Dalal Street

Kotak Mahindra Bank stunned analysts on the street with results recording a PAT growth of 147% YoY. Broking profits up 215%+ (100% yoy rise – slight market share gains), and investment banking profits up 218%; and high league table positions. Buoyant primary/secondary markets key drivers;

Asset management group now manages almost $10b in assets – across domestic MF, portfolio management – domestic and offshore, and the more recent, alternative asset class. Key growth area – fees, potential performance fees upsides, business generating synergies and value generator. (more…)

Idea Cellular released disappointing results for 2Q FY08, with key disappointments on ARPU, network operating expenses, subscriber acquisition costs and deferred tax. Due to a sharp fall in ARPU, revenue grew 5.7% QoQ and 54.7% YoY to Rs15.6bn against our estimate of Rs16.4bn (expected growth of 11.3% QoQ). EBITDA margins also disappointed and fell 202bp on QoQ basis to 32.7%. A sharp reduction in margins led to a marginal reduction in EBITDA, which fell 0.4% QoQ to Rs5.1bn. EBITDA was 11% lower than estimates. PAT fell 28.6% QoQ to Rs2.2bn.

All the brokerage houses have conflicting ideas about Idea cellular. Macquarie wireless research expects the company to report an EPS of Rs 5.20 and Rs 6.75 for FY08 and FY09 and has set a target (more…)

NIIT reported revenue of Rs2.7bn (+33% yoy). EBITDA of Rs359m (+50% yoy). Higher taxes and depreciation, and lower equity income from NIIT Tech led to a net profit of Rs212 m (vs. estimate of Rs246m).

Individual business revenue grew 31% yoy (CIR est. 41%), while EBITDA margin of 23.8% was broadly in line. NIIT said that the price hike for career segment courses in non-metros was from Aug, vs. Jun for metros. Organic corporate business had slower revenue growth, while ElementK growth was in-line. The company introduced new courses for the insurance and (more…)