Indian Equity Research and Investment Strategy
Breaking News in Corporate India / Earnings Analysis
Dishman Pharmaceuticals & Chemicals (DPCL) has posted disappointing results for the Q4FY10 due to 24%YoY fall in CRAMS revenues. Total income declined by 13%YoY from Rs2.89bn to Rs2.50bn due to the slowdown in Carbogen Amcis (CA) and other CRAMS business. Net profit declined by 71% from Rs717m to Rs211m.
The company’s EBIDTA margin improved by 560bps from 24.2% to 29.8% mainly (more…)
In a conference call Prof. Kirit Parikh, ex-member, Planning Commission, and chairman of the expert group constituted by the Government on sustainable petroleum pricing, to share his views on the Indian energy sector and related issues in the broad economy.
Here are the key takeaways from the Conference Call with Kirit Parekh
Near-term impact on inflation and fiscal balances would be more than offset by the long-term benefits of fiscal stability for the Government. Current market conditions, esp. commodity prices would limit the impact. (more…)
The Indian Oil & Gas sector reforms are unlikely to move forward if not implemented in FY11E. In a similar no election period in 2000 price of subsidized products were hiked aggressively including 2.8x hike in kerosene price. Reforms if not implemented in FY11E will be difficult to implement thereafter.
From FY12E there is spate of elections in every year until FY15E. A group of ministers (GoM) appointed on the oil subsidy issue is (more…)
Unitech Ltd reported impressive sales of Rs11.3 bln (up 196% yoy, up 46% qoq) but operating margins (24.1%) again disappointed
(down 8.9 ppts yoy, flat sequentially) largely due to prior period cost adjustment and increase in construction cost. This resulted in the net profits of Rs1.79 bln, up 2% qoq (MSe – Rs1.72 bln). UT continues to capitalize 70-80% of its interest cost.
Sales performance was strong due to contribution from new projects (Garden II, Residences, Noida Unihomes and Mohali – Rs20 bln (more…)
Tata Power 4Q10 Cons. Rec. PAT at Rs3.5bn vs loss Rs931mn led by +12%YoY revenue (Coal revenue +27%YoY) with EBITDA +33%YoY on +259bp margin & lower tax Rs859mn vs Rs4.3bn despite 42% higher depreciation. However, Cons. Rep PAT was Rs9.5bn vs loss Rs849mn on Rs5.9bn of exceptional income vs Rs82mn in 4Q09. 4Q10 Power Generation 3.8bu (+7%YoY) while sales volume 3.7bu (+7%YoY). (more…)
Edelweiss’ 4Q10 profits were better than estimates on higher investment banking fees and a sharp expansion in the wholesale financed asset book. For the full year (FY10), profits were however 18% below our estimates. Overall, the excess balance sheet and systemic liquidity remained a drag on returns (lower working capital and arbitrage yields). (more…)