Hindustan Unilever (HUVR IN, INR 2,010, Buy) The COVID-19 outbreak battered the FMCG market when it was already slowing down. On top of that a 10–12 day disruption in Q4FY20 led to a 7% YoY dip in volumes for HUL, belying consensus forecast of flattish volume growth (Edelweiss estimate: 4% YoY dip). The key question […]
As OEMs brace for second consecutive year of (sharp) volume deceleration, we find these businesses resilient. This is reflected in higher or similar cash per share (as % of price) compared to GFC, despite a shallower price drop. Our bedrock analysis also indicates that even after 30-65% volume fall (from FY19 peak) and profit dip […]
Hits: · Overall advances grew by 19.9% YoY to INR 9.36lac cr led by corporate growth which has registered 26.6% YoY growth and constituting 49% of overall advances. Retail loans growth has moderated due to muted growth in vehicle loans. · Deposits grew by 25% YoY to INR 10.67tn. CASA grew by 21.5% YoY (Highest […]
Hits: · Net Interest Income (NII) grew by 21% YoY to INR 1,423 cr on back of 62bps YoY improvement in NIM to 5.6% · Focus book registered growth of 14% YoY to INR 93,957 cr. However, total AUM increased by only 5% YoY to INR 99,454 cr mainly because of 55% YoY/24% QoQ de-growth […]
Hits: i. HCL Tech delivered an impressive Constant Currency revenue growth of 16.4% on a YoY basis which is the sixth consecutive quarter of double digit growth. ii. On a sequential basis revenue growth was 2.1% which was slightly ahead of the consensus expectations of 2%. iii. Product & Platform’s share in the total revenue […]
Inline revenue growth & EBIT margin numbers Hits: i. CC revenue growth on a sequential basis came in at 1.5% which was in line with the street expectation. ii. EBIT margin came in at 25% which was in line with the expectation, improvement in the margin was led by higher utilization & INR depreciation. iii. […]
The government ended 2019 with a bang by rolling out the National Infrastructure Pipeline (NIP). With a vision to spend INR100tn on infra over FY20-25 (~2x FY14-19 investments), NIP sets the ball rolling to achieve the objectives of: (a) improving India’s global competitiveness by creating new & upgrading existing infra; and (b) initiating a virtuous […]
The 6% YoY dip in consumer durables IIP in FY20 (April-October) prompted us to delve deeper into the impact of the all-pervasive economic slowdown. Key highlights of our channel checks are: a) the vagaries of the weather were the sector’s saving grace—cooling segment grew 33% in H1FY20 & heating products too are estimated to post […]
We estimate the top 5 Indian IT players—Infosys, TECHM, HCLT, TCS and Wipro—to report revenue growth of 1.6–4.1% QoQ in constant currency (cc) in Q3FY20. A strengthening GBP versus USD is likely to add 20–35bps to cc growth, in our view. Barring TechM and HCLT, we expect margins of the other three to rise 40–65bps […]
CY19, for most part, has been a challenging year for the sector with: 1) unprecedented dip in steel prices; and 2) global demand woes exacerbated by trade wars. However, in the past three months, favourable macros seem to be helping the sector to revive. On the earnings front, as expected, the cuts have been sharp […]