Apollo Hospitals vs Fortis Healthcare

India Healthcare and HospitalsApollo Hospitals which pioneered the concept of private hospitals in India along with Manipal healthcare [unlisted] is unable to expand beyond Tier-I cities and is facing saturation in its growth momentum. Apollo’ s revenue growth in the past 10 years has been steady with sales CAGR of 32% over FY2000-FY2007, and its number of beds has increased to around 8000 from 1500.

Apollo, which contains mostly steady state mature hospitals, has limited upside in terms of growth from existing units. As such, we think the newer hospitals should dilute EBITDA margins in the near term, and hence its expansion plans could impede returns. (more…)

Inflation at 8.75% ex-Oil

India’s Inflation is said to be rising the same way like SENSEX was a year ago 🙂 The wholesale price index [WPI] based inflation for the week ended May 31 rose to 8.75 per cent as compared to 8.24 per cent for the previous week. Inflation rate stood at 5.09 per cent for the corresponding week in the previous year.

During the week, in index for the primary articles group rose by 0.9 per cent while the index for manufactured products increased by 0.7 per cent. The index for the fuel group remained unchanged. [So more to come next week, taking into account the rise in fuel & gas prices] Among the food items, prices of egg, condiments and spices, urad, fruit and vegetable, mustard oil have increased.

Government has also revised inflation rate for the week ended April 5 to 7.71 per cent as compared to 7.14 per cent reported earlier. [What the fu*k ? Revision in retrospect ? It can happen only in India 😉 ]

Analysts were of the opinion that Inflation will soon kiss the double-digit mark 🙂

Garware Wall Ropes – Weak Fibers

Garware Wall Ropes (GWRL) has reported results for Q4FY08 lower than consensus estimates, owing to sluggish growth in the cordage segment.

Net sales increased 19% YoY to Rs 1.2bn, 8% short of estimates as the revenue share of the cordage business declined to 64% against the full-year average of 73%. Export sales have also been comparatively lower, comprising 33.4% of revenue in Q4FY08 as compared to 42% in FY07 and 36% in FY06. The EBITDA margin, at 13.2%, was 100bps lower due to rising crude prices, which led to higher input costs for cordage products.

For the current year, higher execution in the geo-synthetics business is likely to offset the slowdown in weak fibers of cordage.

Reliance Top 10 Stock Holdings + Bought + Sold

Here is how various fund managers at Reliance Mutual Fund churned their portfolio in May 2008. Ordered by Value.

Top 10 Stocks Bought by Reliance Mutual Fund:

Tata Consultancy Services Ltd
HCL Technologies Ltd
India Infoline Ltd
Biocon Ltd
Steel Authority of India Ltd
Lupin Ltd
CCL Products (India) Ltd
Zee Entertainment Enterprises Ltd
ACC Ltd
Shiv-Vani Oil & Gas Exploration Services Ltd

Top 10 Stocks Sold by Reliance Mutual Fund:
State Bank of India
Reliance Industries Ltd
Reliance Infrastructure Ltd
Oil & Natural Gas Corpn Ltd
Jaiprakash Associates Ltd
Tata Power Company Ltd
Larsen & Toubro Ltd
ICICI Bank Ltd
MphasiS Ltd
Punj Lloyd Ltd

Top-10 Holdings by Reliance Mutual Fund across various schemes:
Reliance Industries Ltd
Reliance Infrastructure Ltd
Divis Laboratories Ltd
Tata Steel Ltd
State Bank of India
Reliance Communication Ltd
ICICI Bank Ltd
Jaiprakash Associates Ltd
Maruti Suzuki India Ltd
Oil & Natural Gas Corpn Ltd

They are holding between 10-25% CASH in various equity schemes.

Inox Leisure – Operating Margins Horror Show

Inox LeisureInox Leisure reported a subdued topline growth for 4QFY2008 of 18.4% yoy to Rs39.3cr (Rs33.2cr) as lower Occupancy (4Q is a seasonally weak quarter) led to a muted 13.4% yoy growth in Footfall. The numbers are strictly comparable because of the inclusion of Calcutta Cine Pvt Ltd in this quarter. For FY2008, Inox registered 30.6% yoy growth in Revenues to Rs185cr (Rs141cr) driven by addition of property leading to a 35% jump in footfalls.

Operating Margins: Inox delivered a dismal performance for the quarter registering a 790bp decline in Operating Margin to 10% (17.9%) largely owing to a sharp 782bp increase in Other expenditure and 287bp rise in Staff costs owing to a lower revenue base.

At the end of March-08, Inox had 76 screens and 23,199 seats under operation. Inox will add – Faridabad (four screens with 1,108 seats) and Nagpur (four screens with 1,214 seats) taking its total tally to 84 screens.

Compared to Inox, PVR delivered much better results.

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