}

Friday, 29 January 2016

F N A January 29, 2016

Sharekhan's Fundamental News and Analysis

January 29, 2016

TOP NEWS

USFDA red-flags lack of controls at Wockhardt's Shendra unit near Aurangabad  - Negative for the stock.
The USFDA's inspection at Wockhardt's plant at Shendra earlier this month found a series of violations, including lack of controls to ensure that only authorised personnel could make changes to records and a bag of unaccounted shredded documents in a laboratory. Wockhardt's Shendra unit near Aurangabad, which supplies products to some developed markets, was inspected from January 4 to 12, ahead of initiating supplies to the US. The FDA had listed nine observations related to processes followed at the plant, which Wockhardt  later clarified were not of a serious nature. One observation noted by FDA investigators in Form 483 showed that appropriate controls had not been exercised over computers and related systems to ensure that changes in master production and control records are instituted only by authorised personnel .
Sun Pharma is looking to sell some low priority Ranbaxy brands like Fortwin, Romilas etc.  Company expects valuation of Rs 270 cr for these products. – Positive

Alert: United Spirits has received a notice from the Corporate Affairs Ministry for inspection of its books of accounts and other books and papers in the wake of alleged violations of the company’s law – sentimentally negative for the stock

Edelweiss Tokio Life Insurance has received IRDA approval to increase foreign stake to 49%, Tokio Marine to infuse over Rs 525 crore to fund expansion plans – Positive read thru for Edelweiss Financial Services

Bharati Defence (earlier known as Bharati Shipyard)is in talks with an affiliate of Russia's United Shipbuilding and a UK-based company for a strategic partnership to warships in India – Positive for Bharati Defence

The Dharavi Redevelopment Authority will invite tenders for the Rs25,000 cr redevelopment project of four of the five sectors of the slum area at Dharavi in Mumbai on Saturday  -- Positive read thru for HDIL, DB Realthy and other major players in the SRA space

Export incentives: As per media reports, to boost waning exports, the commerce ministry has suggested that exporters be exempted from payment of service tax in the coming budget – Positive for service providers (possibly would include IT, BPO in the proposal)

RESULT PREVIEW

Company
Revenues (Rs cr.)
OPM(%)
Adjusted PAT (Rs.cr)
Q3FY16E
Q3FY15
YoY%
QoQ%
Q3FY16E
Q3FY15
YoY bps
QoQ bps
Q3FY16E
Q3FY15
YoY%
QoQ%
L&T
15,375
14,995
2.5
16.2
9.4
10.5
(107)
175
960.2
1,059.8
(9.4)
49.4
Thermax
1,096
1,136
(3.5)
5.0
10.2
11.6
(137)
66
73
76
(4.4)
12.5
V-guard
465
395
17.6
6.9
8.5
5.5
302
9
25
14
74
6.9
Skipper
400
323
24.1
10.7
14.5
14.7
(16)
438
24
17
40.5
36.0
UPL
3270.6
3047.2
7.3
16.7
18.5
18.9
-40
-50
301.9
304.7
-0.9
32
IRB Infrastructure
1,134
964
17.7
-1.3
55.4
57.6
-226
272
153
133
15.5
2.7
TVS Motors
2959
2653
11.5
2.7
7.4
6.6
83
8
124
105
18.2
6.8
Gabriel India
356
359
-1.0
-5.1
8.9
8.0
89
13
18
16
10.8
-8.3

Company
Net Interest Income (Rs cr.)
Pre-Provisioning profit (Rs.Cr)
Adjusted PAT (Rs. Cr)
Q3FY16E
Q3FY15
YoY%
QoQ%
Q3FY16E
Q3FY15
YoY%
QoQ%
Q3FY16E
Q3FY15
YoY%
QoQ%
Yes Bank
1120
909
23.2
1
1032
863
19.7
1.3
614
540
13.6
0.5


INVESTMENT CALLS

Q3FY2016 Analyst meet : Key Highlights of Power Grid
·         The strong earnings growth (31% up YoY) of PGCIL during Q3FY2016, was mainly driven by substantial surge in capitalization as a major HVDC line (NER-Agra HVDC Interconnection pole) was being commercialized. During this quarter, total capitalization was Rs 17,207 crore (highest ever capitalization on quarterly basis) out of which Rs 8,000 crore was related to the Agra HVDC line, while remaining were from several AC lines. YTD (9MFY2016), capitalization stands at Rs 26,802 crore and management expects to cross Rs 28000 crore capitalization for the full year FY2016 and around Rs 27000 crore in FY2017.
·         There is substantial drop in Capital Work in Progress, as the high value HVDC line got capitalized. Management expects to keep CWIP in the same range given the expectations that they will continue to have higher capitalization in coming years.
·         Going forward, the capex plan for FY2017 stands at Rs 22550 crore and the company is having around Rs 1,10,000 crore of capex plan for next 4-5 years.  Green Energy corridor capex stands around Rs 13000 crore (share of PGCIL), which are separated in four phases, while 1st and 2nd phases are in progress, phase 3 is ready for awarding and phase 4 is under bidding process.
    
ICICI Bank – Q3FY16 Result Update: NPAs rise sharply, PT revised to Rs 260, downgrade to hold
·         Earnings growth aided by treasury gains, lower tax rates: ICICI Bank earnings were in line (up 4.5% YoY) but aided by one-off investment sale income profits (Rs 1243 crore from 4% stake sale in ICICI Pru Life) and lower tax rates (18.8% Vs 28.8% in Q3FY15). The one-off gains were utilized for provisioning (up 190% YoY) for NPAs recognized during the quarter. Net interest margins were stable at 3.53% despite the base rate cuts and reversal of interest income (on NPAs) due to moderation cost of funds (down 15 bps QoQ). Advances growth was steady ( up 15.8%) with strong growth in retail segment ( up 24.1%YoY)
·         Asset quality headwinds to raise provisioning burden: During Q3FY16, the bank reported significant rise in slippages (Rs 6544 crore Vs Rs 2242 crore in Q2FY16) largely contributed by one steel account exposure. Of the total slippages ~Rs 4400 crore (including the steel sector account) were based of RBIs assessment of asset quality. Apart from this bank refinanced Rs 450 crore worth of loans under 5:25 scheme and undertook SDR for Rs 1670 crore of loans. The management expects the slippages in Q4FY16 to be similar to Q3FY16 and half of that ( i-e ~ Rs 3200 crore)  is likely to be contributed by the restructured loan portfolio.  Given the sharp rise in slippages, the provisions increased by 190% YoY whereas overall provision coverage dipped 53.2% Vs 57.4% in Q2FY16.
·         PT revised to Rs 260, downgrade to Hold: We have revised our estimates downward in view of deterioration in asset quality and likely jump in credit cost. Also we revise our valuation multiple for ICICI Bank to 1.1x FY17 BV (Vs 1.8x earlier) in view of imminent stress in corporate book and cleanup of loan book. This results in revision in our SOTP price target to Rs 260 for the stock. Even as strong liability franchise, better capital ratios, reasonable valuations and value unlocking from investment are positives for the bank; the asset quality worries will occupy most  mind-space in near term.  We therefore downgrade the rating to hold.

Maruti Suzuki – Q3FY16 Result Update: Margins disappoint; maintain Buy with revised PT of Rs5,200
·         Lacklustre quarter, margins missed estimates: Maruti Suzuki India Ltd (MSIL) reported a 14.4% growth in OPM for Q3FY2016 as against 12.7% for Q3FY2015 and 16.3% as of Q2FY2016. The sequential drop in the margin is primarily attributable to 164-BPS increase in raw material cost coupled with a 35-BPS increase in employee expenses. The increase in input cost is primarily on the back of overhauling and maintenance expenses for Gurgaon plant. The higher operating expenses coupled with higher depreciation expenses and effective tax rate led to a decline in the net margin to 6.8% for Q3FY2016 as against 8.8% of Q2FY2016.
·         Top line to exhibit improved traction going ahead: MSIL has done rebalancing of its Gurgaon plant to improve its output (targets 1.6 million units in FY2017). Further, the company has guided for the commencement of first phase of Gujarat plant with a capacity of 2.5-lakh units, scheduled in late FY2017. Further, the company plans to double the number of Nexa outlets by FY2017 from the current level of 100 outlets. Thereby, it would be well positioned to exploit the expected improvement in demand resulting from the implementation of salary hikes recommended by the Seventh Pay Commission and overall improvement in the urban discretionary consumption. 
  • Maintain Buy with revised PT of Rs5,200: We have downgraded our earnings estimates for FY2016, FY2017 and FY2018 to factor in the pressure on margins and the currency fluctuations (movement of yen against the dollar). Consequently, we have downgraded our price target to Rs5,200. However, MSIL continues to be our preferred pick in the auto sector with strong volume driven growth over the next two years. We also have maintained our Buy rating on the stock.

Jyothy Laboratories Q3FY2016 stock update– Home care segment outperformed; steady growth momentum to sustain (maintain Buy; PT – Rs360)
·         Steady volume growth sustains; margin expansion aided PAT growth: Jyothy Laboratories Ltd (JLL) reported a revenue growth of ~7% to Rs385.4 crore driven by a volume growth of 9% (sustained on a Q-o-Q basis). The power brands registered a sales growth of 9.2% in Q3FY2016 driven by 8.6% volume growth during the quarter. The gross profit margin improved by 205BPS YoY to 52.5% on the back of lower raw material prices (especially decline in the prices of crude derivatives) and change in the revenue mix. This along with better operating efficiencies led to 316-BPS improvement in the OPM to 13.2%. The operating profit grew by 40.4% YoY to Rs51.0 crore and the PAT grew by 47.7% to Rs39.0 crore during the quarter. 
·         Home care segment shined;Margo’s performance back on track: The home care segment (includes household insecticide [HI] and dishwashing categories) registered a 25% revenue growth in Q3FY2016. The mosquito repellant category grew by 32%, driven by 16% growth in Maxo coils and 35% growth in Maxo liquid vaporiser during the quarter. The dishwash segment grew by ~9% to Rs119.7 crore (volume growth stood in double digit on account of higher promotional offerings). Ujala fabric whitener grew by 5.6% (largely a price-led growth), while detergents and bar segment registered a decline due to higher competitive intensity. Margo registered a strong growth of 20% during the quarter.
·         Volume growth to sustain; HI and dishwash to remain key growth drivers: JLL’s management is confident of achieving 9-10% volume growth in the coming quarters. Going ahead, we expect the revenue growth to get back in double digits, largely driven by strong growth in household insecticide and dishwash segments. With promotional intensity to reduce in the coming quarters, the management is confident of achieving good growth in the fabric wash segment (on the back of new brand strategy and focus on improving reach). The margin benefits are likely to continue if raw material prices continue to remain benign in the coming quarters.
·         Maintain Buy: We have broadly maintained our earnings estimates for FY2017 and FY2018. The presence in the high growing categories, such as HI, dishwash and herbal soap, will help aid JLL to achieve double-digit revenue growth in the coming years. The margin expansion will be function of improvement in the revenue mix and benign input prices. We expect JLL’s PAT to grow at a CAGR of 15% over the next two to three years. We maintain our Buy recommendation on the stock with an unchanged price target of Rs360. Henkel exercising its option of acquiring 26% and opting for open offer at a high price than the current stock price would be a key trigger for the stock in the near term. The stock is currently trading at 27x its FY2017E and 23x its FY2018E earnings.

Info Edge (India): Q3FY16 results update: Moving in right direction
·         Steady operating performance in a seasonally weak quarter: For Q3FY2016, Info Edge reported a decent operating performance, with 19% Y-o-Y growth in revenues to Rs173.4 crore, led by 19.3% growth in the recruitment business (Naukri.com) and 12.6% in 99acres.com. The EBIT margin for the quarter improved by 280BPS QoQ and was down by 261BPS YoY to 19.1%. While the sequential improvement in margin was led by lower loss in the 99acres business from Rs27 crore loss to Rs21.3 crore in Q3FY2016, the EBIT margin for Naukri was down by 360BPS QoQ to 49.5%. The overall margins’ performance was better than expectations. The reported net income was down by 43.8% YoY to Rs21.7 crore, on account of extra-ordinary items of Rs11.5 crore on account of; 1) capital gain from sale of stake in Policy Bazaar; 2) additional provision for bonus; and 3) diminution in the carrying value of Canvera Digital Technologies (investee company). The tax provisioning was up by 21% YoY and 55% QoQ to Rs21.4 crore on account of Rs4.5 crore one-off capital gain tax pertaining to stake sale in Policy Bazaar. On an adjusted basis, the net income for the quarter was down by 2.5% YoY and up by 11% QoQ to Rs37.7 crore.
·         Pick-up in non-IT market, key to cross high-teens growth in Naukri: (1) Naukri’s growth momentum to continue led by IT market; the management maintains high-teen growth in the segment, but to improve thereon it will be aided by pick-up in non-IT markets; (2) 99acres-real-estate market is witnessing slowdown in Delhi NCR region (largest market for the company); other markets like Mumbai, Bengaluru, and Pune remain relatively better. Overall transaction volumes have fallen across the markets (new launches down 50-70% YoY) with inventory piled up to two to four years; (3) Competitive intensity has decreased for 99acres owing to weak demand environment, not expecting any revival soon; (4) Acquired 35% stake in Rare Media Company Pvt Ltd for Rs7.5 crore, it is a B2B apps/platform business, which will help in creating solutions for 99 acres; (5) Zomato is not expected to breakeven in near term, need another 9-12 months to see some certainty of breakeven timeline.
·         Maintain Buy with a price target of Rs1,000: Given the dullness in the real estate market and lower competitive intensity, we expect margins to improve in the business in the near term. However, getting back to growth in top line will be a constraint in the segment. In Naukri, we expect gradual improvement over FY2017-18 with improvement in overall GDP and job market. We have broadly maintained our estimates for FY2016 and FY2017. We continue to see Info Edge as a strong play on India’s internet and mobile penetration theme. With a strong online presence through various ventures in recruitment (Naukri), real estate (99acres), restaurant listing (Zomato) and coupons industry (mydala.com), it is a preferred play on both e-commerce/online shift coupled with macro recovery. We have maintained our Buy rating on the stock with an SOTP-based price target of Rs1,000.
Firstsource Solutions Ltd: Q3FY16 results update: Missed estimates, growth to accelerate in FY17/18E
·         Missed estimates, impacted from Chennai flood: FSL’s earnings for the quarter missed overall estimates, owing to Chennai flood impact. Revenues for the quarter were up by 2.2% qoq on CC basis, company has loss revenues to the tune of $2 mn owing to Chennai deluge. On INR term, total revenues were up by 2.8% qoq to Rs800.8 crore (including hedging gain of Rs16.9 crore Vs 13.2 crore in Q2FY16). EBIT margins was improved marginally by 20bps qoq to 10.3%, loss of 50bps on account of Chennai flood. Net income for the quarter was higher by 8.5% qoq to Rs67 crore. On operating metric front, BFSI vertical up by 7.4% qoq, including the revenues from UK bank Lift out deal, however collection business was down owing to seasonal weakness, Telecom up by 3.3% qoq and healthcare remain muted qoq. Top client up by 4% qoq, while top 5 clients were up by 10.9% qoq. Added net 260 headcount (375 people from UK lift out deal), seat filling factor stood at 66% vs. 67% in Q2FY16.
·         Management expects earnings to accelerate in FY17: 1) Acquired BPO business of ISGN Corporation based out of US, with over 700 employees for $13mn. The acquisition will give FSL entry into the mortgage market, the current revenues run rate of the company is at around $25 mn and margin negative. Management expects to close the deal by Feb-March 2016 with regulatory clearance, expect EPS accretive from first year of operation. 2) Management expect to deliver 6.5-7% qoq growth in Q4FY16 and with OPM upward of 13%, for FY17 management expect to deliver atleast $550 mn in revenues, excluding ISGN acquisition and margin improvement of 50-70 bps on operating levels. 3) Total TCV signed during the quarter was at $7 mn, against $27 mn in Q2FY16, deals pipeline declined to $370 mn from $500 mn in Q2FY16 4)Expect to be comfortably net cash positive by end of FY17, total debt of $85 mn by end of FY17.
·         Maintain buy with a price target of Rs52: We have tweaked our estimates for FY16/17E owing to earnings miss in Q3FY16 and also introduce our FY18E estimates. We expect earnings to accelerate in FY17/18E with improvement in top line growth, we expect 21% earnings CAGR over FY16-18E. At the CMP of Rs37.4, stock trades at 7.5x/6.5x FY17/18E earnings estimates. We maintain our Buy rating with a price target of Rs52.
Granules India Limited (GIL)  Q3FY16 Conference call highlights – Strong outlook; View positive
·         Granules recently announced agreement with Par pharmaceuticals to market generic version of OTC omeprazole and sodium bicarbonate (gZegerid) in North American market. The company said it expects the USFDA approval for the product by July 2016. The product could be launched in H2FY17 and can report sales of $ 4-5 mn (~ Rs 25-30 crores) in FY18.
·         The company has recently had USFDA audit at two units, namely, Jeedimetla and Vizag. Vizag unit has been cleared without any observations. Jeedimetla facility received three 483 observations (procedural in nature) to which the company has responded and awaits further communication from USFDA.
·         Company is successfully shifting its product mix to formulations from API’s. Hence we expect the margins to improve further as sales shift more to formulations, better capacity utilization and better product mix with higher value products.
·         GIL will file 10 ANDA applications over the next two years, the benefits of which would be visible FY18 onwards. Thus we expect the margins to improve further post-approval of ANDAs (FY18 onwards).
·         Company has incurred capex of Rs 78 crores in nine months of FY16 and will incur  Rs 100 crores in FY17.  Gross debt as on Dec 2015 is Rs 462 crores Long term debt of Rs 348 crores + Working capital loan of Rs 114 crore). Tax rate will be 32% for next two years.
·         With a defined strategy of transforming itself into a high-margin formulation player and good earnings visibility of 33% CAGR (despite dilution due to warrant issue to promoter) over FY16-18, though the company is in an investment mode, yet its balance sheet is in a comfortable position. Its debt-to-equity stands at 1.1x. With good earnings prospect and better cash flows, the debt on books will further reduce and strengthen the balance sheet. Hence, we have a positive view on the stock.

Emami Q3FY2016 (consolidated) results - performance was in-line; Kesh King led operating performance (core business underperforms due delay in winter season)
·         Revenues grew by 14%: Emami’s Q3FY2016 (consolidated) revenues grew by 13.9%yoy to Rs788.5crore. The organic revenue growth stood at 4% with sales volume remaining flat during the quarter. Kesh King brand contributed around Rs68crore to the overall revenues in Q3FY2016. The growth of the core portfolio was impacted by delay in winter season, which affected the performance of Boroplus Antiseptic cream (registered just 2% growth). Cooling oil segment declined by 6% during the quarter. Zandu health care range of products continued to outperform with 25% growth during the quarter. The international business registered 11% growth in Q3 (Supply blockage in Nepal and slowdown in Middle East affected the growth, which would have been much better).
·         Operating profit grew by 18% - The gross margins improved by 351BPS to 70.8%, largely driven by lower input prices and improved sales of Kesh king brand (which has higher gross margins than the consolidated operations). Kesh king brand registered operating margins of 45% in Q3FY2016. The consolidated operating margins of Emami stood at 31.6% in Q3FY2016.
·         Higher interest cost and other income affected PAT growth; management targets to repay debt by FY2018 The interest cost in Q3FY2016 stood at Rs17crore as against Rs2.0crore in Q3FY2015 mainly on account of increase in debt due to acquisition of Kesh King brand. The net debt at end of December 2015 stood at Rs600crore. The management is targeting of repaying debt over the next seven to eight quarters through internal accruals. The interest cost is expected to decline from second half of FY2017.
·         Outlook for near future- Zandu portfolio will maintain strong growth; Kesh King to contribute Rs70-75crore per quarter: Q3 performance was impacted by late winter, which would add little to revenues in Q4 (as winter products contribute just 10% to revenues in Q4). The management is focusing the arrival of summer to deliver good growth in Q4. Kesh King brand is expected to contribute Rs70-75crore per quarter in the near term. Zandu products are expected to maintain strong growth of 20-25% in the coming quarters. The recently launched Zandu honey is gaining good traction and will add-on to overall revenues of Zandu. The newly launched Fair & handsome instant face wash and 7 in one oils are likely to maintain the strong growth momentum.  On the margin front, better revenue mix would continue to add to overall margins as Kesh king’s operating margins are expected to remain at around 45%. With raw material prices likely to remain benign, the gross margins are expected to remain high in the coming quarters.
·         Maintain Positive view on the stock – The performance summer portfolio (including cooling oil and talc) will be keenly monitored in Q4 in the advent of summer season. With no vagaries of seasonality changes, we expect the core portfolio to achieve double digit revenue growth and Kesh King brand will add-on to overall revenues over the next two quarters.  With portfolio of strong brands catering to niche categories and focus on introducing new products in regular interval, the growth prospects of Emami will improve in the coming years. Also distribution push would further enhance the sales volume in the coming years.  The stock is currently trading at 27.5x its FY2018E earnings.   
Result snapshot (consolidated)                                                            Rs crore
Particulars
Q3FY16
Q3FY15
yoy%
Q2FY16
qoq%
Net Sales
788.5
692.3
13.9
574.6
37.2
other operating income
0.0
0.0
#DIV/0!
0.0
#DIV/0!
Total income from operations
788.5
692.3
13.9
574.6
37.2
Operating profit
249.5
211.5
18.0
152.3
63.8
Other income
5.0
33.8
-85.2
12.9
-61.5
interest expenses
17.1
2.0
758.3
19.1
-10.5
Adjusted PAT
195.5
186.2
5.0
110.6
76.7
extra-ordinary gain / loss
-61.7
9.9
-
-49.6

Reported PAT
133.8
196.1
-31.8
61.1
119.1






Adjusted EPS (Rs.)
8.6
8.1
6.4
4.9
76.7
Gross margins (%)
70.8
67.3
351BPS
70.6

OPM (%)
31.6
30.6
109BPS
      26.5
514BPS


Bharti Airtel Q3FY16- Mixed performance; volume grows; but tariff pressure continues
·         The consolidated topline grew at 1.1% sequentially , aided by robust growth coming from the India mobile business (+2.3% yoy). The data volume grew at 17% qoq, while the voice volume growth was strong at 3% qoq.   On the tariff front both data as well as voice pricing declined by 5.3% and 2.3% qpq.  Airtel Africa declined by 0.3% qoq on rupee terms.
·         Driven by strong revenue from the India mobile business, the operating profit grew by 2.4% qoq, (India mobile EBITDA grew by 3.2% qoq, with margin expansion for now 6th quarter in a row). The consolidated margin expanded by 47 basis point qoq.
·         Driven by increased depreciation and and high tax provision, along with an exceptional loss, resulted in 25.8% qoq decline in the earnings. Adjusting for the same, the net earnings  grew by 5% on a qoq basis.
·         We currently have a hold rating on the stock, and would update post concall with the management.

Q3FY16- Consolidated performance
Particulars in cr
Q3FY16
Q3FY15
% Y-o-Y
Q2FY16
% Q-o-Q
Net Sales
24,103
23,228
3.8
23851.9
1.1
Operating Profit
8,452
7,786
8.6
8250.2
2.4
Reported PAT post minority
1,117
1,437
(22.2)
1505.5
(25.8)
Exceptional items for the quarter (gains)/ loss (net of taxes) (forex loss)
341
293
-117.6
Adjusted PAT post minority
1,458
1,729
(15.7)
1387.9
5.0
Adj. EPS
5
3
68.5
4.07
20.4
OPM (%)
35.1
33.5
155
34.59
47  bps








Actual Vs Estimates
 Rs cr
Q3FY16A
Q3FY16E
% Variance
Net Sales
24,103
24,235
(0.5)
Operating Profit
8,452
8,434
0.2
Adjusted PAT post minority
1,458
1,207
20.7
OPM (%)
35.1
34.8
26.4


Glenmark Q3FY16 Result:  Below estimates; currency headwinds across emerging markets continues to impact operations
·         Glenmark’s consolidated revenue was at Rs. 17,78.3 crores (USD 270.15 Mn) as against Rs. 17,01.3 crores (USD 274.80 Mn) , an increase of 4.53.
·         Operating profit declined by 0.6% to Rs 397 crores; operating margins declined by 108 bps to 20.8%.
·         Adjusted Profit declined by 14% to Rs 170 crores.
·         The Russia business continues to remain challenging. While demand conditions are still weak, the currency continues to create turbulence for the business. The CIS region ex Russia also continues to be under pressure.
·         Latin America business declined by 47.3% on account of currency headwinds in Brazil. Glenmark stopped supplying to the Venezuela subsidiary from the month of November and is evaluating the situation on a constant basis.
·         Going ahead, the company expects India, US and Europe businesses to continue to drive growth.
·         We have a Hold rating on the stock. We will review our earnings post the conference call and will come out with detailed note.

Result (Rs Cr)
Particulars
Q3FY16A
Q3FY15
YoY %
Q2FY16
QoQ %
Revenues
1778.2
1701.0
4.5%
1909.0
-6.9%
Operating Profit
369.7
372.0
-0.6%
402.0
-8.0%
Adjusted PAT
170.2
198.0
-14.0%
198.0
-14.0%
GPM(%)
9.6
11.6
-207
10.4
-80
OPM(%)
20.8
21.9
-108
21.1
-27
Actual vs. Estimate (RsCr)
Particulars
Q3FY16A
Q3FY16E
% Variance
Revenues
1778.2
1926.0
-7.7%
Operating Profit
369.7
420.0
-12.0%
Adjusted PAT
170.2
220.0
-22.6%
GPM(%)
9.6
11.4
-185
OPM(%)
20.8
21.8
-102


OTHER NEWS

Telcos raise concern on TRAI’s spectrum auction paper
Post the release of the spectrum auction guidelines by TRAI,  the telecom operators are ruffled and  would be discussing the same with DoT and the  telecom commission on the high price being fixed by TRAI for the same (700 mhz pan India price is fixed at 4x the 1800 mhz price), thus the tussle between regulator and operator starts again.

Government targeting Rs 40,000 cr road projects on hybrid model by March: Positive for the road developers like IRB, ITNL
To fast-track highway building, the government by March will award projects worth more than Rs 40,000 crore on the new hybrid model while 100 projects will be bid out next fiscal. The Cabinet approved hybrid annuity model for building roads to fast-track highway projects, revive the Public-Private-Partnership (PPP) mode and attract more investments in the sector. Under this model, the government will provide 40 per cent of the project cost to the developer to start work while the remaining investment has to be made by the developer.
As per media reports, India and Nepal kicked off a meeting yesterday to discuss cooperation in power sector including implementation of a bilateral power trade agreement signed in 2014. The key points to discuss cross- border electricity transmission, grid connectivity and power trade – Positive read through for Power Grid and PTC India.
Govt has fixed Rs 189/share as floor price to sell EIL's 10% stake.

Crude oil prices spiked yesterday as reports indicates that OPEC may soon discuss an output cut, after Russia and Saudi proposing a 5% production cut. Any confirmation of production cut from OPEC could inch crude higher; positive read through for oil producing companies like ONGC/OIL.