Q4FY19 Concall Highlights

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Bajaj Consumer Care : For hair oil segment, rural growth

outpaced urban growth by 450 bps in Mar 19 quarter
Apr 10, 2019 03:40 PM | Source: capitalmarket.com
The company held its conference call on 10 April 2019 and was addressed by Mr. Sumit
Malhotra MD
Key Highlights
Packaging and oil costs have gone up in Mar 19 quarter. Packaging material particularly has
gone up by around 6% in Mar 19 quarter alone. Despite this, the company through prudent cost
management was able to reduce the effect.
In FY 19 the company had increased the prices of hair oil from Aug 18. Also the price was
increased from April 19 onwards. The new MRP will hit the market from May 19 onwards. The
price increase was around 3%.
Rural growth has outperformed urban growth in Mar 19 quarter for the company by 450 bps. As
far as company is concerned for hair oil market, there is no slowdown in rural India. The
slowdown which one is hearing is in all other high value segments, and not for hair oil category.
Market share in LHO segment stood at 64%. Increase in penetration has helped the market
share. The company re-launched Bajaj almond drop and has resulted in increase in market
share and penetration
For FY 19, Nomarks grew by 14.4% in net sales while for the Mar 19 quarter it was more than
20%.
Market share in anti mark share at 8.6%
Restructuring of international business has been done successfully. For FY 19, sales from
international business stood at 8%. Expects robust growth in international business going
forward.
The company has appointed Bain and company as a consultant for increasing further market
share and market reach for Bajaj Hair Oil from April 19 onwards.
Rural is not slowing down for hair oil segment at all. The company is not worried or seeing any
such challenges in rural market.
Modern trade has seen a 31% growth in Mar 19 quarter and has a long way to go. Ecommerce
business has seen a growth of more than 150% in Mar 19 quarter on YoY basis.
The company has made 2 re-launches and 1 new product launches in past couple of quarters.
Brahmi Amla HO and No marks were relaunched while the company introduced new Bajaj cool
amla and Nomarks Sunscreen cream.
Lower treasury income due to MTM losses has resulted in lower other income
Rs 31 crore of refund due from GST is awaited.
The new capacity addition in Baroda of more than 1/3rd of the existing capacity has started its
construction activities and is progressing well.
Prataap Snacks : Aiming to reach directly to
dealers and distributors
In interaction with Mr. Amit Kumat MD of the company on 9 April 2019

Key Highlights
Both FY 15 and FY 17 saw depressed margins due to high potato prices. Average margins
for the company are around 8.5%.
Also the company is looking for more direct distribution and removing the super stockist
mechanism of selling. the difference between Balaji and Prataap margins are of around 6%
which is due to the stockist and super stockist presence in Prataap and not so in Balaji
brand.
The company will gradually move towards direct distribution with distributors and dealers
and then to retailers and will remove the stockist and super stockists.
Currently the company sales its products through 1.7 M outlets and 3500 distributors.
Rings account for around 33% of total sales. Ring had a very bad FY 19, and sales are down
by around 20%. Hundreds of new competitors have emerged in this segment where toy is
incorporated in packets of Rs 5 and getting sold. However things have now stabilised and
Rings will grow steadily on this lower base. At one point in time Rings sales was around
40% of total sales.
Potato chips now account for around 33% of total sales and is growing strongly. Grew by
around 15-16% in FY 19 and is expected to continue to grow strongly.
The Namkeen section including extruded snacks accounts for the rest. Huge scope exists in
this segment.
The Avadh brand acquired in Nov 18 for Rs 148 crore. Avadh is 3rd largest packaged food
brand in Gujarat and its sales for 6 months ended FY 19 stood at around Rs 78 crore with
margin of around 6%. Huge scope exists in leveraging network, products, skus between
Avadh and Prataap.
Company's products have high penetration in West and East India and have relatively low
penetration in North and South India. It is increasing its reach by increasing its outsourcing
model whereby instead of having own land and building and factory, it has a dedicated
convertor to whom the company will give raw material and the convertor will invest and get
his conversion charges for the finished goods that he produces.
Currently around 88% of total sales of the company are from in house manufacturing and
rest are from such contract manufacturing where the company pays conversion charges.
The company has around 6.5% market share in overall snacks market in India both
organised and unorganised put together.
Around 75% of company's sales come from general trade (Kiranawala).
The company has spent around Rs 50 crore and plans to set up more outsourcing
manufacturing facilities. Further the company has expanded Avadh facilities wherein it can
double the production. All these will get commercialized from May 19 onwards.
Further the company will commercialize the 3rd plant of cookie cake product which is a huge
success. The 3rd plant has much higher capacity and will meet the growing demand.
So FY 20 there will be significant benefits of higher volumes, new products, better reach and
availability, better leverage and sale of high margin products.
Overall margins can improve and aiming to reach to around 10% going forward.
TCS : In FY19, the company crossed a major

milestone by achieving US$20bn+ in revenues
Apr 13, 2019 11:59 AM | Source: capitalmarket.com
TCS held its conference call on 12 April 2019 to discuss results and future.
The company's CEO and MD Rajesh Gopinathan addressed the call.
Highlights of the call:
Q4 saw the strongest revenue growth that it had in the last fifteen quarters.
Its order book is bigger than in the prior three quarters, and the deal pipeline is also robust.
Despite macro uncertainties ahead, its strong exit positions it very well for the new fiscal.
Q4 saw revenue of Rs 38,010 crore, ,up 18.5% yoy and +2.4% QoQ in CC terms.
TCS clocked revenue growth of 2.4% qoq and 12.7% yoy in CC terms for Q4FY19.
Q4 digital revenue stood at 31% of sales and it gew 46.4% yoy.
The company's digital segment contributed 31% to its total sales during the March quarter
and maintained the trend of gradual growth in each quarter of the last financial year.
Full spectrum digital transformation capabilities and thought leadership is what is driving the
strong demand for its services, and making it the preferred innovation and transformation
partner to customers.
In FY19, the company crossed a major milestone by achieving US$20bn+ in revenues.
Revenues for FY19 stood at $20.91bn – up 9.6% yoy in USD terms and 11.4% in CC terms.
The company reported TCV signings of about $ 6.2 bn for the quarter, taking the count for
the year to ~ $ 21.9 bn.
Ebit margin slipped to 25.1% in Q4, against 25.6% in Q3 and 26.5% in Q2, coming at the
lowest in three quarters.
Margin was down 50 bps qoq on a reported basis, but remained largely in line, adjusting for
a one-time charge of about Rs 220 crore toward the payment for an electoral trust.
Double digit growth, higher quality of the incremental business, and best-in-class execution
capabilities helped it expand OPM yoy.
Its foresight in investing very early on in building digital skills and transformational
capabilities has not only helped it gain market share, but has also resulted in its very
resilient, industry-leading margin today.
ETR stood at ~24% for the quarter.
Cash generation was healthy, with operating cash flow at around 22% of revenues and
101% of net income in FY19.
Cash and cash equivalents stood at Rs 496 bn vs. Rs 477 bn at the end of Q4FY19.
UK and Europe continues its good growth momentum with 22% and 18% yoy growth in
FY19 in CC terms.
Growth in North America was 8.3% yoy in FY19. This was was supported by the recovery in
Retail and BFSI.
It added 6 clients over last year in 100 mn+ clients list.
The company maintained it positive outlook given its positive inputs from its client
conversation on IT spends across verticals.
TCS is confident that its differentiated service offerings will continue to command strong
demand in the marketplace going forward as well.
Due to expected growth sustenance and expectations of better pricing realizations for its
business mix, TCS believes it has good chance to achieve its aspirational OPM band of
26-28%.
For the medium-term, TCS continues to remain positive on Retail as it believes the changes
in the business model would be permanent and thus it would keep evolving its offerings to
remain relevant to the current need. Currently, it has been driving a structural shift-led
demand as Retail has moved from store to web to social media.
Business 4.0 framework has now become the de facto model for enterprises looking to
embrace new technology-enabled business models, pursue new revenue streams or deliver
superior customer experiences.
Its business 4.0 framework is resonating well with clients as 1) technology reliance is
increasing and thus is a major long-term growth driver; 2) clients are spending on
Innovation, i.e., using IOT/Analytics/ML to enhance their customer experience and increase
differentiation.
Its focus on agile and Machine First delivery model (MFDM) is generating good demand for
its services.
TCS remains confident on its outlook on a broad-based-basis in BFSI vertical. For BFSI, it is
confident on a strong FY20 as it ended FY 2019 on multi-quarter high yoy growth of 11.6%
in CC terms.
The demand in BFSI has been strong across sub-segment and markets.
In BFSI the company faces challenges in a couple of large European banks. But it is
confident on overall BFSI revenues from the region given its wide presence and relatively
better preparedness and reach in this region.
Within BFSI, revenues/performance from capital markets continues to remain volatile.
However, strong performance from the Insurance space is driving the overall optimism in
the BFSI vertical.
It had net addition: 6,356 employees in Q4.
The management was satisfied to a year marked by steady growth acceleration and order
book expansion every quarter.
The expanding scale and scope of its cognitive business operations engagements have been
central to its growth.
All major markets showed strong growth momentum. Growth was led by UK with 21.3%
growth and Europe with 17.5% growth.
Other markets continued to grow well: North America grew 9.9%) Asia Pacific grew 11.5%,
India grew 11.3% and Latin America grew 16.2%.
Revenue growth continued to accelerate in BFSI, crossing over into double digits (it grew
11.6% vs 8.6% in 03).
Growth was broad-based, with most verticals showing strong growth: Life Sciences &
Healthcare grew 18.2%, Energy & Utilities grew 11.3%, Communications & Media grew
10%, Retail & CPG grew 9.9% and Manufacturing grew 9.2%.
With robust net addition of 29,287 employees during the year, total employee strength at
the end of FY 19 stood at 424,285 on a consolidated basis.
Infosys : Guidance for fiscal 2020 is revenue
growth of 7.5% to 9.5% in constant currency
and margin in the range between 21% and 23%
Infosys held its conference call on 12 April 2019 to discuss results and future.
Salil S. Parekh Chief Executive Officer and Managing Director, Pravin Rao Chief Operating
Officer and Sandeep Mahindroo - Financial Controller and Head IR addressed the call.
The management is pleased with the progress the company made during fiscal 2019.
Its increased client relevance led to strong full year growth of 9% and further acceleration in
Q4 of 11.7%.
Sequential growth constant currency was 2.1% in the recently weak quarter.
Clients see the value of its digital portfolio, driving full year growth of digital to 34% and
quarter four to 41%. It ended the year with 34%, just over third of business revenue
coming from digital.
Its Digital banking platform is gaining increased traction in the market with further new
major global logos adopting the digital platform in fiscal 2019.
Its large deal wins were also impressive at $1.6 billion for the quarter and $6.3 billion for
the full year.
Its engagement with large clients continues to grow.
Its number of clients with $100 million of revenue increased to 25 from 20 at this time last
year.
Its planned investments in sales and in building business model resilience via localization in
key markets that forms a strategic part of transformation program are in the results.
Margin for the full year was 22.8% and for Q4 was at 21.5%.
Going forward, the management sees the ability to drive operational efficiency more and
more through its business.
Overall, the management now sees business as being more stable and better positioned to
benefit from the shift to digital in the years to come.
Its guidance for fiscal 2020 is revenue growth of 7.5% to 9.5% in constant currency and
margin in the range between 21% and 23%.
While margin band reflects the already made investments in various initiatives, it is also
focused on deploying various cost optimization levers like onsite to offshore mix, utilization,
onsite permit mix, automation and better digital pricing for its differentiated offerings.
Q4 marked the second consecutive quarter of double-digit constant currency growth helped
by ramp-up of building in the recent quarters.
Q4 segment Retail, Energy, Utility, Resources & Services, Manufacturing and Hi Tech
grossed double-digit growth in constant currency in FY2019.
Digital revenues grossed $1 billion in quarterly run rate and now constitutes one third of
total portfolio at 33.8%.
In Q4, it won 13 large deals totaling about $1.6 billion. Three of these deals were in
Financial Services, Manufacturing and Life Sciences, two in Hi Tech and one is in Retail and
other segment.
Geography wise seven were from America, five from Europe and one from India.
Total large deal wins in FY2019 was about $6.3 billion, more than double of FY2018.
The share of new deals with overall large deal TCV was 3.4 times compared to FY2018
levels.
It is giving compensation increase for employees as per normal time line. 85% of workforce
will get compensation increase of approximately 6% offshore and 1.5% onsite effective April
1, with the increases for outperforming employees being higher than average. Balance 15%
of the workforce will get compensation increases in the subsequent quarter.
Q4 gross addition of employees was about 14,200 in quarter four and over 70,000 for
FY2019. We are in the final stages of our localization effort with over 9,100 American
workers hired since March 2019 vis-à-vis our target of 10,000.
Its approach to U.S. hiring is very differentiated. Its deep investments and inclusive
approach by engaging with local colleges, partnering with universities and the
administration in the U.S. is making us a vital part of local ecosystem.
It has announced localization plans in Australia already and is planning to expand that to
Europe as well.
Attrition has ticked up slightly by 0.8% to 18.3% at stand-alone level and to 20.4% at the
group level. It is continuing with recent focus and initiative towards bringing it down.
It is seeing some macro concerns in certain pockets of business, including new clients from
U.S. Financial Services, Europe Manufacturing and Healthcare and Life Sciences vertical
globally. Clients are monitoring the global situation closely, and any negative development
may lead to curtail in spend. However, this also opens up opportunity for the company to
help clients in accelerating their transformation agenda and further strengthening
relationship. Its deal pipeline remains strong across verticals with a good share of digital
and large deals.
Financial Services vertical declined sequentially most recently this quarter due to some U.S.
clients seeing earlier business driven by the budget constraints. However, deal wins in
Europe enabled it to have growth in Q4. Also the company has a very strong Q3 and Q4 exit
rate. As it entered FY2019, in quarter one, its y-o-y growth was less than 5%, but as it exit
Q4, its 8.5%, which gives it good comfort on the prospects of Financial Services going
forward.
Its scale in other digital and integrated software platform services category is resonating
extremely well. Customer acquisition, digital banking, cybersecurity and lending are
expected to be key areas of strategic focus and spending in the current year. Its strategy
will help in strengthening mortgages servicing capabilities through digital platforms and
enhance presence in Europe.
In Retail, it continues to see significant pickup in digital, cloud, analytics, modernization and
M&A-related business and IT integration. B2B industry is seeing higher consolidation as
clients are becoming more price competitive. Infosys sees more demand for post-merger
integration capabilities.
Growth in Communication segment was as expected due to ramp-up in previous buildings.
Despite the sectoral issues affecting this sector, it expects steady performance in fiscal
2020. Ongoing momentum in the industry is leading to integration opportunities.
Energy, Utility, Resources & Services growth were supported mainly by utility segment,
which received strong demand due to investments in the pipeline modernization initiative
and digitalization of legacy stacks. Strong growth continued in Manufacturing segment,
despite some concerns amongst automotive and industrial manufacturing plants due to
macro issues, especially in Europe.
Aerospace and defense clients are enjoying good order book and the company is focusing on
core areas such as engineering, system integration, MRO and the ERP back book. Hi-Tech
vertical had a strong performance with increased client spend from past buildings, roughly
focused in areas like automation, analytics, VPN, cloud area and ERP implementation.
Performance of Life Sciences segment remains muted as clients are facing slowing growth
and increased cost pressures.
In digital, it sees strong interest for its offerings in cloud area, in data and analytics, in IoT
and in the areas of experience. Digital demand remains strong across regions and especially
in client segments like telco, energy, utilities, retail, insurance and manufacturing.
Clients are investing in modernization for digital transformation, artificial intelligence,
automation and automation to drive new service customer value and to future-proof their
business against economic downturns as well as competition. Its focus of both on
investments and other digital is helping win more clients' mind share, which is evident in the
superior growth profile of this portfolio.
Q4 saw highest constant currency growth in Q4 in the last nine years. This is second
consecutive quarter of double-digit growth, which is also its highest year-on-year growth in
constant currency in the last 11 quarters.
OPM in Q4 was 21.5%, compared to 22.6% in Q3. In Q4, OPM was impacted by 70 bps on
account of lower utilization, partly due to impact of ramp-up of recently won large deals, 30
bps due to continuous strategic investment in sales and localization and 30 bps due to rupee
appreciation. This was partly offset by lower bad debt of 40 bps and other one-off in quarter
three, which helped margin by another 30 bps, resulting in an overall 1.1% decline in Q4
operating margins.
Quarter four reflects a rupee appreciation of 1.7% on quarter average basis. However, the
company's effective hedging program ensured that it had its 50th consecutive quarter of
gains in non-operating income. It had a hedge book of $2.2 billion at the end of quarter
four.
Yield on other income was 7.91% in Q4 as compared to 7.81% in Q3.
DSO for the quarter improved to 66 days compared to 67 days in Q3 and similar level for
yoy.
Operating cash flow in quarter four was $ 583 million, and free cash flow was $ 467 million.
CapEx for the quarter was $ 116 million, an increase from prior quarters due to additional
capacity it created largely in U.S. events and overseas results. Hence, it expects CapEx to
remain at these elevated levels for FY2020 as well.
Effective tax rate for the quarter was 22.7% versus 29.7% in quarter three 2019. Tax rate
was lower on account of benefits received with the timing of advanced pricing agreement
with an overall fee reduction and relative to tax provision as a result of completion of
assessments in certain overseas jurisdiction. It expects the tax rate for FY2020 to be
between 27% to 28%.
Strong revenue performance through FY2019 led to 9% growth in constant currency, which
was the upper end of higher revised guidance of 8.5% to 9% and well above the 6% to 8%
that it provided at the start of the year.
Wipro : Growth trajectory will improve from Q2
on the back of strong order book and healthy
pipeline
Wipro held its conference call on 16 April 2019 to discuss the FY 2019 results and future.
Abidali Neemuchwala - Chief Executive Officer and Jatin Dalal - Senior Vice President and
Chief Financial Officer addressed the call.
Q4 revenues grew by 1.4% in reported terms and 1% in constant currency terms, which is
the midpoint of guidance range.
On a full year basis, saes grew 5.4% in constant currency terms. Through the year, it has
built on the momentum with the yoy growth improving consistently each quarter.
The management is also pleased with the recurring execution and focus on improved quality
of revenues, which have resulted in operating margin expansion of 1.8% for the full year.
Operating metrics have shown consistent improvement across the board including the
utilization, high off-shoring, higher percentage of work done by bots and moderation in
attrition rates.
For the quarter ending June 2019, Wipro expects Revenue from IT Services business to be
in the range of $2,046 million to $2,087 million. This translates to a sequential growth of
-1.0% to 1.0% excluding the impact of the divestment of Workday and Cornerstone On
Demand business which was concluded in the quarter ended March 2019.
Outlook is based on the following exchange rates: GBP/USD at 1.32, Euro/USD at 1.14,
AUD/USD at 0.71, USD/INR at 70.16 and USD/CAD at 1.33.
Q1 is a seasonally weak quarter for Wipro, which is reflected in the guidance.
The outlook also factors completion of certain large programs and in some spaces that it has
seen some delayed start up of fresh projects in spite of having a very strong order book
coming out of Q4.
The management is confident that growth trajectory will improve from Q2 on the back of
the strong order book as well as the healthy pipeline.
It is seeing continued momentum in banking and financial services and insurance, in the
consumer business unit, in the energy and utilities unit on a yoy basis in FY 2020.
The company will see an uptick in growth rates in communications and tech BU this year,
while health and manufacturing are likely to remain a bit choppy especially in the first half
of the year.
The demand environment in the global market is stable and there are abundant
opportunities in newer areas of digital and cloud and all the big bet areas that it talked
about.
Digital revenue growth continues to be strong. It grew 6.4% sequentially and accounts for
35% of revenue. In FY 2019, digital business grew 32.2% y-o-y.
On mining, in Q4 top 10 customers continued to post a strong performance and Wipro
added three new customers in the $75 million bucket in Q4.
On a full-year basis, top 10 clients grew 9.6% in reported terms on a yoy basis.
It continues to focus on automation and Wipro HOLMES is now deployed in over 350 clients.
The work done by bots, which was 6.7% of fixed price project last quarter, is now 11.3% in
Q4. And its fixed price mix has improved to 60%.
On localization, it continues to significantly invest in localization across all major markets. In
U.S., it reached 64% localization and now has a very well established campus hiring
program from the universities across U.S.
In Q4, Wipro completed a new investment in B-capital, an enterprise focused VC fund based
out of Los Angeles, taking the total number of investments to 18.
One of its portfolio companies Demisto was acquired at 5.5x the investment value making it
the first exit for Wipro ventures.
One of the most fundamental things about FY 2019 was the margin expansion of 1.8% that
almost entirely converted itself in the EPS growth, which was 18.6% for this fiscal. Finally
that also converted completely in cash because its net income to free cash flow was 100%.
It is going to give that back in form of the share buyback of Rs 10,500 crore at the share
price of 325.
It had a very stable ETR.
Hedge has remained almost at the same level, 2.65 billion as in Q4 and as in Q3. Exchange
rate has slightly come down from 71.66 to 70.28 in Q4 and that has given a minus 0.4% in
operating margin.
There is a line called other operating income which is a gain on sale of Workday business
which is sitting in the P&L. And then, there is another hit that it has taken on amortization,
acceleration of platform in HPS business which is of Rs 148 crore, which is sitting in cost of
goods sold.
The management sees a strong momentum. The company has been restructuring and
transforming business. It is also divesting some business. This has had slightly larger
impact on the legacy deterioration. On a net basis, the guidance does look slower. But if one
looks at the digital and cloud and its big bet areas, it is seeing quite good growth
For digital business, it cannot guide for future growth, but it is continues to have strong
momentum.
It is consciously making sure to be immune to the Q1 seasonality so that it can have more
robust growth through Q1.
Order booking momentum has remained robust, and it saw closer to double digit growth.
But at the same time, it has seen few instances where a deal that would have got signed in
Q4 has now got pushed to Q1. So, it's a little mixed environment. The order booking does
give comfort.
Revenue in business drives the impact on the margin. So, it will remain focused on getting
revenue momentum.
In Q1, it has the salary increased for the whole company and that will move a headwind as
it enters Q1.
Crisil : H2 CY 19 to be better than H1
The company held its AGM on 17 April 2019 and was addressed by Ashu Suyash MD
Key Highlights
Ratings delivered strong growth in CY 18 and also in Mar 19 quarter due to improved
market share and strong client engagement. Within Ratings, Coalition ratings led strong
growth due to new client addition and higher requirements of analytics.
In CY 18, overall bond issuance was lower due to increasing interest rates and other macro
conditions. Expects CY 19 to be a good year for bond issuance and capital market offerings.
Corporate bond issuance and securitisation market was strong in Mar 19 quarter.
Securitisation volume was very strong and grew by 80% YoY albeit on lower base of last
year. The growth remained muted for past 3 years and expects securitisation growth to
rebound strongly from here on.
The liquidity squeeze which was there in H2 FY 19, more or less stabilized by end of Mar 19.
However due to elections, some tightness is visible. Expects liquidity to ease off further as
year CY 19 moves on.
Focus on productivity and strong growth in high margin large corporate segment lead to
better margins.
Overall new clients, new product offerings and more analytical ratings led to better CY 18.
Expects ratings to continue to do well in CY 19 as well.
In research service division, the global risk analytics industry is seeing a decline in demand
for select risk offerings because of changing regulatory milestones for comprehensive capital
analysis and review as well as better preparedness across large banks. USA, EU and Asian
countries are seeing the changes in regulatory paradigm. Comprehensive analysis, stress
tests, international finance reporting standards, financial instrument derivatives etc are
some of the areas where regulations are changing for the better.
While this has led to decline in volumes in Mar 19 quarter, and some more de growth is
expected in June 19 quarter as well, the demand is expected to strongly rebound from July
19 onwards.
While this has impacted growth in the research segment, demand for credit risk and change
management services is increasing as clients emphasis their front office, risk and finance
platforms.
Also, with the changing regulatory milestones will bring in more complex and transparency
in overall international finance and banking transactions which in turn would require higher
analystics and in turn will mean more business for the company. So management is not
worried at the recent fall in research segment and continues to remain optimistic as the
year progresses.
Company would continue to invest in new products and expects the business momentum to
improve going forward.
Infrastructure advisory segment was affected in CY 18 due to additional provisions on
receivables. The company took a cautious call and prudently provided for all the foreseeable
losses in receivables in this segment. CY 19 should see better volumes and growth from
BFSI and infrastructure segment. New client addition in US and Middle East markets will
help in better volumes going forward.
Adverse currency movements, increasing cyber risks and disruptive technology environment
are some of the risks that the company has to deal with. Forex losses in Mar 19 compared
to forex gain in Mar 18 quarter impacted the bottom line in Mar 19 quarter.
Tax rates will be slightly lower due to lower tax rates in US.
Overall expects the H2 of CY 19 to be better than H1 as volumes improve and better
regulatory clarity emerges in international markets.
Company will continue to deliver on strong payout ratios going forward as well.
Tata Metaliks : Demand for DI Pipes in Q1 FY'20 is likely

to be muted
Tata Metaliks conducted a conference call to discuss the results for the quarter ended March
2019 and way forward. Mr. Sandeep Kumar MD, and Mr. Subhra Sengupta, CFO of the
company addressed the conference call.
Highlights of the Concall
Tata Metaliks recorded 8.7% increase in revenue from operations of Rs 594 crore in Q4FY19
compared to Q4FY18. OPM was down 250 bps to 13.6% leading 8% decrease in operating
profit to Rs 80.88 crore. PBT was down 14.3% to Rs 56.84 crore. PAT was up 17.7% to Rs
64.35 crore
For FY2019 Tata Metaliks recorded 15% increase in revenue from operations of Rs 2155.11
crore. OPM was down 50 bps leading a 10.8% increase in operating profit to Rs 307.23
crore. PBT was up 5.8% to Rs 212.98 crore. PAT was up 14.3% to Rs 181.89 crore.
The company achieved highest ever quarterly sale of DI pipe at 72002 tonne in Q4 FY'19 on
account of robust order pipeline and strong pull from water-related infrastructure projects.
This was 8% higher than Q3 FY'19 and 16% higher compared to Q4 FY'18. For FY19 DI pipe
sale was up 12.5% to Rs 235671 tonne.
Pig Iron (PI) volume in Q4 FY'19 was 13% higher at 69574 tonne than Q3 FY'19 but was
around 2% lower than Q4 FY'18.
Price realizations of both Pig Iron and DI pipe were however marginally lower in Q4 FY'19
compared to Q3 FY'19 by around 4% and 1% respectively as a result of slight softening of
prices of major raw materials.
Margins were lower during the quarter due to operational problems in one of the mini blast
furnaces.
The performance of both the blast furnaces has become more stable and with introduction
of Pulverised Coal Injection in these furnaces from Q4 FY'19, the company is looking
forward to improved performance of the Pig Iron Division in FY'20. Further PI segment will
get a boost with commissioning of oxygen plant by end of May 2019.
Demand for DI Pipes in Q1 FY'20 is likely to be muted owing to seasonal factors combined
with the ongoing national and state elections.
Outlook for PI market in Q1 FY'20 may not be very encouraging due to slow down in
automobile sector and oversupply in domestic market due to sluggish global PI market.
However price pressure on PI may see some relief on account of expected softening of raw
material prices.
RBL Bank : Expects to continue to improve margins and
return ratios
RBL Bank conducted a conference call on 18 April 2019 to discuss the financial performance
for quarter ended March 2019. Vishwavir Ahuja - MD&CEO of the bank addressed the call:
Highlights:
Bank has continued to consistently maintain its strong growth momentum and improvement
in operating metrics while maintaining robust asset quality. The bank continues to see
strong traction in customer acquisition and brand acceptance across all businesses.
The bank has posted strong 35% growth in advances with healthy 49% growth in
non-wholesale loan, while wholesale loans also moved up 25% end March 2019 over March
2018. The loan growth has been supported with all-round growth observed in all business
segments.
Within the loan book, the non- wholesale portfolio constituted about 44% of the loan
portfolio of the Bank end March 2019 up from 43% end December 2018.
The gross NPA ratio of the bank remained stable at 1.38%, while the restructured standard
assets portfolio has decreased to 0.04% and net NPA ratio to 0.69% end March 2019. The
net stressed assets of the Bank have declined to 0.73% end March 2019 from 0.86% end
March 2018.
The bank has substantially improved provisioning coverage ratio to 65.30% end March 2019
from 57.57% end March 2018.
The bank has posted healthy 33% growth in deposit with strong 37% increase in CASA
deposits. CASA ratio increased to 25.0% end March 2019 compared to 24.3% end March
2018.
The bank has continued to improve net interest margin higher to 4.23% in Q4FY2019,
driven by hike in MCLR rates and rising share of retail loans. The yield on wholesale loan
book increased 28 bps and non-wholesale loan book moved up 70 bps in Q4FY2019.
The bank has also witnessed increase in cost of deposits to 6.89% and cost funds to 6.76%
in Q4FY2019 from 6.83% and 6.63% in Q3FY2019.
As per the bank, the cost of deposits would remain steady ahead and its confident of further
improving margins, going forward.
The bank has continued to grow core fee income ahead of growth in its net interest income.
The retail fee income accounted for 70% of total fee income.
The bank has exhibited improvement in cost-to-income ratio to 51.3% in FY2019, while it
targets cost-to-income ratio of 50-52% for FY2020.
On the wholesale business front, the bank has maintained strong relationship generation
traction and continued to add new relationships. As per the bank, with the stabilizing
micro-economic conditions, the growth in the wholesale loan book would sustain.
On credit cards business front, the number of cards in force has jumped to 1.71 million end
March 2019 from 0.8 million end March 2018. The co-branded cards base of Bajaj Finance
has also touched 1 million end March 2019. The bank has readied its FY2020 business plan
for cards business and expects to double its cards base in next 18 months. The cards
business has achieved break even one and half year back, while it expects to improve ROAs
to industry level of 3.5-4% in cards business in next 18 months with the doubling of cards.
The cards loan book growth was inline with the industry level of 30-35%.
The bank has added 36 branches and 37 business correspondents in Q4FY2019. The bank is
targeting to add 60-80 branches in FY2020, raising its branch count to 400 branches by end
March 2020.
The bank has improved the share of direct sourcing to 55% for microfinance loans and 95%
for SME loans.
The GNPA ratio of microfinance loan has declined to 0.64% end March 2019, while the bank
has made complete provision for microfinance loan portfolio impacted due to
demonetization.
The GNPA for LAP stands at 0.72% and cards business at 1% end March 2019.
The NPA divergence for the bank in FY2018 was negligible closer to nil.
The fresh slippages of loans stood at Rs 206 crore with major contribution from agriculture
and cards business (one-third of total slippages) in Q4FY2019.
The asset quality of the agriculture loan book of the bank was impacted loan waivers, while
the bank expects the NPAs in the agriculture loan book to have peaked at end March 2019
and expects to maintain stable asset quality ahead.
The bank is maintaining close watch on its asset quality and expects further improvement in
its overall asset quality, going forward.
The bank also expects to continue improve margins and return ratio.
The bank performance has been in line with Planning Cycle 2020 which is coming close to
end, while it would set goals for next planning cycle in net few quarters. The focus of the
bank for next planning cycle would be on maintaining strong growth momentum, greater
operating leverage reflecting in improving returns, invest in distribution, raise retail loan
contribution to 50% and better capital utilization. The financial inclusion, cards and business
lending would be core part of retail business.
The bank aims to sustain loan growth of above 30% and improve RoAs to 1.7-1.8% and
RoE to 16-18% under next planning cycle.
DCB Bank : Aims to improve RoAs to 1.25-1.3% and RoEs to

15-16% in next two-three years
DCB Bank conducted a concall on 18 April 2019 to discuss financial performance for the
quarter ended March 2019. Murali Natrajan - MD and CEO of the bank addressed the call:
Highlights:
The bank has continued to guide at doubling balance sheet in three to three-and-half years.
The overall loan book of the bank has increased 16% to Rs 23568 crore, driven by healthy
21% growth in non-corporate loan book which is expected to be sustained ahead. The bank
has witnessed dip in corporate loan book share to 13% of total loans end March 2019 from
17% end March 2018.
The bank is strongly focusing on improving cost-to-income ratio and asset quality.
The bank has improved provision coverage ratio to 56% and including floating provisions to
80% end March 2019.
With strong recoveries in securities receipts, the bank has further reduced outstanding
securities receipts to Rs 38 crore end March 2019 from Rs 48 crore end December 2018.
The fresh slippages of loans stood at 98.5 crore in Q4FY2019 which is well spread across
segment. The fresh slippage included one corporate account which is referred to NCLT and
its expected to be resolved in next two quarters.
The bank does not have any major concern over its asset quality. The bank has recorded
strong recoveries of NPAs in FY2019 with the support of strong in-house team of 500
collection staff.
The bank is strongly focusing on improving fee income. The income from sale of priority
sector lending certificates has jumped to Rs 13 crore in Q4FY2019 and Rs 28 crore in
FY2019.
The NPA provisions stood at Rs 36 crore, floating provisions at Rs 7 crore and investment
provisions at Rs 1 crore in Q4FY2019.
The employee count of the bank increased to 6134 employees end March 2019 from 5934
employees end December 2018.
The bank guides at adding 15-20 new branches in FY2020.
The bank is focusing on better utilization of capital and does next to raise fresh capital in
next nine months.
The bank has achieved guidance for Q4FY2019 provided three years back. Going forward,
the bank would be focusing on maintaining strong loan growth, improving operating
efficiency and generating more fee income to further improve RoEs.
The bank aims to improve RoAs to 1.25-1.3% and RoEs to 15-16% in next two-three years.
The bank proposes to improve cost to average asset ratio below 2% in next two-three
years.
The bank sees further room to improve staff efficiency, while targeting to raise business per
employee to Rs 11 crore from existing Rs 8 crore.
The bank expects to maintain net interest margin at 3.70-3.75% in FY2020.
Alicon Castalloy : Enhanced product mix drove

improvement in EBITDA margins which are at
all-time high.
Alicon Castalloy held its conference call on 20 April 2019 to discuss its results and future.
Vimal Gupta Group CFO of the company addressed the call.
Highlights of the call
Alicon Castalloy offers end-to-end solutions spanning the entire spectrum of aluminum
casting needs across multiple user industries
Enkei Corporation is a leading Japanese motorcycle and passenger car wheel manufacturer
with 70+ years of experience.
Alicon Castalloy is largest Foundry in India offering frugal engineering solutions with 50+
years of track record.
It operates one of the largest aluminium foundries in India and has developed a robust and
innovative product pipeline, spanning 16 segments.
It serves diversified marquee customer base across sectors such as automobiles,
infrastructure, aerospace, energy, agriculture, defence and healthcare.
The management was pleased with the results.
In Q4 total Income increased 7% to Rs 317.41 crore. PAT grew 24% to Rs 15.89 crore.
In FY 2019 total Income increased 17% to Rs 1192.05 crore. PAT grew 37% to Rs 38.68
crore.
80% of sales were to the domestic market and the rest were exports plus sales from
subsidiaries.
Sentiments were impacted in H2 in rural segments.
Moderate growth has led to inventory buildup.
In FY 2019 exports grew 25% and domestic sales grew 14% with improved client metrics.
Enhanced product mix drove improvement in EBITDA margins which are at all-time high.
This robust performance was achieved despite challenging demand conditions and a cyclical
downtrend in the domestic auto industry.
Its efforts to diversify the base of customers and industries served have yielded results as
export revenues grew 25% in FY19.
Non-auto revenues registered healthy growth with improved client metrics.
The company has made progress on strategic plans and initiatives. In the Auto segment, it
has enhanced the proportion of innovation based products in the product mix enabling it to
report improved margins.
In the non-auto segment, offerings to sectors like Defense, Aeronautical, Healthcare and
Power are gaining traction.
The company evaluates and expands product suite on an ongoing basis to align offerings
with changing technologies and emerging trends.
The management is confident of sustaining growth trajectory by leveraging comprehensive
product portfolio, diverse customer base, depth of innovation & R&Das well as global
operations.
Non auto segment continue to show good momentum. It has developed products for
Defence, healthcare and Power which are doing well.
It has healthy pipeline of orders.
The company has expanded bouquet of products in to serve clients in the global and
domestic markets.
Due to subdued environment it has postponed its greenfield expansion in Pune which was to
take place in FY 20.
In FY 2019 the company strengthened its client base and added new clients across product
basket.
Indian Auto industry is inching towards B6 and the company has already supplied B 6
products in the developing markets.
In Q4 of 2020 it anticipates significant shift in volumes from BS 4 to BS 6.
The company has already designed several BS 6 products which are in place and the
company is reaching out to clients for the same.
In FY 2019, it introduced light products (reduced weight) in non auto segment.
Indian market is steadily witnessing pick up in non auto business.
The company is on track to increase contribution from non auto segment to 12% (from
current 11%) by 2022 on growing sales.
Cash and cash equivalent stood at Rs 12.4 crore as on FY 2019. Net debt stood at Rs 268.2
crore. Debt to equity ratio stood at 0.9.
It has healthy working capital cycle.
The company is pursuing opportunities from the emerging e-mobility focus in order to be at
the forefront of industry trends as it strives to firmly establish Alicon Castalloy as the
globally preferred supplier for alloy casting solutions"
In FY16, Alicon unveiled its vision G5 2021-22, which spells out the Company's ambition to
be among the Top 5 global foundries by FY2021-22. It still stands by the vision.
Accordingly, revenues are projected to increase to Rs 2000 crore+ with majority coming
from domestic business.
HDFC Bank : NIM improved mainly due to lower

cost of funds
HDFC Bank conducted a conference call on 20 April 2019 to discuss the results and future.
Srinivasn Vaidhyanathan Deputy CFO addressed the call
HDFC Bank registered a 24% rise in Interest income to Rs 26333.25 crore in the quarter
ended March 2019. A 24% rise in interest expenses to Rs 13243.76 crore saw net interest
income (NII) grow 23% to Rs 13089.49 crore.
Provision and contingencies grew 23% to Rs 1889.22 crore after which PBT grew 23% to Rs
9854.38 crore.
Net profit increased 23% to Rs 5885.12 crore.
In FY 2019, HDFC Bank registered saw net interest income (NII) grow 20% to Rs 48243.22
crore. Other income grew 16% to Rs 17625.87 crore, which took net total income up 199%
to Rs 65869.09 crore. Provision and contingencies grew 27% to Rs 7550.08 crore after
which PBT grew 21% to Rs 32199.64 crore. Net profit increased 21% to Rs 21078.14 crore.
Total balance sheet size asof March 2019 was Rs1,244,541 crore against Rs1,063,934 crore
as of March 2018.
In Q4 core fee income grew by just 11% to Rs3690 crore, mainly due to a sharp decline in
mutual fund distribution fees and a slowdown in disbursements in the unsecured
book.Treasury gain of Rs230 crore in the quarter (against Rs22 crore) led to an acceleration
in other income growth to 15% to Rs 4871.21 crore.
Provisions and contingencies for the quarter ended March 2019 were
Rs1,889.2crore(consisting of specific loan loss provisions Rs1,431.2crore, general provisions
Rs191.2 crore andotherprovisions Rs266.9 crore)as against Rs1,541.1crore(consisting of
specific loan loss provisions Rs1,132.5crore, general provisions Rs153.4 crorea nd other
provisions Rs255.3 crore)for the quarter ended March 2018.
Total advances as of March, 2019were Rs819,401 crore, up 24.5%.
Domestic advances increased 24.6% yoy,
In Q4 loan growth was driven by the corporate segment, while retail segment growth
slowed down.
Retail loan book growth slowed to 19% in 4Q, largely due to a moderation in the vehicle
loan segment (ex-CV) and base effect in the unsecured loan segment.
Wholesale loan growth picked up, largely driven by short-term funding and NCLT resolution
cases.
Retail growth in the unsecured portfolio slowed down, mainly due to the base effect as it
had grown strongly over the last two years and also due to the slowdown in disbursements
of some products as the bank looked to monitor this portfolio.
The bank has better pricing/yields on working capital loans.
The bank witnessed slowdown in demand for 4-wheelers, as third-party insurance cost has
gone up. Thus, it is seeing some slowdown in disbursements in this portfolio.
The volume slowdown in cars is here to stay for some more time.
It purchased home loans to the tune of Rs1920 crore from HDFC but the book declined 1%
qoq.
Deposit growth slowed to 17% on yoy basis and 8% on qoq basis on a high base.
CASA growth was healthy at 13% yoy and 12%qoq.
NIM improved 10 basis points both yoy and qoq to a 7-quarter high of 4.4%, mainly due to
lower cost of funds.
Fresh slippages stood at Rs3600 crore and stood at 1.7% of loans. This led to a stable GNPA
at 1.36%.
PCR improved to 71% qoq.
The bank remains wary about farm-loan waivers, particularly given some reports of sub-par
monsoon and elections, in view of which it has made adequate contingent provisions.
The bank has long maintained its stance that the net return on farm loans adjusted for NPAs
is still better than buying low-return RIDF bonds for PSL.
The current MD and CEO is ready to continue beyond 2020, if the regulatory age bar is
raised to 75 years from 70 now.
The bank's continuing focus on deposits helped in the maintenance of a healthy liquidity
coverage ratio at 118%, well above the regulatory requirement
The core cost-to-income ratio for the quarter was at 40.1% as against 40.6%yoy.
The bank's capital adequacy ratio improved to 17.1% as on March 2019, from 14.8% a year
ago.
It's capital conservation buffer was at 1.875%. The bank also met the additional
requirement of 0.15% on account of being identified as Domestically Systematic Important
Bank (D-SIB).
As of March 2019, the Bank's distribution network was at5,103 banking outlets and
13,160ATMsacross2,748 cities/ towns as against 4,787 banking outlets and 12,635 ATMs
across 2,691 cities/ towns as of March 2018.
Of the total banking outlets,53%are in semi-urban and rural areas.Number of employees
were at 98,061 as of March 2019(against 88,253 as of March 2018).
In wholesale lending, the bank is focusing on working capital loans, while PSBs are focusing
on term lending.
In Q4 upgrades stood at Rs1000 crore, write-offs were Rs1100 crore and recoveries were
Rs1200 crore. In FY19 upgrades stood at Rs3250 crore, write-offs stood at Rs4600 crore
and recoveries were at Rs3900 crore.
The bank has taken board approval to raise Rs 50,000 through AT-1, Tier-2 and infra bonds.
It has sufficient capital for growth over the next few quarters; it may look to raise capital
over the next 12-18 months.
Asset Quality
Gross NPA stood at Rs 11224.16 crore as of March 2019 quarter against Rs 10902.86 crore
in December 2018 quarter and Rs 8606.97 crore as of March 2018 quarter.
In percentage terms, %GNPA stood at 1.38% as of March 2019 quarter against 1.38% in
December 2018 quarter and 1.30% as of March 2018 quarter.
Net NPA stood at Rs 3214.52 crore as of March 2019 quarter against Rs 3301.54 crore in
December 2018 quarter and Rs 2601.02 crore as of March 2018 quarter.
In percentage terms, %NNPA stood at 0.39% as of March 2019 quarter against 0.42% in
December 2018 quarter and 0.40% as of March 2018 quarter.
Lux Industries : In 2020 the company hopes to

achieve revenue of Rs 1,500 crore
Lux Industries held its conference call on 23 April 2019.

Ajay Patodia CFO of the company addressed the call.
Lux Industries is one of the largest players in the hosiery business having a market share of
around 20% of the organised industry.
Lux Industries has been in the forefront creating milestones within the hosiery industry and
taking the brands across national and international borders by identifying such market
needs and deliver products which are widely accepted.
Its products include Men's, Women's & Kids Innerwear, Winterwear, Socks & Slacks for
Women in varied colours and designs.
It has around 5,000 SKU's under various Brands and Sub Brands of LUX.
It focuses on growing exclusive retail outlets to provide seamless buying experience.
The company's products are available in around 4,50,000 retail points spread across India.
LUX has a presence across the globe with exports to 47 countries.
The management was very pleased to end FY19 on a positive note. In FY 2019 total
revenue stood at Rs 1218 crore, up 13%. EBITDA and PAT were at Rs 190 crore and Rs 101
crore respectively.
PAT Margins improve 110 basis points to 8.3%.
For FY 2018-19, export contribution to revenue was 11%.
Q4 gross margins were down due to higher discounts given to dealers to improve the cash
flow. Also input costs were higher in Q4, which has now settled down. Gross margin is
expected to improve going forward.
Q4 other income consists of Rs 4 crore due to valuation of shares in a company, Rs 4 crore
forex gains an Rs 1 crore received as insurance proceeds.
The company increased the number of countries it has exported from 22 to 47 over the past
5 years.
The company expects exports to increase from the current Rs 136 crore in FY19 to reach Rs
175 crore in FY20.
Focus has been to reduce working capital requirements.
For FY19, it has been able to significantly improve operating cash flows. Operating Cash
Flows for FY19 turned positive to Rs 185 crore. Going forward, aim is to reduce the working
capital cycle further.
With mounting need for quality and comfort along with fashion in the innerwear industry,
there has been a major shift in the industry and has helped the organised innerwear
segment to gain its market share from the unorganised players.
Lux Industries continues to expand its portfolio into high value and niche segments.
Lux Cozi is one of the strongest and fastest growing men's innerwear brands (economy and
mid segment)
LUX has always focused on constantly launching new products to cater the change in
consumer demands.
During the quarter it launched India's first scented vest range under brand Lux Cozi.
To fight the rising mercury during summers the refreshing scented vests will be a landmark
product in the men's innerwear category.
By being the pioneer to launch scented vests in India, Lux will be able to grab the market
share.
It intends to launch many more products in the coming months that will add to its market
leadership.
With this new range of vests, Lux Cozi is taking a phenomenal leap in the process of
creating value-based products keeping in mind the essential necessity and aspirational style
quotient of India.
The company has been continuously working on improving financial and operational
efficiencies.
Growth in profitability is mainly attributable to changing product mix, optimum capacity
utilisation and focussed marketing and brand building initiatives.
It expects premium products to grow at a CAGR of 30% in the next 2-3 years. Premium en
products are growing faster than the economy products.
100% of its products are manufactured in-house with zero outsourcing
It has invested extensively in manufacturing integration and scale with the objective to
reduce costs.
It has strong presence in Western & Central India with highest absolute sales from Madhya
Pradesh, U. P. and Uttarakhand.
The company is creating an online presence through e-commerce websites, enhancing
access and image.
Its agreement with CSE Consultancy LLP, licence owner of brand One8 with its premium
brand CNN to manufacture and market its products globally will help Lux increase share in
the premium portfolio. During the current quarter it saw a good traction for the product in
the market.
LUX Industries will be manufacturing and marketing a unique collection of socks, innerwear
and sleepwear for One8, globally
With One8, the company aims to disrupt the premium innerwear segment through
innovative product offerings. It feels extremely confident its distribution and resource
strength, coupled with the youth appeal of Virat Kohli will make One8 the most preferred
brand in the premium category
The company is expanding with a state-of-the-art 12 lakh sq. ft (approx) manufacturing
facility in Dankuni, West Bengal. Cost of the project is Rs 83 across 11.48 acres on the
outskirts of Kolkata. It has the capacity to produce 5 lakh units of finished products a day.
Phase-II expansion will double the production capacity over the next 3-4 years.
On the merger front, the company is in the process of evaluating various options to
complete the merger o fJ.M. Hosiery & Co. Ltd. and Ebell Fashions Pvt. Ltd. with Lux
Industries and expect it to be completed as soon as possible after meeting all the regulatory
requirements and processes.
In 2020 the company hopes to achieve revenue of Rs 1,500 crore.
In 2020 it hopes to improve EBITDA margin by 100 to 150 basis points.
The company hopes to constantly add new and innovative products for gaining significant
market share.
It hopes to capture market share in various other countries in the world to increase export
contribution.
TRF : Continue to explore options for

restructuring of subsidiaries
TRF hosted a conference call on April 23, 2019 to discuss the performance of the company
for the quarter and fiscal ended March 31, 2019. In the conference call the company was
represented by Sumit Shubhadarshan, Managing Director; Shaktishree Das, Chief Financial
Officer and Subhashish Datta, Company Secretary & Chief Commercial.
Key takeaways of the call
While stringent financial qualification criteria has been impediment for the Company to
secure external orders, related party transaction is expected to help the Company to secure
sufficient orders from Tata Steel.
The related party transaction (RPT) approved by Shareholders during the Extraordinary
General Meeting held on March 18, 2019 for an amount of up to Rs 540 crore for the
financial year 2019-20 will help Company to achieve its objectives for the year.
Going forward, the company plans to expedite closure of ongoing projects, focus on
execution of captive orders, pursue growth in life cycle and structural fabrication business,
improve operational efficiencies, explore options for restructuring of subsidiaries, optimize
working capital and build human resource capability.
During fiscal 2018-19, the company had divested one of its step down Subsidiaries i.e., York
Transport Equipment (Asia). Subsequently, TRF Singapore has repatriated fund of Rs
135.66 crore through capital reduction to the Company.
Having divested York Transport in FY19, the company is exploring options of restructuring
other two subsidiaries DRL Group & HRIL Group this fiscal. If monetization opportunity is
available in case of DRL & HRIL, the company will surely cash out. In FY19, DLT and HRIL
registered a sales turnover of Rs 71 crore (up from Rs 53 crore in FY18) and Rs 41 crore (up
from Rs 35 crore in FY18) respectively with a PAT of Rs 20 crore (up from Rs 8 crore in
FY18) and Rs 5 crore (down from Rs 7 crore in FY18).
Project order backlog as end of March 31, 2019 was Rs 400 crore and of which Tata Group
orders were Rs 200 crore. The negative legacy orders outstanding are about RS 200 crore
and this is largely the orders of NTPC and BHEL. The company though has provided for cost
escalation on these negative EPC projects some of it may occur this fiscal on remaining
negative order backlog.
Project order book update - The Company has achieved contract closure of NTPC Mouda.
Similarly NTPC Vindyachal order was also closed in FY19. The Company has also completed
Load trial runs for Wagon Tippler at NPGC Nabinagar to operationalize Coal feeding. NTPC
Barh will be closed this fiscal. The Company has successfully completed the Performance
Guarantee test at NTPC Barh Project, obtained operational acceptance and partial COF
(Completion of Facilities) Certificate. NTPC Nabinagar first unit will be pursued for closure
these fiscal and remaining two units will spill over to next fiscal.
The company though put more focus on execution of captive orders; it will continue to
interact with external clients for lifecycle project orders.
During the year, the Company reduced the short term borrowings by Rs 116 crore to Rs 153
crore from Rs 269 crore in previous year while long term borrowings were reduced by Rs 68
crore to Rs 34 crore from Rs 102 crore in previous year. Total creditors were reduced from
Rs 299 crore as on March 31, 2018 to Rs 246 crore as on March 31, 2019.
The outstanding debtors were lowered to Rs 455 crore as on March 31, 2019 from Rs 474
crore March 31, 2018. Most of these debtors are from public sector undertakings. The
company has adequately provided for debtors outstanding from companies referred to
NCLT.
The Company has been able to collect nearly Rs 34 crore in retention money against
existing major projects this year.
The Company has also been able to substantially reduce its overall Bank Guarantee
exposure to Rs 326 crore as of March 31, 2019 from Rs 534 crore as of March 31, 2018.
The Endeavour of the company is to expand turnover. The area that the company to focus
such as Electro mechanical jobs, structural fabrication etc has huge growth potential.
The Shareholders of the Company, at the Extraordinary General Meeting held on March 18,
2019, approved the issuance of 25 crore 12.5% Non-Convertible Redeemable Preference
shares on private placement basis to Tata Steel at par value of Rs 10 per share for
repayment of indebtness of the company. The infusion of Rs 250 crore by Tata Steel
towards share application money was made on March 22, 2019.
On a Consolidated basis, the Company recorded a turnover of Rs 349.20 crore for the
Financial Year 2018-19 against Rs 441.78 crore for the Financial Year 2017-18. The
Company incurred loss after tax of Rs 34.86 crore during the year ended March 31, 2019
against Rs 134.11 crore for the Financial Year 2017-18. The Company recorded a profit on
sale of York Transport Equipment (Asia) Pte Limited at Rs 74.42 crore.
On a Standalone basis, the Company recorded a turnover of Rs 237.06 crore for the
Financial Year 2018-19 against Rs 353.95 crore for the Financial Year 2017-18. The
Company incurred loss after tax of Rs 105.57 crore during the year ended March 31, 2019
against Rs 145.98 crore for the Financial Year 2017-18.
Bharti Infratel : Despite major co-location exits

due to consolidation in telecom industry, the
company has been able to maintain net profit at
same level and report operating free cash flow
growth
Bharti Infratel held its conference call on 25 April 2019 to discuss results and future.
Akhil Gupta, Chairman, Bharti Infratel addressed the call:
Bharti Infratel is a provider of tower and related infrastructure sharing services.
On a consolidated basis, it is one of the largest PAN India tower infrastructure providers,
based on the number of towers owned and operated by Bharti Infratel and Indus that are
represented by Bharti Infratel's 42% equity interest in Indus.
The business of Bharti Infratel and Indus is to acquire, build, own and operate tower and
related infrastructure.
Bharti Infratel and Indus provides access to their towers primarily to wireless
telecommunications service providers on a shared basis, under long-term contracts.
It has Total Tower base of 92,277 with closing sharing factor of 1.87.
Operating Free Cash Flow was at Rs 1,154 crore for Q4.
For the quarter ended March 2019, sales fell 3% to Rs 1675.80 crore qoq. On yoy basis,
sales stagnated at Rs 1675.80 crore against Rs 1672.80 crore.
PAT fell 6% QoQ to Rs 607.60 crore. YoY net profit stagnated at Rs 607.60 crore against Rs
606.00 crore.
FY 2019 saw major consolidation in the Indian telecom industry with four operators ceasing
to exist either on account of mergers or outright shut down of operations.
FY 2019 was a year of exponential data growth.
Despite major co-location exits in the quarter and during the year due to consolidation in
telecom industry, the company has been able to maintain net profit at same level and report
operating free cash flow growth.
The consolidation and integration phase in Indian Telecom Industry along with exits of
co-locations is largely over.
The management is now looking at the next phase of network and related infrastructure
rollouts by operators – first for 4G and subsequently for rapidly evolving 5G, to cater to ever
growing demand for data.
These would require large investments, thereby presenting potential for sizeable growth for
passive infrastructure companies going forward.
Between Bharti Infratel and Indus Towers, approximately 20% of opening co-locations were
lost during the year translating to approximately 75,000 co-locations on an overall basis and
approximately 40,000 co-locations on consolidated basis, mainly due to merger of Vodafone
& Idea. However, despite such unprecedented loss of co-locations, the overall financial
performance for the year and the quarter ended has only been marginally lower than last
year.
Bharti Infratel's and Indus's three largest customers are Bharti Airtel (together with Bharti
Hexacom), Vodafone Idea and Reliance Jio Infocomm, which are leading wireless
telecommunications service providers in India by wireless revenue.
Steady performance is a testimony to its sound business model and its leadership position in
the industry.
With rapidly growing data demand, large network rollouts will be required, indicating strong
potential for the company in coming years.
The management is already seeing some early signs of acceleration in network rollouts.
The company is fully prepared to exploit the potential and meet all requirements of its
customers for speedy rollouts.
The merger process of Bharti Infratel and Indus Towers is on track and should be completed
in the next few months.
It has a nationwide presence with operations in all 22 telecommunications Circles in India,
with Bharti Infratel and Indus having operations in 4 overlapping Circles.
As of March 2019, Bharti Infratel owned and operated 40,388 towers with 76,341
co-locations in 11 telecommunications Circles while Indus operated 123,546 towers with
229,483 co-locations in 15 telecommunications Circles.
As per report ‘Indian Tower Industry: The Future is Data – June 2015' by Deloitte, Bharti
Infratel and Indus Towers together have a market share of 40.8% and 48.6% for towers
and co-locations respectively.
With Bharti Infratel's towers and Bharti Infratel's 42% interest in Indus, it has an economic
interest in the equivalent of 92,277 towers and 172,724 co-locations in India as of March
2019.
The company has entered into MSAs with its customers. The MSAs are long-term contracts
which set out the terms on which access is provided to Bharti Infratel's and Indus's towers,
with all service providers being offered substantially the same terms and receiving equal
treatment at towers where they have installed their active infrastructure. Under the MSAs,
Bharti Infratel and Indus enter into service contracts in respect of individual towers.
The MSAs and service contracts govern Bharti Infratel's and Indus's relationship with their
customers; the services provided, the applicable charges and incorporate annual escalation
clauses in respect of the applicable charges. This provides stability to Bharti Infratel's
business and provides visibility with regard to future revenues.
The Return on Equity pre-tax and post-tax was also maintained to 26.1% and 15.8% as
against 26.1% and 15.4% respectively on yoy basis.
For FY 2019, the Group incurred capital expenditure of Rs 1796.1 crore.
There are 4,308 co-locations on consolidated basis as of Mar 2019 which are billed during
the quarter and actual exits have not happened.
ROCE as at FY 2019 stands at 31.8%.
5G has been evolving faster than expected.
Contribution from smart cities should improve going forward.
Reliance JIO is rolling out new towers which were initially meant for captive consumption.
However, it cannot be confidently said that they won't be competitors especially if going
forward they decide to sell their towers.
Number of telecom operators fell from 14 to now 4 (3 private and 1 Government). This will
be healthy for the telecom industry in the long term.
It is expected that Vodafone Idea would restart capex now after the completion of their
rights issue.
The company is collecting money consistently and thus the receivables are expected to
come down going forward.
Maruti Suzuki : FY 2019 was a challenging year

for domestic passenger vehicle industry. Growth
was lowest in the last 5 years
Maruti Suzuki held conference call on 25 April 2019 to discuss results and future.
CFO Ajay Seth and Senior Vice President Pradeep Garg also addressed the call:
For the quarter ended March 2019, Maruti Suzuki registered 1% rise in sales to Rs 21459.4
crore. OPM fell 250 basis points to 10.5% which saw OP fall 18% to Rs 2263.40 crore.
PBT fell 12% to Rs 2312.10 crore. Provision for tax fell 31% to Rs 516.50 crore after which
PAT fell 5% to Rs 1795.60 crore.
In FY 2019, it registered 5% rise in sales to Rs 86020.30 crore. OPM fell 190 basis points to
12.8% which saw OP fall 9% to Rs 10999.30 crore.
PBT fell 5% to Rs 10465.60 crore. Provision for fell 10% to Rs 2965.00 crore after which
PAT fell 3% to Rs 7500.60 crore.
In Q4 the company sold a total of 428,863 units in the domestic market, a growth of 0.4%.
This comprised 421,383 units in the passenger vehicle segment, a decline of 0.4% and
7,480 units of LCV, a growth of 83.6% over previous year. Exports were at 29,616 units.
Total Sales in the quarter stood at 458,479 vehicles, a decline of 0.7%.
In FY 2019 the company sold a total of 1,753,700 units in the domestic market, a growth of
6.1%. This comprised 1,729,826 units in the passenger vehicle segment, a growth of 5.3%
and 23,874 units of LCV, a growth of 138% over previous year. Exports were at 108,749
units.
Total Sales in the year stood at 1,862,449 vehicles, a growth of 4.7%.
This was a difficult year because of adverse foreign exchange rates and increase in
commodity prices.
The second plant in Gujarat was commissioned leading to a higher depreciation expense.
The overall market was slow and had to be supported by higher sales promotion expenses.
This was partially offset by cost reduction efforts.
On qoq basis, in Q4 sales promotion expense were lower.
Q4 had one-time reversal of tax provision from earlier years - related to tax benefit on R&D
expenditure.
Q4 other income was higher due to higher fair value gain on invested surplus.
Q4 saw adverse impact of rise in commodity prices.
Going forward the company hopes to avail of its Strong product portfolio and falling interest
rates.
Concerns for the future are fuel prices, commodity prices and foreign exchange.
2019 was a challenging year for domestic passenger vehicle industry. Growth was 2.7%,
lowest in the last 5 years.
Weakness in Q3 continued in Q4 2019 also.
Production was streamlined to keep network stock in check.
The company conducted events in urban and non urban areas to increase sales.
OPM fell in last 2 quarters but is difficult to assess margins on a quarter basis as the whole
year was very volatile for eg H1 had higher wholesales sales and H2 had lower. If H2 were
to have 2-3% higher wholesales overall margins for FY 2019 would have been higher.
Depreciation would even out in the next 6 months to one year.
Commodities have started cooling off. Current forex is in a better situation than in Q4.
Q1 will be tough as the company does see sluggishness in volumes till elections. After that
volumes are expected to improve.
In Passenger Vehicle, Utility vehicle and Vans the company continues to maintain leadership
position.
In FY 2019 all best selling 5 passenger vehicles were from Maruti.
The company has 310 outlets in 230 cities.
Average discount in quarter was Rs 15125.
Royalty rate was 5% in Q4.
23% of sales were from Diesel in Q4.
Import restriction in cetrain geographies impacted the exports.
Companies will not be able to sell BS 4 vehicles from 1 April 2020. Also 3 new regulatory
impositions will come into effect in FY 2020. It may happen that customers will prepone
buying anticipating increase in prices. On the contrary it can also happen that customers
may wait to buy technologically superior products. So FY 2020 will be full of uncertainty.
SIAM expects 3-5% growth in FY 2020 and the company hopes to grow faster than the
industry.
For exports, the company hopes to tap the African markets but will have to see by when. It
is very optimistic on African markets.
However, in FY 2020 exports will remain subdued.
The company took price hike in January which will have full year impact in FY 2020.
Export revenues in Q4 were Rs 1474 crore and in FY 2019 were Rs 5335 crore.
Q4 inventory impact on margin was 100 basis points on yoy basis and 50 basis points on
qoq basis.
In FY 2019 capex was Rs 4500 crore and will be same in FY 2020.
Discounts were lower in Q4 compared to Q3. Q3 saw highest ever discounts.
Au Small Finance Bank : Expects to continue to maintain

strong growth trajectory
Au Small Finance Bank conducted conference call on 23 April 2019 to discuss its financial
results for the quarter ended March 2019. Sanjay Agarwal, MD & CEO of the bank addressed
the call.
Highlights:
The bank has completed the second year of banking operation on 19 April 2019, while
maintained strong assets growth with stable asset quality in the quarter ended March 2019.
The balance sheet of the bank has jumped 73% to Rs 32623 crore end March 2019 over March
2018.
The disbursements of the bank has crossed Rs 5000 crore mark in Q4FY2019, while the overall
disbursements jumped 49% to Rs 16077 crore in FY2019 driven by most of the product
segments.
The loan book of the bank has jumped 50% to Rs 24246 crore, drive by strong disbarments
growth of 52% in vehicles finance and 35% in SBL MSME loan book for FY2019.
The bank expects to maintain strong growth trajectory, going forward. The bank expects asset
under management growth of 30-40% for FY17-FY22 period.
The bank has maintained stable yield on loan book at 14.3% with the increase in yield on fresh
disbursements by 50 bps in Q4FY19 led by strong uptick in retail assets disbursement yield to
15.2% in Q4FY19 from 14.5% in Q3FY2019.
The margins excluding securitization income has continued to remain stable at 4.8% and
spreads have been steady at 6.4% for last four straight quarters.
The bank has witnessed decline CASA deposits ratio to 21% end March 2019. However, the
share of retail saving deposits to overall saving deposits has increased to 89% end March 2019
from 73% end March 2019. The share of retail term deposits in overall terms deposits has also
moved up to 30% from 22% a year ago.
The bank expects to raise Rs 30000 crore of deposits over next three years, while expects loan
to deposits ratio to decline to 80%.
The average cost of saving account deposit stood at 6.3% for FY2020. The bank expects to
maintain cost of funds ahead.
The bank expects fee income growth of 20% for FY2020.
The asset quality of the bank has been stable, while the bank is confident of maintaining stable
asset quality ahead.
The bank is witnessing improvement in operating efficiency, while the bank expects to maintain
cost-to-income ratio at current level. The bank does not have any big capex for current year
except new branches. On branches front also, the bank is focusing on low cost branches. The
bank also does not plan to experiment any new product in next few months.
The bank expects its branch banking business to achieve break even in next 18-24 month and
starts contributing to RoAs.
The fresh slippages of loans increased to Rs 152 crore in Q4FY2019 causing rise in GNPA level
to Rs 470 crore, of which NPAs below 90 days overdues amounted to Rs 137 crore end March
2019. The provision coverage ratio stood at 37%, while excluding below 90 days overdue loan
provision coverage ratio was higher at 55% end March 2019.
ICICI Securities : New initiatives to help improve productivity

and cost efficiency ahead
ICICI Securities conducted a conference call on 23 April 2019 to discuss the financial results for
the quarter ended March 2019. Shilpa Kumar, MD & CEO of the company addressed the call:
Highlights:
FY2019 saw muted market due to global and political developments for most part of the year
resulting in narrow participation in delivery based trade and risk aversion to mid and small cap
stocks. The year witnessed a sharp drop in primary market activities and subdued qualified
institutional transactions and private equity deals.
In the mutual fund front, various regulatory changes implemented during the year saw shifting of
upfront commission to trail based commission and reduction of TER (Total expense ratio).
In spite of these headwinds and against an outlier base year in FY2018, the company has
reported its second best year in terms of financial performance. The company reported
revenues of Rs 1727 crore and net profit of Rs 491 crore for FY2019.
The company has registered 7% decline in consolidated revenue to Rs 1727 crore for FY2019,
while Profit after tax (PAT) declined 11% to Rs 490.7 crore. The distribution revenues were flat
at Rs 463.5 crore, but brokerage and related revenues declined 9% to Rs 932.8 crore and
corporate finance revenues declined 31% to Rs 99.1 crore in FY2019. The company has been
able to contain its costs. The total costs declined 4% to Rs 969.8 crore in FY2019, while cost to
income ratio stood at 56% in FY2019.
The company launched several initiatives towards client acquisition and client engagement in
FY2019. The company expects these initiatives to help improve productivity and cost efficiency
going forward.
In broking business, the company has over 4.4 million operational accounts, of which 4.5 lakh
were added in FY2019. Overall active clients increased to 1.3 million in FY19. The company has
improved its market share by 50 bps sequentially to 8.5% end March 2018. Total brokerage
revenue (excluding interest income) stood at Rs 933 crore. While retail participation remained
weak, institutional broking reported strong growth.
Distribution revenue remained mostly flat during the year as well as the quarter at Rs 463 crore
in FY2019 and Rs 112 crore in Q4FY2019. Discontinuing payment of upfront MF commission to
distributor had a significant impact on the company's distribution business. A 5% fall in MF
revenues, the largest contributor to the distribution business, was partly offset by 7% rise in
non-MF revenue. Distribution business contributed 27% to our overall revenue in FY19 against
25% in FY18.
Average AUM of the mutual funds distributed by the company increased by 15% to Rs 34700
crore in FY2019 against 12% growth for the industry. The company has been India's second
largest nonbank MF distributor by revenue (based on FY18 revenue) with a strong offline
presence through a network of 200 ICICIdirect branches in 75+ cities, a nationwide network of
7100+ sub-brokers, authorized persons, IFAs & IAs, and presence in 3,750+ ICICI Bank
branches.
In Investment Banking, the company reported sharp decline in revenues to Rs 99 crore in
FY2019. During the year, ECM mop up tanked 70% to Rs 56900 crore against Rs 189900 crore
in FY2018. The company saw increased traction in advisory deals and closed 12 such deals
during the year, against 5 in the previous fiscal. The deal pipeline remains robust.
Return on Equity (RoE) was 52% in FY2019.
The ADTO (ex-prop) was up by 43% led by growth in the average daily derivative volumes.
There is a 5% growth in SIPs from 0.63 million in FY2018 to 0.67 million in FY2019.
Life Insurance revenue was Rs 47.4 crore in FY2019 compared with Rs 48.3 crore in FY2018.
The life insurance premium collection was Rs 886.8 crore FY2019 from Rs 903.8 crore FY2018.
Mahindra and Mahindra Financial Services : Expects to
improve RoA above 3%
Mahindra and Mahindra Financial Services conducted a conference call on 24 April 2019 to
discuss the financial performance for the quarter ended March 2019 and prospects of the
company. Ramesh Iyer, MD, Mahindra & Mahindra Financial Services addressed the call:
Highlights:
The loan growth of the company has been supported by deeper penetration and lower
competitive landscape.
The recoveries and collection performance was supported by improved sentiments from better
cash flows with ongoing rural infrastructure story, better crop and MSPs etc.
The collections efficiency was upwards of 96% for FY2019, 100% for Q4FY2019 and 107% for
March 2019, which helped the company to further reduce GNPA ratio.
The company has recorded decline in GNPA ratio to 5.9% end March 2019, while the company
expects to continue to further reduce GNPA level going forward. However, even in a worst case
the company expects GNPA ratio to be contained at 7-8% level.
Thus, the strong loans growth, better collection efficiency, improved margins etc boosted the
earnings performance of the company to record high level in Q4FY2019. The improved
performance of subsidiaries also contributed to better earnings performance of the company in
Q4FY2019.
As per the company, most of the products of the company are need based products that do not
get impacted by any events for longer time. The company would be able to maintain its growth
trajectory with strong rural opportunity providing significant headroom for growth. Even an
average monsoon rainfall would provide strong growth opportunity.
On liquidity front, as per the company even if liquidity remains tight and interest rates remain
elevated, it would not face any fund raising challenge.
The company would continue to maintain strong focus on asset quality and growth. However,
historically H1 of the financial year has always been subdued, while the company has been able
to record aggressive performance in H2 of the financial year.
The provision coverage ratio of the company for stage 3 asset was lower at 19.2T% end March
2019, while it is line with the requirement under ECL method of Ind AS. However, the PCR for
stage 1, 2 and 3 asset was healthy at 46%.
The write-off stood at Rs 197 crore in Q4FY2019 and Rs 1182 crore in FY2019.
The disbursements of the company were steady for Q4FY2019 over Q4FY2019, mainly on
account of higher for vehicle segment and cautious reduction in the SME disbursement due to
existing market conditions.
The company expects to maintain the share of SME loans stable at 9.10%, while sees the room
for increase in share of pre-owned vehicle to 12-15% over a period of time from existing 9%.
Despite high base, the company has posted 10-12% growth in the vehicle segment for
Q4FY2019. Within the vehicle segment, the car disbursements were flat, while other segments
have posted healthy growth.
For FY2020, the OEMs are cautious over growth, but the company expects to outperform the
OEMs.
The company has improved RoA to 2.6% in FY2019, while sees scope to RoA above 3% in
FY2020 with 15-20 bps improvement in cost efficiency 10-15 bps reduction in cost of borrowings
and 20 bps contributions from NPA reduction.
LGD has increased from 27.45% end March 2018 to 27.95% end March 2019.
Indiabulls Housing Finance : Back to normalcy, expects

AUM growth of 20% and high teens profit growth for FY2020
Indiabulls Housing Finance conducted a concall on 24 April 2019 to discuss the financial
performance for the quarter ended March 2019 and prospects of the company. Gagan Banga,
Vice Chairman & Managing Director of the company addressed the call:
Highlights:
The company has exhibited normalcy in performance with disbursement rising two times from
low of Rs 3853 crore in Q3FY2019 to Rs 7300 crore in Q4FY2019. Disbursals normalized
towards February and March with disbursals in Q4FY19 being about 70% of pre-September
2018 regular quarterly run rate.
The company now looks to step up growth and aims for 20% AUM growth for FY2020 with
disbursement rising to its regular pre-September 2018 levels. The balance sheet growth is
targeted at 10%, while net profit is expected to increase at high-teens growth in FY2020.
Despite the tight liquidity condition, the company has raised Rs 51312 crore in after 21
September 2018 to 31 March 2019 through various routes. About Rs 14477 crore was raised
through bank loans, Rs 5480 crore from bonds, Rs 21480 crore from securitization and Rs 9785
crore from commercial papers. The company has raised funds with 658 relationships.
The company has cash and liquid investments of over Rs 30000 crore. The company has ample
growth capital to fund loan book growth.
The company has reduced CP borrowings to only 4% of funding, ensuring a long-term fully
matched ALM. Healthy liquidity on balance sheet combined with quarterly customer repayments
has ensured that ALM is significantly positive for every quarter for the next 10 years.
As the share of CP borrowings has declined, the sell down has emerged as an important
funding tool gaining share to 22% end March 2019 10% end March 2018. The company expects
the share of sell to remain higher and may rise ahead.
The sell down volume jumped to Rs 22347 crore in FY2019 from Rs 10000 crore in FY2019.
The company has completed sell down deals of more than Rs 65000 crore so far.
The company has continued to pass on the higher cost of borrowings to the customer helping to
improve spreads to 3.42% in FY2019 from 3.11% in FY2018.
An incremental yield on home loans stood at 9.85%, LAP 13.1%, commercial loans 15%, LRD
10.9% and construction finance 15%. The yield on outstanding basis for home loans stood at
10.5% LAP 14.5% and construction finance at 15.5%.
The yield on investment book of the company stood at 7.5%.
The company has earned interest income of Rs 244 crore from sell down of Rs 6000 crore in
Q4FY2019. The total interest income was Rs 914 crore for FY2019 from sell down of Rs 22347
crore.
The cost-to-income ratio of the company stood at 12.7% for FY2019, while the company
expects to reduce cost-to-income ratio to 12.0% in FY2020.
The company has Rs 24000 crore liabilities maturing in FY2020, of which Rs 5000 crore are
CPs and Rs 9000-10000 crore are bonds.
The company has exposure to 40 developers, of which top 25 developers account for 75% of
the developers loan book.
The merger process with Lakshmi Vilas Bank is progressing and applications to the regulatory
and statutory bodies are being sent. A dedicated team is also working on the road map to
transition the balance sheet to come under banking regulatory norms. The merged entity will
initially build on company's strengths and focus on the housing opportunity and on secured
MSME lending.
Axis Bank : Expects the domestic loan book of the Bank

to grow 5-7% faster than industry growth rates
Axis Bank held its conference call on 25 April 2019 to discuss results and future.
The call was addressed by Jairam Sridharan, Group Executive and CFO; Rajiv Anand,
Executive Director and Head of Wholesale Banking; Pralay Mondal, Group Executive and Head
of Retail Banking and Ganesh Sankaran, Group Executive - Wholesale Banking Coverage
Group.
Axis Bank registered a 26% rise in Interest income to Rs 14798.03 crore in the quarter ended
March 2019. A 29% rise in interest expenses to Rs 9092.44 crore saw net interest income (NII)
rise 21% to Rs 5705.59 crore. Provision and contingencies fell 62% to Rs 2711.43 crore after
which PBT jumped to Rs 2302.99 crore from a loss of Rs 3507.33 crore. Net profit stood at Rs
1505.06 crore against a loss of Rs 2188.74 crore.
In FY 2019 Axis Bank registered 20% rise in Interest income to Rs 54985.77 crore. A 23% rise
in interest expenses to Rs 33277.60 crore saw NII rise 17% to Rs 21708.17 crore. Provision and
contingencies fell 22% to Rs 12031.02 crore after which PBT went up from Rs 121.57 crore to
Rs 6974.09 crore. As tax provision stood at Rs 2297.48 crore against a write back of Rs 154.11
crore, net profit stood at Rs 4676.61 crore against Rs 275.68 crore.
In Q4FY19, Axis Bank's domestic credit growth remained healthy at 18% yoy, led by retail, but
overall growth was lower at 13% yoy due to overseas drag.
Deposit growth continued to outpace credit on high-cost TD growth, leading to a marginal
contraction in domestic/global NIMs in q4.
The Bank continues to increase Provision Coverage on Non Performing Assets. At the end of
Q4, the Bank's PCR stands at 77%, compared to 65% at the end of last year.
The Bank has a portfolio of Security Receipts that are held at a book value of Rs 2,910 crore.
During the quarter, the Bank made Rs 221 crore of provisions against this pool. It intends to
continue evaluating the SR portfolio critically every quarter, and take provisions as necessary.
This provision will be under the "Provision for investment" depreciation line item in P&L.
Guided by an RBI regulation in April 2017, the Bank maintains a higher level of standard asset
provisioning against certain self-identified ‘stressed sectors'. During the quarter, as a prudential
and conservative measure the Bank added two more sectors to the list of ‘stressed sectors' and
made an incremental provision of Rs 160 crore against them.
During the quarter, the Bank downgraded approximately Rs 920 crore into BB pool. It was
predominantly contributed by 2 large diversified business groups which have been facing severe
liquidity issues during the current quarter. As a measure of abundant caution, it has downgraded
the accounts of these 2 entities related to power sector outstanding/exposure Rs 505 crore.
Going forward, the Bank would systematically make higher Standard Asset provisions for
accounts that are either BB & Below, or disclosed as SMA-2 in its RBI reporting.
Overall, through these measures, the Bank has made additional provisions of Rs 378 crore over
and above the normal NPA provisioning during the quarter. These provisions are not included in
the standard PCR calculations.
New slippages in the quarter continued to remain at moderate levels. Gross slippages were Rs
3,012 crore, compared to Rs 3,746 crores in Q3FY19.
Slippages from the corporate segment were Rs 1,370 crore.
Of all corporate slippages in the quarter, 72% came from the BB & Below pool. There was one
account, with an outstanding of Rs 335 crore in the Engineering & Electronics sector that
slipped from outside the BB pool during the quarter.
Net Slippages in the quarter were Rs 636 crore. Of this, Rs 233 crore came from Corporate, Rs
188 crore from SME and Rs 215 crore from Retail and Agri segments.. Net Slippages in Retail
are down 56% from Q4FY18.
The bank continues to watch the Agri lending business closely for signs of stress. However,
during this quarter, the Bank's Net Slippages in Agri were negative, with recoveries/upgrades
being higher than new slippages.
The standard BB & Below book in the Bank's corporate portfolio was roughly flat sequentially,
and down 17% y-o-y. The BB & Below book now stands at Rs 7,467 crore, or 1.3% of gross
customer assets, down from 7.3% at peak. In absolute terms, the BB & Below book is now at
the lowest level in the last 12 quarters.
Total Provisions and contingencies for the quarter were Rs 2711 crore. Of this, Provisions for
NPAs were Rs 1,710 crore, compared to Rs 2752 crore in Q3FY19 and Rs 8128 crore in
Q4FY18.
Credit Costs for the quarter stood at 1.26% on a gross basis.
Fee income growth was led by a healthy 37% growth in Retail fee income. Within Retail, fees
from Cards business grew strongly by 40% YOY. The Cards business constituted 23% of total
Bank level fees in Q4FY19.
Investment product distribution segment comprising mutual fund and insurance grew 32%. This
is driven in part by a base effect where the Bank had taken one-time hit on MF fees in Q4 FY18.
Net Interest Margin for the quarter stood at 3.44%, with Domestic NIM at 3.61%. Excluding the
one off impact in Q3FY19 NIM on account of write-back of interest reversals on one large
recovery, the NIM in this quarter was marginally higher by 2 bps.
The full year NIMs in FY19 stood at 3.43%, broadly in line with full year margins last year, as
guided at the beginning of the year.
The annualized operating expenses to average assets ratio stood at 2.13%. It remains on track
to achieve goal of Cost to Assets of 2% in 3 years.
On a quarterly average basis, CA, SA and Retail Term Deposits together grew 21% YOY.
Within this, SA grew 13%, CA 10%, and RTD grew by 32% YOY on quarterly average basis.
The bank manages one of the largest wealth management businesses in India with assets
under management of Rs 1,32,702 crore as of the end of March 2019.
It continues to open branches at a steady rate. It opened 86 branches during the quarter taking
total network to 4,050 domestic branches.
Domestic loan growth for the quarter stood at 18% YOY.
The international loan book de-grew by 29%. It expects International loan book to stabilize in
absolute terms in the next two quarters.
Loan to Deposit ratio at the end of the quarter continued to moderate and stood at 90% as
compared to 92% as at end of Q3FY19 and 97% at the end of Q4FY18.
Retail continued to be the key growth driver – growing at 19% YOY in Q4.
ROA and ROE for FY19 were at 0.63% and 8.09% respectively.
As per the RBI directive, Axis Bank has made Rs 540 crore in provisions (25%) on a value of
land parcels received under debt swap transactions in Q4FY19 and residual provisions of Rs 16
00 crore (75%) adjusted from reserves, which will be charged to P&L in FY20, reversing from
reserves.
For FY20, it expects margins to remain broadly flat yoy, with an upward bias.
The bank guided for better credit growth in FY20, led by retail. However lower overseas credit
growth will be a drag.
Medium term execution strategy
Axis Bank's Execution strategy 2022 pivots on delivery of growth and profitability on a
sustainable basis with the intention to get back to 18% ROE levels.
The Bank is committed to its 3 year execution strategy, based on the pillars of
growth-profitability and sustainability, with an aspiration of delivering 18% ROEs sustainably.
It expects the domestic loan book of the Bank to grow 5-7% faster than industry growth rates.
It expects credit costs to stabilize below the long term average over this period.
Cost to assets should continue to trend down, towards stated goal of 2% by FY22.
It expects NIMs to settle in the range of 3.5-3.8% over the medium term.
Kalyani Forge : The company is now taking orders of only

machined components
In interaction with Rohini Kalyani MD and Chairperson on 25 April 2019

Key Highlights
Auto accounts for around 60% of total sales while non-auto segment will be the remaining 40%.
Within Non Auto segment, the company caters to various industries such as construction,
mining, defence, railways, power, marine, agriculture and general industrials.
For CV and 2W industry, the company is a Tier 1 supplier while for Passenger car vehicle
industry the company is a Tier 2 supplier.
The company has adhered to and upgraded its technology and processes to meet the desired
standards and emission norms for Euro 6 and BS 6 norms. Not much increase in the cost for
the company.
There has been a strategic shift in terms of company doing its business. The company has been
taking orders of only machined components unlike earlier, where it used to do raw forging.
This has resulted in higher margins. However scale is missing. The reason being the lack of
momentum in auto segment and in general economy for the non auto segment. Despite that,
the company is able to acquire new businesses and customers both globally and locally.
The machined component sales are around 50-55% of total sales for FY 19. Raw forging sales
now remains at around 35-40% of total sales, as compared to around 60-65%, couple of years
back.
No more provision for any bad debts or write off of any inventory or fixed assets left. Infact
company has won a claim of receivable from Belgium party and expects recovery of around Rs
4 crore in coming year.
Currently the forging capacity is operating at around 50% capacity utilization and machining
capacity is operating at almost 100% of capacity.
The company in the past 2 years had incurred capex of around Rs 41 crore in total for setting up
machining lines for the new customers backed by confirmed orders.
The company has a plenty of scope for operating leverage both in forging and machining
division as by increasing the shifts, the output can be increased with same machining lines for
existing customers.
The company is in talks with major OE based German customer and the execution is expected
in FY 20 and in FY 21. The capex of the same is minimal and will leverage in significant margin
benefits along with scale going forward.
The company's focus is on non automotive business be it power, construction including the
growing trends in industrial, marine, aerospace, heavy engineering, infrastructure and railways.
Going forward, the ratio of Auto to Non-auto, will shift towards 50:50 in the coming years, while
all the sectors will continue to grow in absolute terms. Internationally, already more than 50% of
the export business is to non-automotive sectors.
The company has received DIRC approval for In-house R&D center.
No further investments unless backed by confirmed machining order.
The company has participated in couple of tenders for defence orders and expects to receive
orders in FY 20.
The overall order book of machined components remains healthy and has better margins. The
order pipeline and enquiries continue to remain high.
The company is also ready for electric car segment and has supplied non engine components to
this line of business. However its currently very small component of overall business.
There are no plans of any merger between Kalyani Forge and Bharat Forge.
Rallis India : Focusing on strengthening its product

portfolio
Rallis India held its conference call on 26 April 2019 to discuss results and future.
The call was addressed by Sanjiv Lal MD and CEO of the company.
The company incurred one-time charge of Rs 7.2 crore on account of retiral benefits and Rs 5
crore contribution to electoral fund in the standalone accounts.
The company witnessed tough conditions in the domestic business.
Rallis is reorienting and is committed to continued investments to grow the business.
Rallis is putting in place various measures to strengthen its market position and distributor
network while stepping up the R&D effort in bringing new products for the domestic market.
There has been strong growth in international business and this momentum is expected to
continue.
International business and seeds business grew by 36% and 5% respectively.
Rallis has marketing alliances with several multinational agrochemical companies.
It enjoys healthy margins in international business.
Despite tough market conditions, domestic business was maintained at the same level.
Investments and capacity expansion at its Dahej site is presently underway to meet the growing
demand of international customers.
The management remains confident of growth trajectory on the basis of proactive efforts.
It has revised channel credit policies and revamped motivation incentives schemes from 1 April
2019.
The company is facing cash flow issues in the rural markets but it has placed good risk
mitigation process.
Specialty product launches will continue to remain in focus.
IMD has given projection for normal monsoon so the management is hoping for a great season.
The company is focusing on strengthening its product portfolio.
It has existing pipeline of 11-12 products to be launched in next few years. It will launch 5
products in FY2020. All these 5 products will be novel products.
In seeds business the company has strong presence in kharif crops and is working to increase
its presence in rabi crops. This will also reduce seasonality.
In international business it is scaling up production of molecules where there is potential of clear
growth.
The company has strong footprint in Western and Southern markets and is looking to increase
its presence in Northern and Eastern markets.
The management has taken cognizant of price increase of its raw materials and will take
corrective steps as and when required. The whole industry is suffering due to higher raw
material price.
It has introduced policies which will help the company regain growth in domestic markets.
Apcotex Industries : Margins should improve and aims

for around 13.5-14% in next couple of years
The company held its conference call on 26 April 19 and was addressed by Mr. Abhiraj Choksey
MD
Key Highlights
Ebidta margin generally have been under pressure in Dec 18 and in Mar 19 quarter due to
inventory adjustments. High inventory of raw materials on one hand, falling raw material prices
on other hand and slowdown in automotive segment, issues with domestic carpet industry due
to removal of export incentives etc were some of the challenges seen in H2 FY 19.
Large impact in margins in Mar 19 quarter due to higher inventory of raw material. Margins
should improve going forward as such high cost inventories are no more.
Construction side and NBR side demand remained strong and stronger volumes were seen
throughout the year. NRB segment margins were lower due to raw material issues and
slowdown in auto industry affecting some product mix. Other user industry segments performed
on expected line.
Carpet would be around 10% of total revenues. Roughly around 35% of sales is towards auto
including tyres.
In FY 19, the company incurred a capex of around Rs 50 crore and remaining Rs 40 crore will
be spent in FY 20. This includes power plant commissioning by June 19. The capex will
increase latex capacity by around 20%. Efficiency and maintenance costs capex also is
included in the capex of Rs 90 crore.
Exports account for around 13% of total FY 19 sales. The export customer who got fire in his
premises has still not started off-takes from the company. Expects the export off takes from this
customer from H2 FY 20 onwards. This customer account for around 4% of total exports.
Excluding the customer, exports have grown at around 20%. Exports should continue to grow at
around 15-18% going forward as well.
Tax rates normally are around 30-31%. There is deferred tax credit which was fully utilized in
the quarter and hence overall tax was at lower rate.
By mid of FY 20, the company has plans to invest around Rs 250 crore for increasing capacity
of latex by 40000 tons and NRB by around 25000 tons. This will take around 18 months time
from the start of the project and can generate more than Rs 500 crore of additional turnover.
NBR is a high margin product.
Debtors are well under control.
The margins should improve. The endeavour is to reach to around 13.5-14% in next 24 months
and to take it forward from there.
NBR would account for around 35% of total sales, Synthetic Latex would contribute around 50%
of total revenues and Synthetic Rubber would be around 15% for FY 19. Exports mostly are
from sale of Latex.
Foseco India : Expects a gradual recovery in sales and

margins
The company held its AGM on 26 April 2019 and was addressed by MD and CEO Mr Sanjay
Mathur
Key highlights
Slow down in automotive sector towards end of CY 18 affected the overall performance for CY
18.
Roughly sales from auto segment would be around 30% of total sales. While the number keeps
changing but this is the ballpark number. Autos will remain volatile throughout the year. So
difficult to project in the coming year, but it will not worsen from the current levels.
Liquidity issues remained particularly for small foundry players in CY 18. Slow recovery is
clearly visible.
The margins overall got affected due to adverse product mix. When there is a slowdown,
everybody is after the cost cutting measures. So all these affects product mix and thus margins.
Ideal margin for the company on a steady state is around 16%. Margin should eventually inch
up towards that level, if overall economy picks up.
No price increase in CY 18 and volumes remained muted throughout the year as against an
expected recovery.
Delisting of shares from BSE was a decision taken by board as it aims to remain listed only on
one exchange ie NSE. No delisting or buy back plans as of now.
Also lower consumable sales also affected the margins. Consumables and high value added
products has Ebidta margin of around 18-20% which generally results in overall higher margins
for the company.
Overall sales and offtake is picking up gradually. Sale of high value added products should also
pick up as the year progresses which should help margins.
Railways, metallurgy, capital goods, ferrous and non ferrous industries, speciality chemical
segment etc are some segments which are doing well.
Company continues to operate at around 70-75% of installed capacity since past 2 years now.
No major capex is aimed going forward.
The company has good market share in M&H CV segment. New products were introduced in
CY 17, but overall demand was lower so didn't made an impact in overall sales in CY 18. These
products should do well in CY 19.
There are no plans for higher exports and Parent doesn't see the subsidiary as a hub for export
markets.
Overall expects a gradual recovery in sales and margins going forward. Quarterly fluctuations
will remain very high due to lack of momentum and difficult to project on orders in a particular
quarter.
ICICI Prudential Life Insurance Company : Aims to double

VNB over next 3-4 years
ICICI Prudential Life Insurance Company conducted a conference call on 24 April 2019 to
discuss the financial results for the quarter ended March 2019. N. S Kannan, MD & CEO of the
company addressed the call:
Highlights:
The Company has met the minimum public shareholding requirements of 25% end March 2019.
During the last quarter, Prudential Corporation Holdings divested 3.71% shareholding in the
company as Offer for Sale (OFS), through exchange mechanism.
The company had set objective of growing the absolute value of new business i.e. VNB through
the 4P strategy of Premium growth, Protection business growth, Persistency improvement and
Productivity improvement targeted at improving cost ratios. The company believes that this 4P
strategy is appropriate in the context of the huge insurance opportunity in the country, coupled
with objective to grow the VNB.
The two immediate priorities of the company were premium growth and persistency
improvement and undertook some initiatives to address these two priorities that helped to report
new business APE growth of 11% for Q4FY2019.
In order to set up a platform for long term resilient and sustainable growth, the company has
embarked on a journey of broadening customer base. Number of savings new business policies
grew 19% for Q4FY2019.
The company has improved 13th month persistency to 86.1% end March 2019 from 84.1% end
December 2018, while also saw 49th month persistency improving further to 64% end March
2019.
The company has continued to make significant progress on protection journey. Protection
business now constitutes more than 20% of new business received premium, compared to 11%
in FY2018. On an APE basis, protection accounts for 9.3% of overall APE. VNB from Protection
business now accounts for more than half overall VNB.
The company is well on the way to diversify its sources of profits.
With efforts to further broaden customer franchise, the company believes that it is well
positioned for the future in this regard.
Embedded value increased to Rs 21623 crore end March 2019, showing a growth of 15.1%
over end March 2018.
Claim settlement ratio has increased from 97.9% in FY2018 to 98.6% for FY2019. Average time
taken for settlement of claim was 2.3 days in FY2019. Grievance ratio has improved to 72 per
10,000 policies sold during the year.
On the people side, the company is a 14,000+ organisation. Over 90% of top managers have
been with the company for more than 10 years.
Muthoot Capital Services : Targets disbursement growth of

25% for FY2020
Muthoot Capital Services conducted a conference call on 25 April 2019 to discuss the financial
results for the quarter March 2019. Madhu Alexiouse - COO and Vinod Panicker - CFO of the
compnay addressed the call:
Highlights:
The company has exhibited 21% growth in disbursement on sequential basis to Rs 605 crore in
Q4FY2019 from Rs 502 crore in Q3FY2019. The disbursements have increased 8% to cross Rs
2000 crore market and touched Rs 2135 core in FY2019, while the company is targeting
disbursements growth of 25% for FY2020.
The company expects to launch new products such as used cars and consumer durable
products in FY2020.
The disbursements growth is expected be supported by strong rural sector opportunities and
faster growth in non-south segment. The company has exhibited share of rural segment to 38%
of loan book from 36% a year ago.
The share of motor cycle loan has increased in the loan book, while the under penetration in
motorcycle finance provides growth opportunities.
The gross AUM of the company has increased 6% qoq and 22% yoy to Rs 2741 crore end
March 2019. The company expects to improve AUM to Rs 3500 crore by March 2020.
However, the earnings performance of the company was impacted due to slower growth in
interest income, higher interest expenses and opex in Q4FY2019.
As per the company, it has completed securitization deals of hefty Rs 366 crore in March 2019,
and deferred interest income of Rs 7.02 crore to future quarters impacting the interest income.
The company has witnessed increase in borrowing cost to 10.1% in Q4FY2019 from 9.7% in
Q3FY2019, while it expects further rise in cost of borrowings by 20 bps in Q1FY2020 and stable
further in rest of FY2020.
The hike in processing fees by banks and payment of upfront fees for 3 years on term loans of
Rs 100 crore caused higher cost of the bank. The processing fees paid by the company have
increased to Rs 2.7 crore in Q4FY2019 from Rs 0.4 crore in Q4FY2018.
The expenses on leave encashment stood at Rs 0.76 crore for FY2019.
The company has also incurred higher marketing expenses of Rs 0.8-0.9 crore in Q4FY2019.
The company has also made additional provisions of Rs 4 crore in Q4FY2019 and Rs 14 crore
in FY2019.
The company expects to pass on the higher cost of borrowings to customers and would be able
to maintain margins.
This corporate loan book of the company account for 13% of the loan book, while the company
expects the share of corporate loan book to decline to below 8% and stabiles ahead.
The GNPA ratio declined to on sequential basis to 5.4%, while NNPA ratio declined to 3.1% end
March 2019 from 5.7% and 3.3% end December 2018. The company has improved provision
coverage ratio to 44.3% end March 2019 from 43.1% a quarter ago and 35.0% a year ago.
The collection cost is expected to be 3.0-3.5% for FY2019.
The company has added 75346 new customers in Q4FY2019, while the customer base has
moved up to 6.97 lakh end March 2019 from 6.86 lakhs end December 2018.
Tata Steel : Domestic steel demand softened during the

quarter
Tata Steel held conference call to discuss the performance for the quarter ended March 2019.
Mr T V Narendran- CEO and Managing Director and Mr. Koushik Chatterjee- Executive Director
and Chief Financial Officer of the company addressed the call.
Global steel production and consumption grew by 19 million tonne (mt) and 18 mt, respectively,
in Q4FY19. China's steel imports remained below 70 mt on an annualised basis. While global
growth has slowed down, the company believes with US-China trade war resolution, Fed
holding on rate hikes and Brexit postponement, business sentiments and risk appetite seem to
be improving.
India steel demand is expected to grow by 7% in FY20 driven by infra although auto growth is
slower. Global prices have stabilized after the rebound and domestic steel prices will follow suit
with demand.
Tata Steel India revenues from operations for the year increased by 47%YoY to Rs.88,987
crore driven by higher volumes and better realizations. EBITDA for the year increased by
56%YoY to Rs.23,883 crore. EBITDA margin stood at 26.8% and adjusted EBITDA per tonne
was Rs.14,687 per tonne.
Tata Steel Q4FY19 Consolidated steel production and deliveries grew 27%YoY and 29%YoY to
7.21 million tonne (mt) and 7.52 mt respectively. Tata Steel India production and deliveries
increased by 46%YoY and 55%YoY in 4QFY19 to 4.48 mt and 4.72 mt respectively. FY19
Consolidated steel production as well as deliveries jumped 17%YoY to 27.11 mt and 26.80 mt,
respectively; India production surged 35%YoY to 16.81 mt while deliveries grew 33%YoY to
16.26 mt
Tata Steel India production grew by 35%YoY to 16.81 mt in FY19 with the acquisition of Tata
Steel BSL as well as ramp-up at both Kalinganagar and Tata Steel BSL. India steel deliveries
jumped 33%YoY to 16.26 mt in FY19 and now account for more than 62% of consolidated
volumes
Usha Martin slump sale transaction was completed in April-19 and cash out go is expected in
FY20. The company has planned a fund infusion via a rights issue, which is being worked upon
currently. Usha Martin is expected to augment sales volume by 600kt in FY20
Tata Steel and Tata Steel BSL have proposed a merger with a swap of 15:1 for shareholders of
Tata Steel BSL. The company envisages financial and operational synergies, especially in
procurement, SG&A costs and general synergies expected in the corporate structure. An
outgo of Rs 1000 crore is expected to complete the transaction based on the current market cap
of Tata Steel BSL.
De-consolidation of SEA operations led to a debt deconsolidation of Rs 680 crore during the
quarter.
Kalinganagar phase-2 expansion is on track with CRM to be commissioned first (early FY21)
followed by pellet plant and other facilities
The company expects steel prices to increase by Rs1,500 per tonne over the average
realization of Q2FY19. Steel prices have remained stable in March and April 2019. However,
there have been price increases in the past 1-2 weeks in the global markets by US$15-20 per
tonne. Besides, the increasing cost of iron-ore due to production disruption at Vale will also aid
global prices (and in turn Indian prices) due to rising costs. Coking coal cost for Tata Steel will
be lower by US$6-7 per tonne in 1QFY19.
The company expects domestic demand to witness a modest recovery post elections as
underlying domestic demand remains strong.
The company expects FY2019 steel volumes for standalone steel operations to increase by 1
mt to 13.6 mtpa in FY2020 due to ramp up of Bhushan steel and Usha Martin plants
Capex for Q4FY19 was Rs 2720 crore and Rs 9000 crore in FY2019 which includes amount
spent towards KPO-II expansion. The company expects capex of Rs 8000 crore in FY2020 and
expects an increase in capex in FY2021 with ramp up of KPO-II
UltraTech Cement : Government's trust on infrastructure

development continues to drive growth
Expects capex of Rs 1500-2000 crore for FY20

Focuses on operating costs optimization through lead distance reduction and higher sources of
green energy
UltraTech Cement has conducted a conference call on 24th April 2019 to discuss the financial
performance for the fourth quarter ended March 2019, FY19, and way forward. Mr. Atul Daga,
Chief Financial Officer of UltraTech Cement, addressed the conference call.
SECTORAL UPDATE: The cement industry in it's upcycle with double-digit volume for full-year
(FY19), the first time since FY10. Capacity utilisation for Q4FY19 reached its highest level in the
last 28 quarters. Annual industry capacity utilisation rate increased to ~71%, about 5%
improvement over the previous year. Cement industry demand growth estimated at ~12% in
FY19 (versus 9-10% in FY18) with incremental demand of 28-30mt for FY20. Major contributors
to growth were housing (High double digit growth in housing bank credits Consistent demand
from rural housing consumption), infrastructure (Road execution speed now at ~ 30 kms/day,
Double digit growth in bank lending for Infrastructure, and Ports development on full swing),
Industrial & commercial (Office space demand improvement and Increasing trends in
manufacturing capacity utilization), and low-cost housing (Major construction projects in Madhya
Pradesh, Uttar Pradesh, West Bengal, Odisha and Andhra Pradesh) with them constituting
~54%, ~22%,~12%, and ~12% of the demand pie, respectively. The Company expects cement
industry demand to grow by 7-8% in FY20.
On supply dynamics, the current industry capacity is ~480mt against an annual demand of
340mt. The industry added 12mt capacity in FY19. Capacity utilisation for the industry increased
to ~71% for FY19 versus 66% in FY18. Going forward, the capacity addition is expected to be at
15-20mnt in FY20, whereas incremental demand is expected to be at 28-30mt, which should
further lead to an improvement in industry's capacity utilization.
Buoyant demand-supply environment supported price hikes in majority of the markets The
cement industry pricing scenario improved in Q4FY19 over Q3FY19, with price hikes of
2%/1%/4-5% in West/central/South regions. Prices remained flat in eastern and northern
markets.
The Company reported 127% jump in consolidated net profit to Rs 1,014.49 crore on the back
of 17% growth in top line to Rs 10,905.15 crore for the fourth quarter ended March 2019, on the
back of a lower base, higher production and improved realisation. The combined domestic
cement and clinker sales volume increased 15.3 to 21.30 million tonnes (mt), while realization
increased by 1.8% to Rs 5,120 per tonne.
The company logistics costs, which account for 34% of overall expenses, fell 2% from a year
earlier to Rs 1,146/t, due to benefit of axle load relaxations norms and optimization of lead
distance. Energy costs, which account for 31% of overall expenses, rose 7% to Rs 1,057/t due
to comparatively poor consumption norms for UNCL and as currency depreciation of 10%
against greenback impacted the landed cost of imported fuels. Raw material costs, which
account for 14% of overall expenses, remained flat to Rs 472/t, due to improved blending ratio
and increased production of composite cement.
Update on Acquisition of Binani Cement Limited (BCL): From 20th November, 2018, BCL has
become a wholly-owned subsidiary of the Company. It has been re-named UltraTech
Nathdwara Cement Limited ("UNCL"), from 13th December, 2018. The acquisition provides the
Company access to large reserves of high quality limestone. It consolidates the Company's
leadership in the fast growing Northern and Western markets in the country. A major
overhauling of the plants was undertaken in Q4 to improve production efficiencies. The plants
have been ramping up on capacity utilisation, achieving 72% in the month of March, 2019.
Since acquisition, the company has achieved cost reduction of Rs 200/t at plants.
Consequently, operating EBITDA/t for UNCL stood at Rs 830 excluding one-time expenses
related to its ramp up, an improvement of Rs ~740/t. UNCL is expected to become PBT
break-even in Q4FY20 with a target capacity utilization of 85-86%. Pet coke usage at UNCL has
increased to 40% from nil earlier. The company plans to sell the non-core UNCL assets in the
UAE/China and the sale proceeds (Rs11bn is the expected value, however, it has liabilities of
Rs5bn) will be utilized for deleveraging balance sheet.
Century Textiles' cement assets acquisition update: The Scheme of Arrangement amongst
Century Textiles and Industries Limited ("Century"), the Company and their respective
shareholders and creditors (("the Scheme"), is now awaiting the approval of the National
Company Law Tribunal and other regulatory authorities as may be required. The company
expects the acquisition to be completed by Q2FY20. Upon completing this acquisition and with
the on-going capacity expansions, the Company's cement manufacturing capacity will stand
augmented to 113.4 mtpa, in India, strengthening its position as the 3rd largest cement player
globally (excluding China).
JPA assets update: The JPA assets are operating at par with regional utilisations. There was a
temporary shutdown at the Bela unit in Q3FY19 that carried over till January 2019.
The Company focuses on reducing operating costs through lead distance reduction and higher
sources of green energy (solar, wind and waste heat recovery). The lead distance is at 400km,
which is expected to fall by 10-15km with synergies from UNCL's operations. The Company
added 26MW of WHRS capacity in FY19 taking the total capacity to 85MW. The Company plans
to commission four more units in phases by FY21, with total WHRS capacity set to increase to
131MW. The company's solar and windmill capacity is 62MW, contributing 1% to its total power
requirement, which the company plans to increase to 10%.
The Company expects a capex of Rs 1500-2000 crore for FY20, of which includes Rs 700 crore
will be toward developing the Vicharpur coal block; bulk terminal near Mumbai; WHRS at four
locations; wall care putty plant expansion; and completion of Bara grinding unit. Rest of the
capex will be for routine maintenance expenses.
The Company consolidated gross debt stood at Rs 22,818 crore (including overseas debt of Rs.
2000 crore at an interest rate of 1.6%) in Q4FY19, while net debt stands at Rs 19593 crore at
the end of Q4FY. The Company net debt/EBITDA for Indian operations stood at 2.5x in Q4FY19
and expects to bring it below 2x by FY20-end. Consolidated net debt/EBITDA of the Company
stood at 2.71x vs. 3.44x at the end of Q3FY19.
The Company recommended dividend of 115% at the rate of Rs 11.50/- per equity share of face
value of Rs 10/- per share, aggregating Rs 315.84 crore. The Company will absorb dividend
distribution tax amounting Rs 64.92 crore, resulting in total payout of Rs 380.76 crore.
The Company expects Government's trust on infrastructure development viz. construction of
cement concrete roads, metro rail networks, airports, DFC, irrigation projects, and increase in
the pace of execution under the low cost housing program, supported strong volume off-take.
With stabilisation of RERA, pickup in urban housing is also being witnessed. All of these are
expected to result in sustained demand growth for cement going forward.
HDFC Life Insurance : Expects to maintain individual APE

growth of 17-20%
HDFC Life Insurance held its conference call on 26 April 2019 to discuss its financial results of
the quarter ended March 2019. Vibha Padalkar, MD and CEO of the company addressed the
call:
Highlights:
The company has continued to record above industry level growth and maintain leadership
position on profitability. The company has recorded growth across all key parameters in
FY2019.
The company has registered strong growth in total premium collection at 15% to Rs 10326 crore
in Q4FY2019, while it has increased 24% to Rs 29186 crore in FY2019.
The company remained the market leader in terms of total new business received premium with
a market share of 20.7% in the private sector compared to 19.1% in FY2018.
The company has continued to focus on maintaining a balanced product mix, while enhanced
emphasis on protection business.
Accordingly term protection APE (Annualized Premium Equivalent) has surged 67% to Rs 1045
crore in FY19 from Rs 624 crore for FY18. Annuity APE has jumped over 140% to Rs 261 crore
for FY19. Protection business share moved up to 27% and annuity businesses to 17% of total
new business premium in FY2019 from 26% and 9% in FY2018.
The company expects to maintain individual APE growth at 2-2.5 times of GDP at 17-20%.
Annuity business is showing strong performance, while central government employees allowed
to choose private pension players from 1 April 2019 would further support pension growth
through its subsidiary HDFC Pension.
The company has issued 36 thousand policies in FY2019, more than doubling from FY2018.
ULIPs contributed 55%, Par 18% and Non par 27% of the Individual APE. The company
expects the share of ULIP to decline below 40% over a period of time.
The company has continued focus on diversifying distribution mix, which is underpinned by the
growth of proprietary channels and dominant presence across all product segments. The
company has strong diversified network of 250+ partners through several tie-ups comprising
NBFCs, MFIs, SFBs, etc and including 39 new emerging ecosystem partners.
The company has added 28500 agents in FY2019.
The company has reinvented its business model to grow under open architecture adopted by
HDFC Bank. The share of HDFC Bank in bancassurance has declined to 82% in FY2019 from
closer to 90% in FY2018. However, the non-HDFC Bank bancassurance has jumped 30% in
FY2019. The share of overall bancassurance in business mix has declined to 64% from 71%
last year. The company expects upward growth from bancassurance channel from here on
which should support margins.
The online segment is showing strong growth momentum, which has posted 46% growth for
FY2019.
The credit protect business of the company has posted strong growth of 36% in FY2019. The
company has diversified partner network in credit protect business with HDFC group
contributing 28% of premium, while no other partner contributes more than 10% of premium.
Segment wise, housing and LAP contribute 37%, microfinance 29% and others (personal loans,
vehicle and tractor finance) rest of the credit protect premium collection.
The company believes that its technological capability coupled with focus on innovation puts it in
a good position to maximize the tremendous potential of protection and retirals opportunities.
This should help the company to sustain robust performance across market cycles.
The persistency ratios continue to trend strongly across most cohorts. While 13th month
persistency healthy at 87%, while 61st month persistency was improved to 52% compared to
51% in FY2018.
The value of new business (VNB) grew by 20% to Rs 1282 crore. The company has recorded
industry leading New business margins (post overrun) of 24.6% in FY2019 from 23.2% FY2018.
The company has witnessed decline in solvency ratio at 188% end March 2019 from 192% end
March 2018 on account of investment into subsidiary. However, the company has sufficient
capital for strong growth for next three years, while the company do not expect fresh capital
raising for next three years.
The AUM of pension fund subsidiary jumped to Rs 5170 crore end March 2019, showing sharp
increase of 102% over March 2018. The company is the fastest growing pension fund manager
under the NPS architecture. The market share of the company has increased to 26.7% end
March 2019 from 21.4% end March 2018, among private pension fund managers.
The company has infused capital of Rs 116 crore in its reinsurance subsidiary in Q3FY2019.
The company has registered growth of more than 100% in revenue to US$ 4.3 million for
FY2019, while the company also registered net profit for the first time in FY19 after operating for
three years. It currently offers reinsurance capacity in UAE, Oman, Bahrain, Jordan &
Egypt.
The employee base of the company has increased to 19500 employees end March 2019.
HDFC Asset Management Company : Operating profit

margin improves to 37 bps of AUM in FY2019
HDFC Asset Management Company conducted a conference call on 26 April 2019 to discuss its
financial results for the quarter ended March 2019. Milind Barve, MD of the company addressed
the call:
Highlights:
. The AUM of the MF industry grew by over 11% in 2018-2019. Equity oriented schemes saw
net inflows to the tune of Rs 1.18 lakh crore in FY2019 and Rs 17800 crore in Q4FY2019.
. The SIP book for the industry now stands at Rs 8000 crore in terms of monthly inflows.
. The total AUM of the company stood at Rs 3.44 lakh crore, of which 48% is in equity oriented
assets and balance 52% in non-equity oriented assets.
. The overall AUM of the company grew by 18% and equity oriented AUM grew by 13% in
FY2019. The company has maintained leadership position with market share in terms of overall
AUM now is at 14.5% while that in actively managed equity oriented AUM is at 16.2%.
. The company now enjoys a trust of over 5.3 million unique investors across 9.1 million live
accounts.
. The company has continued to be the most preferred choice of individual investor with market
share of 15.4% in individual AUM.
. The systematic transaction book continues to remain stable with an inflow of over Rs 1180
crore in March 2019 across 3.38 million customer accounts.
. The distribution mix as always has been highly diversified and continued to retain number two
spot in terms of B30 AUM.
. SEBI's 22 October 2018 circular wherein the regulator has prohibited payment of upfront
commission and has further mandated that all scheme related expenses including distributor
commission shall have to be paid by the scheme and not the asset management company. As a
result, expenses have decreased since scheme related expenses are now borne directly by the
schemes. As a consequence of this, expenses now being borne by the scheme, the investment
management fee they pay to the company will reduce by commensurate amount.
. Even before the upfront commission was banned, roughly about a third of the flows or the
AUM were on a full trail model. The upfront commission is not consistently maintained at 1%, it
is sometimes a little lower. Now the entire AUM as well as the new flow will come on full trail
basis.
. The TER cut impact was about 25 bps, effective from 1 April, of which close to about 21.5-22
bps is passed on, while the company would absorb an impact on the book of about 3.5-4 bps on
the equity portion of the AUM.
. Approximately on an average 60 to 65% of TER is shared with the distributor and 35 to 40% is
retained by the AMC.
. The company has fully provided for exposure in preference shares of IL&FS of Rs 40 crore in
the books of the Asset Management Company.
. The operating profit margin stood at 37 bps of AUM in FY2019 up from 34 bps in FY2018.
. The profitability on equity is almost two times of that of debt.
. The company has further increased dividend payout ratio to 66% in FY2019 from 56% for
FY2018.
. The profitability in terms of operating margins has already expanded, so that has created the
room to absorb the margin fall that will happen.
. The direct business to total AUM basis has gone up from 34% to 38%, which includes the
liquid fund. The banks channel share is 14% down from 17%. HDFC Bank share has remained
roughly around 8.6%. The company expects the share of direct business to continue to improve.
. The company has network of 210 branches, while the company proposes to add 18 branches
in FY2020.
. The total PMS business including international mandate is almost Rs 9500 crore. The
company is not in AIFs right now and do not have any immediate plans to be in AIF.
Persistent Systems : Wants to use the current cash for

couple of quick acquisitions especially with the new
management on board
Persistent Systems held its conference call on 30 April 2019 to discuss results and future
prospects.
Dr. Anand Deshpande, Chairman and Managing Director of the company addressed the call.
In FY 2019 $ revenue stood at $ 480.97 million, up 2.2%.
Indian Rupee revenue stood at Rs 3365.94 crore, up 11.0%.
FY 2019 PAT stood at Rs 351.68 crore, up 8.8%. PAT margin was 10.4% of revenue.
In Q4 USD revenue stood at US$ 118.30 Million, down 2.1% QoQ and growth of 1.2% YoY.
In Q4 revenue in Indian rupee stood at Rs 8,31.85 crore, down 3.7% QoQ and up 10.5% YoY.
In Q4 EBITDA stood at Rs 126.55 crore. EBITDA margins stood at 15.2% of revenue. EBITDA
fell 25.7% QoQ and grew 13.9% YoY.
Q4 PAT stood at Rs 84.48 crore at 10.2% of revenue. It fell 7.9% on QoQ basis and grew
14.6% on yoy basis.
Q1 and Q3 are stronger and Q2 and Q4 are weaker.
Lower IP led revenue had adverse impact on margins at gross and EBITDA level. This was
partially offset by cost optimization and better utilization of resources.
Christopher O'Connor who joined on February 25, 2019 has been appointed by the Board as
the Chief Executive Officer and Additional Director (Executive Director) with immediate effect.
The management is excited with the new leadership team as it initiates next phase of growth.
Enterprises business continues to invest in building software defined businesses.
Its investments are aligned, and client interests remain strong as demonstrated by exciting new
projects and opportunities.
Value of forward contracts hedged stands at $ 112 million at 73 per dollar.
It was a tough year and growth was less than anticipated.
Revenue from top customer declined which impacted the sales.
As of April 26, 2019, the company purchased 2,230,113 shares for a total value of Rs 1,42.17
crore, representing 63 per cent of the total buyback size. The board had approved a share
buyback via open market route for Rs 225 crore with a maximum buyback price of Rs 750 per
share.
The management thinks that it is currently in the position to hold on to margins.
The management wants to use the current cash for couple of quick acquisitions especially with
the new management on board.
The company faces challenges in its services business in terms of growth rates.
In last 2 quarters percentage of offshore business has grown more than onsite business.
Offshore trend is expected to continue in FY 2020 as well.
In FY 2019 multiple new projects were started which will deliver long-term revenue growth.
Digital business accounted for 24.4% of sales in Q4 against 22.9% qoq and 22.0% yoy.
Top customer accounted for 20.2% of sales against 26.3% in qoq and 25.7% yoy.
Carborundum Universal : Expect consolidated sales in

excess of Rs 3000 crore in FY20
Carborundum Universal hosted a conference call on April 30, 2019. In the conference call the
company was represented by K Srinivasan, Managing Director and Jaganathan Chakravarthi,
CFO.
While H1FY19 was exceptionally good for the company H2FY19 was not good. Q4FY19 was
exceptionally difficult with no buoyancy in consumption demand especially from small
enterprises/trade. Subdued demand in fourth quarter was largely as customers reluctant to carry
inventory as they are concerned about opening GST stock adjustments for the fiscal given GST
is still work in progress in terms of clarity. Likewise the expected benefits out of the 25% US
duty on Chinese products not materialized.
Going forward Q1FY20 is expected to be muted. Demand continues to be muted across all
markets. Consequently the company expects volume to be get impacts but expect to maintain
margin at current levels. The company expects its consolidated sales to be in excess of Rs
3000 crore and EBIT margin to stay at current levels.
Capital expenditure spent at consolidated level in FY2019 was Rs 97 crore. Of which about Rs
54 crore was spent at Standalone level and balance at Russian Subsidiary towards fused
capacity as well as substation.
The company is going ahead with coated capacity expansion. Investment in coated capacity is
about Rs 60-70 crore and that will double the capacity for coated abrasives. The expanded
capacity will start contributing from October 2019.
Cash and cash equivalents (net of borrowings) at the consolidated level stands at Rs 95 crore
as end of March 2019. Consolidated debt stood at Rs 97 crore on March 2019.
The step down subsidiary M/s. Foskor Zirconia Pty Limited, South Africa [FZL] has incurred a
loss of Rs 24.70 crore for the financial year 2018-19, out of this Rs 12.60 crore has been
considered in the Group consolidated financials being the share of the Parent. The Board of
FZL is monitoring the business performance and will initiate suitable measures in due course.
No adjustments are necessary to be made in the financial statements in this regard.
FZL is not doing the volume to justify its fixed cost resulting in loss. At CIL books, the investment
on FZL was written down. The company will exit if the company turns as public sector company
or try to find a solution jointly with the local government to revive its fortune. FZL registered a
loss of 4 mln rand in Q4FY19.
The hydel power operations at Maniyar, Kerala has resumed during the beginning of the current
quarter. Expect power cost to come down from Q2FY20 onwards and have positive impact on
profits. Q3FY19 the power cost was Rs 6/ unit and that has come down to Rs 5/unit in Q4FY19.
The fall in volume is the drag in case of abrasives segment in Q4FY19 as the prices of
abrasives have not gone down but stayed at corresponding previous quarter levels. In FY2019
unusually the Q4 volume was lower than Q3 volume and this impact the margin.
Ceramics the company is still not have the price correction to cover the rise in input costs. But
expect price increase in contracts to happen in Q1FY20. Ceramics lower margin is largely due
to lower margin in both standalone as well as subsidiaries. For ceramics Q4FY19 is not an
indicator for ceramics and it will continue to grow.
Expect demand from trade for abrasives to pick up from second half of Q1FY20.
The inventory as end of Q4FY19 was largely finished goods rather than WIP and RM. So once
demand picks up the company will reap the benefits.
The company is not having too much of abrasive inventory in the channel and thus the
receivables days are the lowest for the company. So once demand picks up the company will be
the first to gain having finished stock at hand. Once demand picks up the price increase also
materialize.
In EMD the company is getting the volume and using up the capacity except Zilconia bubble
where the company not able to sell out the capacity. The silicon carbide there is change in
demand from premium products to metallurgical products.
EMD is 70% of commodity business where the company to sustain volume to put capacity into
use even adjusting for global pricing trends. Balance is premium products which are largely of
custom products. The company aspires to increase the commodity: premium product mix 65:35,
which will improve margin. Typically it takes 6 months to get price increase in commodity
business.
Tata Elxsi : Experiencing slowdown on the auto side

Tata Elxsi held its conference call on 30 April 2019 to discuss results and future prospects.
Madhukar Dev,MD & CEO of the company addressed the call.
Tata Elxsi, a part of the Tata Group, provides design and technology services for product
engineering and solutions across industries including broadcast, communications, and
automotive.
It also provides solutions and services for emerging technologies such as Internet of Things
(IoT), big data analytics, cloud, mobility, virtual reality and artificial intelligence.
On sequential basis, Tata Elxsi registered sales of Rs 405.10 crore against Rs 407.01 crore for
the quarter ended March 2019. OPM fell 110 basis points to 24.3% which saw OP go down 5%
to Rs 98.47 crore. PAT went up 8% to Rs 71.29 crore.
On y-o-y basis, sales were up 18% and OPM fell 160 basis points. OP was up 11%. PBT stayed
at Rs 94.41 crore and PAT grew 5%.
In FY 2019, Tata Elxsi registered 15% rise in sales to Rs 1596.93 crore. OPM improved 100
basis points to 26.0% which saw OP grow 20% to Rs 415.03 crore. PAT went up 21% to Rs
289.97 crore.
In Q4 Embedded Product Design accounted for 85.6%. For FY 2019 it was 86.2%.
In Q4 Industrial Design & Visualization accounted for 10.4%. For FY 2019 it stood at 10.4%.
In Q4 System Integration accounted for 4.0%. For FY 2019 it stood at 3.4%.
There are very big challenges but there are very big opportunities as well in Transportation
business.
The company is experiencing slowdown on the auto side. Despite this sales are expected to
grow 15% going forward.
There are no more levers for margin expansion.
What is going wrong in auto industry is that companies who have made investment in Diesel
technology are now very much challenged. Investment in new car and new technologies are
under stress.
The management sees investments in cars and new technology picking up after couple of
quarters.
Yoy CC growth for Q4 was 5% on qoq basis it was -0.5%. For FY 209 was 9%
Other income includes forex gain/loss. Other components are export incentives, R&D incentives
etc. There is nothing one off in other income.
Revenues from business from new clients were 6-7% for FY 2019. The company won't confine
looking for new business to one territory.
The company had very good order book from JLR during the middle of the year but after that
the orders from them went on hold.
Revenue from JLR in Q4 is not in line with the past trend. This is same for other auto clients
also.
The company first internal target is to get double digit growth on qoq basis.
By second half of FY 2020 the auto business should stabilize.
The company is having active conversations with companies it is targeting for acquisition but
there is nothing that it has to announce right now
Godrej Properties : Focus for FY20 is to monetize all

older commercial properties in its portfolio
Godrej Properties (GPL) hosted a conference call on April 30, 2019. In the conference call the
company was represented by Pirojsha Godrej, Executive Chairman; Mohit Malhotra, CEO and
Rajendra Khetawat, CFO.
Key takeaways of the conference call
Business development – Added six new projects with saleable area of 25 million sft in Q4FY19
including largest ever deal in the Pune market. It added 2 new projects in Mumbai with saleable
area of 1.6 million sft during the quarter. In FY19 the company has added 11 new projects with
saleable area of about31 million sft. Which includes our largest ever deal in the Pune market.
One of the focus areas for FY20 will be 100% monetization of the company's oldest commercial
properties.
The company has balance commercial inventory of about 4.5 lakh sft in Chandigarh, about
1.2-1.5 lakh sft in Kolkata and about 25000 sft in BKC-Mumbai.
Achieved revenue recognition at ‘The Trees - Phase 1' within 32 months, one year ahead of
schedule
Margin of ‘The Tree' is about 35-36%. The overall margin for the quarter is dragged down by
legacy projects as well as recognition of revenue under 115. Margin profile of new projects is
higher.
Delivered about 3.2 million sft across 5 cities in FY19
Booking at Rs 5316 crore for FY19 was highest ever for the company and of which about Rs
3062 crore is sales booking from new launches and Rs 2254 crore from existing inventory.
Vikhroli project total developable space is about 2.5-3 million sft and of which initial launch will
be about 1 million sft.
Magadi Road, Bangalore - GPL has exited the project due to non-fulfillment of CP's by the
landowner
Expect to further scale its business development and sales momentum in FY20, given its
exciting launch pipeline across the country.
The company is launching limited/restricted launches in case of Panvel project as the company
is waiting for new FSI policy which will benefit the project a lot.
The real estate market as a whole is a year or another away from recovery.
Reliance Nippon Life Asset Management : To pass on most

of the impact of revision in TER structure
Reliance Nippon Life Asset Management conducted a conference call on 30 April 2019 to
discuss its financial results for the quarter ended March 2019. Sundeep Sikka, ED & CEO of the
Company addressed the call:
Highlights:
The mutual fund industry faced multiple headwinds during the year such as long term capital
gains tax on equity, regulatory changes, market volatility and credit events. Despite challenges,
the company has continued to deliver better results. Also, mutual fund industry presents a huge
untapped potential.
During the year, there have been two major changes on the regulatory front with respect to total
expense ratio (TER) reduction. The impact of first change regarding reduction in exit load from
20 bps to 5 bps has been completed passed on. The company expects the impact of second
change regarding revision in the TER structure applicable from 1 April 2019 to be 2-3 bps of
overall AUM and 12-13 bps of equity AUM, which is will also be passed on to the extent of
80-90%.
The company has broad based AUM spread under various schemes with no scheme
concentration, while no distributor contributes more than 4.5% of AUM. This has helped the
company to pass on most of the impact of reduction in TER.
With regard to SEBI circular dated 22 October 2018, which has prohibited payment of upfront
commission & mandated a full trail model for distributor commission. It has further
mandated that all scheme related expenses including distributor commission, shall have to be
paid by the schemes of the MF & not by the AMC. As a result, the AMC's expenses have
decreased since the scheme related expenses are now borne by the schemes of the MF. Also
as a consequence of these expenses now being borne by the schemes, the AMC fee they pay
to the company have reduced.
The company has completed amortized the brokerage expense relating to open ended
schemes, while the unamortized brokerage expense relating to close ended scheme are Rs 50
crore which will be amortized over a life of the assets.
The company has been witnessing stabilization of yield around 60 bps, while it expects the yield
to improve ahead with the growth of equity assets and new regulatory change of TER and trail
model for commission.
The company has strong focus on cost control, while it has outsourced most of non-core
activities. Many expenses of the company are discretionary in nature.
RNAM has geographical presence at 300 locations pan India highest amongst AMC's, while
focus on locations beyond top 30 cities as assets from small cities are more persistent and are
more profitable. The cost of operation from small cities is also lower compared with larger cities.
The company is well diversified in terms of distribution with no single distributor contributing
more than 4.5% of the total mutual fund AUM. Distributor count went up from 65500 end March
2018 to 73400 end March 2019.
In FY19, digital purchase transactions including new SIP rose to 10.85 lakh, registering an
increase of 47%. On an average, the company processed one online purchase transaction,
including new SIP, every 30 seconds in FY19. Over one third transactions are happening on
Digital Assets & Integrations which is 100% growth over last year.
Reliance Capital has informed the exchange about intention to exit the stake in the company
and may make any related announcement in next 4-6 weeks.
The subsidiaries of the company have contributed revenues of Rs 100 crore in FY2019.
The company has exposure reduced the exposure to ADAG group from Rs 425 crore at
beginning of year to Rs 380 crore by end March 2019, which relates to infrastructure at Rs 175
crore, power at Rs 150 crore and balance to ARC. The mutual fund has also reduced exposure
to ADAG group from Rs 3100 crore to Rs 1750 crore during the year, of which Rs 1000 crore is
coming to maturity in next 2-3 month and the company do not expect any issue.
The company expects depreciation run rate of Rs 2-3 crore per quarter ahead.
Kotak Mahindra Bank : Expect credit cost to remain

stable or moderately improve in FY2020
Kotak Mahindra Bank conducted a concall on 30 April 2019 to discuss financial performance for
the quarter ended March 2019 and prospects of the bank. Uday Kotak - Executive Vice
Chairman and MD, along with other colleagues addressed the call:
Highlights:
. As per the bank, India's financial system is at major crossroads with significant challenges and
turbulence and next few month will be crucial for how different segments of financial services
shape up. The system needs to have strong approach from both practitioners and policy makers
to take the financial sector to safer water.
. The bank had posted strong improvement in net interest margin with the higher growth in
advances than the investment growth.
. The bank has posted robust increase in CASA deposits ratio to 52.5%, while the bank is not
obsessed with the number and aims to focus on further improving CASA ratio in systematic
manner.
. The bank has reduced the saving deposit taste below Rs 1 lakh to 4.5% from 5% earlier, while
saving deposit rate for deposit in Rs 1 lakh to Rs 1 crore is unchanged at 6%, with the focus on
raising saving account balance part account.
. The has strong focus on retail term deposits for building sustainable and low cost liabilities and
recorded strong 30% growth in term deposits below Rs 1 crore.
. The share of casa deposits and term deposit below Rs 5 crore had increased to 81% end
March 2019.
. On deposits rate front, the bank do not see any downside ahead.
. The LCR ratio of the bank stood at 115% end March 2019.
. The bank had continued to maintain stable asset quality, while fresh slippages of loans were
not concentrated in any sector in Q4FY2019.
. The fresh slippages of loans for the back stood at Rs 1995 crore in FY2019, showing marginal
increase from Rs 1860 crore in FY2018.
. The bank expect its credit cost to remain stable or moderately improve going forward.
. The bank has made sufficient provisions for its agriculture loan book, while expect no provision
requirement after election.
. The SMA 2 category loan book of the bank has declined to Rs 138 crore, which is 0.07% of the
total advances. The exposure of the bank to NBFC and CRE (excluding LRD) has declined in
Q4FY2019.
. With the slow down in the NBFC sector, the bank see more space for growth. The bank has
gained share in commercial vehicle and construction equipment segment and believes growth
movement to continue till December 2019 till BS-IV is implemented
. The branch account of the bank has touched 1500 branches end March 2019, while bank
expects to continue to grow its network in a calibrated manner.
. In the life insurance business, the bank has posted strong improvement in the embedded value
to Rs 7300 crore end March 2019 from Rs 5800 crore end March 2018. VNB margin in the life
insurance business as increased to 36% which is probably the highest in the industry.
. Products wise, ULIPs contributes 25% and channelwise bank contributes 48% of the total
premium in the life insurance busiess. The solvency ratio 3.02x.
. The risk weighted assets of the bank has increased to Rs 235000 crore end March 2019 from
Rs 199000 crore end March 2018. The bank has been consistently reducing advance to risk
weighted asset ratio for corporate segment over last two - three years.
Britannia India : Expecting double digit volume growth in

coming year
May 02, 2019 10:46 AM | Source: capitalmarket.com
The company held its conference call on 2 May 2019 and was addressed by Mr Varun Berry
MD
Key Highlights
H2 FY 19 saw a muted volume growth around high single digit. Some slowdown is clearly
visible and this is true not only for the company across FMCG sector.
Large part of the slowdown was more in rural than in urban. However with elections going to
over, considerable growth is expected in coming months.
India domestic business volume growth in Mar 19 quarter was at around 7% and then product
mix added around 150 bps growth and another 150 bps was due to price increases which
overall led to a 10% value growth in Mar 19 quarter.
Optimistic on a double digit volume growth for FY 20.
Considerable thrust on new launches was given in FY 19.
The company had cut down packaging costs and focused on new products. Also relaunched
cake portfolio and added new varieties as well.
Among the new categories product the company launched waffles, milk shakes, croissant,
salted snacks. Plans to launch across the country in FY 20.
The drinkable milk based category market would be around Rs 10000 crore
Rs 25000 crore salted snacks market of which company's product portfolio would cover around
Rs 8000 crore of the market.
Potato chips market will be around Rs 15000 crore.
The extruded market and the salted category is comprises of many local players and there are
as many as 2500 players.
Costs in new categories are within control.
During FY 19, the company had taken a write off of goodwill on its Daily bread business. Also
there were additional costs pertaining to scaling up of both existing and new businesses.
Strong growth in market share in biscuits segment in FY 19. Increased reach and distribution
network aided significantly to the growth.
In the salted snacks category and extruded products, the company has launched products
largely in Rs 5 category currently and mostly are baked snacks product but also plans for fried
as well going forward. 17 gm weight with price point of around Rs 5. Company aims Rs 500
crore of revenues in next 5 years in extruded products, nankeen and potato chips together.
Commercialization of various lines in Ranjangaon plant in FY 19. Invested Rs 600 crore in the
plant. Another 3 lines will get commercialize in June 19 quarter. Investing in new technology
lines and R&D.
Organic expansions in biscuits and cakes, benefits of lower conversion costs will result in better
margins going forward from the Ranjangaon plant.
Strong distribution momentum continues. The company has crossed 2.1 M direct outlets reach
in FY 19.
Overall, expects the growth momentum to continue going forward. The company is building yet
another strong base by increasing capacities and new product line for further improvements in
growth.
Cholamandalam Investment and Finance Company : Expects
AUM growth of 15% for FY2020
Cholamandalam Investment and Finance Company conducted a conference call on 30 April

2019 to discuss the financial results for the quarter ended March 2019. Arun Alagappan,
Executive Director and Arul Selvan, Executive Vice President & CFO of the company addressed
the call:
Highlights:
. The company has been consistent in delivering growth of over 25% in AUM, total income and
net profit for past few years, while the growth has been phenomenal even in FY19.
. The aggregate disbursements increased 21% to Rs 30451 crore in FY19 from Rs 25114 crore
in FY18, while the disbursements moved up to Rs 8893 crore in Q4FY19 as against Rs 8007
crore in Q4FY18.
. The company has provided additional provisions of Rs 50 crore in Q4FY19 towards macro
factors as per the requirement of accounting standard. Excluding this one-time provision, net
profit is showing growth of around 20% in Q4FY19.
. Assets under management of the company jumped 26% to Rs 54279 crore end March 2019
compared to Rs 42924 crore end March 2018. The company expects to comfortably achieve
loan growth of 15% in FY20.
. The company operates out of 900 branches across 27 states and union territories and 100
additional branches will be operational by end of Q1FY20.
. Gross Stage 3 assets declined to 2.7% end March 2019 from 3.4% end March 2018. Coverage
ratio for Stage-3 improved to 38% end March 2019 from 34.3% end March 2018.
. GNPA declined to 2.3% from 3% a year ago. Provision coverage ratio improved to 49.8% in
Q4FY19 as compared to 44.2% in Q4FY18.
. Gross NPA numbers as per IGAAP for vehicle finance is 1.65% at Rs 675 crore, while HE is
around 3.82% at Rs 447 crore. Both have come down on sequential basis from 2.14% at Rs
810 crore 4.47% at Rs 504 crore end December 2018.
. The company expects credit cost at 1% for FY2020.
. Vehicle Finance delivered spectacular performance with an all-round improvement in
disbursements, asset growth and profits. The Vehicle Finance business grew by 21% in terms
of disbursement and 28% in terms of PBT. The business recorded PBT of Rs 1278 crore as
against Rs 996 crore last year with a growth of 28%.
. The Home Equity disbursements grew by 21%, while PBT moved up by 38% to Rs 305 crore
for FY19 from Rs 221 crore in FY18. Higher recoveries in NPA supported the growth. The
company has been able to improve the ROA levels to over 2.8% as against 2.3% last year.
Recoveries continue to be good, leveraging SARFAESI and this quarter also the division
recorded higher recoveries than the charge on loan losses.
. The capital adequacy ratio at the end of Q4FY19 was comfortable at 17.56%, tier-1 being
12.57%.
. Despite the market constraints, with effective banking relationships, the company tapped the
banking lines and deployed it optimally. Further, the company has been maintaining cash cover
at approximately Rs 3000 crore to meet maturities over the next three months.
. The full impact of all cost of funds increase has happened in Q4FY19, as a lot of the reset of
MCLR in Q4FY19.
. The company would try to maintain cost to income ratio steady in FY20.
. Almost 50% of book is bank borrowing, which is linked to the MCLR.
. The lending for vehicle finance is 100% fixed rate, while home equity and home loans are 25%
floating rate.
. The yield on HCVs is as low as 10-10.5%, while cars, MUVs and LCVs are higher. In the HCVs
segment, the company funds only the credit tested customers.
. The cost of borrowings has increased by around 30 bps incrementally in Q4FY2019. The fully
hedged cost for ECBs works out to around 8.9% annualized including withholding tax, etc. As
per the company, the NIM has bottomed out in FY2019, while expects the NIM to improve in
FY2020.
. The company does not have any plans to do personal financing in the near future.
Castrol India : Expanding Silvassa plant

May 02, 2019 06:33 PM | Source: capitalmarket.com
Castrol India conducted conference call to discuss the financial results and performance of the
company for the quarter ended March 2019. Managing Director Omer Dormen and Director
Finance & Chief Financial Officer Miss Rashmi Joshi addressed the call
Castrol India modest 5% growth in revenues to Rs 980 crore in Q1CY19 was led by a healthy
7.6% increase in unit realizations offset by 2.1% yoy decline in volumes against a 9% dip in
overall lubricant industry volumes.
Increase in average realisation was on account of price hikes and conscious efforts to change
product mix in favour of premium products
Castrol's volumes declined at a pace lower than the industry due to single-digit growth in its
personal mobility segment, commercial vehicle oils and industrial lubricants declined amid a
general economic slowdown.
The company expects demand scenario in Q2CY19 to be better than Q1CY19 and anticipates a
strong rebound in commercial activity, which would drive up demand for industrial and
commercial vehicle oils after the general elections.
Gross margin was largely stable at 53.2%, supported by price hikes, strategic sourcing and a
favourable product mix. EBITDA margin was also stable at 29% leading to EBITDA growth of
3% YoY. The company continued its investments in brand building (ad expenditure was arund
3–4% of sales) and in channel expansion. PAT grew about 2% YoY.
Base oil cost was slightly favourable in the current quarter. The company expects it to firm up in
Q2CY19 following the recent surge in crude oil cost. The cost of additives, another raw material,
is also expected to be under pressure in Q2CY19
Gross profit per KL and EBITDA per KL increased 7% YoY and 5% respectively. The company
reiterated its strategy of focusing on increasing the market share over improvement in unit
profitability.
Auto contributed 86% of portfolio, and industrial and marine the balance 14% of sales.
Castrol Activ range of two-wheeler engine oils was completely refreshed with formulation
changes. Two additional variants – Castrol Activ Stop-Start and Castrol Activ Cruise – were
launched, which provide 3X protection across all stages of riding.
The company had announced an expansion investment plan of Rs 140 crore for its Silvassa
plant. This investment, spread over the next two years, will scale up capacity there by 50%. The
capex is aimed at blending and filling. Construction of the phase 1 of the plant has commenced.
This capex will be over and above the Rs 70–80 crore of the maintenance capex.
Castrol inked a strategic partnership with Ford for supply of engine and transmission oils to their
dealerships in India. They are also working jointly to develop and co-engineer products to
further enhance performance efficiency of Ford vehicles.
L&T Finance Holdings : Aims to consistently deliver

sustainable top quartile RoEs
L&T Finance Holdings conducted an analyst meet on 02 May 2019 to discuss the results
for the quarter ended March 2019. Dinanth Dubhashi, Managing Director of the company
addressed the meet:
Highlights:
The company has posted top quartile RoE for the first time in FY2019, which is achieved
through focus on retailisation, prudent liquidity management, growth in NIMs plus Fee Income,
diversification of funding sources and robust asset quality.
The company has achieved leadership positions across various businesses. In most of the
product segment, the products of the company enjoy top 5 positions in the industry in terms of
size, while they are number one in terms of profitability.
The company has further retailised its loan book with retail + housing loan book share rising
faster expected to 52% end March 2019.
The company has continued strong focus on right underwriting, risk management and prudent
provisioning.
The company has recorded consistent improvement in net interest margin, despite interest
income reversals for Q4FY2019. The company has posted substantial improvement in
NIM+Fees to 6.75% in FY2019 from 5.88% in FY2018. The strong pricing power of the
company and prudent interest rate management has enabled the company to pass on rising
interest rates. More importantly, the robust fee income has consistently helped in covering
operating expenses of the company.
On the focused products front, the company has maintained strong growth in the rural segment
with a growth of 50% and continued gaining share. The home loan segment has posted 51%
surge in the disbursements driven by 148% surge in the salaried segment. The IDF book has
surged 17% as against 1% decline in the overall wholesale loan book.
Within the real estate segment, the company is focusing on category A developers in mid and
affordable segment. In the infrastructure segment, the company is focusing on renewable and
operating road projects with higher sell-down leading to limited book of 9%. Meanwhile, the
company is putting heavy emphasis on project monitoring and completion in the real estate and
infrastructure.
The company is de-prioritizing the structured corporate finance and debt capital market segment
with disbursements in these segment declining 61% and 35%, respectively. The tightened credit
policy post GST rollout has also led to dip in the disbursements to loan against property by 40%.
The company has exited supply chain finance segment with the sale of Rs 700 crore book to
Centrum. The defocused loan book of the company has declined to negligible level below 1%,
while the company can write-off the defocused book at any point of time with provision coverage
of 75%.
On asset quality front, the company has consistently reduced bad debt level, along with
adequate provisions. The GS3 loan in the rural segment has declined in percentage as well as
absolute terms, while the company has continued to maintain healthy asset quality in the home
loans segment. The company has built macro-prudential provisions of Rs 350 crore (Rs 260
crore in rural and Rs 90 crore in housing) for unanticipated future event risk, over and above the
expected credit losses on GS3 assets and standard asset provisions.
The company has reduced Rs 1050 crore of legacy stressed assets in the wholesale loan book
in FY2019.
The company has exposure of Rs 1800 crore to 6 Project SPVs of IL&FS. The Resolution
Plan submitted by Union of India (at the instance of IL&FS Board) to NCLAT, specifies that
these SPVs are capable of servicing loans to secured creditors and there will be priority on
payments towards them. As on 31 March 2019, the exposure as secured financial creditor to
these SPVs, is in the Stage 1 category and within the standard classification of RBI's Prudential
Norms. As per the company, there will be no provision required towards principal repayment.
However, as a measure of commercial prudence and taking a conservative view, an amount of
Rs 84 Cr towards interest of Q3FY19 and Q4FY19 has been reversed.
As per its prudent ALM policy, the company has maintained positive liquidity and interest rate
gap, in the first-year buckets. The company has raised funds through secured retail NCD
issues, aiding in the retailisation of its liabilities. The company raised Rs 1500 crore in Tranche
1 and Rs 1000 crore in Tranche 2. Both tranches received tremendous response and were
oversubscribed on day 1 of opening. The company has so far raised Rs 1152 crore, from
International Finance Corporation, to further diversify its liability book.
Strategy ahead
In FY2020 and beyond, the company intend to consistently deliver sustainable top quartile RoE
through a strategy of responsible growth, continued retailisation of the loan book, diversification
of funding sources, healthy NIMs plus fee income, and enhanced productivity.
The future growth would be driven by gaining market share, but not at any asset quality risk.
The company would also focus on adjacencies (e.g. refinance, loan top-up etc) and cross sale
for boosting portfolio growth. The company is planning to launch new product such as
consumer, personal, SME loans to support loan growth, while the company is planning to
introduce SME Business Loan product.
On micro loans front, the company would diversify in under penetrated geographies and
concentrate on acquisition of new customers rather than increasing exposure to existing ones.
The deep database in the rural segment is expected to help in cross sale and right underwriting.
On two wheeler loan segment, the company sees enhanced finance penetration as an
opportunity. In the IDF, the company aims to grow in core infrastructure sector such as
operating projects in renewables and roads.
The margins are expected to be protected through increased use of data for differential pricing,
prudent ALM management, while fee income is proposed be improved through enhanced cross
selling of third party products, diversification, leverage strong database of customers, use of
strong domain knowledge and market leadership to set up alternate investment fund.
The company is putting strong focus on improving productivity through use of data analytics,
improved turnaround time etc. The company would enhance the use of data and analytics, while
continues to invest in digital and analytics.
On asset quality front, the company would maintain conservative provision coverage ratio on
GS3 assets, while building macro prudential provision, for unanticipated future event risks,
during growth periods and to be drawn upon during challenging macro-economic events.
The company would build macro prudential provisions over a period of time subject to a cap of
1.25% of the risk weighted assets.
Dabur India : Going forward international business will

improve.
The company held its conference call on 2 May 19 and was addressed by CEO Mr. Mohit
Malhotra
Key Highlights
Domestic business grew by around 11% in volume terms in FY 19 and for Mar 19 quarter, the
volume growth was around 4.5% YoY. Slowdown in demand and a prolonged winter season
impacted the Hair Care and Foods portfolios; Excluding Foods, growth in Domestic FMCG was
8.5% in domestic volumes for Mar 19 quarter.
International business reported volume growth of around 6.5% for FY 19 with Mar 19 quarter
volumes were up by 1.9% YoY.
Domestic business accounted for around 70% of total sales, 27% sales come from international
market and rest are from others.
Margins were affected due to higher raw material costs and higher promotion expenses together
with higher employee costs and CSR activities.
The company bought higher prices raw material earlier and so gross margin was under
pressure. However the high cost inventory is almost getting consumed.
Positive on consumption trend in India. Increase in Mnrega, tax cuts and other measures in the
interim will increase disposable income and will lead to increase in spends
International operations affected due to decline in Middle East and North American markets.
Adverse currency movements also affected the growth. Middle East markets, the categories
declined in double digits; however company is increasing its market share so the fall is not that
steep as the overall market downfall. Middle East should be back on growth path from H2 FY 20
onwards. North America to grow in single digit as compared to decline in FY 19. Launch new
products, investments already made and should see the growth coming back.
Going forward international business will improve.
The company relaunched Odonil smile, Vatika shampoo bottles and Brahmi Amla oil and
Sarson Amla oil in Mar 19 quarter in India. In international markets, the company launched new
range of Hair Waxes and Hair Mousse in Hobby, Turkey, Vatika Afro Naturals Range in South
Africa, Olive Oil with Black Castor in South Africa, ORS Fix-It Range in USA, Vatika serum in
Egypt and Amla kids in Egypt.
Beverages saw a decline on account of prolonged winter season in North India. Market share
increased by 540 bps y-o-y to touch 56%
Red Franchise continued its growth momentum with Red Toothpaste growing by 17.5% YoY in
FY 19. 75% of the toothpaste portfolio now comprises of Dabur Red. Meshwak saw a single
digit grwoth. Revamp exercise of Babool is underway.
Tax rate in India will remain at MAT levels till FY 25-26. MAT credit taken in Mar 19 quarter
hence overall tax rate was lower which was a one off.
Continue to invest in brands to grow ahead of the markets
Happy with the performance of value added portfolio.
Management expects high single digit growth for FY20.
Larsen and Toubro Infotech : Attrition stood at 17.5%
against 16.5% qoq and 14.8% yoy
Larsen & Toubro Infotech conducted a conference call on 3 May 2019 to discuss the results and
future.
Sanjay Jalona, Chief Executive Officer & Managing Director addressed the call
The company has seen double digit growth for the last three years.
Focus on getting business from large tech companies is yielding results.
It delivered strong revenue growth in a rapidly changing industry environment.
In Q4 in US Dollars terms revenue stood at USD 353.8 million; up 2.0% QoQ and 14.5% YoY.
In constant currency terms revenue growth stood at 1.9% QoQ and 17.5% YoY.
In Q4 in Indian Rupees revenue stood at Rs 2486 crore; up at 0.5% QoQ and 24.2% YoY.
Net Income stood at Rs 378.5 crore; Net Income grew 0.9% QoQ and 30.8% YoY
In FY 2019 in US Dollars terms revenue stood at $ 1,349.1 million; up 19.1%.
In Constant Currency terms, revenue grew 20.9%.
In FY 2019 in Indian Rupee terms revenue stood at Rs 9445.8 crore; up 29.3%.
Net Income stood at Rs 1515.5 crore and it grew 36.2%.
Its sharp focus on amplifying business outcomes for clients is resonating well and enabling it to
win consistently.
It announced two large deals in Q4 with cumulative net-new TCV in excess of $100 million.
LTI acquired NIELSEN+PARTNER (N+P), an independent Temenos WealthSuite specialist,
headquartered in Hamburg, Germany. The company is well-recognized for its market-leading
capabilities in Temenos WealthSuite, including Triple' A Plus, Data Source and Channels
Syncordis, a wholly owned subsidiary of Larsen & Toubro Infotech (LTI), became a global
services partner with Temenos.
The company is focused on building differentiated capabilities and helping customers with digital
transformation.
Number of active clients stood at 343 against 314 qoq and 300 yoy.
New client addition stood at 14 against 17 qoq and 15 yoy.
Onsite accounted for 47.8% of sales against 47.8% in qoq and 45.7% in yoy.
Utilization including trainees stood at 80.1% against 81.1% qoq and 79.9% yoy.
Utilization excluding trainees stood at 81.1% against 83.0% qoq and 81.1% yoy.
Attrition stood at 17.5% against 16.5% qoq and 14.8% yoy. Going forward focus on growth,
competitive salary, good learning infrastructure, and fearless work environment will help reduce
the increase in attrition going ahead.
It is focusing a reducing attrition a lot. The company has launched programmes focusing on
retention right from hire to retire.
The company is working towards how to retain good talent, engage them, train them and
upskilling them.
The acquisition of Ruletronics will strengthen the company's rapidly growing digital business
with a suite of capabilities in Pega implementation in establishing BPM roadmap and strategy,
customer services, RPA and decisioning.
India business has always been project based business. Therefore, there is volatility.
DSO stood at 71 days against 70 days in FY 2019.
It is confident of sustaining its growth in next fiscal on the back of huge opportunities as
companies go digital and its broad-based growth.
Apart from digital transformation, the company has also seen broad-based growth.
The company's verticals grew on average 10-11% year-on-year (YoY) baring CPG, retail and
pharma and hi-tech, media and entertainment that grew close to 33% in FY 2019.
Digital revenue accounts for about 37.9% of sales, and it grew 31%.
The management is very confident of FY 2020. All verticals will grow in FY 2020 including BFS.
It is also carrying out localisation like others and it is putting pressure on the system.
Sales from top client in Analytical, AI and digital space were down due to systemic budget cut. It
is likely to resume from Q2 of FY 20.
Deal pipe line is very healthy.
It will continue to have leadership in growth position in FY 2020.
The management sees strong demand for various service lines.
L&T's takeover bid for Mindtree does not affect L&T Infotech. As far as L&T Infotech is
concerned, nothing changes for it this point of time. It will continue to focus on large accounts,
open new accounts and focus on large deals
It expects its ETR to be at 25.5% in FY 2020.
The company does not give guidance on sales but will strive to maintain margins and increase
sales. It hopes to be one of the leaders in industry sales growth, if not the leader.
Hindustan Zinc : Expects production costs for FY20 to be

under $1000/
Hindustan Zinc conducted a conference call on 2 May 2019 to discuss the financial performance
for the fourth quarter ended March 2019, FY2019, and way forward. Mr Sunil Duggal, Chief
Executive Officer of Hindustan Zinc, and Mr. Amitabh Gupta, CFO of Hindustan Zinc, addressed
the conference call.
● The Company has posted 20% drop in the net profit to Rs 2,012 crore on 13% slide in
income from operation at Rs 5,491 crore for the fourth quarter ended March 2019,
primarily on account of lower metal prices and zinc volume, partly offset by higher lead &
silver volume and rupee depreciation. OPM declined to 690 bps to 51%, thus, operating
profit (OP) dropped by 23% to Rs 2,789 crore. The other income inclined by 20% to Rs
539 crore. Interest cost rose to Rs 51 crore from Rs 8 crore in corresponding previous
quarter. Depreciation cost rose 20% to Rs 553 crore, thus, PBT before EO declined by
24% to Rs 2,724 crore. With NIL EO income during the period as against EO
expenditure of Rs 51 crore corresponding previous period, the PBT after EO dropped
23% to Rs 2,724 crore. The taxation outgo decreased 32% to Rs 712 crore. Effective tax
rate fell to 26.1% from 29% corresponding previous quarter, thus, the net profit declined
by 20% to Rs 2,012 crore.
● The Company mined metal production from underground mines in Q4FY19 was 245kt,
up 24% on account of higher ore production driven by strong growth at Rampura
Agucha, Sindesar Khurd & Rajpura Dariba mines. Total mined metal production was
down 4% on account of closure of open-cast operations in March 2018. For FY19, mined
metal production from underground mines was 936kt, 29% higher from a year ago on
account of 27% higher ore production and better grades, even as the closure of
open-cast operations caused total mined metal production to decline by 1% y-o-y.
● For Q4FY19, integrated metal production in Q4 was 227kt, down 11% from a year ago,
on account of lower mined metal output in first half of the quarter. Integrated zinc
production was 175kt, down 15% y-o-y on account of lower mine output. Integrated lead
production was up 6% y-o-y to 53kt in line with mined metal availability and a higher lead
ratio in the ore. Integrated silver production was a record 191 MT, up 13% y-o-y in line
with lead production and conversion of WIP. For FY19, integrated metal production was
894kt, down 7% y-o-y. Zinc production at 696kt was lower by 12% y-o-y due to lower
zinc mined metal availability during the year as underground mines ramped up to make
up for the closure of open-cast operation and a higher lead ratio in the ore. Integrated
lead and silver production were at record 198kt and 679 MT, higher by 18% y-o-y and
22% y-o-y respectively driven by higher lead mined metal production, retrofitting of pyro
metallurgical smelter in Q2 to produce more lead in line with higher lead mined metal
availability and better silver grades.
● For Q4FY19, zinc metal cost of production before royalty (COP) during the quarter was
$987 (Rs. 69,545) per MT, improving by 1% (3% in Rs) from the previous quarter and
higher by 7% y-o-y (17% in Rs). The sequential improvement was primarily on account
of lower imported coal & diesel prices and higher linkage coal volume, offset by higher
mine development expense and lower volume. The y-o-y increase was mainly on
account of higher mine development & employee cost, lower volume and rupee
depreciation (in case of rupee COP), offset by higher acid & other credits. For the year,
COP was higher by 4% (12% in Rs) at $1016 (Rs. 71,003) per MT and was impacted by
higher mine development, lower metal volume, higher coal & commodity prices, higher
employee cost and rupee depreciation (in case of rupee COP), partly offset by higher
acid credits.
● During Q4FY19, LME Zinc prices declined 21% to $2702 per MT, Lead prices fell 19% to
$2036 per MT, and Silver prices dropped 7% to $15.6/oz. For FY19, LME Zinc prices
declined 10% to $2743 per MT, Lead prices fell 11% to $2121 per MT, and Silver prices
dropped 9% to $15.4/oz.
● During FY19, gross additions of 5.4 million MT were made to reserve & resource (R&R),
prior to depletion of 13.8 million MT. As at March 31, 2019, the combined R&R were
estimated to be 403 million MT, containing 34.6 million MT of zinc-lead metal and 965
million ounces of silver. Overall mine life continues to be more than 25 years.
● The Company expects both mined metal and finished metal production in FY2020 will be
higher than last year and expected to be about 1.0 million MT. The Company expects to
complete the underground mine expansion plan announced in early 2013 towards the
end of Q2 of FY20, quadrupling the Company mined metal production capacity to 1.2
million MT per annum.
● The Company expects zinc cost of production in FY2020 to be under $1000 per MT.
Costs would decline in 2HFY20E once RA and SK shaft commissions in 1HFY20E. The
Company expects higher volumes (operating leverage gains), increased linkage coal
sourcing from Coal India as well as higher credits from the sale of scrap to aid costs in
1QFY20.The guidance of FY2020 silver production is in the range of 750 MT to 800 MT
for FY2020E versus 679 MT in FY19. The increase in silver production will be led by
higher ore production from SK mine which has rich silver grades. The company has also
received environmental clearance for Silver at its Pantnagar metal plant from 600 MT to
800 MT. The project capex for the year will be in the range of US$350 to US$400 million.
● The Company FY2019 capex stood at US$330 million (US$400-450 mn per earlier
guidance). Lower capex was due to delay in a few projects including the shaft
commissioning at Rampura Agucha underground mine. The company expects FY20
capex at US$350-$400 million.
Expansion Projects
Update on ongoing expansion projects
● The Company announced mining projects are nearing completion and expected to reach
1.2 million MT per annum of mined metal capacity in FY2020.
● Capital mine development increased by 20% y-o-y to 12.4 km in Q4 and up by 12% to
43.1 km for the year.
● At Sindesar Khurd, the underground crusher and production shaft were commissioned in
Q4 and ore hoisting from shaft is expected to start next month. The second paste fill
plant is under mechanical completion and expected to commission shortly.
● At Rampura Agucha, the second paste fill plant was commissioned ahead of schedule
during Q4. The full shaft commissioning is expected to complete by Q2 FY2020
synchronising with the completion of crusher and conveyor system.
● At Zawar, the new 2 Mtpa mill was commissioned during Q4 while the dry tailing plant is
under execution and expected to commission in Q2 FY2020.
● The fumer project at Chanderiya is under mechanical completion and is set to
commission next month.
● Pantnagar Metal Plant received Environment Clearance (EC) to increase silver
production from 600 MT per annum to 800 MT per annum
● In the wake of recent global incidents related to tailing dams, the Company is also
reassessing structural integrity of all its tailing dams with the help of global experts.
● Planning for the next phase of expansion from 1.2 to 1.35 mtpa mined metal capacity
announced in April 2018 is underway.
Liquidity and investment

As on March 31, 2019, the Company's cash and cash equivalents was Rs. 19,490 Crore
invested in high quality debt instruments and the portfolio continues to be rated "Tier –1"
implying Highest Safety by CRISIL. During Q3 FY2019, the Company borrowed Rs. 5,000 Crore
of short term commercial paper to meet cash flow mismatch for special interim dividend funding
requirement. Of this, Rs 3,000 Crore of commercial paper was paid off during last quarter. The
net cash and cash equivalents at the end of the year was Rs 16,953 Crore as compared to Rs
20,395 at the end of FY2018.
Blue Star : Price increase, cost rationalization and

product mix helped better unitary product margin in
Q4FY19
Blue Star hosted a conference call on May 3, 2019. In the conference call the company was
represented by Neeraj Basur, Chief Financial Officer.
Carried Forward Order Book for overall company as on March 31, 2019 stood at Rs 2430 crore,
a growth of 21% from Rs 2015 crore as at March 31, 2018.
The prospects of the Electro-Mechanical Projects and Packaged Air Conditioning Systems
segment are good with a healthy order book. Expect construction activity to pick up momentum
after elections driving order inflow for EMP.
EMP Carried forward order backlog as end of March 31, 2019 was at Rs 1716.2 crore, a growth
of Rs 22.4% from about Rs 1401.97 crore as end of March 2018. EMP Order booking (order
inflow) for FY19 was about Rs 2951 crore, a growth of 18.5% from Rs 2490 crore in FY18.
The company clocked an EBIT margin of 5.5% for FY19. Improved order booking in FY19 has
not translated into margin improvement given current market conditions. Considering that the
project business of the company being largely a tender business and the market conditions the
company expects the margin to be around 5.5%-6% for EMP segment for FY20.
Growth in revenues and profitability of Professional Electronics and Industrial Systems (PEIS)
business segment in FY19 were driven by supply of CT scanners to the Government of Uttar
Pradesh and increased revenues in the Non-Destructive Testing Products & Systems as well as
Industrial Automation businesses.
Normal sustainable EBIT margin for Professional Electronics and Industrial Systems business
will be about 12-15%. The execution of large UP order has lifted the EBIT margin of PEIS
segment to about 20.1% in FY19. The company sees several shorter projects for this segment
under pipeline.
Room AC industry in FY19 was expected to have de-grown by about 4-5%. But the company
had registered a growth of 3% for FY19. The company has increased its market share to about
12.3% in FY19 from about 11.5% in FY18.
Unitary cooling products segment margin improved in Q4FY19 quarter to 10.4%, largely due to
better product mix in Room ACs, rationalization, price increase in select models and better mix
in commercial refrigeration and water purifiers.
Rationalization is largely toward Cost structure rationalization particularly in sales and
marketing. Price increase by the company was effected in Q3FY19 and the full benefits of it got
reflected in realization in Q4FY19.
Unitary cooling products segment margin for FY19 was impacted to the tune of 150 bps towards
investment on water purifier relating to product development and marketing/advertisement. The
impact of water purifier was largely happened in Q2 & Q3 of FY19 and relatively less in Q4.
Room AC inventory levels has normalized for the industry and for the company the normal
inventory level was reached in Q3FY19 itself.
Weather in major parts of the country turned favorable and thus the demand for Room ACs
looks encouraging. So with favorable weather and normal inventory level in the industry, the
company expects normal Q1 for current fiscal.
Thus with the onset of summer in most parts of the country and introduction of several
innovative and competitive products, the outlook for the Cooling Products segment of the
company is positive.
With water purifier scaling up the company expects unitary products margin to get back to 9%
margin levels going-forward.
Room AC- The company is expanding its reach. The western and northern market is of equal
size for the company now.
Deep freezer the company with a market share of 28-29% leads the market. Similarly the
company has a market share of about 30-35% for water coolers.
The company's market share is currently about 2% and the company expects a market share of
about 10% in two year time. The company has 2000 plus touch points and additionally online
presence in case of water purifier.
The company started assembling indoor units in its pursuit towards increasing localization.
However the company is not going to manufacturing in-house components such as
compressors etc.
Inverter share is growing with-in Room AC and it stays for about 35% for the industry and about
45-47% for the company. The company expects this figure to stabilize around 65-67% of Room
AC market.
Demand and order inflow in Professional Electronics and Industrial Systems business is
encouraging.
Net borrowing come down to Rs 246 crore as end of March 31, 2019 from about 294.71 crore
as on march 2018.
Of the EMP order book office accounts for 41.8%, metro 5.2%, industrial 12.7%, power
generation 2.9%, malls 6.3%, mixed use 5.4% and balance are others.
Regular capex for FY20 will be Rs 100 crore. The company is expanding capacity at its Wade
plant (commercial refrigeration) and the capex for it will be Rs 80-90 crore which will be spent
over next 12-15 months.
Oman Joint Venture (Blue Star Oman Electro- Mechanical Co. LLC) - the Company is
considering options for exit from the venture. The Company has on April 09, 2019 filed a petition
for liquidation of the venture before the appropriate jurisdictional court in Oman. The Company
has already made provision for its known financial obligations and committed financial
involvement in the venture in Q3FY19.
Godrej Consumer Products : Expects to come back

strongly in FY 2020
Godrej Consumer Products held its conference call on 3 May 2019 to discuss results and future.
The call was addressed by Nisaba Godrej, Executive Chairperson of the company.
In 4Q FY 2019 consolidated constant currency sales increased 4% year-on-year.
In 4Q India business sales were flat at Rs 1325 crore year-on-year.
In 4Q International business sales grew 10% year-on-year, on a constant currency basis.
The company delivered a relatively weak performance in Q4 of FY 2019.
India business remained soft on account of a general slowdown in staples consumption and the
adverse impact of the delayed summer.
Indonesia continued its strong profitable growth momentum.
Africa had a soft performance, led by the temporary slowdown in Nigeria due to elections and a
gradual recovery in South Africa.
Latin America's performance continued to be impacted by an adverse macroeconomic
environment and a hyperinflationary environment.
In FY 2019 the company continued its innovation momentum in India, with the mosquito
repellent incense sticks scaling up well in pilot markets.
In Indonesia, it cross pollinated the Stella car twist from India to expand presence in the Air
Freshener category.
It also launched a naturals range of wet hair care products in Africa.
Mosquito incensed sticks are doing well. It will launch it more aggressively in the middle of the
current quarter.
In FY 2020 the company is planning for robust sales growth in India on the back of a continued
focus on innovations and enhancements to its go-to-market model.
In FY 2020 it hopes to continue driving profitable sales growth in Indonesia.
In FY 2020 in Africa it will focus on profitable sales growth.
In FY 2020 it hopes to ensure a meaningful turnaround in Latin American business
In 2020 will focus more on innovation.
In Africa focus will be on profitable sales growth.
Post election consumer sentiment will again is expected to go up.
Household Insecticides delivered a soft quarter due to an extended winter.
Naturals neem incense stick is scaling up well in Andhra Pradesh and Telangana and it plans to
launch it in a few other states shortly.
The company will continue with the consumer offer on liquid vapourisers and scale up incense
sticks to drive growth in the near term.
Soaps sales growth was adversley impacted by a delayed summer. In Soaps it continues to
gain market share. MS grew by 70 bps yoy due to effective micro-marketing initiatives and
impactful consumer offers.
In Hair Colours it continued to gain market share in Q4.
Godrej Expert Rich Crème continues to consistently deliver robust growth and has achieved its
highest ever market share (on an exit basis).
The temporary promotional price off in Godrej Expert Rich Crème has been rolled back. It will
focus on activations and effective media campaigns to recruit new consumers to the category.
Godrej Nupur Herbal Based Powder hair colour is scaling up well.
It recently launched Godrej Expert Easy 5 minute shampoo hair colour in South India.
Indonesia business continued its growth momentum and delivered a constant currency sales
growth of 14%.
Indonesia business growth was driven by improvement in Household Insecticides and Air
Freshner businesses.
In Indonesia it maintained market leadership position in Household Insecticides and continued
to gain market share on a year-on-year basis.
Its GAUM (GAUM includes Africa, USA and Middle East) cluster had a soft performance with a
constant currency sales growth of 5%. Sales in the quarter was impacted by temporary
slowdown in Nigeria due to elections.
South Africa is showing gradual signs of recovery.
The East Africa, US and Rest of Africa cluster continued to deliver strong growth.
The company expects to come back strongly in FY 2020.
In 2020 it hopes to grow faster than category growth in the core categories of soaps, hair colors
and household insecticides.
2020 will be the year of turnaround for its HI business.
Going forward it will give added focus on emerging channels while improving effectiveness in
general trade.
It also plans to scale up cost savings programs going forward.
In 2020, in Indonesia it will fast track growth in emerging categories like hair care, fabric care
and car cleaners.
It will invest in few South East Asian markets to scale up exports growth.
In GUAM it will go for aggressive sales growth in braids format of hair extensions and
premiumise by expanding into higher value non braids formats by adopting fast fashion model.
As of now there is no necessity to impair any of its international business.
The margins expansion is not coming because of reduced investments.
L&T Technology Services : L&T Technology Services
held its conference call 3 May 2019 to discuss results and
future.
The call was addressed by Keshab Panda, CEO & Managing Director of L&T Technology
Services.
On sequential basis, L&T Technology Services saw 2% rise in consolidated sales to Rs 1343.10
crore for the quarter ended March 2019. OPM rose 10 basis points to 18.5% which took OP up
3% to Rs 248.10 crore.
PAT went up 3% to Rs 192.40 crore.
On y-o-y basis, sales were up 27% and OPM jumped 290 basis points. OP was up 51%. PBT
grew 31% and PAT was up 21%.
In FY 2019, consolidated sales grew 36% to Rs 5078.30 crore. OPM improved 270 basis points
to 18.0% which took OP up 59% to Rs 914.70 crore.
PBT grew 52% to Rs 1031.40 crore. PAT went up 52% to Rs 768.40 crore.
In Q4, it continued the growth momentum with 2% QoQ growth in revenues.
Q4 saw 9 multi-million dollar deal wins.
Q4 saw an increase in $50mn+ clients by 2, $10mn+ clients by 4 and $5mn+ clients by 10, on
YoY basis.
In Q4 EBITDA margins were sustained despite the appreciation in the rupee.
Sales growth was aided by margin growth too.
The management was happy with performance in FY19. It closed the year with $ 723 mn in
revenue – which is an industry leading growth of 26.5%YoY.
Growth in FY 2019 was more blended. It also achieved its twin objectives of broad-based and
double-digit growth in all 5 of its industry segments.
Digital & leading-edge technologies were the growth driver and grew 58% YoY and contributed
to 33% of revenues in FY19, demonstrating success in aligning with the industry trends.
Operational metrics too showed an improvement.
Transportation was up7% qoq in Q4 and 25 % in FY19. Growth was led by multiple large deal
wins. This segment saw good growth in auto and retail. Auto component is becoming complex
and companies are investing in digitizing the same.
In aerospace it is the preferred engineering partner. Good growth in this segment is expected to
continue in FY20 also.
Q4 was subdued for telecom and hi-tech segment but FY19 was good. Q1 will be soft but the
FY 20 will be good.
In media and entertainment it has expertise in video domain which is helping it get deals in both
frontend and backend. It broad based its media business in FY19.
Medical grew 7% qoq in Q4. In FY19 it grew 23%. It is on good position to grow in FY20. Its
expertise in end to end product design is helping it to get good end to end solution business.
Process business continues to see good momentum. In last 6 quarters it has grown 8% qoq.
Process segment is participating strongly in businesses like environment, safety compliance etc.
It is doing plant engineering for many large companies.
Industrial Product saw muted Q4. FY19 growth was good at 10%. Digital is priority for the
customers in this segment. Many projects are moving from developing stage to full
implementation stage. This segment is focusing on developing strong products. This segment is
targeting double digit growth in FY 20 also.
Platform and solution business saw success in NBIoT (Narrow Band IoT) and IBM business.
Its strategy of continuously investing in new capabilities, cross-pollinating innovation across
industry segments, and a deep understanding of core engineering disciplines has enabled it to
participate in larger and more strategic engagements with its customers.
It believes that the company is well positioned to partner customers in their key priorities of
digital transformation, product modernization and R&D productivity improvement.
IDC, the global market intelligence firm in its recent profile on LTTS' Product Engineering and
Operational Technology, commended its track record of building competencies across
innovation accelerators (digital) and creating new patents and IPs.
Overall for the company, the deal pipeline is healthy across geographies and verticals.
Last two years it guided for double digit sales growth and it grew 20%.
In FY19 it guided for 16% growth which was then revised to 24%. It ended the year with 26%
sales growth.
For FY20, it expects $ revenue growth to be in the range of 14-16%. FY20 revenues will be
negatively impacted by around 4% by its 1 customer in hitech and telecom segment. The
management is reasonable confident of achieving the lower end of the guidance. Upper end is
achievable if it successfully ramps up and win new deals as per expectation.
The company is taking orders where it has chances of scaling up margins over the process of
the deal.
Growth and efficiency will help pursue better margins.
Tax rate will be around 26% in FY20.
Major part of cash flow is hedged at Rs 72.4 per dollar.
ROE stood at 35% for the year.
With customers increasing digital spend, investing more in disruptive technology and
re-evaluating spend effectiveness, the company is seeing new opportunities and avenues for
growth.
At the end of Q4, the patents portfolio of L&T Technology Services stood at 399, out of which
288 are co-authored with its customers and 111 are filed by LTTS.
36 new patents were added in the quarter with 12 being filed by LTTS and 24 co-authored with
customers.
Federal bank : In Q4, for the first time it saw that
slippages were lower than recovery
Federal Bank held its conference call on 4 May 2019 to discuss results and future prospects.
Shyam Srinivasan Managing Director & CEO of the Bank addressed the call:
Federal Bank saw marked improvement in performance due to many of the initiatives it carried
out in the past couple of years.
RoA, which was lagging in the last 2 years, is now picking up.
The Bank has delivered a robust operating performance, founded firmly on the strong growth
momentum in both credit and liabilities.
The tight performance of the Bank on the slippage front along with disciplined recovery has
contributed significantly towards meeting the objectives of the quarter.
Federal Bank saw highest ever annual net profit of Rs 1243.89 crore (up 41.54%) and quarterly
net profit of Rs 381.51 crore (up 163.13%).
Total business of the Bank registered a growth of 20.28% to Rs 246783.61 crore.
Deposits grew 20.50% to Rs 134,954.34 crore.
Highest ever Recovery/ Upgrades of Rs 323 crore` and significant reduction in Slippages
resulted in GNPA and NNPA falling. In Q4, for the first time it saw that slippages were lower
than recovery.
Asset quality improved substantially with GNPA at 2.92% and NNPA at 1.48%.
In FY 2019 Retail advances recorded a growth of 24.79% to Rs 31,741.96 crore.
In FY 2019 NRE deposits grew by 17.66 % to reach ₹ 50,109.16 Cr
Credit cost improvement was substantial. The improvement was structural and due to many
Initiatives it took in the past. There is nothing one off in it.
Both credit and deposit growth were robust at 20%.
Growth in retail and corporate varied but it was by choice.
Retail growth was good at 33%. Auto loans grew 62.04%, Personal loans grew 143.08% and
housing loans grew 32.16%.
Corporate growth saw good progress in last 3 years. Commercial banking has been performing
well since last 2 quarters.
It has no exposure in large corporate groups like Essel, Rcom or Rinfra. However it has
exposure in home finance of Rcap which is at low double digits.
Fee income saw good growth and it was structural. Life insurance, general insurance etc did
well.
Quarter RoA stood at 1.02% and FY 2019 RoA stood at 0.88%. It targets RoA of 1.25 in 2021.It
targets to improve RoA by 10-12 bps every quarter.
In credit cost, operating leverage is more visible.
During the quarter it earned interest income if Rs 18 crore on income tax refund.
Credit Cost was contained at 0.51% even while increasing the PCR to 67.16%. Credit cost
target is of 55-60% for FY 20.
It is staying from power and telecom businesses.
Target is to have wholesale retail ratio of 50:50 over even 53:47 over a period of time.
Loan growth should be 20-22% every year for the next two years. There are chances of the
growth being higher. Clear view would be available only by Q3.
At this juncture is not envisaging any lumpy provisioning in any quarter.
It has around 700 relationship managers.
NIM was 3.17% in FY 2019 which should improve to 3.20% in FY 20.
Other income run rate in FY20 should be same as in FY19. There was nothing one-off in it and
so its scalable. Other income includes fees earned from providing services to customers,
commission from non-fund based banking activities, earnings from foreign exchange and
derivative transactions, selling of third party products, profit on sale of investments (net),
recoveries from advances written off etc.
The Capital Adequacy Ratio (CRAR) of the Bank, computed as per Basel III guidelines, stood at
14.14% as on March 2019.
The Net Worth of the Bank is at Rs 13273.04 crore as on March 2019.
The Bank has 1251 branches, 1669 ATMs and 269 Cash Machines as on March 2019.
The Bank also has its Representative Offices at Abu Dhabi and Dubai and an IFSC Banking
Unit (IBU) in Gujarat International Finance Tec-City (GIFT City).
Market Share in Advances reached 1.13%, up by 7 bps as on March 2019.
Market Share in Deposits reached 1.03% up 8 bps as on March 2019.
It saw considerable reduction in total stressed book which stood at Rs 2581 crore and 1.71% of
average total assets.
At the end of Q4 restructured assets stood at Rs 1090 crore against Rs 1150 crore.
Hindustan Uniliver : Short term demand looks soft,

improvements expected as the year progresses.
The company held its conference call on 3 May 2019 and was addressed by Sanjiv Mehta CMD
Key Highlights
Underlying volume growth stood at 7% on YoY basis for Mar 19 quarter.
Growth rates have moderated given weak macro economic conditions particularly in rural areas.
Slowdown was more accentuated in Feb and March vis a vis Jan 19 month.
Rural growth has decelerated to 1.1X urban growth as compared to 1.3X in the previous
quarters. The management expects near-term demand for FMCG industry to be soft in view of
weak macro
At this moment as per the management, it is difficult to determine when the buoyancy will return
back in the economy. Liquidity was tight given the elections.
Expects stable monsoon for FY 20 which should help in sentiment.
Right government intervention can help in bringing back the sentiment.
Margins have improved due to better product mix. However from the current levels of margins,
further improvement looks relatively modest.
Home care segment reported better margins driven by improved product mix and sales of fabric
wash and household care. During the Mar 19 quarter, the company launched Surf Excel easy
wash liquid and Pureit copper RO purifier.
Premiumization and market development initiatives in fabric wash, upgradation to liquids in dish
wash and increased penetration of bars in household care led to better overall growth in FY 19.
In beauty and personal care, premium brands continued growth momentum but the popular
segment delivered below expectations. Personal products portfolio did well but growth in
personal wash category was muted partly due to weak performance of Lux and Lifebuoy.
While Dove, Liril and Hamam brands are growing well, performance of Lux and Lifebuoy has not
been meeting expectations. HUL has re-launched Lifebuoy and is about to re-launch Lux with a
new communication. The company has also reduced prices of these two brands to spur growth.
HUL has rolled out a number of ice creams (such as Aam Ras, Shahi Kulfi, etc) leveraging
capabilities of its own brand Walls and recently acquired Aaditya milk.
Some progress in its Water purifier portfolio restructuring strategy.
Competitive intensity has not changed in the past 3-4 months.
Higher receivable days was due to elevated receivables pertaining to distribution channel as at
FY 2019 end. The management indicated that receivable cycle of the distribution channel has
improved from April 19 onwards.
The company expects integration of GSK CH in the December 2019 quarter subject to
regulatory approvals (few received, few pending).
Tax rate will keep on increasing as tax advantages continue to lapse. For FY 20 the tax rate will
increase by 100 bps YoY.
Overall short term demand looks soft. Improvements expected as the year progresses.
Ecommerce channels accounts for around 3% of turnover and focus continued to remain high.
Bandhan Bank : Cost-to-income ratio lowest in banking

industry
Bandhan Bank conducted a conference call on 02 May 2019 to discuss the financial results for
the quarter ended December 2018. Chandra Shekar Ghosh, MD&CEO of the bank
addressed the call:
Highlights:
The bank has completed three-and-half years after starting banking operations and one-year
after listing.
The bank has posted robust growth in net interest income at 46% in Q4FY2019 and 48% in
FY2019. The NIM has improved to 10.4% in FY2019. Cost of funds has declined to 6.30% in
FY2019 from 6.65% in FY2018.
The bank has improved CASA deposits ratio 40.8% end March 2019 from 34.3% end March
2018. The share of retail deposits has improved to 77% from 71.9% a year ago.
The cost of saving deposit rate stood at 5.16% end March 2019.
About 75% of branches of the bank are in unbanked districts, so provides strong growth in retail
deposits. The retail deposits from central region have jumped 45%, west 41%, east 39%, north
31%, south 30% and northeast 22% in FY2019.
The bank has exhibited healthy improvement in asset quality, while GNPA ratio excluding
IL&FS, has declined to 1.08% end March 2019 from 1.30% end December 2018.
Collection performance has improved 99.3% in FY2019 from 98.7% in FY2018.
The fresh slippages of loans stood at Rs 763 crore in FY2019, which includes exposure of Rs
385 crore IL&FS. The GNPA in the microfinance loan book has declined to 0.7% end
March 2019 from 0.81% end December 2018.
The bank does not expect any slippages in the coming quarter due to the cyclone Fani.
Non-interest income jumped 91% to Rs 388 crore in Q4FY2019 and 51% to Rs 1063 crore in
FY2019. Within the non-interest income, the processing fee was Rs 197 crore and PSLC fee
was Rs 105 crore for Q4FY2019, showing surge from processing fee of Rs 153 crore and PSLC
fee of Rs 4 crore in Q4FY2018. The processing fee was Rs 523 crore and PSLC fee was Rs
309 crore for FY2019.
The overall customer base of the bank has increased 28% to 1.6 crore end March 2019 from
1.30 crore end March 2018. The branch banking added 10.52 lakh customers taking the count
to 34.69 lakh end March 2019. The microfinance loan customers increased 24% to 1.31 crore
end March 2019 from 1.06 crore end March 2018.
The average disbursement in the microfinance loans was Rs 59007 in Q4FY2019 against Rs
51771 crore in Q4FY2018 and Rs 58000 in Q3FY2019. The bank has 4+ loan cycle customers
accounting 55% and 60% of the customer have single loans from the bank.
The exclusive customer base of bank has moderated from 72% to 60%, as company does not
provide any additional loan till the customer pays existing loan totally.
The growth in the active borrower earlier were primarily from 4 states Tripura, Assam, Bihar and
West Bengal, while the growth of borrowers is expanding in other states as well. The growth of
customers for East and North East was 16% and other states recorded robust 37% growth.
The bank has exhibited improvement in cost-to-income ratio, which is lowest in the industry,
driven by strong income growth, while opex to asset ratio has remained flat at 3.6% in FY2019.
The bank does not provide contingent provisions as it provides additional standard asset
provisioning on micro finance loan book, the bank has provided 1% provision as against RBI
guidelines of 0.25%. out of the total provision during the quarter around Rs 50 crore were
related to standard asset provisions.
The bank has network of 986 branches end March 2019, while added 50 branches in FY2019.
The bank has also added 250 door step service centers (DSCs) taking total DSCs to 3104 and
raising overall banking outlets count to 4000 end March 2019.
Bank had applied for opening of 40 branches in first phase and 25 branches in second phase
during the year, of which 48 branches have already been opened and remaining will open in
next two-three months.
The bank has received RBI, SEBI, CCI approval for merger with Gruh Finance and applied to
the NCLT, while the bank would look to merge Gruh Finance as soon as possible and start
working after final approval is received.
Everest Industries : Expects around 10% growth in both

segments in FY 20
The company held its conference call on 6 May 2019 and was addressed by Mr. Manish Singhi
Managing Director.
Key Highlights
The company was able to increase its market share in roofing and building product segment.
Increase in distribution reach and marketing efforts have ensured better reach across India.
So far the company has not seen any slowdown for its products in rural India. Demand is good.
But due to elections some postponement and lower offtake can be visible.
The company has built up inventory for pre monsoon demand. While dependency on monsoon
has come down for overall building product demand, it would surely help in building up
momentum and realization.
Raw material prices are a worry for the company. There is a 5% increase in price of crysolite
fibres on YoY basis and around 6% rupee depreciation so a total of around 11% increase in
landed costs on YoY basis.
Pulp prices on the other hand have decreased from 950 tons to around 750 tons. So that's good
for the boards and panels division. The company is operating at around 85% of capacity and
there are no plans for increasing capacity. Demand continues to remain good.
Steel building has an order book of 20000 tons, marginally lower on YoY basis as on Mar 19.
This is largely due to postponement of demand due to elections. Expects demand to come back
after June 2019 onwards.
The company has capacity of 5000 tons in steel building and through debottlenecking it can
increase it to 6000 tons. Expects margins to improve in this segment going forward.
Expects around 10% growth in building product segment and also 10% in steel building
segment for FY 20.
Rural demand, increase in MSP prices, increase in distribution reach will ensure better FY 20 for
the company.
Expect margins to remain stable despite headwinds
Export demand from Middle East should come back with increase in oil prices.
LIC Housing Finance : Targets loan book and disbursements
growth of 15% for FY2020, improve asset quality by
September 2019
LIC Housing Finance conducted a conference call on 06 May 2019 to discuss its financial
results for the quarter ended March 2019. Vinay Sah, MD&CEO of the company addressed
the call:
Highlights:
The company has maintained its growth trajectory in the FY2019 despite severe challenges in
the financial sector in terms of tight liquidity conditions. The loan book of the company has
increased 16% to Rs 194646 crore end March 2019 over Rs 167467 crore end March 2018,
driven by core individual loan portfolio rising 14% to Rs 181569 crore end March 2019 from Rs
159350 crore a year ago. Developer loan portfolio increased to Rs 13077 crore end March 2019
from Rs 8116 crore end March 2018.
The disbursements increased 7% to Rs 18649 crore in Q4FY2019, with disbursement rising in
the core individual home loan segment by 18% to Rs 12448 crore, while disbursements in
project loans were lower at Rs 2031 crore as against Rs 2266 crore for Q4FY18.
The total disbursements for the company moved up 12% to Rs 55315 crore in FY2019 from Rs
49379 crore in FY2018 with disbursements in the individual home loan category rising 10% to
Rs 37618 crore from Rs 34318 crore.
The company is selective and taking exposure to only quality projects in the developer loan
book. The company maintains its focus on developer loan segment and targets disbursements
of Rs 8000-9000 crore for FY2020 as against Rs 7128 crore (across 105 cases including part
disbursement to earlier cases) in FY2019.
The company is targeting loan book growth as well as disbursements growth of 15% for
FY2020.
During the year, the company has done exceptionally well in the area of affordable housing
wherein more than 45000 accounts were disbursed. The company would be opening 9 new
marketing centres in FY2020 with a specific focus on affordable housing mostly in tier II and II
locations.
The company started direct marketing executives channel for loan sourcing in FY2019, which
contributed business of Rs 700 crore. The company would further strengthen cost effective
direct marketing executives channel in FY2020.
The company has witnessed consistent decline in pre-payment rate, which has declined to three
year low.
The company has exhibited improvement in Net Interest Margins (NIM) to 2.54% for Q4 FY19
from 2.44% for Q4FY18. NIM has improved to 2.36% in FY2019 from 2.25% in FY 2018.
The company witnessed 4 bps rise in cost of funds to 8.53% in Q4FY2019, which has been
passed on to the customers. The company has raised its lending rate by 10 bps in Q4FY2019
and 70 bps in FY2019. The lending rates were increased by 20 bps each in April 2018, August
2018, October 2018 and by 10 bps in January 2019.
The yield on loans stood at 10.3-10.4% in Q4FY2019. The company aims to improve margins
by 5-10 bps in FY2020.
The company has witnessed increase in Gross stage 3 assets including developer loans to
1.58% end March 2019 from 1.25% end December 2018, mainly on account of transition of
Gross Stage 2 assets to Gross stage 3 assets. The Gross Stage 2 assets have declined 56 bps,
while Gross Stage 1 assets improved by 23 bps in Q4FY2019.
The company is maintaining strong focus on asset quality, while expects most of the increase in
NPAs to upgrade by September 2019 and improve asset quality.
The NPA coverage ratio of the company was lower on account of near term recoverability of
NPAs.
The company does not have any exposure to account under NCLT.
Tata Chemicals: Plans to get into Lithium ion business

Tata Chemicals conducted conference call to discuss results for the quarter ended March 2019.
Mr. R Mukundan, Managing Director and Mr. John Mulhall, Chief Financial Officer of the
company addressed the Call.
India business continues to perform as per expectation. FY2019 revenues was up 25% stood at
Rs 853 crore due to higher sales volumes in soda ash and Sodium bicarbonate and better sales
realization, which was partly offset by higher power cost and plant fixed costs.
Domestic demand remains balanced with pockets of tightness witnessed in the market in the
previous quarter
TATA Chemicals North America business is on the path of recovery. Revenues were up 6% at
Rs 870 crore due to favorable sales realization, which was partly offset by lower sales volumes.
Margins were impacted on account of higher distribution costs and other fixed cost.
TATA Chemicals Europe business was under pressure due to lower sales volumes, partly offset
by favorable sales realization. Revenues were up 4% at Rs 381 crore. Margins were
suppressed due to higher energy cost and plant fixed costs.
TATA Chemicals Magadi business continues to focus on improving operational efficiencies.
Revenue was up 4% at Rs crore due to higher sales realization. Margins were better due to
lower fixed cost, which was partly offset by higher fuel cost.
Salt Business continues to maintain its leadership position, with more than 25% market share in
edible salt market and approximately 65% market share in branded salt market.
Revenues from Pulses and Spices platform grew by more than 100 % during the period, with
volumes doubling in both the category for the same period.
Overall, Revenue from Consumer Products business was up 19% at Rs 479 crore mainly due to
higher sales volume across category and controlled marketing investments during the period.
Tata Chemical has expanded the scope of consumer business by entering into non-foods
segment. The company has launched detergent power which as of now is in test phase in West
Bengal. The company will continue to test the product in West Bengal throughout the year
before getting into other regions.
Tata Chemical consumer business near term plan is to attain a turnover of Rs 5000 crore in the
consumer segment with Rs 450 crore contributed by salt, pulses and spices
Nutritional solutions business had a challenging quarter, as revenue where marginally impacted
due to lower sales volumes. Margins were also impacted due to higher fixed costs primarily due
to marketing overheads.
Rallis India also had a challenging quarter, as revenue were down 9% at Rs 340 crore on
account of lower sales volumes and sales realisation. Margins were also impacted due to higher
fixed cost and higher import prices of materials.
The Nellore plant for nutraceuticals is in final stage of commissioning. The plant will go through
pilot production and the company is targeting commercial production by the end of Dec'19.
The company plans to get into three segments in Lithium ion business viz. a) manufacturing of
batteries (cell), b) recycling of batteries, and c) chemical coating which goes into making
batteries. The estimated supply time is 2021-22, but it depends on the ramp up by auto players
and arrival of commercial orders. The company has also hinted at getting into manufacturing
battery pack at later stages.
Consolidated net debt stands at Rs 1960 crore as on Mar'19.
Marico : Aims to build Healthy Foods, Premium Hair

Nourishment and Male Grooming into growth engines of
the future
Marico held its conference call on 6 May 2019 to discuss the results and future. Saugata Gupta,
MD & CEO of the company addressed the call.
FY19 ended on a positive note as the company delivered healthy top-line and profit accretion
with underlying volume growth in line with medium term aspiration.
For the quarter ended March 2019, net sales grew 9% to Rs 1609 crore. OPM improved 50
basis points to 17.5% which saw OP growth at 12% to Rs 282.00 crore. PBT increased 11% to
Rs 273.00 crore. PAT grew 19% to Rs 217.00 crore.
Prior period tax credit was Rs 188 crore against NIL after which net profit grew 121% to Rs
1405.00 crore.
In FY 2019, net sales grew 16% to Rs 7334 crore. OPM fell 50 basis points to 17.5% which saw
OP growth at 13% to Rs 1280 crore. PBT increased 13% to Rs 1263 crore. PAT grew 15% to
Rs 947 crore. Prior period tax credit was Rs 188 crore against NIL after which net profit grew
37% to Rs 1135 crore.
In Q4FY19, there was a write-back of tax provisions amounting to Rs 188 crore pursuant to a
favorable resolution of tax proceedings pertaining to earlier years.
Quarter saw underlying domestic volume growth of 8% and constant currency growth of 7% in
the international business.
FY 2019 saw underlying domestic volume growth of 8% and constant currency growth of 9% in
the international business.
Bangladesh grew by 12% in constant currency terms, led by robust growth in the non-Coconut
oil portfolio in line with the stated diversification strategy. Vietnam grew by 13% in cc terms, led
by the Home and Personal Care business. Middle East and North Africa posted a growth of 5%
in cc terms. South Africa had a muted quarter.
The company continued to introduce innovations in the market in Q4 with products in Power
breakfast range, organic food offerings under the Coco Soul franchise, Charcoal range of Male
grooming products under the Set Wet Studio X franchise etc.
Rural maintained a lead over urban in the traditional channel, while the new-age channels of
Modern Trade and E-Commerce continued to grow speedily.
Advertising & Sales Promotion spends stood at 9.5% of sales in Q4 and was up 29% YoY, as
the Company invested behind the extensive line-up of new products brought to market during
the year.
In Q4, the domestic business turnover grew 7% to Rs 1240 crore. The underlying volume
growth was 8%.
In FY 2019 Indian business clocked a turnover of Rs 5756 crore, a growth of 16%. Profitability
for the year was subdued by the gross margin contraction in the first half of the year due to
sharp inflation in input costs.
Value Added Hair Oils grew by 1% in volume terms, owing to underperformance in the premium
segment.
Premium Hair Nourishment grew 38% in Q4 and 55% in FY19 in value terms.
During the quarter, the average market price of domestic copra was down 19% Y-o-Y. With the
onset of the flush season, prices have softened on expected lines after the sharp spike due to
the aftermath of Cyclone Gaja in Tamil Nadu late last year.
Its portfolio of Saffola edible oils volume grew 18% in Q4, as compared to 2% in the preceding
quarter.
The net surplus of the Group as on March 2019 was about Rs 613 crore.
ETR for FY19 (excluding one-off write-back) was 25.0%. In FY20, ETR is expected to be in line
with FY 2019.
MAT credit as on March, 2019 stood at Rs 182 crore and is expected to be utilised by the
company in the coming years.
For FY20 and beyond, the company retains the target of 8-10% volume growth and healthy
market share gains in the India business. The company aims for a topline growth of 13-15%
(depending on inflation) over the medium term.
There could be marginal deflation in FY20.
FY 2019 saw positive consumer sentiment in rural area. Considerable political intent to
structurally alleviate agrarian distress, improve rural infrastructure and increase disposable
income levels in the hands of the rural consumer bodes well for consumption over the medium
term
Food inflation does not appear to be a cause for concern.
It aims to build Healthy Foods, Premium Hair Nourishment and Male Grooming into growth
engines of the future and expects to deliver value growth at 20% plus CAGR over the medium
term in these portfolios.
In the International business, the company expects to clock organic broad-based double-digit
constant currency growth over the medium term.
Operating margin is expected to be maintained at 18% plus over the medium term.
Its focus on franchise expansion coupled with easing input costs should hold us in good stead in
FY20.
Having made notable strides towards building a future-ready portfolio in FY 2019, it will continue
efforts towards building critical mass through disruptive innovation, executional excellence and
investments in brand building.
ASP will be stepped up to 10% of sales (from 9.5% in Q4) to support forthcoming innovations in
the medium term on an annualized basis.
Capex in FY20 is likely to be around Rs 125–150 crore.
South Africa business has been subdued by macroeconomic headwinds and resultant
sluggishness in demand. The management is cautious on the near term outlook of South Africa
business.
The company will continue to invest in developing new countries and scale the business
profitably.
The company will also aggressively invest behind the recent innovations and a visibly strong
pipeline for the next 2-3 years.
With considerable room for organic growth in the business, the company will only be
opportunistic with respect to acquisitions, which may either be immediately value accretive due
to operating leverage or enable consolidation of leadership in existing categories.
Visaka Industries : Margins are expected to improve in FY

20
The company held its conference call on 6 May 2019 and was addressed by CFO and Director
Mr. Vallinath
Key Highlights
For FY 19, the asbestos sheet division had 4% volume growth on YoY basis. The industry also
more or less grew in that range. For Mar 19 quarter the volume growth was around 7% YoY.
Too early to say of any slowdown in demand. Growth would have been better if election issues
were not there.
Demand will come back very strongly in coming quarters. The company had increased prices of
asbestos cement overall by 2% in FY 19. More price increase was expected but industry as a
whole went cautious given elections on cards. Expects industry as a whole to increase the
prices in coming quarters.
Boards and Panels (B&P) grew by 12% in volume terms in FY 19. With Jhajjar plant coming up
and more capacity being available, management expects the B&P to grow by around 20% in
coming year.
In FY 19, the ad spends stood at around Rs 20 crore compared to Rs 10 crore in FY 18. Also
Jhajjar plant had some commissioning expense of around Rs 2.5 crore and loss of around Rs
2.7 crore on Atom plant which got commissioned in FY 19. So all these had resulted in margin
pressure in FY 18.
Pulp prices currently are around $ 750 per ton compared to around $ 900 per ton for FY 19.
This will aid B&P margins.
With Jhajjar ramping up going well, with commissioning of Atom plant, with pulp prices having
eased off and with asbestos sheet price increase on cards and with lower logistics costs and
better leverage, margins are expected to improve in coming years. B&P should report double
digit margins in FY 20 as compared to around 7% in FY 19.
Expects no new capacity addition in spinning segments. Margins are expected to be around
13.5-14% with 6-8% net sales growth in FY 20 for spinning segment.
Working capital days have slightly increased to 11 days that is largely due to delay in Jhajjar
plant
Not much capex going forward. Thus cash flow is expected to improve.
Expects around Rs 25 crore of sales from Atom i.e. around 33% capacity utilisation of Atom
plant for solar roofing.
As per the management, margins for building product segment will increase going forward and
the margins have reached a floor in FY 19.
Interest cost is expected to come down further.
Mahindra CIE Automotive : Will continue to invest in

Aurangabad Electricals in CY 2019 and CY 2020
Mahindra CIE Automotive held its conference call on 7 May 2019 to discuss results and future.
Ander Arenaza Alvare, CEO and K Jayaprakash, CFO of the company addressed the call.
The company saw continuous sales and margin improvement
Consolidated Q1 CY19 results is best ever result in MCIE history in absolute value.
It achieved double digit EBIT % on consolidated basis.
Results are good in itself but better if one compares it with the subdued business situation.
The company continues to work with different customers with different technology.
In the month of March, Mahindra CIE Automotive acquired the business of Aurangabad
Electricals Limited (AEL) through acquisition of 10 equity shares for an enterprise value of Rs
875.6 crore which included a future deferred payment estimated upto Rs 62.2 crore.
Aurangabad Electricals will give it entry in Aluminium die casting business. There is no
overlapping of business with MICE.
Aurangabad Electricals has exports of 8-9%. The utilisation rate is high at 90-95% as market
was growing fast. Its margins are below Mahindra CIE standard and the company is working to
improve its margins to 15%.
Net debt as of March is Rs 675 crore.
Aurangabad Electricals has 20% business from PV and UV which is gradually increasing to
30%.
MICE will continue to invest in Aurangabad Electricals in CY 2019 and CY 2020.
Aurangabad Electricals accounts will be consolidated from next quarter onwards.
In Q1 Bill Forge was negatively impacted by slack 2 wheeler sales Bill Forge should see good
sales and margins growth going forward as the Mexican business is likely to be good.
It hopes to improve margins for its German business.
European business sales growth was impressive at 15% in Q1. It was up 14% in Euros. The
business saw ramping up from Caterpillar and CV growth of 5%. This business will grow well in
next quarter but in H2 the European market will hold down a bit.
Indian business saw solid margin despite more than anticipated slowdown in the 2 wheeler
market. From the next quarter Indian business should start revamping. Insurance and political
uncertainty impacted 2 wheeler business. If the monsoon is normal as predicted, the Indian
business can grow at 8-10%.
Indian business has improved marginally in April and May but customers are not willing to bet
for more than 1-2 months.
The company will continue to work with focus on efficiency and productivity.
M&M, Maruti, Tata Motors and Hero MotoCorp combined constitute more than 50% of MCIE
India business.
In FY 2020, cars and utility vehicles (UV) industry is pegged to grow moderately at 6-8% as per
CRISIL report. It expects domestic tractor sales volumes to continue its growth momentum, and
increase by 6-8% in fiscal 2020, assuming normal monsoon.
In Europe IHS Global has forecasted that the Passenger Vehicle production will grow at a slow
but steady pace of 0.3% CAGR from 2018-2023. IHS Global has forecasted that the Medium
and Heavy Commercial Vehicle production will grow at a steady pace of 4.3% CAGR from
2018-2023.
The Great Eastern Shipping Company : FY 2019 was a
wild ride due to market and forex fluctuations
The Great Eastern Shipping Company held conference call on 7 May 2019 to discuss results for
March 2019 quarter.
G. Shivakumar, CFO addressed the call:
FY 2019 was a wild ride for P&L ac due to market and forex fluctuations. Crude tanker Time
Charter Yield (TCY) rate was $ 11000 per ton for the first 6 months which shot up to $ 21000 in
H2. Product tanker TCY grew from $ 12500 ton in H1 to $ 15800/ton in H2. On currency side,
rupee depreciated more than 7 Rs in H1 but clawed back Rs 3 in H2.
Net net the company reported net loss of Rs 400 in H1 and recovered almost all in H2 to report
Net loss of Rs 21.45 crore in FY 2019. Product tanker TCY was down.
Product tanker prices dropped 5% in FY 2019.
This is the first time the company has reported loss since 1984. But businesswise FY 2019 was
better than FY 2018.
Crude and dry bulk TCY were better in FY 2019.
This year the company has to repay back debts worth $ 210 million or Rs 1500 crore.
The company sold 2 bulk carriers and bought 2 very modern gas carriers.
Standalone NAV is Rs 374 and consolidated NAV is Rs 430-460.
The company does not face any cost pressure in shipping business. But Q4 sees bunching of
costs on the manning side.
Outlook is positive.
US crude exports grew 1.3 million barrel/day in Q4 on yoy basis. Chinese crude import grew
800000 barrel/day.
Tanker rates are down across the board. Ordering for crude tanker stands at 10%.
LPG freight market saw vessel rates going up.
In dry bulk, Brazilian iron ore trade is expected to fall by 40 million tons in FY 2020.
Dry bulk order booking stands at 11.5% and fleet growth is expected to be 2-3 in FY 2019.
Offshore market is challenged.
1 of the company's Platform Supply Vessel (PSV) vessel got 5 year contract. On jack-up rig side
all its vessels have contracts.
Net cash as on March is Rs 3500 crore or $ 500 million dollars. Borrowing is $ 960 million.
Cost of debt in $ terms is 4.5% on consolidated basis.
The company does stress test every quarter for past 8 years. As per this, the company keeps
cash in balance sheet for next 12 months estimating that all its ships will earn its worst in last 25
years. As per this its shipping business has cash of $ 325 million currently.
The company has 90% spot exposure in shipping as it expects significant turmoil in the current
year due to IMO 2020. Currently fuel used is usually high sulphur content fuel of 3.5%. As per
IMO 2020, from 2020 it has been revised to 0.5% sulphur content in fuel. This might create
disruption in the market.
The Board has also considered and approved the issue of Non-convertible Debentures upto an
amount not exceeding Rs l000 crore by way of private placement during the year. There are no
specified plans of using this money currently.
In future crude oil market might be a sunset industry. It may happen 10 years down the line but
the company will have to think about it in 3 years down the line.
The company does not see any significant rise in price in product tanker market.
Guidance
The shipping business has visibility of Rs 357 crore.
The offshore business has visibility of Rs 778 crore.
Elantas Beck India : There will be growth but difficult to

time the growth in CY 19 given current economic
conditions
The company held its AGM on 7 May 2019 and was addressed by Mr. Ravindra Kumar MD
Key Highlights
The company achieved a volume growth of around 4% in CY 18 as compared to a 5% volume
growth in CY 17 on YoY basis.
Increase in raw material prices affected the entire CY 18 margins and lower demand resulted in
company not been fully able to pass on the rise. The company will increase the prices in CY 19
as the year progresses.
The company spent around Rs 16-17 crore in R&D facilities in CY 18 for implementing the
acquired technologies from the Parent for manufacturing certain wire enamels and hardeners.
The company continues to seek new product development locally under the technology transfer
agreement with the Parent.
The company also developed various electrical and instrumentation products which can be used
for electric vehicles and also for defence systems. Is in talks with various auto companies and
other defence companies for the orders.
The benefits of all these should eventually result in higher sales and better margins. However
given the current environment, difficult to time the growth in CY 19.
Company has developed significant capabilities in all areas of its operations including new
products and technologies which put it in a very strong position to deliver improved financial
performance over the next years. The demand drivers are in place and the company is waiting
for some improvements which should come. But difficult to determine the timing and pace.
The company also plans to invest in Ankleshwar unit and to build up capacities for future
growth. In support with the Parent, new product introduction will take place in this unit.
Overall, the demand of the company's products is linked to the IIP growth. While the directions
is same, its generally higher than IIP due to company's vast product portfolio and niche
presence.
Company has still not seen any big impact of GST or make in India or reduction in imports from
China so far. These are significant changes and if they go on an expected line, then will benefit
the company significantly.
Paint and plastic additives is one such product line which will be introduced in next couple of
years. Parent has nearly a billion Euro of revenues from this segment and is very strong in
technology and R&D.
Export to Parent stands at around 5% and most of the exports are to South Asian countries.
This will increase with more and more R&D led new products being introduced by the company
in India. Going forward, management expects the company to do well due to more product
introduction from the Parent and better prospects for electrical industrial and power segment.
Growth will be more towards H2 of the year, but overall growth should be better both in volumes
and some price increase will lead to better margins in CY 19.
Supreme Industries : For FY 20, expects to attain

turnover in the range of Rs 6100 crore to Rs 6250 crore
with estimated operating margins of around 13.5-15%
The company held its conference call on 7 May 19 and was addressed by Mr. M P Taparia MD
Key highlights
The company has sold 113921 MT of plastic goods in Mar 19 quarter registering a volume
growth of 10% on YoY basis. For 12 months ended Mar 19, the volume growth stood at 7%.
During FY 19, the company had sold 38718 sq feet of premises and realised Rs 81 crore with
operating profit of Rs 54 crore.
Focus remains to increase sale of value added products and improve ROC of the company.
Value added products sale now stands at 35% of total turnover and stood at Rs 1944 crore for
FY 19, registering a growth of 12% YoY.
Total borrowing stands at Rs 162 crore as on Mar 19 as compared to Rs 248 crore Mar 18 with
average cost of borrowing at 8.23%. Debt Equity stands at 0.08.
For FY 19, the company had incurred capex of around Rs 384 crore for expanding the
capacities of several units. For FY 20, the company envisages capex of around Rs 300-350
crore for creating capacities for future growth. Entire capex will be from internal accruals.
The GST introduction has lead to some shift from unorganised sector to organised sector, but
the pace is moving slowly.
Expects net sales for FY 20 in the range of Rs 6100-6250 crore with OPM of around
13.5%-15% range.
The margins for Mar 19 quarter got affected due to inventory losses. The PVC pipes had gone
down by around 15% in this quarter and the company was carrying high inventory. It was not
possible to pass on the impact and the company had to bear the same. There are some more
high cost inventories which the company is carrying which will be over in early June 19 quarter.
The product mix also was adverse in Mar 19 quarter with higher sales of pipes than the entire
pipe solutions including fittings and spares.
Demand remains strong although election period did affect some sales. Once the election gets
over, demand should come back strongly.
Margins have bottomed out in packaging products business which was at around 15.7% for FY
19 as compared to around 20.4% for FY 18.
The low polymer prices will eventually benefit the company significantly. Expects the trend of
polymer prices to remain flattish to negative which augurs well for the company barring a one off
quarter of inventory adjustments.
ABB India : Base orders up 17% in Q1CY2019

ABB India hosted a conference call on May 8, 2019. In the conference call the company was
represented by Sanjeev Sharma, Managing Director.
Order backlog as end of March 31, 2019 was Rs 4726 crore down 8% from Rs 4726 crore as
end of March 31, 2018. Of the order backlog of Rs 4726 crore the Electrification Products (EP)
account for Rs 1411 crore, Industrial Automation (IA) accounts Rs 1286 crore and Robotics &
Motions accounted Rs 1798 crore.
Order booking in first quarter ended up March 2019 was up 4%yoy to Rs 1780 crore [EP – Rs
800 crore; IA – Rs 312 crore; RM – Rs 729 crore]. Of the Q1CY2019 order intake project orders
accounts for just 3% with products accounts 82% and services 15%. Of EP order intake
products accounted about 93% with service accounted for 5%. Similarly of RM order booking
products accounted for 86% with balance 14% was accounted by Service. In case of IA order
intake products accounted 36%, with service accounting 47% and projects 17%.
Base order booking in Q1CY2019 was up 17% to Rs 1500 crore. Corresponding previous
quarter had Rs 180 crore of large order. High teen growth in base order was from sectors
including transportation, retail, automotive, metals, cement and oil and gas. Additionally, we won
orders for smarter power distribution technology from electrification and for automation solutions
for metro transportation, steel plants and city infrastructure.
The total orders for the Power Grid business for the quarter were at INR 670 crore and
revenues were at INR 895 crore. The business reported a PBT of INR 42 crore and PAT of INR
27 crore for the period under review.
Strong orders for EP is driving inventory build up for future growth.
Focus for 2019 is running the company as its is and managing the transformation. With PG
demerger on track the four leading businesses operational with April 1, 2019.
About 12-14% of STO comes from exports for the company.
The market is fairly soft on industrial side for long term. Customer connect programme are
yielding result. But the company given its vast product portfolio and diverse market presence
across various geographies are managing the risk. The company is pushing up its market share
in each of its products.
Service business has huge potential and still has more room for growth as service to its installed
base is not at desired level.
Margin is the focus area of power business with three pronged approach of increase orders
intake, grow exports handsomely and increase service to installed base ratio.
Consumption led growth as well as opportunities driven by national building projects are
projected to continue. Projects under planning showed slight uptrend in utilities, manufacturing,
and mining as well as for service at the start of the year, while the electricity sector remained
muted. Global trade patterns and the price of crude oil are key influencing global macro
indicators for the nation.
ABB India's strong presence in the key industries that drive India's growth gives the company a
path to a sustainable and strong future. ABB India's various operational initiatives and an agile
portfolio makes it well-positioned to stay close to the customers and remain focused on
delivering profitable growth.
Mas Financial Services : Expects loan growth of 20-25%

and RoA of 2.5-3.0%
Mas Financial Services conducted a conference call on 08 May 2019 to discuss the financial
results for the quarter March 2019. Kamlesh Gandhi, Chairman and Managing Director of the
Highlights:
. The company has continued to maintained healthy loan growth 29%, while its asset under
management crossed Rs 5000 crore mark to reach Rs 5293 crore end March 2019. The
company expects to maintain loan growth of 20-25%, going forward. The loan growth can be
accelerated to 30% on favourable market conditions.
. The loan growth has been strong across all key segment with micro enterprise loans (MEL)
AUM rising 30% to Rs 3341 crore, SME loans 30% to Rs 1336 crore, 2-wheelers 27% to Rs 462
crore, while commercial vehicle loans increased 5% to Rs 1543 crore end March 2019 over
March 2018.
. The yield on MEL loan stood at 15.5%, SME 14.7%, two wheelers and commercial vehicles
17% etc. The weighted average yield stood at 15.5%.
. The disbursements stood at Rs 4774 crore in FY2019 up from Rs 3891 crore in FY2018, of
which Rs 3200 crore is MEL, Rs 961 crore is SME, Rs 492 crore is two-wheeler and Rs 116
crore to small transport operator.
. The company expects increase in cost of borrowings for FY2020.
. The company has maintained around 39% of its portfolio on assignment basis. The
assignment transactions are taking place at 25-30 bps + MCLR.
. The company has CC facility of Rs 2000 crore, of which 35% remain unutilized.
. The company expects RoA of 2.5-3.0%, going forward.
. The GNPA ratio was nearly flat at 1.24% end March 2019, while NNPA ratio has eased to
0.86% end March 2019 from 0.91% end March 2018.
. The company has witnessed decline in employee count to 1450 end March 2019 from 1500
end December 2018.
. The company has network of 78 branches spread across seven states end March 2019.
KEC International : Expect sales growth of 15-20% in

FY20
KEC International hosted a conference call on May 8, 2019. In the conference call the company
was represented by Vimal Kejriwal, MD & CEO of the company.
T&D revenue for Q4FY19 and FY19 was down by 1.3% (to Rs 2434 crore) and 6.6% (to Rs
6338 crore). While SAE revenue for Q4FY19 was up by 3.9% that of full year was down by
5.7% to Rs 967 crore. FY19 T&D revenue was impacted on account of delay in approvals in
SAE and execution challenges in a domestic private project; Large T&D order backlog of about
Rs 15000 crore to enable future revenue growth.
Order intake for FY19 was Rs 14084 crore. Order book as end of March 32, 2019 stands at Rs.
20,307 crore, a growth of 17% over the previous financial year. But order book including L1
orders as end of March 31, 2019 stand at Rs 24000 crore.
Sitting on robust and well diversified order book, the company is confident of 15-20% growth in
revenue for FY2020. The company expects its Railway business revenue to register a growth of
20-25% for FY20 and that of T&D as a whole is expected to register a growth of 15% for FY20.
Expect revenue of Civil business to double from FY19 revenue of Rs 500 crore.
EBITDA margin for FY19 was 10.5% and the company expect to maintain it at that level for
FY20 as well.
The T&D order win in Malaysia along with the earlier order wins in Papua New Guinea and
Thailand will help in strengthening the position of the company in the East Asia Pacific market.
The Railway business continues to be on a high growth trajectory on the back of consistent
order inflows.
The Civil business has secured its second order in the residential space. The company has
diversified its civil client base to FMCG sector, in addition to cement, real estate, automobile and
auto ancillary sectors.
Outstanding order size of the stick T&D order/project is about Rs 400 crore. Considering the fact
of this order is part of South West Interconnector and thus a project of national importance, the
issues are expected to get sorted out soon and execution to commence soon.
The company expects interest cost (as proportion to sales) is expected to come down to 2.5%
for FY20 down from 2.8% in FY19 with average borrowing for current fiscal stand at about Rs
2500 crore. Debts have come down by Rs 1200 crore in Q4FY19.
In case of order pipeline, due to elections there is bunching up of orders both at central and
state levels. About 25000 crore worth of projects are either bids quoted or in the process of
quoting.
Renewable orders in the pipeline was to the tune of Rs 13-14000 crore and of which TBCB
orders were about 11-12000 crore where RFQ were completed and bids will happen by May
2019. The cost plus orders were about 1500-2000 crore.
The company expects its order intake/booking to be about Rs 17000-18000 crore in FY20.
In international T&D growth will be largely driven by international in FY20 with execution of
orders from SAARC/Bangladesh, Brazil and Arica start picking up during the fiscal.
On international front, tenders start flowing/coming in Saudi Arabia. Similarly tenders are
coming from far east Asia. There is continuous flow of tenders/orders from Africa especially
West Africa.
Brazil – Expect a growth of 35-40% in FY20. Some projects not awarded by developers who got
development mandate in tenders in Brazil and awarding of such orders will pickup going
forward.
The company is pretty comfortable in case of Saudi Receivables. Saudi receivables collected in
FY19 was about Rs 1000 crore and of which about RS 450 crore came in Q4FY19. And it
expect another Rs 300 crore soon.
Considering T&D market in last few quarters, there is pressure in fresh orders. There are also
inflation led pressures. Thus the company is conservative and capped FY20 margin at 10.5%
despite railways & Civil will leverage on increasing size and better absorption of overheads.
Essel Propack : India business should come back

strongly in coming years
The company held its conference call on 8 May 2019 and was addressed by Mr. Ashok Goel
MD
Key Highlights
Oral care accounted for around 57.6% of total revenue in FY 19 while non oral care accounted
for the rest. Of the total revenues, there has been a 130 bps shift towards revenues from oral
care business to the non oral care business in FY 19 on YoY basis.
Net debt as on Mar 19 stands at around Rs 500 crore as compared to Rs 564 crore on Mar 18.
Debt will keep reducing in coming years. Strong cash flow will result into substantial reduction in
the Net Debt.
India revenues continue to get impacted due to lower offtake by key customers. The company
had incurred capex in India and higher fixed costs and lower off take affected the margins in
Mar 19 quarter. Overall offtake will improve in FY 20 as the year progresses.
There has been no growth in demand in India for the company as the offtake was at the same
level as it was last year. Customers are not able to lift what they have promised. If Assam plant
was not set up, it would have worse as new business from Assam plant helped in replacing the
delays from other existing customers.
The company is working with major pharma brand names in India. While the regulations were
cleared in Dec 18 quarter, it took some time for implementation. Management expects pharma
to do very well in FY 20 including exports. The company got a big break through with one of the
major brand Soframycin wherein the Aluminum tubes will be replaced by laminated tubes. This
opens up a huge opportunity as it would result in new business with larger volumes.
While in India, Hair care, food and home care categories are growing well for the company. But
the company continues to hear of lower demand from rural India which resulted in reshuffle of
offtakes and hence quarterly targets becomes difficult.
India should come back strongly in coming years. But difficult to determine quarterly levels..
June 19 quarter will remain soft due to elections. Then there will be recovery every quarter.
US market grew by 19% in Mar 19 quarter. The company commercialized new businesses in
US and in Mexico which are yielding results. Expects growth momentum to continue in FY 20 as
well. Higher volumes resulted in better margins in US geography. Shifted some capacity from
US to Mexico which will result in meeting the higher demand of Mexico.
Columbia restored back to profits. Expects the same to sustain going forward.
EU also grew by 16% in Mar 19 quarter. Higher volumes and better product mix aided margins.
New business provides good visibility for FY 20.
Unlike in past years, China has grown in non oral care business and now accounts for around
38% of total revenues. The trend looks sustainable.
Overall the year ended with revenue growth from all regions except AMESA due to India
Pharma Regulation Impact and lower off take by key customers. Non oral care continues to be
focus area with winning new contracts in Americas, Europe as well as EAP Regions. The
company had created capabilities during recent years which has begun yielding results and will
continue in following year/s.
Blackstone has committed upto $460M to acquire majority stake in Essel Propack. It will pay a
purchase price of Rs 134 per share to acquire 51% shareholding from Ashok Goel Trust.
This transaction will trigger a mandatory open offer for a purchase of additional 26% shares of
the company. Open offer price fixed at Rs 139.19 per share
Ashok Goel will retain minority stake in the company and will continue with the management
affairs. The sale is expected to be completed in the coming months, subject to customary
closing conditions and regulatory approvals.
Expects 15% growth in net sales in FY 20 given the current economic conditions and if it does
not deteriorate further.
KSB Pumps : Healthy order book is likely to result in
double digit sales growth in CY 19
The company held its AGM on 8 May 2019 and was addressed by MD Rajeev Jain.
Key highlights
During CY 18, the company received various small orders from chemicals, oil and gas and infra
capex.
Order book is healthy. Healthy order book is likely to result in double digit sales growth in CY 19
Apart from the nuclear power corporation (NPC) order of Rs 440 crore in CY 17, no major
orders were received from NPC in CY 18. The company has bid for couple of them.
Engineering, standard pumps, Oil & Gas, construction and nuclear pumps are driving growth.
During early CY 18, the Shirwal plant in Pune commenced its operations. The plant is for
manufacturing large pumps for Nuclear power plants, Oil and Gas, Energy etc.
The company has shifted its business from a product to more of a project and solution business.
The project business is more for large orders. This would result in some increase in working
capital for the company. For execution of NTPC order in particular, the company would require
additional working capital
Momentum is slowly catching up and order inflow should need to remain strong for a consistent
increase in sales going forward. The company has participated in bids and the orders should get
tendered out in 3-4 mths.
While competition remains high and margins are under pressure, volumes and cost control
measures will lead to higher margins. Raw material price increase is a worry if goes beyond the
current levels. Most of the orders are fixed in nature though some orders have variable clause
as well. Generally, too much volatility in raw material would hurt margins in short term
Mahindra Logistics : Non M&M SCM business growth will

be higher than industry
Mahindra Logistics hosted a conference call on May 8, 2019. In the conference call the
company was represented by Pirojshaw Sarkari, CEO and Yogesh Patel, CFO.
Supply Chain Management (SCM) revenue up by 13.6% to Rs 917 crore of which M&M revenue
was up by 15.3% to Rs 543 crore and non M&M revenue was up by 11.3% to Rs 374 crore. Of
non M&M revenue in SCM segment the auto revenue was up by 9% to Rs 85 crore (23% of non
M&M revenue) and that of non auto was up by 12% to Rs 289 crore (77% of non M&M
revenue). Similarly of non M&M business the Warehousing and value-added services was up by
33.3% to Rs 96 crore (26% of non M&M revenue) and that of transportation was up by 5.3% to
Rs 278 crore (74% of non M&M revenue).
Revenue of Non Auto segment in SCM business for the first time ever crossed revenue of Rs
1000 crore in FY2019. FMCG/Consumer industry is consolidating and it is a new growth area.
Proportion of warehousing and other value-added activities reached 26% in Non-M&M SCM
Segment. Non-M&M Warehousing and value-added services revenue have grown by 30% over
FY18.
SCM business as industry is expected to grow by 10-12% in FY20 and the company's non M&M
SCM business expected to register a growth higher than the industry.
The company continues to see double digit growth in non M&M of SCM business.
Demand and supply side of M&M is material for the company that determines the opportunity for
the company rather than the M&M growth numbers. Further M&M group has large number of
companies across various industries metals, aerospace and defence apart from auto. The
company continues to bid and win opportunities in other companies.
About 90% of M&M business is transportation.
New orders won in Q4FY19 will give full year contribution in FY20.
Top 25 clients continue to account about 65% of non M&M SCM revenue.
In Q4FY19, the company added 1 million sft taking the overall capacity to about 15.8 million sft.
Post GST, consolidation is happening in case of consumer goods industry. Post GST, the
company changed strategy to take forward position on warehousing.
In auto industry the logistics opportunity is at 3 part/type i.e. in-plant logistics; 2) inbound
logistics; 3) outbound logistics. While the in plant logistics is currently largely handled by the
company themselves, the inbound was given region wise to logistics players depending on who
is strong in that region. The outbound logistics is equal to transportation and normally given to
about 10 players. So there is enough opportunity for the company to grow in auto industry
especially in plant/in factory logistics.
The company continue to be an asset light model. Capex spend for FY19 was about Rs 27
crore and the capex for FY20 will be of same ballpark level.
The company has achieved positive free cash flow of Rs 39 crore for FY 19 as compared to
negative in the previous 2 years.
Client retention rate has been 100% for the top 25 SCM, non Mahindra group clients in F19.
ICICI Bank : Expects credit cost to be closer normalised level

of 1.2%-1.3% in FY2020
ICICI Bank conducted a concall on 06 May 2019 to discuss the financial results for the quarter
ended March 2019 and prospects of the bank. Sandeep Bakhshi, MD&CEO of the bank
addressed the call:
Highlights
The bank has been consistently focusing on growing its core operating profit in a granular and
risk calibrated manner, which has increased by 26% to Rs 6077 crore in Q4FY2019 and 17% to
Rs 22072 crore in FY2019.
The bank believes that a strong liabilities franchise is the basis of strategy and has posted
healthy growth in overall funding. The total deposits increased 16% to Rs 6.53 lakh crore end
March 2019, while average CASA deposits increased 13% in Q4FY2019.
The bank would be focus on growing retail term deposits and CASA deposits in absolute terms.
Its endeavour would be to maintain a healthy and stable funding profile and competitive
advantage in cost of funds.
On the assets side, the domestic loan book grew by 17% end March 2019 driven by retail loan
portfolio rising 22%. Over 90% of the disbursements in FY2019 in the domestic and
international corporate portfolio was to corporates internally rated A- and above.
The net advances of the overseas branches declined 2% in Rupee terms and 8% in US dollar
terms end March 2019. The international loan portfolio was 10.7% of the overall loan book as of
March 2019.
The bank has also maintained focus on addressing the stress in the corporate and SME
portfolio originated in earlier years. The gross NPA additions were Rs 3547 crore in Q4FY2019,
which include an account in the sugar sector where the payment obligations are being met,
which has been classified as non-performing pursuant to a regulatory interpretation
communicated to banks relating to change in management.
The fresh NPA additions have declined sharply to Rs 11039 crore in FY2019 from Rs 28730
crore in FY2018. The net NPAs dipped over 50% from Rs 27886 crore end March 2018 to Rs
13577 crore end March 2019. The net NPA ratio more than halved from 4.77% end March 2018
to 2.06% end March 2019.
Of the corporate and SME gross NPA additions of Rs 2724 crore, slippages of Rs 1877 crore
were from the BB and below portfolio and the balance largely comprise one account in the
sugar industry.
The recoveries and upgrades were Rs 1522 crore in Q4FY2019. The Bank did not sell any
NPAs during Q4FY2019. The gross NPAs written-off during the quarter aggregated to Rs 7324
crore.
The provision coverage ratio excluding technical write-offs increased from 47.7% end March
2018 to 70.6% end March 2019. Including technical write-offs, the provision coverage ratio was
robust at 80.7%.
The BB and below corporate and SME portfolio has decreased from Rs 18812 crore end
December 2018 to Rs 17525 crore end March 2019, which includes gross fund-based and
non-fund based outstanding to standard restructured borrowers of Rs 564 crore, gross non-fund
based outstanding to non-performing loans, was Rs 4220 crore (against which bank holds
provisions of Rs 1591 crore) and Rs 12741 crore (Rs 7800 crore to Rs 100 crore+ cases) of
fund-based and non-fund based outstanding to borrowers rated BB and below end March 2019.
There were rating upgrades to the investment grade categories and a net decrease in
outstanding of Rs 563 crore. The rating downgrades from investment grade categories were Rs
865 crore and upgrades from non-performing loans were Rs 288 crore in Q4FY2019. Also,
there was a reduction of Rs 1877 crore due to slippage of some borrowers into the
non-performing category
The annual supervision process of the Bank by RBI for FY2018 was concluded during
Q4FY2019. No disclosure on divergence in asset classification and provisioning for NPAs is
required to be made in terms of the RBI guidelines.
The proportion of the loan portfolio rated A- and above increased from 66.3% end December
2018 to 67.1% end March 2019.
The retail portfolio continued to be stable, while the gross retail NPA additions are expected to
be higher in Q1 and Q3 of FY2020 due to the likely additions from the kisan credit card portfolio
that stood at about 3% of total loan portfolio.
Looking ahead, the bank would continue to maintain focus on building scalable and resilient
business to drive the growth of risk calibrated core operating profit. It would further strengthen
liabilities franchise and pursue growth in low capital consuming businesses.
The bank is focused on building capabilities to understand the changing needs of customers. A
driving force is strong and talented teams that are responsive and adapt to the new evolving
trends. The bank has moved to role-based designations from grade based structures and
empowered teams at the local level.
The bank has taken a number of initiatives on the digital front to expand the customer base,
smoothen the onboarding process further, enhance the transacting experience and deepen the
penetration of products and services among existing customers.
The bank believes that it is at the end of this asset quality cycle and the NPA additions are
expected to broadly stabilize going forward. The bank will continue with the approach of
granular exposures and focus on higher rated corporate.
Over the past four years, the provisions as a percentage of average advances, have been
ranging between 2.8% and 3.7%. As a percentage of core operating profit, the provisions have
been between 60% and 90%. For FY2019, credit cost was 3.7% of average loans and 90% of
the core operating profit.
The bank expects provisions on a normalised basis should be around 20% of core operating
profit or about 1% of the average advances. The credit costs in FY2020 are expected to reduce
significantly compared to FY2019 and move towards a more normalized level. The bank
expects the credit costs to be in the range of 1.2% to 1.3% of average loans in FY2020. Due to
uncertainty in the timing of resolutions of NPAs, there could be variance in credit costs across
quarters.
The bank remains committed to achieve a consolidated RoE of 15% by June 2020. It will
articulate the medium term RoE target as we start delivering normalized profits during the
current year.
The bank has exhibited sharp increase in the net interest margin to 3.72% in Q4FY2019
compared to 3.40% in Q3FY2019 and 3.24% in Q4FY2018. There was interest on income tax
refund of Rs 414 crore in Q4FY2019 compared to Rs 21 crore in Q3FY2019 and Rs 16 crore in
Q4FY2018. The impact of interest on income tax refund on net interest margin was about 20
basis points in Q4FY2019. The impact of interest collection from NPAs was about 5 basis points
in Q4FY2019 compared to 17 basis points in Q3FY2019.
International margins decreased to 0.03% in Q4FY2019 compared to 0.77% in Q3FY2019.
Overseas margins in Q3FY2019 included the benefit of interest collection from non-performing
loans.
NIM has improved to 3.42% in FY2019 from 3.23% in FY2018, while the bank expects the NIM
to further improve gradually from the FY2019 level going forward, driven by NPL recoveries,
systemic liquidity, competitive environment and regulatory developments.
Fee income of the bank grew 15% to Rs 3178 crore in Q4FY2019, while retail fee income also
grew 15% and constituted about 74% of overall fees in Q4FY2019.
The operating expenses of the bank increased 20% in Q4FY2019, while the cost-to-income
ratio was 44.5% in Q4FY2019 compared to 49.9% in Q4FY2018, excluding gains from stake
sale in subsidiaries.
The employee expenses increased 24% in Q4FY2019 due to higher provisions on retrials,
reflecting the higher decrease in yields on government securities in Q4FY2019 compared to
Q4FY2018.
The Bank had 86,763 employees end March 2019.
The exposure to the power sector was Rs 37391 crore end March 2019, of which about 31%
was either non-performing or part of the BB and below portfolio. Of the balance 69% of the
exposure, 31% was to public sector companies and 69% was to private sector.
During the quarter, concerns emerged around one of the major airline companies in India. The
loans and non-fund based outstanding of this airline were already a part of the corporate and
SME BB and below portfolio end December 2018. The loans to this borrower have been
appropriately classified and provided for by the Bank. There would be no further impact in the
future quarters from this.
The entire fund based exposure to the IL&FS Group was Rs 276 crore which is classified
as non-performing end March 2019, and bank hold a provision of Rs 146 crore. Further, the
bank has non-fund based outstanding of Rs 545 crore end March 2019 which is a part of
corporate and SME BB and below portfolio and bank hold provisions of Rs 468 crore.
The loan, investment and non-fund based outstanding to NBFCs was Rs 29368 crore end
March 2019 compared to Rs 25619 crore end December 2018. The loan, investment and
non-fund based outstanding to HFCs was Rs 13858 crore end March 2019 compared to Rs
9301 crore end December 2018. The loans to NBFCs and HFCs were about 5% of total
outstanding loans end March 2019.
The builder portfolio including construction finance, lease rental discounting, term loans and
working capital loans was about Rs 19633 crore end March 2019.
Aditya Birla Capital : Retail and SME portfolio share to

increase by 300-500 bps in FY2020
Aditya Birla Capital conducted a conference call on 06 May 2019 to discuss the financial results
for the quarter March 2019. Ajay Srinivasan, CEO of the company addressed the call:
Highlights:
The company has recorded strong 32% increase in consolidated revenue to Rs 4730 crore,
while net profit moved up 52% to Rs 258 crore in Q4FY2019.
Lending book (incl housing) increased 23% to Rs 63119 crore end March 2019.
Overall lending book is backed by well-matched asset and liability mix and adequate liquidity
pipeline to meet growth requirement. The company raised about Rs 11000 crore of long-term
funds during H2FY19 despite liquidity headwinds across industry. The company has continued
to maintain healthy quality of book.
Lending
The NBFC loan book grew 20% to Rs 51714 crore end March 2019. The company is targeting
loan growth 20-25% for FY2020
Net Interest Margin expanded by 37 bps year on year to 4.91%, as a result of SME, Retail and
HNI businesses increasing to 50%.
The company expects the share of retail and SME portfolio to increase by 300-500 bps in
FY2020.
Gross stage 3 and net stage 3 assets stood at 1.05% and 0.55%.
The exposure to IL&FS stood at Rs 388 crore, of which Rs 168 crore is classified as green.
The company has not made any provision against green assets. The company has 1 red and 3
amber assets with the exposure of Rs 220 crore, against which the company has made
provisions of Rs 56 crore.
The company is targeting RoA of 2% and RoE of 14.5% for FY2020.
The company has completed securitization deals of Rs 750-800 crore in Q4FY2019 compared
with Rs 2000 crore in Q3FY2019.
The company expects marginal increase in cost of funds on account of move towards long term
funding.
Housing Finance
The housing loan book grew 40% to Rs 11405 crore while maintaining healthy Net Interest
Margins at 3.1%.
Affordable lending book grew 4 times to Rs 1500 crore.
Cost to income ratio improved to 61%, as compared to 71% in previous year led by scale and
operating efficiencies.
Asset Management
The total average assets under management of the company stood at Rs 265109 crore end
March 2019.
Domestic equity average Assets under Management (AAUM) grew by 21% year on year with
equity mix at 36% with market share at 8.75%.
Profit before tax grew 24% year on year to Rs 650 crore. Keeping its focus on expanding its
retail presence, investor folios doubled over last 2 years to reach 7.1 million folios as on 31
March 2019.
The company expects the impact of reduction in TER at 18 bps, of which 90% would be passed
on to the distributors.
Life Insurance
Within the life insurance business, Individual First Year Premium (FYP) grew a significant 60%
year on year, as against 9% for the industry (excluding LIC). The private market share (excl.
LIC) increased 125 bps year on year to 4.2%.
The business sourcing is taking place from all non-rural branches of HDFC Bank, while the
company expects one more robust year of performance from banca tier-up with HDFC Bank in
FY2020.
The overall life insurance business is expected to increase 30% in FY2020.
The company exhibited consistent improvement in quality with 13th month persistency
improving by 313 bps to 78.24% in FY 2018-19.
Embedded value increased 15% to Rs 4900 crore end March 2019.
The company has exhibited sharp improvement in net VNB margin at 9.5% from 4.3% in
previous year led by scale, product mix and productivity improvements.
For the first time, the life insurance subsidiary has paid tax in FY2019
Health Insurance
In health Insurance business, gross written premium at Rs 497 crore, was 2x over the previous
year.
The retail business contributed 65% with more than 2.3 million lives covered in second year of
full operation.
The company has rapidly expanded distribution capacity with 10 banca partners signed up. The
company has signed up with Axis bank in Q4 and will go live in Q1FY20.
The company continues to expect to achieve break even in third year of operation.
The combined ratio has dipped to 149% in FY2019 and 129% in Q4FY2019.
Vedanta : Expects capex of US$1.4 billion for FY20

Vedanta held a conference call to discuss the financial results for the quarter ended March 2019
and future prospects of the company. Mr. Srinivasan Venkatakrishnan, Group CEO and Mr.
Arun Kumar Group CFO along with other senior management of the company were addressed
the conference call
Highlights of Concall
Revenue for Q4 FY2019 was at Rs 23,092 crore, lower by 1% sequentially, primarily due to
lower commodity prices, rupee appreciation and lower volume at Aluminium and Zinc India
business, partially offset by higher sales volume at ESL, Zinc International and Iron ore
Karnataka.
Depreciation for Q4 FY2019 was at Rs 2,258 crore, marginally higher q-o-q, primarily due to
capitalisation of costs and ore production post commencement of Gamsberg operations.
Finance cost for Q4FY2019 was at Rs 1,401 crore, 3% higher q-o-q, primarily due to temporary
borrowings at Zinc India and marginally higher cost of borrowings in line with market trends.
Vedanta has cash and liquid investments of Rs 39,269 crore.
Net debt was at Rs 26,956 crore on 31st March 2019, higher by Rs 4,998 crore y-o-y, primarily
due acquisition of ESL
Capex incurred during FY19 stood at Rs 9860 crore. The company expects capex of US$1.4
billion for FY20 which includes optionality capex of US$0.2 billion (largely Aluminium business).
A large part of the capex in FY20 is targeted towards the oil & gas (US$0.6 billion) and
Zinc (US$0.4 billion) businesses. The capex would be largely funded through internal cash
generation
Electrosteel production ramp-up has been as per expectation with the company delivering 1.5
mtpa run-rate in 4QFY19. Overall Q4Fy19 Ebitda doubled YoY to Rs 340 crore, driven by
improved product mix (lower pig iron), increased value-added sales and lower coke and other
raw material costs.
Zinc India
Mined metal production from underground mines was up 29% y-o-y
Lead production was up 18% y-o-y and Silver up 22% y-o-y
The expansion to 1.2 mtpa by the end of FY20 is on track and planning for further expansion to
1.35 mtpa is underway.
During the quarter, the SK mine shaft, the Zawar 2mtpa mill, and the RA 2nd paste fill plant
were commissioned. Work on 2nd paste fill plant at the SK mine, RA mine shaft and the Zawar
dry tailing plant is on track
The company has lowered its production guidance to 1 million tonne(mt) from their earlier
guidance of refined metal production of 1.1 mt in FY2020. Production cost is expected to remain
stable at < $1,000/t excluding royalty
Zinc- International
Gamsberg commercial production started in March 2019. The Gamsberg mine produced 17kt at
CoP of US$1,474/t in FY19 and is expected to ramp-up to 180-200kt in FY20. Overall CoP
declined 25% YoY and 15% QoQ, largely driven by higher production.
The company has lowered its guidance to 170,000 tonne of production from Skorpion and BMM
mines and has cut its production guidance from Gamsberg to 180-200 kt from 250 kt in FY2020.
Oil & Gas
Average gross production of 189 kboepd for FY2019, up 2% y-o-y
Using 11 developmental rigs, 99 wells have been drilled, of which 33 have been hooked up
PSC of Rajasthan & Raava block extended for 10 years, subject to conditions
The company indicated delays in award of projects in Rajasthan block and has accordingly
guided a slower ramp-up in overall production to 200-220 kboe/d in FY2020 from 189 kboe/d in
FY2019.
Aluminium
Q4FY19 Ebitda increased 52% QoQ, mainly driven by sharp reduction in costs on the back of
improved coal availability and increase in local bauxite sourcing.
With captive mine Chotia and coal linkages, the company now has access to 72% of its coal
requirement and aims to secure 90% of coal requirement over the medium term through linkage
and mine auctions. This, coupled with 3mtpa OMC bauxite sourcing (1/3rd of FY20
requirements) and LTC with EGA for 4mtpa imported bauxite, should help reduce costs.
The company is targeting US$1,500/t Aluminium CoP over the medium term
Hindustan Sanitaryware & Industries (HSIL) : Expects volume

growth of around 8% to 12% for sanitary ware and faucet
The company has conducted a conference call on 8th May 2019 to discuss the financial
performance for the fourth quarter ended March 2019, FY19, and way forward. Mr Sandeep
Sikka-CFO, and Mr Naveen Malik- VO and Head of Corporate Finance, of the Company
addressed the conference call.
Key highlights
The Company has posted 60% jump in net profit to Rs 38.19 crore on the back of 22% gain in
income from operation to Rs 808.87 crore for the fourth quarter ended March 2019. The
consumer products business of the company grew 37% to 83.52 crore, building products
division jumped 26% to 377.32 crore, and the packaging products business saw growth in
revenue of 18% to 329.51 crore. For FY19, Company consolidated net profit declined 5% to
70.02 crore despite 19% gain in income from operation to Rs 2712.37 crore. The consumer
products business of the company grew 47% to 305.74 crore, building products division jumped
17% to 1223.22 crore, and the packaging products business saw growth in revenue of 17% to
1097.15 crore.
The Company packaging division has been contributing a lot for the bottom line and top line.
The Company Pipes segment revenue expected to reach to ~Rs 400 crore and target to reach
~Rs 500 crore revenues in FY20E for the Consumers segment. The Company guides a revenue
growth of 35-40% and EBITDA of 5% for FY20.
The Company continues to focuses on five key products portfolios and expects capacity
utilization to touch 100%.
The Company has price hiked of 4.5% for faucet and 3.5% for sanitaryware. The Company
expects volume growth of around 8% to 12% for both sanitary ware and faucet together for
FY20. The Company expects ~10% revenue growth in the Building Products segment in FY20.
The Company plans an average capex of around Rs 150-170 crore for FY 2019-2020. This
capex is likely for packaging business as company likely to bring natural gas for production and
work around coal gas. Also Company work around development of market network through
build of more outlet.
The Company glass business demand looks good and expects growth of 15-20% in FY20. Also,
company has hiked 15-16% during Q4FY19 and expects no major price hikes in near futures of
around 6 months in glass products business.
The Company has received Rs 18.25 crore during the quarter as Telengana State Government
Subsidies (Power & sales tax) relating to financial year 2012-13 till 2017-18, under the
Industrial Investment Promotion Policy (IIPP 2010-15) against acknowledgement of claim which
mentioned in other income.
The Company recommended a dividend of 150% i.e."Rs 3 (previous year Rs 4 on equity shares
of Rs. 2 each for the year ended March 2019.
Voltas : Room AC market sees intense competition

Voltas hosted a conference call on May 10, 2019. In the conference call the company was
represented by Anil George,
UPBG
Voltas continued to be the Market Leader in Room AC, increasing its YTD market share (across
Multi-Brand outlets) from 22.1% to 23.9%.
Industry in FY19 de-grew by 3% impacted by continuation of erratic summer conditions of FY18
in FY19 as well.
Delayed onset of summer and the channel inventory impacted primary sales in the first two
month of Q4FY19. In fact inventory carried by the company since last summer was liquidated
only recently as end consumer sales picked up mainly during the later part of March. As a result
a portion of primary sales which typically would have formed part of Q4 sales has been shifted
to Q1 of next fiscal.
Industry growth in Q4FY19 was flat and the company's primary sale was lower than industry. In
air-cooler industry has de-grown in Q4 but the industry is shifting from unorganized to
organized.
Reduced profit and margin compared to previous year was cumulative impact of rupee
depreciation, inability to pass on the higher costs and customs duty increases.
Given the intense competition from existing players and significant number of new entrants, this
quarter witnessed more consumer offers, leading to higher sales & distribution costs.
Additionally there a few one offs including short settlement of insurance claims for a fire in one
of the warehouses and floods in Kerala.
Air Coolers - Given their very seasonal nature, the year has been even difficult for Air Coolers,
and Voltas too has registered a de-growth along with Industry. Even during this period, the good
news is that, the industry is witnessing a shift of preference from unorganized to organized
sector.
The company has invested in a land parcel near Tirupati, to set up a manufacturing facility for
cooling products. This facility will cater to demand from the fast growing southern and western
markets. Once operational by end 2020, the manufacturing facility will enable greater cost &
operational efficiency in serving these regions.
In commercial refrigeration lot of sales is B2B sales and so the growth will be lumpy given
institutional order placement habit.
Despite late onset of summer in 2019, the temperature was fairly high in the month of April and
first 9 days of May. This has given impetus to the primary sales.
Competition is widespread (new entrant & established player) for room air-conditioners. The
price increase is a function of competition intensity across different part of the country and
models. The company has increased prices on selective models considering competition.
Sustainable margin of UCBG business is 11%. And the company continues to hold to this level.
EMP
Carry forward order book of the Segment stood at Rs 4976 crore as compared to Rs 5062 crore
last year. New orders booked during the current quarter were Rs 392 crore (Domestic) and Rs
626 crore (International).
Rohini Electricals, the subsidiary of the company that executes electrical projects now
contributes 40% to the Domestic Order book. Due to the improved performance, a 50% reversal
of the impairment of Rohini investment in Voltas books has been made possible.
With an uptick in oil prices, broad based pick up is expected in the Middle East economies. It
appears that the hitherto deeper concerns on Qatar, due to political issues, are beginning to
abate. Meanwhile, the company has extended its reach to a new geography having secured an
order in Bahrain.
Early this year, the company had mentioned certain issues surrounding its Joint Venture of
Carillion in Oman. The company is facing some delays in payments and its efforts with the JV
Company and the main client are continuing.
In the Projects space, the company will focus on building a larger order book, albeit continuing
its practice of extensive risk assessment. Needless to state, the strength of its balance sheet,
and the availability of liquid surplus, remains an advantage as it look at opportunities for growth.
Sustainable margin for the project business is 7-7.5% and the company continues to stick to this
band for FY20.
Voltbek
Voltas Beko JV targeting consumer durable appliance space and has to make a mark in the
market, by product offering, market presence and pricing. It is of the view that the company will
be in the investment phase for another 3 years.
The thrust of the JV in the current year is to expand the distribution, widen the product range
and to build the manufacturing site at Sanand as per planned schedule.
Huhtamaki PPL : March 19 quarter saw benefits of

inventory gains and lower raw material costs
The company held its AGM on 9 May 19 and was addressed by Mr. A Basu MD
Key Highlights
Flexible packaging industry as a whole will see radical changes in next 5 years. There is a
phenomenal growth expected in both existing user industries and upcoming new opportunities.
Some of the sectors that will drive the growth include foods and beverages, healthcare,
personal care and household, tube laminations, labels and thermoforms.
CY 18 was a difficult year for the company where it faced turbulent issues of rising raw material
prices, carrying high costs inventories, forex volatility and lower offtake. Expects CY 19 to be
better. Expecting around double digit growth in net sales.
Product innovations and NASP technologies are driving the value added growth for the
company. NSAP now accounts for around 25% of total sales which have better margins and
higher customer retentions.
The company has 17 fully integrated manufacturing facilities with Pan India presence. The
company operated at around 75% of installed capacity in CY 18. There is sufficient head room
available for growth. Plans capex of around Rs 80 crore in CY 19 towards improvement of
processes, reduction of overall costing and value addition in some products.
March 19 quarter saw significant benefits of ban of plastics and thus shifting towards company's
flexible packaging and lower raw material costs with some inventory gains all leading to spurt in
margins and earnings. The company was able to supply alternative recycled structures thereby
providing options to the customers. Exports was also good compared to last quarter.
Exports for CY 18 were at around 22% of total sales as compared to around 25% for CY 17.
Exports were down due to issue in African markets. The company is focusing more on building
new markets in Latin America, North America and UK.
Ajanta Packaging was acquired in June 19 at price of Rs 90 crore and transition was completed
smoothly during the year.
Tax rate will continue to hover around 40% in CY 19. From CY 20 onwards tax rate will move
gradually to normal levels. From CY 21, normal tax bracket will apply.
JMC Projects : Minimum 20% revenue growth guidance

for FY 20
The company held its conference call on 10 May 2019 and was addressed by Manish Mohnot,
Managing Director
Key Highlights
Revenue growth 30% in Mar 19 quarter and 18% in FY 19 is due to better execution in Building
and factories and infra business
Order book of the company stands at Rs 9962 crore as on Mar 19. L1 in excess of Rs 700
crore. Of the total order book, 47% is from B&F private, 9% is from B&F government segment,
36% is from infra, 5% is from industrials and 3% of order book is from international markets.
Order inflow in FY 19 stood at Rs 5629 crore. Order inflow for Mar 19 quarter stood at Rs 1055
crore. Around 56% of total order inflow in FY 19 is from building and factories (B&F) segment
and rest from infra segment.
Expects a minimum of 20% revenue growth in FY 19 with OPM in the range of 10.5-10.7%.
Net debt at JMC standalone level stands at Rs 689 crore as compared to Rs 590 crore for FY
18. Total borrowing at JMC consolidated level stood at Rs 1595 crore as on Mar 19 as
compared to Rs 1533 crore on Mar 18. Aims to reduce debt and interest cost further through
monetization of road projects.
Good growth in road traffic. Around 12.9% growth in toll collection which stood at around Rs
57.9 lakh average in Mar 19 quarter as compared to Rs 53.3 lakh average daily basis of
revenue collection in Mar 18 quarter
Kalpataru Power Transmission : 15-20% revenue

guidance for FY 20
The company held its conference call on 10 May 2019 and was addressed by Manish Mohnot,
Managing Director
Key Highlights
For KPTL
Revenue growth 29% in Mar 19 quarter and 24% in FY 19 is due to better execution in T&D, Oil
& Gas and Railways business
For FY 19, revenues from T&D business stood at around Rs 5050 crore and grew by around
9-10%, rail business was roughly around Rs 900 crore and grew by 70% YoY and Oil and gas
pipeline business grew by more than 100% and stood at Rs 1200 crore.
T&D business has margin of around 11.5% which should continue going forward as well. Rail
and oil and gas pipeline had a margin of around 9.5% in FY 19 which should move beyond 10%
in FY 20.
Order book of the company stands at Rs 14068 crore as on Mar 19. Of the total order book,
around 40% is from T&D international, 16% is from T&D domestic, 17% is from pipeline
business and 27% is from Railways.
Order inflow in FY 19 stood at Rs 8340 crore. Order inflow in Mar 19 quarter stood at Rs 2206
crore. Of the total order inflow in FY 19, around 44% is domestic orders and rest is from
international markets.
From April 19 till date, orders worth of Rs 840 crore is received. L1 in excess of Rs 1500 crore.
For FY 20, expects net sales growth of 15-20% with OPM of around 11%. T&D should grow in
the range of around 12% and Non T&D business (Rail and oil and gas pipeline) should grow
atleast 30% with better margins.
Going forward, expects domestic order inflows to increase in T&D space from green corridor
projects and from SEBs. Financial organizations like REC, PFC and international institutions are
providing funds to SEBs.
Net Debt as on Mar 19 stood at around Rs 510 crore vs 698 crore same period last year. Net
working capital days stood at 93 days. Better collection and advance from international orders
helped in reduction of debt. In international order book, Focus remains in Africa and Saarc
regions.
As far as Transmission assets are concerned, Jhajjar Transmission line in Haryana and Satpura
Transmission in MP are fully operational. Alipurdurar transmission line in West Bengal has
received COD and project execution is in full swing. Kohima Mariani project construction work is
also on full swing. Process to monetize transmission assets portfolio in final stages.
Monetization of assets will be used for debt reduction and for investments in subsidiaries. The
company is also looking for any small acquisitions if any.
Growth in next few years will not be a challenge. Lot of traction from SEBs and Pvt sector
Competition continues to be challenging but it has become more healthy and mature.
For JMC Projects,
Revenue growth 30% in Mar 19 quarter and 18% in FY 19 is due to better execution in Building
and factories and infra business
Order book of the company stands at Rs 9962 crore as on Mar 19. L1 in excess of Rs 700
crore. Of the total order book, 47% is from B&F private, 9% is from B&F government segment,
36% is from infra, 5% is from industrials and 3% of order book is from international markets.
Order inflow in FY 19 stood at Rs 5629 crore. Order inflow for Mar 19 quarter stood at Rs 1055
crore. Around 56% of total order inflow in FY 19 is from building and factories (B&F) segment
and rest from infra segment.
Expects a minimum of 20% revenue growth in FY 19 with OPM in the range of 10.5-10.7%.
Net debt at JMC standalone level stands at Rs 689 crore as compared to Rs 590 crore for FY
18. Total borrowing at JMC consolidated level stood at Rs 1595 crore as on Mar 19 as
compared to Rs 1533 crore on Mar 18. Aims to reduce debt and interest cost further through
monetization of road projects.
Good growth in road traffic. Around 12.9% growth in toll collection which stood at around Rs
57.9 lakh average in Mar 19 quarter as compared to Rs 53.3 lakh average daily basis of
revenue collection in Mar 18 quarter.
Shubham Logistics reported a 80% growth in revenues on YoY basis to Rs 123.5 crore for FY
19. Ebidta margin stood at 29.5% with core positive Ebidta. Loss at PBT level was Rs 10.7
crore. Average utilization is 90%. Expects to report positive PBT going forward.
HCL Technologies : Expects to grow at 16% in constant

currency terms in FY20 but margins can decline
HCL Technologies held its conference call on 9 May 2019 to discuss results and future.
Senior management of the company addressed the call:
FY 2019 was the strongest performing year in history.
In FY 2019 revenue stood at Rs 60,427 crore; up 19.5% YoY. Net Income stood at Rs 10,123
crore; up 15.3% YoY.
FY 2019 revenue growth in Constant Currency is up 11.8% YoY. Revenue in $ terms stood at
8,632 mn; up 10.1% YoY. Net Income stood at US$ 1,441 mn; up 5.9% YoY.
In Q4 revenue stood at Rs 15,990 crore; up 1.9% QoQ & 21.3% YoY. Net Income stood at Rs
2,568 crore; down 1.7% QoQ & up 15.3% YoY.
In Q4 dollar revenue in Constant Currency grew 3.3% QoQ & 15.3% YoY. Revenue stood at $
2,278 mn; up 3.5% QoQ & 11.8 YoY. Net Income stood at $ 364 mn; up 0.1% QoQ & 5.9%
YoY.
Disruptions in the global business environment and technology landscape are shaping the world
at large.
It has delivered a blockbuster performance with a double-digit constant currency revenue
growth that outperformed the high-end of guidance.
With 28.7% YoY growth in constant currency, its new Mode-2 services delivered strongest
growth.
Once again, for the third time this year, it set a new bookings' record. These numbers are an
emphatic testimonial of the brilliant execution of its chosen market strategy and ability to provide
an annual guidance and deliver to it for three years in a row.
In FY 2019 It achieved significant milestones: Revenue exceeded Rs 60,000 crore , EBITDA
stood at around Rs 14,000 crore and Net Profit crossed Rs 10,000 crore mark.
FY 2019 cash EPS stands at robust Rs 84.9 (up 15.2%).
The company has returned 52.6% of net income in the form of dividends & buyback to the
investors.
HCL Tech expects to grow at 16% in constant currency terms in 2019-2020. The CC guidance
translates into 13.4% to 15.4% in $ terms based on 31 March 2019 exchange rates,
Incremental revenue HCL added last year from products it bought from IBM over the last year
was revenues of $300 million, or 38% of the $794 million.
The company also bought seven more products from IBM in the March quarter, details of which
it has chosen not to share.
HCLT expects a 0-100bps yoy decline in FY20 margins due to preparatory investments for
to-be-acquired IBM IPs, deal ramp-ups, and hedging costs (-25 bps impact in FY20). However,
a large part of these planned investments appear to be one-time in nature.
For FY 2020 it expects EBIT range of 18.5% to 19.5%
Next-gen services have seen robust growth, growing at 28.7% YoY in Constant Currency on the
back of a strong sequential quarterly growth.
FY'19 witnessed a broad-based growth across verticals driven by Tech & Services at 30.7%,
Lifesciences & Healthcare at 22.5%, Telecommunications, Media, Publishing & Entertainment at
17.5%, Retail & CPG at 16.8% and Public Services at 11.6% (in CC).
Strong deal win momentum continued in Q4. It signed 17 transformational deals. A total of 78
transformational deals were signed in FY'19, representing a well-balanced mix across service
lines, industries, and geographies.
The company experienced strong growth globally. The Americas and Europe grew by 15.1%
and 18.7% respectively in LTM YoY on CC terms.
In Q4, the company acquired, SBE ,a digital transformation consulting firm. SBE will enhance its
digital consulting offerings in digital strategy development, agile program management,
business transformation and organizational change management.
In FY 2019 it added 19 clients in $ 5 ,million category, 6 in $ 10 million category, 8 in $ 20
million category, 1 in $ 50 million category and 2 in $ 100 million category.
South Indian Bank : In FY 2020 it expects advances

growth of 18-20% with focus on retail, MSME and agri
portfolio
South Indian Bank conducted conference call on 10 May 2019 to discuss results and future
prospects.
V. G. Mathew, Managing Director & CEO o f the Bank addressed the call.
Strategy to expand retail MSME and agri business and increase the share of other income and
improve CASA is intact.
Corporate advances had muted growth as the company focused on retail, MSME and agri
portfolio.
The company does not have any exposure in sectors like Aviation, telecom and EPC
contractors etc. It has exposure to a steel company which has record of no defaults in its entire
history of existence.
It did not have any exposure in road construction companies in last 4 years.
The management believes that it has very clean portfolio.
In FY 2020 it expects advances growth of 18-20% with focus on retail, MSME and agri portfolio.
Investment book stood at Rs 19525 crore.
There was Rs 114 crore NPA loan from Kerala based dental hospital/ medical college. It has
very large amount of security and the management has no concern of recovering the money.
Non corporate NPA is Rs 250 crore.
It saw sharp growth in NPA in Agriculture to Rs 100 crore during the quarter.
Retail Banking Department will focus on retail loan & liability/investment products.
CASA grew 13.6% to Rs 19467 crore.
Cost income ratio should come down due to higher fee income and operational efficiencies.
PCR improved to 42.46%.
Credit cost stood at 112 bps for the quarter and 109 bps for the FY.
It targets credit cost of 1.0-1.05% for FY 2020.
In FY 2019 mortgage loans sanctioned stood at 3428 Nos. and it was worth Rs 1346 crore.
The bank targets to become banker of choice to SMEs thereby getting other business as well
–liabilities, vehicle finance.
9 new branches were opened in Kerala in FY 2019 and 4 were opened in South India ex-Kerala.
Retail Loans (Excl. Gold), Agriculture & SME grew 20% in FY 2019.
Around 16.81% of the agriculture & SME loans are backed by additional security.
Cost to income ratio stood at 54.88% against 54.68% in Q3 and 47.17 in March 3018 quarter.
NIM stood at 2.58% March 2019 quarter against 2.62% in December 2018 quarter and 2.84% in
March 2018 quarter.
The company is really working hard on the CASA side and improvement is bound to happen.
In Rs 50-100 crore bracket the company has zero MSME accounts. In 25-50 crore bracket it has
2 accounts amount to Rs 98 crore and in 5-24 crore bracket it has 46 account amount to 340+
crore.
The company has clear growth plans and will require to raise funds.
CRAR stands at 12.61%
It has no exposure in Reliance ADAG group or Essel group of companies.
For the next 4 quarters slippage guidance is Rs 250 crore.
HT Media and Hindustan Media Ventures : In Q4,

government accounted for 35% of total advertisement
due to election
HTMedia and HMVL held their combined conference call on 10 May 2019 to discuss results and
future.
HT Media net consolidated sales stood at Rs 535.66 crore in Q4, down 2%. It reported net loss
of Rs 21.08 crore against a net profit of Rs 85.36 crore.
In FY 2019 HT Media's sales fell 5% to Rs 2193.87 crore. It reported net loss of Rs 26.91 crore
against a net profit of Rs 352.08 crore.
HMVL net sales stood at Rs 212.97 crore in Q4, up 5%. PAT fell 59% to Rs 16.49 crore.
In FY 2019 HMVL's sales fell 2% to Rs 865.83 crore. PAT dived 58% to Rs 71.90 crore.
The sluggishness in the broader advertising environment due to muted ad spends by large
corporate advertisers, coupled with high newsprint prices weighed down performance for the
quarter.
However the company sees some positive impact on the back of recent changes in pricing
policy for government ads and an increase in local advertising.
In Q4, gov. accounted for 35% of total advertisement due to election. For the year it is 20%.
Raw material prices have started to moderate from their historically high levels, and should
provide some relief going forward, resulting in an improvement in profitability.
Q3 2019 saw highest newsprint rate at $ 750/MT. It fell 10% in Q4 of 2019 and Q1 of FY 2020
saw another 10% fall. The company did not see any benefit of lower newsprint price in Q4 due
to inventory. It will see the benefit in Q1 of FY 2020.
Its English business (HT Media) continues to be soft but its Hindi business (HMVL) posted
robust growth in advertising revenue indicating a resurgence in regional language markets.
In Apr'19, the company completed acquisition of majority stake in Next Mediaworks.
With the acquisition of a majority stake in NextMediaworks (RadioOne), the company's radio
business now has a formidable network across all metro markets.
Acquisition of majority stake (51%) in NMW makes HT Media the strongest radio company in
metro markets. The Acquisition added total 7 stations in metro cities and gave entry into new
markets of Pune and Ahmedabad.
For 2020 the management is confident of a better performance on account of higher yields from
government advertising, lower newsprint prices, and prospects of a more conducive advertising
environment.
Effective January 2019, DAVP rates were increased by 25%.
It saw improvement in market share across key markets in both Hindi and English newspapers
during the year.
It saw traction in Government, Entertainment and BFSI categories during the quarter.
Profitability was impacted on account of high newsprint prices and softness in revenue.
Ad Yields remained under pressure during the year.
Circulation revenue remained flat during the year due to high competitive intensity.
It witnessed revival of local advertising spends in the year which was largely yield driven.
National advertising was sluggish due to muted Ad spends by corporates.
In Q4 HMVL it saw government advertising growing on account of higher volumes and DAVP
price increase.
Categories such as FMCG and BFSI witnessed growth in HMVL.
Its Hindi business maintained market share during the year.
HMVL saw softness in Ad spend during the quarter in key categories such as Auto, Education,
Industrials and Durables.
Radio business saw double digit operating revenue growth during the year. It saw yield growth
across core, new metro and UP stations.
In Q4 Radio business saw strong growth in BFSI, Government and Telecom categories.
HMVL has long debts stuck with the government department at the industry level. The company
is putting effort to reduce the debtor days.
The board of directors of the company has approved an investment upto Rs 4 crore in equity
share capital of Aleph Digital Solutions Pvt. Ltd. Aleph Digital Solutions Pvt. Ltd (ADSPL),
operates "Pebble", a hyper-local content marketplace and "Loca!Heading", a news site. Pebble
is a dual sided marketplace for journalists and publishers to buy and sell content pieces.
Loca!Heading is a local news aggregation portal. The portal is proposed to have content by
reporters after a certain time has elapsed for the content in the marketplace.
The company will make investment in two tranches of Rs. 2 crore each, on or before 31 March,
2020. Strategically, the investment would offer opportunity to build key propositions in news
gathering and news aggregation in an asset light model, with relatively low outlay and risk.
ADSPL had net sales of Rs 0.478 lakh in FY 2019.
Central Depository Services : Maintains higher incremental

market share of 63-64% in FY2019
Central Depository Services conducted a conference call on 08 May 2019 to discuss the
financial results of the company for quarter ended March 2019. Bharat Sheth, CFO of the
Highlights:
The company has maintained higher incremental market share of 62% in terms of beneficiary
owner addition in Q4FY2019. The company has opened 25 lakh new accounts compared with
14 lakh accounts opened by the other depository in FY2019, while maintaining incremental
market share of 63-64% in FY2019.
The number of beneficiary owner accounts has increased to 1.73 crore end March 2019 from
1.48 crore end March 2018.
The company has posted strong growth in other income driven by mark-to-market gains of Rs
21 crore. This has led to decline in the tax rate 23% in FY2019 from 26% in FY2018
The revenue breakup for Q4FY2019 - annual issuer income Rs 17.92 crore, transaction charges
Rs 9.83 crore, e-voting charge is Rs 1.89 crore, IPO corporate action charges Rs 4.16 crore,
KYC online data charge Rs 7.52 crore.
The revenues of the company were impacted due to subdued market condition and lower IPOs
in FY2019.
The company has generated one-off document verification charges of Rs 2.85 crore in CVL on
government projects, while the company expects to generate these charges for one more
quarter.
As per the company, the regulatory requirement is for cash of Rs 300 crore, of which Rs 100
crore is for CDSL, Rs 75 crore for CVL, Rs 50 crore for CIRL, Rs 30 crore for CCRL, Rs 24
crore for DP deposit and some amount for government project.
The revenues for CDSL insurance were Rs 50 lakh, CDSL commodities Rs 67 lakh and GST
side were Rs 60 lakh in FY2019.
The company has so far onboarded 520 universities in National Academics Depository, while
updated about 10.5 million records. As per the company, the pricing in National Academics
Depository depends on charges per record uploaded by the universities and verification of
records by verifier. The charges will be decided by the MHRD from September 2019.
The company has added 1400 unlisted companies in FY2019.
The number of KYC account has increased to 1.9 crore.
The company expects new Managing Direct to be elected by June 2019.
In commodity repository business, the company has added 712 new service providers and 150
repository participants.
The investments of the company are mainly AAA rated portfolios, and do not pose any
concerns.
Shriram Transport Finance : Targets AUM and

disbursements growth of 20% with stable margins and credit
cost for FY2020
Shriram Transport Finance conducted a conference call on 08 May 2019 to discuss the financial
results of the company for quarter ended March 2019. Umesh Revankar, Managing Director of
the company addressed the call:
Highlights:
AUM of the company increased 9% to Rs 104482.29 crore, driven by new vehicles loan book
rising 5% to Rs 11594.08 crore, while used vehicles loan book moved up 8% to Rs 87049.97
crore at end March 2019. Other loans surged 32% to Rs 5838.24 crore end March 2019.
Asset quality has improved in Q4FY2019 with Gross NPA ratio moderating to 8.29% at end
March 2019 and Net NPA ratio declined 2.55% at end March 2019. The company has improved
the NPA coverage ratio at 71.1% at end March 2019 from 70.9% a quarter ago.
The company is upbeat about the growth prospects for FY2019 with expected to pick up in
demand up post elections, forecast of a normal monsoon and pre-buying ahead of BS VI
implementations.
The company is targeting the disbursements growth of 20% for FY2019, while expects the AUM
growth to accelerate to 12-15% by end September 2019 and 18-20% by March 2020. The
company would maintain focus on rural segment that also provides better yields.
The disbursements of the company stood at Rs 11958 crore in Q4FY2019 with new vehicles
loan disbursements were Rs 812 crore, used vehicles Rs 11025 crore and others at Rs 122
crore.
The company has added 332 branches and recruited 3000 staff in FY2019, while the company
targets to 250 branches and recruit another 3000 staff in FY2020.
After challenging Q3FY2019 on liquidity front for the NBFC sector, the liquidity situation has
completely normalized, while the company do not facing any constrains on liquidity front.
An incremental cost on domestic borrowings of the company stood at 9.5%, while book cost of
borrowing stood at 9%.
The company has conducted portfolio selldown deals of Rs 3600 crore including assignment of
Rs 800 crore in Q4FY2019 and Rs 15123 crore in FY19 including Rs 2800 crore through
assignment.
The ALM continues to be comfortable with positive cash-flows in all buckets. The company
would maintain the additional liquidity of Rs 8000 crore in FY20.
The company has conducted write-off of Rs 806 crore, while write-back was Rs 267 crore
leading net write-off of Rs 540 crore in Q4FY2019. The write-off for FY2019 stood at Rs 2347
crore.
The company expects 15% increase in the prices of new vehicles due to BS VI implementation,
which would have ripple effect on the prices of used vehicles.
The company has reduced credit cost close to 2% in FY2019, while expects to maintain steady
credit cost 2% in FY2020.
The margin is expected at 7.2% for FY2020.
PNB Housing Finance : Corporate loan book accounts for

21% of AUM with lower GNPA of 0.17%
PNB Housing Finance conducted a conference call on 09 May 2019 to discuss its financial
results for the quarter ended March 2019. Sanjaya Gupta, Managing Director of the company
addressed the call:
Highlights:
. The loan book of the company surged 30% Rs 74023 crore, while overall AUM jumped 36% to
Rs 84722 crore end March 2019 over March 2018. The disbursements declined 2% to Rs 8562
crore in the quarter ended March 2019.
. The net interest margin was healthy at 3.18% in the quarter ended March 2019, compared with
3.06% in the previous quarter.
. Gross NPA ratio was stable on sequential basis at 0.48% and Net NPA ratio at 0.38% at end
March 2019.
. On liabilities front, the company focused mainly on long term borrowing to improve ALM. The
company raised liquidity of Rs 30858 crore in FY2019, of which 55% were mobilized in
H2FY2019 through bank term loans, NHB refinance, ECB and deposits. The NHB sanctioned
Rs 3500 crore in Q3FY2019, which has been fully drawn in Q4FY2019.
. On the Deposits side, the company continues to be the second largest deposit taking HFC in
the country. The deposits with the company have increased 24% to Rs 14315 crore at end
March 2019. The company has over 1.5 lakh deposit accounts.
. The company has maintained healthy cash and liquid investment on balance sheet at Rs 7000
crore, while the undrawn sanctions stands at Rs 2000 crore.
. The company has exhibited an improvement in spreads driven by higher yields and decline in
cost of borrowings, while the company is confident of maintaining net spreads at more than 200
bps. An incremental cost of borrowings stood at 8.28%. The cost of borrowing for the company
has decline driven by NHB refinance.
. As per the company, five corporate accounts that are stressed have exposure of Rs 600 crore
and are spread in MMR, NCR, Hyderabad and Bangalore. It has security cover of 2-2.5x.
. The exposure to Supertech stood at Rs 220 crore as corporate term loan and Rs 272 crore as
construction finance. The exposure to Lodha is Rs 1200 crore.
. The corporate segment accounted for 21% of AUM, of which 13% is construction finance, 4%
is LRD and 4% is corporate term loans. The 30 days overdues of the company have declined to
1.7% from 2.57% a year ago. The GNPA ratio stood at 0.17% end March 2019.
. The company has recorded recoveries of Rs 113 crore from 3 accounts in FY2019 with
write-off of Rs 3.14 crore.
. The loans under subvention scheme stood at Rs 600 crore, which is 0.07% of AUM.
Deepak Nitrite : Expects much improved performance in

all the segments in FY 20
Deepak Nitrite held its conference call on 10 May 2019 which was addressed by Umesh Asaikar
CEO
Key Highlights
International events are working favourable for India. Heightened level of opportunity with
organic growth and replacement of demand from China is aiding better volumes and margins.
Higher demand from domestic market as well is visible.
Deepak Phenolics (DP) already achieved quick ramp up of 80% capacity utilization. Indicates
further scaling up going forward. Rs 533 crore of sales in 5 mths with PAT positive.
All business verticals are performing well.
OBA performed well due to complete backward manufacturing facility. Prolonged shut down in
facilities in China also aided better margins. Expects higher prices will continue to remain till
Sep 19 atleast which will aid the company. Chinese manufactures are having rough and tough
time.
Growth trajectory is strong and the company is entering FY 20 with positive outlook. Expects
much improved performance in all the segments in FY 20.
Debt equity 1.11, lower than expected
The company has plans for further derivatives of Phenol and Acetone going forward. 35% of
Phenol and Acetone will be consumed captive for high value derivatives in future.
No pressure on margins or on any reduction in spreads in coming years.
Expand capacities due to higher demand. Overall capex Rs 200 crore for Deepak Nitrite and on
Rs 100 crore in Phenol side.
Not importing any raw material from China. So any Chinese related issues which other
companies are facing are not applicable to the company.
Working with reputed agro chemical companies worldwide which will result in further increasing
offtake going forward. The company is also working with one of global Pharma company for
some intermediates on anti HIV segment. Not much details being shared as its too early to
discuss.
Hikal : Expects 10-15% growth in FY 20 and at least

15-20% growth thereafter for next couple of years
The company held its Conference call on 10 May 2019 and was addressed by Mr. Sameer
Hiremath
Key Highlights
Overall, of the total sales, around 20% is domestic and rest is exports. Of the total export
revenues, around 50% comes from US, 30% from EU and 10-15% from Japan and rest in
ROW.
Increased volumes and better productivity drove margins in FY 19.
In pharma higher volumes due to debottlenecking exercise carried in FY 18 additional capacities
were available.
In pharma business, around 50% revenue is from Contract Manufacturing (CM) and balance
from own portfolios ie general product portfolios. There are 15-17 products under CM and 12-13
under general product portfolio. The company is witnessing increased enquiry from Japan for
generic product portfolio.
In Crop protection (CP), around 80% of revenues is from CM and balance is from general
product. There are around 10-12 products in CM and 5-6 products in generic product portfolios.
Geographically, Latin America and EU each contributed 25-30% of revenues, and Japan and
US contribute around 20% each.
Overall in FY 19, volume growth was around 2% and rest was due to value growth. Around 50%
increase in value growth is due to price increases and rest is due to better product mix.
Within Pharma around 8-9% was volume led growth, while crop protection volumes were flat.
25% value growth for pharma and 19% value growth for CP business in FY 19.
China constraints due to environmental concerns resulted in better realisation in CP. Lot of
production issues in China helped the company.
Expects business to remain strong in FY 20.
Net debt remains around Rs 665 crore debt. Working capital days were lower by 20 in FY 19
and stood at 120 days working capital in FY 19 due to better operational efficiencies.
The company has capex plans of around Rs 350 crore in next 18-24 mths largely in Paloni
facility for manufacturing multiproduct facilities for both CP and Pharma business. Asset
turnover expected is atleast 1.5x post the capex.
Expects around 10-15% revenues growth in FY 20 and atleast around 15-20% in next couple of
years, post the capex going forward. Expects 50 bps improvement in margins in FY 20.
CP margin for Mar 19 quarter was a one off.
Capex is more towards high value products
The company was able to pass on raw material price increases to customers
The company will increase complex API, complex agro chemical products manufacturing going
forward. There is a clear and firm demand and visibility from clients.
Oberoi Realty : Price increase opportunity will open up
with preference move away from distress inventory
Oberoi Realty hosted a conference call on May 13, 2019. In the conference call the company
was represented by Vikas Oberoi, Chairman & Managing Director and Saumil Daru, Director
Finance.
Area booked in Q4FY19 was 1.45 lakh sft (valued Rs 319.14 crore) as against 1.31 lakh sft
(valued Rs 263.32 crore) in Q4FY18. Units/Apartments sold by the company in FY19 were more
than that of FY18.
When most developers in Mumbai market are falling apart the company wants to cash in and
improve market share.
Though, inventory under pipeline in the market is large/lot-more, the completion of all of them is
tardy. Thus the demand will shift towards project developed by good/credible developers and
this will also open up opportunity for price increase.
Stake of the company in South Mumbai project is 60% with JV partner holding balance 40%.
The size of the south Mumbai project is about 400000 sft valued/worth about Rs 2000 crore.
Already started development of Rehab component of south Mumbai projects one that rehab
completed then the presale component will be taken up.
Now Commerz II is fully leased barring one floor.
Sky City, Borivile East – Estimated total units was about 2966 units. Construction work for 3
additional towers started and the work on Mall has also going on. Launched five towers close to
about 1800 odd apartments so far and booked close to 1079 units till now. The company don't
want to add additional inventory and want to phase out the launches in such a way.
Enigma realization dip is due to sales mix. Different views wings have different price.
Three Sixty West – The company hope to apply for occupancy certificate (OC) soon and expect
OC by end of Sep 2019. Part OC is expected between Jun-Sep 2019 and full OC by end of the
year.
The company was able to launch the Borivali project within 18 months of closing the land parcel
purchase. In Borivali the company is constructing more than 10 mln sft.
Inventory left in Esquire is worth about just Rs 1000 crore and in apartments it is about 200
apartments.
In existing projects of the company no fresh inventory is going to come from next phases with-in
3 years.
The company is not hesitant to buy land it depends on what sort of land parcel and what kind of
price it is coming up. The company is looking at return on time invested. The company is not
only looking at large land parcel the company is also looking at smaller land parcels. But the
competition for smaller land parcel is higher compared to large land parcels for which the buyers
were few and price if fair.
Thane project the company is close to closing the deal.
Worli Mall – the company is on level 4 plus basement construction.
Vodafone Idea : On track to deliver Rs 8400 crore of

targeted run-rate costs synergies by FY21, two years
ahead of the initial target set at the time of the merger
Vodafone Idea held its conference call on 14 May 2019 to discuss results and future.
Top management of the company addressed the call.
Vodafone India Limited has merged into Idea Cellular Limited (ICL) on 31th August, 2018.
Consequently, the name of the company has been changed from ICL to Vodafone Idea Limited.
The company successfully completed India's largest rights issue raising Rs 25000 crore. The
strong participation from public shareholders (ex-promoters) resulted in 1.2x subscription for the
public component of the issue.
The company covers around 90% of the Indian population in over 470,000 towns and villages
with its Voice services. The company has also introduced 4G VoLTE across all 22 circles to
provide enhanced voice experience to its 4G subscribers and for better capacity management.
The strategic initiatives taken post-merger to improve revenues and ARPU, have started to
become visible.
Revenue rose 0.1% sequentially to Rs 11,775 crore as the company introduced the minimum
recharge plan, aimed at weeding out low-paying subscribers. However, this also led to the loss
of 53.2 million subscribers who switched to rival telcos rather than recharge, taking its user
count to 334.1 million at the end of March.
The minimum recharge plan helped the telco's average daily revenue (ADR) for the quarter
grow 2.3% sequentially, after declining for 11 prior quarters, and helped average revenue per
user (ARPU) increase for the second successive three-month period - up 16.3% to Rs 104.
The company is focused on fortifying its position in key profitable districts by expanding
coverage and capacity of its 4G network, targeting higher share of new 4G customers and also
improving cash flows through cost transformation.
Total operating expenses for the quarter declined sequentially due to the realisation of merger
synergies. It had realised annualised synergies of Rs 5100 crore, about 60% of the Rs 8400
crore annual synergy target.
Capex was ramped up to Rs 3230 crore for the quarter to increase 4G coverage.
The company removed surplus equipment on 24000 sites out of the total 67000 co-located
sites. Additionally, it has also exited about 9,900 low utilisation sites. Both initiatives have
yielded significant cost saving.
Network integration continues to move at a fast pace.
Following the merger of Vodafone India and Idea Cellular on August 31, 2018, the company has
accelerated the integration of the two businesses and is on track to deliver Rs 8400 crore of
targeted run-rate costs synergies by FY21, two years ahead of the initial target set at the time of
the merger announcement in March 2017.
The integration efforts led the company to record one-time charges amounting to Rs 1145.8
crore in the quarter.
Unique broadband locations and broadband sites declined this quarter as the process of
redeployment is currently underway. Once the redeployment exercise is completed the overall
broadband site count, and subsequently, the population coverage would improve significantly.
Its 4G population coverage reached 65% as of March 2019, compared to less than 50% for
each of the brands in August 2018.
During the quarter, it added 5.4 million 4G customers, taking the overall 4G subscriber base to
80.7 million.
The company has the option to sell its 11.15% stake in Indus Towers, which has an implied
value of Rs 6160 crore, once the merger of Bharti Infratel and Indus Towers is cemented. The
company is also exploring options to monetize over 158,000 Kilometers of intra-city and
inter-city fibre.
Total data volumes grew 9% to 2,947 billion MB compared to the last quarter and the average
daily data volume increased by 11.4% to 32.7 billion MB in the fourth quarter.
However, total minutes on the network fell by 1.3% due to reduction in incoming minutes
following the disconnection of Incoming only or low ARPU customers.
The company raised Rs 25,000 crore via a rights issue in April to repay debt and free up cash
for 4G expansion.
Net debt stood at over Rs 1.18 lakh crore at March 2019 end.
The pro-forma capex spend for FY19 was Rs 10220 crore.
Gross debt as at March 2019 was Rs 125940 crore, including deferred spectrum payment
obligations due to the Government of Rs 90680 crore.
Cash & cash equivalents were Rs 7550 crore resulting in net debt of Rs 118390 crore (vs Rs
114900 crore in Q3FY19).
Capacite Infraprojects : Residential segment contributes

76% of the order book and Commercial & Institutional
segment contribute 24%
Capacite Infraprojects held its conference call on 14 May 2019 to discuss results and future.
Rohit Katyal ED & CFO of the company addressed the call.
The company provides end-to-end construction services for High Rise and Super High Rise
Buildings, Townships, Mass Housing, etc. in the residential space, Office Complexes, IT & ITES
Parks in the commercial space and Hospitality, Healthcare Facilities, Industrial Buildings,
MLCPs in the institutional space.
FY19 was a challenging year for the construction industry, as it faced various headwinds in the
form of liquidity crisis in the NBFC sector, the NGT issues in the north, etc.
Despite these challenges, Capacit'e not only managed to grow by 34% YoY but also received
highest order inflow of Rs 3629 crore in FY 2019.
Around 50% of the orders are repeat orders from existing clients. This demonstrates the faith
exhibited by clients in capabilities.
Sales for the quarter ended March 2019 grew 31% to Rs 497.63 crore. OPM fell 290 basis
points to 13.5% which saw OP rise 7% to Rs 66.99 crore. Net profit went up 16% to Rs 25.94
crore.
In FY 2019 sales jumped 34% to Rs 1787.61 crore. OPM fel 130 basis points to 13.9% which
saw OP rise 22% to Rs 248.48 crore. Net profit went up 21% to Rs 95.58 crore.
FY 2019 revenue growth is higher by 4% on account of IndAS 115 adoption w.e.f. 1st April 2018
pursuant to which an amount of Rs 57.4 crore is included in total income for FY19 (against NIL
for FY18)
Cash PAT for FY19 was Rs 198 crore as compared to Rs 161 crore during FY18, up 23%.
Cash PAT for Q4 FY19 stands at Rs 59 crore, against Rs 62 crore yoy.
Total collections during FY19 was Rs 1745 crore.
Net Working Capital Days (Excluding Retention) is 67 days vis-a-vis 58 days as on March 2018.
There was one time 12 days increase because of raw material advance not getting netted off in
the same month of March 2019. The management is confident of continuing working capital
days of 55-56 days going forward.
Total Order book (Private + Public) excluding MHADA as on March 2019 stood at Rs 7177
crore. Residential segment contributes for 76% of the order book and Commercial & Institutional
segment contributed for 24%.
Large part of order book is contributed by High Rise and Super High-Rise Buildings at 43%
followed by Gated Community at 35%.
Order book from the Public sector as at the end of March 2019 stood at Rs 915 crore.
The company received order worth Rs 484 crore from Municipal Corporation of Greater
Mumbai, Health Infrastructure Cell in Q4FY19.
Top 10 Client groups contribute 75% of the order book.
The company added Raheja Corp and Raymond as its clients during the quarter. It will continue
to add good clients. Going forward client quality and geography will continue to draw order
philosophy. It received order worth Rs 100 crore from Rajeha Corp for commercial building
where Siemens building used to stand before.
The company's strong client base is resulting into repeat orders and yielding a large order book
with high revenue visibility.
With the rising market share of Tier 1 Organized Real estate Developers, many of whom are its
clients, and increasing opportunities in the Commercial & Institutional space the management is
confident of carrying the positive momentum in times to come.
The authorities have approved to release 3,355 hectares of land previously designated as
no-development zone for building apartments and commercial complexes in Mumbai of which
2,100 hectares of it will go for affordable housing under the Development Plan 2034. Target is of
1 million affordable homes, theme gardens, pay and park zones, old-age homes, walking
provision, farmers market, etc. The company continues to be a prominent development
company in west Mumbai.
Problem with the NBFC industry was a shock for the company. The crisis of NBFC has now
taught that sanction letter from NBFCs will no longer be the basis for closing the project. Bank
letter would be must along with the pedigree of the client.
Capex for FY 2019 was Rs 889 crore. Capex for FY 2020 is planned at Rs 75 crore.
It will continue to focus on good clients. On public sector it will continue to focus on MMRDA,
ONGC, BMC, CIDCO etc.
By FY end target for public sector order book is to be around 18-22% of total order book.
The company does not intend to enter new geographies in a hurry as there is element of
caution.
Target for EBITDA margins continue to be at 15.7-16.3%.
State Bank of India : Expects to achieve RoA of 1% in

FY2020 ahead of earlier guidance of FY2021
State Bank of India conducted an analyst meet on 10 May 2019 to discuss the financial
performance for the quarter ended March 2019 and prospects of the bank. Rajnish Kumar,
Chairman of the bank addressed the call:
Highlights:
The bank has maintained asset quality and fresh slippages of loans under control, while the
bank has provided more than required provisions for the legacy assets. The provision coverage
ratio has substantially increased to 78.7% end March 2019 from 74.6% a quarter ago and
66.2% a year ago.
The credit cost of the bank has moderated to 2.66% in FY2019 from 3.62% in FY2019.
However, the provisions for fresh slippages in FY2019 amounted to only 0.52% and the rest
was for the legacy book. Thus, the bank expects credit cost for fresh slippages to be
substantially less than 1% in FY2020.
The net NPAs in the corporate loan book of the bank stands at Rs 34000 crore with
recoverability of 50%, so this book requires provisions of Rs 17000 crore in FY2020 and the
bank expects its overall credit cost to be much under control in FY2020.
The fresh slippages of loans declined to 1.6% in FY2019 from 4.85% in FY2018. The bank
expects its asset quality to be under control going forward, as it has taken series of steps such
as rewriting of loan policies, cash flow based lending, credit monitoring department, early
warning system, stressed asset resolution group etc.
The bank has exhibited sharp decline in SMA 1 and 2 category loan book to Rs 7762 crore end
March 2019 from Rs 17059 crore end December 2018 driven by upgradation of one large
private sector power account. Also, the corporate segment share is less than half of the total
SMA loan book.
The bank has recorded strong recoveries of Rs 38000 crore in FY2019, of which Rs 13000
crore came from IBC process. The bank expect to record similar recovery performance targeting
recoveries of Rs 35000-38000 crore for FY2020 with three accounts relating to Essar Steel,
Bhushan Power and Alok Industries would contribute recoveries of Rs 16000 crore by end
December 2019.
With healthy credit growth of 12-14%, yields rising, cost of deposit moderating, better NIMs with
rising share of performing loans, other income doing well, opex under control, lower credit cost,
improved competitive scenario in favour of bank, the bank expects to achieve ROA of 1% in
FY2020 ahead of earlier guidance of FY2021.
The bank is looking at pre provision operating profit of Rs 70000 crore for FY2020. Further, it
expects recoveries income of Rs 16000 crore from 3 accounts under NCLT and around Rs 5000
crore including stake sale in two subsidiaries totaling to operating profit of Rs 90000 crore for
FY2020. After provisions and tax, the net profit is expected to be in the range of Rs 35000 to
40000 crore for FY2020, which would support the bank to achieve RoA of 1%. Even, in case of
any uncertain shock, the bank expects to comfortably achieve RoA of 0.75% in FY2020.
The bank is targeting the net interest margin of 3.25% for FY2020, on account of better yields
and decline in cost of funds, while the share of performing loans is also rising supporting the net
interest margins.
The bank had made additional expenses of Rs 6000 crore for employee benefit in FY2019, of
which Rs 3800 crore related to pension benefit and Rs 2100 crore related to the gratuity. The
bank expects its pension expenses to halve to Rs 1900 crore and there would be no need to
make gratuity provision, substantially reducing expenses for employee benefit in FY2020.
The bank does not have any concern on deposit growth, as its credit-deposit ratio stands at
70% and it would be comfortable till rises o 75%.
The loan mix between retail and corporate stood at 58-42 end March 2019, while the bank
expects to maintain the current loan mix going forward.
The write-off loans stood at Rs 59000 crore in FY2019, bulk of which was corporate at Rs
45000 crore.
Under NCLT 1 list, the bank has made provisions of 99% with additional provisions of Rs 10800
crore for 3 accounts in Q4FY2019 as they have shifted to D3 category and the bank did not ask
for dispensation from the Reserve Bank of India on these accounts and they are on the verge of
recovery.
The provision on NCLT 2 list stands and 87% and provisions on overall NCLT exposure is 93%
end March 2019.
The bank does not expect any major resolution in the power sector as most of the accounts
have been sent to NCLT. The NPA in power sector stands at Rs 25000 crore, with the provision
of 45-50%. The bank is expecting resolution of 2 power accounts in near term with the exposure
of Rs 1800 crore.
The bank has recorded cash recoveries of Rs 38000 crore, of which Rs 8300 crore came from
advance under collection account (AUCA).
Under NCLT 1, the balance sheet exposure is Rs 24000 crore of which Rs 8800 crore is under
AUCA, while NCLT 2 exposure is Rs 14000 crore of which Rs 11000 crore is under AUCA.
The bank's exposure under AUCA is above Rs 1 lakh crore end March 2019.
The bank has exposure of Rs 3487 crore to IL&FS, of which Rs 1125 crore is classified as
NPA and the bank has made provisions of 40.1%. Under standard exposure, a red category is
Rs 451 crore with 22% provision. The bank expects recoveries in SPVs to be much better.
The bank has classified its exposure to Jet Airways as a substandard and also made a provision
which is higher than regulatory requirement. The NPA in Jet Airways is Rs 1220 crore, which
adds 7 bps to GNPA.
The non fund based exposure to NPA accounts stands at Rs 8700 crore end March 2019.
Bank does not have any exposure to commercial real estate, while exposure is limited to
residential project of Rs 200 Rs 300 crore.
The bank has announced promotion results well in time for FY2019 and the new posting will
take place in next 10 days.
The bank is putting strong focus on data analytics and it is sitting on huge database which will
be utilized for right decision making.
On digital front, the bank has been leader, while in next 18 month the bank expects to have a
unique system in place.
The exposure to NBFC sector stood at 7% of the loan book, which is in line with the internal cap
for the sector. Also, all industry exposures are linked Tier I capital and any industry exposure will
not exceed the Tier 1 capital.
The bank has linked its interest rate on cash credit and overdraft facility of over Rs 1 lakh to RBI
repo rate effective from 01 May 2019, while reduce the rate to 8.25% from 8.5% on account of
RBI repo rate cut in early April 2019. The cash credit and overdraft book stands at Rs 5 lakh
crore.
The RIDF book of the bank stands at Rs 1.3 lakh crore end Marc 2019.
Unrated exposure of the stood at 9%, while BB and below rated portfolio accounted for 18% of
the corporate loan book.
Fresh slippages of loans stood Rs 7500 crore in Q4FY2019, of which Rs 2284 came from
corporate, Rs 2092 crore from SME, Rs 2592 crore from agriculture and Rs 537 crore from
personal loan segment.
Segment wise, corporate loan book growth was at 14.83% personal loans at 18.53%, SME at
6.92% and Agriculture at 7.67% end March 2019
The bank would be able to grow its loan book easily at 12% without capital infusion, while the
bank may consider capital raising at a better market value of Rs 400 per share.
Mahanagar Gas : Expects its total volume to grow by 6% in
FY20
Mahanagar Gas held a conference call to discuss the results for the quarter ended March 2019
and way forward. Managing Director- Mr. Sanjib Datta and CFO Mr. Sunil Ranade along with
Senior Vice President Commercial -Mr.Rajesh Wagle, of the company addressed the call.
LNG imports have witnessed significant increase over the past few years. The company expects
LNG demand to witness significant growth going ahead due to shift to cleaner fuels like CNG,
PNG etc in order to reduce emission and Government's push towards clean energy is prompting
all public vehicles in the city to convert to CNG.
Net sales increased 23.1% to Rs 722.54 crore in Q4FY19 compared to Q4FY18 while Net profit
was up 27.4% to Rs 133.46 crore compared to Q4FY18. Net sales was up 25% in FY19 to Rs
2791.07 crore while net profit was up 14.3% to Rs 546.39 crore
Higher revenue growth was on the back of strong volumes from CNG and PNG segment on
yearly basis and better realizations
Total volumes were up 7.4% YoY in Q4FY19 to 270.49 SCM million. CNG volumes increased
6.9% YoY to 197.57 SCM million while PNG volumes rose 9.1% YoY to 72.93 SCM million.
For FY19 Total volumes were up 9.2% YoY to 1076.71 SCM million. CNG volumes increased
9.2% YoY to 790.94 SCM million while PNG volumes rose 9.2% YoY to 285.77 SCM million.
Domestic PNG domestic grew 11% YoY to 35.21 SCM million in Q4FY19 while PNG industrial
volumes rose 7.3% YoY to 37.71 SCM million.
For FY19 Domestic PNG domestic grew 10.7% YoY to 137.55 SCM million while PNG industrial
volumes rose 7.8% YoY to 148.22 SCM million.
The company added 38,800 domestic households in Q4FY19.
Total 3 CNG stations were added in Q4FY19. Overall CNG station of the company as on date is
236 stations out of which 10 are in Raigad district
The company added total 13 CNG filing stations in FY19. It plans to add 20 CNG filling stations
in FY20. Capex for single station is around Rs 2.25 crore.
In Q4FY19, Higher quarterly operating expense is attributable to CSR spend, repairs and
certain provisioning under new accounting standards Ind AS 116.
Production sharing contract of PMT gas field will expire on December19, as the private players
are reluctant to extend the same beyond Dec'19. As MAHGL is receiving a gas from PMT field,
any production loss/fall in this field could be recovered from APM/imported LNG.
Total cash and cash equivalent stood at Rs 953 crore as of FY19-end. Rising cash even after
capex and dividend payment will be utilised for organic/inorganic opportunity even though the
company did not divulge the details thereof.
Marketing exclusivity in Mumbai and Thane region is over, which is valid up to 2020 in Raigad.
In case of Mumbai (GA1) and Thane (GA2) region, the PNGRB is yet to declare the pipeline
network as a common carrier. However, the company does not see any new entrant for
marketing CNG and PNG in the greater Mumbai region.
The company expects its total volume to grow by 6% in FY20
The company expects margins to improve in the coming quarters.
The company incurred capex of Rs 360 crore in FY19 and expects capex of Rs 450 crore for
FY20
Canara Bank : Targets RoA of 0.5%, expects to contain

slippages below Rs 7000 crore in FY2020
Canara Bank conducted an analyst meet on 13 May 2019 to discuss the financial results for the
quarter ended March 2019 and prospects of the bank. R A Sankara Narayanan, MD&CEO
of the bank addressed the call:
Highlights:
The bank is targeting business growth of 15% in FY2020. The banks expects to substantially
improve its profitability with target of net profit at Rs 3000 crore and RoA of 0.5% for FY2019.
The bank is targeting net interest margin of minimum 3% by end March 2020.
The GNPA as well as NNPA ratio is expected to improve substantially in absolute as well as
percentage terms in FY2020.
The company proposes to improve its capital adequacy ratio in FY2019, while it expects to raise
capital at appropriate time. The bank did not receive any capital infusion from government in
FY2019. The bank has enough capital for business growth in FY2020.
The bank has sharply increased its provision coverage ratio to 68% end March 2019 from 58%
end March 2018, while the bank aims to further improve provision coverage ratio to 75% by end
March 2020.
The credit cost of the bank stood at 2.9% in FY2019, while the bank expects credit cost to
decline to 2.5% in FY2020.
The priority sector lending of the bank stood at 48% end March 2019.
The bank has made additional provisions for steel accounts under NCLT in Q4FY2019, while
resolution of these accounts in current financial year is expected to positively contribute to the
profits by Rs 2500 crore.
Bank has exposure to 12 accounts under NCLT 1 with outstanding balance of Rs 8900 crore
and 16 accounts under NCLT list 2 with outstanding balance of Rs 4800 crore. The provision
coverage on overall NCLT exposure stands at 80% end March 2019.
On liabilities front, the bank is a focusing strongly on retail term deposits and CASA deposits.
On asset front, the bank is also focusing on strong retail assets growth.
The SMA 1 and 2 category loan book of the bank stands at Rs 6400 crore, which is 2.7 % of the
total advances end March 2019.
The bank has made a provision for bad debt of Rs 5121 crore, standard assets Rs 309 crore
and investment provisions were at Rs 420 crore in Q4FY2019.
The interest on income tax refund stood at Rs 375 crore in Q4FY2019.
The bank expects slippages of loans to be below Rs 7000 crore in FY2029. The bank has
recorded recoveries of Rs 9000 crore, while expects the strong recoveries performance for
FY2020. Thus, the bank expects to reduce NPAs in absolute as well as percentage terms in
FY2020.
The bank has exposure to telecom sector at 4.1 % of which 3.3 % has been already classified
as sub-standard.
On subsidiaries front, all 10 subsidiaries of the bank has reported profits for FY2019. CanFact
has reported net profit of Rs 1 crore, securities business has reported net profit of Rs 10 crore,
finserv business has reported net profit of Rs 2.15 crore etc. Insurance business has exhibited
strong growth in business, while its expected to start on a clean slate going forward.
The bank has not taken any decision on stake sale in any of its subsidiaries as of now.
Motilal Oswal Financial Services : Expects double digit

growth in housing finance business for FY2020
Motilal Oswal Financial Services conducted a conference call on 13 May 2019 to discuss its
financial results for the quarter ended March 2019. Navin Agarwal, MD of the company
addressed the call:
Highlights:
Consolidated net worth stood at Rs 3053 crore, gross borrowing was Rs 5114 crore and net
borrowing was Rs 4590 crore (including Aspire). Excluding Aspire, gross and net borrowings
were Rs 1554 crore and Rs 1113 crore respectively and this is less than the market value of
quoted investments at Rs 1440 crore.
The profit of the company for FY2019 was impacted due to higher provisioning and the write off
taken in the home finance business as well as lower mark to market gain under new India as
guidelines on fund based investment.
Overall gearing remains conservative at 1.7x; ex-Aspire it is at 0.5x and considering market
value quoted investments, we are effectively net cash balance sheet.
Capital markets
Capital markets revenues were Rs 1171 crore in FY19 and contributed 44% of consolidated
revenues. Profits were Rs 181 crore in FY19 and contributed 42% of consolidated PAT.
Broking and distribution business profit grew by 18% at Rs 173 crore in FY19 led by strong
operating margin expansion by 200 bps to 34% on account of better operating leverage on the
higher and linear revenues.
In Retail Broking & Distribution, Market share in high-yield cash segment has been
maintained on sequential basis at 2.6% (ex-prop) in Q4FY19 despite higher F&O volumes.
Distribution AUM increased 27% to Rs 9572 crore in FY19. With only 16% of the near million
client base tapped, Distribution income is already at 14.4% of retail broking gross
revenues.
In Institutional Broking, rankings with existing clients improved, domestic institutions contribution
improved and new client additions were encouraging.
Investment banking business has continued to engage and conclude some significant
transactions in this period. The company has completed 6 ECM transactions in FY19. Overall
transaction pipeline remains encouraging.
Asset Management
Asset Management business across MF, PMS & AIF reached the mark of Rs 38893 crore
AUM, +9% YoY this year. AMC now ranks 11 by total equity assets, PMS ranks#1 while AIF
assets are growing rapidly.
Net Sales is Rs 401 crore in FY19. Revenues are Rs 139.6 crore and Rs 578.6 crore (+11%
YoY) in Q4FY19 and FY19 respectively. PAT is Rs 35.5 crore (+12% YoY) and Rs 149.9 crore
(+36% YoY) in Q4FY19 and FY19 respectively.
Equity MF AUM of Rs 19979 crore is just 2% of the Industry Equity AUM of Rs 10.2 lakh crore.
Market share in Equity MF Net Sales (including balance) stood at 2.2% in FY19. The direct AUM
is now 35% of total MF AUM. Share of Alternate assets, comprising of PMS & AIF, is the
highest among AMC's at 49% and continues to grow very strongly.
Yields and profitability of Alternates is higher. As of March 2019, 20% of Alternates AUM
is performance-fee linked, and target is to increase this further.
Private Equity manages an AUM of Rs 6370 crore (+36% YoY) across 3 growth capital
PE funds and 4 real estate funds. This business has delivered on profitability and scalability
fronts. In FY19, PAT excluding lumpy share of profit on exits was Rs 22.4 crore, +133% YoY.
Wealth Management
Wealth Management business AUM grew by 19% YoY at Rs 17464 crore in FY19 with
net sales of Rs 2,395 crore. In FY19, revenues grew 11% YoY at Rs 109 crore and PAT
excluding impact of intergroup transfer pricing was Rs 18.9 crore. RM count of this business has
reached 126 with average RM addition was up +30% YoY in FY19.As ratio of new adds to
opening RM falls and the vintage of RM improve, both productivity and profitability of the
business will scale up.
Overall Asset and Wealth Management revenues were Rs 800 crore in FY19, +2%
YoY and contributed 29% of consolidated revenues. Profits were Rs 191 crore and
contribute44% of consolidated profits, with highest scalability and with least capital employed
among portfolio of businesses.
Housing finance business
Loan book stood at Rs 4,357 crore as of FY19. NII remained stable at Rs 231 crore in FY19.
Disbursements in Q4FY19 were Rs 80 crore and in FY19 was Rs 290 crore.
Zero delinquencies in new book generated inFY19.
Name change to "Motilal Oswal Home Finance" to yield multiple benefits.
Asset quality deterioration in FY19 was on account of seasoning of legacy portfolio.
The proactive clean-up of the legacy book, expected positive trends in disbursements in coming
quarters along with improvement in collection efficiency in FY19, augur well for future asset
quality and profitability outlook.
Provisions stood at Rs 352 crore in FY19, on account of higher write offs in Q2 and Q3 ofFY19
to clean up the legacy book.
There were no write-offs in Q4FY19. Further provision coverage has been stepped up to 70%
including write-offs in FY19.
Strong support from parent continues with capital infusion of Rs 200 crore in FY19 taking total
capital infusion to Rs 850 crore. Gearing remains conservative at 4.3x.
The company expects double digit growth in home finance business in FY2020.
Limited borrowing repayments till March 2020, equity infusion, strong undrawn borrowing lines
and ALM place the company in comfortable liquidity situation.
Fund based business
Total quoted equity investment including unrealised gains was Rs 1,440 crore as of Q4FY19.
MTM on these gains are now part of reported earnings under Ind-AS reporting. Cumulative
XIRR of these investments is 19%, which is the see-through RoE.
Oriental Bank of Commerce : Targets ROA of 0.5% for

FY2020 and 1% in next three years
Oriental Bank of Commerce conducted a conference call on 13 May 2019 to discuss the
financial results for the quarter ended March 2019. Mukesh Kumar Jain, Managing Director and
CEO of the bank addressed the call:
Highlights:
. The bank has posted strong growth in profit to Rs 201.5 crore in Q4FY2019 from Rs 1985
crore in Q4FY2018, driven by improved margins and decline in credit cost. The bank posted
sharp 58 bps yoy jump in net interest margin to 2.75% in Q4FY2019.
. The bank has consistently improved share of retail, agriculture and MSME (RAM) loans to
54.9% end March 2019 from 53.1% a quarter ago and 50.6% a year ago.
. The bank has substantially reduced Net NPA ratio to 5.93% end March 2019 from 7.15% end
December 2018, while also improved provision coverage ratio sharply higher to 75.8% end
March 2019.
. The fresh slippages of loans stood at Rs 7066 crore in FY2019 and Rs 1491 crore in
Q4FY2019. The bank has recorded strong recoveries and upgrades of Rs 2262 crore and
write-off of Rs 2864 crore.
. The bank exposure to ADAG stands at Rs 1325 crore, of which Rs 910 crore is fund based
and Rs 415 crore is non-fund based. Further, the bank has classified Rs 900 crore of exposure
to ADAG group as NPA.
. The exposure to DHFL stands at Rs 1177 crore and Indiabulls Housing Finance at Rs 994
crore.
. The exposure of the bank to state electricity boards stands at Rs 2637 crore end March 2019.
. The SMA 2 category loans of the bank stood at Rs 3000 crore, of which large industry stands
at Rs 468 crore, MSME Rs 855 crore, agriculture Rs 1152 crore, retail Rs 348 crore and other at
Rs 116 crore.
. The bank's exposure to BB and below rated corporate book stands at 30% of the overall loan
book.
. The operating profit is expected to be Rs 5000 crore in FY2020.
. ROA is expected to be at 0.5% in FY2020 and expected to improve to 1% in next three years.
. The bank is targeting loan growth of 10-12% for FY2020 with the major focus on retail
segment.
. The bank expects recoveries and upgrades of Rs 8000 crore, while slippages of Rs 4000 crore
are expected for FY2020.
. The bank expects its credit cost to be in the range of 1.5-2.0% in FY2019.
. The bank aims to improve CASA ratio to 32-33% by end March 2020.
. Among the NBFCs, the bank has exposure of Rs 750 crore REC, Rs 1511 crore to PFC, Rs
1438 crore to PNB Housing Finance, Rs 1286 crore to Bajaj Finance, Rs 1190 crore to L&T
Finance and Rs 1140 crore to HDB Finance.
. The restructure advance book of the bank stands at Rs 415 crore end March 2019.
. The bank has exposure of Rs 3360 crore under NCLT list 1 with the provisions of 81% and Rs
2358 crore under NCLT list 2 with the provisions of more than 91%. The bank expects the
recoveries of Rs 1500 crore from NCLT exposure in FY2020.
Polycab India : Expects annual Ebidta margin range of

11.5-13%
The company held its conference call on 14 May 19 and was addressed by Mr. Ramakrishna
CEO
Key Highlights
Management highlighted that Ebidta margin should be seen more from an annual prospective.
So in FY 19, Dec 18 quarter had seen abnormal margins and in FY 18, Mar 18 quarter had seen
abnormal margins. On an annualized basis, the Ebidta margin improvement is in line with
management's expectations.
For FY 19 Ebidta margin stood at 12.8% and for FY 18 it stood at 11.7%. Margins improved due
to better product mix, leverage of sales on existing network and forex benefits. Broad range of
Ebidta margin is around 11.5-13% to remain going forward.
Net sales growth of 18% for FY 19, was led by a 11% growth in wires and cables business
which accounted for 86% of total revenues, Fast moving electrical goods (FMEG) grew by 33%
and now accounted for 8% of total sales while the other segment mainly consisting of EPC
business grew by 86% and accounted for 6% of total revenues.
In Mar 18 quarter, in FMEG business there was a Rs 35 crore of supply for street lighting which
stood at around Rs 5 crore in Mar 19. So excluding this, the overall growth in FMEG segment
which looks flat otherwise, has grown by more than 20% YoY.
Certain closure of orders in EPC business led to jump in EPC revenues in FY 19 which
increased by 86% to Rs 463 crore.
Order book in EPC stands at around Rs 200 crore. It's a tactical business for the company.
Expects business to remain at around Rs 200-400 crore only.
The company has a 18% market share in wires and cables business. Demand condition in wires
saw some slowdown in April and May 19, may be largely due to elections. Also working capital
got stretched during this period. Expects post election market should come back and do well.
Rs 275 crore of capex in FY 19. Rs 200 crore of capex for FY 20. 67% of capex will be towards
wires and cables and rest towards FMEG segment.
D.B. Corp : Government advertising revenues grew over

26% in Q4 due to rise in DAVP rate
D B Corp held its conference call on 16 May 2019 to discuss results and future.
Pawan Agarwal – Deputy Managing Director, Girish Agarwaal – Non Executive Director
addressed the call
D.B. Corp registered a 5% rise in consolidated sales to Rs 588.52 crore for the quarter ended
March 2019.
Advertising Revenues reported growth of 7% YOY to Rs 413.0 crore. Circulation Revenue
increased 2% YoY to Rs 127.30 crore.
OPM rose 20 bps to 17.7% which saw OP rise 6% to Rs 104.16 crore. PBT grew 2% to Rs
80.54 crore. PAT fell 5% to Rs 54.46 crore.
In FY 2019, it registered a 7% rise in consolidated sales to Rs 2462.70 crore.
Advertising Revenues grew 7.4% to Rs 1762.5 crore. Circulation Revenue increased 5.1% to
Rs 523.70 crore primarily volume driven.
OPM fell 390 bps to 20.5% which saw OP fall 11% to Rs 504.23 crore. PBT fell 15% to Rs
413.74 crore. PAT fell 15% to Rs 273.84 crore.
Its sustained focus over the past 5-6 quarters on circulation expansion in legacy markets as well
as in the newer markets is paying off as reflected in the latest published readership and
circulation number, by MRUC and ABC respectively.
Dainik Bhaskar's well-implemented Circulation expansion strategy has delivered strong results
on account of increased market share.
Without this strategy the management doubts that the overall sales would have grown 7% in FY
2019.
A focused and well-executed Circulation expansion strategy has delivered excellent readership
results.
Dainik Bhaskar Group stands as Torch bearer of Readership growth. As per recent IRS Survey,
all Hindi Newspapers added 93.27 lakh new readers.
Dainik Bhaskar adds 63.55 lakh new readers; a growth of 13.71% majorly in legacy markets of
Madhya Pradesh-Chhattisgarh, Rajasthan, Haryana, Punjab, Gujarat and in newer market of
Bihar.
Semi urban and rural market is expected to stabilize along with the stabilization on political
scenario.
Q4 did not have any political advertising although government advertising grew over 26%. The
quarter had full benefit of DAVP rate as there was not much of volume increase.
Q1 2020 will see growth in political advertising. But it will be nullified due to no advertising from
government advertising.
Debtors increased by Rs 71 crore in print advertising. In that Rs 28 crore grew due to billing.
Also the government outstanding grew due to model code of conduct.
Month of April 2019 was a normal month and nothing great. In May 2019 most of the companies
are waiting for the election. However due to normal monsoon forecast and political stability after
May 2019 the growth should continue.
As of March end circulation is at 56.20 lakh copies. Landed cover price was Rs 4.16 per copy.
The realized price is Rs 2.69 per copy.
The benefit of softening newsprint prices along with the cost cutting initiatives, already
implemented is expected to improve bottom line going forward.
Newsprint price in Q4 of 2019 was Rs 44.50 per kg on blended basis of imported and Indian
newsprint. In Q3 it was 45.40/KG. In Q1 it is expected to be Rs 40/KG. In Q2, Q3 and Q4 it will
soften further.
Circulation strategy was complimented by strong editorial and product enrichment efforts along
with unique and impactful reader engagement initiatives.
Dainik Bhaskar Group has maintained its leadership as the Largest Newspaper Group of Urban
India, as per latest Indian Readership Survey 2019 Q1 that were announced on 26thApril 2019.
In print business the company does not want to increase price in hurry as the newspapers are
already prices at Rs 4 in most of the market and newsprint prices are coming down.
FY 2020 will see normal circulation growth as nothing new strategy has been planned.
The implementation of second phase of economic reform is expected to accelerate the
consumption and industry growth going ahead.
Auto industry advertising fell in Q4 and other segments were in low single digits.
China which used to import newsprint is now NIL on net-net basis.
In USA, couple of newsprint manufacturers which were not producing newsprint have started
producing newsprint.
There is low demand of newsprint in US and China.
The positive outlook on India reflected by global institutions is providing a strong impetus to the
positive sentiment that signals a new fiscal ahead.
All fundamental business growth drivers are in the place which positions the company well to
capitalize on emerging industries opportunities.
Going forward circulation growth should be 2-3% mainly due to volume.
Radio business
Phase 3 stations bottom line is now positive, on the back of strong inventory management,
programme profile, strong cost efficiencies and growing popularity
Q4 FY 2019 Radio business EBIDTA grew 8% to Rs 39.0 crore.
Q4 FY 2019 Radio Business PAT grew 13% YOY to Rs 13.2 crore.
FY 2019 Radio business EBIDTA grew 45% to Rs 52.5 crore (margin of 34%) against Rs 36.2
crore (27%margin).
FY 2019 Radio Business PAT grew 70% YOY to Rs 26 crore (margin 17%) against Rs 15.3
crore (11%margin).
Radio business growth was largely volume led than yield improvement in Q4. Blended
realization for 10 second advertisement is Rs 3500-4000.
Government share of advt in Radio business is around 25%.
Future strategy is to maintain leadership position in Chandigarh / Haryana / Punjab / Rajasthan /
Madhya Pradesh & Chhattisgarh and continues to be the largest player in Rest of Maharashtra
Digital business
Q4 digital business revenue fell 24% to Rs 9.9 crore.
FY 2019 Digital business revenue stood at Rs 48.7 crore against Rs 52.9 crore, down 8%.
Digital business intensified its focus to further strengthen loyal user base and potential
monetisation of the platform.
Dainik Bhaskar group leveraging its premium brand equity and loyal user base through
introduction of subscription based model on its digital platforms.
Digital business is embarking on multiple noteworthy initiatives aimed at further strengthening
loyal user base through organic ie. brand and search traffic and efficient monetisation.
Very stringent cost optimisation and change in content approach continue to add value to
business.
www.Dainikbhaskar.com the largest Hindi News Website continues to secure the No. 1 spot in
Hindi News
www.Divyabhaskar.com continues to remain #1 Gujarati website
Launch of new version of "Divya Bhaskar" App will strengthen the leadership position in Gujarat
Market.
JSW Energy : About 90% of generation capacity is tied up
with either LT/ST PPA for FY20
Prashant Jain, Joint Managing Director; Sharath Majumdar, CEO; Joythi Kumar Agarawal,
Director Finance and Pritesh Vinay, Vice President Corporate Finance & Group Investor
Relations.
Power demand in FY19 grew by 5.1% but the demand in Q4FY19 was muted at 1.6% (down
from 7.5% in Q4FY18) due to prolonged winter, load shedding by discoms and tepid industrial
activity.
About 2.4 GW of old thermal power plant capacity was retired in FY19.
Short term power supply in Q4FY19 stood at 567 MUs down from 848 MUs in Q4FY18.
Similarly the short term power sales were down at 3141 MUs in FY19 from 5019 MUs in FY18.
Lower short term power sales were largely due to Vijaynagar and poor demand in Q4FY19.
Lower short term sales in case of Vijaynagar plant was partly offset by higher LT sales thus
facilitating its PLF to 50% in FY19 compared to 53% in FY18. PLF of Vijaynagar stood lower at
37% in Q4FY19 compared to 50% in Q4FY18.
The company expects the PLF for FY20 to be on higher side. The hydro plant generation that
was lower by about 600 MUs in FY19 to 5204 MUs with its PLF decline to 46% in FY19 from
about 52% in FY18 is expected to bounce back with expected higher snow meltdown in FY20.
With EV diversification abandoned the company is to maintain capital cushion for growth
opportunities in power and other related business.
Commissioning of 36 MW (2x18MW) Thermal Capacity at Salboni and Nandyal expected in
Q1FY20 with long term PPA tied up under Group Captive scheme.
Continued de-risking of the Business; Significant portion of open capacity tied up under
short-term (ST) power supply contracts in FY20. Of the consolidated power capacity of about
4486 MW about 90% capacity is tied up with either LT/ST PPA in FY20. Of the consolidated
capacity about 82% is under LT PPA and about 8% under ST PPA.
Vijayanagar plant secured PPA for 300 MW from Telangana State for a period of 9 months
beginning July 1, 2019. In L1 basket for 290 MW under Pilot Scheme–II of PFC/NHPC for 3
year PPA at Vijayanagar plant. The Vijaynagar plant is already supply about 280 MW to JSW
Group under long term supply agreement. And with these supply agreement with Telengana
and PFC/NHPC the entire capacity of Vijaynagar (about 860 MW) will be tied up under PPA.
Ratnagiri Plant: of the total capacity of 1200 MW about 75% capacity is fully tied up under LT
PPA and 13% under ST. Open capacity nearly fully tied-up in H1FY20 via short-term power
supply contracts. Open Capacity to be fully tied under LT PPA from April-2020 within JSW
Group, after completion of JSW Steel's Dolvi Plant expansion.
PFC tender - Of the quoted tariff about Rs 41 paisa is fixed part and balance is variable.
Focus on Balance Sheet strength continues. During the quarter ended March 31, 2019, the
company reduced its Net Debt by Rs 636 crore through prepayment/scheduled repayments.
Tender are coming from 9 month to 2 years unlike earlier demand for few days or week. About
3000 MW Gujarat, West Bengal for 5 year power supply, southern states are also lining up PPA
tenders.
Amount outstanding from JPVL is about Rs 1162 crore and the company has provided largely
and amount still unprovided for is Rs 178 crore. The company has some contingencies against
the unprovided outstanding in case of JPVL. Outstanding in JSPL is about Rs 331 crore
currently and the visibility of the transaction is low.
Indian Bank : Targets loan growth of 13-15%, slippages to dip

to Rs 800-900 crore per quarter in FY2020
Indian Bank conducted a conference call on 14 May 2019 to discuss the financial results for the
quarter ended March 2019. Padmaja Chundru, MD & CEO of the bank addressed the call:
Highlights:
The bank has continued to report health performance with strong business growth of 16% end
March 2019. The loan book of the bank increased 16%, while deposits also moved up 16%. The
share of retail, agriculture and MSME loans has increased to 58.1% of overall loans.
The bank has exhibited sharp decline in fresh slippages of loans to Rs 962 crore in Q4FY2019,
of which one major account contributed to slippages of Rs 300 crore.
Most of the exposure to IL&FS has been classified as sub-standard. Of the total exposure
of Rs 1600 crore to IL&FS standard exposure stands at Rs 254 crore. The provision
coverage for IL&FS account stands at 23%.
The SMA 2 category loans of the bank stands at Rs 2360 crore end March 2019. As per the
bank, about 50% of the SMA 1 exposure is corporate.
The bank has exposure of Rs 1300 crore to DHFL, which is standard getting serviced on time.
The exposure to Indiabulls Housing Finance stands at Rs 1624 crore.
The exposure to ADAG stands at Rs 700 crore, of which Rs 500 crore is NPA relating to two
accounts. The bank has made provision in line with the regulatory requirement.
The exposure to Essel group stands at Rs 100 crore, while the bank does not have exposure to
telecom, airways and media group.
The bank has restructured Rs 926 crore of loans in the MSME segment since January 2019, on
which a provision of 5% has been made.
The standard restructured assets of the bank stood at Rs 2000 crore end March 2019.
The provision divergence of the bank for FY2018 was Rs 220 crore, which has been fully
provided in Q4FY2019.
The bank is planning to sale stake in two subsidiaries of which Ind Bank Housing is deposit
taking NBFC where the bank is planning to bring in a strategic partner. The bank is also
planning stake sale in Ind Bank Merchant Banking services.
Guidance for FY2020
The bank is targeting loan growth of 13%-15% in advances as well as deposits.
The bank aims to reduce NNPA ratio to 3%-3.1% by March 2020.
The slippages are expected to decline to Rs 800-900 crore per quarter.
The bank expects normal recoveries of Rs 1300 crore and upgrades of Rs 600 crore in FY2020.
The recoveries of Rs 800 crore are expected from NCLT exposure.
The bank expects to maintain stable NIM of 3% in FY2020.
The cost-to-income is expected at 42-43%.
The bank is planning to raise capital in Q2 or Q3FY2020.
Union Bank of India : Aims for RoA of 0.3% in FY2020 and

1.0% in FY2021
Union Bank of India conducted a conference call on 14 May 2019 to discuss the financial results
of the company for quarter ended March 2019. Rajkiran Rai MD&CEO of the bank
addressed the call:
Highlights:
The bank has maintained strong focus on strengthening balance sheet with accelerated stress
recognition, provision and recoveries. The bank has exhibited sharp decline in stressed pool in
absolute as well as percentage terms.
Global advances rose 4% to Rs 325392 crore, while global deposits moved up 2% to Rs
415915 crore at end March 2019. The domestic advances increased 8% to Rs 310932 crore at
end March 2019. The share of retail, agriculture and MSME loans has further increased to
55.7% end March 2019 from 55% end March 2019.
The bank has achieved 75% centralization in underwriting of credit, which is helping in reducing
the turnaround time.
CASA ratio jumped to 36.1% at end March 2019 compared with 35.5% a quarter ago and 34.1%
a year ago. Average CASA deposits ratio improved to 34.7% at end March 2019 compared with
34.5% a quarter ago and 33.2% a year ago.
Fresh slippages of advances were Rs 3275 crore in Q4FY2019, of which corporate slippages
were Rs 1761 crore with Rs 931 crore came from power includes Rs 885 crore from IL&FS
thermal power project, Rs 185 crore from roads and Rs 212 crore from iron & steel. The
slippages from MSME were Rs 695 crore.
The SMA 2 category loan book of the bank stood at Rs 8971 crore, of Rs 2575 crore is towards
corporate and Rs 3700 crore is towards retail.
Bank has total exposure of Rs 3991 crore to State Electricity Boards (SEB), which do not show
any sign of stress.
The bank has no exposure to Jet Airways. Also, major portion of IL&FS exposure has
slipped into NPA
The bank has exposure to DHFL which is getting serviced on time. The bank has also bought
portfolios from DHFL to provide them liquidity. Fresh disbursement to DHFL during Q4 apart
from portfolio buyouts was nil in Q4FY2019.
The bank has sizeable exposure to Reliance Defence and Reliance Communication has been
classified as NPA. The exposure Reliance Capital and Reliance Infra is limited and remains
standard.
The bank does not see any stress in commercial real estate segment as of now, while its
exposure stands at 2% of total loan book which is primarily LRD. The exposure to residential
real estate is small and it could be 0.2% of the total book.
The bank exposure under NCLT List 1 is Rs 6023 crore with the provision coverage ratio of
68%, while exposure under NCLT List 2 is Rs 3687 crore and provision coverage ratio is 80%.
The provision coverage on NCLT exposure is 72%.
The outstanding securities receipts book of the bank stands at Rs 920 crore end March 2019.
The bank has conducted substantial write-off of bad debt amounting to Rs 7771 crore in
FY2019, while the recoveries in written off accounts were Rs 700 crore for FY2019.
The slippages would be mainly driven by MSME portfolio, while corporate slippages seems to
be normalizing
The bank had provisioning divergence of Rs 2281 crore, which is higher GNPA divergence of
Rs 867 crore for FY2018, mainly on account of RBI assessment and lesser provisioning. The
bank has made provisions for entire provision divergence of Rs 2281 crore in Q4FY2019.
The bank would focus on various options for capital raising and the board meet for the same is
scheduled on 16 May 2019.
There are no talks of merger for Union Bank.
About 70% of employees of the bank are under defined contribution plan with respect to
pension liabilities.
Guidance for FY2020
The credit growth is expected to be 9-11% and deposits growth at 7-9%.
The bank expects NIM at above 2.4%.
The fresh slippages ratio is expected decline to 3%, while expects credit cost to dip to 2.15%.
The bank expects to reduce GNPA ratio below 12% and NNPA below 6% by end March 2020.
The provision coverage ratio is expected to be raised to 70% by end March 2020.
The cost-to-income would be 45-46% in FY2020.
The bank aims for RoA of 0.3% in FY2020 and 1.0% in FY2021.
The bank expects recoveries and upgrades of Rs 9000 crore in FY2020 including NCLT
recoveries, while provision write-back is expected to be Rs 1000 crore.
The recoveries of Rs 3500 crore are expected from three accounts in NCLT in Q1 of
Q2FY2020.
SKF India : While auto is more or less flattish to slight
positive, industrials are doing reasonably well for the
company
The company held its conference call on 16 May 2019 and was addressed by Mr. Manish
Bhatnagar MD
Key Highlights
Diversified business within auto and industrials helped FY 19 growth numbers, which otherwise
was a year of slowing economy and growth.
Of the total sales for Mar 19, automotive accounts for around 43% and grew by 5.6% due to
aftermarkets while OEM was flat on YoY basis , industrials sales was around 54%, grew by
around 13.5% YoY and exports which are largely towards auto account for the rest 5%.
For Mar 19 quarter, 44% of total sales were traded and 58% was manufactured overall. Slight
increase in traded products sales in Mar 19 quarter on YoY basis.
Within Automotive, aftermarket would be 30% and balance 70% would be OE. Within
industrials, the aftermarket and OE are divided equally.
Industrial segment showed decent growth. Every industry uses SKF bearings. Railways grew by
around 25% YoY for Mar 19 quarter and Energy, which is largely wind, did well and grew by
45% YoY and heavy industrial segment that is equipment linked to construction also did well.
Since construction segment is booming, the heavy industrial segment has grown significantly.
Wind Energy looks good now, but it's on a low base. Tariff on auctions which have gone up also
helped. Exports also aided in this segment.
The company is looking at localisation plan for industrial segment. The plan will be finalized in
FY 20. Within industrials, overall around 70% is currently traded and only 30% gets
manufactured.
Company is doing better than industry in passenger car segment. Otherwise auto OE is flat for
the company and also for the industry. The company is trying to gain more market share.
Expects post elections things will pick up.
So while auto is more or less flattish to slight positive outlook, industrials are doing reasonably
well for the company.
The Hub 3 bearing line has started production from April 19 onwards but not on full capacity.
Volumes are currently small. Capacity of Hub 3 bearing will be around 3.5 lakh bearing p.a and
with some debottlenecking the capacity can be increased to 5 lakh bearings. At full capacity the
segment can generate around Rs 500 crore of revenue.
Railways would be around 7% of total sales for FY 19. Railways continue to be a bright sector
for the company. Lot of growth coming from freight side of bearings. Entering new freight
markets in other segments and new services include technology driven solutions.
The company will incur a sizeable capex of around Rs 150 crore in the coming 2 years as
compared to past years but timing will be a bit here and there depending upon on how the auto
market is progressing. Objective is to be nimble on capex.
Healthy pipeline of products is seen going forward.
No impact on BS 6 norms for the company's products, as most of the bearing towards auto side
for the company comes on transmission line of auto segment.
Karnataka Bank : Expects slippage ratio to decline to

2.0-2.25% and credit cost to 0.7-0.8% in FY2020
Karnataka Bank conducted an analyst meet on 15 May 2019 to discuss the financial results for
the quarter March 2019 and prospects of the Bank. Mahabaleshwara MS, MD & CEO of
the bank addressed the call:
Highlights:
The bank has recorded record high net profit for the year ended March 2019, while exhibited
improvement in the asset quality with the decline in GNPA and NNPA ratio.
The bank has improved CASA ratio, while there is no dependence on bulk deposits. The bank
aims to improve CASA ratio to 30% in next 2 years from existing level of 28% end March 2019.
The bank has setup dedicated team to boost CASA deposit. The bank proposes to introduce tab
banking for account opening in FY2020.
The share of retail loans stood at 42.8% end March 2019, while bank aims to gradually increase
the share of retail loans.
The bank is targeting RoA of 0.8% for FY2020 and 1% for FY2021. The bank expects to record
double-digit return on equity for FY2020
The share of alternate delivery channels in overall transactions of the bank has as increased to
78% end March 2019.
The bank is targeting the business turnover of Rs 1.44 lakh crore by end March 2020 of which
advances will be Rs 64500 crore. The bank expects to sustain 16% growth in its advances for
FY2020. The bank has set up dedicated self teams would support loan growth.
The bank has a sufficient capital to grow loan book, while it would take steps to augment capital
base.
Currently, the bank has 12 regional offices and bank proposes to add 2 more regional offices,
while the bank also proposes to open regional collection centres for all regional offices in
FY2020.
The bank has witnessed 11% decline in the net interest income in quarter ended March 2019,
while the net interest income rose mere 2% in FY2020. The accelerated transition of loan book
to MCLR based lending rate system has primarily impacted the yield on advances and margins
of the bank.
As per the bank about 67% of the total loans have shifted to MCLR based lending rate system
of which 77% loans are at one year MCLR. Overall 52% of the loans of the bank are at 1 year
MCLR.
Going forward, the bank expects to arrest moderation in yield on advances and improve net
interest margin to above 3% by end March 2020. The bank has increased its MCLR by 65 bps
from 8.75% to 9.4%. The bank is also taking new exposure at above 10% interest rate except
housing loans. The bank is targeting double digit growth in its net interest income for FY2020.
The bank expected to record double digit growth in its fee income for FY2020.
The bank exposure to NBFC sector stands at 15% of the overall loans. With regard to
IL&FS, the bank has exposure of Rs 150 crore which is already classified as NPA. The
bank had made provision of 15% in Q3FY2019, which is accelerated to 54% in Q4FY2019.
Within the NBFC sector exposure, about 98.2% exposure is rated A and above, while the
exposure rated below BB stands at 1.79% end March 2019.
About 24% of the NBFC exposure is towards public sector NBFCs, while the balance 76%
exposure relates to private sector MBFCs. Further breakup of NBFCs exposure shows housing
finance companies account for 34.66%, commercial finance companies at 49.47%,
infrastructure finance 10.62%, asset finance companies 4.13%, core investment companies
0.94% and small finance bank 0.23%. The bank would not take any further exposure to NBFCs
and would be taking only selective exposure to the NBFCs.
The bank exposure to agriculture sectors stands at 15.91% end March 2019, while the bank
would take additional agriculture sector exposure only after election.
Housing finance loans of the banks are processed and assessed through a team of 120
employees, while the bank expect cut this number to 20-25 employees with the adoption of new
technologies and digitalization.
On asset quality front, the bank has maintained provision coverage ratio of 50 to 60% given 87
to 90% of the loans of the bank is secured loans. The bank aims to improve its provision
coverage ratio to 60% by end March 2020.
New branding exercise is also underway, while bank aims to emerge as number one among first
generation private sector banks by its centenary year of 2024.
The risk weighted Assets of the bank stood at Rs 47945 crore of which credit related risk
weighted assets stood at Rs 41923 crore end March 2010, which shows moderate growth from
Rs 44981 crore and Rs 39000 crore a year ago.
The fresh slippages of loans have declined to Rs 1448 crore in FY2019 from Rs 2120 crore in
FY2018. The fresh slippage ratio of the bank has declined from 5.89% in FY2018 to 3.16% in
FY2019, while the bank expects to further reduce fresh slippage ratio to 2-2.25% in FY2020.
The quarterly slippages are expected to be contained at 0.5% -0.6%.
The bank does not have any exposure to Jet Airways, Zee and Essel group. However, the
exposure to ADAG group stands at 0.31%, DHFL at 0.41%, Indiabulls at 0.91%, Religare at
0.1% and IL&FS at 0.31%.
The bank has exhibited decline in credit cost to 1.39% from 2.29% last year, while the bank
expects to reduce credit cost below 1% in the range of 0.7% to 0.8% in FY2020.
The bank expects two accounts with exposure of Rs 150 crore under NCLT to get resolved in
Q1FY2020.
The bank has a moderated its branch opening for FY2020, while expects its staff level to remain
steady. The bank is also shifting, resizing and relocating its branches to maximum utilization. It
has closed down non-profit making branches.
The bank is taking various steps to control cost-to-Income ratio, while it expects its cost income
ratio to remain above 50% in the range of 50 to 54% in FY2020.
The bank proposes to add 24 branches in FY2020 raising the overall branch count to 860
branches by March 2020. The bank would focus on adding smaller size branches.
The bank aims to introduce digital products in the personal, housing and auto loan segments
during FY2020. The bank would launch online mutual fund platform. The bank would also set up
contact centre in FY2020
The bank has made provision for employee wage revision at the rate 10%, while the final rate of
wage revision is yet to be finalized.
The bank expect tax rate at 22% in FY2020
Equitas Holdings : Targets loan growth of 35-40% for FY2020

Equitas Holdings conducted concall on 13 May 2019 to discuss financial performance for the
quarter ended March 2019. S Bhaskar, ED&CEO of Equitas Holdings and PN Vasudevan,
MD of Equitas Small Finance Bank addressed the call:
Highlights:
The company has maintained strong loan growth at 44% to Rs 11835 crore end March 2019
with robust growth in all lending segments.
The micro finance advances increased 34% yoy to Rs 3070 crore, while the non-micro finance
advances surged 47% to Rs 8765 crore end March 2019. The non-micro finance portfolio now
forms about 74.1% of the total portfolio.
Within the non-microfinance book, small business loan surged 60% to Rs 4703 crore, vehicle
finance 30% to Rs 2935 crore, MSE finance 28% to Rs 525 crore and corporate loans 151% to
Rs 487 crore end March 2019.
The loan disbursement has jumped 32% to Rs 2214 crore in Q4FY2019, driven by 19% growth
in microfinance loan disbursement to Rs 654 crore. Within the non-microfinance book, small
business loan disbursements surged 60% to Rs 501 crore, vehicle finance 58% to Rs 651 crore,
MSE finance 19% to Rs 132 crore and corporate loans 15% to Rs 105 crore in Q4FY2019.
The disbursements of the company were impacted to election code of conduct and higher
number of holidays in 4QFY2019.
The company is targeting loan growth of 35-40% for FY20. The company expects the MFI book
to grow at 20-25%, while expects the Used CV book to pick-up and it plans to expands its sales
team to grow the used CV book.
The product diversification is almost completed, while the company is not looking to add new
products.
In MSE segment, the company is reducing the share of unsecured book and raising the secured
and working capital share as a conscious strategic decision.
The company proposes to raise the share of MSE loans to 15-16% from the existing level of
4%. This will also see a shift in the product mix, with other products contributing 3-4% lower
than current levels.
Corporate loan book with the share of 4% in loan book will grow as the company will continue to
lend to NBFCs having minimum or no exposure to CPs. The company is currently not looking to
finance HFCs.
GNPA declined to 2.52% end March 2019 from 3.13% end December 2018, while NNPA ratio
also declined to 1.59% from 1.75%. The fresh slippages declined to Rs 64.39 crore in
Q4FY2019, while recoveries were healthy at Rs 31.86 crore and upgrades at Rs 30.69 crore.
The write-off stood at Rs 41.42 crore in Q4FY2019.
The NPA of small business loans up to Rs 25 lakh is below 1.5% end March 2019.
The customer deposits increased 70% to Rs 8016 crore end March 2019, with CASA at 28%.
The share of customer deposits as percentage of borrowings increased to 62.6% end March
2019 from 55.6% end December 2018.
As per the company, the CASA ratio will remain muted as it would focus on term deposits, going
forward. The company has increased deposit rates in the month of November 2018.
The cost of funds of the company has remained stable at 8.09% in Q4FY2019, while the
company expects pressure on net interest margin as portfolio mix changes in favour of new
products with lower yields.
The company had to provide for higher staff expenses due to the Supreme Court order leading
to the additional provision of Rs 5.5 crore towards special allowance for employees.
The company expects 15% growth in operating expenses for FY20 to be mainly driven by
expansion of collection teams.
The company plans to open 20 asset branches and 20 liability branches in FY2020.
The existing capital position of the company is expected to support its growth for next 3 to 4
years.
Muthoot Finance : Targets gold loan growth of 15% and

spreads of 11-12% for FY2020
Muthoot Finance conducted a conference call on 13 May 2019 to discuss the financial results
for the quarter ended March 2019. George Alexander Muthoot, MD of the company addressed
the call:
Highlights:
The consolidated loan book of the company has increased 20% to Rs 38304 crore. The gold
loan book of the company has increased 18% yoy to Rs 34246 crore end March 2019. The
share of non-gold loan book stood at 11% end March 2019 compared with 9% end March 2018.
The number of gold loan account has increased to 81 lakh end March 2019 from 76 lakh end
March 2019.
The company targets gold loan growth of minimum 15% in FY2020, while expects the growth be
better if economic condition turns out better than expected. The growth has been better in the
north region, while the company expects both – south and north regions to contribute equally to
loan growth.
The current spreads of the company stands at 11-12% and the company expects to maintain
current level of spreads in FY2020.
The company is targeting to Muthoot Money (vehicle finance) loan book to Rs 850 crore by end
March 2020. The loan book of Belstar is targeted to increase by Rs 600 crore in FY2020. The
company is also targeting disbursements of Rs 1600 crore and grow loan book of housing
finance company by Rs 1300 crore in FY2020.
Average ticket size in gold loans has increased from Rs 41000 end March 2019 from Rs 38000
end March 2018. The number of gold loan customers has increased to 81 lakh from 76 lakh a
year ago.
Within the housing loan book, the pure housing loan account for 100% of overall housing book.
As per the company headwinds in the home finance business are behind and disbursements
will be back on track in FY2020. The company aims to focus more on self-construction segment.
An incremental cost of fund in the company stood at 9.5%, while the company expects to
maintain spreads of 3.0-3.5%.
The asset quality of the company continues to fluctuate, but there are no concerns and any
credit losses on asset quality front.
The operating expenses of the company were higher in Q4FY2019 due to higher employee
incentives driven by strong AUM growth.
The cash level is expected to remain at same level of 5% of balance sheet going forward
The company has repaid its CPs of Rs 3000 crore in Q3FY2019, while outstanding CPs have
again increased to Rs 4000 crore with new CPs.
The company has raised Rs 709 crore from retail NCDs in Muthoot Finance and Rs 300 crore in
Muthoot Homefin.
An incremental cost of funds for the company stood at 9.5%. The cost of funds on CPs stands
at 8.0-8.1%, while the company expects to restrict CPs exposure at Rs 5000 crore.
On asset quality front, the company expects stage 3 assets to remain fluctuating, while there
would not be any credit loss.
Pidilite Industries : Expects tax rate to be 32-33% for FY20-21

Pidilite Industries held a conference call to discuss the results for the quarter ended March 2019
and way forward. Mr. Apurva Parekh-ED and Mr. P Ganesh- Chief Financial Officer of the
company represented the call
Q4FY19 sales growth was impacted by lower offtake during the quarter. However, the volume
growth was strong in Consumer Bazaar at 9% for H2FY19. The comany remains cautiously
optimistic over the medium term.
The company mentioned that the price increase taken in December 2018 in adhesives and
construction chemicals, impacted volume offtake in Q4FY19. It indicated that there has been no
market share loss in any of the categories.
Average cost of VAM (consumption cost) in Q3FY19 and Q4FY19 was around USD 1300 per
tonne and USD 1100 per tonne, respectively. At present, VAM spot price is about USD 950 per
tonne. Other raw material items such as acrylics and solvents are also seeing cost reductions.
The company hinted at further sequential gross margin expansion for 1-2 quarters.
The company is unlikely to take any price increase in the near term in view of the favorable raw
material environment and if VAM prices fall further, it may consider passing on part of the
benefits by stepping up discounts.
Of the total turnover, Branded Adhesives and Sealants account for 56%, whereas Industrial
Adhesives make up 4%.
Employee costs increased 25% yoy in Q4FY19 due to ESOP costs (Rs10 crore for the full year
FY2019) and higher variable pay (Rs 31 crore) and actuarial valuations.
Exceptional items represent provision for diminution/impairment in value of investments made
by subsidiaries amounting to Rs 11 crore (mainly investment in IL&FS amounting to Rs 4.4
crore provided).
Tax for the quarter includes Rs 52.8 crore (previous year Rs 46 crore) of excess provision of
earlier years now written back.
Advertising expenses for Q4FY19 was 4.1% of revenue while for FY19 it was 3.6% of revenue.
In industrial products, the company will focus on the high-margin specialized products, and has
exited some of the low-margin products.
Pidilite Industries international business sales grew 8.4% in Q4FY19 (vs. 1% in Q3FY19), led by
good growth in Bangladesh, Sri Lanka, the UAE, Thailand and Brazil. Ebitda, however, declined
30% due to losses in the US and Brazil subsidiaries.
Pidilite USA saw flattish sales vs. 19% decline in Q3FY19. Ebitda loss stood at Rs 20 lakh (vs.
Rs 1.4 crore profit last year), due to adverse change in the product and customer mix.
Brazil sales grew 10% against 5% decline in Q3FY19. However, the subsidiary saw higher
Ebitda loss of Rs 90 lakh (vs. Rs 10 lakh last year) due to competitive pressures in key
products.
Bangladesh sales grew 20% against 9% in Q2FY19. Ebitda grew 30%, led by 140bps margin
expansion to 17.4%.
Sri Lanka sales grew 15% similar to Q3FY19. However, the subsidiary continues to see Ebitda
loss due to higher input costs and forex losses.
Thailand sales grew 15% against10% in Q3FY19. Ebitda grew 186%, aided by 500 bps margin
expansion.
Egypt sales declined 8% against 7% growth in Q3FY19 due to weak market conditions. Ebitda
loss stood at Rs 50 lakh, impacted by higher input cost. Despite sustained losses, Pidilite
Industries remains committed to the Egypt market, as it serves as a platform to grow its
business in Africa
The company expects capex to be 2-3% of sales. The tax rate is expected to be 32-33% for
FY20-21.
PTC India : Expects working capital and cash flows to

improve in FY 20
The company held its analyst meet on 16 May 2019 and was addressed by Mr. Deepak
Amitabh MD
Key Highlights
The volume for Mar 19 quarter de grew by 9.7% YoY to 10.3 B Units while for 12 months ended
Mar 19, the volumes grew by 10% YoY to 62.5 B Units. The de growth in Mar 19 quarter was
largely due to lower off take in Medium trade from Bhutan and lower short term volumes due to
issues of finance. Around 2 B units of trade got affected due to both these issues.
Bangladesh saw an offtake of around 200 MW in Mar 19 quarter. The offtake will pick up further.
Short term volumes which accounted for 53% of total volumes in Mar 19 quarter, stood at 5.6
BU down by 18% YoY. Medium term volume stood at 0.4 BU and was down by 18% YoY. Long
term volumes stood at 4.6 BU up by 3% in Mar 19 quarter and account for around 44% of total
trade. Overall for FY 19, short term trades grew by 12% to 34.6 B units and accounted for 55%
of total trade, Medium term was down by 12% to 1.9 B units and accounted for 3% of total trade
and long term trades were up by 8% to 25.9 B units and accounted for 41% of total trade.
The margins in Mar 19 quarter before rebate and surcharge adjustments stood at 3.9 paisa as
compared to 4.5 paisa for Mar 18 quarter.
The other income in FY 19 was lower due to lower dividend income from subsidiaries and lower
surcharge income compared to FY 18.
Net working capital requirements of company remained high in FY 19 as recoveries from state
governments are still not cleared. The recovery will be done post the elections which will result
in significant improvement in working capital and cash flows and will lower down the interest
costs.
No further equity investments into the subsidiary companies. Confident of making returns on the
investments so far made in subsidiaries.
Consultancy income in FY 19 stood at Rs 5 crore. The segment has an order book of around Rs
117 crore.
1050 MW of wind PPA got commissioned in Mar 19 quarter. This is a long term PPA. Another
100 MW of long term PPA has already been operational with Rajasthan in Mar 19. Expects
another supply of 400 MW of long term PPA for renewable project to commercialize by end of
FY 20. Should give around 3-4 BU of trading volumes on long term basis.
Demand from Large industries is lower and this has also resulted in lower offtake both short
term and long term. Trades will improve gradually from these industries in the coming year.
No further update on license to have own exchange. Its filed and the company is waiting for
regulatory approvals.
The company is looking for a strategic investor in PTC Energy and expects to close the deal
soon.
Once the confidence improves, people will enter for long term PPAs and hence margins will
improve. Better availability of finance will result in higher short term trades as well.
Athena project which has been completely written off should see some recovery in terms of
provision write backs in FY 20.
Overall expects volume growth of around 10% in FY 20. The growth will once again not be
linear as H2 FY 20 will see higher demand compared to H1.
FY 20 will be a base year from which the momentum should pick up.
Gateway Distriparks : FY 20 should see better volumes

and throughputs from all the segments
The company held its conference call on 16 May 19 and was addressed by Prem Kishan Gupta
CMD Gateway Distriparks
Key Highlights
The company had received Rs 32 crore in June 18 quarter relating to deemed export benefit
under Export policy for FY 18. In Mar 19 quarter SIES income stood at Rs 49.9 crore pertaining
to the year FY 15 and FY 16.
1 more SIES income expected in FY 20 which will be for FY 19 year.
Ebidta per TEU in rail segment stood at around Rs 5700 per TEU and is lower on YoY basis
due to imbalance of trade and lower double stack and weak exports in Mar 19 quarter. Expects
things to improve in Ebidta level from June 19 quarter and should improve at around Rs 6000
per TEU. Average increase in speed of trains which will result in higher productivity and lower
imbalance in trade will result in higher Ebidta.
The company has currently 28 racks of trains operational of which 21 are owned and rest are on
lease basis.
No Dedicated freight corridor benefits will be available in FY 20, double stacking benefits from
dedicated freight corridors will start from April 20 onwards.
Despite the Direct Post Delivery Scheme (DPD), CFS volumes have grown for the industry and
for the company. GDL was able to improve its market share. Volumes and tariffs should remain
stable going forward.
Vizag is the only place where there is sharp drop in CFS business in FY 19. The company had
to offer free storage in that place due to lower volumes and increased competition. Expects CFS
business overall should see good volumes except Vizag in FY 20. Expects around 5-6% volume
growth for the industry and better for the company in FY 20 in CFS business.
Capex of around Rs 100 crore for FY 20 which would include new land for CFS business.
Overall nothing much changed in the outlook for the company and for the economy. Expects
exports from India to increase in coming years which will result in higher cargo movements.
The company had market share of around 13% in NCR market and around 40% in Punjab
market in Rail business.
Overall FY 20 should see better volumes and throughputs from all the segments
Praj Industries : Enquiry base is strong

In the conference call the company was represented by Shishir Joshipura, CEO & MD and
Sachin Raole, CFO & Director Finance and Commercial of the company.
Performance of the company for the FY 2018-19 is reflective of positive developments in the
market and the response of the company to emerging opportunities.
Order intake in Q4FY19 was Rs 306 crore (down from Rs 375 crore in Q4FY18) and for FY19
was Rs 1394 crore (up from 1040 crore in FY18). Order backlog as end of March 31, 2019 was
Rs 928 crore (Rs 675 crore as end of Q4FY18). Of the order backlog 71% is domestic and
balance 29% is exports. Moreover of the order backlog about 77% is bioenergy, 18%
engineering business and 5% Hipurity.
The domestic bio-energy landscape is structurally enhanced by far sighted strategic policy
interventions of the Central Government. Select international markets are also witnessing
focused policy interventions on Bio energy mandates. Praj, with its customer centric technology
portfolio, is well positioned to capitalize on these emerging opportunities.
For ethanol supply year 2018-19, India is on course to record it's highest-ever ethanol blending
rate of 7.2% in the current ethanol year as against 4.22% for the last year.
The Cabinet Committee on Economic Affairs (CCEA) has approved the "Pradhan Mantri JI-VAN
Yojana" that has allocated Rs1800 crore for supporting 12 numbers of 2G Commercial projects.
Additionally, Rs 150 crore have been allocated for supporting 10 numbers of advanced bio-fuel
demonstration Projects
Of the 12 numbers of 2G commercial projects under PM Ji-VAN Yojana, in first phase six
projects have been awarded. And of these six projects the company is building four for 4 Oil
Marketing companies (OMCs) of IOCL, BPCL, HPCL and Mangalore Refinery. Of these four
projects licensing and detailed engineering is currently going on. Ordering of physical equipment
is already over in case of IOCL project and in case of other three the ordering of physical
equipments is in advanced stage.
Q3FY19 had intake of one large order for critical equipment for the 2G project from IOCL. The
orders for critical equipment from other 3 projects are not yet awarded. The fair potential for the
company in each of 2G projects for 4 OEMs is about Rs 150 crore per project.
Engineering businesses have continued to build on the foundation and have all chalked out
strategies for a healthy growth.
The company enjoys about 2/3rd of the market share in ethanol. Ethanol order received in FY19
was Rs 940 crore. In case of first generation biofuel plant there is about 268 applications are
pending for approval.
Praj signed a Construction License Agreement (CLA) with Gevo, Inc, USA to commercialize
technology for the production of Isobutanol, high energy feedstock for jet biofuels
Praj Successfully commercialized advanced technologies to reduce water consumption in
ethanol plants by almost 75%.
The company is witnessing continually increasing interest from its prospective customers across
domestic and international markets and remains confident of continuing the growth momentum
ahead.
The enquiry is increased and intensity of customer dialogues across all business verticals the
company and geography it is present. For engineering business also the enquiry base is
currently strong.
Lumax Industries : Target is to have 5-8% sales growth

on 2% volume growth in FY 2020
Lumax Industries held its conference call on 17 May 2019 to discuss results and future.
Deepak Jain, Chairman & Managing Director, of the company addressed the call.
The company has its operations since 7 decades.
It is leader in automotive lighting & gear shifters.
It has 29 manufacturing facilities.
It has diverse products for 2-4-wheelers & CV
In FY 2019 net sales grew 12% to Rs 1851 crore. Growth in sales was led by increase in
volumes and value addition of new technology lighting components.
In FY 2019 the company witnessed foreign exchange loss of Rs 3.50 crore as against gain of
Rs 2.80 crore yoy.
Profit after Tax after share of associate companies stood at Rs 104 crore in FY19 as against Rs
71 crore in FY18. The profit was higher on account of one-time gain from sale of land and
building.
Even after excluding the gain from sale of land and building, the profits are higher on a YoY
basis.
The Board of Directors have recommended a dividend of Rs. 35 per share for the year ended
31st March 2019. This includes special dividend of Rs. 10 per share on account of gain from
sale of land and building.
Sales in Q4 stood at 433 crore, down 23%.
The company witnessed the impact of tough industry scenario in its Q4 results.
In FY 2019 H1 was very good but H2 was tough. The festive season also did not see pick-up in
demand which resulted inventories buildup at dealers end. As such the company had to give big
discounts to liquidate the inventory.
In March 2019, OEMs decided to destock their inventory by reducing production.
Car sales fell despite deep discounts given by car makers to avoid slowdown.
Revival expected only in H2 after political stability.
PVs are expected to grow 5-6% and CV in single digits in FY 2019.
2-Wheelers are expected to grow at 5% and 3-wheeler between 5-7% in FY 2020.
LED is the future of automotive lighting.
LED accounts for 33% of sales against 25% in FY 2018.
The management sees LED accounting for over 50% of sales in coming years.
Top clients include Maruti Suzuki HMSI, HeroMotocorp, M&M and Tata Motors
The company is confident of outperforming the auto industry.
It has strong aftermarket exports presence.
Continuous endeavours towards cost rationalization & product innovation has helped it stay
ahead of the curve.
The company continues to focus on enhancement of operational efficiencies through leaner
operating model, localization, electronic skill development of the people and deployment of
latest technologies.
The auto OEMs are currently facing a challenging time, which is likely to impact the
performance of the Auto Component industry.
The company is preparing for the future and is confident to outperform given the strong
dynamics of the Indian economy.
Lumax is one of the major suppliers to OEMs including Maruti Suzuki, Mahindra & Mahindra,
Tata Motors, Honda Cars, HMSI, Hero Motocorp and others.
Front lighting (Head Lamp & Fog Lamp) accounted for 69% of sales in FY 2019 against 68% in
FY 2018.
Rear lighting (Tail Lamp & High Mount Stop Lamp) accounted for 24% of sales in FY 2019
against 23% in FY 2018.
Others (Auxiliary Lamps, Indicators) accounted for 7% of sales in FY 2019 against 9% in FY
2018.
In Q4 Passenger Vehicles accounted for 67% of sales in FY 2019 against 67%.
In Q4 2-Wheelers accounted for 27% of sales in FY 2019 against 26%.
In Q4 Commercial Vehicles accounted for 6% of sales in FY 2019 against 7%.
Passenger Vehicles accounted for 67% of sales in FY 2019 against 68% in FY 2018.
2-Wheelers accounted for 27% of sales in FY 2019 against 26% in FY 2018.
Commercial Vehicles accounted for 6% of sales in FY 2019 against 6% in FY 2018.
The company has over 3 decades of strong partnership with Stanley Electric Co. Limited,
Japan, a world leader in Vehicle Lighting and illumination products.
Lumax has nine ultra-modern manufacturing plants in India, strategically located near
manufacturing locations of major OEMs.
Capex for FY 2019 was Rs 94 crore. In FY 2020 normal capex is expected to be Rs 52-60 crore
apart from Rs 75 crore for electronic manufacturing.
Long term debt is nil currently.
Target is to have 5-8% sales growth on 2% volume growth in FY 2020 and double digit margins
(against 9.1% in FY 2019) on EBIDTA front.
Action Construction Equipment : Expects 10% growth in

sales for FY20
Action Construction Equipment hosted a conference call on May 17, 2019. In the conference
call the company was represented by
Fiscal year 2018-19 was an unusual year for the company. For the first time in the history of the
company the H2 revenue was lower than H1. H2 usually accounts for 55-60% of the sales of the
company.
Sale for FY19 was up by 24% to Rs 1342.49 crore facilitated by higher sales from all business
divisions of the company. While the segment revenue of cranes was up by 29% to Rs 964.29
crore, that of construction equipment, material handling and Agri Equipment have registered a
growth of 12%, 17% and 10% respectively to Rs 80.19 crore, Rs 94.38 crore and Rs 203.63
crore.
EBIT for FY19 was up by 9% with segment profit of CE down by 42% to Rs 2 crore. The
segment revenue of cranes was up by just 8% to Rs 89.24 crore despite higher sales was
largely due to fall in segment margin. The segment profit of ME and AE was up by 18% and
45% respectively to Rs 11.5 crore and Rs 6.8 crore facilitated by both higher sales and higher
margin.
The company has effected a price increase of 3% in Jan 2019 to offset the increase in RM cost
especially the price of steel.
On conservative basis, the company expects a sales growth of 10% for FY20 and EBITDA
margin of 9-9.5% and PAT margin was 5%.
The company expects about 9-10% of FY20 sales to come from exports.
The order booking started to slowdown in mid Jan 2019 and continued that momentum in Feb
and March as well.
All of the customers of the company (i.e. construction companies big and small across all
verticals infra projects and buildings) are flush with orders. But despite requirement they
become conservative and bought only minimum number of equipment. The customers require
the equipment
For the company the 85% of revenue comes from equipment and 15% agri.
Sale in April 2019 was ok and that of May 2019 as of now is slow. The company expects to
better the Q4FY19 performance in Q1FY20.
Capacity expansion is in place and ready with incremental demand if comes.
Preference share remain to be paid as end of March 2019 was Rs 6 crore and that was also
repaid in April 2019.
RM cost went up by 12% in FY19 and the cumulative price increase in FY19 was about 7-8%.
So a differential of just about 1-1.5% is still pending after considering recent cooling of steel
price.
The company has taken a price increase of 1% in April 2019 in tractors. So for this segment the
gap is just fractional or nil. For non-agri equipments the company will consider a price increase
to completely offset the RM cost rise in Q2FY20.
The company lost a sale to the tune of Rs 30 crore due to glitch in RDO software in obtaining
temporary registration for transportation of CE and tractors by road. This sale of Rs 30 crore
shifted to Q1FY20. Unfortunately majority composition of this lost sale is tractors and that badly
hurt the sales figure of agri equipment in Q4FY19.
Next 1-1.5 year the company is not looking at no significant capacity expansion for any of the
products of the company. The capex for the year will be Rs 10-15% crore largely towards
maintenance capex.
In Q4FY19 the company clocked a sales volume of 1440 number in case of pick ‘n' carry
cranes; 11 numbers of tower cranes; 523 numbers of tractors, 115 numbers of backhoe loaders,
126 numbers of rotavators.
Ineos Styrolution : Very tough quarter once again

The company held its conference call on 17 May 19 and was addressed by Sanjiv Vasudeva
MD
Key Highlights
Very tough quarter for the company once again
Inventory losses, lower demand from automotive market in Mar 19 quarter and forex all went
wrong for the company. Also import cost of Polystyrene was higher.
Slower demand also leads to adverse product mix sales which affected the margins.
The prices of styrene went from 1400 $ per MT in Aug 18 to around 950 $ per MT in Nov 18 and
then moved up to around $ 1100 in Feb 19.
The company continued to carry high inventory in Dec 18 quarter and Mar 19 as well. The
inventory was not cleared due to lower demand.
Slowdown was visible in all the user industries be it Automotive, household electronics and
consumer durables etc.
Hopeful of situation to improve post election.
The company is expanding the ABS capacity by 35%. External tolling business will get reduced
as higher manufacturing facilities come on stream by end of Dec 19. All the capacity additions
planned by the company is for Indian markets.
There was a volume growth of 2.5% in Mar 19 qtr on YoY basis and for FY 19, the volume
growth stood at 1.5%.
Karur Vysya Bank : Expects net slippages of Rs 700 crore,

targets RoA of 1% for FY2020
Karur Vysya Bank conducted concall on 16 May 2019 to discuss financial performance for the
quarter ended March 2019 and the prospects of the bank. P R Seshadri, MD&CEO of the
bank addressed the call:
Highlights:
The bank has new digital systems in place which is live and fully embedded and capable of
managing substantial volumes. The bank has established New Business Banking Unit to
originate and manage small business credit requirements. The bank has centralized
underwriting process with specialist team and substantially completed non-branch distribution
channel hiring.
Branch operational centralization is progressing well, while collection processes stabilized
leading to improved portfolio statistics. Additional collections infrastructure is being created in
Chennai
Third party products continue to grow well with life insurance premium rising 34% mutual fund
revenue rising 159% in FY2019 over FY18.
The bank has fully implemented risk based pricing in retail / commercial products, which has led
to improvement in NIM by 28 bps sequentially in Q4FY2019. The weighted average yield on
new loan in retail is up by 1.43% and commercial is up by 0.91% over a year ago level.
The bank expects net interest margin to be at 4.00-4.25% in FY2020 driven by better pricing
strategy. NPA reversals and moderation in fresh slippages is expected to add 10-12 bps to NIM.
The bank aims to grow its balance sheet by 15% and revenues by 17% in FY2020. The bank is
targeting pre provisioning operating profit of Rs 2000 crore and provisions of Rs 1200 crore,
ending with PBT of Rs 800 crore in FY2020. This would help the bank to achieve RoA of 1%
and RoE of 15% in FY2020.
The bank is targeting loan growth of 12 to 15% for FY2020, which will be mainly driven by
strong 30% retail loan growth and mid-teens growth for commercial loan segment to be driven
by small ticket loans. The corporate segment loan growth is expected to be moderate at 5%.
The bank exhibited strong increase in share of retail loan to 22% from 17% a year ago. The
share of corporate loan book has dipped to 28% from 31% a year ago and a peak of 37% a four
year ago.
The bank has maintained its earlier guidance of gross slippages of Rs 1850 crore and
recoveries of Rs 750 crore leading to net NPA addition of Rs 1100 crore for five quarter ending
March 2020. In first quarter of guidance period, the net slippages stood at Rs 400 crore in
Q4FY2019. Thus, the bank expects net slippages of Rs 700 crore for next 4 quarters.
The bank expects to maintain aggressive provisions and aims to improve provision coverage
ratio to 60% by March 2020. Against the net slippages of Rs 700 crore, the bank expects to
make provisions of Rs 1200 crore, helping to improve provision coverage ratio.
The bank aims to build a loan portfolio with annual net slippages of 150 bps, while bank expects
to achieve the steady state net slippage ratio of 150 bps in current year itself.
The bank expects credit cost is expected to be at 75 to 80 bps in FY2020.
The fresh restructuring of the bank stood at Rs 68 crore, while the bank expects more
restructuring of Rs 54 crore in MSME segment raising its restructured advance book to Rs 120
crore in next 3-6 months
The banks exposure to NBFC segment stands at 3% of the loan book. The bank does not have
exposure to 2 companies getting rating downgrade in HFCs space, while the exposure to
financial subsidiary of struggling telecom company stands at 3 digit level.
The majority of banks exposure in real estate is in retail, so no stress is there in CRE book.
The exposure to NCLT 1 and 2 list stands at Rs 400-500 crore.
The bank is well capitalized with the capital adequacy ratio of 16% and does not require capital
infusion as of now.
The bank aims to reduce SMA 1 and 2 loan book below 3% with SMA 2 below 1%.
Bajaj Finance : Expects RoA of 3.2-3.5%, well positioned for

strong growth
Bajaj Finance conducted a conference call on 16 May 2019 to discuss its financial results for the
quarter ended March 2019. Rajeev Jain - CEO of the company addressed the call:
Highlights:
The company has continued to exhibited robust performance with customer franchise rising
32% to 34.48 million end March 2019 from 26.22 million end March 2018. The company
acquired 1.92 million new customers in Q4FY2019.
New loans booked jumped 53% to 5.83 million in Q4FY2019 from 3.80 million in Q4FY2018.
Existing customers contributed to 67% of new loans booked during Q4FY2019 versus 63% in
Q4FY2018.
The AUM of the company surged 41% to Rs 115888 crore end March 2019 from Rs 82422
crore end March 2018.
With the strong growth in net interest income, the ratio of operating expenses to net interest
income ratio has improved to 34.6% in Q4FY2019 from 39.5% in Q4FY2018. The company
expects the opex to NII ratio remain stable at 35%, going forward.
The company has received a rating of BBB- with stable outlook for its foreign currency
borrowings program of US$ 750 crore, which is expected to be fully completed in FY2020.
The Company continued to focus on granularity of the portfolio across products and
geographies to reduce risk and augment profitability. It is reflected in better margin, lower
operating expenses and better risk metrics in Q4FY19 and full year FY19
Portfolio quality remained at its record best in Q4FY2019 adjusted for IL&FS exposure.
GNPA of the company declines by 8-9 bps excluding IL&FS exposure. With strong portfolio
quality, the company is well placed to grow its business in a robust manner.
The co-branded credit card with RBL Bank crossed a milestone of one million cards in force in a
little over two years. The company aims to be among top 3 card issuer in next 5 years and may
onboard one more partner.
Bajaj Financial Securities a 100% subsidiary of Bajaj Finance is set to start its broking business
from 15 June 2019. Its strategy is to offer a full product suite (broking) to Loan against
Securities (LAS) clients and grow the profit pool of LAS business.
Bajaj Housing Finance completed a first full year operation in FY2019. The company has
infused capital of Rs 1000 crore in housing finance subsidiary. The company expects the
cost-to-income ratio of the company to improve with rising scale of operation, while it targets
RoE of 14-15% with 8-9x gearings. The company is also targeting the market share of 8-10% in
housing finance business in next few years.
As per the company, the consumption outlook slightly moderate as compared with six months
back.
The company expects the ratio of fee income to net income to remain stable with +/- 50 bps.
The company has originated premium of Rs 950 crore from life, health and general segments,
out of which Bajaj Life Insurance account for Rs 510 crore and Bajaj General Insurance for Rs
400 crore.
The mortgage business of the company at Rs 17000 crore is expected to completely wind down
by March 2021.
The market share in Bajaj Auto vehicles finance has increased to 42-44% from 32-34% earlier.
The company expects the share of mortgage business to increase to 36-38% of consolidated
AUM in next 3-4 years from existing 29% and commercial lending would be 12-15%. The steady
state RoA is expected to be 3.2-3.5% and RoE at 18-20%.
CERA Sanitaryware : Expects ~20% revenue growth in FY20

CERA Sanitaryware conducted a conference call on 16 May 2019 to discuss the financial
performance for the fourth quarter ended March 2019, FY19, and way forward. Mr. Bharat Mody
– Strategic Advisor; Mr. Ayush Bagla – Director and Mr. Rajesh B. Shah – CFO of the Company
addressed the conference call.
The company's registered an impressive performance on all counts – double-digit topline

revenue growth attained with improvement in working capital, EBIDTA margin improvement and
decent traction in profitability. Cera Sanitaryware has reported a rise of 24% in its net profit at
Rs 38.04 crore for the quarter ended March 2019 as compared to Rs 30.61 crore for the same
quarter in the previous year. Total income of the company increased by 15% at Rs 418.78 crore
for quarter under review as compared to Rs 365.62 crore for the quarter ended March 2018. For
the FY19, the company has posted a rise of 15% in its net profit at Rs 115.05 crore as
compared to Rs 100.25 crore for the previous year. Total income of company increased 13% at
Rs 1,359.24 crore for year under review as compared to Rs 1,203.95 crore for year ended
March 2018. The Company reported standalone EBITDA margin at 15.4% (up 140 bps YoY),
largely led by lower than expected staff cost and other expenses.
The Company south/north/west/east India contributed 44%/25%/22%/9% of sanitaryware
revenue in Q4FY19.
The Company has guided the growth trend to follow in FY20E as well. The Company expects
~20% revenue growth in FY20, aided by recent product launches (under brands Senator and
Isvea) and sustained growth momentum in allied products (tiles and faucets). Sanitaryware
segment is expected to grow at 7-10% in FY20. Further, the company has taken price hike of
4-6% in all the segments in April, 2019.
The company's has recommended a dividend of Rs. 13/- (260%) per fully paid-up equity share
of Rs. 5/- each.
The Company capacity utilization in sanitaryware and faucets was at 91% and 71% in FY19
respectively. Tiles JVs are currently operating at above 90% capacity utilization. The Company
will cater to incremental tile volumes via outsourced manufacturing.
The Company in tiles is a newer entrant, entering the segment in 2014 with its own plant coming
on stream in 2016. The Company expects high single to low double-digit growth of top-line in tile
annually in a market size of Rs.14,000 crore, which is just an organised market in tiles.
For FY19, out of total income of Rs 115.05 crore, Sanitaryware contributed 52.5% of top-line,
faucetware 23.5%, wellness 3.5% and tile 20.5%.
The Company CAPEX plan for FY2020 is Rs.75 crore. The Company plans to spend Rs 7.5
crore in customer touch points, Rs 19 crore for staff colony and curry plant in Mehsana, For
automation in faucetware busiess of ~Rs 12 crore, automation in sanitaryware business of ~Rs
28 crore, and - logistic warehousing and IT system is ~Rs 8.5 crore.
The Company plans to spend 4.5% of topline for Advertisement and brand building for FY20.
Bharat Forge : Tailwind is expected from pick-up in
infrastructure development and potential pre-buying
ahead of the implementation of BS-VI emission norms
from 1t April 2020
Bharat Forge held a conference call on 20 May 2019 to discuss the results and future growth
strategies.
Amit Kalyani, Executive director of the company addressed the call.
FY 2019 was a record year for the company.
In FY 2019 the Passenger vehicle & two wheeler segment posted modest growth whereas the
Commercial vehicle, three wheelers and Tractors segment posted healthy double digit growth in
volumes.
H1 saw robust performance in the automotive space however performance in the second half
remained fairly subdued.
M&HCV segment saw quite robust growth in the initial months but started declining from
October 2018 onwards. This was due to tightening financing environment, surplus capacity
created through revised axle load norms, higher fuel cost and weak freight rates.
In a subdued underlying market, revenues from the passenger car segment in FY 2019 grew by
a strong 16.2%.
In FY 2019, BFL recorded its highest ever revenues from the India Commercial Vehicle
segment at Rs 1098.8 crore.
In FY 2019, sales volumes for FY 2019 of M&HCV segment grew 15%.
In FY 2019, sales grew 16% to Rs 6159. crore. OPM grew 200 basis points to 30.9%. Thus OP
grew 24% to Rs 1906.10 crore. PBT went up 28% to Rs 1623.08 crore.
In FY 2019, consolidated sales grew 21% to Rs 10145.73 crore. OPM fell 30 basis points to
20.3%. Thus OP grew 19% to Rs 2055.57 crore. PBT went up 25% to Rs 1610.36 crore.
In March 2019 quarter sales jumped 14% to Rs 1668.60 crore. OPM grew 250 basis points to
31.0%. Thus OP grew 24% to Rs 517.28 crore. PBT jumped 29% to Rs 453.77 crore.
The company continued to strengthen the balance sheet with all key financial ratios improving
compared to FY2018.
In FY 2019, the company secured orders worth 50 million across sectors and geographies. An
encouraging trend is the large part of the order is on new product development.
Around 60-70% of new order wins are from new sectors and new products.
The company continues to develop a strong order pipeline which it hopes to convert in the
coming year.
The Centre for Light Weighting Technology at Nellore is expected to come on stream in the
coming few months. In the 1st phase, the facility will manufacture critical light weight
components in Aluminum. Having already secured contracts, this facility is expected to provide
a fillip to growth as it gradually ramps-up.
Nellore plant will focus on existing Bharat Forge's forging and machining business. It will target
complex high value and high value added components mostly chassis components. This plant
will not have any aluminum business.
After a strong two year performance wherein the company delivered 30% & 35% CAGR topline
& profit growth, it is starting to witness demand flattening out in the export markets.
The sluggish export market is compounded by the lack of momentum in the domestic market
across sectors.
The management expects the situation to improve in the coming months.
The company will focus on navigating through the challenging demand environment, utilizing a
combination of accelerated new product development and cost optimization.
In FY 2020, the demand environment is expected to be weak in Q1 but should revive going
forward.
Tailwind is expected from pick-up in infrastructure development and potential pre-buying ahead
of the implementation of BS-VI emission norms from 1t April 2020.
Volatility in demand could be the norm in the CV space in FY20 as the players will try to ensure
no significant pile up of inventory and smooth change over to BS VI compliant vehicles.
The company continues to focus on new product development and increase content per vehicle
in the M&HCV space.
In the passenger vehicle segment, the company has made significant progress on new product
development.
New products have helped in adding new customers and also increase its share with existing
customers.
The company recorded strong growth in all the sectors of the Industrial business it operates in
with defence, agri and infrastructure related sectors contributing the strongest growth. In FY
2019, industrial segment recorded its highest revenues of Rs 1009.4 crore, up 28%.
Exports in FY 2019 grew 25% to Rs 3725.80 crore.
The US Class 8 market remained strong throughout CY 2018 and grew strongly by 27% on the
back of a strong economy and solid freight demand. Order activity has moderated in the initial
months of CY 2019 but is expected to normalize going ahead H2 compared to last year's record
numbers. This year is expected to show modest increase in production on account of a robust
build schedule and order backlog.
It is very difficult to project how class 8 truck will be in FY 2021.
The Oil & Gas industry in North America witnessed another good year of increased activity and
output supported by the shale gas industry. BFL continues to expand product offerings and has
been successful in adding new customers, increasing share with existing customers and
winning new orders across the segments it operates in.
Global economic uncertainty, volatility in crude oil prices and bottleneck issues in transportation
of shale output is starting to adversely impact production activity.
RoE net of cash improved to 24.7% from 22.5%.
Long term debt is Rs 1935 crore and Cash is Rs 1836 crore. So net debt is less than Rs 100
crore.
Going forward, capex intensity will go down significantly and the company will focus on sweating
its assets. From FY 2019-2020 project capex will be Rs 850 crore plus there will be Rs 400
crore of maintenance capex
The company refused to give details on O&G revenue and said that they will stop giving
segment wise revenues as there is scrutiny of the same and the information is also misused.
The company had the highest ever revenues from O&G. O&G is only exports business and
accounts for less than 40% of the overall revenues.
The company is also focusing on electric vehicles but will wait for couple of months to talk on
the same.
From BS 6 standpoint, CVs will see around Rs 1000 increase in price per vehicle.
Transition from Euro 4 to Euro 6 has taken 6-8 years globally.
Most of the CV companies are going for electrification.
Agriculture has slowed down a bit but is expected to improve now as the elections are over.
Defence business has been doing well despite it not getting any orders from the large projects it
is working on. The orders should come next year and a year later it should convert into
significant revenues.
In FY 2019 sales from domestic and exports sales for defence and aerospace was Rs 440 crore
and Railways was Rs 80 crore.
Hind Rectifiers : Strong momentum to continue in FY 20

The company held its conference call on 20 May 2019 and was addressed by S Nevatia
Director
Key Highlights
The company held its 1st ever investor conference call and has assured of better transparency
and calls atleast on an annual basis.
Presently, the company provides Rectifier transformers, convertors, motors, panels etc.
Complete end to end solution provider as far as rectifiers line of business is concerned.
It has 3 manufacturing locations. Mumbai, Nashik and Dehradun and 53 people in R&D team
which it expects to reach to 100 by end of FY 20. Rs 6-8 crore of capex planned in FY 20 is for
R&D for new and complex products and processes.
Main growth drivers for FY 19 include widened product portfolio offerings, launched series of
product range which aided the growth. These products have advance technology and lower
costs of manufacturing resulting in high efficiency for end users.
The company's domestic market is growing. Around 90% of total sales are from Indian
Railways. The Indian railways electrification and modernization plan from diesel to electric is
resulting in more tenders. The tender size and frequency of tenders have increased.
The company has successfully tied up with Bombardier India and has supplied to them who
inturn supplied their coaches to Indian Railways. The company has now become a recognised
Global supplier for Bombardier Group for meeting the rectifier requirements of the group
worldwide.
Working aggressively in exports. Company regained lot of customers which were lost in the
past. Majority of them are industrial customers in Austria, Ukraine, Russia and Turkey. These
customers are now ready to work exclusively with the company. The company is charging
premium compared to the competitors.
Also working on new export markets like Brazil and US for higher exports. Multiple RFQs have
been placed and aim to convert them into orders.
The company is also working on Railway supplies to overseas markets. So far only to Indian
railways and Srilankan Railways. One such product for exports which R&D team has developed
is Universal battery charger which can be used for locomotives, metro rail, industrial
applications, mono rail etc.
Rs 350 crore of order book as on April 19. 90% of order book is from Indian railways, 2% from
exports and rest from other industries.
The company is adequately funded as far as orders are concerned. But company would need
additional bank guarantee funding for Indian railway orders.
Due to elections, while bidding of orders from Indian Railways is done, tendering out will start
only after forming of stable government.
Expects more than 150 bps improvements in operating margins in FY 20 due to higher
execution and better product mix and higher exports. Exports have superior margins compared
to domestic orders.
Rs 7-8 crore of debt for capital investments for FY 20. Rate of interest is at around 10.75%.
Expect the strong momentum to continue in FY 20 as well.
HPL Electric & Power : Expects around 15% net sales

growth in FY 20
The company held its conference call on 21 May 19 and was addressed by Mr. Gautam Seth
MD
Key Highlights
For FY 19, around 52.6% of total revenue came from Metering which grew by 16% YoY, around
20% of revenue came from switchgear segment which grew by 17% YoY and 18% came from
lighting which grew by 15% YoY while around 10% of revenue came from wires and cables
segment which declined by 17% YoY. Wiring & Cables business declined on a higher base of
FY18 which included specialty cable project orders
Orders for 20M meters worth around Rs 2000 crore are in the pipeline from State and Central
government. Also government wants 25 crore of smart meters in next 4-5 yrs which is another
huge opportunity for metering going forward.
Around 52% of total sales in FY 19 came from B2B segment (includes Metering Revenues from
Utilities and EESL) while rest form B2C segment (includes Non-utility Metering, Switchgear,
Lighting and Wires & Cables Segment Revenues).
Order book as on May 19 stands at Rs 575 crore as compared to Rs 450 crore on May 18. Of
this, metering order book stands at Rs 554 crore. Enquiry base for Metering tenders are at a
healthy level, which provides good visibility and positive outlook for the coming quarters.
11.5% Ebidta margins in FY 19 as compared to 10.6% in FY 18. Lower plastic costs have
helped the margins in H2 FY 19. Outlook for the margins remains positive which will be driven
by volumes, centralized purchase etc. Expects 11.5% Ebidta margin should remain as savings
will be used on brand building exercise.
Advertising & Promotion expense as % of B2C revenues increased to 5.1% in FY19 compared
to 2.7% in FY18. The company spent around Rs 30 crore in FY 19 as compared to Rs 15 crore
in FY 18 in IPL.
Receivable days stood at 148 days for FY 19 (165 days in FY 18) and inventory days stood at
130 days (149 days in FY 18).
Debt equity of 0.69. Net debt Rs 444 crore as on Mar 19.
Rs 26 crore capex in FY 19 and around Rs 30 crore planned for FY 20.
Expects around 15% net sales growth in FY 20.
IndoStar Capital Finance : Targets 25-30% growth in

disbursements for FY2020
IndoStar Capital Finance conducted a conference call on 21 May 2019 to discuss the financial
results for the quarter ended March 2019. R Sridhar, Executive Vice-Chairman and CEO of the
Highlights:
The company has witnessed a strong quarter in Q4FY2019 after a challenging quarter in
Q3FY2019.
The disbursements of the company have increased more than 20% to Rs 6500 crore in FY2019
from Rs 5300 crore in FY2018, of which corporate disbursements stood at Rs 3500 crore and
retail disbursements at Rs 3000 crore in FY2019.
The company has touched a disbursements level of Rs 500 to 600 crore per month in FY2019.
The company is targeting 25-30% growth in disbursements for FY2020.
With the acquisition of Rs 3500 crore of commercial vehicle portfolio from IIFL, the overall AUM
of the company has surged 90% to Rs 11700 crore end March 2019. The acquisition also added
161 branches and 1079 staff.
The overall branch network of the company has increased to 322 branches spread in 18 states.
The overall employee base of the company has increased to 2512 end March 2019. The
southern region contributed 139 branches, Western region 86 branches, North 93 branches and
East 4 branches.
The liquidity conditions of the company remains comfortable, while the company has raised
resources of Rs 1200 crore in Q3FY2019 and Rs 1500 crore in Q4FY2019. The funding
requirements of the company were also supported by repayment of a large corporate account.
The company has maintained strong asset quality with the GNPA ratio of 0.7 % and the NNPA
of 0.5% end March 2019, the GNPA and NNPA was higher including IIFL assets at 2.6% and
1.7%.
The company has a strong growth potential. As per the company, there are 8 million commercial
vehicles on road with financing penetration of less than 50%. The company expects to become
major player in the commercial vehicle business and scale up disbursements to Rs 400 crore
per month in FY2020.
The commercial vehicle and housing finance businesses have become profitable in Q4FY2019.
An incremental yield on commercial vehicle book stands at 16.5%.
The company expects the cost-to-income ratio to reduce to 25-30% by FY2021.
The real estate exposure stands at 20%, which is expected to decline to 10% in next two years.
About 70-80% of the real estate book is Mumbai based.
The consolidated leverage of the company stands at 3x, while the company expects no need for
capital raising till FY2021.
Shree Cement : Expect the industry to grow at 6-7% in

FY2020E
Outlook on demand remains and cement prices remains positive

The company has conducted a conference call on 20 May 2019 to discuss the financial
performance for the fourth quarter ended March 2019, FY20, and way forward. Management
team of the Company addressed the conference call.
Key highlights
The Company has posted 20% drop in net profit to Rs 320.95 crore in spite of 17% jump in total
income from operation to Rs 3,284.87 crore for fourth quarter ended March 2019. The decline in
bottomline was largely attributed to jump in interest cost (up 60% to Rs 69.71 crore) and
depreciation cost (up 81% to Rs 420.58 crore). Operating Margin (OPM) increased by 340 bps
to 25.8%. Thus, operating profit (OP) rose 35% to Rs 847.83 crore.
The company's total clinker production for FY2019 stood at 17.65 mt. The company maintained
an average cement clinker ratio of 1.5:1.
The Company has integrated its Karnataka plant with commissioning of the 2.4 mtpa clinker
capacity in December 2018. The 2.5 mtpa grinding unit (GU) at Jharkhand is expected to
commission in June 2019 whereas the 3 mtpa Odisha GU is on track to commission by
Q3FY21E. Further, the Company has announced another 3 mtpa GU at Pune to be completed
by Q4FY20E. The post commissioning of three new plants would increase the Company cement
capacity to 46.4 mtpa (+22%) by FY2021E from current 37.9 mtpa.
The company had received all the necessary approvals in place to put up another clinkerization
facility (brownfield) at Chhattisgarh and the announcement of the same was likely in the next 2-3
quarters. The brownfield expansion would take 15-18 months post announcement. The
company mentioned that it has capability of both, greenfield and brownfield, clinker expansion in
North going forward. The company is acquiring land for future expansion in multiple locations.
However, since the land acquisition timeline is very unpredictable, takes 3-5 years, it announces
expansion only once land acquisition is complete.
The Company has spent Rs1800 crore on project expansion and Rs2100 crore for UAE
acquisition in FY2019. The company has guided a capex of Rs1500-1600 crore for current
expansion projects along with Rs200 crore of maintenance capex for FY2020.
The Company expects a tax rate of 26-27% for FY2020 and expects to receive incentives of Rs
250-270 crore for the next 2 years.
The company had taken price increases in April and May and the current prices were Rs
30-35/bag or 10% above the average pricing of Q4FY19. On the costs front, the company
expects costs to remain stable. The company expects cement demand to recover post elections
and expect the industry to grow at 6-7% in FY2020E.
UAE asset- The Company has acquired a 4 mtpa cement grinding unit with 3 mtpa clinker plant
in the UAE in FY2019 for $300 million. During the 9 months of operation in FY2019, it produced
1.1 mt cement, 2.7 mt clinker and sold 1.1 mt cement, 1.6 mt clinker in FY2019. The UAE asset
generated a revenue of Rs 830 crore and net profit of Rs 30 crore. Consolidated receivables
have increased mainly due to higher working capital days for the UAE asset.
The Company UAE plant doing better than expected on operational front with a consistent
production of ~30% higher than the rated capacity at time of acquisition.
Jammu and Kashmir Bank : Targets RoA of 0.75% and RoE

of 10% for FY2020
Jammu and Kashmir Bank conducted a conference call on 17 May 2019 to discuss the financial
performance for quarter ended March 2019. Parvez Ahmed, Chairman & CEO of the bank
addressed the call:
Highlights:
The bank has posted strong 129% growth in net profit for FY19 at Rs 465 crore from Rs 202
crore in FY2018, buoyed by strong retail credit growth, sale of partial stake in PNB MetLife and
resolution of some large NPLs.
The growth in J&K state credit has been reported at 23%, while the net interest income
surged by 42% in Q4FY2019. The NIIM of the bank increased to 4.05% in Q4FY2019 and
3.84% in FY2019.
The bank is focused on credit expansion in J&K state especially in retail & SME
segments, while it is continuously gaining market share in J&K besides improving the
penetration of credit to hitherto credit starved geographies/segments especially in consumer
and housing sectors.
The aggregate retail credit book of the bank jumped 33%. The corporate to retail mix of overall
advances is now 43 corporate to 57% retail as compared 53 Corporate to 47 Retail a
couple of years ago.
The bank expects to carry forward the existing momentum of the robust business growth and
set the tone of exponential growth for strengthening the new paradigm of sustained profitability.
As per the bank, once provisioning requirements due to ageing of NPAs are over may be in 3-4
quarters, the best in terms of bottom line is yet to come.
The bank expects to further strengthen its low cost CASA franchise, which at 50.7% is one of
the best in the banking industry.
As per the bank, there is a lot of unmet demand and potential for increased lending in sectors of
SME, tourism infrastructure, agriculture & allied, infrastructure (government spending),
home loan, personal finance to govt employees, horticulture, gold loans etc. which is validated
by exponential growth in the past few quarters.
The total business of the bank has increased 14% to Rs 161864 crore end March 2019,
comprising of deposits of Rs 89638 crore and gross advances of Rs 72226 crore.
The bank reported a stable low cost of funds at 4.90%.
The NPA coverage ratio has seen a minor decline on sequential basis to 64.30% mainly
because of downgrade of the IL&FS and its group companies.
The bank recovered NPAs of Rs 2750 crore during the year besides making provisions of over
Rs 1000 crore for bad & doubtful debts.
The bank does not have concerns on any particular account, while the SMA 1 and 2 level of the
bank is comfortable.
The other income of the bank was supported by gains of Rs 143 crore from part stake sale in
PNB Metlife.
The fresh slippages of loans stood at Rs 914 crore in Q4FY2019 and Rs 2965 crore in FY2019,
of which Rs 641 crore came from J&K in Q4FY2019 and Rs 840 crore in FY2019.
The bank has classified Rs 400 crore from J&K related loans as NPA in Q4FY2019 on
account of RBI's NPA divergence report for FY2018. However, the bank expects these NPAs to
be upgraded in Q1FY2020 on account of satisfactory performance.
The bank is holding provisions of 81% on its exposure to NCLT List 1 and List 2.
The bank has exposure of Rs 550 crore to ADAG Group, consisting of Rs 150 crore commercial
finance arm, Rs 100 crore to home finance, Rs 80 crore to infrastructure and some other
investment exposure.
The bank does not have any exposure to Jet Airways and DHFL.
The RWA of the bank stood at Rs 68000 crore end March 2019.
Guidance for FY2020
The bank is targeting loan growth of 20% with 25% growth in J&K loan book.
Net interest margin is expected to be 3.75%, while CASA ratio will be maintained at 50%.
The bank aims to reduce GNPA ratio to 8% and NNPA ratio to 4.0-4.5%, while provision
coverage ratio to 65-70% by end March 2020.
The bank expects credit cost at 1.5% in FY2020. The bank expects slippages of Rs 2000 crore,
while expects healthy recoveries of Rs 2000 crore and aggressive provisions of Rs 1200 crore
on account of aging of NPAs.
The bank is targeting growth of 10-12% in operating expenses and expects to maintain
cost-to-income ratio at 56%.
The RoA is targeted at 0.75% and RoE at 10% for FY2020.
The medium term growth strategy of the bank aims to achieve a total business of about Rs 2.50
lakh crore with a targeted profit of Rs 2000 crore, NIIM ranging between 3.5-4%, ROA of 1.3%,
ROE of 16%, cost-to-income ratio 50% and credit cost below 1% at the end of FY2022.
City Union Bank : Expects fresh slippages ratio at 1.75-2.0%

for FY2020
City Union Bank conducted a conference call on 17 May 2019 to discuss the financial results for
the quarter ended March 2019 and prospects of the bank. Dr N Kamakodi, MD&CEO of the
bank addressed the call:
Highlights:
The bank had guided for flat operating profit in FY2019 with 18% - 20% of credit growth,
slippage ratio between 1.75% and 2%, ROA of 1.50% - 1.60%, ROE around 15%+, elevated
cost to income ratio of 42% - 44% due to absence of significant treasury income.
Against these expectations, the bank has closed FY19 with 17% growth in business, with same
level of growth in advances & deposits.
The bank had expected better pick up of general economic environment by second half. But in
realty things are not yet rosy and not too bad either, while the bank is waiting for ‘good times'.
The bank has sold excess micro enterprises portfolio of Rs 700 crore through participation
certificate and brought equal amount of retail-vehicle book making ‘nil' effect in balance sheet
figure for a short term period of 91 days. This resulted in decline in MSME sector exposure and
increase in others category to an amount of Rs 700 crore, excluding this effect, composition
also remains by and large same.
The bank has does not have any exposure to ILFS in any form or companies now in news for
wrong reasons.
The slippage ratio to closing advances for FY 2019 was 1.91% and RoA stands at 1.64%, ROE
15%+ and Cost to Income at 41.67%, which are closer to the expectations shared by the bank.
The bank has witnessed some momentum in recovery in FY2019 and the actual recovery of
NPA (Live + TW a/c) for FY 18-19 was totaling to Rs 338 crore comprising Rs 248 crore from
live accounts and Rs 90 crore of technically written off accounts while the actual recovery for FY
17-18 was totaling to Rs 276 crore comprising Rs 205 crore from live accounts and Rs 71 crore
technically written off accounts.
The bank had the highest proportion of restructured assets up to 10% in 2008-09 when it
offered benefit to all eligible borrowers. Nevertheless, the bank had lowest migration to NPA in
the following two years.
The bank had informed all eligible borrowers about new RBI circular and have to give
restructuring if they ask for. There are around 18 MSME borrowers account has been
restructured during Q4FY19 amounting to Rs 34.98 crore and the scheme is open up to March
2020. Also an amount of Rs 21.13 has been restructured under GAJA Cyclone Relief which hit
Tamil Nadu during Q3FY19.
With regard to cyber attack on SWIFT system in February 2018, the bank has provided in full for
the loss. The bank is also planning to going for arbitration on rejection of insurance claim.
The bank has opened 50 branches/outlets raising the total branches network/outlets to 650, of
which 10 were banking outlets operated by Business Correspondents.
The bank is not required of reporting divergence for FY2019 as per the report given by RBI
which was well within the threshold limits.
The bank has SRs to the tune of Rs 374 crore of which top 4 assets contributed 90%. Two of
the top 4 were resolved and repayments started coming. The bank had redemption of Rs 49
crore worth SRs in the last year. The largest one got resolution last week and repayments will
start from 3rd quarter and will end by year end.
The bank normally has flat growth in Q1 and net NPA may inch up by 4-5 bps, but % of net NPA
is expected to start falling towards the second half.
The bank has exposure to one educational institution of over Rs 50 crore which come to
stressed category last year. They repaid partly by sale of assets and got out of the list. Many
private educational institutions have receivables from government for reimbursement of tuition
fees for reserved category students. TN government is clearing reimbursement only for half the
fees corresponding to educational year 2017-18 which is creating stress in operations. If
government releases as promised the tuition fee reimbursement for year 2017-18 (half) &
2018-19 that a/c will survive else it could slip into NPA. All inclusive, the bank expects for
current financial year also the slippage ratio to closing advances will be between 1.75% to 2%
for FY 19-20.
The bank aims to achieve 18% - 20% of credit growth for FY2020
The ROA will be same at 1.50 – 1.60% and ROE around 15%+ in FY2020.
The cost to income ratio will be in the range of 42% for FY2020.
The bank would strive to protect profitability growth by proper focus on NPA management by
reducing slippage and improve recovery of NPAs by liquidation of collaterals.
Hindalco : Expects capex of Rs 2600 crore in FY2020 in the
domestic business
Hindalco conducted conference call to discuss the results for the quarter ended March 2019.
Mr. Satish Pai, Managing Director and Mr. Praveen Maheshwari, CFO of the company
addressed the Concall.
The Indian Aluminium business delivered a strong revenue growth at Rs. 23,775 crore for FY19
compared to Rs. 21,090 crore a year ago, on the back of stronger realizations and supportive
macros. EBITDA at Rs. 5,202 crore in FY19 grew 9% compared to Rs. 4,790 crore in FY18.
This growth was driven by supporting macros, stable plant operations and improved efficiencies,
offset by higher input costs in FY19.
The Company achieved record production of Aluminium at 1,295 Kt, with Alumina (including
Utkal) at 2,893 Kt in FY19. Production of Aluminium Value Added Products (VAPs), excluding
wire rods, grew 5% to reach an all-time high of 321 Kt.
VAP (Copper Rod) production increased by 47% to 245 Kt vs. 166 Kt in FY18, due to ramp up
of the new Continuous Cast Rod-3 (CCR-3) facility. The CCR-3 plant achieved a production
level of 117 Kt in FY19. DAP production jumped 48% to 303 Kt in FY19 vs. 205 Kt last year. The
overall production volumes (Copper Cathode) at 347 Kt in FY19 were lower by 15%, due to
reduced volumes on account of planned maintenance
Revenue from the Copper business stood at a steady Rs. 22,155 crore in FY19 vs. Rs. 22,382
crore in FY18. EBITDA was at Rs. 1,469 crore vs. Rs. 1,539 crore in FY18. Better by-product
realisation for the year was offset by lower volumes due to planned maintenance and marginally
lower Tc/Rc.
Q4FY19 was fraught with uncertainties due to escalation of US-China trade war, geopolitical
issues, slowdown in China & Europe and Brexit. This impacted LME prices in the quarter.
Domestic industry continues to see robust demand. FY19 demand grew 9.7% YoY. However,
domestic producers were not able to capture growth on account of high imports from China and
FTA countries. Imports accounted for 58% of market share compared to 54% in FY18.
Hindalco Industries anticipates a deficit of 1.5-1.7 milion tonne (mt) globally in Aluminium
markets with a marginal deficit in China. Total global inventories are expected to decline below
10 mt owing to sustained drawdown which could result in prices reviving H2FY20 onwards.
Indian Aluminium consumption is expected to be driven by construction and packaging sectors.
Global refined copper consumption growth is expected to slow down to 2.0% YoY compared to
2.8% YoY in CY18. CY19E global refined copper consumption is expected at 24mt. Concentrate
market is expected to be in deficit of 100kt with demand likely to be in the 16.5-16.7mt range.
This should pressurise TC/RC.
Domestic copper demand in FY19 grew 10% YoY to 729kt driven by electrical &
electronics and consumer durables. However, imports from ASEAN and FTA countries
continued to pressurise domestic producers. Rods and wire imports swelled in FY19. Going
forward, while power generation equipment and renewable sector is expected to drive growth,
an elevated level of low priced imports remains a concern.
Hindalco Industries Alumina refinery at Muri (capacity of 380ktpa) is currently shut due to the
spilage in the red mud cake storage area. The refinery used to produce 350ktpa and the
company expects the refinery to start by end of Q2FY20E. In the interim, the company has
started importing alumina for the shortfall. However, the Muri refinery was a high cost refinery
with alumina cost of production at ~$320/ton versus import cost of $360 per tonne.
Novelis revenue grew 8% to US$ 12.3 billion, driven by higher average aluminium prices, record
shipments and an enriched product mix. Total shipments of flat rolled products (FRP) grew 3%
to 3,274 Kt in FY19, with a 7% growth in Beverage Can shipments and a 2% growth in
Automotive Body Sheet shipments YoY. Adjusted EBITDA grew 13% to US$ 1.368 billion,
compared to US $1.215 billion in FY18, driven by higher shipments, operational efficiencies and
a favourable product mix. Adjusted EBITDA per ton was higher by 10% at US$ 418 in FY19 vs.
US$ 381 for the prior year. Novelis leveraged its extensive recycling footprint and increased its
recycled contents from 57% to 61% in FY19.
The company expects a total capex of Rs 2600 crore in FY2020 in the domestic business
primarily for its Utkal refinery expansion. This project is expected to be commissioned by
FY2021.The company has capex plans of Rs 5000 crore in incremental downstream projects
over the next five years.
Petronet LNG : Aims 25-30% utilization at Kochi terminal by

the end of FY20
Petronet LNG conducted conference call to discuss results for the quarter ended March 2019
and way forward. Mr. V.K. Mishra, Director (Finance), Mr. Mukesh Gupta, Vice President
(Finance) and Mr. Pankaj Wadhwa- Sr. VP Marketing of the company addressed the call.
Volumes during the quarter was 205 thousand btu (TBTUs) in Q4FY'19 compared to 213
thousand btu in Q4FY'18 and 202 thousand btu in Q3FY'19.
Dahej terminal volume was 198 thousand btu while Kochi terminal handled 7 TBTUs of LNG.
Out of total Dahej volumes- 100 TBTUs were from long-term supply, 7 TBTUs were for
short-term supply and 91 TBTUs were re-gasification quantities.
Current Dahej utilization was 105% compared to 110% in Q4FY18 and 102% in Q3FY19.
Inventory loss in Q4FY19 was due to valuation of inventory as per accounting standards with
spot LNG prices dropping from USD 8 per mmbtu to almost USD 4 per mmbtu from Q3 to
Q4FY19 end. It is notional but with recovery in spot LNG prices would be recouped. Already Rs
25-30 crore has been recovered out of Rs119 crore in total as gas prices are up to USD 5.5 per
mmbtu currently. PLNG has not marketed the cargo yet and could gain from it once sold.
Q4FY19 witnessed slowdown in terms of a fertilizer plant shutdown (maintenance scheduled
once every two years), while IOCL's Panipat and Koyali refineries were also under shutdown,
leading to an accumulation of two cargoes. Operational performance otherwise was steady.
The company expects volumes to grow in the current quarter and is seeing traction in the power
sector.
GAIL's Kochi Mangalore pipeline remains on schedule for June 2019 completion following which
a gradual ramp up is expected to happen in Kochi terminal volumes.
Petronet LNG aims to hit 25-30% utilization at Kochi terminal by the end of FY20 against 10%
currently. FACT has also signed 0.7 mmscmd deal for 300 days, which will also add up.
Dahej's 2.5 mmtpa expansion will be completed by June 2019 and should stabilize by end of
2019. Petronet LNG is working on tie up tolling contract and is also open to bring own gas.
In Sri Lanka, the JV agreement has been submitted. The project would be 2.5 mmtpa FSRU
with USD 300 million in total capex. It aims to go ahead with Bangladesh only on a nomination
basis with sovereign guarantees
For US LNG, Petronet LNG is in talks with stakeholders but nothing has been finalized as yet.
The deal is subject to long term (15-20 years) fixed price gas at less than USD 6 per mmbtu
delivered in India. Different structures are being looked at. There could be investments in a
mega project including upstream, pipelines and liquefaction or it could be just liquefaction.
No take or pay was invoked in Q4FY19. Rasgas contracts will expire in CY27 while Gorgon
contracts in CY35.
Total capex for FY19 (including Rs 200 crore for two tanks' expansion at the Dahej plant) is Rs
600 crore.
Dividend payout would depend on capex commitments going forward, including overseas
capex.
KEI Industries : Expects FY 20 net sales to grow 17-18%

KEI Industries held its conference call on 22 May 2019 and was addressed by Anil Gupta
Chairman and MD
OPM in Mar 19 quarter improved due to better product mix and higher volumes.
Institutional sales domestic stood at Rs 492 crore up by 14% in Mar 19 quarter. Institutional
export sales stood at Rs 133 crore up by 34% YoY. So overall institutional sales stood at Rs
625 crore in Mar 19 quarter up by 18% YoY.
Retail sales through dealer network have seen an increase of around 29% growth to Rs 406
crore in Mar 19 quarter on YoY basis. Various major brand building exercises and large number
of electrician meets resulted in good growth in dealer distribution Sales
Lot of branding activities in FY 19 including IPL. Rs 15 crore is towards promotional expense
every year.
EHV sales in Mar 19 quarter stood at Rs 94 crore up by 81% YoY.
EPC division sales stood at Rs 247 crore as compared to Rs 187 crore a growth of 32% YoY.
Volume growth in cables business in FY 19 stood at 18% YoY.
In FY 19, institutional sales stood at Rs 1822 crore up by 17% YoY.
Retail sales through dealer network have seen an increase of around 43% growth to Rs 1400
crore in FY 19. Sales through dealer/distribution channel contribute approx. 33% of total Sales
as against 28% last year. Out of this around 5% Sales goes through dealer indirectly.
Present dealer's network stood at 1450 active dealers as on Mar 19 with 50 new dealers added
in Mar 19 quarter.
EPC division sales stood at Rs 730 crore in FY 19, up by 12% YoY.
Interest costs increased due to increase in bank guarantee charges by Rs 17 crore. Bank
guarantees are given for next 5-6 years for EPC projects.
The company has total order book of around Rs 4707 crore as on Mar 19 of which EPC division
stood at Rs 2395 crore, and cables order books stood at Rs 996 crore. Exports order stands at
Rs 745 crore and EHV is around Rs 684 crore. Plus company is in L1 in Rs 113 crore as on
date. The focus is on execution.
Expect FY 20 net sales growth of 17-18%
Completed the expansion in Pathredi plant in FY 19. Some more capex of around Rs 10-12
crore in Pathredi which will result in improvement in production capacity by Rs 100 crore.
In Silvassa, company has bought Land & Building with investment of Rs. 16 Crore for expansion
of House Wires cables capacity. In 1st Phase, Company will spend approx. Rs. 45 Crore and
will be operational by July 2019 and 2nd phase the company will spend around Rs 50 crore and
will commence by Mar 2020. Expecting 30% growth in house wire segment. Currently house
wire sales is around Rs 800 crore.
Net debt stands at around Rs 599 crore. No plan to increase further debt. No buyers credit as
compared to Rs 137 crore in FY 18. Now the company has shifted to LC.
Total debt will be maintained despite the capex in the coming years.
Expects interest cost to remain at current levels of FY 19 despite increase in turnover.
Expects to margins to improve in FY 20 due to higher sales from EHV cables and EPC division.
Expects growth momentum to continue.
Tenders are coming on regular basis. Business environment continue to be strong.
Working capital cycle will improve further.
All projects in EPC are funded project and do not expect any delays due to elections or any
other reasons for payments.
Bajaj Electricals : EPC sales are difficult to project in FY

20 and lot depends upon Saubhagya scheme
The company held its conference call on 22 May 2019 and was addressed by Mr. Shekhar Bajaj
CMD
Key Highlights
The current order book in EPC segment stands at Rs. 4844 crore comprising of Rs. 700 Crore
for Transmission Line Towers; Rs. 4032 Crore for Power Distribution; and Rs. 112 crore for
Illumination Projects.
Margins in UP order are lower than other EPC orders. It was more of volume business. However
management has assured that it will not take any orders with lower margins.
The company has not increased prices may be some 1-2% on some brands. Higher commodity
prices are coming down and margins will further improve in the segment.
Growth in consumer product is strong, lower fixed costs and economies of scale benefits have
led to the benefits.
The company had borrowed money from the banks to meet the working capital requirements.
The company had to incur additional cost like labour, hiring equipments etc costs were higher in
EPC division. On other hand company decided to book the orders related to UP project
conservatively and hence complete billing was not done. So lower sales and higher costs
affected margins and sales in Mar 19 quarter.
Also working capital requirement got increased due to higher execution of UP project which was
eventually not booked and billed in Mar19 quarter.
The company currently is not seeing any cash crunch situation but has an enabling resolution of
raising Rs 600 crore for any future working capital requirement if any for UP order.
FY 19 was last year for Saubhagya scheme for rural electrician. With Government expected to
remain same the scheme should revive. However the execution of the UP project which also
falls under this scheme will be uncertain. There will be quarterly variance in sales and margins
depending upon billing every quarter.
So EPC sales are difficult to project in FY 20. Lot depends upon when Saubhagya scheme
starts once again which will lead to execution pick up.
Consumer Division continued to show strong momentum. Expects the segment to register
10-12% growth in FY 20 with better margins.
Product wise, lighting should see a 10% growth but fans and appliances should see 18-20%
growth in FY 20.
The company continued to gain market share in consumer durable segment. Expects to grow
better than industry in FY 20.
Crompton Greaves Consumer Electricals : Targets

double digit growth in bottom-line for lighting business in
FY20
Crompton Greaves Consumer Electricals hosted a conference call on May 22, 2019. In the
conference call the company was represented by Shantanu Khosla, Managing Director Mr.
Mathew Job, Chief Executive Officer Mr. Sandeep Batra, Chief Financial Officer Mr. Yeshwant
Rege, Vice President, Strategy and Financial Planning.
ECD segment has shown good results and the company's ongoing efforts in driving innovation
with the introduction of ‘Aura Fluidic' and ‘Air Buddy' have helped continue the momentum. In
Lighting, the introduction of ‘Anti-Bac' has met with very good response and the core LED
segment continues to post healthy volume growth.
Pumps continued its strong performance in Q4FY19 as well showing encouraging double digit
volume growth especially underdeveloped market for pumps for the company such as south.
Agri segment grew by 20% for the quarter.
Lighting – Top line was flat but volume are growing strongly. But LED net of EESL business
grew by 11% in value and 35% in volume. Fully recovered margin with cost optimisation and
design development initiatives. Lighting margin for the quarter is 11%. Price erosion in lighting
has moderated especially B2C segment of the market where prices have flattened. But B2B
segment continue to see price pressure.
The share of original lighting products/business has become smaller with now LED accounting
about 85% of the lighting business.
The company has now appointed a national level manager and separate sales team for B2B
lighting business to deal with customers and to operate on more consistent basis to track and
fulfil the needs of key customers.
Antibacterial light introduced in Q3fy19 end has got good initial response and the company is
ramping up advertising. This antibacterial light kills upto 85% of bacteria. The company has
priced this product at 15% premium on the bulb to the normal bulb.
Lighting margin - B2c and b2 b are of same level of margin and that is likely to continue. Of b2C
lighting business about 30% is bulbs and 70% is fixtures (patterns and panels). Both patterns
and panels are of equal proportion of fixture business.
For FY19 EESL revenue is about Rs 140 crore is revenue from EESL.
Targeting double digit growth on bottom-line in lightings in FY20. Current order book for EESL is
about Rs 90 crore.
Go to market – continue to reap benefits with greater availability and business from dealers.
Overall to market leadership position in ECD business.
The company has written back an amount of Rs 28.45 crore in respect of an earlier assessment
year based on an assessment order received during the year ended March 31, 2019. And the
same is netted off from current tax expense for the quarter and year ended March 31, 2019. The
company has not consumed a total tax benefit of Rs 250 crore for fiscal FY15-16, 16-17, 17-18
and 18-19. The company during the demerger has provided Rs 180 crore against allowable
deductions. Now the company on advice of experts and completion of assessment have
recognized credit of refund.
Appliances business of the company with a product line of Geycers, coolers and small
appliances his having only small share in total market.
ECD - 16% growth, for full year. Each sub category plus or minus one percent. Geycer seasonal
slow down. No general slow down. In the ECD product category there is no EMI business and
thus no impact.
Part of slowdown is less rural dependent.
The company is looking at inorganic growth and scans for right opportunities.
Cummins India : Expects 12-15% domestic sales growth

and flat export growth for FY 20
May 24, 2019 03:01 PM | Source: capitalmarket.comThe company held its conference call on 25
May 2019 and was addressed by Mr Sandeep Sinha MD
Key Highlights
Exports grew by around 15% in FY 19. Industrials specially construction and railways did well
for the company.
Expects domestic growth of around 12-15% to continue in FY 20 as well. The company was
able to gain market share as well in domestic market.
Within domestic, Industrial segment sales was around Rs 350, Power gen Rs 400 crore and
Distribution segment sales was at Rs 330 crore for the Mar 19 quarter. On an annual basis,
power gen was around Rs 1500 crore, industrial was around Rs 1350 crore and distribution was
around Rs 900 crore.
Railways have grown significantly and strong traction exists. Government efforts on infra sector
is also helping the overall growth.
The recent mandate of government will play a big boost on domestic infra spending.
Exports grew by around 5% in FY 19. No clarity on exports outlook. Difficult to give outlook but
generally looks flat for FY 20.
30% tax rate is the new normal tax rate of the company. Company's SEZ plants' 100%
exemption got over and moved to 50% exemption for next 5 years.
In Exports Africa did well but difficult to determine the trend. Middle East is still struggling.
Opportunities in Latin America remains strong. EU is another market for the company. So far
very less exports to US market.
Gross margins was affected in Mar 19 quarter due to product mix, some high commodity cost
inventory and high overhead costs. Expects annual margins of FY 19 to improve slightly in FY
20 and product mix to improve.
On pricing action some increases were made.
Capex of around Rs 400 crore in FY 19. Rs 350 crore in FY 20.
Other income includes rental income of Rs 118 crore and around Rs 58 crore of dividend
income for FY 19.
New products, addition of value components on industrial front, higher after market sales and
sale of system solutions will help in increasing margins and drive sales going forward.
The company remains optimistic from medium and long term prospective.
Lot of new products are in the pipeline which will drive the future growth.
Thermax : Expect FY20 margin to be better than FY19
Thermax hosted a conference call on May 23, 2019. In the conference call the company was
represented by Unnikrishnan, MD; Amitaba Chakrovarthi, CFO and Rajendran, CFO designate.
Consolidated order backlog as on March 31, 2019, stood at Rs 5370 crore, 6% lower than Rs
5689 crore as end of last fiscal ended March 31, 2018. Of the Rs 5370 order backlog energy
orders were Rs 4793 crore [ Domestic Rs 2973 crore; International Rs 1820 crore]; Environment
orders were Rs 525 crore [ Domestic Rs 471 crore; International Rs 54 crore] and Chemical
orders were Rs 52 crore [ Domestic Rs 16 crore; International Rs 36 crore].
Order intake for the fiscal was not to the expectation of the company. Consolidated order intake
for the year was Rs 5633 crore, 12% lower than Rs 6380 crore in 2017-18. Last year's figure
comprised some sizeable orders including a single large export order of Rs 1000 crore, a trend
not witnessed during the current fiscal.
The consolidated order intake for the quarter ended March 2019 stood down at Rs 1157 crore
(Rs 1599 crore in Q4FY18) while that of Thermax standalone was Rs 717 crore (Rs 1256 crore
in Q4FY18). Orders finalisation has got postponed and the sentiment might improve in coming
quarter.
Large Industrial capex virtually slowed down in the last 4-5 months. The cement and steel
orders accounted for about 14% each of FY19 order intake with order from cement largely being
Waste Heat Recovery Systems (WHRS) and later being from sponge iron. While cement sector
is expected to finalise order especially orders for WHRS rather than captive power plant, and
that of steel not much of action is expected barring sponge iron as the industry is still in
consolidation phase. So cement is expected to continue to invest. In O&G two refinery orders
are overdue and that will happen in H2 of FY20. In power sector two tenders/orders including
one tender of NTPC is expected soon. FGD is least priority for SEBs, who is already in financial
strain as it is not going to add any capacity. Expect FGD orders worth Rs 1000 crore to get
finalised in FY20. However sectors such as food processing, pharma, Chemicals and auto are
expected to carry on investment in current fiscal.
On April 11, 2019, the company acquired the entire stake held by the joint venture partners,
namely MUTARES HOLDING-24 AG, Germany and BALCKE-DUERR GmbH, Germany in
Thermax SPX Energy Technologies Limited (TSPX). Subsequent to the acquisition, TSPX has
now become a wholly owned subsidiary of Thermax.
Margin of Energy declined to 6.7% in FY19 from 8.1% in FY18. There is no negativity due to
consolidation of TBW figures but largely on account of Danstoker and 2 orders in power division
which had a drag on profitability.
Danstoker Group comprising two business i.e. Boiler Works, which focuses on maintenance
services of boilers and ability to execute projects as well as Danstoker's boiler manufacturing
units in Denmark and Poland. The Boiler Works took up three EPC projects where the margin
was good but on execution it could not retail it leading to erosion in profitability even though its
service business is doing well. Now Boiler Work's project business was completely closed. On
Danstoker front the cost of manufacturing in Denmark is costlier compared to its Poland Unit,
where the cost of manufacturing is 1/3rd of that of Denmark. So the company is gradually shifting
its manufacturing operations to Poland.
In case of Environment the growth was driven by Air pollution and water. The Chemical margin
though dropped in FY19 is expected to improve in FY20.
The company has taken charge of TBWES manufacturing facility and started manufacturing at
it. It has completed recruitment of workmen and the plant is currently running at fair capacity.
Dangote – the company has recognised revenue to the tune of 50% of order value so far. The
company has completed hydraulic test in case of 14 packages and shipmen is under way.
Shipment is avoided in the monsoon season especially across high sea in case of large size
engineering cargo.
The company discontinued China manufacturing and progressively closing it.
Challenging project orders are now 100% completed. Moreover the stand products orders will
help Danstoker to return to profit.
The company expect intake of normal orders during FY20 to be at the same level of FY19.
Conservatively, considering lower opening order book for current fiscal, the company expects
low single digit sales growth for FY20 with some improvement in margin.
IndusInd Bank : Expects credit cost at 60 bps, loan growth at

mid-twenties in FY2020
IndusInd Bank conducted an analyst meet on 22 May 2019 to discuss the financial performance
for the quarter March 2019 and prospects of the bank. Romesh Sobti - Managing Director and
CEO along with his colleagues addressed the meeting:
Highlights:
The bank has all approval in place for acquisition of Bharat Financial Inclusion, while the NCLT
approval is pending and the court order is reserved which may be received once the court
reopens on 27 May 2019
The bank has maintained strong loan growth of 29% which is well-diversified across the sectors.
Within the loan book. The corporate segment has increased 20%, vehicle loan Book 26% and
non-vehicle book 27%.
The loan growth is matched by similar level of deposit growth, while the bank has maintained
healthy CASA deposit ratio. The bank has continued to see strong inflows of retail term deposits
of Rs 5000-6000 crore for last three straight quarters. The bank expects to acquire Rs 35000
crore to Rs 40000 crore of retail term deposits in FY2020.
The overall non-interest income of the bank has increased at strong pace of 29%, with 27%
growth in core fee income for the quarter ended March 2019.
The SMA 1 category loan book of the bank stood at 0.32% of the overall loan book, while SMA
2 category loan book stood at 0.34%. The SMA 1 and 2 category loan book comprises of 45
accounts.
The SMA category loan book of the bank has declined from Rs 641 crore end March 2019 to Rs
548 crore as per latest available data.
The bank has classified its entire exposure of Rs 3004 crore to IL&FS group as NPA in
Q4FY2019 and made provisions of Rs 1120 crore and also reversed interest income of Rs 153
crore. The bank has made provisions at 75% for exposure to holding company (of Rs 2000
crore) and 25% for operating SPVs (exposure of Rs 1004 crore).
Excluding the impact of provisions for IL&FS exposure, the bank has posted healthy 25%
growth in profit for Q4FY2019 and 24% for FY2019. Excluding IL&FS account, bank has
exhibited decline in its gross NPA ratio to 1.03% and net NPA ratio to 0.48% end March 2019.
The fee income of the bank is well-diversified and sustainable, while half of the income is not
linked to the balance sheet.
The bank has identified exposure of 1.9% of the loan book as stressed exposure, which
includes both funded as well as non funded exposure. The security cover for this stressed
exposure stands at 140% of which 58% is covered by listed shares.
As per the bank sub investment grade exposure is fully collateralized.
The restructured advance book of the bank stood at 0.09% end March 2019.
The bank has continued to add 1 million customers in the quarter ended March 2019. The bank
proposes to raise its branch network to 2000 branches by March 2020
The bank expects to reduce its cost to Income ratio to 42% by end March 2020
The bank expects to maintain fee income growth in mid twenties, while the loan growth is also
expected to be in mid twenties for FY2020.
The bank expects to improve net interest marching 3.85-3.9% by end of 2020, while factoring in
the acquisition of Bharat Financial Inclusion margin would be above 4% mark.
The bank expects to maintain its credit cost 60 bps in FY2020.
With regard to leadership transition, the bank would announce the name of next CEO 6 months
before the expiry of the term of existing CEO.
The bank proposes to improve provision coverage ratio to 60% by March 2020.
PI Industries : Expects tax rate of 23.5% in FY20

PI Industries conducted conference call to discuss the financial results and performance of the
company for the quarter ended March 2019. Mr. Mayank Singhal- Managing Director &
CEO and Mr. Rajnish Sarna- Executive Director of the company addressed the Concall.
Q4FY19 revenues showed 29% improvement YoY, mainly contributed by 39% growth in exports
on account of new products commercialization and ramp up in demand of existing products.
Domestic growth was 4%, momentum was slower in line with subdued uptake post a muted
winter season. The company's line up of branded products continues to perform ahead of
expectations.
FY19 revenues on blended basis showed gains of 25% YoY. This captures the 16% increase in
domestic owing to a better Kharif season and strong 29% gains in exports.
The transition to IND-AS115 has resulted in benefit of Rs 38 crore in revenues for Q4FY19 and
Rs100 crore for FY19.
The global agrochemical industry is currently witnessing a revival. Since CY15, the market was
in midst of a slowdown leading to heavy inventory in the system. Therefore, since CY16,
companies started cutting down their offtake, resulting in inventory levels declining to
reasonable levels. Currently, low inventory levels are pushing further procurement. Further,
there is supply uncertainty for certain products from China, which is helping offtake from India.
Gross margin compression during the quarter was due to higher raw material costs amid China
factor. However, the company expects margin improvement of 50-100bps for FY20 compared
with 21% in FY19
PI was able to convert some of its long-term contracts previously, while few are in the
negotiation stage. Exports order book currently stands at USD1.35 billion. The company has
commenced a multi-purpose plant worth Rs 200 crore. The second plant will be commissioned
in Q1FY20 (for MMH plant and backward integration), while another plant by FY21. This will
entail a capex of Rs 400-450 crore for FY20.
The average net working capital improved from 108 days to 101 days. The year end net working
capital remained higher at 26% of net sales (v/s 24% in FY18) due to higher sales in 4QFY19.
The order book in CSM business remains at USD 1.35 billion.
The company expects topline growth of 20% in its domestic business. This guidance comes in
the wake of unpredictable rainfall.
PI has launched two new molecules in FY19. With two-three products in the pipeline, the
company expects new products to spearhead next leg of growth.
PI has still not received approval for the wheat herbicide from Central Insecticide Board &
Registration. The company is planning to launch two-three new products in FY20.
FY19 tax rate came in at 23.7%, an increase of 300bp due to change in the share of business
mix. The company expects tax rate of 23.5% in FY20
Indian Oil : Expects GRMs to be in line with Singapore

benchmark
Indian oil held a conference call to discuss the results for the quarter ended March 2019 and
way forward. Mr. S K Gupta ED (Corporate Finance) and Mr. Matthew Thomas – CGM
(Corporate Treasury) of the company addressed the call.
Indian Oil's product sales volumes, including exports, were 22.638 million tonne. The refining
throughput was 17.351 million tonne in Q4 18-19 and the throughput of the Corporation's
countrywide pipelines network was 21.227 million tonne during the same period.
Total GRM for FY19 at USD 5.4 per barrel compared to USD 8.4 per barrel in FY18. Normalized
GRM is USD 4.8 per barrel for FY19 compared to USD 7.37 per barrel for FY18. GRM for
Q4FY19 at USD 4.09per barrel and normalized GRM at USD 3.04 per barrel.
IOCL expects GRMs to be in line with Singapore benchmark as has been the case in Q4 but
physical performance will be strong going ahead.
Indian oil has stopped Iran oil purchase but signed up for optional volumes with other countries
including the US making up for it. There should be only marginal impact on GRMs from the
replacement of Iran crude.
Paradip refinery GRM was USD 4.46 per barrel in FY19 with 97% capacity utilization. Heavy
crude share was 21% but company is planning to ramp it up to 32-35% in FY20. However,
heavy crude appetite depends on differential economics; hence, will take a call based on them.
High sulfur crude share is 55-56% for IOCL as a whole. The company does not expect any
material change but depends on the differentials in this case also.
Haldia distillate yield improvement project (coker) was completed recently. This should raise the
distillate yield of the refinery by 4% and high sulfur crude share from 60% to 80%. Haldia
capacity will rise from 7.5 to 8.5 mmtpa.
BS VI-related shutdowns are planned from Q2 FY20-end until Q4 FY20. About 88% physical
progress in the Rs 16500 crore BS VI project is achieved and it should be completed before the
Apr'20 deadline. BS VI fuel realization will be based on international prices, and nothing
incremental will be there.
The land for the West Coast refinery was de-notified in Ratnagiri but new land has been
identified in Raigad wherein notification and the land acquisition is going on currently, while
refinery configuration is in advanced stage of finalization. No major capex to materialize from
this project in the next couple of years.
Capex in FY19 was Rs 26500 crore which included Rs 7100 crore in refining (incl. Rs 4000
crore of BS VI), Rs 3500 crore in pipeline, Rs 7700 crore in marketing, Rs 3000 crore in
E&P, Rs15 crore in petchem, and Rs 30 crore in Others including maintenance.
Total debt was at Rs 85300 crore in FY19 compared to Rs 64000 crore in FY18 due to increase
in government outstanding, increase in capex requirement, one-time tax payment disbursement
for Mathura refinery and mark-to-market foreign exchange fluctuations.
JK Cement : Capacity expansion is on track

Expects 7-8% volume growth for the industry in FY20
The company has conducted a conference call on 21 May 2019 to discuss the financial
performance for the fourth quarter ended March 2019, FY19, and way forward. The call was
addressed by Mr A. K. Saraogi, President (Corporate Affairs) & CFO and Mr Prashant
Seth, VP (Commercial), of the company.
Key Points from the discussion:
The company reported 55% rise in net profit to Rs 150 crore for the Q4FY19 on the back of 13%
jump in revenue to Rs 1492 crore. EBITDA margin improved 510 bps to 19% in Q4FY9. For the
FY19, the company's net profit declined 5% to Rs 325 crore despite 5% jump in revenue from
operation to Rs 4981 crore. EBITDA margin fell 30 bps to 16.47%. The board recommended a
dividend of Rs 10 per equity share for FY19. The company has also decided to raise up to Rs
500 crore by issue of secured/redeemable non-convertible debentures in one of more
series/tranches.
The Company trade and non-trade mix stood at 68:32 in Q4FY19. The Company is judiciously
trying to increase the company's presence in the trade segment
The Company cement & clinker sales volume increased 5% to 98.51 lakh tone in FY19.
Grey cement volume gain was because of the increased push in non-trade segment.
The Company has saved Rs 50/tonne in logistics after initiative suggested by the appointed
consultant and expects further saving to the tune of Rs 20-25/tonne in subsequent quarters. The
Company higher usage of AFR (10% in FY19) resulted in Rs 25 crore saving in FY19. The
Company targets a meaningful Rs 60-70 crore annual savings by modification in power units
and thereby energy savings and earn incentives.
The company has taken Rs 35-40/bag of price hikes in the first two months of Q1FY20. The
company demand for cement was weak in the respective months due to pre-election lull and
shortage of labor. The company witnessed a 15-20% fall in sales in the month of elections. The
company expects 7-8% volume growth for the industry in FY2020 and expects demand to pick
up post elections.
The UAE operation of the Company has sold 0.25 mt of cement and 0.1 mt of clinker in CY18.
Revenue, EBITDA and PAT in CY18 came at AED138 million, AED4.7 million and net loss
AED37 million, respectively. For Q1CY19, Cement Production: 0.07 mt; Clinker production;
0.123 mt; Cement sales volume: 0.063 mt and Clinker sales volume: 0.048. EBITDA stood at
AED3.3 million.
The Company work for 7,500 TPD clinker production line in Mangrol and Split Grinding Units at
Aligarh & Balsinor is going on in full swing. Environment clearance for Balasinor unit
obtained in Mar'19. The Company 1 MTPA cement grinding capacity each at Nimbahera and
Mangrol is in advance stage, which is likely to commission in June-July 2019. The Company has
already spent ~Rs550 crore in FY19 out of total capex of Rs 2000 crore, while it will incur Rs
1200 crore capex in FY20 and the balance is to be incurred in FY21. Notably, the proposed
outlay does not include annual maintenance capex of Rs100 crore.
The Company has already started working on for next line of expansion in the Central region. It
is currently in the process of converting 2 prospecting license (PL) into mining lease in Madhya
Pradesh. It has already acquired 250 acres of mining area and 300 acres of land for plants till
date. It has also applied for Environment Clearance for Kakra (MP) mining lease having an
estimated limestone reserve of >400 mt. The expansion would be in multiple phases and will
take 18-20 months from the zero date post-board approval.
The Company also has plans to debottleneck kiln number 3 in future by replacing the
pre-heater, raw mill and coal mill. This would increase the clinker output from 5,000 tons to
6,000 tons per day, reduce power consumption by 12 units of power and consume 40-50
kcal/kg lower fuel. The planned investment is Rs 325 crore. The company shall also be eligible
to tax benefits under SGST scheme in the state of Rajasthan where the cement is sold. The
project shall be completed by FY2021 and shall have annual benefits of Rs 60-70 crore along
with additional 1,000 tons of cement volumes a month. Kiln number 3 will be shut for ~45-60
days during the upgradation.
Bharat Financial Inclusion : Focus to continue on customer

acquisition and retention
Bharat Financial Inclusion conducted a conference call on 22 May 2019 to discuss its financial
results for the quarter ended March 2019. MR Rao, MD&CEO of the company addressed
the call:
Highlights:
The company has registered strong loan growth of 38% to Rs 17394 crore for FY19 with robust
customer addition of 39.9 lakh in FY19 contributing significantly to loan growth. The focus of the
company would remain on customer acquisition and retention.
The company has added 9.6 lakh customers in Q4FY19 against 9.2 lakh customers in Q3FY19.
In the months of April 2019, the company has continued healthy customer acquisition with the
customer addition of 3 lakh.
The loan disbursements surged 45% to Rs 26699 crore in FY19. The disbursements increased
14% yoy to Rs 6568 crore in Q4FY19, but declined 4% qoq from Rs 6822 crore in Q3FY19 as
the company has deliberately slowed down disbursements in the state of Odisha and West
Bengal due to signs of overheating and tightened lending policy with the limit of two lenders and
ticket size of Rs 60 thousand.
The collection efficiency of the company has remained healthy at 99.7% for loans disbursed
between 1 January 2017 and 31 March 2019, amounting to Rs 49073 crore.
The company has exposure of 0.06% to cycle affected area of Odisha.
The cost to income rose marginally to 35.9% in Q4FY19 compared with 34.4% in Q3FY19, due
to one off charges relating to pre-payment of borrowing and minimum wage changes etc.
Marginal cost of borrowings stood at 9.5% in Q4FY19 while weighted average cost of borrowing
was at 9.8%.
The Company had a net NPA of 0.2% in Q4FY19.
The capital adequacy was strong at 49.5% end March 2019 with the large assignment of the
loan portfolio.
Cash and cash equivalent stood at Rs 1562 crore end March 2019.
The company has completed five assignment transactions, amounting to Rs 5168 crore in
Q4FY19 with Indusind Bank looking at impending merger.
The company has network of 1100 Retail Distribution and Service Points, which it proposes to
scale up to 15000 by year end.
The company expects the full tax rate to apply from FY2020.
The company has finance 10000 two-wheelers in FY2019, while expects to have capacity to
finance 30000 two-wheelers in FY2020.

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Bajaj Consumer Care : For hair oil segment, rural growth

In interaction with Mr. Amit Kumat MD of the company on 9 April 2019

TCS : In FY19, the company crossed a major

Tata Metaliks : Demand for DI Pipes in Q1 FY'20 is likely

DCB Bank : Aims to improve RoAs to 1.25-1.3% and RoEs to

Alicon Castalloy : Enhanced product mix drove

HDFC Bank : NIM improved mainly due to lower

Lux Industries : In 2020 the company hopes to

Lux Industries held its conference call on 23 April 2019.

TRF : Continue to explore options for

Bharti Infratel : Despite major co-location exits

Maruti Suzuki : FY 2019 was a challenging year

Au Small Finance Bank : Expects to continue to maintain

ICICI Securities : New initiatives to help improve productivity

Indiabulls Housing Finance : Back to normalcy, expects

Axis Bank : Expects the domestic loan book of the Bank

Kalyani Forge : The company is now taking orders of only

In interaction with Rohini Kalyani MD and Chairperson on 25 April 2019

Rallis India : Focusing on strengthening its product

Apcotex Industries : Margins should improve and aims

Foseco India : Expects a gradual recovery in sales and

ICICI Prudential Life Insurance Company : Aims to double

Muthoot Capital Services : Targets disbursement growth of

Tata Steel : Domestic steel demand softened during the

UltraTech Cement : Government's trust on infrastructure

Expects capex of Rs 1500-2000 crore for FY20

HDFC Life Insurance : Expects to maintain individual APE

HDFC Asset Management Company : Operating profit

Persistent Systems : Wants to use the current cash for

Carborundum Universal : Expect consolidated sales in

Tata Elxsi : Experiencing slowdown on the auto side

Godrej Properties : Focus for FY20 is to monetize all

Reliance Nippon Life Asset Management : To pass on most

Kotak Mahindra Bank : Expect credit cost to remain

Britannia India : Expecting double digit volume growth in

Cholamandalam Investment and Finance Company conducted a conference call on 30 April

Castrol India : Expanding Silvassa plant

L&T Finance Holdings : Aims to consistently deliver

Dabur India : Going forward international business will

Hindustan Zinc : Expects production costs for FY20 to be

Liquidity and investment

Blue Star : Price increase, cost rationalization and

Godrej Consumer Products : Expects to come back

Hindustan Uniliver : Short term demand looks soft,

Bandhan Bank : Cost-to-income ratio lowest in banking

Everest Industries : Expects around 10% growth in both

Tata Chemicals: Plans to get into Lithium ion business

Marico : Aims to build Healthy Foods, Premium Hair

Visaka Industries : Margins are expected to improve in FY

Mahindra CIE Automotive : Will continue to invest in

Elantas Beck India : There will be growth but difficult to

Supreme Industries : For FY 20, expects to attain

ABB India : Base orders up 17% in Q1CY2019

Mas Financial Services : Expects loan growth of 20-25%

KEC International : Expect sales growth of 15-20% in

Essel Propack : India business should come back

Mahindra Logistics : Non M&M SCM business growth will

ICICI Bank : Expects credit cost to be closer normalised level

Aditya Birla Capital : Retail and SME portfolio share to

Vedanta : Expects capex of US$1.4 billion for FY20

Hindustan Sanitaryware & Industries (HSIL) : Expects volume

Voltas : Room AC market sees intense competition

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