Category: Breaking Corporate India Earnings News

Here is how various Banks and HFCs have lent to the retail Indian borrower in the Housing Finance Market.

• ICICI Bank and ICICI Home Finance Ltd 19%
• HDFC Ltd 14%
• State bank Of India 13%
• LIC Housing Finance Ltd 6%
• IDBI Bank Limited and IDBI Home Finance Ltd 4%
• Punjab National Bank and PNB Housing Finance Ltd 3%
• Bank of India 3%
• Syndicate Bank 2%
• Axis bank 2%
• Bank of Baroda 2%

And the Top Non-Housing finance Companies who have once again lent to the Retail Indian borrower as Personal Loans, Auto Loans, Credit Cards, Consumer Durable Financing etc,

• ICICI Bank 20%
• State Bank of India 12%
• HDFC Bank 10%
• Punjab National Bank 5%
• Shriram Transport Finance Corporation Ltd 4%
• Citifinancial Consumer Finance India Ltd 3%
• Bank of India 3%
• Canara Bank 3%
• Bank of Baroda 3%
• Reliance Capital Limited 3%

Aditya Birla Nuvo’s 2Q FY09 net loss stood at Rs1.05bn, vs loss of Rs283mn in 1Q 09. going forward in FY09, the company is expected to report a Loss.

Pending promoter warrants imply ~Rs34bn (~50% of standalone FY08 capital employed) of potential cash infusion for the Co. The warrants are live until Aug ’09 but we see low likelihood of subscription as the exercise price of Rs2007/sh is ~4-5x current sh. price. In the absence of promoter funding, we expect the capex & growth plans to be scaled back (partly factored into life-insurance assumptions).

ABNL has a 25% stake in Idea Cellular which yields to Rs 530 / share of ABNL pro-rated. ABNL’s financial services business is valued at an enterprise value of Rs686/sh (down 30% vs earlier SoP). Enterprise value of ABNL’s remaining businesses stands at Rs431/sh. Net Debt is at Rs 773 / share as we no longer expect the Birla Group management to subscribe to Warrants at 4 times the CMP.

Glenmark’s 2Q PAT (Rs1.18bn) came in 5% ahead of MLe driven by strong 50% topline growth and stable 30%+ EBITDA margin. US generics business grew sharply by 117% whereas Latam and RoW markets growth is back on track. Revise core earnings estimates by 8-9% to reflect lower margins.

With 35 products in market, US generics business grew 117% YoY (Rs1.76bn) leading to overall generics business growth of 86%. Impact of new launches (out of 40 ANDAs pending approval) is likely to reflect in the next few qtrs. Latam and SRM markets bounced back after a weak 1Q and are expected to show strong growth going forward. Domestic business growth is robust at 17% (vs industry grwth of 11% and guidance of 15%). Milestone guidance maintained for FY09E.

Fully Diluted EPS is expected to be Rs 30 for FY09.

We are presenting to you the list of companies from BSE-500 which are quoting below the Cash Price / Share in the Books of Accounts.

Company Name Stock Price Cash/Share
Aftek Ltd. 16 32.43
Allahabad Bank 53.1 157.65
Alok Industries Ltd. 17.75 86.56
Andhra Bank 51.15 117.41
Bank Of Baroda 273.55 636.08
Bank Of India 256.45 338.95
Bank Of Maharashtra 27.35 98.16
Bharati Shipyard Ltd. 79.45 82.33
Canara Bank 174.05 442.04
Central Bank Of India 40.25 317.70
Corporation Bank 227.2 621.57
Federal Bank Ltd. 150.75 160.31
Gitanjali Gems Ltd. 105.3 132.02
Hinduja Ventures Ltd. 109.55 145.49
I C I C I Bank Ltd. 365.55 407.17
I D B I Bank Ltd. 68.3 121.26
I F C I Ltd. 22.95 45.67
I N G Vysya Bank Ltd. 180.65 310.66
I V R Prime Urban Developers Ltd. 47.25 56.10
Indiabulls Financial Services Ltd. 106.8 284.25
Indiabulls Securities Ltd. 26.05 42.90
Indian Bank 135.5 157.60
Mercator Lines Ltd. 33.3 36.15
Prithvi Information Solutions Ltd. 38.5 120.49
Punjab National Bank 473.1 609.82
Ruchi Soya Inds. Ltd. 40.75 50.82
State Bank Of India 1324.3 1,402.29
Syndicate Bank 60.1 223.33
Vijaya Bank 31.5 37.25

In a bid to attract capital flows, policy makers have further relaxed norms for ECBs – this is the third time in the last few weeks. Key measures include:

• Permitting companies to bring back the entire US$500mn for rupee expenditure (this was earlier limited to US$100mn for infrastructure companies and US$50mn for corporates).
• Corporates who had already raised ECBs, but were prohibited by earlier guidelines to bring funds in for domestic use, can now bring these onshore. This may have some impact on near-term inflows.
• The minimum avg maturity period of 7 years for ECBs of over US$100mn for rupee expenditure by the infrastructure sector has been dispensed with.
• For telecom companies, payment to obtain licenses for 3G spectrum is now considered an eligible end-use norm for ECBs.

Since the intensification of the financial crisis, there have been coordinated policy measures to infuse liquidity and stem growth deceleration.

Idea Cellular’s revenue was up 5.8% qoq (47% yoy). EBITDA was down 16% qoq and 20% below estimate. Net income of Rs1.44bn (EPS: Rs0.50) was down 35% yoy and came in 44% below estimate.

ARPU dropped 6% qoq (3% in 1Q) to Rs266 as MOU/subscriber slid 3.5% (+4.1% in 1Q). We suspect this reflects: weaker quality of new subs and seasonality – reduced roaming during the monsoons. ARPM was down 3.6% qoq to Rs0.63/minute.

EBITDA margin collapsed 673bps as network and S&M costs soared 19.4% and 33.8%, respectively. Excluding Mumbai, the margin was down 520bps, which reflects rapid network expansion and brand building costs.