UTCL’s Q1FY15 revenue came in line with expectation while EBITDA and PAT disappointed owing to higher costs. Pricing environment is expected to remain subdued in Q2 due to on-set of monsoon.
Using P/E basis, at the CMP the stock quotes at a FY16 P/E of 10.3. We think investors could buy the stock on dips to Rs.365 – Rs.384 band (~9.5-10.00x FY16E EPS and ~5.25-5.5xFY16 EV/EBITDA) for target of Rs.422 (~11.0x FY16E EPS and ~6x FY16 EV/EBITDA) over the next 1 quarter.
Using P/E basis, at the CMP the stock quotes at a FY16 P/E of 10.3. We think investors could buy the stock on dips to Rs.365 – Rs.384 band (~9.5-10.00x FY16E EPS and ~5.25-5.5xFY16 EV/EBITDA) for target of Rs.422 (~11.0x FY16E EPS and ~6x FY16 EV/EBITDA) over the next 1 quarter.
Cairn India Q1FY15: Retrospective change in accounting impacts APAT, buy on ...IndiaNotes.com
Cairn India’s APAT fell significantly to Rs. 10,929.0 million (down 65.1% YoY and 64% QoQ) included an exceptional item of Rs.16274 million pertaining to impact from retrospective effect due to change in method of depreciation. Buy on dips
Ceat Q1FY15: Higher opex impact margins; Book profitsIndiaNotes.com
CEAT reported results which were below expectations. Sales were broadly in line with expectations but EBITDA margin declined by 160 bps QoQ. Book profits at current levels as there is no substantial upside from current levels.
Entertainment Network Ltd: Stock Price & Q4 Results Of Entertainment Network ...hdfcsecurities1
Entertainment Network Limited: Check out the institutional research report of Q4 result of Entertainment Network Ltd. ENIL’s 4QFY18 was in-line but muted. Revenue declined 3.7% YoY owing to high base and cut in ad volumes.
Cairn India Q1FY15: Retrospective change in accounting impacts APAT, buy on ...IndiaNotes.com
Cairn India’s APAT fell significantly to Rs. 10,929.0 million (down 65.1% YoY and 64% QoQ) included an exceptional item of Rs.16274 million pertaining to impact from retrospective effect due to change in method of depreciation. Buy on dips
Ceat Q1FY15: Higher opex impact margins; Book profitsIndiaNotes.com
CEAT reported results which were below expectations. Sales were broadly in line with expectations but EBITDA margin declined by 160 bps QoQ. Book profits at current levels as there is no substantial upside from current levels.
Entertainment Network Ltd: Stock Price & Q4 Results Of Entertainment Network ...hdfcsecurities1
Entertainment Network Limited: Check out the institutional research report of Q4 result of Entertainment Network Ltd. ENIL’s 4QFY18 was in-line but muted. Revenue declined 3.7% YoY owing to high base and cut in ad volumes.
Heidelberg Cement reports superlative set of numbers for Q1FY15; HoldIndiaNotes.com
HCIL reported superlative set of numbers, which were higher than estimates owing to sale of 0.6 mt inefficient Raigad unit and improving operating parameters. While topline grew by 13.6%. Post the sharp appreciation in stock price, rating is changed form buy to hold.
Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
What is a pi merchant?
A pi merchant is someone verified by pi network team and allowed to barter pi coins for goods and services.
Since pi network is not doing any pre-sale The only way exchanges like binance/huobi or crypto whales can get pi is by buying from miners. And a merchant stands in between the exchanges and the miners.
I will leave the telegram contact of my personal pi merchant. I and my friends has traded more than 6000pi coins successfully
Tele-gram
@Pi_vendor_247
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Introduction to Indian Financial System ()Avanish Goel
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
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The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
Ultratech Cement Q1FY15: Buy at CMP for target of Rs2592
1. RETAIL RESEARCH Page | 1
Scrip Code Industry CMP Recommendation* Target Time Horizon
ULTCEMEQNR Cement Rs. 2,484.4 Buy at the CMP and add on dips to Rs.2189‐Rs.2246 band Rs.2,592 1 quarter
*Applicable till next results are announced
UTCL recently reported its Q1FY15 results. The benefits of higher volumes have been lost due to lower realizations and higher interest cost owing to debt attributable to
the Gujarat capacity. Given below are some of the key highlights, which we came across while reviewing the results.
Key highlights of Q1FY15 results:
UTCL’s Q1FY15 revenue came in line with expectation while EBITDA and PAT disappointed owing to higher costs. The company’s average utilization rate improved to
~81% in Q1FY15 compared to 77% in FY14. The total volumes grew 16.1% YoY in Q1FY15.
Quarter Financials:
(Rs. in Cr)
Particulars Q1FY15 Q1FY14 % Chg Q4FY14 % Chg Remarks
Net Sales 5649.46 4959.4 13.9% 5831.9 ‐3.1%
Revenues increased by ~14% YoY led by volumes (+16% YoY) which was
partially offset by ~2% fall in YoY in realization)
Other operating income 42.63 22.7 88.1% 128.0 ‐66.7%
Total Operating Income 5692.1 4982.1 14.3% 5959.9 ‐4.5%
Expenditure
Increase/Decrease in stock ‐3.52 20.2 ‐117.5% 58.9 ‐106.0%
Raw Materials 797.55 690.7 15.5% 823.0 ‐3.1%
Purchase of Traded Goods 87.77 69.4 26.4% 91.5 ‐4.1%
Employees Cost 275.84 250.7 10.0% 235.2 17.3% Wage hikes led to increase in employee costs
Power & Fuel 1207.6 989.6 22.0% 1186.9 1.7% Increase in petcoke prices (+4% QoQ) led to higher P&F cost
Freight & Handling Expenses 1329.97 1101.8 20.7% 1365.5 ‐2.6% YoY Rise due to increase in Rail freight charges & increase in diesel prices
Other Expenditure 946.39 787.9 20.1% 927.9 2.0%
Total Opex 4641.6 3910.3 18.7% 4688.8 ‐1.0%
EBIDTA 1050.5 1071.8 ‐2.0% 1271.1 ‐17.4%
Weaker realizations, higher energy costs (petcoke price +4% QoQ), higher
staffs cost, higher spend of sales & marketing and other cost impacted.
EBIDTA Margins % 18.6% 21.6% 21.8%
Other Income 213.11 165.6 28.7% 57.7 269.1%
Interest Expenses 100.22 66.0 51.8% 73.9 35.5%
Higher debt to fund capex & take‐over of Jaypee's Cement plant has led to
increase in interest expenses
Depreciation 264.5 252.1 4.9% 278.5 ‐5.0%
Change in useful life assumptions on certain fixed assets as per Company
Act 2013 led to Rs350mn lower depreciation being reported this quarter.
PBT 898.9 919.2 ‐2.2% 976.4 ‐7.9%
PBTM % 15.9% 18.5% 16.7%
Tax 273.31 246.6 10.8% 138.4 97.5%
RETAIL RESEARCH July 24, 2014Ultratech Cement Ltd (UTCL) – Q1FY15 Result Update
2. RETAIL RESEARCH Page | 2
Effective Tax Rate % 30.4% 26.8% 14.2%
Net Profit 625.6 672.6 ‐7.0% 838.0 ‐25.4%
Lower EBIDTA, higher interest cost (+52% YoY) and higher Tax rate (+30.4%
YoY) dragged PAT down (Rs.6.26 bn ‐7% YoY) despite higher other income
(+28.7% YoY).
NPM % 11.1% 13.6% 14.4%
Equity Capital 274.36 274.2 0.1% 274.2 0.0%
EPS 22.8 24.5 ‐7.1% 30.6 ‐25.4%
Total Volumes (Mn Tons) 11.96 10.3 16.1% 12.5 ‐4.4% Recent capacity additions led to YoY growth in dispatches
Blended Realisation (Rs./Ton) 4723.6 4815.0 ‐1.9% 4,662.2 1.3%
Prices in North and West remained stable QoQ post the sharp rise in
Q4FY14.
(Source: Company, HDFC sec)
Some observations on Q1FY15 results:
Cost per ton analysis:
Particulars Q1FY15 Q1FY14 % Chg Q4FY14 % Chg Remarks
Increase/Decrease in stock ‐2.9 19.6 ‐115.0% 47.1 ‐106.3%
Raw Materials 666.8 670.6 ‐0.6% 657.9 1.4%
Purchase of Finished Goods 73.4 67.4 8.9% 73.1 0.3%
Employee Cost 230.6 243.4 ‐5.2% 188.0 22.7% Employee cost up QoQ owing to lower actuarial provision in Q4FY14
Power & Fuel 1009.7 960.8 5.1% 948.8 6.4% The increase in fuel costs reflects higher pet coke price (+4% QoQ).
Freight & Handling Expenses 1112.0 1069.7 4.0% 1091.6 1.9% The sustained diesel price increases led to higher freight costs (+4% YoY).
Other Expenditure 791.3 765.0 3.4% 741.8 6.7%
Total Cost 3880.9 3796.4 2.2% 3748.4 3.5%
EBIDTA 878.3 1040.5 ‐15.6% 1016.1 ‐13.6%
(Source: Company, HDFC sec)
Other Highlights:
UTCL’s revenue increased 14% YoY to Rs56.5 bn in Q1FY15, led by 16.1% YoY (‐4.4% QoQ) rise in volume to 12mmt, which was partially offset by 1.9% YoY (+1.3%
QoQ) decline in net realization to Rs4,724/tonne. Inclusion of sales from the recently acquired Gujarat units of Jaypee Corporation for part of June helped growth in
volumes. Further, the company’s freight, power & fuel and other expenses grew 4.3%/5.4%/4% YoY to Rs1,112/1,010/791 per tonne during the quarter. Consequently,
UTCEM’s EBITDA margin contracted 332bps YoY to 17.8%. The company’s EBITDA/tonne shrunk 17% YoY to Rs843/ton. Also, the company’s tax rate increased to
30.4% in Q1FY15 compared to 26.8% in Q1FY14 (14.2% QoQ). Consequently, the company’s net profit decreased 7% YoY to Rs6.3 bn.
• The combined cement and clinker sales was 11.70 MnT (10.08 MnT) while it was 2.57 LmT (2.50 LmT) for white cement and wall care putty. Weak white cement sales
impacted blended realizations and margins.
Management guided for cement demand growth over 7‐8%, with double digit growth in H2FY15.
3. RETAIL RESEARCH Page | 3
Debt at end of Q1FY15 stood at ~Rs.100bn, with cash and liquid investments of Rs.50bn.
During the quarter, the Company completed the acquisition of the Gujarat Units of Jaypee Cement Corporation Limited comprising of an integrated Unit at Sewagram
and a grinding Unit at Wanakbori with a combined capacity of 4.8 mtpa. With this acquisition the cement capacity of the Company stands at 58.8 mtpa in India. The
merger became effective from 12th June, 2014. Post this merger, UTCL’s domestic capacity increased to 58.8m tones, with clinker capacity in place for another 5.0
mTPA grinding capacity. Along with the ongoing Shambhupura expansion (3 mTPA), UltraTech will have ~68 mTPA by FY16 end domestically.
12.5 mtpa new capacity addition/acquisition majority in its high utilization West & East Zone could help improve growth.
South prices jumped substantially in late June (price up Rs30‐80/bag). Realization for Q1FY15 was down ~2% yoy (+1% qoq) as the impact of price increase of Rs30‐
80/bag in South India in June‐14 was effective for only 1month in the quarter. Prices in North and West remained stable qoq post the sharp rise in Q4FY14. During the
quarter, domestic cement sales volume improved by 14% over the corresponding period in FY14. However, prices continued to remain under pressure. Variable cost
increased by 3% mainly on account of increase in prices of petcoke and input material.
The Company’s on‐going capex are on track, indicating that expansion at Rawan (Chattisgarh) and Sambhapura (Rajasthan) would be operational in FY15. During the
quarter, it commissioned a 25MW thermal power plant at Rajashree Cement, Karnataka and a 6.5 MW Waste Heat Recovery system at Awarpur, Maharashtra. Post
this capex, overall installed capacity increased (including WHRS) to 709 MW (catering to over 81% of company’s power requirements).
Concerns
Additional capacities coming on stream across the country could result in capacity utilisation rates coming down thereby adding pressure on margins.
Being a large exporter of Cement, UTCL’s earnings are sensitive to export realizations and forex fluctuations.
Rise in cost of imported coal, gypsum, flyash and rupee depreciation could impact costs and profitability.
The Competition Commission of India (CCI) upheld the complaint of alleged cartelisation against certain cement manufacturing companies including the Company. The
CCI has imposed a penalty of Rs.1,175.49 cr on UTCL. UTCL filed an appeal against the Order before the Competition Appellate Tribunal (COMPAT). COMPAT has
granted stay on the CCI order on condition that the Company deposits 10% of the penalty, amounting to Rs.117.55 cr. The same has been deposited by the Company.
The Company backed by a legal opinion, continues to believe that it has a good case and accordingly no provision has been made in the accounts.
Conclusion & Recommendation
UTCL’s Q1FY15 revenue came in line with expectation while EBITDA and PAT disappointed owing to higher costs. Current valuations factor in for potential recovery in
FY15/16, benefit of which could be diluted due to initial impact of recent acquisition of Jaypee's Gujarat plant. Full impact of Rail freight increase, increments to staff due
in Q2, clean energy cess hike could also result in continued pressure on margins in Q2.
4. RETAIL RESEARCH Page | 4
Pricing environment is expected to remain subdued in Q2 due to on‐set of monsoon. However, the long term view is one of optimism driven by hopes of demand revival
topped up by a solid infrastructure push. Given a large extant capacity, spread across the country UTCL remains best placed to benefit from a revival in demand. Stable
government would be key driver of demand and pricing recovery from H2FY15 onwards. The recent demand surge in Northern & Central region could help in sustaining
prices and bottoming out of prices in southern region should further aide margin recovery. However after reporting double digit volume growth for the past two
quarters, volume growth could fall a bit going forward. Higher tax on FMP and other debt products proposed in the latest Budget could also impact the effective tax rate
and the PAT margins.
Management pointed out that cement demand is slated to grow around 7‐8%, with expected double digit growth in H2FY15. The key value drivers will be renewed
government focus on housing and infrastructure spending.
We have introduced estimates of FY16 and we are revising our FY15 estimates (Revenues upgraded owing to additional capacity, while EBITDA and PAT margin down
owing to higher costs). UTCL is trading at an EV/tonne of USD~180/Mt of its FY16 capacities and EV/EBIDTA of 12.4x. At the CMP of Rs.2,484.4 the stock is trading at
21.5x FY16E EPS of Rs.115.2.
In our Q4FY14 result update dated April 28, 2014, we had stated that investors could buy the stock in the Rs.1,933‐2,023 band for a target of Rs.2,205 over the next one
quarter. Post the issue of the report, the stock made a low of Rs.1,953 on May 08, 2014 and a high of Rs.2868 on June 18, 2014.
We think that investors could buy the stock at the CMP and add in the Rs.2189‐2246 band (19.0‐19.5x FY16E EPS) for a target of Rs.2,592 (22.5x FY16E EPS) over the
next one quarter.
Particulars FY11 FY12 FY13 FY14 A FY15 (E)* FY15 (RE)* FY16 (E)*
Operating Income 13209.9 19085.6 21156.1 21443.7 23481.4 24446.0 28462.9
PBIDT 2621.5 3240.6 4839.3 4034.8 4602.3 4693.6 597.7
PBIDTM% 19.8% 17.0% 22.9% 18.8% 19.6% 19.2% 21.0%
PAT 1342.4 2403.3 2677.7 2212.8 2465.5 2420.2 3159.4
PATM% 10.2% 12.6% 12.7% 10.3% 10.5% 9.9% 11.1%
EPS 49.0 87.7 97.7 80.7 89.9 88.2 115.2
PE (x) 51.5 28.8 25.8 31.3 28.0 28.6 21.9
* - Quick Estimates, A- Actuals (Source: Annual Report, HDFC sec Estimates)
Analyst: Sheetal Poonawala Email ID: sheetal.poonawala@hdfcsec.com
RETAIL RESEARCH Tel: (022) 3075 3400 Fax: (022) 2496 5066 Corporate Office
HDFC securities Limited, I Think Techno Campus, Building - B, "Alpha", Office Floor 8, Near Kanjurmarg Station, Opp. Crompton Greaves, Kanjurmarg (East), Mumbai 400 042 Phone: (022) 3075 3400 Fax: (022)
2496 5066 Website: www.hdfcsec.com Email: hdfcsecretailresearch@hdfcsec.com
Disclaimer: This document has been prepared by HDFC Securities Limited and is meant for sole use by the recipient and not for circulation. This document is not to be reported or copied or made available to
others. It should not be considered to be taken as an offer to sell or a solicitation to buy any security. The information contained herein is from sources believed reliable. We do not represent that it is accurate or
complete and it should not be relied upon as such. We may have from time to time positions or options on, and buy and sell securities referred to herein. We may from time to time solicit from, or perform investment
banking, or other services for, any company mentioned in this document. This report is intended for non-Institutional Clients