Dec 2017 - narnolia.com Summary_Q2FY18_Part 2.pdf · Dec 2017 Summary of management concall...

Dec 2017

Summary of management concall attended by our Analysts post Q2FY18 earnings

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Allcargo Logistics Ltd …………………………………………………….3 I India Oil Corporation Ltd……………………………………………………………………….….3 II

Apollo Tyres Ltd ………………………………………………..3 I Indusind Bank Ltd………………………………………………………………...3 II

Ashoka Buildcon Ltd ………………………………………4 I Inox Ltd …………………………………………………………………………………4 II

Ashok Leyland Ltd ……………………………. 4 I Infosys Ltd…………………………………………………………………...………….4 II

Aurobindo Pharma Ltd………………………………………………………………..5 I Insecticides (India) Ltd………………………………………….……………...5 II

Axis Bank Ltd………………………………………………………..5 I IRB Infrastructure Developers …………………………………………5 II

Bajaj Auto Ltd ……………………………………………...6 I Jagran Prakashan Ltd……………………………………………………..6 II

Bajaj Corp Ltd………………………………………………..6 I Jammu & Kashmir Bank Ltd ……………………………………………………………6 II

Bajaj Finance Ltd……………………………………………………..7 I Jindal Saw Ltd……………………………………………………………………….7 II

Balrampur Chini Mills Ltd…………………………………………….7 I Jkumar Infraprojects Ltd……………………………………………………….7 II

Bharat Petroleum Corporation Ltd………………………………….8 I Jubilant Foodwork Ltd………………………………………………………....8 II

Biocon Ltd………………………………………………………….8 I Joythy Laboratories Ltd…………………………………………………………...…8 II

Britania Industries Ltd………………………………………...9 I KEC Ltd………………………………………………………………………….…….9 II

Cadila Healtcare Ltd……………………………………………….9 I KNR Constructions Ltd ……………………………………………………………...9 II

CAN FIN HOMES LTD …………………………………………..10 I L&T Finance Holdings…………………………………………………………………..10 II

CEAT Ltd……………………………………………………………………....10 I LIC Housing Finance Ltd………………………………………………………..10 II

Century Plyboards (India) Ltd…………………………………..11 I Lupin Ltd ………………………………………………………………………………..11 II

Cipla Ltd…………………………………………………………..11 I Mahanagar Gas Ltd …………………………………………………………………...11 II

City Union Bank Ltd ……………………………...…………….12 I Mahindra & Mahindra Ltd …………………………………………………………..12 II

Cyient Ltd…………………………..………………………….12 I Mahindra & Mahindra Financial Services Ltd……………………....12 II

Dabur India Ltd…………………………….……………… 13 I Marico Ltd …………………………………………………………………………....13 II

DBCORP Ltd…………………………………..…………………13 I Maruti Suzuki India Ltd ………………………………………………………....13 II

DCB Bank Ltd……………………………………..…………….14 I Motherson Sumi Systems Ltd ……………………………….…………………………...14 II

DCM Shriram Ltd…………………………………..………….14 I Parag Milk Foods Ltd……………………………………………………….14 II

Deep Industries Ltd………………………………………..15 I Persistent Systems Ltd …………………………….……………………………....15 II

Dewan Housing Finance Co. Ltd.…………………………...15 I Petronet LNG Ltd ………………………………………………………………...15 II

Dhanuka Agritech Ltd………………………..………………..16 I PI Industries Ltd ………………………………………..………………………...16 II

Dilip Buildcon Ltd……………………………….…………………16 I PNB Housing Finance Ltd………………………………………………………………..16 II

Dishman Pharma Ltd…………………………..…………………17 I PNC Infratech Ltd ………………………………………………………17 II

Drreddy Ltd…………………………………..……………………17 I Ratnamani Metals & Tubes Ltd ………………………………………………18 II

Eicher Motors Ltd………………………………….…………….18 I RBL Bank Ltd …………………………………………………………………………..19 II

EID Parry ( India) Ltd………………………………..…………18 I Reliance Capital Ltd…………………………………………………………..…19 II

Emami Ltd……………………………..………………………19 I Repco Home Finance Ltd…………………………………………...…………………..20 II

Equitas Holding Ltd……………………………………..……..19 I Sadbhav Engineering Ltd ……………………………………………………....20 II

Escorts Ltd…………………………………………...……...20 I Shriram City Union Finance Ltd …………………………………………..……….21 II

Federal Bank Ltd……………………………………………..….20 I Shriram Transport Finance Co. Ltd………………………………………….21 II

GAIL (India) Ltd…………………………………………………………...21 I Sonata Software Ltd ……………………………….……………………………......22 II

Glenmark Pharmaceuticals Ltd……………………...21 I Srikalahasthi Pipes Ltd.………………………………………………..22 II

Godrej Consumer Products Ltd…………………….....22 I Sun Pharmaceuticals Industries Ltd…………………………..23 II

Granules India Ltd………………………………..….. 22 I Syndicate Bank ……………………………………...……………………………..23 II

HDFC Bank Ltd……………………………………………...……..23 I Tata Consultancy Services ………………………………………………....24 II

Hero MotoCorp Ltd…………………………………………….…23 I Tech Mahindra Ltd …………………………………………………………....24 II

Hindalco ……………………………………………………….…24 I Titan Company Ltd …………………………………………………………..…25 II

Hindustan Media Ventures Ltd……………………………25 I Torrent Pharmaceuticals Ltd ……………………………………….………..25 II

Hindpetro ………………………………………………...…..26 I TV Motor Company Ltd …………………………………………...……26 II

Hindustan Unilever Ltd…………………………………….....26 I Ujjivan Financial Services ……………………………………………26 II

ICICI BANK LTD……………………………………………………………27 I Welpsun Corp Ltd ………………………………………..………………………..27 II

ICICI Prudential Life Insurance ……………………………..27 I Yes Bank Ltd …………………………………...………………………………….27 II

Indiabulls Housing Finance Ltd …………………………………..28 I ZEE Entertainment Enterprises Ltd…………………………………….28 II

Indian Bank ……………………………………………………..………….28 I Zydus Wellness Ltd …………………………………………………..28 II

ContentsCompany Name Company Name

CompanyINDIAN OIL CORPORATION

LTD.

INDUSTRY Oil, Gas & Consumable Fuels

30th Oct 2017 Q2FY18 EARNING CONFERENCE CALL

Management Participants

Chairman

Ashok B

Director

Anish Aggarwal

Our Analyst in the Call

Aditya Gupta

[email protected]

Company IndusInd Bank Ltd

INDUSTRY Commercial Banks



MD & CEO

Mr. Romesh Sobti

CFO

Mr. S.V. Zaregaonkar

COO

Mr. Paul Abraham


Deepak Kumar

[email protected]

♦Capacity utilization at Paradip refinery has reached at 97% in Q2FY18. Profitability is likely to

increase once refinery started processing heavy crude. Refinery can process 40% heavy crude.

♦Pipeline volume has declined due to the planned shutdown of Mathura, Panipat, Barauni

refinery. Shut down is done on account of lower sales in Q2FY18.

♦GRM for the Q2FY18 was USD 7.98/BBL. Normalized GRM for Q2 was USD 7.85/BBL.

♦Corporate loan growth is generally coming acquisition of clients from PSU banks.

♦IIB reduced deposit rate last quarter.

♦Enter into deal with Bharat Financial Inclusion for M&A activity. The deal will margin and

RoA accretive from the day one. It will release capital as bank has 75% RWA on MFI.

♦Government deposit book is 15% of the total deposits against 10-12% a year ago.

♦Corporate yield fall due to re-payment of large on account from cement sector.

♦Client base crossed 10 million.

♦Out of 28 lot cases to NCLT, IIB has 6 accounts with the exposure of Rs 385 Cr. These

accounts are 60% provided. Rs 36 Cr of provisions were provided during the quarter.

♦Capital consumption of 55 bps was due to higher corporate loan growth.

♦One time provision for Kandla port of Rs.300 Cr.

♦Construction of IOC Ennore terminal is around 80% complete and is expected to be

commissioned in mid of Fy19.

♦Expect credit growth to take off from next quarter due to re-stocking.

♦Ranchi-Jharsududa 1069 Km pipeline is fully commissioned in July 2017.

♦GST impact of Rs.300 Cr in Q2, full year guidance ~ Rs.2000 Cr.

♦Distillate yield for the Q2 is 79.4% vs 71.6% in Q1FY18.

♦Fuel loss was 7.19% in Q2FY18.

♦CASA crossed 40% marked to end at 42% mainly on account of maturing of branches,

acquiring Government businesses gaining market share in home market.

♦There has been slightly decline in watchlist of mid and small corporate list.

♦SR book stands at Rs 407 Cr net of book value.

♦70% of branches are atleast 2 year old.

Narnolia Securities Ltd Please refer to the Disclaimers at the end of this Report

mailto:[email protected]


Company Infosys Ltd

INDUSTRY Software & Services



CEO & MD

Mr. Nandan M. Nilekani

COO

Mr. Pravin Rao

CFO

Mr. M. D. Ranganath

President and Deputy COO

MR. Ravi Kumar S

Our analyst in the call

Niharika Ojha

[email protected]

Company INOX LEISURE LTD.

SECTOR Consumer Discretionary

INDUSTRY Media

31st Oct 2017 Q2FY18 EARNING CONFERENCE CALL


CEO

Mr. Alok Tandon

CFO

MR. KAILASH B GUPTA


Niharika Ojha

[email protected]


♦EBIT margin guidance for FY18E at 23-25% was maintained.

♦Five large deals with a TCV of $731 million, both the TCV of deal wins.

♦In capital allocation policy several steps were taken during the quarter the board approved the

buyback of equity shares of the company amounting to INR 13,000 crores, approximately

US$2billion.

♦Focusing on integration of product and service platform. Reskilling and reinvestment is big

challenge.

♦Expanding local hire,7000 people hiring in US.

♦ATP WAS Rs 186 , 1.3% qoq low below the average annual growth.

♦Advertisment revenue improved by 34.7%; on back of rate increase year on year.

♦Other head per screen goes down on account of cost optimisatrion measures and saving due to

GST.

♦Pipeline outlook:10 property and 31 screens for rest of the remaining year.

♦Strong performance in Q3FY18 on back of strong movies in Oct to Dec .

♦Balance sheet gives further diversent if needed, enough cash available on account of property

hold by INOX.

♦Strong momentuem in advertisement & other income will continue.

♦GUIDELINES :Infosys guided for 5.5-6.5% YoY CC growth in FY18E, against ealier

expectation of 6.5%- 8.5% guidance.

♦Post 2QFY18, Infosys narrowed its guidance range to5.5-6.5% YoY CC. This implies 3QFY18

& 4QFY18 CC revenue growth will be soften than expected.

♦Operational efficiency parameters like utilization percent, onsite mix percent, revenue

productivity per employee, onsite employee cost as percentage of revenue, total

employee cost as percentage of revenue, leading to a healthy and stable operating

margin.

♦Manufacturing vertical is seeing some in-sourcing and cost optimization initiatives by a

few clients. There is some pickup in activity in ERP space, driven by M&A in the sector

in the last 12 to 18 months. High-tech companies are changing their business models to

capture new sources of revenue.

♦Despite indifferent content flow, 2QFY18 saw good growth in Revenue.



Company Insecticides (India) Ltd

INDUSTRY Agrochemicals

21st Nov 2017 Q2FY18 EARNING CONFERENCE CALL


Chairman

Mr.Hari Chand Agarwal

MD

Mr.Rajesh Agarwal


Ritika Jalan

[email protected]

CompanyIRB Infrastructure Developers

Ltd.

INDUSTRY Construction & Engineering

8th Nov 2017 Q2FY18 EARNING CONFERENCE CALL


CMD

Mr.Virendra Mhaiskar

GROUP CFO

Mr.Anil Yadav

GROUP CS

Mr. Mehul N Patel


Sandip Jabuani

[email protected]


♦IRB is in advance stage to achieve financial closure on Kishangarh Gulabpur road project and

expects to achieve in month time.

♦IRB Pathankot transferred to IRB InvIT trust on 28th Sep 2017 at 1.3x Book value.

♦Debt to equity improved to 1.7x.

♦Kaithal Rajasthan has achieved PCOD and start tolling. Current toll collection is 18 lakh/day

and it will go to 28 lakh/day post full COD.

♦IRB has started toll collection on Udaipur Gujarat and Gulabpura under construction projects

in Rajasthan and current toll collection is 454 lakh/day and 60 lakh/day respectively.

♦Lander is agree with company and reduce cost to debt to 9.75% from 11.25% on Ahemdabad

Vadodara project.

♦Ahemdabad Vadodara continues to face traffic diversion issue to adjoining toll free state

highways.

♦ Cash loss of 70-80 Cr per year on Ahemdabad Vadodara.

♦1.4 lakh Cr out of 5.9 Lakh Cr under Bharatmala will awarded through PPP mode and 34000

Cr of projects via TOT mode.

♦Expect to win 400-500 km of new projects in FY18.

♦Other income was higher due to profit on sale of IRB Pathankot BOT assets.

♦5-6% traffic growth during the quarter and witnessed 7-8% in month of September.

♦As per the management there is regular payment of Debt and company expects to be debt free

by end of FY19.

♦According to the Management coming Rabi season will be very good on the back of rainfall in

October this year.

♦Management has clarified that the government is unlikely to cap the prices of 9(3) molecules as

these as patented products.

♦The management expects to launch 9 new products in 2019.Out of which 5 products will be of

9(3) registrations and 4 products will be of 9(4) registration.

♦Tax rate to remain in the range of 28-30% in FY18 & FY19.

♦CAPEX Guidance of Rs30 Cr for revamp of the plant as per the manufacturing guidelines and

Rs 100Cr n FY19 for setting up a new unit in Dahej.

♦Company targets to launch one more re-engineered off patent product in FY19.



Company Jagran Prakashan Ltd.

INDUSTRY Media



CFO

Mr. R K Agarwal

CS and Compliance Officer

Mr. Amit Jaiswal

Director

Mr. Shailesh Gupta


Rajeev Anand

[email protected]

CompanyJAMMU & KASHMIR BANK

LTD.




Chairman & CEO

Mr. Parvez Ahmed


Anu Gupta

[email protected]

♦Maintain a leadership and highest circulation among its peers as per ABC certification for

circulation.

♦The company has registered some growth in UP as against steep de-growth of other company.

Digital business recorded growth of over 40% in Q2FY18.

♦Radio’s growth was near double digit with increase of market share in top 15 markets.

♦Local advertisement impacted most in Q2FY18. GST roll out is still not settled.

♦Credit cost-55% in Q2Fy18 due to investment made in digital process for customers and planed

to maintain at 51% further.

♦All print players are pushing the circulation, keeping eye on IRS survey.

♦Circulation revenue growth came from Bihar and UP and growth was around ~4.5% in

Q2FY18. Municipal election has come up in UP so governments advertising will be stopped.

Bihar did better than other markets.

♦Education and automobile did well while retail and government remained laggard. Per copy

realization has gone down in Q2FY18. Going forward, company sees improvement in circulation

with the improving per copy realization.

♦Growth momentum-J&K -20-22% and rest of India-15%. Expected overall 18-20% growth in

FY18.


♦Generally government contributes 20-25% of the total revenue of Jagran.

♦Revenue from commercial (national) advertisement grew by 10% in this quarter.

♦News print: there could be 6-7% increase in News print cost this year.

♦Margin will be better than Q2FY18, going ahead.

♦Management is confident of growing its digital business at the CAGR of 20-25% over 5years.

♦PCR to be maintained at 70% for FY18.Plan to bring it to 90% in the next 2-3 years.

♦Increemental lending in J&K bank has increased yield on standard advances book.

♦FY18-19 is expected to be good year for the bank due to resolution to be made in major a/c in

rest of India. Credit cost growth is expected to be 1% in FY19.

♦1 major a/c amounted to Rs.300 cr from south has been downgraded.Sector relates to exporting

the spices. In SMA-2 book there is only 1 restructured account.

♦Breakup of NPL A/c-86%-rest of India and 13%-J&K estate. 59% of the capital raise by the

govt to the bank.♦Capital raise through QIP-600-700cr in FY18.Tier 1 and tier II -500-700cr.Excluding tier

capital there will be about 1200-1500cr capital raise.

♦Sectors other than tourism is doing very well.Ancilliary infrastructure support has been planned

for the tourism sector.

♦Restructured standard amounts to 4000 cr.

♦Bank has 70 % of total deposit from CASA. NIM to be maintained at 5.1%

Company Jindal Saw Ltd.

INDUSTRY Metals/Mining/Minerals

8th Nov 2017


CEO & Whole Time Director

Mr. Neeraj Kumar

Global Head Treasury

Mr. Vinay Gupta


Sagar Sharma

[email protected]

Company JKUMAR INFRAPROJECTS LTD.




Executive Chairman ♦Management is confident to do

revenue of 1800-1900 Cr in FY18

Mr.Jagdishkumar Gupta

CFO

Mr. Arvind Gupta

MD

Mr. Kamal Gupta


Sandip Jabuani

[email protected]


♦Abu Dhabi facility showing improvement with dispatch of 10 KT and has a healthy order book.

♦Company has refinanced its term loan which would give some breather in term of repayment.

Company seems to be entering in to a good phase for coming few quarters.

♦Realization in Ductile Iron segment around Rs.50000/tone and in SS segment in range of

Rs.60000-Rs.80000 per tone. EBITDA per tone of for Pellets around Rs.2000.

♦Pellet production was impacted because of annual maintenance shutdown for 1 week .

♦Out of 3 Lkh tone order tendered by GAIL company got around 60000 tone of orders and

about 3 Lkh tone more order from GAIL would be tendered.

♦Conditions related to demand scenario have improved in USA , Canada and India. Whereas

Middle East and Europe has been flat.

♦Domestic demand in Seamless segment have balance out because of China being blocked out

of it.

♦ONGC order of around 1.5 Lakh to 2 Lakh tone in pipeline.

♦Capex requirement of 250-300 Cr in FY18 and 30-40 Cr in FY19.

♦ Company would start producing 8 to 14 inch dia pipe in seamless segment in a year.

♦Small portion of land is not cleared on JNPT roads and mgt. expect to clear in a month time.

Q2FY18 EARNING CONFERENCE CALL

♦JKIL expected to launch 1st TBM by start of December and 2nd by Mid December

♦Received 670 Cr of mobilization advances from Mumbai metro and expect to receive 137 Cr.

Will bid for Line 5,6 and extension of line 7 in next couple of month.

♦ Lot of metro projects coming up in Mumbai, Delhi, Ahmadabad and Surat. JKIL will focus on

metro projects going ahead.

♦Revenue in H1FY18 : JNPT-140 Cr, Metro line 3- 112 Cr, Metro line 2- 108 Cr, Metro line 7-

50 Cr.

♦ Revenue in H2FY18 : JNPT-285 Cr, Metro line 3 - 480 Cr Metro line 2-220 Cr, Metro line 7-

70 Cr.

♦ Revenue in FY19- JNPT-450 Cr, Metro line 3 -750 Cr Metro line 2-480 Cr, Metro line 7-150

Cr.

♦ Decline in topline because of disruption of GST.

♦Though , margins have improved to 19% from 16% & going forward company expects it would

go up further.

♦Increasing price of Oil ($60-$65) good sign as investment in Oil & Gas transport pipeline picks

up when price of oil is between $65- $75 .

♦Company has a healthy order book of more than 9 Lkh. tones.

♦ Tunneling will start from Q4FY18 on metro line 3.



Company Jubilant Foodworks Ltd.

INDUSTRY Consumer Services



Chairman & Director

Mr.Shyam S. Bhartia

Co-Chairman & Director

Mr. Hari S Bhartia

CEO

Mr. Pratik Pota


Pramila Lakra

[email protected]

Company Jyothy Laboratories Ltd.

INDUSTRYHousehold & Personal

products



Chairman & MD

Mr. MP Ramachandran

Joint MD & CFO

Mr. Ullas Kamath

CEO

Mr. S Raghunandan


Rajeev Anand

[email protected]

♦Company is open for new inorganic opportunities.

♦Management have made a company wide effort to rationalize cost that will be visible in the

Q3FY18 and Q4FY18 and FY19.

♦Mangement is extremely optimistic about their prospects for the future.

♦30 to 40 new Domino's stores will be open in Q3FY18 and Q4FY18 .

♦Management is looking at a rationalized food portfolio what they call as simpler food portfolio,

which allows them to serve food that doesn't require a lot of assembly and lot of labor in the

store.

♦Consumer demand showing sign of pickup in rural.

♦CSD expected to become normal in second half of the year.

♦Henkel has not exercised their option to buy shares.

♦Existing licensing agreement for Pril & Fa will continue.

♦In the case of railways and the airport channel margin will be neutral not dilutivein FY18. 5

Dunkin Donuts store will be open in FY18.

♦Budgeting process kicks off in December and gets finalized between February and March. So

that will be the opportune time for the company to look at FY19 store expansion number.

♦The Noida facility is ready for commercialization and will see the playing out from 3QFY18.

Going to new towns will be the agenda for most H2FY18 and FY19.

♦The total CAPEX spend in H1FY18 was 49 crores.CAPEX for H2FY18 will be 110-115 crores

because of lower store opening guidance.

♦On Dunkin' Donuts, management is focusing on reducing losses and will be reducing losses by

50% in FY18 and breakeven in FY19.

♦Management is taking more effort to touch more customers and drive growth by their new late

night delivery model which has rolled out across multiple cities like Bombay, Gurgaon, Noida,

Bangalore and now launched in Pune.


♦Phiril and Fa will continue to remain with the company as per license agreement which is 2% of

the perpetuity.

♦Expects EBITDA margin for FY18: 16%. The company will keep investing behind the brand.

♦Henkel and Jyothylab are free to work with other partners. Sales of Ujala impacted due to

higher saliency of wholesale and GST.

♦Tax rate for FY18: 15% and for FY19 on wards: 21%.

♦Pricing growth was in range of 3-4% in Q2FY18.

♦The company has got a growth of 19% in month of Oct and company has done strong

activation in this months. Going forward management expects double digit volume growth in

H2FY18.



Company KEC International Ltd.




MD & CEO

Mr.Vimal Kejriwal

CFO

Mr. Vardhan Dharkar

SR. MANAGER IR

Mr. Nitin Kalani


Sandip Jabuani

[email protected]

Company KNR Constructions Ltd.




Chairman

B V Rama Rao

MD

K Narasimha Reddy

Ex. Director & CFO

K Jalandhar Reddy


Sandip Jabuani

[email protected]

♦Revenue from SAE will be flat in FY18 and expect strong traction from FY19 as the order

book start moving. Expect 750-800 Cr revenue from Railway business in FY18.

♦7000 Cr of bids put in Railways and expect it will open in November and December.

♦Management is confident to receive 2000 Cr of new orders.

♦Now railway ministry want to complete 5 years electrification target in 3 years and it is doable.

So it creates huge scope for new work and speedy execution.

♦Revenue would have been up by 5% if we exclude GST impact.

♦SEBs continue to spent on T&D.

♦Maintain 10-15% revenue growth for FY18.

♦Interest cost will not more than 2.75% of sales going ahead.

♦Working capital in cable business stretched due to GST because of high rate.

♦Currently Saudi market is muted in terms of new orders but scope of huge opportunity.

♦Current orders in Civil are good enough considering the initial phase of business and do not

expect huge order inflow in FY18. EBITDA margin will be 10%.

♦Management is bullish on Brazil, PGCIL is planning to enter into Brazilian market and it will

directly benefit KEC.

♦Tax rate for FY18 34%. Current cost of debt is 7-7.5%. Capex requirement of 100-120 Cr on

an average.

♦PGCIL has tied up with UP and Bihar SEBs to execute T&D projects.

♦Change upto 5-10% in commodity prices are already priced in tender quotation.

♦Competition in Railway electrification is lower but higher in civil work.

♦EBITDA margin will be 16-17% in FY18. EBITDA on Hubali Hospet is not as good as other

projects have.

♦Management expects to receive projects related necessary approval on Hubali Hospet in a

month time. Execution in pace will start from Q4FY18.

♦Maintain Revenue guidance of Rs.1700-1800 Cr for FY18 and Rs.2000 Cr for FY19.

♦EBITDA is higher as the lower work through Subcontracting and high margin on couple of

projects which are near completion.

♦KNRCON has submitted bid for K-SHIP project in Karnataka and bid will open in a month

time.


♦Company is evaluating opportunity in River linking projects.

♦Tax rate will be 10% in FY18 and 15% in FY19.

♦Expect lower EBITDA margin in FY19 compared to FY18 as the revenue contribution from

Hubali Hospet will increase.

♦Management is targeting new orders worth of Rs.2500-3000 Cr in FY18, out of which Rs.1000-

1500 Cr of orders through HAM and rest from Road EPC.


Company L&T Finance Holdings.

INDUSTRY Diversified Financial Services



Chairman & MD

Y.M. Deosthalee

CFO

V Subramaniam


Sweta Padhi

[email protected]

Company LIC Housing Finance Ltd.




MD & CEO

Sunita Sharma

CFO & GM risk

Mr. Surinder Mohan

ACM(MD Secretariat & IR

Manager

Mr. Sudipto Sil


Sweta Padhi

[email protected]

♦Incremental cost is 7.23 in Q2FY18 and in H1FY18 is 7.44.

♦GNPA Non Retail is 9.69, total amount 575.96, total A/C was 7, PCR is at 60%.

♦Core home loan spread is 1.5-4.6.

♦Loan growth more than 15%, LAP & Moratgage at 20% and NIM around 2.7

♦144 customer base , 21000Cr loan rewritten at lower rate by 20-30 bps.

♦Sanction mix remained same.

♦UP is growing fast followed by maharastra and gujurat.

♦6000 cr borrowing to be reprised.

♦Disbursement ,Core Home Loan -8483, LAP-1900, Project-600.

♦Home loan ticket size is 19 lakh and sanction is also 19 lakhs.

♦Share of LAP & Project may increase.

♦Largest GNPA A/C is 130-while the lowest is at 25-30Cr.

♦ Interest reversal will be around 6-7 cr.


♦No. of account that is going to change from fixed to floating is 2-3cr.

♦L&T loan growth is around 25%, ROE to improve.

♦Growth is from New microfinance centres opened in Q4 of FY17 and Q1 of FY18.

♦Renewable energy and road re-financing segments are also doing pretty well.

♦Company's fee income is going to increase from PSU bank recapitalisation.

♦5000cr potential problem asset, out of which bulk is from EPC segment, some are from coal &

thermal and 1 is oil and gas related.

♦2 wheeler NPL to slghtly decrease, micro finance NPL is going to increase while farm is going

to decrease.

♦Gross Addition to NPA is 150Cr -Recovery is 27Cr. Overall outstanding is to 30 cr related to

non individual share.

♦Incremental yield in home 8.7-8.8,lap 10.5, builder Is 13.



Company Lupin Ltd.

INDUSTRY Pharmaceuticals



CFO & President

Mr. Ramesh Swaminathan

Chairman

Mr. D B Gupta

Head-M&A, IR

Mr. Alpesh Dalal


Ritika Jalan

[email protected]

Company Mahanagar Gas Ltd

INDUSTRY Gas Utilities-Sub Ind



MANAGING DIRECTOR

Mr. Rajeev Kumar Mathur

CFO

Mr. Sunil Ranade

SR. VICE PRESIDENT

Mr. Rajesh Wagle


Aditya Gupta

[email protected]

♦Company is about to start supplying gas in GA3 (Raigad areas) and NH-4 highway.

♦1 New cng station commissioned last quarter and 3 new stations are under construction.

♦Management expects volume growth of 5-6% in H2FY18.

♦Margins expect to be steady in FY18.

♦100,000 new vehicles in Mumbai are expected to come in next 6 months.

♦No growth is observed in the volume of the public transport vehicles. The ratio of public :

private vehicle is 40:60.

♦Management expects industrial PNG volumes to up as alternate fuel cost goes up.

♦Capex guidance for FY18E & FY19E- Rs.250 Cr each.

♦Management doesnot expect any major impact of arrival of electric vehicles, as CNG is the

second cleanest fuel and there are multiple challenges in electric vehicles.


♦Company is taking step to bring working capital down from 128 days as on 1HFY18.

♦ Tax rate guidance of 25%- 28% for FY18.

♦The Management expects single digit in price erosion in the US base business to persist during

FY18.

♦ Management cuts the India business revenue growth guidance of 15% to 12%-15% in FY18

on YoY Basis.

♦Management has guided for EBITDA margin in the range of 21%-23% in H2FY18 from 26%

earlier for FY18.



Company Mahindra & Mahindra Ltd.

INDUSTRY Automobiles



MD

Mr. Dr Pawan Goenka

CFO

Mr. V.S.Parthsarathy


Naveen Kumar Dubey

[email protected]

CompanyMahindra & Mahindra

Financial Services Ltd.




MD

Ramesh Iyer

ED & CFO

V Ravi


Sweta Padhi

[email protected]


♦Cost of fund to remain 2.9-3.1.

♦2000 cr fund raise can take place to avail the growth in rural india.

♦16000 contracts have written off.

♦Karnataka & Tamil Nadu is showing problem in collection , T.N is slow because of monsoon

and political environment.

♦Car consisit of 21% of portfolio, has low yield therfore NIM is impacted.

♦AUM to increase from 14-15% to 17-18% due to volume increase ,it may go beyound 20% if

we forego discount.

♦The tractor industry growth would be in the range of 12-14%. The positive rural sentiments and

well spread of monsoon to benefit tractor industry in FY19 as well.

♦The management expects 8-9% CAGR growth for next 3-4 years (Tractor segment).

♦Passenger vehicle industry growth to be 10%YoY. This growth momentum to continue in UV

segment led by three refreshes launches in next two quarter and S201 (MPV) in this year and

Tivoli based vehicle in FY19.

♦Exports in 2QFY18 impacted due to financing issues in Nepal while Sri Lanka market

impacted due to regulation challenges. The management expects it to recover in 2HFY18.

♦Electric vehicles: Capex of Rs.600 crores through Mahindra Electrics EVs - for component

development, technology and product development. Indicated investment in battery plant, plant

for motor and power electronics and transmission [with international JV partner].

♦The company is finalizing long term sourcing of Li-ion cell, which will help to reduce cost.

Current cost of Li-ion cell cost $200-230/Kwhr, expects it to go down to $120- 125/Kwhr in

three years.



Company Marico Ltd

INDUSTRYHousehold & Personal

products


Management Participants ♦Management expects double digit volume growth for Suffola in the near term.

MD & CEO

Mr. Saugata Gupta

CFO

Mr.Vivek Karve

Head-Treasury, IR, Secretarial &

MA

Mr. Ravin Mody


Rajeev Anand

[email protected]

Company Maruti Suzuki India Ltd




CFO

Mr. Ajay Seth

Executive Director –

Corporate Planning

Mr. A.K. Tomer

Senior Vice President

Mr. Pradeep Garg


Naveen Kumar Dubey

[email protected]

♦For Saffola, growth was primarily affected by slowdown in orders from CSD. Without

CSD, the volume growth would have been 6%.

♦Margin Outlook: comfortable level of EBITDA margin for Indian business would be

around plus 20% in medium term while the company will try to maintain international

margins in 16-17% range.

♦Parachute Rigids: The company expects to deliver a volume growth of 5-7% in the

medium term.

♦The Company has taken a price increase of ~10% in Parachute Rigids, effective from

Oct. 2017.

♦International business: The Company is confident of delivering a double-digit CC

growth for the near term for Bangladesh while business from South East Asia will

require some more time to get back to double digit growth trajectory.

♦Business from MENA region: Given the economic scenario in Middle East and

currency headwind related to Egypt, management is cautiously optimistic and expects

improvement inbusiness from H2 FY18 onwards.


♦Exports revenue for the quarter stood at Rs.1565 crores.

♦Tax rate would be around 29% in FY18.♦ Discounts for the quarter stood at Rs.15200. Royalty for the quarter Rs.1144 crore.

♦Capex Rs.1458 crore for the quarter but for full year FY18 is Rs.4000 crore

♦Inventories would be down by 20% after the festive season.

♦Gujarat plant production 10500 units per month. Management expects that the plant

will be producing 20000 units per month by 4QFY18.

♦Government employees forms 20% of total Maruti's sales and fleet sales is still in

single digits of total sales.

♦Waiting period for Baleno: 16 weeks, Dzire: 16 weeks and Brezza: 20 weeks.

♦First time buyers are 50% of total sales.

♦Capex in each of the years FY18 and FY19 is likely to be around Rs 100–125 cr.

♦The expected ETR during FY18 would be around 26-27%.

♦Recovery in the CSD channel is expected to happen from Q4 FY18.

♦The company is capable of doing 1.7 million units in FY18.

♦Maruti Suzuki will grow in double digits in the next three years and meet its stated

target of selling 2 million vehicles a year by 2020.

♦The company will focus on automotive industry without getting deviated to other

diversification plans.



CompanyMotherson Sumi Systems Ltd.

INDUSTRY Auto Components



Chairman

Mr. . Vivek Chand Sehgal

CFO

Mr.G.N.Gauba


Naveen Kumar Dubey

[email protected]

Company PARAG MILK FOODS LIMITED

INDUSTRY Food Products



Chairman

Mr. Devendra Shah

Director

Mr. B M Vyas

VP strategy and Marketing

MS. AKSHALI SHAH

Senior Manager (Finance)

MR. DEEPAK JAIN


Rajeev Anand

[email protected]

♦SMP startup costs for the quarter include impact from Kecskemet and Tuscaloosa plants. These

plants (along with recently started Mexico) at full capacity to add Euro 1bn to the SMP revenue.

♦Electric vehicles will be a new opportunity as the content per vehicle will increase going ahead.

♦Growth momentum will continue. Launched Avvatar, first 100% veg. whey protein product.

Minor improvement in gross margin can happen.

♦Company has received incentives of Rs 8.6 cr for its mega plant for 2 months. These incentives

are given by Govt. of Maharashtra on Gross GST paid, for the period of 8 years starting from 1st

August 17, total admissible amount of Rs279.3cr(maximum of Rs34.9 cr per year). Incentive

will be applicable to investment made till 31 March 2019. Mega project benefit will last till July

2025.

♦Due to purchase of butter in festive season and sales of skimmed milk which price has

declined, gross margin went down by 32 bps Yoy.

♦Capex of Rs 17.7 cr for improving Whey protein facility in Manchar Plant.

♦Revenue guidance of USD 18 billion and ROCE of 40% in 2020.

♦SMRPBV 's order book of EUR15.2bn (EUR12.9bn in March 2017).

♦Focusing on achieving 3Cx15 strategy (Despite Daimler's share increasing from 11% to 14%).

In 2020, will start looking at 3Cx10 strategy.

♦The company so far has not seen any slowdown in US and Europe from any of its clients.

♦Capex guidance of Rs.2000 crores.

♦Other expenses were low for this quarter, due to cost saving of Rs 3 cr on the back of saving on

octroi, transportation and lower A&P expenditure.

♦A&P on Avvatar will come in 3QFY18. A&P will be around 2.5-3% of sales in FY18.


♦Domestic Whey protein market is totally import driven market. It is of Rs 1500 cr market is

now growing at rate of 25-30%.

♦Expects Rs 21-25 cr(B2C) from sports nutrition products by March 17.

♦Seen decline in institutional cheese sales and butter business in the H1FY18. Expects recovery

in H2FY18 (expect double digit for FY18).

♦Retail outlets: 250000 across India (30 sept17), Planning to add 9000 more stores in FY18. An

export is ~3% of total sales of the company. Cheese business (specialty):B2B: 50%

♦Margin would be sustainable. Milk prices will be around Rs 26-27 annually.

♦There is no Price increase in Q2FY18. Overall growth CAGR will be around 14% over next 3

years. Total cheese capacity: 60 ton. ♦Capex for FY18: Rs 60 cr.



Company Persistent Systems Ltd.


21th JULY 2017 Q2FY18 EARNING CONFERENCE CALL


MD & CEO

Dr. Anand Deshpande

Executive Director & Chief

Operating Officer

Mr. Mritunjay Singh

President - Digital

Mr. Sudhir Kulkarni

CFO

Mr. Sunil Sapre


Niharika Ojha

[email protected]

Company Petronet LNG Ltd.

INDUSTRY Oil, Gas & Consumable Fuels



Chairman

Mr. K D Tripathi

Director (Finance)

Mr. R K Garg


Aditya Gupta

[email protected]

♦Persistent Revenue grew by 4.6% QoQ and by 8.1% YoY to Rs 7,612.52 Million.

EBITDA grew by 10.9% QoQ and 4.5% YoY to Rs 1,157.82 Million. PAT grew by

10.0% QoQ and 12.4% YoY to Rs 826.23 Million.

♦Revenue contribution by Parx business is $1.9mn.

♦Verticals: Service business has grown at 2.7% by focusing on specific accounts, ISV

business is facing challenges and Enterprise business is expanding.

♦Treasury income for 2QFY18 is $133mn.

♦ETR for the quarter is 25.9%


♦Management guides capex of Rs 230 Cr for FY18 and similar amount for FY19.

♦Gorgon volumes stood at 10 11tbtu in 1QFY18/2QFY18.

♦Capacity utilization at Kochi terminal stands at 15% in Q2, management has guided for further

sequential improvement in utilization.

♦Dahej expansion to 17.5 MT is going on schedule and is expected to complete by Q1FY19.

♦Guidance for Tax rate is 30-34%. Now the company is out of MAT.

♦Company has successfully renegotiated Gorgon volume contact with Mobil Australia Resource

Company, an affiliate of Exxon Mobil Company.

♦Uniform tariff may take few quarters more, decision is pending with PNGRB.

♦In IOT side, investment in R&D and working to get new client.

♦Onshore high and currency fluctuation impacted in decline in service business(yoy).

♦wage hike will impact margin by 150 to 200bps in Q3FY18 ,impact will continue in

Q4FY18 also.

♦Runrate for Aliiance business will be similar to FY17.

♦For service business difficulity to forcast future performance.

♦Ultisation has grown up to 77%, aspiring onsite linear to be 90% and offshore linear to

be 80%.

♦Six month product cycle will be better in 2HFY18.

♦Positive growth head count in Q3FY18.



CMP PI Industries Ltd.

INDUSTRY Agrochemicals

14th August 2017 Q2FY18 EARNING CONFERENCE CALL


Chairman & MD

Mr. Salil Singhal

Corporate Counsel &

Company Secretary

Nishid Solanki


Ritika Jalan

[email protected]

Company PNB Housing Finance Ltd.




MD

Mr. Sanjaya Gupta

CFO

Mr. Jayesh Jain

Executive Director

Mr. Shaji Varghese

Mr. Ajay Gupta


Sweta Padhi

[email protected]

♦Con borrowing is 29000, investment in liquid asset is 4000, net borrowing is 25000.

♦5 paise segment is for DIY (do it yourself ) customer segment.


♦Mega trend 1)Financialization of saving 2)Housing 3)SME are to drive growth.

♦No capital raising plan in near future.

♦Retention yield has decreased because of decline fund based yield ,15 cr loss mark to market

value of bond in treasury portfolio.

♦Effective tax rate will be at 25% for full year.

♦Incrementally borrowing is at 7.9%.

♦Significant cost increase in wealth ,because of capex ( increase in number of bankers).

♦NPL in LAP & Real Estate is 8 million, mainly because of GST.

♦Incremental small ticket home loan yield is 14%.

♦SME ,Gold & MFI has high yield thus supporting NIM, while retail low yield loans are hurting

NIM expansion.

♦5000 approved project mostly construction.

♦Yield in FY18 will be aroung 9.5-10.

♦NIM 6.5-7 in FY18.

♦The management has maintained revenue growth guidance at ~10% across both the business

segment, along with the ramp-up of two recently launched rice fungicides (Header and Fender).

♦Capex outlook of Rs150 Cr increase to Rs200 Cr in FY18 out of which company has already

invested 60Crore.

♦Expected Effective Tax Rate for FY18-20%-21 %( FY17-10%) as the Jambusar facility will be

going under the 50% tax benefit from the 100% tax benefit earlier.

♦CSM current order book stood at USD 1bn, the order book has an execution cycle of 3-4 years.

♦The Company had launched Elite in partnership with BASF which is a 9(3) products and it

intends to launch 2 more 9(3) products in FY18.

♦Management expect the Rabi season to be supportive as the rainfall has been favorable ahead

of the season.

♦Home loan avg ticket size is 10-12 lakh(swaraj loans) ,granularity has increased in home loan.

♦35% of loan are PSL complied, securitisation to increase to 15%.



Company PNC Infratech Ltd




Chairman & MD

Mr.Pradeep Kumar Jain

CFO

Mr. D K Agarwal

AVP

Mr. D.K. Maheshwari


Sandip Jabuani

[email protected]

♦ 70% land is available on newly won Chakeri to Allahabad HAM project.

♦Received appointment date on Nagina Kashipur on 28th October and work will start from

Q3FY18.

♦Land acquisition on Bhojpur Buxar is slow, currently 50% land is acquired and expect

appointment date in December.

♦53 Km land out of 73 Km is acquired on Chitradurg - Davanagere and 80% will acquired by

the November and revenue will start flow in from Q3FY18.

♦50% land is available for construction in Jhansi package -1 and expects 80% by the December.

Execution will start from Q4FY18.

♦Jhansi package ll:- 3G of 80% land is completed and compensation distribution has started and

management expect appointment date by November end.


♦Management has revised revenue guidance from 25-30% to 15-20% for FY18. Revenue growth

in FY19 will be 25-30% on conservative basis; it may go up to to the 35%.

♦Based on the current gross block and man power capability PNCINFRA can do revenue to the

tune of the Rs 3500-4000 Cr.

♦Tax rate in FY18 will be 5-10% and 15-18% in FY19.

♦Delay in submission of bills due to GST lead to higher debtors and it will be normal going

ahead.

♦Planning to monetize operational BOT projects.

♦Expect to receive bonus to the tune of 70-80 Cr in FY18.

♦Management expect revenue of 220 Cr from Varanasi- Gorkhapur, 220-230 Cr from Alighar

Muradbad and 200 Cr from Dusa Lalsot in second half of FY18.

♦Capex for FY18 will be 100-125 Cr

♦PNCINFRA has received appointment on Koliwar Bhojpur and Nagina Kashipur in July and

October respectively. Revenue will start flow in from Q3FY18.


CompanyRatnamani Metals & Tubes

Ltd.


10th Nov 2017


Chairman & MD

Mr. Prakash Sanghvi

CFO

Mr. Vimal Katta


Sagar Sharma

[email protected]

♦Capex of around Rs.100-120 crore in FY18 and around Rs.200-180 crore in FY19.

Q2FY18 EARNING CONFERENCE CALL

♦ 2QFY18 was dull because of most of the orders were booked in July, August and September.

Company expects significant change in 3Q & 4QFY18.

♦Order book as on 10/11/17 stands around Rs.2500 crore out of which Rs.780 crore are export

orders. Execution of order may go up to September 2018 in case of CS (Carbon Steel) and up to

June 2018 in case of SS (Stainless Steel). Major Inflows from Tanzania, Rajasthan, and Gujarat.

♦Company expects order book position to remain in same range in FY19 as well.

♦CS would be contributing around Rs.1100 crore in revenue in FY18.

♦New order booked from oil & gas segment and water segment.

♦Company expects demand pick up in fertilizer sector.

♦Company is bullish on expansion projects in fertilizer, oil & gas, power, nuclear power, water

pipeline for coming 4 to 5 years.


♦Inflow of orders from Dangote refinery would continue for 2 years & some orders from Middle

East.

♦Stainless steel and LSAW enjoy best margin (20-22% at EBITDA level) and HSAW, ERW and

other products (10-12%).

♦Company expects to maintain 16-18% of margins at EBITDA level going ahead. And targets at

least 15% of volume growth every year.

♦LSAW volume is small because of requirement are not high. Company has advantage over

competitors because company caters to project specific requirements whereas other are volume

driven.

♦Joint venture between NTPC, Coal India for fertilizer plant would be a demand driver in future

as it would require Stainless Steel requirement. Capex in the plant would be close to Rs.17000

crore to Rs.18000 crore and out of it around 3-4% would be for SS tubes and about 1-2% is CS.

And projects execution timeline is about 3-4 years.

♦Seamless SS expansion on track and major part would come in October 2018.


Company RBL Bank Ltd




Chairman & MD

Vishwavir Ahuja

ED & CFO

Naresh Karia

Ex. Director

Rajeev Ahuja


Anu Gupta

[email protected]

Company Reliance Capital Ltd.




CEO

Sam Ghosh

CFO

Amit Bapna


Sweta Padhi

[email protected]

♦Business composition: Credit card-19% of BBB book; LAP-50% of book; Unsecured &

personal loan-20% ; Others-10%.

♦Customer acquisition rate is accelerating due to Bajaj partnership and hike in Saving A/C.

Overall customer base increased from 3.1 mn to 3.5 mn this quarter.

♦4.5 lakh co-brand card tie up. Lakh 30,000 cards along with Bajaj.

♦Intensity largely because investment book is going slower than overall advances book.

♦WA grown by 35% YoY and 10% QoQ driven by decrease in G-sec book and hike in Non-

fund based book which includes NCLRT and derivative.

♦59% hike in Non-wholesale business branch.

♦CCD raised ,exposure by media & entertainment of 6500cr to be run off by Mar 18.

♦High quality portfolio due to Working capital loan given to highly rated great companies which

also includes renewals.

♦Out of 91 cr slippage half is from micro banking area and half from various components of

retail assets.


♦Branch expansion is the key for growth.Physical branch expansion 30-50 every year. Space and

opportunity for opening branch in eastern side.

♦Recent Govt. strategy of recapitalization will lead to cash neutral and liquidity in the system.

♦Part of distribution architecture intends to grow 30-45% .It is achieved more through put and

customer acquisition.

♦300 employee manages the BC (Business Correspondence) outlet. Other OPEX 2020 vision-

51-52%.

♦General insurance growth 14% QOQ (mainly Health & Motor Insurance).

♦9.3% of Pvt Market share. CRAR 21.4% , TIER 1-13%

♦Bankca tie up with Equitas Small Finance Bank , (Total tie up 11).

♦Reliance Nippon asset mngmt AUM 3.8 bn , NPA 21%, sip rose to 2.2 million.

♦Reliance Money AUM increased by 3% to 163 bn, loan book growth 12% to

127bn,disbursement increased by 16%(with 33% in SME ), 8% declined in GNPA 6.6 bn(4.1%

of AUM)NPA 3.3%, Coverage with write off is 19%, while excluding write off is 48%.NIM 5.5

% from 5.4%(QOQ).

♦Reliance Home Finance 51% of portfolio is homeloan and affordable home loan .AUM grew

by 53% to 141 bn ,Disb 26% to 20bn. Future Guidance of 3.5% in affordable segment GNPA

.8% of AUM, Coverage Excluding write off 28%, including write off is 45%.NIM 3.9%.CARE

rating of AA+ In Long term borrowing.

♦Reliance Nepal Insurance : Individual Premium & New business premium increased by 3% to

1.7 bn to 7.6 bn. Individual WRPA increased by 4% to 1.7 bn.13 month persistency increased

from 61% to 68%(YoY).Tradition Product segment consist of 83% of New Business

Premium.Won Bancasurance with Bank of Maharastra.



Company Repco Home Finance Ltd.




MD

R Varadarajan

Executive Director

Mr.V Raghu

CFO

T Karunakaran

Chief General Manager, Credit

K Ashok


Sweta Padhi

[email protected]

Company Sadbhav Engineering Ltd.




Chairman & MD

Mr.Vishnubhai M Patel

Joint MD

Mr. Shashin V Patel

Ex. Director

Mr. Vasistha C Patel


Sandip Jabuani

[email protected]

♦ Cost income to be below 16% in FY18,FY19.

♦Loan to asset value is 50%

♦GNPA has decreased to 3.4 from 4, GNPA to be near 2% by FY18.

♦Improvement in yield by 15 bps QOQ.

♦Yield Homeloan 11.2% LAP 14.3% (poortfolio Basis)in 2QFY18,homeloan 11.3% LAP

14.5% in 1QFY18.

♦Maharastra ,Gujurat & Telangana is performing good. But T.N ,Kerala , Karnataka & Banglore

lagging performance.

♦Incremental pricing is 9.8% in home loan ,LAP pricing has increased.

♦Interest received is 2.5 in Q2FY18.

♦20% growth in disbursement in H2FY18.

♦Blended Home loan yield 11.2%, LAP 13.5%.

♦ Sanction LAP 146 CR, Housing 618cr , Disbursement 141 Cr & 612 Cr.


♦ 500cr high cost NCD maturing in FY19, save 1.2-1.3%.

♦Coverage to be 70% FY18.

♦EBITDA margin is higher due to value accretive work on road EPC & HAM projects.

♦Remaining Irrigation order book will completed by FY19.

♦Rohatak Panipat has received arbitration award of Rs.104 Cr.

♦Around 295 Cr to be received on 4 HAM projects as mobilization advances.

♦SIPL may be pay back 200 Cr by March 2018.

♦Interest cost will further reduce.

♦Expect debt of Rs.1250 Cr on standalone basis by the year end.

♦40 lakhs write off in 2QFY18.

♦Maintain revenue growth guidance of 20% and EBITDA of 11.5%.

♦Expect 7000 Cr of new order inflow in FY18 and 50% of it was already received in H1FY18.

Expect 1400 Cr of execution from HAM projects in FY18.

♦Mangment is not confident to achieve revenue guidance of Rs.350 Cr from Irrigation in FY18.

♦Tax rate will be zero in FY18.

♦MAT credit of 90-95 Cr is available.

♦Execution on Irrigation projects impacted during the Q2FY18 due to monsoon.

♦ Rs.85 Cr release from Irrigation projects.

♦Capex requirement of Rs. 70-75 Cr in FY18.



CompanyShriram City Union Finance

Ltd.


3rd Nov 2017 Q2FY18 EARNING CONFERENCE CALL


Chairman

Sri Debendrana Sarangi

MD & CEO

Mr.R Duruvasan

Director

Mr. G.S Sundararajan

Ex. Director and CFO

Ms. Subhasri Sriram


Sweta Padhi

[email protected]

CompanyShriram Transport Finance

Co. Ltd.




MD & CEO

Mr. Umesh Revankar

CFO & Ex. Director

Mr. Parag Sharma


Sweta Padhi

[email protected] ♦Dividend 12cr of subsidiary included in Other Income.

♦AUM growth will be 15% in FY18 & FY19.

♦ Mckinsey tie up in SME business for expanding in north, the number to be seen in 3-4 years .

♦Urban market constitution to increase to 10% ahead in 2-3 years.

♦2w-30%-40% growth in oct was due to Diwali.

♦ROA will be 4.5 in FY19.

♦Bharat mala and sagar mala scheme of 20lakh cr of govt going to boost growth.

♦Credit Cost guidance for H2FY18 is 2.5-3.

♦18-20% AUM growth for H2 FY18.

♦South & Maharastra consist of 75% of SME business.

♦ GNPA is at 9.3% from 9.08 % QOQ.(90 dpd)

♦Entire personal loan is unsecured, therefore 100% write off is provided .


♦Liability of 9000 cr to be reprised in 12 month, 25-50bps point reduction.

♦Cost of fund stable or marginal reduction.

♦Number of new vehicles financed in 2QFY18-2.4 lakhs.

♦AUM proportion in next 2-3 years, 60% SME(focus) ,17% 2W .REST Gold, Personal Loan

etc.

♦Blended Yield on SME is 20%

♦ NIM will remain stable.

♦ For 90 dpd GNPA would increase by 1%.

♦ Credit cost 2.8 annualised to be maintained at same level.

♦Next year credit cost will decline to 200 bps.

♦ C/I ratio to be less than 22%.

♦15% of borrowing to be reprised by 10-15bps.

♦Branches can be 150 branches per annum.

♦Processing fee & rating fee has come down.



Company SONATA SOFTWARE LTD.

INDUSTRY IT SOFTWARE AND SERVICES



Chairman & MD

Mr. Srikar Reddy

HEAD (FINANCE &

ACCOUNTS

Mr. R. Sathyanarayana

CFO

Mr. Prasanna Oke


Niharika Ojha

[email protected]

Company Srikalahasthi Pipes Ltd.




CFO

Mr. N. Sivalai Senthilnathan

GM - Finance

Mr. V.M. Sridharan


Sagar Sharma

[email protected]

♦2QFY18 average realization around Rs.44000/ton. Average realization up 4% to 5% as

compared to last year.

♦Maintenance capex of around 3 to 4 cr.

♦ Management said no as such risk related to electrosteel.

♦Margin is better due to utilization and better rate of service.

♦Structure of principle in deals which will go to substantial growth in domestic service.

♦Strong quarter for International IT Service revenue334.6cr (12% YoY).

♦32% revenue came from digital segment.

♦10 new client added in 2QFY18, 7 came from US & 2 from Asia and 1from Europe.

♦Margin is managed in domestic service and not the revenue.


♦Momentum is continued for 200mn dollar revenue in 2020.

♦268 crore net is cash in book, debt is 48 crore.

♦5mn dollar + are 4 customer , total of 21 client in 1mn dollar.

♦Target of IP led business is not possible.

♦25000 MT order of Telangana govt. is pending.

♦Order book of around Rs.900 cr & in terms of volume is around 200000 MT(Metric Tone)

executable in 6 to 9 months.

♦Most of the orders are driven by govt. efforts.

♦Company expects sales volume for FY18 to be around 270000 MT. which is 90% of capacity

utilization.

♦6 months of coking coal in stock.

♦No orders inflow from Amravati project yet.

♦Company is still exploring the QIP option for acquisition purpose. Company will take 2 to 3

months to take final call.



CompanySun Pharmaceuticals

Industries Ltd.




MD

Mr. Dilip Shanghvi

CEO

Mr. Abhay Gandhi

IR & Corp Comm

Mr. Nimish Desai


Aditya Gupta

[email protected]

Company Syndicate Bank


2nd Nov 2017 Q2FY18 EARNING CONFERENCE CALL


MD & CEO

Mr.Arun Shrivastava

Ex. Director

R S Pandey


Anu Gupta

[email protected]


♦100-150 branches to be opened in the FY18.

♦S4A and SDR amounts to 1824 cr in the quarter.

♦Expected retail growth -15% area.Agri-18%, SME-10% and corporate-4-5%.

♦CET is expected to be 8% by March18.

♦Composition of ratings for sept 18-AA-37% , A-20% and BBB and below-40%.

♦Credit cost guidance for FY18-2%.

♦SMA-2 book amounts to 2382 cr in the current quarter.

♦Loan growth is expected to be in the range of 8-10%.

♦Slippages for Q2FY18 stands at 1576 cr.

♦Percentage loan to MCLR-48%.

♦Reduction in interest rate to 3.5% on saving bank A/C of upto 25 lac w.e.f 10th oct,2017.

♦Plan to raise capital in the range of 750-1000 cr through QIP. Tier 1 bond-550 cr and Tier II

issuance 500 cr.

♦Exposure of 12 A/c in NCLT cases-Total exposure-5156 cr. Out of 2906 cr of provisions 2195

cr has been already done.And about 345 cr provisions to be done in next 2 quarters.

♦Company is awaiting for reinspection of HALOL plant by USFDA.No new approvals expected

from this facility till clearance of HALOL PLant. The company is shifting the products from

Halol to an alternative site as a risk mitigation process.

♦Till Date Company has 136 Abbreviated New Drug Application.4 Abbreviated New Drug

Application filed in 2QFY18 and approval of 3 Abbreviated New Drug Application was

received.♦The Company continues to spend on R&D at 7.7% to sales (Rs 511 Cr) and it will continue to

increase R&D investment in future.

♦Increase in the employee expenses was mainly due to expansion of specialty portfolio team in

US and Biosintez acquisition in Russia as per theManagement.

♦Management has retained its guidance for single-digit top line in FY18 and for an EBITDA

margin of 20-22% for 2HFY18.

♦Tax rate expected to gradually increase in FY18/19.


Company Tata consultancy Services Ltd




CEO & MD

Mr.N Chandrasekaran

CFO

Mr.Rajesh Gopinathan

Director

Mr. Phiroz A. Vandrevala


Niharika Ojha

[email protected]

COMPANY Tech Mahindra Ltd




Ex. Chairman &CEO

Mr. C P Gurnani

CFO

Mr. Milind Kulkarni

Global Head

(Communications)

MR.Manish Vyas


Niharika Ojha

[email protected]

♦Core telecom:H2 will be slightly better result .

♦The management continues to maintain its target margin band of 26-28% though

rupee appreciation and higher local hiring cost could act as headwinds to margin

profile.

♦Deal wins: A very strong set of deal wins in Q2. Of the 11 key wins, three Each come

from BFSI and CMI; two from Retail and one each from Life Sciences, Manufacturing

and Travel.


♦Georgraphy wise:Growth was once again led by a strong 5.3% QoQ growth in

Continental Europe and 5.7% growth in Latin America. North America continue to grow

below company average, primarily due to the softness in BFSI and Retail.India was

volatile, declining 6.9% QOQ.

♦Client addition: Strong client additions was seen across all revenue bands in 2QFY18.

During the quarter, one client was added in the $100M+ revenue band, bringing that

total to 37. In addition, six more clients were added each in the $50M+, $20M+, $10M+

and the $5M+ bands.

♦EBIT margin expansion of 170bp QoQ was a positive surprise. The expansion in

margin was contributed by multiple line items across COGS and SGA, and not by any

single driver.

♦Verticals:Growth in revenue was led by Travel and Hospitality, Energy and Utilities,

Life Sciences and Healthcare, Technology and Services.BFSI grown 1.9% sequentially

in 2QFY18 but there was a decline in Retail of(-0.9%)QOQ. In Retails,TCS believes it

has now bottomed out and should see improvement going forward.

♦Margin improved on account of operational efficiency and lower visa cost.

♦Expected tax band at 25% to 26%.

♦IP agreement with visualization and cloud result in cash spent usd $35mn in 2QFY18, from Q3

usd $105mn will spent in 12 installments.

♦Steady progress in seen in 2QFY18.

♦ Utilization as up to companies top end.

♦Potential in Europe for tech Mahindra.

♦Margin expected to continue to improve for Q3FY18 and rest of the year.

♦ 21 client added in 2QFY18

♦ 2 large deals wins in BFSI & Communication.

♦Better growth in H2 in communication.



Company Titan Company Ltd.

INDUSTRYTextiles, Apparel & Luxury

Goods



MD

Mr.Bhaskar Bhat

CFO

Mr.Subbu Subhramaniam

CEO-Jewellery Division

Mr.C. K. Venkataraman


Pramila Lakra

[email protected]

Company Torrent Pharmaceuticals Ltd.




Ex. Director

Mr. Ashok Modi

Chief Marketing Officer

Mr. Ruchir Modi

AGM (Finance)

Mr. Rishi Shah


Ritika Jalan

[email protected]

♦Company plans to file ~10-15 ANDAs this year (15 ANDAs in FY17), however there are no

launches like the gAbilify but it have approval of 5 products which are not launched, will come

to the market in FY18E or early FY19E.

♦Products with approval that are not launched - Fluvoxamine (Luvox CR, single player market in

the US, Teva), Olmesartan HCT Amlodipine (Tribenzor, currently dominated by 2 large players,

Teva and Sun), Lamotrigine ER (Lamictal XR, 4 player market), Anagrelide (Agrylin, single

player market with Teva), Telmisartan and Amlodipine (2 player market).


♦Tax rate guidance of 21-22% in FY18.

♦Torrent has acquired the branded business of Unichem Laboratories (UL IN) for its India and

Nepal regions for a consideration of Rs3600Cr.

♦Torrent Brazil business declined mainly due to one-time expense related to payment to

distributors for near expiry inventory and additional discounts.

♦Management expects Unichem acquisition to be cash accretive by 1st year an EPS accretive by

3rd year.

♦Management has entered into a two year manufacturing agreement with Unichem for the

acquired products.

♦Company would like to stabilize US Business at USD250m in medium term. Currently US

business run rate is USD35-40m quarterly.

♦Good growth in watches led to 30% growth in revenue and very big jump in profits. Good

growth led to good margins.

♦No impact on jewellery business from GST. Have not passed on GST increases on watches.

Awaiting further clarification on rates of watches.

♦High debt due to inventory build-up, but it has come down sharply in October.

♦17 store opening target in next two quarters with ~40k sq. ft. area.

♦GHS balance as of today is Rs 800 Cr.

♦25% jewellery growth guidance maintained for FY18.

♦High debt due to inventory build-up, but it has come down sharply in October.

♦Advancement of sales in previous quarter was compensated with early festive season.

♦Retail growth stood at 22%, while SSSG was at 18%. Gold tonnage increased 49% in 2QFY18.

♦Other expenses declined by 31% on account of GST-related disclosure changes and a large

favorable swing in hedging ineffectiveness between PY and CY. No GST impact on costs.



Company TVS Motor Company Ltd.




CEO

Mr. K.N. Radhakrishnan

CFO

Mr. S.G.Murali


Naveen Kumar Dubey

[email protected]

Company Ujjivan Financial Serices Ltd.




MD & CEO

Mr. Samit Ghosh

Non Executive Director

Venkatesh Natarajan

Ind. Non-Executive Director

Sunil Patel


Anu Gupta

[email protected]

♦BMW motorcycles: monthly runrate is around 2500 vehicles.

♦Management expects good double digit growth for the industry. The second half of FY18

would be strong due to good monsson in southern region.

♦The company to touch 10% EBITDA margin by 3QFY18 and double digit margin guidance for

FY19.

♦23% market share in premium segment motorcycles and 14.5% in overall 2 wheelers in India.

♦Capex of Rs.600 crores in FY18.

♦Dealer Inventory 30-32 days.


♦There is no capacity constraints at present point of time and if needed then it will take only 3-4

months to expand capacity.

♦There would be new launches in 2HFY18 (both Scooter and Motorcycle segment).

♦ The company has added 150 new dealers in last one year.

♦The management expects strong cash flow generation in 2HFY18.

♦Disbursement is expected to increase in the next 2 Quarters.

♦Loan growth 18-20% for FY18.

♦Credit cost is expected to taper in next 2 Quarter.

♦Plan to open branch in the next 2 quarter.

♦Interest Income breakup in Q2FY18:-Loan Book-318 cr and Investment-35 cr.

♦Opex number -70-80 lac per year.It is expected to increase 25% in FY19.

♦15-20% Growth in MFI book is expected.

♦The bank will add new product on loan portfolio including personal loan.

♦Reduction of par-91 cr.Major part is U.P followed by Karnataka.

♦NIM 150bps over March 17 number.

♦Higher margins come from Microfinance.

♦Average tenure of advances-15 month.

♦MFI reduced by 21% as cost of fund reduced to 2%.

♦Guidance for ROA in FY20-2.5%.

♦Retail deposit-1 year tenure and Non-Retail-3-6 month.



Company Welpsun Corp Ltd




Director

Mr. Akhil Jindal

Managing Director

Mr. B.K. Mishra

Ast VP Corporate Affairs

Mr. Navin Agarwal

IR

Mr. Deepak Khaitan


Sagar Sharma

[email protected]

Company Yes Bank Ltd.




MD & CEO

MR. Rana Kapoor

SENIOR GROUP

PRESIDENT & CFO

Rajat Moga


Sweta Padhi

[email protected]

♦Management said margins of 1HFY18 are not sustainable for 2HFY18. As margins were driven

because of execution of some niche orders and is not sustainable on annual basis.

♦Plates and coils are doing well as compared to past because of good prospects of increase in

infra spending. Though demand is coming up but there are supply constraints in plates and coils.

♦Current pipe order book stands at 661K MTs (Rs.4400 cr). Volume in the existing order book

is of low profitability mostly from Asia.

♦60% of order book from India and Asia. And, 40% from US and MENA region.

♦Most of the supply of orders would be from India.

♦Bid book of 5.8 million tones out of which India is .5 million tones, US and Europe 2.5 million

tones, and from MENA of around 2.5 million tones.

♦Management expects 40% to 45% of orders out of the bid book should be awarded.

♦ 80% to 85% of the orders would be executed in FY18 itself.


♦Most of the orders coming up are from water segment for large dia pipes.

♦13351 CR is total of 4 divergence over 24 months out of which 41% is recovered, 30%

standard, 13% sold to arc and NPA of 16%1147cr. Not a single ac have overlapped.

♦Out of total divergence most of are of Infra related sector , 1 is of steel 3.5 billion which is

NPA.

♦82% of GNPA i.e 63.55 cr divergence this year, 47% upgraded,27% fully repaid ,7.3% sales. It

consists of 19 A/C across 7 medium size groups out of which 4 A/C consisit of 1219 cr is NPA ,

12 A/C is upgraded and 3 sold to ARC,amounting to 440 cr with 15% cash recovery ,as the

underlining collateral excess of face value.

♦Cost to be contained within 50-70 bps.probably towards the upper end.

♦Asset sold are 1730 over 2 years , outstanding is 1440cr 30-40% will be recoverd by 18 months

.

♦Cost to be contained within 50-70 bps.probably towards the upper end.

♦Asset sold are 1730 over 2 years , outstanding is 1440cr 30-40% will be recoverd by 18 months

.



CompanyZEE Entertainment Enterprises

Ltd.

INDUSTRY Media



MD & CEO

Mr. Punit Goenka

CFO

Mr. Bharat Kedia

Head, Corporate Strategy and IR

Mr. Bijal Shah


Rajeev Anand

[email protected]

Company Zydus Wellness Ltd

INDUSTRY Food Products



Group CFO

Mr. NITIN PAREKH

CFO

Mr. AMIT JAIN

COO

Mr. TARUN ARORA


Rajeev Anand

[email protected]


♦Trade channels are getting normal. Comparable revenue growth was 11.5% in Q2FY18.

♦Going forward company will invest on digital space.

♦Sugar substitute category has grown by 15% as per AC Nielsen, MAT sept.2017.Sugarfree has

maintained its market share to 94%, improvement of 10 bps YoY.

♦Scrub category has grown by 11.3%. Everyuth scrub has maintained its no.-1 position with the

market share of 32.4%, improvement of 110 bps YoY.

♦Expect this growth momentum to continue this financial year.

♦Chemist channel is not recovered fully, expected to recover fully in next quarter.

♦Launch Nutralite in Middle East market in Q2FY18.Exports is less than 2% of company’s total

sales and growing strongly.

♦Current gross margin is sustainable.

♦Dividend Policy: provide one third of profit as dividend and rest will be kept for M&A.

♦Management continues to maintain its mid-teens subscription revenue outlook despite mere

7.2% growth in Q2FY18 as they expect content deals to be closed in coming quarters.

♦Despite the loss of advertising revenue and elevated expenses during the quarter, it has been

able to deliver a healthy margin of 31%. Maintain 30%+ operating margin guidance.

♦The acquisition of 9X Media helped in expanding into regional markets and niche genres. 9X

Media's 6 music channels enjoy leading market shares in their respective segments and will

further strengthen its entertainment offering to the consumer. The channels will benefit

immensely from its network strength and achieve higher growth potential and cost synergies.

♦The Company expects to launch its digital product Z5 in H2FY18 while entry in Punjab and

Kerala market through local language channels would happen in next few quarters.

♦Advertisers were negatively impacted during transition to GST, which led to a temporary

pullback on their ad spends.

♦Post the decline in 1HFY18, the growth recovered strongly and is back on track. Despite the

adversities, its domestic ad revenue grew at 5.8% on a comparable basis.♦Domestic subscription revenue growth for the quarter was at 7.2%.

♦Due to the early closure of deals last year, content deals with distributors are taking slightly

longer due to litigations regarding the TRAI tariff regulation. However, full-year outlook for

subscription growth remains unaltered.



Narnolia Securities Ltd201 | 2nd Floor | Marble Arch Building | 236B-AJC Bose Road |

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