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TRANSCRIPT
Amar Ambani
Head of Research [email protected]
Analysts: Alok Deora
Ankit Tikmany
Bhavesh Gandhi
Hemant Nahata
Prayesh Jain
Rajiv Mehta
Ruchita Maheshwari
Tarang Bhanushali
Q4 FY16 Results Preview
This report is published by IIFL ‘India Private Clients’ research desk. IIFL has other business units with independent research teams separated by 'Chinese walls' catering to different sets of customers having varying objectives, risk profiles, investment horizon, etc. The views and opinions expressed in this document may at times be contrary in terms of rating, target prices,
estimates and views on sectors and markets… (Read the complete disclaimer at the back of this report)
Strategy Report
April 12, 2016
Nifty: 7,671
Sensex: 25,022 Q4 to witness 2.3% yoy profit degrowth (ex‐financials) & 4.8% growth (ex‐financials, ex‐energy); low base effect gradually coming into play
Domestic cyclicals and global defensives to shine Auto, Media, Healthcare to report strong performance Private Banks to continue to outshine PSU banks High earnings growth from Nifty stocks: Tata Power, Eicher, Hero Moto,
Asian Paints, Gail, Cipla, Yes Bank, Auro Pharma Poor earnings growth from Nifty stocks: PNB, Hindalco, Idea, NTPC Other companies with likely high performance: Vardhaman Textiles,
Ashok Leyland, Britannia, KEC, IRB, Lupin, Birla Corp, Skipper, Bajaj Corp Our preview coverage universe of 374 companies, representing ~75% of India’s equity market cap is expected to report 4.2% yoy drop in net profit in Q4 FY16. On a qoq basis, profits will rise by 17% on account of low base of preceding two quarters, which had witnessed sequential PAT declines. Ex‐financials, our preview universe is projected to rise 1.3% yoy and 3.2% qoq in revenue with a 2.3% yoy degrowth in PAT. Ex‐Financials and ex‐energy, sales growth would be ~7% on a yoy and sequential basis. Input cost lever is waning with no material improvement in operating margins. Demand kick‐in is now needed to improve utilisation levels and consequently operating leverage. Ex‐Financials and ex‐energy, PAT would grow 4.8% yoy and 12.6% qoq.
Global defensives will be a major driver with 13.8% yoy growth in profit.
Healthcare will lead from the front with 33.5% yoy growth in PAT aided by 310bps expansion in margins. Aurobindo and Lupin will post the best set of numbers among the large names while Biocon is likely to disappoint. IT will experience mixed results; divergence on account of client/sector specific issues, ability to capitalize on increasing digital spends, success in client mining/acquisition and execution progress on large deals in hand. The reported dollar revenue growth would also be impacted marginally from the adverse cross currency movements during the quarter. Amongst mid‐cap IT companies, Cyient is likely to deliver a reasonably strong growth of 4%+ qoq underpinned by some improvement in organic growth momentum and higher contribution from Rangsons.
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Q4 FY16 Results Preview
Domestic cyclicals to be another big growth contributor with 7.9% yoy and 8.9% qoq revenue growth and 18.9% yoy jump in operating profit. Consumer discretionary in general and autos in particular will be the main drivers. Autos are to register strong PAT growth (32.4% yoy) with most major players, except Maruti and Bharat Forge, doing well. Auto volumes were robust across segments, except cars. OPM of most companies under coverage will rise on account of benign commodity prices and operating leverage. Tata Motors likely to report best PAT growth numbers. Other prominent names with positive results are Hero, Bajaj, Ashok Leyland and Eicher. Motherson and Apollo Tyres are expected to be slightly soft. Consumer durables and plastics are other consumer discretionary segments, which will do well. Among other domestic cyclicals, Capital Goods will remain a drag on growth, rising just 3.7% in revenue. A 120bps fall in margins will lead to 10.6% yoy fall in net profit. All key players, namely, L&T, BHEL, Siemens and Thermax to register 13% to 55% yoy fall in profits. On a qoq basis, BHEL and L&T numbers to be significantly better though. Among the smaller players, we expect excellent show from Techno Electric & Engineering, KEI, Salzer and Skipper. Realty & Infrastructure have seen a select pick‐up in activity and revenue is expected to clock 8.5% growth on yoy as well as qoq basis. Margins are projected to improve with 130bps expansion. Yet, net profit degrowth at 24.3% yoy expected due to high fixed cost and interest servicing. While Reliance Infra’s PAT will be flattish, others like BEML, NBCC, IBulls Realty and Guj Pipavav will be the main drags. Oberoi, IRB and DLF are set to report strong growth in bottomline. We are upbeat on the EPC and construction space where MBL Infra, J Kumar, Sterlite Technologies, Simplex Infra and PNC are set to post strong numbers. In case of Cement, demand growth has been in double digit but low capacity utilisation and soft prices for most part of the quarter will lead to 13.8% decline in PAT. Although demand is gaining traction in recent months, water shortage issues may slow down activity in the near term. Ultratech is likely to post the best results among the large names whereas ACC and Ambuja will be below par. Among other names, Shree Cement will report good numbers with best margin improvement. Although traditionally a sequentially weak quarter, Media sector is likely to report strong performance due to content‐backed movies, digitisation, growth in new media and digital initiatives. Sector to witness strong 40% yoy jump in operating profit and 54% yoy jump in PAT. Dish TV, Jagran Prakashan and DB Corp are set to report outstanding performance.
Global cyclicals revenue to be down 11.4% and PAT to fall 19.1% yoy. However, both metals and oil will
report superior performance on a sequential basis. Implementation of minimum import price, rally in international prices and depreciation in USD during the quarter will help put on a high qoq show for metals. Similarly, for oil & gas, OMCs, Gail and ONGC will deliver good numbers on sequential basis. We expect RIL to post a PAT of Rs6,831cr for the quarter.
Domestic defensives to witness 4.1% yoy decline in net profit, pulled down by power and telecom
sectors. The major positive contributor will be consumer staples. Bottomline growth of FMCG sector estimated at 12.3% yoy on the back of marginal volume uptick, premiumisation, some pick up in rural growth, lower commodity prices and base effect in certain cases. Pidilite, Asian Paints, Bajaj Corp, Jyothy Labs, Kansai and Britannia are to report best set of numbers while Nestle and Godrej Ind will be the worst in this space.
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Q4 FY16 Results Preview
Earnings in power sector are set to fall by 11.9% yoy in this seasonably weak quarter, due to subdued generation, unstable finances of SEBs, lack of water availability and marginal pick‐up in commodity prices. NTPC and Adani Power are likely to report poor set of numbers whereas Powergrid and Tata Power will be leaders in PAT growth, among larger players. Telecom operators will enjoy a strong topline quarter on the back of domestic seasonality tailwind though margin pressures would be evident qoq. Net profit will fall by 15.7% yoy for the sector. Only Bharti Infratel in our preview coverage, will see 5.9% growth in PAT.
Financial sector performance is set to continue being dominated by private banks. PSUs in the financial
sector will see their net profit falling by 57.7% yoy on account of lacklustre credit growth (of <10% yoy) due to their high reliance on corporate loans, weak capital position and a guarded approach underpinned by prevailing asset quality issues. Private sector financials, including NBFCs, will report 7.2% yoy growth in net profit. Most large private banks are estimated to report impressive loan growth ranging between 20‐30% yoy. Within NBFCs, we see HFCs reporting healthy earnings growth yoy on the back of sturdy loan growth and higher spread. High earnings expected from Nifty stocks: Tata Power, Eicher, Hero Moto, Asian Paints, Gail, Cipla, Yes Bank, Auro Pharma Poor earnings expected from Nifty stocks: PNB, Hindalco, Idea, NTPC Other companies with high performance expectation: Vardhaman Textiles, Ashok Leyland, Britannia, KEC, IRB, Lupin, Birla Corp, Skipper, Bajaj Corp Note: For the purpose of this preview, Sun Pharma, Kotak Mahindra, Tata Steel, Vedanta, Bosch have been excluded. However, these are part of our coverage universe.
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Q4 FY16 Results Preview
Aggregate performance for key sectors
Q4 FY16 (Rs cr) Revenue yoy % qoq % EBIDTA % yoy bps
qoq bps
Net Profit yoy % qoq %
Auto 166,056 11.0 4.2 14.4 108.0 25.2 10,284 32.4 (0.2)
Cement 22,545 4.4 9.8 17.1 (190.3) 150.2 1,565 (13.8) 53.2
Consumer 5,560 7.7 5.8 14.6 50.2 32.5 448 12.5 12.2
Fertilizer and Chemicals 19,430 1.8 (11.3) 9.5 68.0 13.0 775 80.5 26.6
FMCG 52,413 8.3 2.8 19.8 95.6 (108.9) 7,074 12.4 (1.0)
Industrials 82,271 3.6 31.8 11.1 (115.8) 423.8 4,984 (10.5) 202.9
Information Technology 99,311 16.3 5.3 21.9 5.7 (2.8) 16,794 9.5 3.5
Infrastructure & Realty 29,042 8.3 8.1 19.4 122.0 (211.4) 1,583 (24.0) 5.6
Logistics & Shipping 10,332 0.8 0.7 26.7 88.3 80.2 1,471 (2.5) 4.5
Media 7,590 12.1 (4.3) 26.9 534.9 (102.6) 946 54.0 (10.4)
Metals & Mining 69,510 (8.0) 12.4 17.1 (281.0) 336.7 6,030 (28.3) 68.7
Oil & Gas 259,272 (12.6) (5.3) 13.2 (24.1) 131.5 19,022 (16.6) 20.8
Others 14,356 3.9 (0.9) 20.3 87.2 (28.5) 1,568 15.5 (3.5)
Pharmaceutical 37,231 12.3 3.8 21.9 313.2 14.1 4,903 33.5 3.4
Plastics 3,760 3.3 20.2 14.9 225.0 78.4 290 29.7 33.6
Retail 7,455 13.2 (10.3) 8.1 (125.0) (88.2) 206 (17.4) (33.7)
Telecom 48,148 6.4 2.9 33.2 (65.8) 6.2 2,594 (15.7) (1.4)
Textile 8,756 7.4 4.5 15.9 (162.2) (9.1) 462 (12.1) 9.9
Tourism 3,606 11.6 (2.2) 16.6 191.6 (299.9) 21 ‐ (90.6)
Utilities 54,504 9.2 1.5 32.2 145.0 (219.3) 8,448 (11.9) (6.9)
NII YoY % QoQ % Net Profit YoY % QoQ %
Financials 64,522 7.8 5.0 17,482 (13.2) 52.2
Note
PAT including extra‐ordinary items considered for analysis
Consolidated taken wherever available
IIFL Universe revenue break‐up for Q4 FY16E IIFL Universe net profit break‐up for Q4 FY16E
Source: India Infoline Research
16%
2% 2%
5%
8%
9%
3%
1%
1%7%
24%
4%
3%5%
5%6%
AutoCementFert. & Chem.FMCGIndustrialsITInfra & RealtyLogistics MediaMetals & MiningOil & GasOthersPharmaceuticalTelecomUtilitiesFinancials
10% 1%1%
7%
5%
16%
1%
1%
1%
6%18%
3%
5%
2%
8%
16%
AutoCementFert. & Chem.FMCGIndustrialsITInfra & RealtyLogisticsMediaMetals & MiningOil & GasOthersPharmaceuticalTelecomUtilitiesFinancials
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Q4 FY16 Results Preview
Sector previews
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Q4 FY16 Results Preview
Automobile & Auto Ancillaries During Q4 FY16, automotive volumes were robust across all segments except passenger cars which saw
a decline of 1.8% yoy. Strong growth in UVs (14.8%) and Vans (10.7%) mitigated the impact leading to overall passenger vehicle growth of 2.4% yoy. Amongst CVs, while M&HCVs continued their robust uptrend with a 30.3% yoy jump, LCVs staged a comeback with a 11.3% yoy growth. Overall CV segment volumes were higher by 19.4% yoy. Three wheelers witnessed a jump of 20% yoy led by 25% surge in passenger sub segment. Amongst two‐wheelers, scooters volume growth slowed down to 12.9% yoy while motorcycles reported a recovery with 7.1% yoy growth. Overall, two wheeler volumes were higher by 8.6% and total industry volumes were higher by 8.4% yoy.
Realizations are impacted by several factors such as product mix, currency movements and geographic mix. For Bajaj Auto, while product mix has not changed materially, contribution of exports has dipped substantially. For TVS Motors, geographic mix has not changed but contribution of mopeds has increased and that of scooters has declined. Maruti has seen a sharp increase in contribution of UVs to its portfolio. For M&M, mix has tilted in favour of UVs (new model launches) and for Tata Motors, M&HCVs continue to see increased share of the pie.
OPM or most companies under our coverage are expected to increase on a yoy basis on the back of benign commodity prices and benefits of operating leverage. Currency movements will have significant bearing on margin movement. For Tata Motors (JLR in particular) and Bajaj Auto movement has been favourable, while it is adverse for Maruti and Hero Motocorp.
Auto component players are expected to see another quarter of decent growth as revenues rise on the back of good OEM demand and margins expand as a result of benefits of operating leverage. Replacement demand in certain segments such as tyres has also started picking up. Benign commodity prices (rubber for tyre companies) are also likely to be margin accretive. Bharat Forge could see a weak performance on the back of slowdown in volumes from the US market.
Our top picks in the sector are 1) Eicher Motors 2) Tata Motors and 3) Greaves Cotton.
Q4 FY16 volume performance
Q4 FY16 Q4 FY15 yoy (%) Q3 FY16 qoq (%)
Hero Motocorp 1,720,882 1,575,501 9.2 1,690,198 1.8
Bajaj Auto 872,458 782,669 11.5 951,498 (8.3)
TVS Motors 660,479 604,168 9.3 702,109 (5.9)
Maruti 360,402 346,712 3.9 374,182 (3.7)
M&M – Auto 140,509 122,560 14.6 130,888 7.4
M&M – Tractors 43,321 38,604 12.2 62,666 (30.9)
Tata Motors 146,766 139,270 5.4 122,377 19.9
Ashok Leyland 43,991 34,155 28.8 30,984 42.0
Eicher – RE 148,186 92,846 59.6 125,744 17.8
Eicher – VECV 15,553 11,079 40.4 12,692 22.5 Source: Company, India Infoline Research
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Q4 FY16 Results Preview
Banking The system credit expansion remained tepid during Q4 FY16 as the headline loan growth continued to
be modest at ~11% yoy. Corporate credit activity was muted with no visible revival in private capex given weak demand and consumption trends. The infrastructure investment drive is being led by the government and private participation remains low. The bright spot in the banking system continues to be resilient retail loan growth which is running at 16‐17% yoy supported by healthy momentum in mortgages and revival in auto loan demand.
Q4 FY16 will continue to reflect the disparity in loan growth between the private and public banks. Most of the large private banks are estimated to report impressive loan growth ranging between 20‐30% yoy. An established and sizeable retail lending franchise, widening distribution, high capital base and prudent aggression is enabling private banks to outgrow the system thus garnering market share at fast clip. On the other hand, most PSU Banks are expected to report lack luster credit growth of <10% yoy due to their high reliance on corporate loans, weak capital position and a guarded approach underpinned by prevailing asset quality issues
Since June 2015, most banks have reduced their Base Rate by 30‐60bps and have complimented it by trimming rate on deposits across various maturities. However, the recent moderation in system deposit growth has curtailed the room for further rate transmission. Thus, towards the end of FY16, the banking system witnessed significant liquidity tightening (as loan demand seasonally accelerated but deposit growth failed to improve) driving short‐term rates higher. For most large private banks, we expect NIMs to be flattish qoq. Any pressure on the margin from Base Rate reduction is expected to be largely mitigated by improving loan/deposit mix. For PSU banks though, NIM will decline materially on sequential basis impacted by substantial interest income reversals (recognition of stress accounts as per AQR) and absence of any structural mitigating levers.
Asset quality pressure will persist for the industry given much slower‐than‐expected recovery in economic activity. The dichotomy of high duress in corporate, agri and SME portfolios and relative resilience of the retail portfolio would also continue. Therefore, banks like HDFC Bank, IndusInd Bank and Kotak Bank would report benign stress. ICICI Bank and a host of public banks are expected to report substantial delinquencies as identified under the AQR. Also slippages could flow from the standard restructured book. The impaired assets ratio (Gross NPL + Restructured + SDR/2:25) of these banks is estimated to jump from the preceding quarter level. This would lead to significant provisioning which would compress the bottomline. Few PSU banks could even report a loss in Q4 FY16.
Within NBFCs, we see HFCs reporting healthy earnings growth yoy on the back of sturdy loan growth and higher spread. For most players, the incremental cost of funds has been coming‐off on the back of Base Rate reduction by commercial banks and softening in long term bond yields. On a low base, Repco Home and Can Fin Home should continue to deliver robust loan growth (30‐35% yoy).
Shift to 150 dpd NPL recognition would impact earnings performance of Shriram Group companies, STFC and SCUF, on account of higher provisions and interest reversals. With regards to asset growth, STFC should witness further improvement as CV demand has been strong. SCUF should also be able to sustain a healthy balance sheet growth given its niche profile. Other vehicle financiers such as MMFS and Magma may not see any recovery in growth. While the underlying asset quality remains stressed, the seasonally higher collections and recoveries would temper credit cost and NPL levels on sequential basis.
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Q4 FY16 Results Preview
Bajaj Finance, due to its diversified and urban centric portfolio, would be an outlier once again delivering much superior (35%+ yoy) asset growth and resilient asset quality. Capital First, being a niche MSME financier, should be able to sustain healthy book growth despite a challenging environment.
We expect IndusInd Bank, Yes Bank, Bajaj Finance, Can Fin Home, Capital First and Manappuram to deliver robust earnings performance in Q4 FY16.
Cement Substantial pick‐up in Government related infrastructure and housing expenses translated into pan‐
India cement demand growth in excess of double digits for the quarter ended in March.
Spurt in demand led to sharp spike in prices, especially in the North during the end of the quarter. Nevertheless, the average cement prices still remain low on a yoy basis because the rally kicked in during the fag end of March.
Current uptick in demand seems to be ballooned by deflated pricing scenario as indicated by prices across regions and pickup in dispatch numbers of smaller players.
Demand was higher in the northern, central, and southern regions. However, demand remains in single digits in the western region as the Mumbai market continues to remain sluggish. We expect revenue growth for our coverage universe to grow in the range of 3‐28% yoy.
JK Lakshmi (our top pick) is the most likely candidate to break even, backed by improvement in pricing scenario in the Northern region.
Realisations for companies catering to the Southern and Western regions are likely to come in under pressure. We expect players such as Orient Cement to witness a subdued quarter.
Operational efficiency for Shree Cement, Star Ferro and Cement, and Ultratech will likely hover around 20%+ levels.
Maintain BUY on JK Lakshmi Cement.
FMCG & Consumer Discretionary The year 2015 had been a challenging year for most of the FMCG companies with volume growth
moderating significantly owing to a weak macro environment, sluggish rural demand (led by two consecutive monsoons and unseasonal rainfall), lukewarm urban recovery and pricing headwinds in select categories. We expect volume and revenue to accelerate marginally in Q4FY16 led by lower price‐deflation, pick‐up in select categories, low‐base benefit in few cases and some pick‐up in rural growth.
Further, in 2015 a host of companies like HUL, Colgate and GSK Consumer were adversely impacted from phasing of excise duty, which we believe the companies will not have any incremental hit on account of this in Q4FY16. Premiumisaton will continue to be the norm in near term for many FMCG companies supporting price/mix growth. We note that promotions are being used to induce up‐trading to premium products and larger packs (e.g., shampoo bottle prices being reduced sharply to push up‐trading from sachets). Volatility in overseas operations remains, though we are hopeful of better
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Q4 FY16 Results Preview
delivery in Q4FY16 supported by participation in more categories/markets as well as enhancing localized manufacturing/ distribution capabilities.
The past couple of quarters had witnessed lower commodity prices, which benefitted the consumer companies significantly from lower COGS (Cost of Goods Sold) inflation or deflation in some cases. Though raw‐material prices remain benign, headroom for further gross margin expansion in Q4FY16 seems limited compared to Q4FY15. The companies had utilized much of the gross margin expansion for higher brand investments and promotions. We expect in Q4FY16, the pace of Advertisement and Promotions or A&P to sustain on the back of benign commodity costs and there is a step‐up in the pace of new product launches. We note that the competitive environment is largely rational with most players focused on profitability than turning price disruptors.
We expect Pidilite, Britannia, Asian Paints, Emami, Jubilant Foodworks, La Opala RG and Marico to post better earnings growth while ITC, Colgate, and Nestle (partial Maggi sales) are likely to post weak earnings growth.
Further, we expect Greenply to post a better growth led by strong growth in MDF (medium density fibreboard) which is witnessing a shift in demand from cheap plywood to MDF and introduction of Ecolite MDF, which is expected to up the game. The operating margin will improve led by better operating margin in MDF and benign commodity prices.
In CCL, we expect healthy volume in Q4FY16, but with lower coffee prices, the revenue growth will be lower in India but higher in Vietnam (on the low base of Q4FY15), which will lead to a marginal revenue growth on a consolidated basis. However, the operating margin will improve as the company is focusing on premiumising the Indian plant. The Vietnam plant is already at a premium by $10/kg.
Industrials FY16 has been a year wherein execution remained weak in the domestic infrastructure space and
pickup was largely confined to specific sectors like railways, roads, Power T&D. Ordering remained high in the railways and road sector during the quarter. Ordering activity also picked up in Power T&D space after Power Grid completed its longest HVDC power transmission corridor. Order announcements have been quite strong in Power T&D in Q4 FY16 even from state SEBs. In the Power generation space, orders were limited to government companies as private sector capex was tepid. Order inflow has been quite strong in the renewable energy space (both wind and solar).
Higher spending by PSUs and pickup in execution in the T&D space would lead to 7.1% growth in topline for our coverage universe. Topline growth has been curtailed by the sharp fall in commodity prices (pass through in many contracts for T&D). Led by strong ordering in power generation and T&D sectors, order intake (except L&T) is expected to be better on a yoy basis in Q4 FY16. Margins too are expected to expand on the back of cost rationalisation and completion of low margin orders in FY15. Margin expansion would also be led by the sharp drop in commodity prices and faster execution. Interest costs too are expected to decline due to the cut in lending rates and marginal easing of working capital requirements.
The trend of degrowth in topline for BHEL is expected to continue in Q4 FY16 due to higher share of slow moving orders and many projects in their designing phase. However, we expect the pace of decline to reduce in Q4 FY16 helped by some movement in two of its slow moving orders. Margins are expected to remain under pressure due to slower execution, higher share of JDU orders and higher
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Q4 FY16 Results Preview
provisioning for doubtful debtors. Order inflow for the quarter is expected to be higher on a yoy basis. The company has already announced two large orders in Q4 and is expected to end on a higher note, led by conversion of L1 orders.
LT is expected to register a pickup in execution in Q4 FY16. We estimate Q4 FY16 revenue growth at 10% yoy on the back of strong execution in infrastructure segment. We believe that infrastructure segment growth would be strong at 11% yoy as growth in 9M FY16 was impacted due to the initial stages of project. Announcement on orders gained during the quarter have been lower on a yoy basis. We believe the company would find it difficult to match its order inflow guidance for FY16. We would be keenly looking at the company’s guidance for FY17 on order inflows and revenue growth.
KEC and Power Grid are our top picks in the sector. Information Technology The fourth quarter of a fiscal year has typically been a soft period for India IT companies. Finalization of
the annual budget and lesser new project initiatives at most clients limit the overall spend in the quarter. However, as it has been over the past several quarters now, the growth experience of companies could be disparate driven by client/sector specific issues, ability to capitalize on increasing digital spends, success in client mining/acquisition and execution progress on large deals in hand. The reported dollar revenue growth would also be impacted marginally from the adverse cross currency movements during the quarter.
We believe that Infosys’s constant currency (cc) dollar revenue growth in FY16 could surpass the upper end of its guidance of 12.8‐13%. This is expecting 2‐2.5% cc qoq growth in Q4 FY16 which is quite plausible given impressive outcome from the new strategy in terms of improving wallet share and deal signings. For FY17, we estimate the management to guide for similar to FY16 growth ie within the range of 12‐14%.
TCS is likely to put up a better performance as compared to Q3 FY16 by delivering 1.5‐2% cc qoq growth. This would be despite persistent headwinds of sustained revenue decline in Diligenta and Japan region. Digital revenue (14% of total revenues) is expected to post good growth. Wipro, while being impacted the most from oil price fall owing to much higher exposure to Energy vertical, is estimated to deliver strong growth of 2.8% qoq in cc terms. This would be driven by acceleration in execution on some large deals won over the past 12‐18 months. Q4 FY16 should turn out to be a good quarter for HCL Tech with dollar revenue growing by 2.5% qoq (modest growth in preceding two quarters) on the back of healthy momentum in infra services and order backlog. Notwithstanding the transient challenges faced in Communication vertical, Tech Mahindra is estimated to deliver an improved growth of 1.5‐2% qoq aided by healthy performance in Enterprise segment.
Amongst mid‐cap IT companies, Cyient is likely to deliver a reasonably strong growth of 4%+ qoq underpinned by some improvement in organic growth momentum and higher contribution from Rangsons. Mindtree has already communicated that growth in Q4 FY16 will be weak on account of delay in ramp‐up on few projects in BFSI and Retail/CPG vertical. Persistent is expected to post strong dollar growth of 7‐8% qoq driven by improvement in underlying organic growth momentum and partial revenue contribution from the recently announced IBM deal.
Given material depreciation in the rupee versus the dollar on average basis and absence of one‐off costs (present in Q3 FY16 due to Chennai floods), the operating margin for most players would expand.
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Q4 FY16 Results Preview
However, the extent would be contingent on level of revenue growth and extraction of operational efficiencies. Tech Mahindra’s operating margin is expected to decline due to implementation of salary hike. Mindtree may also witness a mild contraction on the back of revenue deferment on some projects.
We have an overall positive investment view on the IT sector. With valuation reasonable for most players, patchy trend in growth seems to be adequately captured. In our view, well‐placed companies should be able to deliver 14‐15% cc dollar revenue growth over the next couple of years. The impact of pricing pressure on margin is likely to be mitigated by focus on employee productivity and expected gradual rupee depreciation. Our preferred picks are Infosys, Tech Mahindra, Mindtree and HCL Tech.
Infrastructure The quarter brought in good news to infrastructure developers as the government reiterated the fact
that infrastructure development remains on top of its agenda. The infrastructure sector as a whole will enjoy higher budget allocation of funds in FY17, pegged at Rs2.21 lakh cr as against Rs.1.8 lakh cr in FY16. The total outlay for roads and highways is Rs.97,000 cr while that for ports is Rs.800 cr.
The quarter was rewarding to most infrastructure developers as their order books swelled. Some notable awards during the quarter were: i) IL&FS Transportation Networks Ltd (ITNL), in a JV with its wholly owned subsidiary Elsamex SA, received the Letter of Award from Ethiopian Roads Authority, for construction and maintenance of two road projects with an contract value of ~Rs.1,525cr ii) PNC Infratech bagged an EPC project in UP for a contract price of ~Rs.1,156 cr iii) Sadbhav Infrastructure Projects Limited emerged as the lowest bidder for two projects awarded in the Hybrid Annuity Mode with an aggregate length of ~93km. NHAI’s contribution towards both projects would aggregate to ~Rs.1,187 cr.
During the quarter, IRB received SEBI’s approval for setting up the Infrastructure Investment Trust (InVIT), which is certainly a step in the right direction. This positive development would nudge other infrastructure developers, who were skeptical about the fruitfulness of the undertaking, to initiate the process. It is now likely that many other infrastructure developers, with a large portfolio of operational BOT assets, would look at this as a viable option in order to unlock funds.
Balance sheet repair continues to take priority for several infrastructure developers with an asset heavy balance sheet. While infrastructure developers are trying to improve the quality of their order books, they are stepping out of operational assets to unlock funds at the same breath. Some strategic initiatives to divest stake in projects during the quarter were: i) Cube Highways and Infrastructure signed share purchase agreements with NCC (51% stake) and Gayatri Projects (49% stake) to acquire their Western UP Tollway Ltd (WUTL) for an enterprise value of Rs.575 cr ii) NCC, along with Soma Enterprise Limited, executed definitive agreements to sell their respective shareholdings (~38% each) in Bangalore Elevated Tollway Limited to India Infrastructure Fund II which is managed by IDFC Alternatives Limited iii) PNC Infratech completed its stake sale in Jaora‐Nayagaon Project to Viva Highways, for an aggregate consideration of Rs.34.19cr iv) ITNL sold 49% equity stake in Rapid MetroRail Gurgaon Limited, a subsidiary of the company, for a consideration of ~Rs.510 cr. The balance sheet deleveraging exercise is likely to continue especially with regulators alleviating bottlenecks in exiting operational assets.
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Q4 FY16 Results Preview
In order to expand the source of funding for the sector, the RBI has relaxed the provisions pertaining to external commercial borrowings (ECBs). Infrastructure companies and non banking financial companies that have exposure to the sector have been authorized to raise ECBs with a minimum maturity of 5 years subject to 100% hedging. Infrastructure companies were previously allowed to raise only long term external borrowings for longer than 10 years.
With strong order books for most players, revenue growth is likely to be robust during Q4 FY16. However the marginal pick up in commodity prices is likely to offset the benefits arising out of increasing scale of operations. We therefore expect margins to remain stable during the quarter.
Media and Entertainment Q4 is a sequentially subdued quarter for the media and entertainment industry. Nevertheless, the
industry can draw strength from some key positives during the quarter such as strong content‐backed movies, setting up of new FM stations for a few players, traction in the new media and digital business, implementation of prepaid packages in a few metros and digitization of phase 3 markets.
ZEEL is likely to post decent results compared with the previous year, backed by industry leading advertisement revenue growth. Monetization of its FTA (free‐to‐air) channel Zee Anmol, Zee Marathi, and Sarthak TV, which lead the regional genre, is another key positive from the company’s perspective. However, margins are expected to be skewed due to rebranding activities, channel launches, and launch of its ‘video‐on–demand’ platform OZEE.
With the impact of floods behind it, Sun TV is expected to post recovery in advertisement growth during this quarter. The completion of digitization phase 3 would propel subscription revenues. Sun TV continuously leads the GEC (General Entertainment Channels) charts and has forged tie‐ups with YuppTv, Hook, and Reliance Jio in regards to digital content, which would boost its topline further.
Traditionally, Q4 is a dull quarter for movie exhibitors; however both PVR and Inox Leisure are expected to post decent results supported by strong content backed movies like Airlift and Neerja. High operating expenses are expected to dent margins substantially for both the companies. But PVR is expected to have better realizations due to higher pricing mix and food and beverage spend and large scale of operations.
DB Corp is likely to post volume‐driven ad revenue growth as most of its customers have accepted price hikes, while Jagran Prakashan is likely to report higher revenues due to price hikes and consolidation of Radio City revenues. While news print costs are expected to inch upwards, margins for both the companies would remain stable.
Opening of frequencies in new and existing markets, pricing and volume‐led increase are key growth drivers for most radio players. ENIL would post improved results on the back of fixing up of ad deals for four stations acquired through the TV Today Network. Also, its margins are expected to improve moderately due to breakeven of its Mirchi Music Awards property.
For cable and broadband companies, digitization of phase 3 will lead to acquisition of additional
subscribers thereby improving subscription revenues. However, inability to implement package‐wise billing in phase I and II, insignificant ARPU growth and investments in broadband would continue to impact operating performance.
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Q4 FY16 Results Preview
Metals & Mining Metal prices managed to end the quarter on a strong note, managing to bounce back 10‐20% from
their lows hit during the quarter. Led by a revival in global equity indices and reduction in concern over dumping from China, metal prices bounced back sharply over the last two months. Bounce was also supported by a weakness in US Dollar against major currencies, as expectations of rate hikes in US reduced. Domestic steel prices too rallied on the back of implementation of Minimum Import Price (MIP) on steel imports by the Government. Most of the metal companies in our coverage would report superior results on a sequential basis, buoyed by higher prices and an increase in production. Non‐ferrous companies would benefit from rupee depreciation and higher metal prices.
Global steel prices rallied US$100/ton from its January lows on account of restocking in China. The rally was largely attributed to a strong policy lead out of China where the government has committed to boosting spending and loosening monetary policy to support growth. Chinese HRC export prices jumped to US$360/ton from a low of US$260/ton in January. Chinese steel exports have started to slowdown due to a decline in domestic production. In addition to this, recovery in domestic steel prices was aided by implementation of MIP. On February 5, the government had imposed the MIP ranging from US$341‐752/ton on 173 steel products aimed at providing relief to the domestic steelmakers from cheaper imports. According to market data, the introduction of MIP helped domestic steel producers to increase prices of products by around Rs. 5,000/ton during that last couple of months. The sharp fall in steel prices in January would curtail the increase in average blended realisations to 1‐3% qoq. Steel volumes too are expected to be higher on a qoq basis due to lower imports and an increase in domestic demand. Coal India would continue to report impressive growth in volumes in Q4. Blended prices are expected to improve due to higher share of e‐auction sales. NMDC is expected to report strong sequential growth in volumes. However, topline would be impacted by lower realisations.
Base metals too bounced back from their lows and ended the quarter on a strong note. Amongst the non‐ferrous space, zinc prices increased by 3.4% qoq, followed by lead at 3.3% and aluminium at 0.3%. Average copper prices were lower by 4.1% qoq and 19.5% yoy. Most of the base metal prices bounced back post the weakening of US Dollar and a decline in concerns over Chinese demand. Product premiums were flat on a qoq basis. Domestic metal companies would benefit from the 2.4% qoq depreciation in Rupee against US Dollar. For the non‐ferrous space, volumes for most of the players would be higher on a yoy basis. Hindalco’s aluminium volumes would be strong on the back of higher output from new capacities. Vedanta’s aluminium volumes too would be higher on the back of higher output from BALCO’s new projects. HZL’s volumes are expected to be lower on a qoq basis due to lower mined metal output. Metal output would be impacted by lower metal content and as per the company’s mine plan for future. NALCO’s external alumina sales volume would improve due to sale of carryover metal and lower internal consumption. Margins for most of the players would be higher due to higher realisations and an increase in volumes. Lower coal prices too would lead to higher margins for most of the non‐ferrous producers.
For the fourth consecutive quater, all the steel manufacturing companies in our coverage universe are expected to report loss. However, the quantum of loss would reduce on a qoq basis due to higher volumes and marginal improvement in realisations. JSW would report a sharp improvement in EBIDTA/ton due to higher volumes, lower repairing costs and a marginal decline in raw material costs.
In the non‐ferrous space, we estimate bottomline to improve for most of the companies due to higher realisations & volumes coupled with lower coal prices.
Coal India is our top picks in the sector.
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Q4 FY16 Results Preview
Oil & Gas Crude oil prices declined on a sequential basis from US$43.4/bbl in Q3 FY16 to US$34.6/bbl in Q4 FY16 (average
for Brent) while rupee depreciated against the US$ by 8.4% yoy and 2.3% qoq. We expect nil subsidy burden for the sector as a whole.
Product spreads have weakened on a sequential basis marginally as fall in petroleum product prices was higher than fall in crude oil prices on back of weakness in demand from China. Gasoline spreads have been the saving grace with a sequential increase. Resultantly, benchmark GRMs have weakened on a qoq basis. For Reliance Industries, we expect the GRMs to decline from US$11.5/bbl in Q3 FY16 to US$10.5/bbl in Q4 FY16. Petrochemical prices too have seen a correction in line with the crude oil prices but we expect the spreads to remain flattish. Crude oil production from MA‐1 field and gas production from KG‐D6 field are likely to see flat trends during the quarter on a qoq basis.
OMCs are expected to report one of the strongest performances as 1) higher marketing margins, 2) higher volumes, 3) lower inventory losses, 4) decent refining margins and 5) nil under recovery burden will buoy core earnings growth. Interest costs are expected to be lower considering dip in crude oil prices causing lower working capital requirements.
For Cairn India, we see weak set of numbers on yoy basis owing to 1) a flattish production profile at Rajasthan field, 2) fall in crude oil prices and 3) higher profit sharing with the government. For ONGC and Oil India, we expect net realizations to improve. Sales volume for crude oil and gas is likely to remain flat on sequential basis.
GAIL should witness an improved set of numbers on qoq basis. Sequential improvement will be driven by the renegotiation of the RasGas contract of Petronet LNG which will lower costs for GAIL’s petrochemical division. Also Pata ramp up will support performance. Volumes for transmission and petrochemicals business should improve. For GSPL, we expect moderate increase in transmission volumes on a qoq basis. Petronet is expected to see a strong yoy growth in earnings aided by improvement in long term volumes on the back of the renegotiated contract with RasGas. Also during the quarter, the company would have taken its customary regas tariff hike. However, depreciation and interest expenses of Kochi Terminal will impact profitability. IGL margins are expected to improve owing to lower spot LNG prices and the renegotiated deal.
Our top picks in the sector are Reliance Industries and HPCL. Pharmaceutical Pharma sector is likely to report a mixed bag quarter as strong showing by Sun (Gleevec opportunity)
and Cipla (partial Invagen consolidation + Pulmicort) would be offset by qoq margin weakness in Cadila, Glenmark and Torrent Pharma. Retain Glenmark, Aurobindo and Strides as top picks
Lupin is likely to report a blockbuster quarter on back of Glumetza launch in February 2016 along with benefit of Fortamet price hike and new launches in 9m FY16. We expect US revenues ex‐GAVIS to surge ~27% qoq and 25% yoy which in turn would drive 14.3% qoq rise in Q4 revenues, 200bps jump in margin and 33% growth in PAT
Dr Reddys’ is likely to report a lackluster quarter on back of weakness in US sales as injectables business impacted due to seasonality though India and Europe would post healthy growth; emerging market weakness to persist on renewed Rouble depreciation and sales taper in Venezuela
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Q4 FY16 Results Preview
Cipla would report 14% qoq growth mainly due to partial Invagen consolidation (acq completed in Feb 2016) and full impact of Pulmicort; India business to rebound from impact of change in distribution policy seen in Q3; margins to jump 190bps qoq
Sun Pharma US sales would get a boost from launch of 180‐day Gleevec exclusivity which would drive 35% qoq rise in US$ revenues; margins to surge ~650bps qoq as Gleevec would create disproportionate operating tailwinds
Glenmark faced pressure in its core US oral solids business in Q3 which is likely to continue while a 10% qoq Ruble depreciation would impact ROW sales; overall we expect flat revenues qoq and 3.5% qoq rise in PAT
Cadila is expected to report a lackluster quarter as India operations remain muted though US to post steady yoy growth; we estimate 0.3% qoq decline in revenues along with 35bps qoq drop in margin
Aurobindo Q4 revenue growth of 5% qoq and 16% yoy is likely to be driven by strength in US injectables business and large approvals like Abilify and Entecavir; Europe operations would be boosted by 3.2% qoq INR depreciation while margins too would improve ~45bps qoq
Strides would report a healthy quarter as institutional (anti malaria) momentum continues on sequential basis while regulated markets would be driven by niche launches in US; we forecast 5.6% qoq rise in revenues and 50bps gain in margin
Alembic would report 15% qoq revenue decline on back of lower contribution from gAbilify as US partner cedes share with additional competition
Natco Pharma to report strong 55% yoy revenue growth led by robust gSovaldi sales; expect margin to be stable yoy at 24.5%
Granules to report ~11% yoy revenue growth driven by 23% and 25% jump in PFIs and FDs segments; margin to dip qoq though better products mix would lead to 500bps yoy surge
Alkem to report ~35% yoy revenue growth led by strong 37% increase in domestic revenues and 29% growth from US; expect 300bps margin improvement
Apollo Hospitals would report ~5% qoq standalone revenue growth led by 5% rise in hospitals revenues and 4% growth in pharmacy; yoy numbers not comparable as Hetero Pharmacy got integrated from Q1 FY16
Telecom Telecom operators would enjoy a strong topline quarter on back of domestic seasonality tailwind
though margin pressures would be evident qoq; we retain our preference for Bharti followed by Idea
Bharti Airtel would print 1.6% qoq rise in domestic wireless revenues driven by 4% qoq growth in volumes offset by persistent pressure on voice pricing; we expect Africa INR revenues to rise 1.2% qoq which in turn would drive 2.7% qoq jump in consolidated revenues. We expect margins to remain under pressure on higher network opex which would translate into 14% qoq decline in PAT
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Idea to report a strong topline performance at +4.4% qoq driven by 5.5% sequential surge in traffic in what is a seasonally healthy quarter for minutes offset yet again by voice pricing pressure; margins would inch up gradually at 27bps qoq though higher interest cost would drag PAT lower by ~13% qoq
Bharti Infratel would rebound from decline in incremental Q3 co location additions attributed to onetime exits and would report 3.4% qoq rise in revenues, ~40bps gain in margin and 4.5% increase in PAT; energy margins would inch upto 6.1% from 5.1% in the previous quarter
Tata Comm is likely to report a sequentially better quarter as data revenue momentum continues in Q4 on back of sustained growth in new services and recently won contracts; voice revenues would also expected to rebound from accentuated decline seen in Q3; overall, we factor in 1.6% qoq and 5.4% yoy revenue growth along with 30bps qoq margin uptick
Utilities Power sector witnessed generation capacity addition of 14,181MW between April 2015‐February 2016,
as against 15,935 MW added during same period last year. The aggregate installed capacity in India now stands at 288 GW at end of February 2016. In the twelfth five year plan, the country witnessed capacity addition to the tune of ~75GW till February 2016, which is ~85% of the targeted ~88.5GW.
With temperature picking up post the winter season and resulting gradual pickup in demand, power generation grew by 9% yoy during February 2016. Power generation during April 2015 to February 2016 stood at ~1,011 BU, recording a ~5% growth yoy. The country continued to face water shortages (owing to sub‐optimal rainfall) during the year leading to a ~11% yoy decline in hydro power generation in February 2016. Power generation through gas however recorded a growth of ~5% yoy during April 2015 to February 2016 driven by the government’s decision to supply gas at subsidized rates to distressed plants. All India PLF declined marginally from 66% in February 2015 to 65% in February 2016. Peak deficit fell from ~1.7% in January 2016 to ~1.3% in February 2016 owing to gradual pick up in generation as demand remained subdued.
During the quarter, NTPC Ltd announced its investment plans for Telangana Super Thermal Power Project, Phase‐1 (2x800 MW) at an estimated cost of Rs.10,600 cr. The Commercial Operations Date (CoD) of first unit is expected in 52 months and second unit at an interval of 6 months thereafter. The Company also raised ~Rs.5,000 cr through an Offer for Sales (OFS) at floor price of Rs.122 per share. In February 2016, Tata Power synchronized 67.5 MW Unit 1 of the Kalinganagar‐ Orissa project.
The shortage of water (owing to sub‐optimal monsoon during the last couple of years) has been gradually impacting power plants in the country. The first major instance has been of NTPC shutting down units of its plant at Farakka in West Bengal. The shutdown has hit states across eastern region.
Uttarakhand became the 10th state to join the UDAY scheme. The scheme which aims to tackle the debt burden of discom utilities and enforce financial discipline would help power generation companies in terms of allowing discoms to offtake power and make timely payments.
Owing to weakness in power generation, revenues for most power generation companies would be depressed on qoq basis. Also the margins should be under pressure owing to increase in input costs. Prices of key commodities which are involved in the development and operation of power projects have witnessed marginal pick up during the quarter.
The availability of water and fuel, financial strength of State Electricity Boards and availing timely environmental clearances are the key challenges for the sector.
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Q4 FY16 Results Preview
Estimates for IIFL universe
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Q4 FY16 Results Preview
Estimates for IIFL universe Company NII NIM / Spread % Net Profit
Rs cr Q4 FY16 yoy % qoq % Q4 FY16 yoy bps chg qoq bps chg Q4 FY16 yoy % qoq %
NBFC
Bajaj Finance 1,232 51 (6) 11.5 70 (190) 366 58 (11)
Can Fin Homes* 93 56 1 2.5 60 (40) 43 65 1
Capital First 281 53 7 7.4 120 10 52 44 18
Chola Fin 596 32 10 8.1 90 20 178 31 22
DHFL* 501 24 8 1.8 15 (15) 201 23 8
HDFC Ltd 2,692 2 13 3.3 (50) 10 1755 (11) 15
Indiabulls Hsg Fin 989 23 16 6.1 (30) 50 696 26 15
LIC Housing Finance 874 28 11 2.7 21 10 458 21 9
Magma 334 9 2 7.3 100 30 59 9 13
Mahindra Finance 830 (6) 14 7.9 (150) 70 264 (21) 293
Manappuram 387 35 1 14.5 200 (20) 99 41 (3)
PFS* 128 25 9 4.2 2 5 66 307 (5)
Repco Home* 95 27 13 3.7 0 30 44 26 13
SCUF 671 19 4 13.9 20 ‐ 160 7 (8)
Shriram Transport Fin (SA) 1,415 26 7 7.6 90 10 364 15 (3)
TFCIL 25 9 ‐ ‐ ‐ ‐ 14 20 (13)
Private Bank
Axis Bank 4,378 15 5 3.7 (7) (5) 2554 17 17
City Union Bank 254 24 0 3.6 20 (22) 111 26 (2)
DCB Bank 166 28 4 3.7 (5) (26) 48 (24) 17
Federal Bank 606 (3) 0 2.5 (60) (30) 291 4 79
HDFC Bank 7,341 22 4 4.3 (10) ‐ 3385 21 1
ICICI Bank 5,726 13 5 3.5 (4) ‐ 2315 (21) (23)
IndusInd Bank 1,247 35 6 3.9 18 (5) 653 32 12
Lakshmi Vilas Bank 216 55 29 2.7 (4) (8) 56 40 22
The Jammu & Kashmir Bank 767 12 14 4.1 20 25 94 (8) (20)
The Karnataka Bank Ltd. 272 (7) (11) 2.3 (6) (4) 100 (25) 3
The South Indian Bank Ltd. 402 16 (1) 2.8 10 (12) 92 475 (10)
Yes Bank 1,292 32 12 3.4 20 ‐ 729 32 8
PSU Bank
Allahabad Bank 1,591 9 12 2.7 (20) 10 20 (90) ‐
Bank of Baroda 2,802 (12) 4 1.7 (50) ‐ 625 4 (119)
Canara Bank 2,399 (3) 8 2.3 ‐ ‐ 146 (76) 72
Corporation Bank 924 (17) (8) 2.1 (16) 16 (605) ‐ ‐
Indian Bank 1,144 3 3 2.2 (30) (7) 124 (40) 195
Oriental Bank of Commerce 1,503 16 15 2.5 (8) (7) 83 (147) (120)
Punjab National Bank 4,116 9 (0) 2.6 (19) (15) (60) (120) (217)
SBI 14,221 (3) 5 2.7 (43) (20) 1571 (58) 41
Union Bank 2,012 (5) 1 2.1 (27) (12) 331 (25) 319 ^cumulative NIM, *spreads
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Q4 FY16 Results Preview
Company Net Revenue OPM % Net Profit
Rs cr Q4 FY16 yoy % qoq % Q4 FY16 yoy
bps chg qoq
bps chg Q4 FY16 yoy % qoq %
Auto
Tata Motors 76,885 13.8 6.4 14.7 105 57 3,249 89.2 (7.4)
Eicher 4,004 55.9 20.7 16.1 181 47 356 82.6 31.4
Hero Motocorp 7,427 9.3 1.8 15.7 337 7 829 73.8 4.1
Ashok Leyland 5,742 27.4 40.6 12.2 207 168 389 69.1 95.5
Bajaj Auto 5,189 9.5 (6.8) 20.7 314 (34) 821 32.0 (8.9)
M&M 10,377 8.6 (5.7) 11.0 157 (29) 676 22.7 (16.3)
TVS Motors 2,738 11.4 (6.9) 6.7 58 (19) 99 8.8 (8.3)
Escorts Ltd 864 4.9 (3.0) 4.4 170 56 14 8.5 (31.9)
Maruti 14,620 7.3 (3.1) 14.2 (168) (19) 1,157 (9.9) 13.5
Atul Auto 128 4.4 (15.7) 14.4 221 (217) 12 33.3 (27.9)
VST Tillers Tractors Ltd. 137 (2.6) (9.5) 16.2 (202) (148) 15 (22.5) (16.8)
Motherson Sumi 10,310 8.8 4.6 10.0 44 12 330 (2.9) 7.5
Cummins 1,213 7.0 5.8 16.4 97 150 193 1.6 8.4
Bharat Forge 1,089 (11.0) 3.5 28.8 (58) (130) 169 (16.7) 1.8
Exide 1,685 2.0 10.5 15.1 67 (27) 147 6.5 9.7
Amara Raja 1,241 16.0 1.3 18.2 64 (48) 136 33.3 ‐
SKF India 595 1.6 (2.2) 12.5 225 (91) 55 6.4 (6.2)
Wabco India 461 20.3 0.7 17.2 249 24 52 70.8 0.8
Greaves Cotton 419 6.3 3.2 16.5 505 (3) 47 95.8 (25.4)
FAG Bearings India Ltd. 419 2.6 (5.7) 16.8 131 (375) 37 (11.5) (34.8)
Minda Industries Ltd. 622 13.5 (0.5) 9.9 294 48 31 101.2 (1.5)
Sundaram Fasteners 617 2.7 0.4 11.1 335 (252) 31 92.4 (26.4)
Kirloskar Oil Engines 620 (1.3) 3.2 8.1 (6) (9) 30 15.4 36.4
Suprajit Engineering 249 60.6 (4.6) 16.1 (71) (41) 25 92.3 8.7
Asahi India Glass 544 2.7 1.6 18.6 13 22 23 28.5 9.2
Munjal Showa 415 4.0 13.2 9.2 53 219 23 5.3 57.4
Jamna Auto Industries Ltd. 377 10.2 33.8 11.9 56 (77) 20 27.5 25.9
LG Balakrishnan 290 8.6 2.5 12.8 152 74 18 38.5 20.0
Timken India 254 6.5 (1.2) 12.3 (76) (80) 18 3.8 (11.2)
Tube Investments Of India Ltd. 899 (0.5) (0.4) 9.7 53 64 18 (43.2) 12.0
Gabriel India Ltd. 344 (1.2) (3.0) 8.9 75 7 17 28.7 (4.6)
ZF Steering Gear (India) Ltd. 112 16.9 21.6 23.8 314 353 16 16.0 65.1
Fiem Industries Ltd. 261 12.4 1.0 13.3 31 38 16 16.9 0.1
Igarashi Motors India Ltd. 105 3.1 (0.3) 24.0 284 76 15 (9.2) 4.9
Sona Koyo Steering Systems Ltd. 394 (6.2) 11.5 13.5 (261) 170 15 (43.5) 99.1
JBM Auto Ltd. 356 (5.0) 12.3 12.2 108 68 15 (34.6) 55.2
MM Forgings 128 0.8 1.6 21.1 (17) (113) 13 18.2 ‐
Banco Products (India) Ltd. 267 6.5 1.1 8.5 756 (175) 11 ‐ (28.8)
Swaraj Engines Ltd. 116 11.1 9.7 12.9 8 82 10 24.9 23.8
Jay Bharat Maruti Ltd. 336 0.2 7.7 8.4 154 (67) 9 (12.2) (10.2)
NRB Bearings Ltd. 152 (3.0) (4.5) 13.8 7 109 8 (28.8) 6.8
Automotive Axles Ltd. 294 14.9 10.0 8.4 87 (66) 8 65.6 (1.0)
Subros Ltd 324 5.7 (1.4) 12.8 12 81 8 8.7 33.0
Lumax Auto Technology 218 6.1 (0.5) 7.3 22 29 8 43.3 4.8
Sundaram‐Clayton Ltd. 361 3.3 5.3 8.9 9 69 8 (76.7) 31.2
Wheels India Ltd. 501 0.3 6.6 7.7 42 (40) 7 (3.8) 11.1
Setco Automotive Ltd. 135 4.0 16.7 12.1 241 (368) 5 80.0 (15.3)
Talbros Automotive Components 96 (2.0) 0.3 8.5 18 (85) 4 (8.7) ‐
Raj Ratan Global Wire 67 8.0 56.4 11.7 205 (246) 4 45.8 48.2
MRF 3,310 (0.1) 1.5 22.5 351 (11) 395 18.7 1.7
Apollo Tyres 3,071 (1.5) 4.3 17.2 58 (0) 299 (2.6) 7.2
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Q4 FY16 Results Preview
Company Net Revenue OPM % Net Profit
Rs cr Q4 FY16 yoy % qoq % Q4 FY16 yoy
bps chg qoq
bps chg Q4 FY16 yoy % qoq %
Ceat 1,400 (5.5) 1.4 14.9 228 26 115 24.1 1.5
JK Tyre 1,670 (7.7) 3.3 16.5 253 (7) 114 9.6 7.8
TVS Srichakra 488 4.9 (4.1) 15.2 140 (75) 43 26.5 (10.4)
Goodyear 350 27.2 (4.4) 10.5 88 (2) 23 46.1 (12.7)
Balkrishna Inds 770 (13.8) 2.7 24.7 891 12 83 (46.2) (38.9)
Cement
OCL India 666 0.1 8.4 17.9 271 60 33 (8.3) (11.1)
Shree Cement 1,932 22.5 5.5 24.0 239 65 133 10.7 26.8
The Ramco Cements Ltd. 819 (17.9) (0.2) 29.7 220 (114) 101 8.0 (14.3)
Birla Corporation Ltd. 825 3.5 2.3 7.6 186 51 35 21.9 425.8
Prism Cement Ltd. 1,591 4.1 19.8 6.3 78 89 3 (95.2) ‐
Ultratech 6,633 6.7 13.9 20.6 (53) 129 693 12.8 36.4
Heidelberg Cement 427 5.0 4.6 15.6 (86) 21 13 52.4 40.4
JK Lakshmi Cement 725 25.4 11.8 11.1 (126) 78 (0) ‐ (89.1)
India Cement 1,072 2.7 14.4 17.9 (130) 150 37 1.5 580.2
Mangalam Cement Ltd. 238 (0.1) 12.1 7.1 (133) 233 (1) ‐ 150.0
JK Cement 1,003 10.1 11.1 15.8 (225) 180 39 (44.3) 129.4
Ambuja Cem 2,559 3.9 7.5 18.4 (230) 463 290 (8.8) 163.5
SFCL 450 (10.9) 5.1 25.6 (494) 429 35 (53.9) 20.7
ACC 2,998 (2.7) 3.0 10.8 (898) 120 145 (38.6) 41.8
Sagar Cement 156 (18.4) 25.9 12.4 (931) 116 6 (71.9) 96.8
Orient Cement 453 14.8 28.0 11.2 (1,411) 448 3 (95.9) ‐
Consumer
CCL Products 219 1.1 2.7 22.8 370 134 30 38.3 14.6
IFB 332 1.6 (19.5) 5.3 86 119 8 614.4 30.1
Whirlpool 823 6.1 1.1 10.4 (29) 171 56 2.1 28.5
Symphony 140 (4.0) (22.9) 30.0 (496) (317) 34 (6.1) (28.1)
TTK Prestige 333 16.5 (25.6) 10.5 413 (243) 24 150.0 (34.4)
Hawkins 169 7.6 19.0 10.4 32 2 11 16.8 70.5
Centuryply 439 7.2 12.3 17.0 (237) (80) 44 (8.0) 6.2
Greenply 483 12.5 14.4 13.5 93 (185) 33 (24.6) (5.8)
Somany 471 2.6 13.5 6.8 50 (34) 19 28.5 37.0
Kajaria 669 13.7 11.2 18.2 70 (128) 67 19.9 14.6
Talwalkars 75 8.7 56.3 68.0 133 2,008 20 11.1 300.0
Nilkamal 515 5.5 20.9 12.8 286 191 30 38.3 48.6
Cera Sanitarware 284 13.5 21.7 15.3 91 1 25 14.9 26.3
HSIL 608 8.7 20.1 17.7 (120) (109) 45 12.7 21.4
Fertilizer and Chemicals
PI Industries Ltd. 515 (4.2) 0.7 19.1 132 (146) 57 (5.3) (21.2)
Bayer CropScience Ltd. 577 1.4 (10.1) 9.1 19 236 42 (2.9) 53.9
Advanta Ltd. 307 (1.1) (20.1) 16.8 9 (235) 32 22.3 (8.9)
Avanti Feeds Ltd. 421 10.4 1.9 10.7 103 (273) 30 35.7 (22.8)
Dhanuka agritech 166 8.5 (19.4) 15.2 (272) (68) 19 (12.9) (15.3)
Rallis India Ltd. 323 0.2 4.0 11.9 (185) 61 12 (42.0) (34.4)
Insecticides (India) Ltd. 177 10.0 14.4 8.3 (11) (13) 3 (47.7) 216.7
Excel Crop Care Ltd. 214 4.3 39.5 4.9 262 77 5 176.2 162.4
Kaveri Seed Company Ltd. 41 2.0 (55.7) 18.3 (282) 429 2 122.0 (77.4)
Coromandel International Ltd. 2,758 (8.0) 0.1 5.8 47 (20) 70 1.8 (13.0)
Rashtriya Chemicals & Fertilizers 1,830 (9.7) (13.3) 7.2 (162) 109 50 (23.8) (6.3)
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Company Net Revenue OPM % Net Profit
Rs cr Q4 FY16 yoy % qoq % Q4 FY16 yoy
bps chg qoq
bps chg Q4 FY16 yoy % qoq %
Gujarat State Fertilizers & Chemicals Ltd.
1,312 1.7 (18.7) 8.0 8 (292) 69 6.3 (33.6)
Deepak Fertilisers & Petrochemicals Corporation Ltd.
986 5.9 (6.2) 8.4 (31) 14 28 1.6 17.9
Deepak Nitrite Ltd. 347 4.3 8.8 12.4 117 (55) 18 18.2 9.4
Aarti Industries Ltd. 706 4.2 4.0 20.4 287 121 68 28.7 11.9
Atul Ltd. 613 (1.0) 1.1 18.0 499 90 65 44.7 6.5
Clariant Chemicals (India) Ltd. 231 (1.3) 0.2 5.3 36 239 6 (43.4) (6.4)
Styrolution ABS (India) Ltd. 255 (5.0) 11.3 7.8 42 509 11 14.5 388.4
Tata Chemicals Ltd. 4,084 9.1 (11.9) 11.6 66 108 159 ‐ 0.6
BASF India Ltd. 1,147 7.0 1.4 (0.0) 50 294 (70) 18.5 (33.8)
Chambal Fertilisers & Chemicals 1,534 (1.2) (45.9) 4.2 130 (446) 13 ‐ ‐
Balrampur Chini 887 34.8 4.5 16.5 96 233 86 13.2 (2.3)
FMCG
Everady 298 8.4 (8.0) 9.8 275 (169) 15 172.1 (12.6)
Bajaj Corp 266 12.8 25.0 31.6 20 (22) 70 28.6 41.2
Pidilite 1,191 14.2 (11.0) 18.4 556 (366) 129 59.7 (30.7)
Gillette 518 4.9 2.0 14.1 427 (109) 48 54.5 (8.6)
Jyothy Laboratories Ltd. 426 6.1 10.4 45.0 67 15 41 52.4 4.3
Britannia 2,340 13.4 4.4 13.5 127 (84) 230 37.4 10.8
Marico 1,370 11.7 (12.0) 16.2 221 (269) 140 27.4 (29.1)
Zydus Wellness 109 12.0 (0.9) 22.0 797 30 26 26.1 (5.8)
VIP 280 13.6 (4.0) 18.7 113 65 11 25.0 (2.7)
Godrej Consumer Products Ltd 2,248 7.5 (4.6) 322.2 16 (5) 322 16.3 (5.4)
Dabur 2,169 11.3 2.0 18.0 23 17 328 15.1 2.9
Procter & Gamble Hygiene & Health Care Ltd.
611 10.0 (14.4) 99.9 15 (32) 100 15.0 (31.9)
Page Industries Ltd. 439 15.5 (0.3) 52.8 12 2 53 12.1 1.7
Mcleod Russel India Ltd. 320 4.0 (36.2) (231.5) 11 (505) ‐232 11.3 ‐
Colgate 1,110 7.9 9.4 22.9 (116) 10 181 10.8 13.8
ITC 10,540 13.4 14.9 35.0 9 (430) 2,613 10.7 (1.5)
HUL 8,312 8.3 4.1 17.4 21 (54) 1,107 8.8 14.0
VST Industries 232 5.7 6.8 43.8 8 7 44 7.6 6.6
Tata Global Beverages Ltd. 1,980 3.0 (4.9) 124.8 6 72 125 6.5 71.7
Emami 697 25.8 (11.6) 28.4 310 (321) 146 5.8 9.1
Glaxosmithkline Consumer 1,227 1.0 19.2 21.0 (67) 551 201 2.3 52.6
Godfrey Phillips India Ltd 684 (12.8) 28.0 56.2 (6) 307 56 (6.0) 307.2
Nestle 2,215 (12.0) 13.0 20.4 (391) 57 222 (30.6) 21.3
Agro Tech Foods Ltd 196 4.5 (3.3) 9.8 (33) 53 10 (32.9) 53.1
Liberty shoes 128 (5.1) 3.6 4.4 (37) 76 4 (37.1) 76.0
United Brewreries 1,217 4.7 5.1 14.1 363 (176) 73 52.1 1.4
Radico Khaitan 364 5.8 (9.2) 12.6 304 (183) 19 26.7 (24.0)
BATA 570 16.0 (7.7) 12.8 326 (13) 43 36.0 (2.9)
Mirza 229 5.0 5.9 16.1 46 35 15 20.0 (0.9)
Relaxo 493 11.9 27.2 14.6 (159) 59 47 9.5 91.5
Essel Propack 575 (6.0) 12.0 20.1 299 33 50 5.7 17.9
Asian Paints 3,944 11.6 (5.2) 18.1 233 (110) 500 46.6 7.9
Kansai Nerolac 924 14.4 (4.5) 14.6 232 49 85 40.4 0.4
Berger Paints 1,014 9.4 (5.8) 13.4 31 (278) 82 16.6 (18.5)
Akzo Noble 639 7.9 (14.6) 13.4 300 195 49 9.4 (22.7)
Godrej Industries 2,459 6.5 1.1 6.9 181 123 107 (21.7) (6.9)
Page 22 of 29
Q4 FY16 Results Preview
Company Net Revenue OPM % Net Profit
Rs cr Q4 FY16 yoy % qoq % Q4 FY16 yoy
bps chg qoq
bps chg Q4 FY16 yoy % qoq %
La Opala RG 79 28.3 (2.2) 31.0 306 (505) 14 31.1 (31.0)
Industrials
Ingersoll‐Rand (India) Ltd. 143 (3.5) (26.2) 9.5 764 (231) 16 (7.4) (24.7)
TD Power Systems Ltd. 141 (24.6) 25.0 4.5 362 494 1 78.5 ‐
KSB Pumps Ltd. (CY) 210 11.2 (13.6) 13.0 657 (382) 17 170.7 (28.7)
Astra Micro wave 89 (17.9) (0.4) 25.0 1,290 (43) 10 89.9 (26.4)
Triveni Turbine Ltd. 269 37.8 36.3 20.5 313 (18) 37 27.4 36.1
Inox wind 1,514 62.7 60.8 14.9 (60) (200) 147 24.7 42.7
Premier Explosives 57 35.0 18.3 11.8 161 179 3 58.9 73.2
Esab India Ltd. 110 2.8 (1.4) 9.8 332 225 6 (39.9) 24.2
Nitin Fire 295 26.1 (24.0) 11.0 186 18 20 192.8 (26.5)
Elgi Equipments Ltd. 371 6.0 5.8 8.5 196 (76) 12 144.6 (9.4)
Salzer Electronics 102 31.6 13.1 12.5 29 146 5 55.9 55.9
ABB India Ltd. (CY) 1,930 6.4 (20.4) 10.0 209 (85) 85 57.0 (34.1)
Solar Industries 451 15.7 17.2 20.0 249 12 75 78.6 69.8
Techno Electric & Engineering Company Ltd.
301 36.0 (5.1) 16.7 (86) 505 38 66.7 35.4
KEI Industries Ltd. 762 20.0 36.2 9.2 53 (169) 16 56.4 4.3
VA Tech Wabag Ltd. 1,076 18.5 70.6 13.6 87 628 81 14.1 330.4
Lakshmi Machine Works Ltd. 684 4.2 4.9 13.5 235 (59) 68 1.6 7.6
Kalpataru Power Transmission Ltd. 1,178 10.0 35.7 11.2 140 40 63 57.6 65.9
IMP Power 127 20.8 18.7 10.0 34 40 4 148.4 81.8
Skipper Ltd. 580 16.0 56.0 13.9 15 58 39 30.8 110.2
V‐Guard Industries Ltd. 479 8.5 15.1 8.5 46 14 26 26.9 18.6
KEC International Ltd. 2,672 6.0 29.8 7.9 57 8 83 32.0 123.1
Sintex Industries 2,498 14.8 21.9 18.2 (61) 139 218 10.0 21.0
Carborundum Universal Ltd. 504 5.7 (5.3) 16.6 69 236 45 (32.5) 44.8
Blue Star Ltd. 1,135 12.9 65.5 6.7 (17) 261 43 (59.4) 760.0
Bajaj Electricals Ltd. 1,426 8.7 24.4 5.8 (14) (110) 30 (35.4) 3.4
Larsen & Toubro Ltd. 30,818 10.0 18.9 12.4 (49) 218 1,800 (13.0) 73.9
Havells India Ltd. 1,389 2.9 3.3 13.6 32 13 123 0.7 1.7
Graphite India Ltd. 381 (8.2) 6.9 10.0 128 (187) 21 47.8 6.6
Voltas Ltd. 1,608 7.9 22.9 9.2 (37) 476 120 1.7 121.4
Indian Hume Pipe Company Ltd. 3,052 3.0 53.5 11.8 5 58 144 14.3 128.6
Grindwell Norton Ltd. 316 6.3 12.4 15.7 (53) 118 29 5.0 25.8
Bharat Electronics Ltd. 3,089 5.5 103.6 26.0 (109) 668 718 (0.7) 142.6
BGR Energy Systems Ltd. 1,005 (4.1) 63.1 8.7 20 (0) 14 (27.5) ‐
Alstom T&D India Ltd. 1,300 (5.0) 72.1 7.8 (33) 644 42 (21.8) ‐
Dynamatic Technologies Ltd. 379 (2.5) 4.4 7.9 (62) (38) 4 (12.7) 78.9
Thermax Ltd. 1,431 (5.9) 37.7 9.4 (94) (11) 85 (35.4) 25.8
AIA Engineering Ltd. 562 (7.0) 14.1 23.0 (304) (713) 87 (22.8) (7.0)
Engineers India Ltd. 429 (12.2) 16.5 17.5 (178) 700 91 (16.7) 46.1
Siemens Ltd. 2,349 (11.5) 1.5 8.0 (142) (38) 120 (26.0) 5.1
Elecon Engineering Company Ltd. 515 11.0 55.9 11.9 (624) 905 31 (0.8) 631.4
Shakti Pumps (India) Ltd 91 (7.7) 30.6 12.3 (593) 940 3 (60.0) ‐
BHEL 12,179 (4.0) 128.7 5.0 (826) 3,577 393 (55.8) ‐
Crompton Greaves Ltd. 2,274 (40.3) 10.0 1.2 (102) 75 (32) (83.9) (57.4)
Infrastructure & Realty
Gayatri Projects 617 10.2 46.4 14.0 67 (26) 26 60.6 110.6
Oberoi Realty Ltd. 498 44.4 (36.3) 48.0 (379) 608 153 48.3 (27.0)
Page 23 of 29
Q4 FY16 Results Preview
Company Net Revenue OPM % Net Profit
Rs cr Q4 FY16 yoy % qoq % Q4 FY16 yoy
bps chg qoq
bps chg Q4 FY16 yoy % qoq %
MBL Infrastructures Ltd 621 11.9 (10.2) 10.6 (27) 28 21 47.0 (16.7)
Action Construction 172 2.7 9.5 4.2 (18) 76 3 35.4 53.8
IRB Infrastructure Developers Ltd 1,347 36.0 1.0 52.3 (531) 73 178 28.8 5.0
J Kumar InfraProject Ltd 448 11.2 44.4 18.4 152 3 35 28.2 46.4
Sterlite Technologies Ltd 1,268 29.5 11.8 12.5 85 (67) 47 19.0 11.1
DLF Ltd. 2,254 15.4 (20.3) 42.4 679 (94) 204 18.6 24.1
Simplex Infrastructures Ltd 1,559 1.3 12.0 9.5 56 (3) 26 18.2 38.2
Godrej Properties Ltd. 462 (33.8) 9.4 18.8 559 (18) 60 16.1 14.9
Ashoka Buildcon Ltd. 782 (2.6) 29.6 28.5 716 (67) 42 11.6 218.0
PNC Infratech 526 13.3 0.8 14.0 84 98 36 10.9 12.0
Kolte Patil Developers Ltd. 278 72.3 68.9 26.5 (328) 41 15 10.7 12.7
Texmaco Rail 202 40.1 (20.5) 7.0 (174) 225 14 6.1 17.4
Reliance Infrastructure Ltd 4,723 2.3 20.1 18.0 237 (312) 462 0.7 (0.0)
Sobha Developers 543 7.2 36.0 27.0 (105) (54) 55 (10.6) 71.3
Indiabulls Real Estate Ltd. 684 15.1 2.9 30.0 1,512 (93) 82 (11.6) 2.3
Sadbhav Engineering Ltd 820 (15.3) 8.9 10.2 25 34 33 (14.2) 22.0
NCC Ltd 2,344 (5.8) (2.2) 11.5 88 1 38 (27.0) (5.9)
JMC Projects 668 0.9 16.9 8.5 46 (3) 12 (27.3) 85.5
National Buildings Construction Corporation Ltd.
2,139 17.9 50.0 5.3 (380) 103 91 (31.7) 59.4
KNR Construction Ltd 199 (22.1) (8.8) 13.0 (58) (830) 15 (40.0) (55.4)
BEML 1,396 9.1 82.8 8.0 (474) 555 95 (43.6) 2,971.0
Praj Industries 306 (0.1) 5.4 9.8 (271) (438) 18 (52.1) (31.2)
IL&FS Transportation Networks Ltd 1,772 19.4 (19.1) 35.0 590 (114) 27 (65.3) (83.0)
ITD Cementation India Ltd 848 44.2 (20.3) 6.8 133 62 11 ‐ (62.5)
Punj Lyoyd Ltd 1,395 8.1 38.4 2.0 (1,541) 201 (272) ‐ (9.3)
Gujarat Pipavav Port 171 (8.9) 3.5 60.0 7 (54) 57 (14.3) 7.5
Information Technology
TCS 28,511 17.7 4.2 28.6 (61) 25 6,329 (2.4) 3.6
Infosys 16,602 23.8 4.4 27.7 (11) 50 3,555 14.8 2.6
Wipro 13,530 11.4 5.2 22.0 (69) 120 2,442 7.5 9.3
HCL Tech 10,782 16.3 4.3 21.8 (75) 30 1,986 17.9 3.5
Tech Mahindra 6,999 14.4 4.4 15.9 77 (100) 746 58.0 (1.7)
Oracle Financial Services 1,047 10.2 2.6 37.0 496 (253) 270 17.1 (6.8)
Mphasis 1,456 1.9 (4.0) 14.0 (11) (29) 166 (6.6) (4.5)
Mindtree 1,283 40.1 5.6 17.5 (204) (20) 155 20.5 3.1
Redington 9,589 6.5 16.9 2.3 (9) (23) 133 8.4 7.5
Vakrangee 868 24.2 6.0 26.0 (155) 12 105 37.7 2.1
Hexaware Tech 832 16.6 1.5 16.6 65 69 104 24.8 4.7
Cyient 834 14.3 6.7 15.1 278 100 98 4.5 13.0
Zensar 796 19.2 4.5 15.0 18 2 85 19.0 17.9
Persistent Syst 628 26.1 6.0 18.8 (144) ‐ 84 10.8 7.5
Eclerx 330 31.3 (4.2) 35.6 651 (65) 83 56.5 (6.1)
First Source 838 11.2 2.5 12.0 (117) (30) 65 4.7 (3.2)
Niit Tech 680 11.3 (1.1) 18.4 205 40 64 ‐ (13.4)
KPIT Tech 797 4.4 (2.0) 12.0 762 (252) 58 15.3 (21.1)
TATA Elxsi 288 24.4 5.0 23.0 431 (71) 41 38.4 3.5
Sonata Software 540 37.5 3.4 10.0 (164) (66) 41 16.9 1.3
Polaris consulting 523 11.8 1.0 10.0 (75) (383) 39 6.5 7.9
Info Edge 187 8.0 8.0 20.0 (1,138) (219) 38 (53.9) 74.4
Geometric 321 2.0 19.9 16.0 1,260 (480) 33 284.0 (8.1)
Page 24 of 29
Q4 FY16 Results Preview
Company Net Revenue OPM % Net Profit
Rs cr Q4 FY16 yoy % qoq % Q4 FY16 yoy
bps chg qoq
bps chg Q4 FY16 yoy % qoq %
Just Dial 175 12.0 2.1 22.0 (297) 17 29 (38.1) 8.1
Take Solution 270 25.6 9.0 20.0 (172) (31) 26 (21.5) 1.4
sasken comm. 130 24.6 3.0 11.9 117 (191) 10 234.5 (12.9)
Cigniti 168 43.6 7.4 7.8 (43) (433) 7 32.5 (45.1)
Majesco 206 ‐ 4.0 1.4 ‐ 275 1 ‐ (88.7)
Repro 102 (5.0) 12.0 10.0 346 (75) 1 (36.9) 88.2
Logistics & Shipping
Allcargo Logistics Ltd. 1,349 (4.7) 0.7 9.4 186 60 68 22.8 11.9
Blue Dart Express Ltd. 634 11.1 (2.9) 13.4 148 (34) 49 41.8 (1.8)
Aegis Logistics Ltd. 541 4.0 2.3 7.8 7 (58) 28 16.0 (15.9)
Transport Corporation Of India Ltd. 562 (0.6) 1.9 9.2 98 124 26 20.5 37.0
VRL Logistics 435 9.4 0.9 15.7 84 48 25 29.9 2.0
Sical Logistics Ltd. 220 15.9 (2.2) 11.1 (251) (60) 2 (89.3) 12.5
GATI Ltd. 437 5.0 4.6 8.4 20 29 14 (9.3) 22.5
Snowman Logistics Ltd. 64 19.0 1.6 18.9 (712) 81 4 (74.1) (17.8)
Adani Ports and Special Economic Zone Ltd.
1,738 3.3 1.1 63.5 (169) 116 656 (0.5) 2.8
Container Corporation Of India 1,475 (1.5) 5.0 20.7 (52) 81 225 (23.2) 9.1
The Great Eastern Shipping Company Ltd.
921 4.1 (2.9) 53.4 1,733 136 256 86.9 (6.9)
Shipping Corporation Of India Ltd. 1,045 0.2 5.8 25.9 (127) 292 91 (10.3) 52.4
Gateway Distriparks Ltd. 271 2.2 1.0 23.6 (629) 20 43 (3.0) 45.5
Dredging Corporation Of India Ltd. 165 (13.9) 2.2 22.8 (1,203) 118 11 (74.3) 31.3
TIL Ltd. 394 (15.0) (18.5) 7.5 (526) (138) (4) ‐ ‐
Global Offshore Services Ltd. 83 (14.9) (2.2) 14.6 (1,994) (535) (21) ‐ 27.7
Media
ZEE 1,522 13.0 (4.6) 26.3 620 (67) 275 18.7 0.3
Sun TV 613 11.7 6.8 75.2 (196) (152) 228 12.2 5.6
Jagran Prakashan 606 43.4 5.1 29.6 481 (26) 96 94.9 3.1
DB Corp 535 10.2 (8.7) 31.1 657 (75) 96 50.2 (10.0)
Dish TV 810 11.0 5.0 34.1 386 (32) 67 92.7 (3.2)
Siti Cable 390 52.3 5.4 31.5 2,783 (231) 55 ‐ (2.5)
HT Media 637 10.4 (6.5) 10.9 253 (652) 51 4.3 (36.4)
Network18 Media 925 9.9 2.1 9.9 169 44 35 (21.7) 11.7
ENIL 158 27.6 10.1 35.0 760 37 31 19.9 13.2
Tv Today 134 17.0 (10.5) 27.1 1,913 (1,019) 25 191.6 (31.3)
Eros 250 (44.3) (25.5) 14.4 (79) (553) 20 (62.0) (47.7)
Shemaroo 113 30.2 11.9 26.7 (391) 29 16 26.5 22.1
Inox Leisure 245 12.5 (28.3) 7.5 267 (796) (6) 59.7 ‐
PVR 342 14.2 (31.7) 11.4 778 (568) (15) (57.8) ‐
Hathway Cable 310 14.8 3.2 18.0 653 145 (28) (63.4) (13.5)
Metals & Mining
Coal India Ltd. 21,272 (0.3) 8.5 29.1 110 446 4,609 8.7 24.0
Hindustan Zinc Ltd. 3,392 (17.8) (1.1) 50.2 228 714 1,721 (13.8) (5.0)
NMDC Ltd. 1,660 (41.3) 9.4 36.9 (1,338) (559) 676 (49.8) 3.2
National Aluminium Company Ltd. 1,680 (6.7) 2.7 9.5 (1,430) 112 128 (63.8) (3.8)
Welspun Corp Ltd. 2,359 (0.7) 16.1 11.7 (465) (5) 97 (34.1) 5.9
MOIL Ltd. 165 1.9 87.4 20.4 (2,641) 294 60 (41.6) 353.8
Jindal Saw Ltd. 1,137 (45.4) 5.6 14.8 217 (189) 55 (38.3) (14.5)
Page 25 of 29
Q4 FY16 Results Preview
Company Net Revenue OPM % Net Profit
Rs cr Q4 FY16 yoy % qoq % Q4 FY16 yoy
bps chg qoq
bps chg Q4 FY16 yoy % qoq %
Ratnamani Metals & Tubes Ltd. 425 13.4 16.7 17.0 213 185 42 28.8 21.3
Hindalco Industries Ltd. 8,479 (9.5) 4.0 8.3 (75) 6 35 (78.4) (14.8)
APL Apollo 836 8.1 (7.9) 8.0 353 25 29 325.0 (7.1)
Man Industries 530 (19.0) 64.9 9.1 (194) (107) 27 (39.3) 46.2
Tata Sponge Iron Ltd. 126 (21.3) (9.1) 2.6 373 97 5 (40.6) (2.9)
Sarda Energy & Minerals Ltd. 247 (25.1) 11.3 10.5 (571) (15) 2 (64.5) 214.3
JSW Steel Ltd. 10,704 (15.0) 23.1 15.3 196 506 (10) ‐ ‐
Godawari Power & Ispat Ltd. 311 (33.1) (9.4) 10.0 (162) 182 (40) 1,230.0 110.0
Jindal Steel & Power Ltd. 5,155 13.9 18.2 13.2 (429) (12) (507) (2.4) (11.6)
Steel Authority Of India Ltd. 11,034 (4.8) 23.4 (4.7) (1,274) 1,074 (900) ‐ (41.2)
Oil & Gas
Castrol 802 0.4 1.4 27.8 390 100 149 1.4 5.7
Gulf Oil Lub 280 6.1 7.7 15.7 208 (5) 28 27.3 7.7
Reliance Industries 54,601 (2.6) (3.5) 18.1 272 (4) 6,831 9.4 (5.4)
IOCL 78,888 (15.9) (5.5) 9.7 (18) 344 4,373 (30.4) 43.0
ONGC 15,591 (28.0) (15.7) 42.4 (505) (486) 2,478 (37.0) 92.7
BPCL 44,150 (14.0) (5.4) 8.4 (32) 326 2,337 (18.1) 57.0
HPCL 41,247 (7.6) (5.2) 7.4 (49) 223 1,598 (26.1) 53.4
GAIL 12,214 (14.4) (9.2) 10.2 565 156 699 36.8 5.3
Oil India 2,086 (23.1) (10.9) 25.1 (522) (699) 283 (48.7) (31.1)
Petronet LNG 6,558 (8.4) 27.4 6.0 294 (12) 224 33.3 25.8
IGL 903 (1.5) (2.8) 22.4 318 224 111 15.6 5.7
GSPL 262 9.6 5.6 85.9 220 160 110 64.2 (10.6)
Cairn 1,690 (36.9) (17.1) 24.0 (2,609) (1,228) (199) (17.4) ‐
Others
CARE 79 1.5 25.5 65.8 (97) 177 41 16.8 52.9
ICRA 97 4.2 10.8 37.1 28 401 26 14.3 32.8
Tree House 42 (17.1) (24.7) 42.0 (457) (300) 6 (66.5) (6.4)
Navneet Education 153 (16.7) 35.0 11.0 (699) (27) 9 (45.4) 26.3
MT Educare 62 22.4 (12.3) 15.8 (113) (675) 5 (6.7) (32.1)
Grasim Industries Ltd. 9,259 5.0 2.4 18.8 122 (22) 832 15.2 0.2
Vinati Organics Ltd. 152 (13.4) (0.5) 30.2 183 (302) 28 (14.0) (7.6)
Meghmani Organics Ltd 316 7.3 1.7 23.8 492 105 30 31.1 (13.2)
Interglobe Aviation 3,920 2.5 (8.8) 22.3 (4) (63) 572 (1.0) (13.1)
NIIT 93 9.4 2.2 11.8 2,335 1,926 3 ‐ ‐
Mps Ltd. 66 19.2 (5.1) 35.0 131 (272) 15 20.3 (10.4)
KDDL Ltd 118 9.8 (9.9) 7.0 (231) 22 2 (31.7) (23.5)
Pharmaceutical
Alkem Labs 1,233 35.2 (3.3) 17.9 301 (51) 172 30.3 (9.0)
Apollo Hospitals 1,443 19.9 4.5 14.0 (54) 75 97 24.4 (11.0)
Dr Lal Pathlabs 202 17.4 6.9 24.8 (83) 200 34 13.3 21.4
Narayana Hrudayalaya 417 14.9 4.8 11.5 132 121 9 ‐ 200.0
Fortis 1,096 3.0 5.3 6.5 262 206 1 ‐ ‐
SeQuent Scientific 169 27.1 9.7 11.2 (379) 410 8 ‐ ‐
Biocon 877 4.7 4.9 22.5 27 (14) 101 (50.0) (1.9)
Glaxosmithkline Pharmaceuticals 651 5.0 (11.4) 16.7 (355) 183 87 (15.1) 9.2
Poly Medicure Ltd. 102 4.7 11.4 21.3 157 (4) 10 (14.5) (1.9)
Natco 311 54.7 12.7 24.4 6 (962) 48 (11.1) 29.7
Aarti Drugs Ltd. 272 (2.3) 6.0 17.0 158 46 18 (2.9) 10.3
Page 26 of 29
Q4 FY16 Results Preview
Company Net Revenue OPM % Net Profit
Rs cr Q4 FY16 yoy % qoq % Q4 FY16 yoy
bps chg qoq
bps chg Q4 FY16 yoy % qoq %
Dr Reddys' 3,883 0.3 (2.1) 24.4 317 7 524 1.0 (3.3)
Sanofi India Ltd. 537 9.9 (5.5) 17.4 40 (249) 65 1.5 24.7
Cadila 2,421 5.8 (0.3) 23.5 182 (33) 365 4.3 (6.4)
Dishman 410 (3.3) 5.4 24.4 647 (363) 41 5.1 (12.8)
Marksans Pharma 240 12.7 10.1 22.5 (191) 828 30 7.1 66.7
Abbott India Ltd. 652 8.6 (2.2) 11.0 (33) (434) 54 8.0 (23.6)
Syngene 287 13.9 2.5 34.1 81 343 62 10.7 1.6
Ajanta Pharma 440 19.2 4.8 35.0 (240) (48) 101 11.0 (1.9)
Divis Lab 929 13.2 8.9 38.9 0 111 265 14.7 7.7
Wockhardt Ltd. 1,133 5.0 5.3 7.3 (160) 103 38 16.5 (27.5)
Suven Life Sciences Ltd. 122 9.8 8.0 24.5 233 257 20 18.6 13.5
Lupin 3,888 27.3 15.8 27.9 207 179 704 28.7 32.8
Indoco 263 25.2 1.5 18.3 16 165 25 31.6 19.0
Vivimed Labs Ltd. 341 (4.5) 2.6 19.0 425 54 24 33.9 4.4
Aurobindo 3,706 16.0 4.9 23.8 323 45 549 35.9 2.6
Cipla 3,554 14.9 14.4 16.5 6 188 354 36.2 3.2
Granules 393 10.7 13.9 19.1 528 (34) 33 50.0 22.2
Pfizer Ltd. 510 10.1 0.9 21.0 (593) 479 75 74.9 85.1
Alembic 781 55.3 (15.2) 31.8 1,207 (994) 171 144.3 (36.4)
Unichem Laboratories Ltd. 292 14.0 (4.7) 11.7 588 54 25 149.9 5.3
Jubilant Life Sciences Ltd. 1,468 (4.4) 6.4 22.2 653 12 116 172.5 (0.4)
Torrent 1,535 33.0 (0.3) 37.4 2,336 (244) 442 240.0 (8.5)
IPCA 683 8.8 (0.1) 14.8 937 178 36 350.0 56.5
Glenmark 1,781 0.3 0.2 20.3 445 (48) 175 1,490.9 2.9
Shilpa Medicare Ltd. 208 24.9 5.0 19.7 (292) 7 23 2.6 (9.5)
Plastics
Astral Poly Technik Ltd 440 17.2 6.8 12.4 8 257 27 62.7 48.2
Finolex Ind 725 (7.6) 32.5 13.8 508 (158) 43 55.3 0.0
Finolex Cables 670 1.8 14.2 11.2 188 (217) 66 40.8 25.2
Supreme Inds 1,200 4.2 19.8 19.3 205 386 119 23.8 60.4
Time Technoplast 725 8.2 24.6 13.7 85 (79) 35 (3.9) 20.9
Retail
Titan Company Ltd. 2,745 9.9 (19.9) 8.2 (259) (82) 155 (27.9) (31.2)
Trent 364 9.5 (5.2) 1.8 405 (722) 16 35.4 (50.5)
Future Retail 3,200 15.4 (3.8) 9.3 (149) 16 10 (2.3) (31.4)
Shoppers Stop Ltd. 942 15.5 3.3 5.7 (28) (207) 14 40.6 (38.6)
V Mart 205 19.9 (22.9) 10.6 664 (35) 10 547.8 (30.5)
Telecom
Bharti Airtel 24,744 7.4 2.7 34.9 (27) (12) 1,179 (6.1) 5.6
Idea Cellular 9,407 11.7 4.4 35.0 (139) 27 663 (29.6) (13.2)
Bharti Infratel 3,198 8.5 3.4 43.8 (156) 39 591 5.9 4.6
Rcom 5,412 (5.0) 2.6 33.6 (95) (18) 145 (36.4) (15.2)
Tata Comm 5,179 5.4 1.5 15.2 (110) 29 12 (89.0) (45.5)
OnMobile 208 (2.8) 0.5 19.7 429 39 4 ‐ ‐
Textile
Raymond 1,550 9.8 4.4 5.5 (103) (292) 11 (30.2) (71.1)
Welspun India 1,561 14.3 4.7 26.6 136 (29) 199 20.6 12.1
Bombay Dyeing 393 (48.1) 17.1 9.5 (2,142) 1,253 (32) ‐ (58.9)
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Q4 FY16 Results Preview
Company Net Revenue OPM % Net Profit
Rs cr Q4 FY16 yoy % qoq % Q4 FY16 yoy
bps chg qoq
bps chg Q4 FY16 yoy % qoq %
Vardhman Textiles 1,790 23.6 4.0 20.2 (48) (23) 168 86.9 4.1
Arvind Ltd 2,199 7.8 1.9 12.5 0 (50) 89 88.7 (15.3)
Kewal Kiran 113 7.9 17.5 26.4 (48) 853 20 (5.2) 90.1
Bombay Rayon 1,150 12.1 5.1 16.4 (70) 36 7 (6.2) 37.8
Tourism
Westlife 185 2.2 (12.4) 1.8 117 (520) (11) 13.5 ‐
Mahindra Holidays & Resorts India 228 11.9 (3.9) 24.0 497 (147) 28 13.0 (10.1)
Jubilant Foodworks 678 25.0 6.9 12.1 (78) 18 34 7.5 6.9
Cox & Kings 519 5.9 1.4 11.0 159 (1,070) (75) ‐ ‐
EIH Ltd. 418 6.5 3.9 24.5 (251) (109) 47 (0.9) 0.2
Speciality Restaurants Ltd. 84 14.6 (0.3) 8.1 (222) (44) 1 (58.8) (20.0)
Taj GVK Hotels & Resorts Ltd. 72 5.0 (0.5) 24.5 606 (58) 4 ‐ 9.6
Indian Hotels 1,211 9.4 (7.5) 17.9 383 (240) 5 ‐ (50.0)
Wonderla 43 19.4 (14.0) 30.2 245 (577) 8 14.3 (33.3)
Adlabs Entertainment 67 36.7 (8.2) 17.9 1,587 (127) (29) (14.7) 16.0
Delta Corp 100 15.0 0.3 31.0 333 (177) 9 ‐ 34.1
Utilities
Power Grid Corp 5,502 17.0 1.8 88.2 243 (52) 4,853 20.3 1.2
NTPC Ltd. 20,385 5.5 17.1 24.0 (7) (233) 2,335 (20.7) (6.3)
Adani Power Ltd. 5,823 24.7 (6.0) 28.0 495 (443) (276) ‐ ‐
NHPC Ltd. 1,173 (20.3) (19.9) 56.0 (326) 26 238 (63.1) (38.7)
JSW Energy Ltd. 1,995 (8.9) (24.7) 45.0 430 3 159 (51.2) (50.5)
Reliance Power Ltd. 2,430 53.3 (5.1) 46.0 340 (199) 273 (1.3) (22.4)
CESC Ltd. 1,375 (2.9) (10.6) 25.0 (671) 562 136 (44.3) 21.4
Torrent Power Ltd. 2,852 9.0 (5.7) 30.0 267 (120) 263 44.7 (29.3)
Tata Power Company Ltd. 9,070 10.1 (2.8) 24.0 139 (250) 399 151.0 1,532.9
PTC India Ltd. 2,561 8.7 (12.8) 2.0 (142) 4 41 (26.8) (8.8)
Apar Industries 1,336 (0.1) 12.6 5.5 259 (54) 26 184.5 (61.5) Source: Company, India Infoline Research,
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‘Best Broker of the Year’ – by Zee Business for contribution to broking Nirmal Jain, Chairman, IIFL, received the award for The Best Broker of the Year (for contribution to broking in India) at India's Best Market Analyst Awards 2014 organised by the Zee Business in Mumbai. The award was presented by the guest of Honour Amit Shah, president of the Bharatiya Janata Party and Piyush Goel, Minister of state with independent charge for power, coal new and renewable energy.
Recommendation parameters for fundamental reports:
Buy – Absolute return of over +15%
Accumulate – Absolute return between 0% to +15%
Reduce – Absolute return between 0% to ‐10%
Sell – Absolute return below ‐10%
Call Failure ‐ In case of a Buy report, if the stock falls 20% below the recommended price on a closing basis, unless otherwise specified by the analyst; or, in case of a Sell report, if the stock rises 20% above the recommended price on a closing basis, unless otherwise specified by the analyst
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h) As IIL and its associates are engaged in various financial services business, it might have:‐
(a) received any compensation (except in connection with the preparation of this Report) from the subject company in the past twelve months; (b) managed or co‐managed public offering of securities for the subject company in the past twelve months; (c) received any compensation for investment banking or merchant banking or brokerage services from the subject company in the past twelve months; (d) received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past twelve months; (e) engaged in market making activity for the subject company.
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