations compared to peers.
The Indian markets are expected to open higher, tracking gains in most Asian markets. Spain has asked for a bailout of up to €100 billion for its banking system. Chinese exports grew more than expected in May. In India, shares extended gains for a fifth session despite weak global cues as major central banks held off on additional stimulus. The key support and resistance levels for the Nifty are 5,023 and 5,114 respectively. L&T has bagged orders worth Rs. 483 crore to build commercial vessels in Qatar. Vedanta Resources has acquired a 24.5% stake in Raykal Aluminium for Rs. 201 crore.
Axis Bank reported a 27.0% year-over-year increase in net profit to Rs. 942 crore for the first quarter of fiscal year 2012, in line with analyst estimates. Business growth momentum slowed as advances declined 7.4% quarter-over-quarter and deposits fell 3.0% quarter-over-quarter, moderating the bank's cash-deposit ratio to 40.5% from 41.1% last quarter. However, asset quality remained healthy with slippage ratio declining to 0.8% and gross and net NPA ratios stable.
1) For 1QFY2012, Electrosteel Castings reported 16.4% sales growth but margins declined due to higher raw material costs. EBITDA fell 18.2% and net profit declined 7.2%.
2) While sales volumes grew, costs increased more due to a rise in raw material costs as a percentage of sales.
3) The company maintains a buy recommendation due to initiatives in steelmaking and backward integration that should lower costs starting in FY2013 and valuation remains attractive.
1) For 1QFY2012, Persistent Systems reported revenues of ₹224 crore, up 5.2% over the previous quarter and 23.6% over the same period last year.
2) EBITDA was ₹40 crore, up 5.3% over the previous quarter but margins declined.
3) PAT was ₹28 crore, down 16.8% over the previous quarter due to higher taxes.
4) Management maintained revenue guidance of 29% growth for FY2012 and expects PAT to remain flat despite higher tax rates.
HT Media reported a 22.7% year-over-year increase in revenue to ₹494 crore for the first quarter of FY2012. Revenue was also up 5.8% quarter-over-quarter. Advertising revenue grew 17% year-over-year, with 18% growth in English and 15% growth in Hindi. Operating profit rose 11.8% year-over-year to ₹87.8 crore due to higher other income and lower tax rates, although operating margins contracted by 174 basis points. The company maintained its Accumulate rating based on expectations of continued revenue growth and margin expansion.
The summary is:
1) The derivative report analyzes the performance of the Nifty futures, options, and key stocks from the previous trading session on July 18, 2011.
2) It provides details on changes in open interest, premium levels, volatility, and turnover for various derivatives contracts.
3) Trading strategies and technical analysis is also given for some stocks along with risk-reward profiles of sample spreads trades for the Nifty.
The market ended lower, with the Sensex and Nifty closing down 0.3%. Mid- and small-cap indices closed higher. Select heavyweights like Hindalco Industries and BHEL gained 1-3%, while TCS and Tata Motors lost 1-2%. In corporate news, Motherson Sumi Systems agreed to acquire an 80% stake in Peguform for €141.5 million. HDFC Bank, Cadila Healthcare, Crompton Greaves, and Ashok Leyland are scheduled to announce their quarterly results. The trend for the day will be decided by whether Nifty trades above or below the levels of 18,533/5,572 in early trade.
- GSM subscriber additions in India continued their declining trend in June 2011, with net additions of 9.6 million, down 10% from the previous month.
- All major operators except BSNL reported a drop in subscriber additions. Bharti and Vodafone each added 2.1 million subscribers.
- The total GSM subscriber base reached 598.8 million in June 2011, with Bharti, Vodafone, Idea and BSNL maintaining their major market shares.
The document provides a technical analysis of the Indian stock market indices Sensex and Nifty for the week of July 16, 2011. It summarizes that the indices declined over 1.5% for the week and are currently trading in a range between 18,326/5496 on the downside and 19,132/5740 on the upside. It notes that a break above or below this range would dictate the direction of the upcoming trend. The analysis also lists pivot levels for 50 Nifty stocks to watch in the coming week.
The document provides a summary of derivative market activity in India for July 18, 2011. Key points include:
- Nifty futures open interest increased 0.67% while Mini Nifty increased 3.48% as the market closed at 5581.10
- Nifty July futures closed at a premium of 5.85 points and August futures at a premium of 22.60 points
- Implied volatility of at-the-money options decreased from 18% to 17.3%
- Total open interest in the market was Rs. 135,158 crore with stock futures open interest at Rs. 34,675 crore.
The indices opened flat but traded choppily throughout the day. Metal, auto and realty stocks declined while IT stocks gained. The indices are currently trading in a range between 18,326-18,810/5496-5653 on the downside and 19,132-19,094/5740-5700 on the upside. A break above these resistance levels could lead to further gains while a break below support could result in losses extending to 17,805-17,950/5350-5400. Pivot levels for 50 Nifty stocks are provided.
- The key Indian stock indices declined slightly, with the Sensex and Nifty closing down 0.3%.
- GSM subscriber additions in India continued their declining trend in June across most major operators such as Idea, Bharti Airtel, and Vodafone. Total GSM subscriber addition was 9.6 million, down 10% from the previous month.
- Tata Motors reported flat annual global sales growth in June 2011 compared to the previous year.
- South Indian Bank reported a 41.2% year-over-year increase in net profit to Rs. 82 crores for the first quarter of fiscal year 2012, slightly below analyst estimates.
- Business growth remained strong, with advances growth of 31.2% and deposits growth of 35.5% year-over-year. However, net interest margins compressed by 29 basis points sequentially to 2.8% due to a sharp rise in the bank's cost of deposits.
- Non-interest income was boosted by treasury gains, but fee income growth was modest. Asset quality was stable with gross and net NPAs rising marginally, and provision coverage at a comfortable 73.1%.
Bajaj Auto reported marginally lower-than-expected results for the first quarter of fiscal year 2012, with net sales growth of 22.8% year-over-year driven by a 17.7% increase in volumes. However, operating margins contracted by 145 basis points quarter-over-quarter to 19.1% due to a 150 basis point increase in raw material costs. As a result, net profit grew by 20.5% year-over-year to ₹711 crore, which was slightly below analyst estimates. Going forward, the analyst expects further margin pressure and has revised downward its earnings estimates for fiscal years 2012 and 2013 to factor in higher raw material costs and changes to export incentives.
1) Tata Consultancy Services (TCS) reported strong results for the first quarter of fiscal year 2012, outperforming expectations with revenue growth of 6.3% over the previous quarter and 31.4% over the same quarter of the previous fiscal year.
2) A key highlight was 7.4% quarter-over-quarter growth in business volumes. While profit margins declined due to wage hikes, net profit remained flat due to foreign exchange gains.
3) Management maintained a positive outlook, highlighting strong demand environment and deal pipeline, and expects pricing increases later in the fiscal year.
The document summarizes the Indian stock market outlook and performance on July 15, 2011. It reports that domestic indices closed with modest gains of 0.1-0.4%, while global indices declined. Wholesale price inflation in India rose to 9.44% in June 2011, above estimates and persisting above 9% for seven months, driven by increases in primary articles and fuel costs. Key benchmark levels are identified for determining if the market may continue rallying or correct in the near term.
The summary is:
1) The derivative report analyzes the movement in Nifty futures, options, and individual stocks between July 14-15, 2011.
2) Nifty futures open interest decreased while mini Nifty open interest increased as the market closed at 5599.80.
3) Implied volatility of at-the-money options increased from 17.6% to 18%.
The Sensex and Nifty indices opened lower and traded with volatility, closing marginally lower. On the sectoral front, Realty, Banks and Healthcare gained while IT and FMCG fell. The advance-decline ratio favored advancing stocks. On the daily chart, prices tested but did not close above the downward gap area of 18,679-18,589/5,601-5,580 levels. Immediate resistance is seen at 18,735/5,633, while 18,449/5,541 is crucial support.
1) Infosys reported modest revenue growth of 3.2% qoq for 1QFY2012. EBITDA and margins declined due to wage hikes.
2) Guidance for 2QFY2012 revenue growth was lower than expected at 3.5-5% qoq. Annual revenue growth guidance was unchanged.
3) The analyst revised EPS estimates down and cut the target price to INR 3,200 due to macro concerns and muted guidance.
This document summarizes a derivative report from India Research dated July 13, 2011. Some key points:
- The Nifty futures open interest increased 0.51% while Minifty futures open interest rose 8.2% as the market closed at 5526.15.
- Implied volatility of at-the-money options increased from 18% to 19.75%. PCR-OI decreased from 1.20 to 1.15.
- Total open interest of the market is Rs. 125,816 crore and stock futures open interest is Rs. 33,500 crore.
- FII were net sellers of Rs. 969 crore in the cash market segment. Put-call
5 Tips for Creating Standard Financial ReportsEasyReports
Well-crafted financial reports serve as vital tools for decision-making and transparency within an organization. By following the undermentioned tips, you can create standardized financial reports that effectively communicate your company's financial health and performance to stakeholders.
Understanding how timely GST payments influence a lender's decision to approve loans, this topic explores the correlation between GST compliance and creditworthiness. It highlights how consistent GST payments can enhance a business's financial credibility, potentially leading to higher chances of loan approval.
Independent Study - College of Wooster Research (2023-2024) FDI, Culture, Glo...AntoniaOwensDetwiler
"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
[4:55 p.m.] Bryan Oates
OJPs are becoming a critical resource for policy-makers and researchers who study the labour market. LMIC continues to work with Vicinity Jobs’ data on OJPs, which can be explored in our Canadian Job Trends Dashboard. Valuable insights have been gained through our analysis of OJP data, including LMIC research lead
Suzanne Spiteri’s recent report on improving the quality and accessibility of job postings to reduce employment barriers for neurodivergent people.
Decoding job postings: Improving accessibility for neurodivergent job seekers
Improving the quality and accessibility of job postings is one way to reduce employment barriers for neurodivergent people.
Vicinity Jobs’ data includes more than three million 2023 OJPs and thousands of skills. Most skills appear in less than 0.02% of job postings, so most postings rely on a small subset of commonly used terms, like teamwork.
Laura Adkins-Hackett, Economist, LMIC, and Sukriti Trehan, Data Scientist, LMIC, presented their research exploring trends in the skills listed in OJPs to develop a deeper understanding of in-demand skills. This research project uses pointwise mutual information and other methods to extract more information about common skills from the relationships between skills, occupations and regions.
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CRISIL evaluates lenders in India by analyzing financial performance, loan portfolio quality, risk management practices, capital adequacy, market position, and adherence to regulatory requirements. This comprehensive assessment ensures a thorough evaluation of creditworthiness and financial strength. Each criterion is meticulously examined to provide credible and reliable ratings.
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Tata Steel
1. 1QFY2011 Result Update | Steel
August 13, 2010
Tata Steel BUY
CMP Rs527
Performance highlights Target Price Rs702
(Rs cr) 1QFY11(S) 1QFY10(S) chg (%) 1QFY11(C) 1QFY10(C) chg(%) Investment Period 12 months
Net revenue 6,471 5,554 16.5 27,195 23,292 16.8
EBITDA 2,836 1,681 68.8 4,433 (30) - Stock Info
EBITDA Sector Steel
43.8 30.3 1,357bp 16.3 - -
margin(%) Market Cap (Rs cr) 46,734
Rep. PAT 1,579 790 100.0 1,825 (2,209) - Beta 1.7
Source: Company, Angel Research 52 Week High / Low 737/409
Avg. Daily Volume 2163450
For 1QFY2011, Tata Steel reported consolidated net revenue of Rs27,195cr and
Face Value (Rs) 10
net profit of Rs1,825cr. Going forward, we expect Tata Steel Europe (TSE) to
BSE Sensex 18,167
report weaker performance on a sequential basis in 2QFY2011 due to lower
product prices, higher raw-material cost and lower volumes. On the other hand, Nifty 5,452
the company’s Indian operations are expected to remain strong because of higher Reuters Code TISC.BO
integration levels. We maintain our Buy rating on the stock. Bloomberg Code TATA@IN
Standalone performance impacted by lower volumes: During 1QFY2011, Tata
Steel’s net revenue declined 13.3% qoq to Rs6,471cr on account of lower
Shareholding Pattern (%)
production due to maintenance shutdown and power failure at Jamshedpur plant.
Promoters 31.3
Sales volumes were flat on a yearly basis but declined 17.7% qoq to 1.4mn
MF / Banks / Indian Fls 26.5
tonnes. Average realisation increased by 16.8% yoy and 8.3% qoq to
Rs42,871/tonne. EBITDA margin expanded by 1,357bp to 43.8% because of FII / NRIs / OCBs 15.5
cost-reduction initiatives and higher realisations. Indian Public / Others 26.7
Consolidated operations on a recovery: Net revenue increased by 16.8% yoy to
Rs27,195cr but was down 1.1% qoq. Group deliveries increased by 8.9% yoy to Abs. (%) 3m 1yr 3yr
6mn tonnes, declining 7.5% qoq. Capacity utilisation in Europe was 90% during Sensex 5.2 17.1 21.0
the quarter. In Europe, deliveries increased to 3.7mn tonnes as compared to Tata Steel (8.4) 12.0 (7.4)
3.3mn tonnes in 1QFY2010 but were down sequentially from 3.9mn tonnes in
4QFY2010. EBITDA/tonne for European operations increased to US $79 as
compared to a loss of US $117 in 1QFY2010. Adjusted EBITDA/tonne for the
quarter stood at US $105.
Key financials (Consolidated)
Y/E March (Rs cr) FY2009 FY2010E FY2011E FY2012E
Net sales 147,329 102,393 115,961 121,410
% chg 12.4 (30.5) 13.3 4.7
Net profit 4,951 (2,009) 6,483 7,158
% chg (59.9) - - 10.4
EPS (Rs) 59.0 (25.0) 73.1 80.7
EBITDA margin (%) 12.3 7.9 13.8 14.3
P/E (x) 8.9 - 7.2 6.5 Paresh Jain
P/BV (x) 1.6 1.7 1.4 1.2 Tel: 022-40403800 Ext: 348
RoE (%) 16.0 - 21.2 19.7 pareshn.jain@angeltrade.com
RoCE (%) 15.4 5.2 13.2 14.1
Pooja Jain
EV/Sales (x) 0.7 0.9 0.8 0.4
Tel: 022-40403800 Ext: 311
EV/EBITDA (x) 5.4 12.0 5.9 5.2 pooja.j@angeltrade.com
Source: Company, Angel Research
Please refer to important disclosures at the end of this report 1
2. Tata Steel | 1QFY2011 Result Update
Exhibit 1: 1QFY2011 standalone performance
Y/E March (Rs cr) 1QFY11 1QFY10 yoy % FY10 FY09 yoy %
Net Sales 6,471 5,554 16.5 25,022 24,316 2.9
Consumption of Raw Material 965 1,606 (39.9) 5,799 5,780 0.3
(% of Net Sales) 14.9 28.9 23.2 23.8
Power& Fuel 355 328 8.1 1,268 1,091 16.2
(% of Net Sales) 5.5 5.9 5.1 4.5
Staff Costs 578 506 14.2 2,361 2,306 2.4
(% of Net Sales) 8.9 9.1 9.4 9.5
Freight & Handling 352 315 11.7 1,357 1,251 8.5
(% of Net Sales) 5.4 5.7 5.4 5.1
Other expenses 1,385 1,118 23.9 5,284 4,754 11.1
(% of Net Sales) 21.4 20.1 21.1 19.6
Total Expenditure 3,635 3,873 (6.2) 16,070 15,182 5.8
Operating Profit 2,836 1,681 68.8 8,952 9,133 (2.0)
OPM (%) 43.8 30.3 35.8 37.6
Interest 328 342 (4.2) 1,508 1,153 30.9
Depreciation 280 253 10.7 1,083 973 11.3
Other Income 129 108 19.3 854 308 177.0
Exceptional Items 0 0 0 0
Profit before Tax 2,357 1,193 97.5 7,214 7,316 (1.4)
(% of Net Sales) 36 21 29 30
Tax 778 403 92.8 2,168 2,114 2.5
(% of PBT) 33.0 33.8 30.0 28.9
Profit after Tax 1,579 790 100.0 5,047 5,202 (3.0)
Source: Company, Angel Research
Exhibit 2: 1QFY2011 standalone – Actual vs. Angel estimates
(Rs cr) Actual Estimate Variation (%)
Net sales 6,471 6,906 (6.3)
EBITDA 2,836 3,096 (8.4)
EBITDA margin (%) 43.8 44.8 (100bp)
PBT 2,357 2,786 (15.4)
PAT 1,579 1,866 (15.4)
Source: Company, Angel Research
August 13, 2010 2
3. Tata Steel | 1QFY2011 Result Update
Exhibit 3: 1QFY2011 consolidated performance
Y/E March (Rs cr) 1QFY11 1QFY10 yoy % FY10 FY09 yoy %
Net Sales 27,195 23,292 16.8 102,393 147,329 (30.5)
Consumption of Raw Material 10,348 11,885 (12.9) 44,752 74,914 (40.3)
(% of Net Sales) 38.1 51.0 43.7 50.8
Power& Fuel 971 966 0.5 4,052 5,957 (32.0)
(% of Net Sales) 3.6 4.1 4.0 4.0
Staff Costs 3,777 3,963 (4.7) 16,463 17,975 (8.4)
(% of Net Sales) 13.9 17.0 16.1 12.2
Freight & Handling 1,586 1,156 37.2 5,549 6,025 (7.9)
(% of Net Sales) 5.8 5.0 5.4 4.1
Other expenses 6,080 5,352 13.6 23,535 24,331 (3.3)
(% of Net Sales) 22.4 23.0 23.0 16.5
Total Expenditure 22,762 23,322 (2.4) 94,350 129,202 (27.0)
Operating Profit 4,433 (30) - 8,043 18,128 (55.6)
OPM (%) 16.3 - 7.9 12.3
Interest 598 882 (32.2) 3,022 3,290 (8.1)
Depreciation 1,044 1,089 (4.1) 4,492 4,265 5.3
Other Income 59 204 (70.8) 1,186 266 346.4
Exceptional Items (60) (219) - (1,684) (4,095) -
Profit before Tax 2,791 (2,016) - 31 6,743 (99.5)
(% of Net Sales) 10.3 - 0.0 4.6
Tax 1,000 223 348.8 2,152 1,894 13.6
(% of PBT) 35.9 - - 28.1
Profit after Tax 1,790 (2,239) - (2,121) 4,849 -
Share of profit 42 9 127 61
Minority interest (6) 21 (15) 41
Net Income 1,825 (2,209) - (2,009) 4,951 -
(% of Net Sales) 6.7 - - 3.4
Source: Company, Angel Research
August 13, 2010 3
4. Tata Steel | 1QFY2011 Result Update
Key analyst meet takeaways
Production at Indian operations was affected by maintenance shutdown and
power failures at the Jamshedpur plant.
The ferro chrome segment was slightly affected by lower volumes in the low
value-added segment (Dolomite). However, average ferro realisation stood at
US $1,437/tonne as compared to US $847/tonne in 1QFY2010 and
US $1,152/tonne in 4QFY2010. The company reported EBITDA of
US $44mn in 1QFY2011 as against US $4mn in 1QFY2010.
Production at TSE was also affected by the shutdown of blast furnace and fire
incident at Ijmuiden.
In Thailand, despite political problems, performance was healthy as the
company sold products in new export markets. During 1QFY2011, the
Thailand subsidiary reported EBITDA of US $12mn as compared to US $1mn
in 1QFY2010. Operations at NatSteel benefited from strong construction
activity. As a result, NatSteel reported EBITDA of US $20mn in 1QFY2011 as
compared to US $9mn in 1QFY2010.
The rationalisation process at Corus is complete and currently the workforce
stands at 35,000 employees.
The 3mn tonne expansion in India is on track and expected to come on stream
by October–December 2011.
The raw-material projects in Mozambique and Canada are on track and
expected to be commissioned by 1QFY2012E. The total spending remaining
for the Mozambique project is US $100mn–150mn, while the Canadian
project will involve a capex of CAD350mn.
Net debt at the end of 1QFY2011 stood at US $9.2bn. During the quarter, the
company raised US $230mn through preferential allotment of shares and
warrants.
August 13, 2010 4
5. Tata Steel | 1QFY2011 Result Update
Result highlights
Standalone performance affected by lower volumes
Tata Steel’s standalone 1QFY2011 net revenue grew by 16.5% yoy to Rs6,471cr
but was down 13.3% qoq. During the quarter, production was lower on a
sequential basis due to maintenance shutdown and power failure at Jamshedpur
plant. Sales volumes were flat on a yearly basis, declining 17.7% qoq to 1.4mn
tonnes. Average realisation increased by 16.8% yoy and 8.3% qoq to
Rs42,871/tonne. EBITDA margin expanded by 1,357bp to 43.8% on account of
cost-reduction initiatives and higher realisations. Consequently, EBITDA grew by
68.8% yoy to Rs2,836cr. During the quarter, while interest expense declined by
4.2% yoy to Rs328cr, other income increased by 19.3% yoy to Rs129cr. As a result,
net profit came in at Rs1,579cr, registering growth 100% yoy.
Deliveries in Europe down sequentially
On a consolidated basis, 1QFY2011’s net revenue increased by 16.8% yoy, down
1.1% qoq, to Rs27,195cr. Group deliveries increased by 8.9% yoy to 6mn tonnes;
however, they declined by 7.5% on a sequential basis. In Europe, deliveries
increased to 3.7mn tonnes as compared to 3.3mn tonnes in 1QFY2010 but were
down sequentially from 3.9mn tonnes in 4QFY2010. EBITDA/tonne for TSE
increased to US $79 as compared to a loss of US $117 in 1QFY2010. Adjusted
EBITDA/tonne stood at US $105 for the quarter. Capacity utilisation in Europe was
90% during the quarter. Consolidated EBITDA stood at Rs4,433cr as compared to
a loss of Rs30cr in 1QFY2010. Consolidated net profit stood at Rs1,825cr as
compared to a loss of 2,209cr in 1QFY2010.
Exhibit 4: Subsidiaries’ performance
EBITDA/tonne trend (US $mn) 1QFY10 2QFY10 3QFY10 4QFY10 1QFY11
Tata Steel India
Steel deliveries (mn tonnes) 1.4 1.5 1.6 1.7 1.4
EBITDA (US $/tonne) 244 264 290 410 444
Tata Steel Europe
Steel deliveries (mn tonnes) 3.3 3.9 3.8 3.9 3.7
EBITDA (US $/tonne) (117) (96) 37 94 79
NatSteel
Steel deliveries (mn tonnes) 0.5 0.7 0.6 0.6 0.6
EBITDA (US $/tonne) 17 29 25 18 33
Thailand
Steel deliveries (mn tonnes) 0.3 0.3 0.3 0.3 0.3
EBITDA (US $/tonne) 4 57 27 10 40
Source: Company, Angel Research
August 13, 2010 5
6. Tata Steel | 1QFY2011 Result Update
Investment rationale
Brownfield expansion on track
Tata Steel’s 3mn tonne brownfield expansion plan is on track and is expected to be
commissioned by October–December 2011. We believe the company’s profitability
would be further supported by higher volumes from FY2013E.
Higher integration level for TSE to boost earnings
Tata Steel is in the process of developing a coking coal mine in Mozambique and
an iron ore mine in Canada to increase the integration levels of TSE. The projects
are expected to be commissioned by 1QFY2012E. The total spending remaining
for the Mozambique project is US $100mn–150mn, while the Canadian project
will involve a capex of CAD350mn. We expect the company’s backward
integration projects in Mozambique and Canada to translate into significant
earnings improvement for TSE.
Outlook and valuation
At the CMP of Rs527, the stock is trading at 5.9x FY2011E and 5.2x FY2012E
EV/EBITDA. Going forward, we expect TSE to report weaker performance on a
sequential basis in 2QFY2011 due to lower product prices, higher raw-material
cost and lower volumes. However, the company’s Indian operations are expected
to remain strong because of higher integration levels. We maintain a Buy view on
the stock with an SOTP-based Target Price of Rs702.
Exhibit 5: SOTP valuation
FY2012 EBIDTA (Rs) EV/EBIDTA (x) EV (Rs)
Tata Steel 11,592 7.0 81,141
TSE 4,622 5.0 23,112
Asia 1,114 5.0 5,568
Total EV 109,820
Net Debt 47,541
Market cap 62,279
Target Price 702
Source: Angel Research
Exhibit 6: Change in estimates
(Rs cr) Earlier estimates Revised estimates Upgrade/(downgrade) (%)
FY11E FY12E FY11E FY12E FY11E FY12E
Net sales 113,849 119,171 115,961 121,410 1.9 1.9
EBITDA 14,266 15,255 15,996 17,327 12.1 13.6
EBITDA margin (%) 12.5 12.8 13.8 14.3 126bp 147bp
PBT 7,059 7,089 8,732 10,034 23.7 41.5
Net income 5,406 5,074 6,483 7,158 19.9 41.1
Net margin (%) 4.7 4.3 5.6 5.9 84bp 164bp
Source: Company, Angel Research
August 13, 2010 6
13. Tata Steel | 1QFY2011 Result Update
Research Team Tel: 022 - 4040 3800 E-mail: research@angeltrade.com Website: www.angeltrade.com
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Disclosure of Interest Statement Tata Steel
1. Analyst ownership of the stock No
2. Angel and its Group companies ownership of the stock Yes
3. Angel and its Group companies' Directors ownership of the stock No
4. Broking relationship with company covered No
Note: We have not considered any Exposure below Rs 1 lakh for Angel, its Group companies and Directors.
Ratings (Returns) : Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)
Reduce (-5% to 15%) Sell (< -15%)
August 13, 2010 13