Category: Equity Research

Tata Power reported net revenue of Rs19.6bn (up 45% YoY), primarily on the back of increasing fuel costs which are a complete pass through in the regulated business model. EBITDA was up 1% YoY at Rs2.7bn; however, EBITDA margins were under pressure this quarter declining by 584 bps YoY primarily due to an increase in cost of fuel (up 76% YoY). Other income (excluding Rs1.7mn on profit on sale of investment in F2Q09 vs Rs851mn in F2Q08 and forex gain of Rs767mn in F2Q09 vs Rs90 mn in F2Q08) was Rs1.1 bn (up 141% YoY). This was largely attributed by dividend income received from subsidiaries. (more…)

NTPC reported F2Q09 revenue of Rs94.5 bn (up 27% YoY) and earnings of Rs21 bn (up 10% YoY). Adjusted earnings in F2Q09 were Rs18.3 bn (up 12% YoY). The company commercialized 500 MW of Kahalgaon II during the quarter.

2QFY09 recurring PAT at Rs17.4bn (down 6% YoY) was in line with CIR estimates. Reported PAT was higher at Rs21.1bn (up 13% YoY) led by exceptional items. Earnings are under pressure due to Significant delays in incremental capacity additions and Marginal negative impact (2-3%) of new CERC draft regulations from FY10E onwards.
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ITC grew sales by 15% and PAT by 4%. Cigarette volume was down c2.5% in line with expectations, but margin expansion was only 68bp despite a 13% realisation increase due to higher raw material costs. FMCG losses at INR1,166m were 219% higher than last year but almost equal to last quarter, going forward the same should decline. (more…)

NIIT Technologies reported a steady 2QFY09 with 5% Q/Q revenue growth, 4% volume growth and 80 bps Q/Q EBITDA margin decline due to salary hikes. EPS grew 5% Q/Q. Growth was driven by good performance of Room Solutions where revenues increased 17% Q/Q and EBITDA margins bounced 300 bps Q/Q. Performance was good across service lines and industry verticals with 5 new customer additions and US$ 75 of new order wins. (more…)

Geometric Software Revenues grew by 8.7% sequentially to Rs1,526m. EBITDA grew a strong 52.1% (v/s a 17.7% decline in Q1) to Rs197m. EBITDA margins at 12.9% expanded handsomely by 369bps. A prior period adjustment shaved off Rs 14.1m from profits.

India and APAC (combined ~10% rev) witnessed strong growth which momentum is expected to continue going forward. Number of customers added was a modest 15 even as new deals won this quarter dwindled to a mere US$6.7m. (more…)

HDFC’s 2QFY09 net income, adjusted for extraordinary gains from sale of stake to Intellenet, grew by 32% yoy. The recurring earnings were driven by a 29% topline growth supported by steady margins and loan growth of +30%. Reported profits, however, declined by 17% yoy as last year HDFC had a one-time gain from sale of its stake in Intellenet.

Non-interest income was strong with yoy growth of 57% yoy. Also, core fee income (lending biz.) increased by +90% yoy. HDFC has been building up retail deposits during the period. While term loans have grown at 5% yoy, retail deposits have grown by 28% yoy. Resources (deposits+ borrowings) have grown 22% yoy and 6% qoq. (more…)