Author: CP

L&T reported 2QFY10 net profit of Rs 5804 mn, mostly in line with consensus estimate. Execution and, hence, sales growth in the quarter were tepid due to 1) a delay in clearances for infrastructure projects, and 2) lower demand for machinery and industrial products (sales down 26% yoy in 2QFY10).

However, order inflows for the quarter were up 47% yoy, after the 22% dip in 1QFY10. Management raised its order inflow guidance for FY2010 to 30%-35% yoy growth from 25%-30% and reiterated sales guidance of 15%-20% despite the sluggish execution in 1HFY10. (more…)

Hero Honda reported recurring PAT at Rs5.97bn was ~8% ahead of expectations, driven by EBITDA margins that surprised at 18.3% (130bps ahead of expectations) as SG&A costs were slightly lower than expected.

We think margins in the two-wheeler sector are close to peak levels. We expect margins to deteriorate from 4QFY10 on account of input cost pressures. EBITDA growth in FY11E will be driven by volumes (we forecast at ~10% CAGR over FY11/12E).
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The photo on your left is that of a less media savvy Dare Devil promoter of JP Associates – Founder and Chairman – Jaiprakash Gaur. Before you read into the research of JP Hydro and Associates, we recommend you to read the confidence Gaur family had in their company and projects they were executing as they pumped in INR 2,000 Cr into the company at a share value of whopping Rs 397 / share when the market Price was mere Rs 80. All other corporate big names like Kumar Birla canceled preferential allotment in 2008 as the stock price at taken a beating. (more…)