MindTree revenues of US$74.5m were up 5.7% qoq and 9.7% yoy (Exp: US$ 72.2m) – volume growth was flattish while realization improved on the back of productivity gains in fixed price projects. In INR terms, revenues of Rs3.4bn grew 4% qoq and 2% yoy. EBIT margin declined by ~110bps qoq – management indicated that this was primarily due to stronger INR, provision for higher leaves (US$ 0.7m), investment into handset business (US$ 0.6m), hardware pass-through cost (US$0.7m), higher SG&A spend. (more…)
Author: CP
Insitutional Investors Positive on HDFC Bank – Buy
HDFC Bank’s 4Q earnings were 6% above expectations, driven by margin surprise and significantly lower provisions vs. expectations. Margins surprised at 4.4% (although guided down for this year), there was a pick-up in wholesale loans (particularly retail vehicle loans), with stable cost ratios and improving asset quality.
It is entering a new credit cycle (more…)
Sell Sun Pharmaceutical Industries
Goldman Sachs in a report released just a while ago has recommended a SELL on Sun Pharmaceutical Industries. The latest verdict on Protonix has added another layer of risk around Sun. With Caraco’s sales continuing to decline, Sun’s US revenues in recent months have been dependent on generic Protonix. Sun has stated that it will continue to sell Protonix in the US. Coupled with these (more…)
FII Gives Thumbs Down to Reliance Industries Ltd
RIL reported F4Q10 results with EBITDA and profit 8% and 9% below our estimates, due to lower than expected earnings in the refining and petrochemical divisions. However, E&P business was in line with our expectation with EBIT growth of 260% YoY and 15% QoQ.
Refining: Reported GRM of $7.5/bbl were 50 cents below (more…)
Why HDFC’s Prashant Jain Invests in Nitesh Estates ?
HDFC AMC through its fund HDFC Monthly Income Plan Long Term Option has participated in the Anchor Investment Option of Nitesh Estates IPO, currently open for subscription. We don’t care what Citigroup does or other Financial Institution do, however, we have been tracking every move of Sr. Fund Manager Prashant Jain for the past 10 years and this is quite an abnormal move from Mr. Jain, especially in the Real Estate space. Almost all have recommended AVOID Nitesh Estates IPO.
Mr. Jain never took any exposure to real estate stocks except that of Ansal Properties, but then the HDFC Group had participated (more…)
Nestle India – Earnings Weakness Continues
Nestle India reported 1QCY10 results on April 22. Net sales were Rs14.8bn (+16.9% yoy) vs.consensus of Rs15bn and our estimate of Rs15.2bn. Net income reported was Rs2,019 mn (+2.3% yoy), 11.1% lower than consensus of Rs2,270 mn and 18.5% lower than our estimate of Rs2,477 mn. EPS reported was Rs20.94 (+2.3% yoy) vs. estimate of Rs25.69. (more…)