Category: Equity Research

TIL reported strong Q3FY11 consolidated revenue growth, at 22% Y-o-Y to INR 3.8 bn, spearheaded by strong growth in material handling systems (MHS) and construction & mining systems (CMS); these two businesses grew 40% and 55%, to INR 0.7 bn and INR 1.8 bn, Y-o-Y, respectively.

TIL had an unexecuted order book of INR 1,812 mn against INR 2,581 mn in Q3FY10, down 30% Y-o-Y. Management expects pickup
in order inflows on the back of increased infrastructure activities. Through Kharagpur plant (expected to be operational by April (more…)

Coromandel is the largest domestic manufacturer of phosphatic fertilisers among private players. It has manufacturing units in Andhra Pradesh and Tamil Nadu. Apart from farm inputs comprising fertilisers, pesticides and specialty nutrients, the company also entered the rural retail business in Andhra Pradesh through its Mana Gromor Centres and Mithra centres.

The company also entered into a licence agreement with Shell Research Ltd. for manufacturing sulphur (more…)

ICICI Bank Net profit of Rs14.4bn (up 30% y/y, 16% q/q) beat expectations due to lower loan loss provisions (LLP). NII of Rs23.1bn (up 12%y/y, 5%q/q) was driven by flat sequential NIM at 2.6% and 15% y/y loan growth. Corporate loans supported loans growth while retail book stayed flat.

Core fee income grew at 14%y/y, 2%q/q. Credit cost declined 54% y/y, 28% q/q to 1%. We believe margins (more…)

With Inflation refusing to calm down, the meek RBI Governor is expected to take some bold steps in the forthcoming Policy Review on the 25th. In expectations of some hard monetary measures, the Auto Index has fallen by 10% since the beginning of Jan-2011.

The auto sector will not escape the impact of slower economic growth, which may be the collateral impact of interest rate hikes, we set out to isolate the real impact of interest rates on auto volumes. Auto volumes in the consumer-driven segments (cars and two-wheelers) are historically correlated much more (more…)

Sintex reported 3QFY11 consolidated EBITDA at Rs1.96 bn versus our estimates at Rs1.77bn. The outperformance has come on the back of higher execution (Rs11.86 bn vs our estimates at Rs10.69 bn) against our estimates. The EBITDA margins in 3QFY11 at 16.6% are exactly in line with our estimates. We see incremental risks and any rally on the back of good news/results should be used to pare down exposure.

The outperformance on the execution front has (more…)

Infosys reported Q3FY11 below expectations. Revenues grew 2.3% QoQ in Re and 6% Q/Q in USD terms (4.7% in CC) driven by 1) 3% Q/Q volume growth (vs. 7%QoQ expectations), 2) offshore pricing improvement of 2.6% QoQ (1.6% blended QoQ) and 3) cross currency benefits. Margins were flat QoQ despite currency headwinds, led by improvement in pricing. The weaker-than-expected revenue and 4Q topline guidance will result in lower exit rate on revenues going into FY12.

Pricing improved 2.6% offshore (1.4% CC), 2) Reported attrition was (more…)