Reliance Infra (RELI) had weak 3Q10 with Rec. PAT Rs2.7bn -30%YoY on non recognition of Rs580mn of profit on electricity sale of Rs700mn (delayed tariff hike in Mumbai License area – MLA), weak execution in EPC (sales -7%YoY), higher depreciation (+41%YoY) and lower treasury income (-27%YoY). However, Rec. PAT would be -15%YoY if profit of Rs580mn has been considered. Reported PAT +10%YoY due to loss of Rs1.4bn on derivative instruments last year. E&C order backlog was Rs190bn – 5.9x FY10E sales. (more…)
Year: 2010
India Earnings Season So Far – Mixed Bucket
Aggregate earnings growth for Sensex companies at 20% yoy was in line with expectations. The breadth was however disappointing. Sectorally, only IT services exceeded expectations.
Revenue growth was driven by cyclical sectors benefiting from a weak base effect, be it commodity prices for global sectors or weak volumes for local cyclicals. (more…)
New Location for Research & Analysis
You asked for it, you have it. We received e-mails from Readers asking for more from the research. In order to satiate the needs of our readers, we had to migrate to a new content publishing platform. Location of Equity Research is here.
In the days to come, we will unveil a new research page with lot of Analytics focused entirely on Research, never before done in the history of Dalal Street.
You can continue to Browse the Old Site here or in the Archive Section.
Pre-budget correction playing out – Merrill
A pre-budget correction in the Indian equities market is playing out with the rise of CRR. Analysts expect a market consensus on increased excise duties in the budget in February end as the Government scales back its fiscal stimulus program. Bofa-Merrill sees a weakness in the markets over next few weeks in the run up to the budget that may offer a better buying opportunity. (more…)
IPO Coverage is MOVED
The IPO Coverage from the Best Analysts on the Street is now Moved to the Following Location – IPO India Research and Analysis.
Here is a link to Archives of Past IPO Research.
CRR Hike and Impact on Indian Banks + Markets
The Reserve Bank of India (RBI) often likes to spring a small surprise, and today’s meeting was no exception. Contrary to market expectations, the RBI raised the CRR by 75bps v/s expectations of 50bps. RBI has raised its growth estimate for FY10 from
6% with an upward bias, to 7.5%.
The RBI raised its inflation projection, it has stated that inflation expectations are on the rise and warned of further upside risks emanating from: oil, below average monsoons in 2010, and capital flows. RBI also pointed out that large fiscal deficit is a far bigger risk to both short-term and medium-term. (more…)