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Summary of management concall attended by our Analysts post Q3FY18 earnings
Company Name Page Company Name Page
Aegis Logistics Limited …………………………….…..3 4 Deep Industries Ltd……………………………………….. 18
Allcargo Logistics Ltd …………………………………………………….4 Dewan Housing Finance Co. Ltd.…………………………... 18
Apollo Tyres Ltd ………………………………………………..5 Dhanuka Agritech Ltd………………………..……………….. 19
APL Apollo Tubes Limited……………….. 5 Dilip Buildcon Ltd……………………………….………………… 19
Ashoka Buildcon Ltd ……………………………………… 6 Dishman Pharma Ltd…………………………..………………… 20
Ashok Leyland Ltd ……………………………. 6 Drreddy Ltd…………………………………..…………………… 20
Agro Tech Foods Ltd…………………………. 7 Eicher Motors Ltd………………………………….……………. 21
Aurobindo Pharma Ltd………………………………………………………………..7 EID Parry ( India) Ltd………………………………..………… 21
Axis Bank Ltd………………………………………………………..8 Equitas Holding Ltd……………………………………..…….. 22
Bajaj Auto Ltd ……………………………………………... 8 Escorts Ltd…………………………………………...……... 22
Bajaj Corp Ltd……………………………………………….. 9 Federal Bank Ltd……………………………………………..…. 23
Bajaj Finance Ltd……………………………………………………..9 GAIL (India) Ltd…………………………………………………………...23
Biocon Ltd………………………………………………………….10 Gayatri Projects Limited……………………….. 24
Britania Industries Ltd………………………………………...10 Glenmark Pharmaceuticals Ltd……………………... 24
Cadila Healtcare Ltd……………………………………………….11 Godrej Consumer Products Ltd……………………..... 25
Canara Bank………………………………………….. 11 Gujarat Pipavav Port Ltd…………………………… 25
Castrol India Limited…………………………….. 12 Granules India Ltd………………………………..….. 26
CEAT Ltd……………………………………………………………………....12 Hindalco ……………………………………………………….… 26
Century Plyboards (India) Ltd…………………………………..13 HDFC Bank Ltd……………………………………………...…….. 27
CholaFin………………………………………………….. 13 Hero MotoCorp Ltd…………………………………………….…27
Cipla Ltd………………………………………………………….. 14 Hindzinc …………………………………………………….... 28
City Union Bank Ltd ……………………………...…………….14 Hindustan Media Ventures Ltd…………………………… 28
Cyient Ltd…………………………..…………………………. 15 Hindustan Unilever Ltd……………………………………..... 29
Dabur India Ltd…………………………….……………… 16 IIFL Holdings Limited………………………….. 29
DBCORP Ltd…………………………………..………………… 16 ICICI BANK LTD……………………………………………………………30
DCB Bank Ltd……………………………………..…………….17 Indiabulls Housing Finance Ltd …………………………………..30
DCM Shriram Ltd…………………………………..…………. 17 Indian Bank ……………………………………………………..………….31
Indusind Bank Ltd………………………………………………………………...31
Infosys Ltd…………………………………………………………………...………….4 KEC Ltd………………………………………………………………………….……. 12
Inox Ltd …………………………………………………………………………………5 KNR Constructions Ltd ……………………………………………………………...13
Insecticides (India) Ltd………………………………………….……………...6 KPIT Technologies Ltd………………………………………………… 13
IRB Infrastructure Developers …………………………………………6 Lakshmi Vilas Bank Ltd……………………………………………...…… 14
Jammu & Kashmir Bank Ltd ……………………………………………………………7 Larsen & Toubro Infotech Ltd…………………………………..….. 14
Jindal Saw Ltd……………………………………………………………………….8 LIC Housing Finance Ltd………………………………………………………..15
Jkumar Infraprojects Ltd……………………………………………………….8 Lupin Ltd ………………………………………………………………………………..16
JSW Steel Ltd…………………………………………………………… 9 Mahanagar Gas Ltd …………………………………………………………………...16
Jubilant Foodwork Ltd………………………………………………………....10 Mahindra & Mahindra Ltd …………………………………………………………..17
Kalpataru Power Transmission……………………………. 10 Mahindra & Mahindra Financial Services Ltd…………………….... 17
Karnataka Bank Ltd……………………………………………….. 11 Manpasand Beverages Ltd…………………………………………….. 18
Karur Vysya Bank Limited………………………………… 11 Marico Ltd …………………………………………………………………………....18
Kotak Mahindra Bank Ltd……………………………………. 12 Maruti Suzuki India Ltd ………………………………………………………....19
ContentsPart 1
Part 2
Page Page
Mindtree Limited………………………………………… 19 Skipper Limited………………………………………… 27
Motherson Sumi Systems Ltd ……………………………….…………………………...20 Sonata Software Ltd ……………………………….……………………………......28
Muthoot Capital Services Ltd…………………………. 20 Subros Limited………………………………………… 29
Orient Bank of Commerce…………………………… 21 Sun Pharmaceuticals Industries Ltd………………………….. 29
Parag Milk Foods Ltd……………………………………………………….21 Suven Life Sciences Limited……………………………. 30
PC Jeweller Ltd………………………………………..……. 22 Tata Consultancy Services ……………………………………………….... 30
Persistent Systems Ltd …………………………….……………………………....22 Tata Elxsi Limited…………………………………….. 31
Petronet LNG Ltd ………………………………………………………………...23 Tatasponge…………………………………………...…. 31
PNB Housing Finance Ltd………………………………………………………………..23 Tech Mahindra Ltd ………………………………………………………….... 32
PNC Infratech Ltd ……………………………………………………… 24 TV Motor Company Ltd …………………………………………...…… 32
PVR Limited……………………………………...…………. 24 Ujjivan Financial Services …………………………………………… 33
RBL Bank Ltd …………………………………………………………………………..25 Union Bank of India……………………………………….. 33
Repco Home Finance Ltd…………………………………………...…………………..25 Yes Bank Ltd …………………………………...………………………………….34
Sadbhav Engineering Ltd ……………………………………………………....26 Zensar Technologies Ltd……………………………………………….. 34
State Bank of India…………………………………...………. 26 Zydus Wellness Ltd ………………………………………………….. 35
Shriram Transport Finance Co. Ltd………………………………………….27
ContentsCompany Name Company Name
Company Infosys Ltd
INDUSTRY Software & Services
12th Jan 2018 Q3FY18 EARNING CONFERENCE CALL
Management Participants
CEO & MD
Salil S. Parekh
COO
Mr. Pravin Rao
CFO & Exe VP
Mr. Ranganath D. Mavinakere
Our analyst in the call
Niharika Ojha
♦Strategy update from New CEO: The newly appointed CEO is in the process of evaluating 4
business dimensions, namely new geographies, client engagements, people and service portfolio,
and plans to conclude this exercise by April to set strategic priorities for the company.
♦Deal wins: The company announced 8 large deal wins in Q3FY18 with TCV of deal wins at
US$779mn. The TCV of deal wins in 9MFY18 was US$2,167mn, down 19% yoy.
Narnolia Securities Ltd Please refer to the Disclaimers at the end of this Report
♦Tax reversal: Infosys signed agreement with US IRS in accordance with the Advance Pricing
Agreement (APA), leading to reversal of income tax provisions worth US$225mn during the
quarter. This would also lead to lower ETR going forward by 100bps. However, it would mean
cash outgo of US$233mn towards settlement of tax liabilities during the agreement covered
period of 2011 and 2021.
♦Performance-based variable payments were made during the quarter. Payouts were higher than
previous years.
♦Infosys has retained it’s near term EBIT margin range of 23-25%. Management is counting on
onsite/offshore role mix optimization as operating profit margin lever, as current Utilization
excluding training increased further to an all-time high of 84.9 which is a full 3% improvement.
Efforts towards moderation of onsite mix has led to onsite mix decreasing to 29% in 3QFY18
which is the lowest level in last 11 .
♦Vertical Performance:Growth in financial services was impacted in Q3FY18 due to higher than
normal furloughs, budget cuts in few large clients and transition underway in some large
deals.But the management expects good traction and stability in spending. Deal pipeline is
strong for FY19.MFG & Hi-Tech grew by 0.1% sequentially and declined by 0.1% in constant
currency . Telecom sector is witnessing growing interest in cyber security, artificial intelligence,
5G and cloud computing.New software (Edge, NIA, Panaya and Skava) contributed to 1.7% of
total revenue. Digital revenue constitutes 11% of total revenue.
♦Growth across geographies was dominated by Europe which grew by 5.9% sequentially and
4.7% in constant currency. This was followed by Rest of the world grew by 4.6% sequentially
and 4.0% in constant. Growth in North America grew by 0.7% sequentially and 0.7% in constant
currency and India declined by 5.9% sequentially which was lower than that of company
average.
Company INOX LEISURE LTD.
INDUSTRY Media
29th Jan 2018 Q3FY18 EARNING CONFERENCE CALL
Management Participants
CEO
Mr. Alok Tandon
CFO
Mr. Upen Shah
Director & Group Head
Finance
Mr. Deepak Asher
Our Analyst in the Call
Niharika Ojha
Narnolia Securities Ltd Please refer to the Disclaimers at the end of this Report
♦New property for 3QFY18 is 3 more property with 12 screens.
♦Mgt expects to open 5 property with 22 screen with 4747 in FY18.
♦Tied up 122 property post FY18 with 622 screens and 13000 seats.
♦Content pipelines continued to be strong in 4QFY18.
♦Expect trend of capex to be 2.5 crore per screen.
♦With rise in inflation sees some normalize inflation property area.
♦Price will rise in future if the management sees quality content.
♦Realization in F& B will be improved by increase in combo prices going forward.
♦Footfall fell to 121 crore decline of 2.7%.thus Occupancy rate fell to 24% from 26% in
3QFY17.
♦Average ticket price improved from 183 to 199 in FY18 that is growth of 9.6% YOY.
♦Advertising revenue increased to 33% this quarter .Working on improvement in advertising
revenue from last few quarter is now showing results.
♦Outlook for margin: Even after inflation to maintain the current level of 4 to 5%.
♦Revenue for 3QFY18 is 325.9 crore that is 9% growth yoy.EBITDA stood at 46.5% that is 46
% growth yoy.
♦Revenue from operation includes net block grew by 6.5% to 187.9 crore, food & beverage
grew by 8.2% to 73.1 crore and advertisement grew by 333.2% to 40.3 crore.
♦Advertisement revenue now constitutes 12.4% of total revenue, thus 20% of revenue comes
from other than box office collection from advertisement and food & beverage.
Company Insecticides (India) Ltd
INDUSTRY Agrochemicals
15th Feb 2018 Q3FY18 EARNING CONFERENCE CALL
Management Participants
Chairman
Mr.Hari Chand Agarwal
MD
Mr.Rajesh Agarwal
Our Analyst in the Call
Ritika Jalan
CompanyIRB Infrastructure Developers
Ltd.
INDUSTRY Construction & Engineering
7th Feb 2018 Q3FY18 EARNING CONFERENCE CALL
Management Participants
CMD
Mr.Virendra Mhaiskar
GROUP CFO
Mr.Anil Yadav
GROUP CS
Mr. Mehul N Patel
Our Analyst in the Call
Sandip Jabuani
♦For Kayakalp company has reduced a sales target from Rs15 Cr to Rs10Cr for FY18 and is
confident that it will generate revenue of Rs100Cr over three year.
♦Company will take advantage of the government’s thrust on Make in India by enhancing its
existing manufacturing facility at Dahej. In the first phase, the company will spend Rs30Cr for
expanding the present plant for forward integration. In the second phase, the company has
earmarked ~Rs100Cr for setting up Unit 2 at Dahej to augur new technical products /
intermediary capacity.
♦The company is likely to launch ~10 new products in FY19, mostly in the 9(3) category, which
will drive margin improvement by 250- 300bps over FY19-20.
♦Management pointed out that the company has been reducing generic sales, especially that of
Red Triangle products each year by Rs40Cr-50Cr, which is getting compensated by higher sales
of new generation molecules.
♦Tax rate to remain in the range of 28%-30% in FY18 & FY19.
♦Management indicated that it will further improve margins from current levels by at least
150bps in FY19 on the back of the rising share of Technical segment and a superior product
mix.
♦Management retains the guidance of top line to increase by 15% in FY19.
♦Currently, exports stand at ~Rs35Cr-40Cr.Management sees a huge opportunity in the Exports
segment and aims to double the sales by FY19.
Narnolia Securities Ltd Please refer to the Disclaimers at the end of this Report
♦IRB has submitted bids for 3 HAM projects and continue to evaluate opportunity in BOT and
ToT model.
♦Company has witnessed 9% traffic growth across the road portfolio.
♦Incentive paid on completed projects lead to higher employee cost during the quarter. Normally
Employee cost is around Rs.260-270 Cr annually.
♦Continue to expect Rs.3800 Cr of Construction revenue in FY18.
♦IRB has received appointment date on Chittorgarh Gulabpura in November and subsequently
tolling has commenced on the project. Initial toll daily collection is higher than what was
anticipated at the time of bidding.
♦Traffic is coming back to Ahmadabad Vadodra project. On NH-8 stretch daily toll collection is
50 lakh/day compared to 42 lakh/day
♦Company has submitted toll loss due on Ahmadabad Vadodra project to NHAI and expect in
favour judgment.
♦Current outstanding order book is Rs.7400 Cr with 1.8x of TTM revenue.
♦Management expects to win at least 500 Km of new projects in FY19.
♦Currently 20-25% of toll revenue is collecting through digital mode and the share of digital
mode revenue will go up.
♦Equity requirement of Rs.1400 Cr and which will invest over next 2 years.
CompanyJAMMU & KASHMIR BANK
LTD.
INDUSTRY Commercial Banks
2nd Feb 2018 Q3FY18 EARNING CONFERENCE CALL
Management Participants
Chairman & CEO
Mushtaq Ahmad
Our Analyst in the Call
Anu Gupta
Narnolia Securities Ltd Please refer to the Disclaimers at the end of this Report
♦Sustaining the growth momentum the bank is actively managing the capital requirement for
which it has already raised tier II bonds of around 1000 crore in addition to the infusion by the
J&K govt and the addition tier I capital contributed by the revolution of banking properties.
♦The accounts which have been referred to NCLT and the couple of them the bank is having the
resolution either through ARC and other routes.
♦The Bank is able to maintain healthy margin on account of very active liability management.
♦Credit growth is expected around 20-25% in the J&k ,15-18% in the rest of India and 20% for
the overall current fiscal.
♦CASA will be maintained at 50% , credit cost less than 2% and an attempt will be taken to
bring GNPA to sub 10% and NPA ratio to sub 4%.PCR to be around 70% , NIM above 4.34%
and ROA to be at 0.4% for FY17-18.
♦Out of 6700 crore in restructured book 4794 crore is within J&k estate and 1920 crore is from
rest of India.
♦So far the restructure book is concern more than 50% of the total J&K restructured book of
around 4800 crore is in the shape of running accounts.
♦Coverage ratio will record improvement in the coming quarters in account of the additional
provision.
♦The Bank is also planning to raise additional tier I capital through the perpetual debt
instruments and equity issue through a QIP route.
Company Jindal Saw Ltd.
INDUSTRY Metals/Mining/Minerals
24th Jan 2018
Management Participants
CEO & Whole Time Director
Mr. Neeraj Kumar
Global Head Treasury
Mr. Vinay Gupta
Our Analyst in the Call
Sagar Sharma
Company JKUMAR INFRAPROJECTS LTD.
INDUSTRY Construction & Engineering
15th Feb 2018 Q3FY18 EARNING CONFERENCE CALL
Management Participants
Executive Chairman
Mr.Jagdishkumar Gupta
CFO
Mr. Arvind Gupta
MD
Mr. Kamal Gupta
Our Analyst in the Call
Sandip Jabuani
Q3FY18 EARNING CONFERENCE CALL
♦Will bid for metro line 5,6 and 7. Estimated project cost will be Rs.3000 Cr each.
♦Debtors at the end of the quarters was Rs.542 Cr but it will come down by year end.
♦Till date received mobilization advances of Rs.710 Cr and pending is around Rs.100 Cr
♦EBITDA to sales ratio fell because of change in contract structure .Pre –GST regime job work
was included in top line & Raw material prices were passing through. In GST regime all the
contract for water were executed by way of job work are all now executed as normal contract.
Therefore, top line now includes raw material prices as well.
♦And, execution of more water project which are of lower margin (large dia) than oil & gas
project. Combination of high execution of water pipeline project & collapse of pre GST contract
structure led to fall in EBITDA to sales ratio.
♦Exceptional loss of Rs.30 cr was because of sale of last two ships that company had, Which
completed the exit from water way business.
♦Current order book of 1.2 million ton. No major capex on the horizon.
♦Maintain revenue guidance of Rs.2200-2300 Cr for FY19
Narnolia Securities Ltd Please refer to the Disclaimers at the end of this Report
♦Expected to produce more than million ton for FY18. Expect volume growth of 15-20% in
FY19.
♦Stainless business picking up very good, currently going through pre-qualification & up
gradation process. Sharp growth in stainless business expected and company hopes to become
among top three players in one year.
♦Growth drivers are expected to be through value addition and cost control. Expects Middle
East market to open up.
♦Company looking up for opportunities in East Africa, Egypt, Vietnam, Singapore. Export
market likely to improve in near future.
♦Raw material prices firmed up and company has been successful in passing it on with increase
in pipe prices.
♦ONGC continues to be a strong client, new order on seamless front.
♦Increase in demand from water pipeline projects.
♦Huge metro projects are coming up in all over the countries and actively bid for Mumbai,
Ahmadabad and Surat metro projects.
♦Revenue from Metro line-3 and JNPT will be Rs.250 Cr and 160 Cr respectively in Q4FY18.
Company JSW Steel Ltd.
INDUSTRY Consumer Services
31st Jan 2018 Q3FY18 EARNING CONFERENCE CALL
Management Participants
Joint MD & Group CFO
Mr.Seshagiri Rao
Dy. MD
Dr.Vinod Nowal
Director, Commercial &
Marketing
Mr.Jayant Acharya
CFO
Mr.Rajeev Pai
Our Analyst in the Call
Sagar Sharma
Narnolia Securities Ltd Please refer to the Disclaimers at the end of this Report
♦Out of 5 mines acquired by company 2 mines are expected to be commissioned In FY18 and
would have combined reserve of .71 million ton of iron ore , required approvals for rest 3 mines
are expected to be obtained by 30 September 2018 & would amount to 4.71 million tons of iron
ore reserved (5 mines combined).
♦Revenue acceptance of Rs.1249 crore and capex acceptance of Rs.194 crore.
♦Weighted average interest cost at 7.03%.
♦Capex guidance reduced from Rs.8000 crore in FY18 to around Rs.6000 crore.
♦Corporate Income tax rate in US has been reduced to 21% which led to reversal of deferred tax
liabilities amounting to Rs.572 crores for the US business.
♦4QFY18 expected to be better than other three quarters led by better volume and better
realization.
♦Exceptional item of Rs.264 crore provision for impairment towards Goodwill, Mining
Development and advances relating to surrender of one of its iron ore mine in Chile.
♦Steel Prices are expected to be range bound in 4Q. Long products prices are expected to be
better than flat products and sustain in 4QFY18.
♦Higher sales volume because of focus on increasing exports sales volume (up 24% QoQ) and
increase in demand for long products.
♦Coated products volume got impacted because of planned shutdown of 2 of its galvanizing
lines at Tarapur for maintenance and revamping to enhance production capacities.
♦Price of coated products took time to catch up & is expected to pick up in 4QFY18.
♦Steel prices increased by 5-6% but are still are at discount to international prices.
♦Coking coal prices are expected to be $10-$15 more per ton QoQ basis.
Company Jubilant Foodworks Ltd.
INDUSTRY Consumer Services
19th Jan 2018 Q3FY18 EARNING CONFERENCE CALL
Management Participants
Chairman & Director
Mr.Shyam S. Bhartia
Co-Chairman & Director
Mr. Hari S Bhartia
CEO
Mr. Pratik Pota
Our Analyst in the Call
Pramila Lakra
Company
Kalpataru Power Transmission
Ltd.
INDUSTRY Construction & Engineering
8th Feb 2018 Q3FY18 EARNING CONFERENCE CALL
Management Participants
Chairman
Mr. Manish Mohnot
Dy. Managing Director & CEO
Sh. S K Tripathi
Our Analyst in the Call
Sandip Jabuani
♦Dunkin loss impact in 3QFY18 was 112 bps QoQ and 218 bps YoY.
♦Subham utilization level during the quarter was 80% and it will improve going forward.
♦Revenue growth of JMC projects will be 20% plus in FY18 and 15% in FY19.
♦CAPEX for FY18 will be 70cr in total.
♦SSG in 3QFY18 is 17.8%(over -3.3% in 3QFY17).
♦Online delivery is available in 6 towns and 42 resturants.
♦Store guidance: Domino’s - 30 plus stores in FY18 & Dunkin - 5 Stores in FY18(1 store in
4QFY18- size will be 300-650 sq ft.).
♦Due to loss dunkin has cut down to 12 cities out of 23 cities.
♦GST on restaurants has reduced to 5 %.
♦Dominos Pizza – Opened 3 stores & closed 1 store (Total till date is 1127 stores across 265
cities) and Dunkin Donuts- opened 1 store & closed 9 stores (Total till date is 44 stores across
12 cities) during the quarter.
♦In 3QFY18 EBITDA is Rs. 136.9 Cr , 17.2% of sales (highest EBITDA since3QFY13).
♦PAT in 3QFY18 stood at Rs. 66 Cr, growth of 230.6% over 3QFY17( highest PAT since
3QFY14).
♦Strong focus will be on dunkin and beverages in FY18.
♦ Based on the current order book KPTL revenue will grow 15-20% in FY19.
♦Management is continuing to bullish on International T&D business and expect strong orders
from Africa, SAARC and Middle East.
♦Debt will remain at this level.
♦Expect 11% EBITDA margin for FY19.
♦Management expect pipeline business will grow 25-30% at least next couple of years.
Narnolia Securities Ltd Please refer to the Disclaimers at the end of this Report
♦Competitive Intensity is high in pipeline business but based on the strong team and enough
technical credential mgt. expect healthy order Inflow.
♦Does not expect strong traction in domestic T&D business. It will grow by 10%.
♦Management is bullish on Railway business and expect to do double revenue by next year.
Revenue from railway in 9MFY18 is Rs.350 Cr.
♦Capex for KPTL will be 100-120 Cr for FY19
♦Interest cost as % of sales will remain 2/3% for KPTL/JMC in FY19.
Company Karnataka Bank Ltd.
INDUSTRY Commercial Banks
12th Jan 2018 Q3FY18 EARNING CONFERENCE CALL
Management Participants
Non Exe. Chairman
Mr. Ananthakrishna
MD&CEO
Mr. P. Jayarama Bhat
Director
Mr. S.V. Manjunath
Chief General Manager
Mr. Mahabaleshwara Bhat
Our Analyst in the Call
Anu Gupta
Company Karur Vysya Bank Limited
INDUSTRY Commercial Banks
31st Jan 2018 Q3FY18 EARNING CONFERENCE CALL
Management Participants
MD & CEO
K Venkataraman
Chairman
Mr. K P Kumar
President & COO
Mr.T Sivaramaprasad
Our Analyst in the Call
Anu Gupta
Narnolia Securities Ltd Please refer to the Disclaimers at the end of this Report
♦C/I ratio will be in the range of 42-45% for FY2020.
♦In the transformation journey there will be change in the advance mix. Focus will be more on
Retail & Mid corporate.
♦The major strategy was to grow retail & commercial assets faster and a consequence reduce in
overall share of corporate book.
♦Liability book is largely retail and it gives a great opportunity to grow retail asset book.
♦Net addition to NPA amounted to Rs 638 crore during the quarter of which corporate is Rs 581
crore. All NCLT assets are now classified as NPA.
♦Last quarter 1200 crore was in the watchlist out of which 550 crore classified as NPA in
Q3FY18 and other 650 crore is to be expected to be NPA in the next two quarter.
♦NIM remains buoyant on YoY basis to 3.71% but dropped 10% sequentially on due to
substantial interest reversal on account of elevated NPA recognition.
♦Provisioning will continue to remain little bit elevated because of the need to improve PCR
from the current level.
♦During the quarter the bank got 25 crore profit from sale of investment and recognize 19 crore
worth of diminution in the value of the book.
♦The bank is holding over 500 crore outstanding security receipts.
♦Opex has increased due to branch roll out, increase in employees and also increase in wages.
Enormous focus will be given to build CASA.
♦Insurance partner of the bank right now is Birla sun life and Bajaj Allianz.
♦Out of the total income of Rs 786 crore for the quarter around 3% is related to PSLC.
♦19 branches is expected to be opened in Feb end itself.
♦25% loan growth is expected in the FY18.
♦CASA is 28.23% of total advances.
♦SMA-2 stood at 1218.24 cr.
♦RWA has been decreased due to lending loans to top rated (AAA and AA) corporate sectors.
♦Slippages during the quarter stood at 211 cr and is expected to decrease going forward.
♦Retail composition -46% of total advances.
♦Total account in NCLT-52, 12 in 1st list and 40 in 2nd.
♦Aiming ROE more than 18% for FY2020-24.
♦Margin is 3.09%. It is expected to hold down and improve further.
♦O/s exposure under : 5/25 -169.63 cr (4 A/c),S4A-346.95 cr (4 A/c),SDR -182.50 cr (4 A/c).
♦Security receipt portfolio consists of 450.50 cr.
Company Kotak Mahindra Bank Ltd.
INDUSTRY Commercial Banks
19th Jan 2018 Q3FY18 EARNING CONFERENCE CALL
Management Participants
President & Group CFO
Mr. Jaimin Bhatt
Chairman
Mr. Shankar Acharya
Joint MD
Mr. C Jayaram
Our Analyst in the Call
Anu Gupta
Company KEC International Ltd.
INDUSTRY Construction & Engineering
7th Feb 2018 Q3FY18 EARNING CONFERENCE CALL
Management Participants
MD & CEO
Mr.Vimal Kejriwal
CFO
Mr. Vardhan Dharkar
SR. MANAGER IR
Mr. Nitin Kalani
Our Analyst in the Call
Sandip Jabuani
♦23% YoY loan growth book both on consolidated & standalone basis. 20% loan growth seems
to be sustainable.
♦SMA-2 book o/s -308 cr.
♦Significant growth in subsidiaries especially in 4 areas namely Securities business, Investment
Banking business, Asset management and life Insurance business.
♦Digital A/c launched in March 2017 has doubled the number of customer around 16 mn in
Q2FY18 and is in same trend in the current quarter.
Narnolia Securities Ltd Please refer to the Disclaimers at the end of this Report
♦Competitive intensity in railway has come down as huge orders are announced under
Bharatmala Projects. Eyeing on International markets for Railway Electrification projects.
♦Revenue growth in FY18 will be 10%. Interest as % of Sales will remain at 2.5-2.7%.
Expect strong traction from North East region for power T&D business.
♦Civil Order book will be double by next year.
♦Trading segment in SME book would be more cautious going forward.
♦Micro trend seems to be strong and Macro more challenging.
♦70% orders of L1 orders of Rs.4000 Cr are from India and out of these major orders are from
Railway. Expect 50 bps improvement in EBITDA margin in FY19.
♦High GST rate impacted Cable business. But now with reduction in GST rate, Mgt. expects
recovery.
♦Debt has increased due to delay in payment but it will come down at the year end.
♦Rs.2500 Cr of orders in SAE order book will start converting into revenue from November
2018. Expect 15-20% revenue growth in FY19.
♦Growth in order inflow from Brazil will be higher than the current growth rate.
♦Introduced facial authentication app this quarter. Online shopping below 2000 without OTP
has shown significant increase in transaction.
♦Tax profit of 50 crore during the quarter.
♦Robust and strong growth on SA growth this quarter .CASA will be on fast clip going forward.
♦Retail asset side may be problem for 2020-21 but not in 2018.
♦49% of T&D order book of India is from PGCIL.
♦Company will extend Civil business services to residential projects, affordable housing and
civil work for defense.
♦6-7% EBITDA M of cable business. Margin is lower due to heavy investment in order to built
capacity. Margin will improve as the revenue start increasing.
♦Mgt. has guided that the Railway business top line of 1500-1600 Cr by next year.
♦Expect strong order inflow from SAARC, Africa and Middle East.
Company KNR Constructions Ltd.
INDUSTRY Construction & Engineering
15th Feb 2018 Q3FY18 EARNING CONFERENCE CALL
Management Participants
Chairman
B V Rama Rao
MD
K Narasimha Reddy
Ex. Director & CFO
K Jalandhar Reddy
Our Analyst in the Call
Sandip Jabuani
Company KPIT Technologies Ltd.
INDUSTRY Software & Services
30th Jan 2018 Q3FY18 EARNING CONFERENCE CALL
Management Participants
MD & CEO
Mr. Kishor Patil
Chairman
Mr. Ravi Pandit
Our Analyst in the Call
Niharika Ojha
♦Capex for 9MFY18 was Rs.177 Cr and expect to do another 30-35 Cr in Q4FY18. For FY19 it
will be Rs.130-140 Cr.
♦Debt as on 31st December 2017 was Rs.228 Cr.
♦Tax rate in will be 10%/15% in FY18/FY19.
♦30% work on Bangladesh project has completed and scope of work will increase from Rs.525
Cr to 800 Cr. KNR share will be 400 Cr.
♦KNRCON stands in L1 of couple of HAM projects in state of Karnataka but will receive only
one project worth of Rs.1150 Cr as per tender rules.
♦Strong NHAI bid pipeline worth of 1.20 lakh Cr, which will bid out in next 4-6
months.Submitted bid for Banglore Mysore road projects and waiting for bid opening. Delay in
opening of bid from NHAI end.
♦Expect to receive 1-2 projects by this month end.
♦Depreciation was higher during the quarter as KNR working in three shifts on Irrigation
projects in order to complete it in stipulated time frame. Depreciation will remain high until an
Irrigation project gets completed.
♦Management guided to do Rs.1800 Cr plus revenue in FY18 and revenue growth for FY19 will
be 15%.
♦It will creates new KPIT Technologies, a global leader in Automotive Engineering and
Mobility Solutions which will evolve from the current Engineering business of KPIT.
♦KPIT announces Q3FY18 Results with revenues at Rs. 9,127.7 Million, a YoY growth of 10%.
Growth in EBITDA was 9.6% QOQ. PAT was at Rs. 616.8 Million, a qoq growth of 3.3% and
YoY decline of 16.2%.
♦Outlook: Remain positive on the growth prospects and profitability improvement, going
forward with healthy pipeline for remainder of the year. Margin for whole year at a range of 13
to14%.
♦In terms of industry verticals, Energy & Utilities registered growth of 5% and Automotive &
Transportation vertical grew by 1% on a QoQ basis. There was a sequential decline of 6% in
manufacturing vertical.
♦KPIT promoters join with Birlasoft in launching an open offer for the minority shareholders of
KPIT.
♦KPIT and Birlasoft, will work closely to first merge Birlasoft into KPIT and later split the
combined entity of KPIT and Birlasoft into two public companies.
Narnolia Securities Ltd Please refer to the Disclaimers at the end of this Report
♦The new 'Birlasoft' will be a USD 500+ million Digital Business IT Services company that will
be created by combining the KPIT ITSS business and the current Birlasoft creating a new leader
in the mid-tier IT services space, which will also be called Birlasoft.
♦Birafost valuation is around 150mn dollar revenue for last 3 year and margin at 15% band, cash
available in balance sheet is around 3000crore.
♦Swap of 22 KPIT share with 9 Birlasoft share.
Company Lakshmi Vilas Bank Ltd.
INDUSTRY Commercial Banks
2nd Feb 2018 Q3FY18 EARNING CONFERENCE CALL
Management Participants
MD & CEO
Parthasarathi Mukherjee
Our Analyst in the Call
Sweta Padhi
Company Larsen & Toubro Infotech Ltd.
INDUSTRY Software & Services
25th Jan 2018 Q3FY18 EARNING CONFERENCE CALL
Management Participants
MD & CEO
Mr. Sanjay Jalona
CFO
Mr. Ashok Sonthalia
HEAD (INVESTOR
RELATIONS)
Mr. Nitin Mohta
Our Analyst in the Call
Niharika Ojha
Narnolia Securities Ltd Please refer to the Disclaimers at the end of this Report
♦17 client added in 3QFY18 in which 4 client where added from fortune 500.
♦Vertical performance for the quarter: BFS grew 7.9% QoQ and sees overall optimistic growth
for the year. Global Banking IT spends is expected to grow in the coming years and several
banks are investing in core banking modernization programmes. Thus acquisition of Syncordis
SA is a very synergistic move by Larsen & Toubro Infotech. Manufacturing grew by 16.6%
QoQ, Management sees positive outlook for FY19. Energy & Utilities saw a steady sequential
growth of 6.6%. Healthy growth expected in FY19.♦Outlook for the year: Revenue expected to grow in mid teens for FY18. Strong pipeline for
FY19 ramp up in H2FY19. Margin to remain in current band.
♦US Tax implementation: May have slightly positive impact but more clarity is needed.
♦ETR expected to in band of 22% to 25%
♦Digital, Cloud, IOT, analytics helping to drive revenue for LTI going forward.
♦The Bank raised capital through QIP issuance at the end of calendar year 2016. Since the
amount was not sufficient to support sustained growth it was decided to raise capital of Rs 786
crore through right issuers in the 1st week of January 18.
♦On daily average basis CASA was at 20.40% and for the corresponding quarter of the previous
year was 18.93% which was in the peak of demonetization period.
♦Total revenue for the quarter amounted to Rs 818 crores against 879 crores in the Q3FY17.
Lending book has been flat for the most part of the 2nd and 3rd quarter.
♦Treasury which has contributed handsomely in the previous quarter also short pressure in
valuation. The combined impact of all these has been lower interest income from advances and
a resulted lower operating income.
♦Slippages during the quarter amounted to Rs 286 crore. The largest amount of slippages have
came from coral sector of about 90 crores and next highest is from the farmer packaging
exposure of about Rs 65 crores. There was another account in the infrastructure road account
which was 26 crore. And rest were relatively small amount.
♦Watchlist has lightened to around 1560 crores which include restructure
accounts,SDR,S4A,5/25 and only SMA-2.Sectoral breakup of watchlist-25% from Iron
& Steel and 15% from the infrastructure sector.
♦As consequence in the drop in income the cost to income ratio during the quarter was
81.23% from 49.7% reported in Q2FY18.Expects it to be 50% going forward.
Outstanding security receipt amounted to Rs 350 crore.
♦The Bank is expected to catch with the business plan by 2020.In the near future it is expected
15-20% growth.
♦Revenue for 3QFY18 at Rs 1883 crore, a growth of 7.6% QoQ and 13.0% YoY. Growth was
led by growth strong performance across verticals.
♦LTI completed the acquisition of Syncordis.
Company
Larsen & Toubro Infotech Ltd.
INDUSTRY Software & Services
25th Jan 2018 Q3FY18 EARNING CONFERENCE CALL
Management Participants
MD & CEO
Mr. Sanjay Jalona
CFO
Mr. Ashok Sonthalia
HEAD (INVESTOR
RELATIONS)
Mr. Nitin Mohta
Our Analyst in the Call
Niharika Ojha
Company LIC Housing Finance Ltd.
INDUSTRY Diversified Financial Services
29th Jan 2018 Q3FY18 EARNING CONFERENCE CALL
Management Participants
MD & CEO
Sunita Sharma
CFO & GM risk
Mr. Surinder MohanACM(MD Secretariat & IR
Manager
Mr. Sudipto Sil
Our Analyst in the Call
Sweta Padhi
♦US Tax implementation: May have slightly positive impact but more clarity is needed.
♦Revenue for 3QFY18 at Rs 1883 crore, a growth of 7.6% QoQ and 13.0% YoY. Growth was
led by growth strong performance across verticals.
♦LTI completed the acquisition of Syncordis.
♦Digital, Cloud, IOT, analytics helping to drive revenue for LTI going forward.
♦17 client added in 3QFY18 in which 4 client where added from fortune 500.
♦Vertical performance for the quarter: BFS grew 7.9% QoQ and sees overall optimistic growth
for the year. Global Banking IT spends is expected to grow in the coming years and several
banks are investing in core banking modernization programmes. Thus acquisition of Syncordis
SA is a very synergistic move by Larsen & Toubro Infotech. Manufacturing grew by 16.6%
QoQ, Management sees positive outlook for FY19. Energy & Utilities saw a steady sequential
growth of 6.6%. Healthy growth expected in FY19.♦Outlook for the year: Revenue expected to grow in mid teens for FY18. Strong pipeline for
FY19 ramp up in H2FY19. Margin to remain in current band.
♦ETR expected to in band of 22% to 25%
♦Incremental Yield for Core Home loan segment is 8.35%, For Non-core portfolio is 10.5% &
for Developer segment is between 12-13%.
♦Rs 20000 Cr of NCDs @ average rate of 8.5% is going mature across FY19.
♦Management says Project loan portfolio composition will remain same going forward.
Narnolia Securities Ltd Please refer to the Disclaimers at the end of this Report
♦NPA for LAP is 0.55% & NPA for Individual segment is 0.53%.
♦Borrowing from Commercial paper is likely to go up due to short term payment obligations.
♦Incremental cost of fund was 7.38% for 3Q FY18.
♦Rs 27000 Cr individual loan got reprised in FY18.
♦Management says 3000-4000 Cr of loan asset is going to be reprised in FY19.
♦Management is targeting to open 18-20 rural offices in FY19.
Company Lupin Ltd.
INDUSTRY Pharmaceuticals
6th Feb 2018 Q3FY18 EARNING CONFERENCE CALL
Management Participants
CEO
Vinita D. Gupta
CFO & President
Mr. Ramesh Swaminathan
Head-M&A, IR
Mr. Alpesh Dalal
Our Analyst in the Call
Ritika Jalan
Company Mahanagar Gas Ltd
INDUSTRY Gas Utilities-Sub Ind
12th Nov 2018 Q3FY18 EARNING CONFERENCE CALL
Management Participants
MD
Mr. Rajeev Kumar Mathur
CFO
Mr. Sunil Ranade
SR. VICE PRESIDENT
Mr. Rajesh Wagle
Our Analyst in the Call
Aditya Gupta
♦Lupin’s management expects resolution of its warning letter within 12-15 months. After
Remediation will be completed around April 2018 Company guided that it will be ready for re-
inspection.
♦The management expects US revenues to grow flat to positive QoQ from Q4FY18. Price
erosion is expected to offset by the new product launches in the coming Financial Year.
Narnolia Securities Ltd Please refer to the Disclaimers at the end of this Report
♦Net Debt-Equity ratio for the company stands at 0.40:1.As per the management it will maintain
this Ratio in the coming Fiscal Years.
♦Operating working capital increased to Rs. 57,61Cr as on December 31st, 2017 compared Rs.
57,13Cr as on September 30th, 2017. The working capital number of days stands at 134 days as
on December 31st, 2017 compared to 128 days as on September 30th, 2017.
♦The Company is expected to file 10+ ANDAs in Q4FY18. The company has enlisted several
molecules that are expected to be launched in FY19 viz. Oseltamivir phosphate (anti-viral),
Lanthanum carbonate (nephrology), Hydrocodone APAP (pain), potassium chloride (CVS),
Albuterol inhalation (respiratory) .
♦Lialda (GI) and Prevacid (GI) are likely to be launched by late FY19 post the resolution of
pending complete response letter (CRL).
♦Margins have improved due to higher realization and favorable exchange rate. Management has
refrains from giving any future guidance on margins.
♦Management has guided for 1.5 lakh new connections every year.
♦At present 1 CNG station in both Kharghar and Raigad district and total 6 stations(Khargar -3,
Raigad-3) are under construction.
♦Volume guidance for Q4FY18 is 6% YoY.
♦Capex guidance for FY19 is Rs.250-300Cr.
♦Government constant focus on clean energy and set up CGD(City gas distribution) network in
100 new cities, gives CGD companies enough opportunities to expand its network in
neighboring geographical areas.
Company Mahindra & Mahindra Ltd.
INDUSTRY Automobiles
9th Feb 2018 Q3FY18 EARNING CONFERENCE CALL
Management Participants
MD
Mr. Dr Pawan Goenka
CFO
Mr. V.S.Parthsarathy
Our Analyst in the Call
Naveen Kumar Dubey
CompanyMahindra & Mahindra
Financial Services Ltd.
INDUSTRY Diversified Financial Services
24th Jan 2018 Q3FY18 EARNING CONFERENCE CALL
Management Participants
MD
Ramesh Iyer
ED & CFO
V Ravi
Our Analyst in the Call
Sweta Padhi
♦Debt to equity ratio is 0.1
♦Utilization on tractor side is around 95% and the capacity increase would happen in 1QFY19.
♦Capex guidance of Rs.7500 for next 3 years; Rs.700-800 crores investment towards electric
vehicles capacity for 5000 units per month.
♦Tax rate to be in the range of 32-33%.
♦The company is working on BS-VI and will be ready by 31st March 2020.
♦Industry growth guidance for FY19: PV- 10%, CV-10%, 3Ws-10% and Tractors 8% CAGR
going ahead.
♦Some pressure on the margins may come due to rising commodity prices.
♦Areas of concern: a) below 90% rainfall; b) Interest rate hike more than 50 bps; c) Oil prices
beyond USD 70; d) increasing commodity prices.
♦4 New launches in FY19 on UV segment.
♦11 states will be floating tenders for 9 meter electric buses.
♦Commercial vehicles will be 7-8% of total book.
♦AUM will be more than 13% in 4QFY18.
♦Up, Bihar, Eastern regions are doing well, Maharastra, Rajasthan, Gujurat, MP, is doing
average while AP,Tamil Nadu, Karnataka are not doing well.
♦Inventory is high with retailers, there are presently many schemes running therefore revenue is
being affected.
♦Maruti with nexa entered into market, opened 250 dealership .
♦Pre-owned vehicles sales has been hit, prices has increased due to GST.
♦In tractor, now it has also started finance, other tractors also apart from Mahindra and Swaraj.
♦ M&MFIN will try to get GNPA number to 10%.
Narnolia Securities Ltd Please refer to the Disclaimers at the end of this Report
Company Manpasand Beverages Ltd.
INDUSTRY Food Products
31st Jan 2018 Q3FY18 EARNING CONFERENCE CALL
Management Participants
Chairman & MD
Dhirendra Singh
CFO and VP finance
Paresh Thakkar
Our Analyst in the Call
Rajeev Anand
Company Marico Ltd
INDUSTRY Household & Personal
products12th Feb 2018 Q3FY18 EARNING CONFERENCE CALL
Management Participants
MD & CEO
Mr. Saugata Gupta
CFO
Mr.Vivek Karve
Our Analyst in the Call
Rajeev Anand
♦Management expects 8-10% volume growth from Indian business and over 12% constant
currency (CC) growth from International business over coming few quarters.
♦Expects margin pressure in H1FY19 which will be negated by cost efficiency programme in the
sales and marketing spends in coming quarters.
♦Lower volume growth in Value Added Hair Oil (VAHO) is an aberration; expects double digit
growth over next few quarters.
♦Market condition is conducive for higher growth next year especially rural if government
scheme executed well.
♦CSD continues to remain under stress. Expect it to normalize in Q1FY19.
♦Green shoots visible in rural demand.
♦Company able to mitigate most of the cost inflation by its cost efficiency programme in
Q3FY18.
♦Witnessed Market share gain in 90% of the portfolio.
♦Business has stabilized in terms of wholesale and rural.
♦Management sees gradual shift in business from unorganized to organized sector in coconut oil.
♦Parle tie up: Parle will give access to its distribution network to Manpasand. The company will
appoint own distributors with the help of Parle. Margin profile will be same as in company level.
There is room of margin expansion going forwards.
♦Present cash balance is Rs 200 cr in the books.Capex for FY19 to remain at Rs 200cr.
♦Volume growth for this quarter remained 35% while value growth is 5%. Expects sales growth
in the range of 30-35% going forwards.
♦Tax rate: in the range of 14-15% in coming 2-3 years.
Plant ramp up update:
♦Baroda facility: completed
♦Varanasi Plant: will complete in April.
♦Sri city Plant: will be complete in July.
♦4th plant will come up in Bhubaneshwar , for which land acquisition underway.
♦Decline of gross margin in this quarter was mainly attributable to product mix. Gross Margin
decline is temporary. Margin will improve in full year basis.
♦Other expense was higher in the quarter due to higher A&P expense by Rs 3-4 cr.Expects
margin to be at same level going forward.
♦Currently, management envisages no freight rate hike in near term as company has 6 months
contract. There is no plan of equity dilution in near term.
♦Management sees reduction in receivable days in FY19. Recently company has added 250
distributors. Plans to increase it to 1000 by March 19.
♦Lower sugar price will help in improving margin. Company manufactures all products by their
own. No outsourcing.
Narnolia Securities Ltd Please refer to the Disclaimers at the end of this Report
Company Maruti Suzuki India Ltd
INDUSTRY Automobiles
25th Jan 2018 Q3FY18 EARNING CONFERENCE CALL
Management Participants
CFO
Mr. Ajay Seth
Executive Director –
Marketing & Sales
Mr. R.S. Kalsi
Our Analyst in the Call
Naveen Kumar Dubey
Company Mindtree Limited.
INDUSTRY Software & Services
17th Jan 2018 Q3FY18 EARNING CONFERENCE CALL
Management Participants
Chairman
Subroto Bagchi
CEO & MD
Krishnakumar Natarajan
CFO
Jagannathan Chakravarthi
President - COO
Parthasarathy NS
Our Analyst in the Call
Niharika Ojha
♦Total production from Gujarat Plant is 95000 units and management is targeting 150000 units
in FY18.
♦Volume growth in FY19 would be in-line with industry growth.
♦Commodity cost will be higher in Q4FY18.
♦If interest rate remains constant then the other income will remain at same level (Rs.343 crores
in Q3FY18).
Narnolia Securities Ltd Please refer to the Disclaimers at the end of this Report
♦Capex guidance of Rs.4000 crores for FY18.
♦Royalty rate 5.3% of net sales
♦Discounts for the quarter was Rs.17900
♦Gujarat plant has started its second shift and running at 20000 units per month.
♦The plant will run on its full capacity in FY19 which is 250000 units per annum.
♦Localisation at Gujarat plant is 15% and in next 3-4 years it will reach to 65%.
♦Government employee contribution is around 20%.
♦Revenue for 3QFY18 is at $214.3 million, a growth of 3.9% QOQ and 11.5% YOY Net profit
at $22 million a growth of 13.8% QOQ and 44.1% YOY.♦Realization for 3QFY18 was at 5.7%.Realisation increased because project is moving from
transitional phase to steady phase.♦Total client in 3QFY18 is 344, anew addition of 28 new client.
♦Margin increased on back of wage increase, implementation of operational efficiency, buyback
cost.♦Strong cash conversion was seen in 3QFY18.
♦Digital will continue growing, pipeline is strong.
♦Revenue growth in band of 3% to 4% range for 4QFY18.
♦ETR for FY19 in band of 24% to 26%.
♦Sustainability in growth momentum going on back of strong pipelines and deals wins.
♦5million dollar + 7 deal wins was seen in 3QFY18.
♦US tax implementation will have no major impact on Mindtree.
Outlook for Q4 FY19
♦Price will be stable in Q4FY18.
♦Maintain similar growth like Q2 & Q3 in client.
CompanyMotherson Sumi Systems Ltd.
INDUSTRY Auto Components
14th Feb 2018 Q3FY18 EARNING CONFERENCE CALL
Management Participants
Chairman
Mr. . Vivek Chand Sehgal
CFO
Mr.G.N.Gauba
Our Analyst in the Call
Naveen Kumar Dubey
Company Muthoot Capital Services Ltd.
INDUSTRY Diversified Financial Services
15th Jan 2018 Q3FY18 EARNING CONFERENCE CALL
Management Participants
Chairman
Mr. Thomas John Muthoot
MD
Mr. Thomas George Muthoot
CEO
Mr. R Manomohanan
CFO
Mr. Vinod Panicker
Our Analyst in the Call
Sweta Padhi
♦Yield for FY19 will be around 14-15%.
♦On Book NIM is 14%.
Narnolia Securities Ltd Please refer to the Disclaimers at the end of this Report
♦Apart from Muthoot fin corp. distribution channels and dealership distribution channels, 2-3
more distribution channel are going to be added in 4QFY18, this channels would significantly
increase its digital reach.
♦Maintained its earlier guidance of USD18 bn revenue and RoCE of 40%.
♦Focusing on achieving 3Cx15 strategy (Despite Daimler's share increasing from 11% to 14%).
In 2020, will start looking at 3Cx10 strategy.
♦The management expects new orders to come in from the beginning of the next fiscal.
♦The Hungary plant will start production from 1QFY19.
♦Capex guidance for FY18 would be Rs. 2,000 crores and major portion would be in new plants.
Maintenance capex will be 30% of total capex. The management has further guided that this will
taper down going ahead as per the current order book and capacities.
♦European performance was negatively impacted by suppliers’ material availability which caused
extraordinary freight and labor expenses but these issues have been resolved upto an extent.
♦North America heavy duty truck market grew by 40%YoY in 3QFY18.
♦Growth rate for FY 19 will be around 40-50%.
♦ NPA for FY19 should be less than 5%.
♦Increase in loan per quarter from 50000-60000 to 1.2 lakhs.
♦9 new plants will start production from next fiscal.
♦The management has stated that most of the contracts of wiring harness segment with OEMs are
lifelong contracts.
♦Due to some political issues China has boycotted Korean brand cars.
♦PKC group divested some light vehicle business and associated assets in North America in Oct-
Dec 2016 quarter which has resulted in lower margins on comparable basis.
Company Orient Bank of Commerce.
INDUSTRY Commercial Banks
30th Jan 2018 Q3FY18 EARNING CONFERENCE CALL
Management Participants
MD & CEO
Sh. Mukesh Kumar Jain
Executive Director
Sh. Himanshu Joshi
Our Analyst in the Call
Anu Gupta
Company PARAG MILK FOODS LIMITED
INDUSTRY Food Products
9th Feb 2018 Q3FY18 EARNING CONFERENCE CALL
Management Participants
Chairman
Mr. Devendra Shah
CFO
Vimal Agarawal
Our Analyst in the CallOur Analyst in the Call
Rajeev Anand
♦The govt has announced capital infusion of Rs 3571 crore.
♦Total business of the bank has increased by 5.50% volume wise to 3.78 lakh crore.
♦Credit risk weight assets decline by 3.04% due to capital optimal growth.
♦Provision coverage ratio has been increased from 49.44% to 62.09% YoY.
♦Fresh slippages during the quarter 3304 crores.
♦The Bank has made entire applicable provision in both NCLT list I and list II.At present there is
aggregate provisioning coverage of more than 60% , in list 1-9 A/c and list II-16 A/c.
♦There is a net loss of Rs 1985.42 crores during Q3FY17-18 due to higher provisioning ,decrease
in agri profits, reversal of interest on agriculture debt waiver.
♦Recap bond amount for FY17-18 amounts to Rs 3571 crore and is likely to come in two
trenches.
Narnolia Securities Ltd Please refer to the Disclaimers at the end of this Report
♦Watchlist is around 4000 crore for next two quarters.
♦Decline in employee cost is due to change in depreciation policy which was adopted in dec 16.
♦Agri slippages amount to Rs 1267 crore due to loan waiver.
♦Interest reversal in agri amounts to Rs 251 crore and Overall interest reversal during the quarter
is Rs 400 crore.
♦O/S SMA-2 and SMA-1 amounts to 2700 crore and 9000 crore respectively as on 31st dec 17.
♦Revenue growth guidance: 13% - 15% CAGR for Next 3 Years.
♦EBITDA Margin: 10% - 11% for Next 3 Years.
♦Expect strong demand due to urban and rural demand recovery going ahead.
♦The company has strong product pipeline for the future.
♦Interest cost was higher on account of conversion of NCD worth of Rs 18 Cr to unsecured loans.
♦Gross Margin expansion was mainly led by increase of value added products in total revenue
and cost efficiency measure.
♦The company is adding 9000 retail outlets in its distribution reach every month.
♦Management expects Whey protein portfolio to reach 7% of the total sales in the medium term.
♦Working capital to remain in similar level as in the previous year.
♦A&P expenses will be in the range of previous year.
Company PC Jeweller Ltd.
INDUSTRYTextiles, Apparel & Luxury
Goods
19th Jan 2018 Q3FY18 EARNING CONFERENCE CALL
Management Participants
MD
Mr. Balram Garg
CFO
Mr. Sanjeev Bhatia
Sr. Vice President (Strategy)
Mr. Nitin Jain
Our Analyst in the Call
Pramila Lakra
Company Persistent Systems Ltd.
INDUSTRY Software & Services
29th Jan 2018 Q3FY18 EARNING CONFERENCE CALL
Management Participants
MD & CEO
Dr. Anand Deshpande
President - Digital
Mr. Sudhir Kulkarni
CFO
Mr. Sunil Sapre
Our analyst in the call
Niharika Ojha
♦Ebitda magin was impacted by 85 bps but eas offset by higher ultisation.
♦Parx acquisition will help to expand in Europe.Parx will see improvement in next quarter and
FY 19.
♦1% QoQ dip in export margin due to currency gain/loss.
♦PAT for Q3FY18 is Rs 162.7 crores (52% growth over Q3FY17), growth is due to SSG and
New Store. SSG in 3QFY18 was 25%.
♦Company is focusing on digital catalogue on all jewellery expecting to increase in Customer
retention ratio.
♦Till date 9 stores has opened in FY18, target to reach total of 100 stores by end of March’18. (
84 stores till date). In 3QFY18 no new stores has opened.
♦GST on diamonds is reduced to 0.25%(earlier 3%). Gross margin in Diamond Jwellery is 30%.
Interest rate on Gold is 3% per annum.
♦ In 4QFY18 more than 15 stores will be opened. One store of AZBA will be opened in next
week in Taj, Mumbai (CAPEX for this store will be 25 cr).
Narnolia Securities Ltd Please refer to the Disclaimers at the end of this Report
♦Currently capacity utilization : 70% in house & 30% outsourced.
♦In Jaipur factory, complete production will start in next one and half year.
♦In 3QFY18: Domestic Gross Margin -17%, Export Gross Margin- 7.7%.
♦Business will be stable in 4QFY18. 10 franchise & 6 on store stores will be opened in
4QFY18. EBITDA margin will be stable in 4QFY18.
♦CAPEX for the factory will be 150 cr in next 3 years (50 cr per annum) and around 100 cr in
AZBA and own stores.
♦In FY19 & FY20 advertising expenses will be 2% of domestic sales(Earlier 1.2%).
♦Revenue was USD 122.53%, 3.8% QoQ and 11.4% YoY. Revenue for 9MFY18 is at 353.6 mn
dollar, 10.5% QoQ.
♦Interim dividend for the quarter is at 7 per share.
♦The management has appointed Sunil Sapre, CFO as Additional Director (Executive Director
and CFO) with immediate effect for a period of 3 years.
♦The management has indicated that Persistent will go for M&As which can help it expand
itself to unexplored geographies, verticals and technology (analytics).
♦Geography performance: India and the RoW both of which had had a muted 2Q showed an
uptick to grow 7.5% qoq and 3.8% QoQ respectively.North America was robust and grew above
company average at 5.0% QoQ.Europe showed a decline of 10.9% QoQ.
♦Investment in digital model will be fruitful in long term.
♦Digital grew by 26%, 3.9% organic and 9% QOQ with acquisition.
♦Service revenue grew at 2.2% and enterprise grew at 6.8% yoy.
Company Petronet LNG Ltd.
INDUSTRY Oil, Gas & Consumable Fuels
9th Feb 2018 Q3FY18 EARNING CONFERENCE CALL
Management Participants
Chairman
Mr. K D Tripathi
Director (Finance)
Mr. R K Garg
Our Analyst in the Call
Aditya Gupta
Company PNB Housing Finance Ltd.
INDUSTRY Diversified Financial Services
24th Jan 2018 Q3FY18 EARNING CONFERENCE CALL
Management Participants
MD
Mr. Sanjaya Gupta
CFO
Mr. Jayesh Jain
Executive Director
Mr. Shaji Varghese
Mr. Ajay Gupta
Our Analyst in the Call
Sweta Padhi
♦Mundra terminal is expected to start by the end of FY18.
♦Volume at Dahej terminal is higher on account of new capacities.
♦Volume at Kochi terminal has remained low due to lower off take one customer in Nov 2017,
which is expected to be resumed in the month of April 2018. Kochi refinery does not have too
many consumers.
♦BPCL Kochi refinery has now stabilized and current trend will continue in accordance with the
BPCL off taking volumes.
♦Management does not see any impact of oil price surge on the volumes going ahead.
♦5% hike in realization is taken in Jan 2018.
Narnolia Securities Ltd Please refer to the Disclaimers at the end of this Report
♦Dahej capacity expansion to 17.5MMT is on track and is expected to come on stream in the
month of June-July 2018.
♦Company is constructing one additional storage tank at Dahej terminal at the cost of Rs.500-
600 Cr. over next 3 years. This tank will not add any new capacity but will facilitate capacities at
Dahej.
♦Pipeline work is on track in different spreads and work on 140 km is done out of 350 Kms and
is expected to come on stream in Q4 FY19.
♦12-15 bps relief of interest rate is to come in 4Q, because of conversion of short term
borrowings into long term borrowings.
♦1300 Cr account have requested for subsidy under PMAY.
♦Tamil Nadu, West Bengal and Rajasthan are proactive in RERA movement.
♦Management believes NIM will be in the range of 395-400 bps.
♦ Difference in Yield between loan above 30 lakhs & loan below 30 lakhs will be around 15-20
bps.
♦The share of NPA, individual housing segment is at 0.49%, Non housing segment is at 0.34%,
individual LAP is 0.59%.
♦Non-salaried customer segment is about 40% of the portfolio.
♦Management believes deposits will grow strong in next 2 quarters.
♦Incremental spread will be in the range of 195-210 bps.
♦Portfolio Mix-Individual home loan is to be around 70%-72%,(including construction
finance),loan against property and non housing portfolio will be around 18-20%, and Lease
Rental discounting and CTL will be rest.
♦Management says Deposits is at 25%, NCD is at 45%, CP to remain 15-18% while Bank
borrowings will go up, ECB will come down, NHB is going to remain same.
Company PNC Infratech Ltd
INDUSTRY Construction & Engineering
15th Feb 2018 Q3FY18 EARNING CONFERENCE CALL
Management Participants
Chairman & MD
Mr.Pradeep Kumar Jain
CFO
Mr. D K Agarwal
AVP
Mr. D.K. Maheshwari
Our Analyst in the Call
Sandip Jabuani
Company PVR Limited
INDUSTRY Media
31st Jan 2018 Q3FY18 EARNING CONFERENCE CALL
Management Participants
CEO
Mr. Gautam Dutta
Group CFO
Nitin Sood
Our Analyst in the Call
Niharika Ojha
Narnolia Securities Ltd Please refer to the Disclaimers at the end of this Report
♦PNCINFRA received bonus of Rs.59 Cr for early completion of Agra-Firozabad projects in
January and will booked in revenue in Q4FY18.
♦Land availability on Chakeri Allahabad is around 60% and will receive appointment date in
time.
♦Till date received mobilasation advance of Rs.88 Cr from Dusa Lalsot and expect to receive
from Chitradurg HAM project in Q4FY18.
♦Working capital and debtors days may increase in Q4FY18 but normalize in FY19.
♦Employee cost during the quarter was higher on account of salary and wage hike have given
along with commission to employee for early completing Agra Firozabad projects.
♦Overall revenue grew Rs 560 up 3% in 3QFY18. Big challenge was faced due to movement of
padmavat saw a 3 week of content loss.
♦Healthy growth was in ATP was 6% QoQ , F& B GREW 12% , Advertisement grew 11%.
♦3QFY18 saw 36 new screen and 2 property. 31 more screen to be ready to work in next quarter.
♦60 to 70 + screen to be added FY19.
♦Outlook for advertisement: 20% growth in advertisement for FY18, so management expect to
be on Track to get 290 to 300 Crore revenue from advertisement.
♦Consolidated debt of PVR is 820 crore.
♦2.70 to 2.75 Crore capex in FY19. Capex expected to be lower by 200 crore in next 24 to 36
months.
♦2018 looks more promising with regard of content pipeline.
♦Aspiration of 20% operating margin.
♦Rs.43 Cr was received from Narela Industrial projects.
♦Appointment date of Jhansi package-l&ll in March and February respectively.
♦Appointment date on Bhojpur Buxar will be by March end.
♦Cut down revenue growth guidance for FY18 to 10% from 15-20% and increased for FY19
from 35% to 40-50%.
♦Maintain EBITDA margin at level of 13.5%.
♦10% growths in media will remain same for FY19.
♦Post renovation in oberoi led to 15% up in ATP and 20% up in F&B.
♦Other expenses declined due to expenses claimed under input credit mechanism in GST.
♦Stake in US is a strategic investment by management.
♦20% of screen to be premium in 2years.
Company RBL Bank Ltd
INDUSTRY Commercial Banks
23rd Jan 2018 Q3FY18 EARNING CONFERENCE CALL
Management Participants
MD & CEO
Vishwavir Ahuja
Our Analyst in the Call
Anu Gupta
Company Repco Home Finance Ltd.
INDUSTRY Diversified Financial Services
15th Feb 2018 Q3FY18 EARNING CONFERENCE CALL
Management Participants
MD
R Varadarajan
Executive Director
Mr.V Raghu
CFO
T Karunakaran
Chief General Manager, Credit
K Ashok
Our Analyst in the Call
Sweta Padhi
♦Incremental Borrowings is 7.81%
♦Incremental Ticket Size, LAP – 19 LAKHS, Home Loans 15.6, Average ticket size -16 lakhs.
♦For FY20, 20% growth is expected.
♦GNPA to lower around 2% in FY19.
♦1800 Cr disbursement guidance for H2FY18.
♦60% book is in Tamil Nadu, it is facing sand mining issue.
♦Company is diversifying to Maharashtra & Gujarat.
♦Spread to remain 12-13 for next 3 quarter.
♦Out of Total Disbursement of 657 Cr, 313 are salaried and 344 are Non-salaried.
Please refer to the Disclaimers at the end of this ReportNarnolia Securities Ltd
♦Growth guidance for FY18 to achieve 10000 Cr AUM.
♦Mgt is seeing growth in the Commercial Banking business with strong customer acquisition
driving both NII and fee income growth.
♦Macro slowdown in Indian economy seems to have bottomed out in the last quarter.
♦Some early signs of pickup in Business expansion, Credit demand and industry production are
visible now.
♦GDP is expected to return at above 7% growth in the next fiscal.
♦Demand for credit is expected to go up further as the economy picks up.
♦Wholesale & Non-wholesale segment continues to see strong traction of 35% on average YoY
basis. Under wholesale corporate & Institution business NPA has increased slightly due to
addition of 1 A/c.
♦Contribution of credit cards grew 23% of Retail asset portfolio. The Card business continues to
see strong growth. Addition of 1.7 lakh incremental cards in the Q2FY18.Taking card portfolio
to over 6.2 lakh cards.
♦Cost of saving has reduced to 6.4%.CASA is expected to continue improvement. NIM to be
maintained at 3.9% in Q4FY18.
♦DBNFI business which include Micro, SME and financial business the GNPA will remain
within 5.5% for the next 2 quarter. And till next fiscal it will be around 1%.Disbursement of
2960 crore in this segment.
♦Agri portfolio is under 2000 Cr .NPA in this sector for Q3FY18 is around 2.89%. In order to
control NPA Mgt is cautious to grow this segment.
♦One account in the CIB segment which was under SDR has classified as NPA this quarter. This
represents 0.14% of total advances. Mgt is confident that this account will move out of NPA in
Q4FY18.
♦Restructured asset are at 0.18% as compared to 4.1%. No S4A and 5/25 in this quarter. There
was also no sale to ARC.
Company Sadbhav Engineering Ltd.
INDUSTRY Construction & Engineering
14th Feb 2018 Q3FY18 EARNING CONFERENCE CALL
Management Participants
Ex. Director & CFO
Nitin Patel
Our Analyst in the Call
Sandip Jabuani
Company State Bank of India
INDUSTRY Commercial Banks
9th Feb 2018 Q3FY18 EARNING CONFERENCE CALL
Management Participants
Chairman
Mr. Rajnish Kumar
MD and CFO
Ms. Anshula Kant.
MD, Corporate Global
Banking and Stressed
Asset Resolution Group
Mr. B. Sriram
Our Analyst in the Call
Deepak Kumar
♦Out of total slippages of Rs 26,700 Cr, corporate slippages were Rs 21800 Cr. Out of this Rs
19,394 crores has slipped from the stressed pool. So, about Rs 10,000 crores has come from
standard restructured in this, and another Rs 10,000 crores has come from S4A and SDR.
♦Hardening of yields impacted the profit by way of mark-to-market by Rs 3,400 crore in
provision line and in income front about Rs2,000 Cr.
♦Planning to raise Rs 20000 Cr of capital from investors.
♦Total standard stressed assets pool now stands at Rs 50,000 Cr.
♦Interest reversal in nine month period has been Rs 6,370 crore. And quarter three, it has been to
the extent of INR 1,910 crore.
♦Targeting ROA of 0.6% in FY19.
Narnolia Securities Ltd Please refer to the Disclaimers at the end of this Report
♦Tax rate in FY19 will be 10-12% and full tax rate in FY20.
♦Debt has reduced by Rs.300 Cr in 9MFY18 and it will further reduce by Rs.150-200 Cr in
FY18. Revenue will be Rs.4300 Cr in FY19 with EBITDA Margin of 11.5%.
♦Lower revenue guidance by Rs.100 Cr due to delay in appointment date in Rampur kathgoda
packagell and Waranga to Mahagaon projects. Maintain order inflow of Rs.7000 Cr. ♦Order
Inflow in FY19 will be Rs.8000 Cr
♦Applied CoD for Yamuna Nagar Package-ll and Eastern Pherphiral Package-ll.
♦56 EPC projects worth of Rs. 35000 Cr and 89 HAM projects worth Rs.90000 Cr are in bid
pipeline and will tender before 31st March 2018.MSRCD is preparing tenders worth Rs.21000-
22000 Cr.
♦Expect Rs.150 Cr cash Inflow by February end.
♦Capex will be lower going forward as company will purchase only critical machinery and
outsource all the non critical machinery. Despite the outsourcing management will maintain
EBITDA at 11.5%.
♦Outstanding loan given to SIPL is Rs.445 Cr.
♦Competitive Intensity is very high in EPC and HAM projects but expect to receive Rs.8000 Cr
in FY19 on the conservative approach.
♦Capex Requirement in FY18 is 60 Cr and same will be for FY19.
♦Won one arbitration award of Rs.104 Cr, out of this Rs.72 Cr will come to Sadbhav Eng.
Currently, 3 another claim of Rs.600 Cr are under process and expect to receive in FY19.
♦SADBHAV try to maintain leverage around 0.5x going ahead.
♦There was divergence of Rs 23000 Cr for FY17. Out of these Rs 2800 Cr was recognized as
NPA in 1Q and rest all was recognized in Q3. Large chunk of slippages are coming from power
sector and going forward in next 2 quarters also power sector will be major contributor.
♦Loan book growth guidance of 10% in FY19.
CompanyShriram Transport Finance Co.
Ltd.
INDUSTRY Diversified Financial Services
29th Jan 2018 Q3FY18 EARNING CONFERENCE CALL
Management Participants
MD & CEO
Mr. Umesh Revankar
CFO & Ex. Director
Mr. Parag Sharma
Our Analyst in the Call
Deepak Kumar
Company Skipper Limited.
INDUSTRY Metals/Mining/Minerals
6th Feb 2018 Q3FY18 EARNING CONFERENCE CALL
Management Participants
CFO
Mr.Sanjay AgarwalDirector
Mr.Sharan Bansal
Director
Mr.Devesh Bansal
IR
Mr.Aditya Dujari
Our Analyst in the Call
Sagar Sharma
Narnolia Securities Ltd Please refer to the Disclaimers at the end of this Report
♦Sagar Mala and Bharat Mala projects of Rs 7-8 Lakh Crore will create significant demand
over 4-5 years going forward.
♦Company is selling its majority of stake in Shriram Automall India Ltd to CarTtrade India for
Rs 156 Cr. Post tax gain on this deal will be Rs 120 Cr. Management expects this deal to be
completed during 4QFY18.
♦Will transit to 90 dpd NPA recognition in 4Q FY18 which will have impact of 100-120 bps in
GNPA.
♦Credit cost for FY19 will be at 250-260 bps.
♦Management has revised its guidance for PVC business growth from 20% to 15% for FY18
and expects aggressive growth in FY19.
♦EBITDA Margins are expected to be range bound between 13-14% going forward.
♦Capacity addition of about 15% in FY18 from current 2.3 lakh ton.
♦Export orders about 15% of total order book.
♦Company got clearance certificate from Canadian Welding Bureau, which will lead to entry
into high potential North American power transmission market.
♦Company developing Railway and solar structures to include in its product portfolio.
♦Company continuously working to get orders from Railway electrification projects with
strategic alliance with local player to build EPC capability in this sector.
♦PVC business faced challenges because of GST implication but management expects to get
back to previous target of 35-40% growth in FY19.
♦AUM growth was higher because of higher rural demand from agri output. Infra activity has
also seen good activity after monsoon. E-commerce industry has also seen good demand in
LCV segment.
♦CRISIL revised rating for long term borrowings from A+ to AA- and short term borrowings
reaffirmed at A1+.
♦Secured orders of Rs.525 crore for engineering products from Power grid corporation,
Transmission corporation of Telangana (Rs.150 crore) , Tamil Nadu(Rs.9 crore) , Reliance
jio(Rs.86 crore).
♦Order book of Rs.2530 crore at end of December 2017.
♦Management expect the good growth going forward specially in LCV segment due to lower
base and HCV segment will be dependent on movement in infrastructure activity. Management
also thinks that steel and cement industry will also witness good transportation movement going
ahead.
♦New vehicle demand has been seen in higher 31 tonnage vehicle which is mainly led strict
control in overloading.
Company SONATA SOFTWARE LTD.
INDUSTRY IT SOFTWARE AND SERVICES
8th Feb 2018 Q3FY18 EARNING CONFERENCE CALL
Management Participants
Chairman & MD
Mr. Srikar Reddy
HEAD (FINANCE &
ACCOUNTS
Mr. R. Sathyanarayana
CFO
Mr. Prasanna Oke
Our analyst
Niharika Ojha
Narnolia Securities Ltd Please refer to the Disclaimers at the end of this Report
♦The management continue to add senior additions to the management team, Vikas joined last
quarter, after that the company had not appoited any same seniority level. Continue to
strengthen management team. The management strengthened in the last quarter also by not
asking but another three or four people have come on board in the last quarter.
♦Revenues in rupee terms Rs. 241 crores, sequential growth of 3% and year-on-year growth of
17%, the gap between the INR growth and dollar growth on account of the dollar depreciating or
rupee appreciating.
♦Added four new customers during the quarter, two from the US, one from Europe and one from
Asia to augment roughly 12-13 customers we added during the first half of the year.
♦Margin improvement has been both on better utilization and better realization.
♦The company continue to show growth in IBIS, they probably grew by about 2% to 3%,
however the growth was not as high because this was largely US driven. And so they were
impacted by the furloughs and traditional weakness which happens in Q3 in the US. However,
having said that, IBIS continues to be growing and EBITDA roughly in the range of about 14% -
15%.
♦FIRST IP on the Microsoft dynamic platform which is Brick & Click and ASCS, Advanced
Distribution Solutions apart from IBIS. The second is the mobility platform Halosys, and third is
Rezopia, the travel platform. So we have three other called Kartopia on ecommerce, RAPID
which is our DevOps platform, there we have started to see traction.
Company Subros Limited.
INDUSTRY Auto Components
31st Jan 2018 Q3FY18 EARNING CONFERENCE CALL
Management Participants
MD
Shradha SuriVP Corporate Planning &
Marketing
Pramod Kumar Duggal
Senior VP Finance
Manoj Sethi
Our Analyst in the Call
Naveen Kumar Dubey
CompanySun Pharmaceuticals
Industries Ltd.
INDUSTRY Pharmaceuticals
14th Feb 2018 Q3FY18 EARNING CONFERENCE CALL
Management Participants
MD
Mr. Dilip Shanghvi
CEO
Mr. Abhay Gandhi
IR & Corp Comm
Mr. Nimish Desai
Our Analyst
Ritika Jalan
♦Debt repayment of Rs.22-25 crores in FY18 and Rs.60 crores in FY19.
♦Capex in the range of Rs.60-65 crores.
♦Tax rate to be 30%.
♦Utilization level is 80-85%.
♦40% market share in Passenger Car segment.
♦Passenger Car and Non Passenger Car mix is 90:10.
♦ECM revenues around Rs.200 crores in FY18 and Rs.240-250 crores in FY19.
♦Railways business revenue is Rs.17 crore in FY18 and Rs.26 crores in FY19.
♦Currently import content is 40% of sales; management targets to bring it to 20-25% in next 2-3
years time.
Narnolia Securities Ltd Please refer to the Disclaimers at the end of this Report
♦Management has guided for Q4FY18 revenue to remain in the same range as Q3.It expects
revenue guidance of high single digit in FY18 to be missed marginally.
♦Tildrakuzumab PDUFA date is in end-March 2018.
♦For 2HYFY18, management continue to expect EBITDA margin in the 20% to 22% range for
the first half of this year.
♦R&D investments are likely to be slightly lower than original guidance of 9% to 10%.This
R&D expenditure includes investments on account of funding the clinical development of the
global specialty pipeline.
♦Pricing environment in the US market to sustain.
♦Expect BLA approval for Tildrakizumab in FY19E, PDUFA date is in Mar-18.
Company Suven Life Sciences Limited.
INDUSTRY Pharmaceuticals
31st Jan 2018 Q3FY18 EARNING CONFERENCE CALL
Management Participants
Chairman & CEO
Mr.Venkat Jasti
VP Corporate Affairs
Venkatraman Sunder
Our Analyst in the Call
Ritika Jalan
Company Tata consultancy Services Ltd
INDUSTRY Software & Services
11th Jan 2018 Q3FY18 EARNING CONFERENCE CALL
Management Participants
CEO & MD
Mr.N Chandrasekaran
CFO
Mr.Rajesh Gopinathan
Our analyst in the call
Niharika Ojha
♦Management expect topline growth would be around 11%-14% on back of strong growth in
CRAMS business(Rs 600Cr-650Cr) and the bottom line should be up by 10%-15% in FY18.
♦Suven has executed 800+ NCE-based CRAMS projects and is working on 116 projects (75 in
Phase I, 34 in Phase II and three in Phase III) by end of 3QFY18.
♦SUVN-502 is in phase 2A clinical trials in the US. The company has enrolled 370 patients (of
537). Management expects clinical trials to be completed by mid-CY18 and the results to come
by end-CY18.
♦Management has given guidance to file about 10 ANDAs by 2020.
♦Management has guided maintenance capex of Rs100Cr in FY18 & FY19.The Company has
capex plans of Rs120Cr over two years for additional block.
Narnolia Securities Ltd Please refer to the Disclaimers at the end of this Report
♦Consolidated R&D expenses for FY18 & FY20 after taking SUVN-502 will be around $19-
$20 million.
♦SUVN-911 will be entering Phase 1 clinical trial around May 2018.SUVN-G3031 Phase 2
clinical trial to start somewhere in this calendar year. SUVN-D4010 will be ready for Phase2 BY
2019.
♦The management announced a dividend per share of Rs 7 in 2QFY18.
♦A strong performance was seen in the December quarter, marked by the signing of industry-
defining deals, robust client metrics and broad-based demand across industry verticals.
♦Client addition: Strong client additions was seen across all revenue bands in 3QFY18. During
the quarter, 3 clients were added in $50M+ band, 7 in $20M+, 9 in $10M+ and 15 in the $5M+
band. In total, strong addition was seen in each of the $50M+, $20M+, $10M+ and the $5M+
bands.♦Deal wins: Continuing investments by clients in Digital initiatives resulted in over 150+ wins
and strong growth across all service practices.
♦Verticals:Growth was led by Energy & Utilities (8.5% QOQ), Travel & Hospitality (2.9%
QOQ) and Life Sciences & Healthcare (2.5% QOQ).Retail & CPG vertical saw Turnaround
which a growth of (3% YOY) and (6.4% QOQ in CC). Robust demand pick up in Retail is
expected in coming quarters.Retail & CPG vertical saw Turnaround which a growth of (3%
YOY) and (6.4% QOQ in CC). Robust demand pick up in Retail is expected in coming quarters.
♦Georgraphy wise:From a geography perspective, growth was once again led by a strong 2.6%
QoQ growth in Continental Europe and 5% growth in Latin America. North America continue to
grow below company average primarily due to the softness in BFSI.
COMPANY
Tata Elxsi Limited
INDUSTRY Software & Services
22nd Jan 2018 Q3FY18 EARNING CONFERENCE CALL
Management Participants
MD&CEO
Mr. Madhukar Dev
EVP & Head – Embedded
Product Design
Mr. Manoj Raghavan
SVP & Head – Marketing
Mr. Nitin Pai
Our analyst in the call
Niharika Ojha
COMPANY
Tata Sponge Iron Ltd
INDUSTRY Metals/Mining/Minerals
18th Jan 2018 Q3FY18 EARNING CONFERENCE CALL
Management Participants
Chairman
Mr. A M Misra
MD
Mr. D P Deshpande
Our analyst in the call
Sagar Sharma
♦ Iron ore and Coal prices have increased but increase in coal prices have been more as
compared to iron ore. Further increase in iron ore price would impact profitability as it would be
tuff to pass on increment in prices from here on.
♦Finance cost included onetime payment to income tax authority.
♦Details on capex for steel plant are being worked out and are at advance stage.
♦It would take 2.5 years to set up steel plant after getting environment clearance.
Narnolia Securities Ltd Please refer to the Disclaimers at the end of this Report
♦TATAELXSI overall revenue grew 12.8% YOY to Rs 346 crore in 3QFY18 vs Rs 309 crore in
3QFY17. Revenue growth was led by software development services business (94.8% of
revenue) 14% YoY. Automotive segment led the growth for software development services.
♦EBITDA came in at Rs 93 crore up 11.3% QOQ and 31.1% YOY.
♦Employee cost decline sequentially due to replacement cost lower than attrition cost. Attrition
rate for 3QFY18 is 12%.
♦Industrial design saw a soft quarter in 3QFY18 to improve in next two quarters on the back of
good pipeline.
♦VERTCALS:In EPD segment total revenue composition was 55% to 60% from
automotive,30% from broadcast and rest came from communication segment.Good
opportunities to continue from OEMs and tier 1 in automotive, from communication segment lot
of traction with telecom operator space will come in next few quarters.
♦Revenue contribution of client base: Top 2 clients contribute 20% to 35%, top 5 contributes
45% and top 10 contributes 60% of overall revenue. Management working to improve more top
5 & top 10 accounts.
♦The company aspires to achieve 20% growth in top line.
♦Headcount for 3QFY18 was 5400, a net increase of 300 employees. Mgt continues to hire more
employees.
♦Utilization for 3QFY18 is currently at 82% and management does not expect to grow higher.
150 active customer in 3QFY18.
♦Management is confident of achieving target of 410 KT of sponge iron production in FY18.
♦Increase in sponge iron price because of increasing raw material cost. Sponge iron prices are
expected to remain around Rs.20000 per ton for next 6 months.
COMPANY Tech Mahindra Ltd
INDUSTRY Software & Services
29th Jan 2018 Q3FY18 EARNING CONFERENCE CALL
Management Participants
CFO
Mr. Milind Kulkarni
Vice Chairman
Mr. Vineet Nayyar
Our analyst in the call
Niharika Ojha
Company TVS Motor Company Ltd.
INDUSTRY Automobiles
30th Jan 2018 Q3FY18 EARNING CONFERENCE CALL
Management Participants
CEO
Mr K N Radhakrishnan
Group CFO
Mr K Gopala Desikan
Our Analyst in the Call
Naveen Kumar Dubey
♦Revenue was Rs 7,776 crore versus Rs 7,606 crore in Q2FY18 up 2.2% QOQ and 2.9% YOY.
♦EBITDA margin was 16.3% versus 14.5% in Q2FY18, improvement of 180 basis points on the
top of improvement of 180 basis points. The margins tailwind came from improved utilization
from 81% to 83%, improved business mix and improvement in the profitability of portfolio
company.
♦Sold off Pakistan operations of LCC resulting in a small gain of 1.4 million which is a part of
the miscellaneous income.
♦BPS business saw another good quarter, QoQ grew about 20% and year on year about 24%.
This has come on the back of, strong execution on the strategy of driving transformation,
leveraging technology on the front office side, that is on the digital customer experience front, as
well as using platforms, automation, analytics and artificial intelligence on the back office and
mid office side as well.
♦11 deals wins and TCV 300 million in this quarter.
Narnolia Securities Ltd Please refer to the Disclaimers at the end of this Report
♦Incredible pace at which innovation, disruption, and adoption of cutting-edge technologies
challenge for IT sector.
♦Networks of the Future, Internet of Things, Devops, and customer experience which will be
Growth driver for the company going forward.
♦Continued investing in areas pertaining to future of technology like IoT, AI, ML, VR,
blockchain, cyber security, Big Data analytics and robotics.
♦Vertical performance: Manufacturing, BFSI, TME and Healthcare had grown at about 10% year-
on-year. Won large deals in healthcare insurance space this quarter and saw BFSI customers
added to $50 million customer account. Communication business decline on cautious decision to
let go off some of our low-yielding business during the last year with a view to improve the
business mix of the communication portfolio.♦Wage increase will impact in 1QFY19. FY 2019 tax rate expected at range of 24% .
♦The company expects growth momentum to continue in FY19 and it will grow better than the
industry.
♦Double digit margin guidance for 4QFY18 & FY19
♦Other expenses to remain high as the company will continue to invest in marketing and sales
promotion.
♦The company is fully focused on bottom line improvement.
♦Apache RTR 310 received good response and the company expects volume of 10000 units in
first 12 months.
♦Currently waiting period for Apache RTR 310 is 4-4.5 months.
♦Capex guidance of Rs.500-600 crores for FY18 and Rs.500 crores for FY19.
♦The company has taken any new loan in the current fiscal.
♦ There will be a new product launch next week and another in 4QFY18.
Company Ujjivan Financial Serices Ltd.
INDUSTRY Diversified Financial Services
5th Feb 2018 Q3FY18 EARNING CONFERENCE CALL
Management Participants
MD & CEO
Mr. Samit Ghosh
Non Executive Director
Venkatesh Natarajan
Ind. Non-Executive Director
Sunil Patel
Our Analyst in the Call
Sweta Padhi
Company Union Bank of India
INDUSTRY Commercial Banks
3rd Feb 2018 Q3FY18 EARNING CONFERENCE CALL
Management Participants
MD & CEO
Shri Rajkiran Rai G.
Our Analyst in the Call
Anu Gupta
[email protected] ♦67% of the loan book is repriced at MCLR. NIM guidance for FY18-2.10%.
♦Sale to ARC of 8000 crore. NNPA is expected to come down below 6%.
♦Few recovery not considering NCLT for this quarter should be more than 1000 crore for the
bank.
♦NCLT resolution is not expected for Q4FY18.In Q1 and Q2 FY19 substantial recovery will be
seen.
♦Credit cost for FY18 to be around 4%. It is assumed to be 2% due to the ageing provision
happening in few of the accounts.
♦Between SDR, S4A and 5/25 there is a overlap of 2500 crore and in SMA-2 around 6000
crore of overlap.
♦Standard restructure amounts to 3700 crore out of which 1 infrastructure A/c of 431 crore were
added during the quarter .In next 6-9 month either it will be upgraded or slip into NPA.
Narnolia Securities Ltd Please refer to the Disclaimers at the end of this Report
♦NIM to further reduce by 50 bps in FY18.
♦Individual Loan NPL is at 7.5% while it was at .1% in 3QFY17.
♦2255 Cr legacy borrowing have been paid, while 950 Cr is prepaid.
♦Brought down investment book during sept-dec17 by 5000 crore because of G-sec yield issues.
♦Surplus SLR to the extent of 16000 crore is adequate for the liquidity requirement.
♦55% of Retail book is housing and 15% is LAAP. Cross sell of the product is done along with
the sell of retail loan therefore income will be balanced.
♦4% of the book will be under stress in SDR, S4A and some in SMA-2.
♦Number of slippages is expected to reduce in the next year.
♦SLR-4-5% in terms of NDTL. SMA-2 amounted to Rs 13518 crore.
♦Strong growth in Retail & SME due to cross selling to existing customer.
♦Wage revision provision has not been done in this quarter. It is assumed that it will be 75 crore
per quarter from Q4FY18.
♦Collection efficiency is at 99.7%.
♦Ujjivan to roll out 67 branches in 4th quarter, to total 388 branches in FY18.
♦Deposit is 2437 CR, with CD at 1379 Cr.
♦Average cost of borrowing is at 9.3%.
♦650 Cr Opex guidance to increase by 20-25%.
♦20%-25% growth guidance for FY19.
♦FY19 all branches will be converted to SFB.
♦Credit Cost for FY19 to be 1% or below 1%.
Company Yes Bank Ltd.
INDUSTRY Commercial Banks
18th Jan 2018 Q3FY18 EARNING CONFERENCE CALL
Management Participants
MD & CEO
MR. Rana Kapoor
SENIOR GROUP
PRESIDENT & CFO
Rajat Moga
Our Analyst in the Call
Deepak Kumar
Company Zensar Technologies Ltd.
INDUSTRY Software & Services
19th Jan 2018 Q3FY18 EARNING CONFERENCE CALL
Management Participants
MD & CEO
Mr. Sandeep Kishore
CFO
Manoj Jaiswal
Our Analyst in the Call
Niharika Ojha
♦The management is seeing strong pipeline and deal wins in the CX, UX, the digital agency and
the CMO, CDO space in the European market segment.
♦Vertical: Financial services grew 6%; manufacturing grew 5%; and retail above 1.8% on
constant currency.
Narnolia Securities Ltd Please refer to the Disclaimers at the end of this Report
♦Credit growth in the system was strong. Loan growth for Yes bank is coming from large new
corporate client. Adequate level of capital has helped Yes Bank to grow.
♦Treasury income was lower by 100 Cr due to sudden spike in bond yield.
♦NIM declined by 20 bps sequentially due to two reasons-
1) 10 bps impacted by capital bond borrowing of Rs 9400 Cr at 8.5% cost which is higher than
overall 6% cost of fund for Yes Bank.
2) 10 bps was impacted due to increase in Security Receipts Book.
♦Management reiterated NIM guidance of 4% well before FY20 on the back of following lever:
a) CASA growth target of 40% by FY19.
b) Reduction in saving deposits rate which is at 6% currently. It will cost around 4% by FY20.
c) Growing PSL organically will help in cost reduction.
d) Change in assets mix towards retail book.
♦Cost to income ratio will decline to 37% in few years horizon
♦Digital revenue accounted for just under 39%- 38.8% of the overall revenue and grew 9%
sequentially and 35% year-on-year.
♦GEORGRAPHY: US delivered a solid growth of 5.3% on constant currency sequentially.
Africa continued its great performance and grew 3% sequentially on constant currency. Europe
predominantly on account of Foolproof revenue actually saw a marginal decline due to the
furloughs and seasonality of the business.
♦The effective tax rate for the quarter is at 33%. This is primarily due to the increase in profits in
US business and Q2 included a one-time gain in India taxes which is not recurring.
♦Guided to achieve CASA 40% by September 2018. Targeting PCR of 60% in June qtr 2018.
Significant part of NPA will be recovered within two quarters.
♦Management highlighted that 40-50% of fee income will be amortized under IFRS accounting.
♦Bank has increased MCLR rates by 5 bps effect from January. Major of the book is on floating
rate.
♦Revenue for the quarter is Rs 794 crore which reflects a sequential growth of 4.1 QOQ. The
gross margin for the quarter improved by 134 basis points over the previous quarter despite of
lesser working days.Net profit saw a decline due to exchange impact and higher taxes.
♦Keystone, the company that was acquired in March 2017 continues to perform well. Keystone
grew over 12% QOQ. Foolproof revenue saw a decline this quarter due to furloughs.
Company Zydus Wellness Ltd
INDUSTRY Food Products
7th Feb 2018 Q3FY18 EARNING CONFERENCE CALL
Management Participants
COO
Mr. Tarun Arora
Director
Ganesh Nayak
VP corporate finance, Cadila
Health care.
Vishal Gor
Our Analyst in the Call
Rajeev Anand
Narnolia Securities Ltd Please refer to the Disclaimers at the end of this Report
♦Sugar substitute category grew by 13.2% YoY in this quarter. Sugar free’s market share
remained 94.4% in Q3FY18.
♦Scrub category grew by 9.9%YoY.
♦Peel off category grew by 17.9% YoY while Everyuth peel off mask’s market share remained
86.5% in Q3FY18.
♦Gross Margin deteriorated QoQ due to rise in custom duty on Palm Oil twice, once in August
and second in November 17.
♦The company will speed up new launches going forward.
♦GST rate was cut by government in November. The company had immediately passed it to the
consumers.
♦Company’s distribution reach at business level is 8.2-8.3 Lakhs outlets.
♦A&P expenses will remain in the range of 18-20%annually.
♦Nutralite: 70% of its business is institutional. Continue to witness volume led growth on the
back of enhance distribution and new launches.
♦Sugar free green has market share of 1.6% as per Neilson. Company sees better traction from it
going forward.
♦The company is launching Mayonnaise in this quarter. Have enough new launches for next 3-4
quarters.
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