Quick Finance Updates

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  • SBI post FY 2019-Q3 net profit at Rs. 3,955 crore – 1st Feb 2019
    Net profit at Rs. 3,955 crore versus net loss of Rs. 2,416 crore
    Net Interest Income up 21% to Rs. 22,691 crore
    GNPA at 8.71% versus 9.95% (QoQ)
    NNPA at 3.95% versusl 4.84% (QoQ)
  • Dr Reddy’s FY 2019-Q3 numbers beat estimates – 1st Feb 2019
    Revenues up 1% to Rs. 3850 crore
    Net profit up by 45% to Rs. 485 crore
    Ebitda up by 6% at Rs. 815 crore
    Margins at 21.1% versus 20.2%.
  • Nikkei Manufacturing PMI jumps to 13-month high – 1st Feb 2019
    India’s manufacturing activity rose to 13-month high in January on robust demand and production, data from IHS Markit showed on February 1, 2019.
    The Nikkei India Purchasing Managers’ Index rose to 53.9 in the month of January compared to 53.2 in the previous month.
    The indicator stayed above the 50 point mark, which separates expansion in the activity from that of contraction, for the 18th straight month.
  • Eicher Motors reports 13% decline in January 2019 – 1st Feb 2019
    Eicher Motors January 2019 Commercial Vehicles dispatched decline by 13% y-o-y to 5906 units on account of a high base in the corresponding month of the previous year.
    The decline in the sales is on account of a likely market share loss. The numbers are below our estimates of 6500 units.
  • Ashok Leyland January 2019 sales nos above estimates – 1st Feb 2019
    Ashok Leyland January sales numbers at Rs 19,741 units is up 9% YoY and ahead of the estimates of 17,450 units.
    The MHCV Segment volumes grew 8% YoY aided by a strong 9% growth in the truck segment, while the MHCV bus segment sales were up 1%.
    The LCV Segment sales were grew 13% YoY on account of a steady demand for last mile connectivity and new product launches.
  • Petronet LNG’s FY 2019-Q3 operating profit at Rs.848 crore – 1st Feb 2019
    Petronet LNG’s (PLNG) Q3FY2019 operating profit at Rs. 848 crore (flat YoY; down 5.8% QoQ) was above our estimate of Rs. 812 crore due to lower than expected operating cost partially offset by lower than expected utilization rate at Dahej and Kochi terminal.
    Dahej terminal re-gas volume at 197tbtu (down 8.4% YoY; down 6.6% QoQ) was below our estimate of 204tbtu. Dahej utilization rate declined to 103% vs. 112.5% in Q3FY2018.
    Kochi terminal volume stood at 5tbtu (down 37.1% YoY; down 16.4% QoQ) leading to lower utilization rate of 7.9% vs 12.6% in Q3FY2018.
    The PAT at Rs. 565 crore (up 6.9% YoY; down 1.5% QoQ) was also higher than our estimate of Rs. 540 crore on account of higher than expected operating profit and lower than expected effective tax rate at 30.3% (vs our assumption of 32%) partially offset by lower than expected other income (down 20.7% QoQ).
    We have Buy rating on Petronet LNG.
  • V-Guard FY 2019-Q3 net sales grew by 12.2% yoy to Rs.594.3 – 1st Feb 2019
    The net sales for the quarter grew by 12.2% YoY to Rs. 594.3 crore primarily driven by electronics and consumer durable business. Electronics grew 17.4% yoy to Rs. 152.5cr and Consumer durables (fans and water heaters) registered a growth of 22.6% yoy to Rs. 183.8 crore. Electricals (switchgears and wires) segment saw a marginal growth of 3.2% yoy to Rs. 257.9 crore. The operating margins contracted by 175BPS YoY to 7.6% leading to 8.9% YoY decline in operating profit on account of higher commodity prices and volatility in currency exchange rate. Further higher other income (up 69.6%) and lower tax outgo (Sikkim facility benefit) led to lower decline in adjusted net profit (down 5.7% YoY) to Rs. 34 crore for the quarter. Buy rating on the stock.
  • Budget 2019 – Inside the FM’s briefcase – 1st Feb 2019
    Finance Minister Piyush Goyal will present the Interim Budget 2019 at 11 a.m. today and here are the key things expected –
    Sops for farmers: The Interim Budget 2019 will likely include package for farmers that may be serviced in form of direct benefit transfers or interest waivers. However, package for farmers may cost the centre around Rs 1.5 trillion and add to fiscal worries as GST revenues have fallen short of expectations. Tax incentives for salaried class: Reports suggest that the government may provide tax relief to individuals by slashing rates or hiking the tax exemption limits or increasing standard deductions. May increase funding for NSAP: The centre may grant more funds for the National Social Assistance Program (NSAP) in the interim Budget. NSAP is a pension scheme introduced to provide financial assistance to the elderly, widows and disabled and the government may increase cash transfers under the scheme. The FY19 allocation under the NSAP is Rs 9,975 crore compared to 8744.57 crore for FY18. Markets are also trending in the green with the Nifty inching towards 10900.
  • Maruti Suzuki January sales up by 0.2% to 1.51 lakh units – 1st Feb 2019
    Maruti Suzuki’s January 2019 sales numbers at 151,721 units are flat on YoY basis and broadly in line with our estimates of 152,500 units. Continued weak consumer sentiment impacted the PV segment volumes. The compact segment volumes declined marginally by 4% on account of a high base in the corresponding month and weak demand. Ciaz sales too declined by 42% on a weak demand. The Mini segment sales were almost flattish for the month. The utility vehicle segment sales grew 8% YoY on account of a strong demand for the new Ertiga and steady demand for Brezza. The Vans segment sales grew by 24% YoY on a low base of the corresponding month. Export volumes continue to remain weak and declined 11%.
  • Laurus FY 2019-Q3 Sales grew by 10.5% – 1st Feb 2019
    Sales for the quarter grew by 10.5% to Rs. 529.5 crore (3.7% below our estimate).
    Operating profit grew by 0.5% to Rs. 87.3 crore (4.7% above our estimate).
    Adjusted PAT declined by 48.3% to Rs. 17.8 crore (in-line with our estimate)
    There is no significant price increase of raw materials in Q3, based on overall backward integration/alternative sourcing for a few intermediates already implemented and some are in pipeline.
    Cost of borrowing has increased by 0.5% due to increase in base lending rates during the quarter.
    We currently have a positive view on the stock.
  • Centre revises FY18 GDP growth rate to 7.2% from 6.7% – 1st Feb 2019
    The government on January 31, revised its forecast for GDP growth for 2017-18 to 7.2% from the earlier estimate of 6.7%. It also revised the actual growth rate in 2016-17 to 8.2% from the 7.1% estimated earlier.
    The provisional estimate of gross domestic product (GDP) for 2017-18 was released by the Centre on May 31, 2018, which showed real or inflation-adjusted GDP growth at 6.7%.
  • NCC bags orders worth Rs 4089.7 crore in January – 1st Feb 2019
    NCC has received nine new orders totaling to Rs. 4089.7 crore (exclusive of GST) in the month of January,2O1r9. Out of this, three orders totaling to Rs. 922.5 crore pertain to Roads Division, five orders totaling to Rs. 2580.6 pertain to Building Division and one order of Rs. 586.6 Crore pertains to Water Division. These orders are received from Central / state government agencies and do not include any internal orders.
  • Escort reports 13% growth in tractor sales for January – 1st Feb 2019
    Escorts January 2019 dispatches at 5,991 units are up 13% YoY and are in line with estimates of 5,925 units. The domestic sales grew 12% YoY to 5,762 units driven by market share gains. Exports volumes were up 47% YoY on account of improving demand in the key exports markets and entry in the newer markets.
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