summary of management concall attended by our analysts ... · pdf fileashok leyland ltd ......

Summary of management concall attended by our Analysts post Q3FY18 earnings

Company Name Page Company Name Page

Aegis Logistics Limited …………………………….…..3 4 Deep Industries Ltd……………………………………….. 18

Allcargo Logistics Ltd …………………………………………………….4 Dewan Housing Finance Co. Ltd.…………………………... 18

Apollo Tyres Ltd ………………………………………………..5 Dhanuka Agritech Ltd………………………..……………….. 19

APL Apollo Tubes Limited……………….. 5 Dilip Buildcon Ltd……………………………….………………… 19

Ashoka Buildcon Ltd ……………………………………… 6 Dishman Pharma Ltd…………………………..………………… 20

Ashok Leyland Ltd ……………………………. 6 Drreddy Ltd…………………………………..…………………… 20

Agro Tech Foods Ltd…………………………. 7 Eicher Motors Ltd………………………………….……………. 21

Aurobindo Pharma Ltd………………………………………………………………..7 EID Parry ( India) Ltd………………………………..………… 21

Axis Bank Ltd………………………………………………………..8 Equitas Holding Ltd……………………………………..…….. 22

Bajaj Auto Ltd ……………………………………………... 8 Escorts Ltd…………………………………………...……... 22

Bajaj Corp Ltd……………………………………………….. 9 Federal Bank Ltd……………………………………………..…. 23

Bajaj Finance Ltd……………………………………………………..9 GAIL (India) Ltd…………………………………………………………...23

Biocon Ltd………………………………………………………….10 Gayatri Projects Limited……………………….. 24

Britania Industries Ltd………………………………………...10 Glenmark Pharmaceuticals Ltd……………………... 24

Cadila Healtcare Ltd……………………………………………….11 Godrej Consumer Products Ltd……………………..... 25

Canara Bank………………………………………….. 11 Gujarat Pipavav Port Ltd…………………………… 25

Castrol India Limited…………………………….. 12 Granules India Ltd………………………………..….. 26

CEAT Ltd……………………………………………………………………....12 Hindalco ……………………………………………………….… 26

Century Plyboards (India) Ltd…………………………………..13 HDFC Bank Ltd……………………………………………...…….. 27

CholaFin………………………………………………….. 13 Hero MotoCorp Ltd…………………………………………….…27

Cipla Ltd………………………………………………………….. 14 Hindzinc …………………………………………………….... 28

City Union Bank Ltd ……………………………...…………….14 Hindustan Media Ventures Ltd…………………………… 28

Cyient Ltd…………………………..…………………………. 15 Hindustan Unilever Ltd……………………………………..... 29

Dabur India Ltd…………………………….……………… 16 IIFL Holdings Limited………………………….. 29

DBCORP Ltd…………………………………..………………… 16 ICICI BANK LTD……………………………………………………………30

DCB Bank Ltd……………………………………..…………….17 Indiabulls Housing Finance Ltd …………………………………..30

DCM Shriram Ltd…………………………………..…………. 17 Indian Bank ……………………………………………………..………….31

Indusind Bank Ltd………………………………………………………………...31

Infosys Ltd…………………………………………………………………...………….4 KEC Ltd………………………………………………………………………….……. 12

Inox Ltd …………………………………………………………………………………5 KNR Constructions Ltd ……………………………………………………………...13

Insecticides (India) Ltd………………………………………….……………...6 KPIT Technologies Ltd………………………………………………… 13

IRB Infrastructure Developers …………………………………………6 Lakshmi Vilas Bank Ltd……………………………………………...…… 14

Jammu & Kashmir Bank Ltd ……………………………………………………………7 Larsen & Toubro Infotech Ltd…………………………………..….. 14

Jindal Saw Ltd……………………………………………………………………….8 LIC Housing Finance Ltd………………………………………………………..15

Jkumar Infraprojects Ltd……………………………………………………….8 Lupin Ltd ………………………………………………………………………………..16

JSW Steel Ltd…………………………………………………………… 9 Mahanagar Gas Ltd …………………………………………………………………...16

Jubilant Foodwork Ltd………………………………………………………....10 Mahindra & Mahindra Ltd …………………………………………………………..17

Kalpataru Power Transmission……………………………. 10 Mahindra & Mahindra Financial Services Ltd…………………….... 17

Karnataka Bank Ltd……………………………………………….. 11 Manpasand Beverages Ltd…………………………………………….. 18

Karur Vysya Bank Limited………………………………… 11 Marico Ltd …………………………………………………………………………....18

Kotak Mahindra Bank Ltd……………………………………. 12 Maruti Suzuki India Ltd ………………………………………………………....19

ContentsPart 1

Part 2

Page Page

Mindtree Limited………………………………………… 19 Skipper Limited………………………………………… 27

Motherson Sumi Systems Ltd ……………………………….…………………………...20 Sonata Software Ltd ……………………………….……………………………......28

Muthoot Capital Services Ltd…………………………. 20 Subros Limited………………………………………… 29

Orient Bank of Commerce…………………………… 21 Sun Pharmaceuticals Industries Ltd………………………….. 29

Parag Milk Foods Ltd……………………………………………………….21 Suven Life Sciences Limited……………………………. 30

PC Jeweller Ltd………………………………………..……. 22 Tata Consultancy Services ……………………………………………….... 30

Persistent Systems Ltd …………………………….……………………………....22 Tata Elxsi Limited…………………………………….. 31

Petronet LNG Ltd ………………………………………………………………...23 Tatasponge…………………………………………...…. 31

PNB Housing Finance Ltd………………………………………………………………..23 Tech Mahindra Ltd ………………………………………………………….... 32

PNC Infratech Ltd ……………………………………………………… 24 TV Motor Company Ltd …………………………………………...…… 32

PVR Limited……………………………………...…………. 24 Ujjivan Financial Services …………………………………………… 33

RBL Bank Ltd …………………………………………………………………………..25 Union Bank of India……………………………………….. 33

Repco Home Finance Ltd…………………………………………...…………………..25 Yes Bank Ltd …………………………………...………………………………….34

Sadbhav Engineering Ltd ……………………………………………………....26 Zensar Technologies Ltd……………………………………………….. 34

State Bank of India…………………………………...………. 26 Zydus Wellness Ltd ………………………………………………….. 35

Shriram Transport Finance Co. Ltd………………………………………….27

ContentsCompany Name Company Name

Company Aegis Logistics Limited

2nd Feb 2018 INDUSTRY Oil, Gas & Consumable Fuels

Management Participants

MD & CEO

Mr. Anish Chandaria

CFO

Mr. Murad Moledina

Our Analyst in the Call

Aditya Gupta

[email protected]

Company Allcargo Logistics Ltd.

INDUSTRY Construction & Engineering

14th Feb 2018 Q3FY18 EARNING CONFERENCE CALL


ED & COO

Mr. Prakash Tulsiani

CFO

Mr. Jatin Choskshi


Sandip Jabuani

[email protected]

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

♦Kandla 83,000 KL Liquid terminal has commissioned in Q3, and rest of 17,000 KL will be

commissioned in next month.

♦Management expects bigger revenue from Kandla terminal to be reflected from Q4FY18.

♦Haldia liquid terminal has contributed significantly in Q3 volumes and is expected to contribute

majorly in Q4. Both HPCL and BPCL are has strong uptake in Haldia.

♦Mumbai and Pipavav ports are at full capacity utilization.

♦New tenders for sourcing volume are at the advance stage, it may take few more months.

♦Management refrains from giving any capacity utilization at new terminals.

♦Revenue from ACCI Ltd. a JV Company is in line with management strategy.

♦Net debt on consolidated book is Rs.198 Cr

♦Kolkata CFS has commenced commercial operation in January and expect quick ramp up in

operation.

♦Crane utilization is 60% and management expects to improve going ahead.

♦Freight rate will not reduce further but will remain under pressure going ahead.

♦DPD cargo volume has settled down at lower level compared to higher in initial time.

Management expects recovery in CFS business.

♦Lease rental contract for Mundra CWC CFS is over and which will result into saving of Rs.2 Cr

quarterly.

♦Doubtful debtors’ provision of Rs.25 Cr for the first 9MFY18. No need for further provision.

♦Continue to evaluating inorganic opportunity in contract logistic business.

♦Rs.700-1000 Cr of capex requirement over next 3-5 years.

mailto:[email protected]


Company Apollo Tyres Ltd.

INDUSTRY Auto Components



CFO

Mr. Gaurav Kumar


Naveen Kumar Dubey

[email protected]

Company APL Apollo Tubes Limited

INDUSTRY Metals/Mining/Minerals

30th Jan 2018 Q3FY18 EARNING CONFERENCE CALL


MD

Mr.Ashok Gupta

CFO

Mr.Deepak Goyal


Sagar Sharma

[email protected]


♦Company expects EBITDA to average around Rs.3300-Rs.3400 (Rs.200 up/down depending

on market sentiments) in future.

♦EBITDA margin are expected to improve as customer move from standardized products to

customize products produced through DFT technology.

♦6 lines out of 8 lines of DFT are installed and last 2 lines are expected to be installed by April

2018.

♦Production through DFT currently at around 10-12% of total production and out of that 90% is

standard products with no customization.

♦Shifting of customers from standardized products to customized products would help in

improving EBITDA margin and this shifting would take 2-2.5 years.

♦Company expected to grow at 20% for next 3 years. Company is also focusing on Tier-2 cities.

Replacement (wood and concrete) market main focus area.

♦JV with Japanese company Daiwa Steel Tubes Industries called off because of Daiwa trying to

restrict APL Apollo’s geographical reach and marketing strategies, company said it would not

impact significantly as volume to be sold under agreement would have been around 3% of total

sales.

♦Company’s sales head has resigned due to personal reasons.

♦Order inflows from Nextracker JV. Arrangement between companies is as Nextracker gets

order to set up solar plant APL Apollo will get order for mounting products (Square, rectangle

pipe) through Nextracker.

♦GI volume decreased because shutting down of one galvanizing line for modification and is

expected to be functional in a month.

♦Company transfers increase in steel prices in a week’s timeframe and if increase in price is

significant (10%) then it takes about two weeks.

♦80% of sales through distributors and construction, housing, industrial, solar and transportation

sector being major consumers. Company has no significant plan for capex in near future.

Company keeps raw material inventory of around 45 days.

♦Hungary plant production has reached to 5000 tyres/ day and the management expect to close

the year at 7000 tyres/day.

♦The foundation stone was led for manufacturing facility in Andhra Pradesh on Jan 9, 2018. The

company plans to invest about Rs.2000 crores in the first phase.

♦Currently Chennai plant produces 9000 TBR tyres/day and it will go up by 11500 tyres/day by

the end of 2018. ♦Net Debt to equity stands at 0.25

♦Import of truck radials have come down to 50000 units from its peak of 150000 units per

month. ♦Tax rate is around 30% going ahead.

♦The growth in the passenger car segment will remain flat due to capacity constraints.

♦The management expect raw material prices to incrase in 4QFY18 and 1QFY19. So given the

strong demand situation there is possibility of price increase.

♦Contribution in topline: TBR currently would be about 35% and TBB would be 28%.

♦EBITDA margin of European operations is 12% and Refein margins stands at 5%.

♦Other expenses remain higher on account of higher production volumes and brand spend. The

revenue contribution from truck category increased to 62% from 60%.

Company Ashoka Buildcon Ltd.


31st Jan 2018 Q3FY18 EARNING CONFERENCE CALL


CFO

Mr. Paresh C Mehta

MD

Mr. Satish Parakh

Chairman

Mr. Ashok katariya


Sandip Jabuani

[email protected]

Company Ashok Leyland Ltd.

INDUSTRY Automobiles

2nd Feb 2018 Q3FY18 EARNING CONFERENCE CALL


Chairman

Mr. Dheeraj G. Hinduja

MD

Mr.Vinod K. Dasari

Finance & CFO

Mr. Gopal Mahadevan


Naveen Kumar Dubey

[email protected]

Narnolia Securities Ltd

♦The competitors are giving higher discounts to gain market share.

♦Capex guidance of Rs.650 crores for FY18.

♦Price hike of 1-1.5% in January 2018.

♦Due to higher demand for HCVs the industry is facing supply constraints from suppliers.

♦There are 500-600 BS-III vehicles are left to be exported out of 10600-10700 units.

♦Working capital days are 6-8 days.

Please refer to the Disclaimers at the end of this Report

♦Steel prices continue to increase. However the company revises its prices on quarterly basis to

protect its margins.

♦Currently overal market share stands at 33.4%.

♦Initially competitive intensity was high but currently it has come down.

♦Pickup in economic activity post GST, increased mining activity on Sambhalpur , Belgum

project and higher port trafiic one key project led the toll collection and it will likely to continue

for the next quarter.

♦90% land is available for Jharkhand Chaas project and project is moving up.

♦Company is in discussion with strategy partner for bid ToT.

♦Tax rate will be 22-24% in FY19 and increased in FY20 as revenue from 80IA will be reduce.

♦Maintain EBITDA M at 12.5-13% going ahead.

♦Ashoka is qualified for Lucknow-Balia and Nagpur Express way and will bid for the projects.

♦ASHOKA has participated in Rs.16000 Cr worth of projects and expect to win Rs.4000-5000

Cr.

♦Rs.120 Cr of equity requirement for FY19.

♦Payment of Rs.230 Cr suppose to received in December but delayed and which received in

Jan2018.

♦NHAI will not terminate Islampur Bypass project despite the agitation. Company will claim

losses due to time overrun as arbitration claim.

♦The management is confident of 10% volume growth in FY18.



Company Agro Tech Foods Ltd




President & CEO

Mr Sachin Gopal

CFO

Mr. Arijit Datta

Chairman

Mrs. Anna Elizabeth Biehn


Rajeev Anand

[email protected]

Company Aurobindo Pharma Ltd.

INDUSTRY Pharmaceuticals



MD

Mr. N. Govindarajan

CFO

Mr. Sudhir Singhi

IR

Ms. Deepika Gupta


Ritika Jalan

[email protected]


♦CSD sales is still sluggish but recovering

♦The company plans to added ~3000 distributors in longer term.

♦Tax rate in FY18&FY19: similar to previous year.

♦Tax rate in FY18&FY19: similar to previous year.

♦Kolkata plant is expected to complete by FY20.

♦US business - Injectables: Auropharma expects to attain 30% plus growth in FY18. A guidance

of US$ 180-185mn for FY18.Company is on track to achieve that guidance and expect US$ 50-

55mn for 4QFY18 The growth to come from enhanced volume through supply of injectables

that are in shortage (Tazobactam/Piperacillin and Pantaprazole injection), and launch of

Fondaparinux.

♦Europe formulations: As per the management a growth of 8%-10% on constant currency basis

will be sustained in near future. The growth will be driven by tenders and new product launches.

♦Net debt should be below US$475mn by the end of FY18E on account of the remittance from

Renvela generic sales.

♦R&D spending guidance of 3.6% in FY18 and can scale up to 4.5% of sales, when late stage

phase 3 clinical trials on biosimilar commence in FY19.

♦Effective Tax guidance at 26%-27% in FY18. Tax rate should hold at 25% level on account of

realisation of SEZ investment benefit in FY19.

♦Vancomycin:Delay in the Approval and should come around FY19 as guided earlier by the

end of FY18.

♦Unit 4 and Unit 12 is due for scheduled inspection by USFDA in next few weeks.

♦Modern trade grew by 21% for food business in this quarter.

♦This quarter, ATFL’s food business grew by 28% including all trade channels led by bouncing

back of traditional channels on account of expansion of distribution reach.

♦Presently distributor’s strength of ATFL (as of December 17), is 890, up by 31% from the

previous year same period.

♦Revenue from bag snacks in traditional channel recorded a solid growth of 116%YoY.

♦Food business growth in traditional channel was up by ~45% QoQ which was driven by strong

performance of peanut butter.

♦Present focus of management is to achieve 9% EBITDA margin.



Company Axis Bank Ltd.

INDUSTRY Commercial Banks

22nd Jan 2018 Q3FY18 EARNING CONFERENCE CALL


Deputy MD

Mr. V. Srinivasan

Senior Vice President

Mr. Suresh Warrier


Deepak Kumar

[email protected]

Company Bajaj Auto Ltd.




President (FINANCE)

Kevin D'sa


Naveen Kumar Dubey

[email protected]

♦The management expects 20-21% kind of margin is sustainable.

♦Capex guidance of Rs 250-300 crores every year.

♦Nigeria volumes are back on track and doing around 33000 units per month from earlier 12000-

15000 units. The growth guidance is 10-15% for next 1-2 years.

♦On the 3Ws side volumes to be around 30000 units per month.

♦The Company has around 645 main dealers and 3000 touch points. By June it may reach 700

dealer and 3300 touch points.

♦Management reiterated the 20 bps compression in NIM in FY18. Management continues to

maintain credit cost guidance for FY18 at 220-260 bps and expect it to normalize from 2Q FY19.

♦Out of the total corporate slippages of Rs 2980 Cr, 93% came from accounts rated BB and

below.

♦During the quarter there was no sale to ARC and SR book is at Rs 3000 Cr. Bank does not hold

any contingent provisions in its balance sheet.


♦Non fund based exposure to BB or below is roughly around Rs 5000 Cr.

♦Bank has exposure of Rs 6070 Cr against RBI’s both list referred to NCLT under IBC. The

total provisioning against these accounts is Rs 4123 Cr. There is no major non-fund based

exposure in these accounts.

♦The loan growth under corporate book was driven by strong demand in working capital loan

from better rated client.

♦Exports target for FY18 is 1.65 units and 10% growth for FY19.

♦CV 3.5 lakh units in FY18 and 5% growth for FY19.

♦Domestic motorcycles average runrate for 200000 units for next 2 quarters.

♦New Discover has potential to do 75000 units per month; but if it touches 45000 units by March

or April then it can touch 75000 units going ahead.

♦The management expects that the cost pressure on steel side will be there but it can be passed

on.



Company Bajaj Corp Ltd

INDUSTRYHousehold & Personal

products



MD

Mr. Sumit Malhotra

CFO

Mr. V C Nagroi

Promoter

Kushagra Nayan Bajaj


Rajeev Anand

[email protected]

Company Bajaj Finance Ltd.

INDUSTRY Diversified Financial Services



CEO & MD

Mr. Rajeev Jain

CFO

Mr. Rajesh Viswanathan

COO

Mr. Pankaj Thadani


Sweta Padhi

[email protected]

♦Business from Canteen Stores Department (CSD) has declined by 2.7% in this quarter,

however better than previous 2 quarters. Now it recovering but timing of full recovery is still not

clear. Company’s direct reach has gone up as it has added 300 sales representatives.

♦Nomarks has shown a growth of 122% in UP market in Q3FY18 led by distribution expansion

and brand building.Enthused to this, management plans to launch it in other states.


♦RBL ties up to increase to 1 million card by Mar 19.

♦Fee income to increase by tie up through 5 insurance businesses.

♦BFL to raise Masala Bond to diversify liability profile.

♦2w & 3w business collection has increased.

♦2500 Cr of NCD to mature next year.

♦Growth in rural market remained weak. For Light Hair Oil(LHO), rural volume growth was

down to 0.5% in this quarter.

♦Opex to stay in the range of 39-40%, though in Q4FY18 it may increase marginally.

♦BHFL will become 16000-18000 Cr in Mar, and 60000-70000 Cr in next 4-5 years.

♦BHFL is present in 160 cities.

♦LAP bucket to remain in 125-160 bps, management is cautious for next 2.5-3 years.

♦Q3FY18's revenue growth is not comparable as sales value last year had been netted of 14% of

VAT, however this year GST rate was 18%.

♦The rural demand is expected to come back in Q1FY19 post the Rabi crop,government

initiatives in terms of MSP and other likely announcements in the upcoming Budget.

♦BAJAJCORP is planning to become well diversified FMCG Company from a Hair Oil based

company. For this, company will launch new product in every quarter and expand its footprint in

different categories.

♦LLP cost is inching up, at current price it is up by 72% while refine mustard oil price declined

by 9%. The company stocked heavily LLP in last quarter which will cover till march 18.

♦If inflation in crude remains at elevated level, company may take price hike in April18.

♦Company’s International business has de grown by 44% YoY due to sluggishness in MENA as

well Nepal business.



Company Biocon Ltd.




Chariman & MD

Ms. Kiran Mazumdar Shaw

Head, IR

Mr. Saurabh Paliwal


Ritika Jalan

[email protected]

Company Britania Industries Ltd.

INDUSTRY Food Products



CFO

Mr. Amlan Datta Majumdar

Investor Relations

Mr. B K Guha

Head Supply Chain

Mr. Vinay Singh Kushwaha


Rajeev Anand

[email protected]

♦Cash and cash equivalent till date: Rs 1800 cr, Inter corporate deposit: Rs 410 cr(yield on

corporate deposit is little higher than 10%).

♦The company has launched` Pure Magic Deuce’ (first to market product in the country)in

Q3FY18 which is doing very well.

Management has applied for the fiscal benefits of its mega food Park in Ranjangaon,

Maharashtra. Approval is expected in 1-2 months time.

♦Cost saving in FY18 remains Rs 230 cr. For next year, management expects saving more than

previous year.

♦Category growth for this quarter remains single digit.

♦Guwahati (Assam) and Mundra plant are expected to complete in next month.

♦Dairy business is in the validation phase. The company has started procurement of milk from

25000 farmers.

♦New product launches will not have impact on margin.


♦Capex would remain high for the next 2-3 years (new biological facility + ~USD200mn for

phase 2 expansion of Insulin facility in Bangalore).Maintenance CAPEX will be 100Cr in FY18.

♦Maintained USD200m of revenue guidance from Biologics in FY19E; majority of revenue

contribution will come from emerging markets whereas revenue related to initial supply to

developed markets can come in FY19.

♦Witnessed sluggish sales in API on account of pricing pressure and channel consolidation in

the US which has impacted small molecule business.

♦Management is confident the company’s biosimilars business will bounce back starting from

FY19 in US and Europe.

♦Biocon becomes the first company from India to get its biosimilar approved by the USFDA.

♦Malaysian facility has also received GMP approval from ANVISA for both drug substance and

Drug Product.

♦Company expect growth in other segments to revive from early next fiscal.

♦Expect Syngene to close FY18 by strong Momentum.

♦Biocon will be incurring gross R&D spends ~INR450-500 Cr in FY19 & FY20.

♦Received Insulin Glargine approval in Russia, one of the Top 3 emerging markets, will pave the

way for the drug product launch later this year.

♦Premium biscuit segment and weak states are growing faster.

♦Management will not take any price hike in coming 3 months.

♦In this quarter, company’s direct reach went up to 1.75 mn outlets.

♦Bread segment maintained its momentum and grew by double digit in Q3FY18.


Company Cadila Healthcare Ltd.




Chairman & MD

Mr. Pankaj Patel

CFO

Mr. Nitin Parekh


Ritika Jalan

[email protected]

Company CANARA BANK




MD & CEO

Mr. Rakesh Sharma


Anu Gupta

[email protected] ♦Credit cost will be tried to restrict below 1%.

♦As on Dec 17 SDR includes 46 cases amounted to 5171 crore, S4A -11 cases 2300 crore and

5/25 -13 cases 6817 crore.

♦NCLT 1 total exposure of 10224 crore and NCLT 2 exposure is 5000 crore.Provisions made is

4827 and 1947 crore respectively.

♦SMA-2 amounts to 14829 crore which includes SDR and S4A numbers.

♦Power sector NPA amounted to Rs 1280 cr which is 4.24%.

♦Standard restructured book-7000 crore.

♦40% of GNPA resolution process is started.

♦Bank has decided to raise QIP of 3500 crore in March18.

♦Plan to divest all 30% or 25% of the share of CANFINHOME for better provisioning.

♦Retail growth is due to 80% of the new customer.

♦Technically write off pool-16.5 crore.


♦The Company expects double digit growth for India Business in Q4FY18.

♦Management expects US base business price erosion in single digit in FY18E. For 3QFY18 US

base business price erosion was at 4%.

♦R&D costs are guided to be in the range of 7%

‐

8% in FY18E despite requirements of many

clinical trials of NCE molecules and biosimilar products in regulated markets (Q3FY18 R&D

Expense-6.4%).

♦Management has guided for 22%-27% effective tax rate in FY18E and FY19E due to tax

benefits from newly commissioned facility.

♦Management has guided for capex of Rs1000Cr in FY19 due to expected approvals from

Moraiya and Baddi plant, which would require additional capex.

♦The Vaccine sales are likely to start from FY19 in India. The management expects ~US$200

million vaccine opportunity in the next three to five years mainly from the tender business.

♦The Company expects to launch 10-12 products in 4Q2018 in the US and going forward every

quarter 10-12 product launches.

♦The Company expects to receives approval for gToprol XL (CVS) coming soon.

♦Marginal YoY decline in deposits of 1.26% to improve the efficiency ratio.

♦Although there was growth of 12.5% of advances the risk weighted asset has grown by only

4.05%. RWA to gross advances has come down to 91.27% .This is mainly because of the

realignment of advances.

♦NIM has shown a robust growth of 52.4% due to higher income tax refund of 739 crore during

this quarter. In March 18 NIM is expected to be in the range of 2.45-2.50%.

♦Slippage stood at 2641 crore due to 1 A/c of 678 crore either wise it would be below 2000

crore. It is expected by March 18 to be upgraded or the amount will be recovered.

♦Under 1st list of NPA -12 A/c amounted to Rs 10224 crore and list 2 amounted to Rs 5101

crore.

♦Cash recovery during the quarter amounted to 1527 crore.



Company Castrol India Limited

INDUSTRY Chemicals



MD

Omer Dormen

CFO

Rashmi Joshi


Aditya Gupta

[email protected]

Company CEAT Ltd

INDUSTRY Auto Components



MD

Mr.Anant Goenka

CFO

MR. Subba Rao


Naveen Kumar Dubey

[email protected]

♦The company has added a new model Honda Grazia to its kitty

♦Debt to Equity ratio stands at 0.3:1. The company repaid Rs.230 crores in FY18.

♦ Capacity utilization for new facilities at Nagpur and Halol stand at 60% and 75% respectively.

♦TBR and TBB capacities are running at 100% utilization level since last quarter. The new TBR

facilty to come up in 3QFY19.

♦Capex in FY18 to be Rs.500-600 crores and Rs.1500-1700 crores in FY19 largely towards

capacity expansion. The capex in FY20 would be around Rs.600-800 crores.

♦Castrol India has entered strategic partnership with Renault and to supply lubricants.


♦Personal mobility and commercial vehicles segment continues to grow in double digit and

management expects that volume will grow at a higher rate than the industry which is 4%.

♦Company has increased price by about 4% in Jan 2018 to pass on the incremental COGS. This

is the second hike in last one year.

♦Increasing crude oil price may impact margins very slightly in next quarter. But majority of the

cost hike will be passed on.

♦Maintenance capex guidance for CY18 is Rs.100 Cr.

♦Advertisement exp. will be in the range of 4-6% in CY18.

♦Management has guided for 100bps rise in market share in replacement market.

♦Management does not see any impact on volume in next 10 years on the advent of electrical

vehicles.

♦The management expects industry to grow at double digit in the current and the next financial

year, considering the strong demand from passenger vehicle and commercial space.

♦Political condition in Brazil and Latin American market has improved and the management

expect these markets to start contributing in the exports revenues in near future.

♦The management expects 5-6% increase in raw material basket in 1QFY19 on sequential basis.

♦The company has not taken any price hike in 3QFY18.

♦Ambernath facility have started production and once the production level reaches to 40% then

it will start contributing to the margins. Till then it will have higher fixed cost and depreciation

on the this facility.

♦Tax rate will be in the range of 32-33% for FY18.



Company Century Plyboards (India) Ltd

INDUSTRY Paper & Forest Products

6th Feb 2018


MD AND CEO

Mr. Sanjay Agarwal

CFO

Mr. Arun Kumar Julasaria

Ex. Director

Mr. Keshav Bhajanka


Pramila Lakra

[email protected]

Company

Cholamandalam Investment &

Finance Company Ltd




MD

Mr.Vellayan Subbiah

Executive VP & CFO

Mr. Arul Selvan


Deepak Kumar

[email protected]

Q3FY18 EARNING CONFERENCE CALL

♦Average ticket size in home equity has declined to Rs 49 Lakh from Rs 50 Lakh.

♦Management does not intend to raise capital in next one year and thinks internal accrual is

sufficient to support growth.

♦Forex loss during the quarter was 8 crores.

♦Estimated completion of door project will be in FY19. (CAPEX is 60 crores).

♦Total CAPEX for FY19 is Rs 156 crores.

♦1 out of 2 expansion lines in Laminate segment has started operations from 21st January 2018.

♦Production of MDF segment in Punjab has started in October 2017 (contributed 11% in top line

in 3QFY18).

♦GST was the trigger of higher sales in 3QFY18 (Reduced to 18% from 28%).


♦Expansion plan: 2 MDF Plants will be open in FY19. One is in UP and another is in Assam

(MDF will be out of bamboo) and more new plants planned for FY19.

♦Working capital cycle has improved to 61 days (65days in 2QFY18).

♦Management expects further reduction in NPA in March quarter. Focus is on collection

efficiency. Taking lot of steps to improve NPA in Home Equity portfolio.

♦Home equity branches are 130 and targeting to do it 200 in next 7-8 months. Prime focus is on

geographical expansion.Company has 43 repossessed assets worth Rs 75 Cr which are in the

process of sale. Most of the property is in auction stage.

♦CV industry has improved and if growth sustains then CHOLAFIN will have strong growth

going forward.

♦Management expects incremental cost of fund to increase by 25 bps.

♦Management intends to increase PCR to 40-45% if NPA declines.

♦Movement in Sainik brand will be seen from H2CY18.



Company CIPLA Ltd.




MD & Global CEO

Mr. Subhanu Saxena

GLOBAL CFO

Mr. Rajesh Garg

HEAD, IR

Mr. Anant Atal


Ritika Jalan

[email protected]

Company City Union Bank Ltd.




MD & CEO

Dr.N. Kamakodi

CFO & CS

Mr. V Ramesh


Anu Gupta

[email protected]

♦Company filed 2 products in Q3FY18 taking the 9months count to 10 filings; expecting to file

10+ products in Q4. The company expects 20 ANDA filings in the US in 2019 and at least one

differentiated product launches every quarter.


♦Cipla grew ahead in South Africa private market at 11.1% in the private market vs 10.3%

market growth; as per IMS MAT Dec’17.

♦Cipla flagship respiratory product, FPSM, its in Australia is gaining traction; targeting to

increase market share in FY19.

♦Advair trials progressing smoothly, two additional clinical trials in US to begin soon.

♦Company is tapering down its Capital Expenditure. Guided for Rs 850-900 Crore of capex for

FY18 .Till now Rs750Cr Spent.

♦Guided for 8%-9% R&D spending of total sales for FY18 (FY17-7%-7.5%). Ramp-up in R&D

investments is mainly due to certain clinical trial to begin in H2FY18.

♦Focus on building a strong Specialty portfolio for US continues with certain assets in advanced

stages of discussion in Neurology and Respiratory space

♦During Q3FY2018, no account has slipped to NPA and 1 account has completed its 2 years of

restructured standard period to the tune of Rs.430 crore.

♦CASA declined by 3% YoY mainly due to base effect on demonetization period of last year.

♦The bank has provided Rs.67.8 crore during 9MFY 2018 and as at 31st Dec 2017 the total

outstanding provision towards SR is Rs 117.5 crore.

♦Received income of Rs 2.6 crore by sale of PSLC certificate during the quarter.Expects PSLC

opportunity for the future.

♦Credit growth for the FY18-15-18% and for next year-18-20% if the trend goes in the same

level.

♦Increase in term deposit will be seen going forward and Max CD ratio will be 85%.

♦The Bank does not have more than 50 crore in the watchlist.

♦During 9M FY2018, the repayment received from ARC in SR amounted to Rs 4 crore.



Company Cyient Ltd

INDUSTRY Software & Services



Ex Chairman

Mr. BVR Mohan Reddy

MD & CEO

Mr. Krishna Bodanapu

CFO

Mr. Ajay Agarwal

Our analyst in the call

Niharika Ojha

[email protected]


♦Tailwinds for EBITDA margin are [1]Utilization has improved,[2]offshore mix revenue is

increasing,[3] hiring of onsite job.

♦The order intake for Cyient has been picking up indicating continued momentum in the next

quarter and beyond. The management is expecting strong order book for DLM business.

♦DLM Growth expected to grow in 4QFY18: DLM performance declined by 23% QoQ to

USD12m in 3QFY18. However, 20% volume growth guidance for DLM was maintained as

orders got pushed into the next quarter. This would result in 80-90% QoQ growth in DLM in

4QFY18

♦Verticals: Growth was broad-based by seven out of eight service units growing in double-digits

YoY. Services business was sanguine, grew by 4.2% QoQ during the quarter despite the typical

seasonal weakness seen in 3QFY18.Aerospace & Defense saw strong growth in 3QFY18 on the

back of growth in non-top customers, new accounts and commencement of work in defense.

Growth in the vertical would continue to be driven by avionics, aftermarket, manufacturing and

defense. Communications: positive momentum will continue in FY18 and beyond. Utilities

and Geospatial: Strong traction was seen in 3Q. Good opportunities in the vertical should

continue translating into healthy traction. Transportation: Strength has been seen in the areas of

rolling stock and signaling. During the quarter, Cyient signed up one larger OEM. Ongoing

strategic projects with the top 5 rail OEMs globally lend confidence of continued strength going

forward.

Outlook for the year FY18

♦For Rangsons, the growth guidance stands at 20%, after it having achieved 39% YoY growth in

FY17.

♦Margins are expected to expand by 50bp led by operational efficiency improvements. DLM is

expected to break-even in terms of profitability.

♦From FY19 onwards, the reduction in ETR due to US tax rate change is expected to be 1%.

♦Outlook for FY18 is strong backed by a strong pipeline and order backlog.

♦Cyient had guided for double-digit growth in the Services business similar to what was

achieved in FY17.


Company Dabur India Ltd.

INDUSTRY

Household & Personal

products

31st Jan2018


CEO

Mr.Sunil Duggal

CFO

Mr. Lalit Malik

Our Analyst

Rajeev Anand

[email protected]

Company DB Corp Ltd.

INDUSTRY Media

18th Jan 2018


Group CFO

Mr. P G Mishra

Deputy MD

Mr. Pawan Agarwal


Rajeev Anand

[email protected]


♦Real Estate contribution to total revenue went down from ~10% earlier to 5% in this quarter.

The company is planning to add another 2-3 Lac copies in next quarter.

♦Investment of Rs 25 cr went towards expansion of number of copies largely in Bihar and

Gujarat in Q3FY18. This expense will come down drastically in coming quarters.

♦Categories remained laggard in this quarter were Real Estate (down by 40%), Education

(down by 7%) and electronic (down by 20%).

♦Company has witnessed strong double digit(~15-16%) growth in the month of December till

Jan 18. Real estate and lifestyle has started coming back in the month of December and January.

♦Going forward, management expects stabilization of beverages volume with double digit

growth on account of urban demand recovery.

♦CSD is still under pressure.

♦Do not see much of the Patanjali impact on Oral Care business.

♦The company is ready to lose some margin in food business for the top line growth.

♦Business from Algeria and Yemen to come back in Q4FY18.


♦Margin : The company will maintain margin in Q4FY18 as it has low price inventory. Will take

up prices in line with the inflation numbers, and that would happen early in Q1 of next year

(Q1FY19).

♦Excluding canteen stores sales, growth of Honey remained 40%. Showing signs of recovery.

Trajectory will continue.


♦Personal application category is highly under penetrated. Its size in ~Rs 100 cr.

♦Execution to drive market share gain going ahead. Management expects double digit growth

from rural market going ahead. Natural space is growing much higher than non-natural.

♦Company is regaining its lost market share in oral care very rapidly in UP.

♦The company has recovered almost entirely lost ground in honey by better products and

pricing.

♦Hair oil entire growth was volume led except coconut oil driven by LUP.

♦The company has added ~600000 copies in its circulation since July 17, up by 12% on high

base. In July,it was 50.4 lac which increased to 56.39 lac copies in December. Management has

been maintaining the momentum and in the month of Jan circulation copies reached to 57 lac.

♦The second phase of Bihar launch has been completed. The company has extended its

presence in all 38 districts of Bihar.

♦Newsprint cost: company envisages 7-8% newsprint cost inflation in FY19.

♦Radio business went down due to de growth of 7%in government advertisement and shift of

some festivals in the second quarter.



Company DCB Bank Ltd.




MD & CEO

Mr. Murali Natarajan

CFO

Mr. Bharat Sampat

Head Marketing & PR

Mr. Gaurav Mehta


Anu Gupta

[email protected]

Company DCM Shriram Ltd.

INDUSTRY Diversified



Chairman & MD

Mr. Ajay Shriram

Joint MD

Mr. Ajit Shriram


Ritika Jalan

[email protected]

♦Mgt is positive on SME growth.

♦Management is hopeful that pricing pressure on sugar will come down from middle of

February.

♦For the Fenesta segment outlook is positive because of the Improvement in the overall

economic scenario and uptick in the Real Estate sector which will enable higher penetration of

UPVC window offerings.

♦As of now the price of sugar price is still hovering between Rs. 33-32.5 / per kg.

♦Company expects to sustain the trend of high capacity utilization (~ 100% capacity utilization)

at Bharuch for chemical Business.

♦Capacity expansion of Chlor-alkali at Kota (84TPD) and Bharuch (146TPD) at an investment

of Rs98Cr. Bharuch expansion is expected to be completed by Q1FY20 and Kota by

Q2FY20.These projects underway- are progressing as per plan.

♦Domestic prices will follow global price trends. The prices of PVC as well as Carbide will be

stable going ahead.

♦The 150 KLD Distillery project at Hariawan unit will be commissioned by end of Jan’18.

♦As on 30th December sugar was valued at Rs. 3350 per quintal and the inventory was 12lakh

quintals.

♦Mgt expects to double loan book in 3-4 years.


♦Incremental yield on advances-11.25%

♦No sale to ARC in this quarter.

♦Cost to income ratio in this quarter is high due to raise of capital of Rs 5 crore which also

includes rating agency cost.

♦Plan to add 10-15 branches in the coming quarters.

♦There will be delinquency pressure on LAAP. Average ticket is 40-50 lakh.

♦Improvement in Cost of fund will not be seen.

♦Credit cost is maintained at 50-60bps and is aimed to be in this trend.

♦Addition of 800 employees in 1 year.

♦Slippage run rate 2-2.1 % ignoring Rs 15 crore of corporate loan.

♦NIM is expected to be slightly lower.

♦Target for CASA ratio -25%

♦20-21% growth is possible in mortgage loan.

♦Fee income grew due to ATM fee charges.



Company Deep Industries Ltd.

INDUSTRY Energy Equipment & Services



CMD

Mr. Paras Savla

CFO

Mr. Rohan Shah


Aditya Gupta

[email protected]

CompanyDewan Housing Finance

Corporation Ltd.


23rd Jan 2018 Q3FY18 EARNING CONFERENCE CALL


CEO

Mr. Harshil Mehta

CFO

Mr. Santosh Sharma


Deepak Kumar

[email protected]

♦Entire SME portfolio of DHFL is securitized.

♦Management believes securitization and liability structure will help in sustaining NIM.

♦Government has launched first bidding of exploration blocks after 8 years. Govt. has invited

bids for 55 blocks and has received 57 expression of interest for various blocks. Two-thirds of

blocks are onshore. Shortlisted names of the company for award mend of blocks will be declared

by the end of May 2018.

♦Second round of auction for 61 blocks will be offered next year.

♦Deep industry has incorporated a new subsidiary DMCC in Dubai for exploration. Recruitment

of manpower has already started and company is now contacting major vendors in middle-east

countries.

♦Prabha energy deal is working on schedule and drilling is expected to be started in next 2

months i.e from May 2018.

♦Current Order book outstanding is Rs.604 Cr. without adjusting order terminated by ONGC.


♦Mgt. do not see that ongoing issues with ONGC to impact any business with other oil PSU’s.

♦Mgt. expect that even in worst case if everything goes unfavorable in ONGC case then also

company will be able to diversify its portfolio through oversees projects & its subsidiaries.

♦Management expect a huge orderbook in a month timeframe.

♦Revenue from CBM block is likely to start coming from next fiscal.

♦Targeting Disbursement growth of 27-28% and AUM growth of 22-23% going forward.

♦Affordable housing will be key driver for HFCs.

♦Management is optimistic to continue healthy growth in core home loan segment.

♦Targeting 50-100 bps reduction in C/I ratio over 18-20 months.

♦Margins were dipped in Q3 due to higher repair and maintenance cost which is routine in

nature. Mostly repairs and maintenance occurs in the second half of every year.

♦Management is witnessing real estate price appreciation in the market of Tier 1&2 cities.

♦DHFL is adequately capitalized for 18-20 months growth story and there is no requirement of

capital in near term.

♦Disbursement breakup- Project loan- Rs 1940 Cr, Core home loan- Rs 5755 Cr, LAP -Rs 2325

Cr and SME- Rs 827 Cr.

♦Incremental Yield in LAP is 11.3% and Core home loan is 9.3%.


Company Dhanuka Agritech Ltd.

INDUSTRY Agrochemicals



Chairman & MD

Mr.Ram Gopal Agarwal

Joint MD

Mr.Mahendra Kumar Dhanuka


Ritika Jalan

[email protected]

Company Dilip Buildcon Ltd




Ex Director & CEO

Mr. Devendra Jain

CFO

Mr.Vaibhav Rawat

Head – Strategy & Planning

Mr. Rohan Suryavanshi


Sandip Jabuani

[email protected]

♦Working capital days has gone up during the quarter due to delay in payment receipt and

deferment in mobilization advances due to non declaration of appointment date.

♦Order Inflow in FY19 will be Rs.8000-10000 Cr and revenue growth in FY19 will be 15-20%.

♦Rs.200 Cr was received during the quarter from BoT assets sale; this was utilized for working

capital. Another Rs.200-250 Cr will receive in Q4FY18.

♦Expect bonus of Rs.65-70 Cr in Q4FY18 as CoD on 4 projects will be achieved.

♦Tax rate will be 8/20/33% in FY18/FY19/FY


♦The Company expects FY18 tax rate of around 27% and for FY19 it estimates full tax rate of

28.5-29%.

♦Prices of most RM have increased and the management believes there should not be further

price increases beyond March’18 onwards.

♦Management maintains top line guidance of 10% in FY18.

♦Management is expecting that the Rabi Season will be good especially in south and east India.

♦The company has launched 3 new products in 3QFY18 (Swello,Finoex wheat herbicide and

spectrum fungicide) and plans to launch 1-2 more in 4QFY18.

♦Paddy acreages especially in south India are expected to be higher compared to last year due to

better water availability.

♦Management is looking at 5-6 products launches every year and 1-2 9(3) and 9(4) launches

over the next 3 years.

♦Combination products will also be introduced in the next financial year to control plant

diseases in various crops.

♦Maintain order inflow guidance of Rs.8000 Cr in FY18 with Rs.7000 Cr plus revenue in FY18.

♦Debt as on 31st December 2018 was Rs.3165 Cr and it will reduce to Rs.2600-2700 Cr by the

year end.

♦Appointment date of couple of HAM projects were delay and expect to receive by March.

♦9MFY18 capex was Rs.229 Cr and expect to do Rs.50 Cr in Q4FY18. Capex requirement in

FY19 will be Rs.130-140 Cr.

♦Issued Rs.600 Cr of NCDs during the quarter at coupon rate of 8.09% for the period of 5 years.



Company Dishman Carbogen Amcis Ltd.




CMD

Mr. Janmejay R Vyas

MD & CFO

Mr.Arpit Vyas


Ritika Jalan

[email protected]

Company Dr Reddys Laboratories Ltd.




President, CFO and Global

Head of IT&BPE

Mr. Saumen Chakraborty

VP Finance

Mr. MV Narasimhan

Chairman

Mr. Satish Reddy


Ritika Jalan

[email protected]

♦Annual Tax Rate 23%-25% in FY18 as guided earlier.

♦For R&D expense management has guided for a US$ 300mn spend in FY18E.

♦Company has responded to the queries sent by the regulatory agency on Srikakulam site.

♦Three major limited competition generic opportunities that include copies of Nuvaring,

Suboxone and Copxone 20 mg and 40 mg to drive growth in the coming quarters.


♦Management guided for 2 further commercial launches in the next 6-9 months.

♦The expansion of development capacities in Carbogen Amics (to be completed by 1QFY19) is

likely to ease constraints (currently 95% utilization), and management expects double-digit

growth in this segment starting FY19E.

♦Management expects a strong 4Q from the India CRAMs segment on the back of higher

commercial sales of niraparib and sales of eprosartan which were pushed from Current to the next

quarter.

♦Company also revealed that the Switzerland facility is likely to undergo a Pre-Approval

Inspection (PAI) in April 2018, as a US based customer has filed an NDA for a CNS drug which

is approaching commercialization.

♦Company has possibly around 15-16 molecules which would essentially turned into a long term

visibility revenue as and when they will be launched.

♦Continue to have healthy order book across all business segments.

♦In Marketable Molecules management expects growth to be flattish for FY18E.

♦Interest expense declined by 4.4% YoY from Rs 13.39 Cr in Q3 FY17 to Rs 12.8Cr in Q3

FY18 driven by conversion of higher cost rupee loans into lower cost foreign currency loans.

♦Management has guided for flat to low single-digit growth on the top-line for FY18E.

♦Dr Reddy's expects US FDA re-inspection of Duvvada oncology injectable formulation facility

near Visakhapatnam plant in next 3-6 months.

♦Generic versions of Aloxi, Alimta, Faslodex, Gleevec, and Jevtana among others are filed from

that facility.

♦In Emerging market the management remains positive on this segment and plans to enter 4-5

new markets in FY19E.

♦Foreign exchange gains of Rs 17.45 Cr recognized in other operating income.



Company Eicher Motors Ltd.




MD & CEO

Mr. Siddhartha Lal

CFO

Mr.Lalit Malik

Chairman

Mr. S Sandilya

Our Analyst

Naveen Kumar Dubey

[email protected]

Company EID Parry (India) Ltd.

INDUSTRY Food Products



MD

Mr. S. Suresh MD

CFO

Mr.V. Suri


Pramila Lakra

[email protected]


♦Volvo Eicher Commercial Vehicles plant is running at 100% capacity.

♦Expected cane crushing for CY18 is 37 MT.

♦Additional cane price in Tamil Nadu and subdued cane crushed in 2QFY18 affected the

profitabilty of Sugar division in 3QFY18.

♦Company has announced a JV with Synthite Industries Ltd, Cochin on 31st Jan,2018, to grow

business as a value-added Algae company. This will set up in Tamil Nadu as a manufacturing

facility with a CAPEX of Rs.40 Crores.

♦Sugar prices has come down heavily because of the expected high production for the country

for the Sugar year 2017-2018.

♦CAPEX for FY2018 is Rs.60 crores.

♦Total debt till 31st Dec 2017 : Long term-636 cr and Short term-92 cr.

♦For CY18, Sugar Division (expected): Opening -4 million tonne, Production- 26-27 million

tonne, Consumption-25-26 MT, Closing-6 MT.

♦Current realization of Sugar is Rs. 32.

♦Market share: (a) in 3.5-5 tonne- 27.6% ; (b) 5-15 tonne- 30.7% ; (c) above 16 tonne- 4.4% ;

(d) bus segment- 14.8%.

♦Bio Pesticides division will be completely shifting to Coromandel International

Ltd.(Subsidiary) on 1st April 2018 for a consideration of Rs.338 crores.

♦Commercial vehicles demand is driven by infrastructure development, mining sector and e-

commerce.

♦The management expects strong growth in 7 out of top cities where it has 2-4% market share.

New upgrades, as well as dealership network expansion, will drive the growth going forward.

♦Price hike of 1% was taken on all 350 cc models from 1st Feb 2018.

♦Total capacity of RE stood at 900000 units.

♦The Company opened six new exclusive stores in the overseas market and the total store count

reaches to 35.

♦The Company will launch 650 cc twins in April 2018 in the European and US market.



Company Equitas holdings Ltd.


1st Feb 2018 Q3FY18 EARNING CONFERENCE CALL


Chairman & MD

P N Vasudevan

CFO

Ms Srimathy Raghunathan


Sweta Padhi

[email protected]

Company Escorts Ltd.




CEO-ESCORTS AGRI

MACHINERY

Mr. Ravi MenonCEO-ESCORTS

CONSTRUCTION EQUIPMENT

Mr. Ajay MandahrCEO-RAILWAY PRODUCT

DIVISION

Ms. Dipankar Ghosh


Naveen Kumar Dubey

[email protected]

♦The pressure on the commodity side continues and the company would take a call based on the

competitive intensity.

The company will be debt free by FY19. The company sold its 2.94% stake of Escort Benefit

Trust for a consideration of Rs.252.4 crores and the sum will be used for acquisitions.

♦Replacement cycle for agri machinery is 7-8 years and for non agri it is 5 years.

♦The company does not expect major changes in gross margins.

♦Electric tractor commercial launch in next 12-18 years.

♦ECE: 14-15% growth for FY19. Margin guidance of 3-4% for FY19 and 7-8% for long term.

♦Railways: Order book of Rs.330 crores and it will be executed over next 12 months. Margin

stands between 14-15%.


♦Retail TD is 23% of Term Deposit.

♦Opex is going to grow at 15-18%, because of few branch expansions.

♦MFI to become 1/3 rd of the portfolio.

♦MFI Disbursement is 1120 Cr, Total disbursement is 1550 Cr .

♦12000 Cr NIM Premium ac is launched, with portfolio of 170 Cr.

♦Gross yield will decline, Net yield will remain same.

♦Yield on SLR is 6.4, Non SLR is 7.76.

♦Out of 13500 total employee, 3500 are in liability side.

♦Agri Machinery: 15-16% industry growth in FY18. 7-8% growth for FY19.

♦Market share target for next 4-5 years is 14-15%. Currently 15% business comes from new

products and in the next FY the contribution will increase to 30%.

♦Margin guidance of 14-15% for FY19 and beyond that it can sustain over double digit.

♦Industry growth for tractors may be flattish in FY20.



Company Federal Bank Ltd




Chairman & MD

MR. Shyam Srinivasan

ED & CFO

MR. Mr. Ashutosh Khajuria


Deepak Kumar

[email protected]

Company GAIL (India) Ltd.

INDUSTRY Oil, Gas & Consumable Fuels



Director (Finance)

Mr. Subir Purkayastha

ED (Marketing)

Mr. A K Manchanda

ED (F&A)

Mr. R C Gupta


Aditya Gupta

[email protected]


♦For unified tariff PNGRB has called for comments from various stakeholders. At current public

consultation is ongoing. It is just matter of time for the decision to be made.

♦Petchem plant PATA-2 has been interrupted due to power supply disruption, management has

guided for both PATA-1&2 to clock 100% utilization in FY19.

♦On Kochi pipeline, all contracts have been awarded and project is expected to complete much

before expectation ie Dec 2018.

♦Market Share in Advances increases to 1.01% up by 6bps Y-o-Y and Market Share in deposits

increases to 0.91% up by 3bps Y-o-Y.

♦Pool of education loan in KERALA has some stress which has slipped into NPA category in

3Q FY18. The slippage was led by loan subsidy sentiment which state Government announced

earlier. The deadline for subsidy is 31st January. Barring slippages from education loan, assets

quality in retail portfolio remained healthy. State Government announced subsidy early in July

2017. However as a proactive measures management had provided provisions in previous

quarter only. Rs 500 Cr is education exposure in Kerala.

♦Security Receipt at book value is Rs 870 Cr of which only Rs 95 Cr has been provided.

Management expects some provisions to occur on SR book as it migrates to further level of

assets classification.

♦GST impact of Rs 50 Cr in Q4 due to un availability of input credit.

♦Most of US volumes placed for CY18; few cargoes to land up in India from March2018.

♦One time provision of Rs 80 Cr for take-or-pay to be paid to one vendor.

♦RBI has done audit related to divergence. Result has not been released yet. Management

doesn’t expect dramatic divergence in the report.

♦Management may announce within two months the strategic investment deal in its NBFC

subsidiary Fedbank Financial Services. Under IDBI Federal value discovering is going on.

♦Focus on strengthening distribution model rather in increasing branch network.

♦Under corporate slippages there were 3 accounts each amounting in the range of Rs 30-35 Cr.

Management expects one account to get upgraded very soon.



Company Gayatri Projects Limited




MD

Sandeep Ready

CFO

Mr. P Sreedhar Babu


Sandip Jabuani

[email protected]

CompanyGlenmark Pharmaceuticals

Ltd.




Charirman & CEO

Mr.Glenn Mario Saldanha

VP & Head-Corporate

Strategy & IR

Mr. Jason D'Souza

CFO

Mr. Rajesh Desai


Ritika Jalan

[email protected]

♦EBITDA margin will remain in range of 15.5-16%.

♦Standalone debt is Rs.2000 Cr.


♦Currently, 60% land is available and by the year end management expects 100% land

acquisition on Varanasi Projects.

♦On the track to achieve 15% revenue growth of 15% in FY18 with EBITDA margin of 15%.

♦GPL has submitted bid of Rs.6000-7000 Cr

♦Revenue will be 3000-3200 Cr in FY18 and 4500 Cr in FY19.

♦Capex requirement in FY19 is 100 Cr.

♦Average cost of debt is 11%.

♦Company has 188 USFDA filings as on 3QFY18. Till 3QFY18 the company has received

approvals for 130. Out of the 58 pending ANDAs of which~26 are Para IV applications.

♦Pricing Erosion in US base business is expected at double digit ~13% in next five quarters.

♦Company guided R&D Expense for 11.5%-12% of sales in FY18 and 12% of sales in FY19.

♦The management expects improvement in the margin in FY19 and 15%+ revenue growth in ex-

US geographies.

♦The management expects double digit margins with strong growth in LatAm from FY19

onwards due to new launches.

♦ Multiple out-licensing deals is expected in the next 12- 15 months.



CompanyGodrej Comsumer Products


products



MD & CEO

Mr . Vivek Gambhir

Head finance,India & Saarc

and Investor Relation.

Mr. Sameer Shah


Rajeev Anand

[email protected]

COMPANY Gujarat Pipavav Port Ltd.




MD

Mr.Keld Pedersen

General Manager (Finance &

Accounts)

Mr. Santosh Breed


Sandip Jabuani

[email protected]


♦No plans of raising prices in the near term.

♦The company is planning for new launches in Home Insecticide(HI) segment in 6-12 months

horizon.

♦Secondary sales remained higher than the primary sales in this quarter.

♦Indonesian business: Promotional and competitive intensity is still high but management see

gradual improvement in the business. Plans to rejig distribution channels and launch more

innovative products to boost growth.

♦Unorganised channels in India are more resilient. Presently doesn’t see signs of market share

gain from unorganized players.

♦ Management still sees room for margin improvement in Indian as well African business.

♦Higher import of fertilizer drive the bulk volume growth.

♦Liquid volume growth driven by LPG volume.

♦No change in realization across all the business segment.

♦Mgt. is focusing on capacity utilization rather than increasing tariff rate.

♦Growth in Kenya was hampered by election related disruption. Management sees better

traction from Kenya business in FY19.

♦The company will continue to focus on innovation to drive ahead of category growth.

♦The company took price cut in the range of 6-10% in the month of November to pass benefits

of GST to consumers.

♦Recovery in rural is much stronger than urban. Sees better traction from rural market going

ahead.

♦One new line in container business is added in 15th Jan and another one will be added in Feb

2018.



COMPANY Granules India Ltd.




Chairman & MD

Mr. C Krishna Prasad

CFO

Mr. VVS Murthy


Ritika Jalan

[email protected]

Company Hindalco Industries Limited




MD

Mr. Satish Pai

CFO and Whole-time Director

Mr. Praveen Maheswari

Head- Copper Business

Mr. J.C Laddha


Sagar Sharma

[email protected]

♦1.5 to 2 million ton Alumina refinery Brownfield expansion at capex of Rs.1300 crore on line.

♦Alumina cost of production increased by Rs.1000 from 2Q to 3QFY18 led by increase in

caustic soda prices and transportation issues.

♦Capex for FY19 expected to be around Rs.1600 crore to Rs.1700 crore led by Utkal expansion

and downstream expansion.

♦ Increase in notified price of coal by 11% effective from Jan 18 will have as impact in coming

quarters.

♦Copper business benefited due to higher volume, Sulfuric acid prices.

♦Lower Tc/Rc & lower DAP volume impacted copper volume.

♦Novelis- Sign of improvement in can demand in Asia & South America. Novelis acquired

operating business in Switzerland worth Euro 200 million.

♦DAP Production impacted because of operational issues and is expected to ramp up in

1QFY19. Increase in volumes of novelis led by 12% increase in automotive shipments.


♦The company maintains its 5-year revenue growth guidance (20- 25% CAGR) through the

Omnichem JV.

♦ Company has filed 5ANDA’s till 3QFY18 and plans to file 5 more ANDA’s in 4Q FY18.Out

of 10 filing,6 filling will be from Virginia facility including complex filing and rest filing are

from India.

♦After the ongoing CAPEX Plan, the company do not have any plan for CAPEX for next three-

four year. Guided for maintenance CAPEX of Rs 50Cr in FY19.

♦Management has retained its revenue growth guidance of 15% in FY18.

♦Company didn’t face pricing pressure in US market due to product mix and efficient in pricing.

♦Management has targeted Debt/Equity ratio of 0.8 times in FY18.

♦Expect 20 percent plus as EBITDA Margin and that definitely company expect to maintain.

♦Going Forward tax rate will be 30%-31%.

♦EBITDA increase driven by stable operation & favourable commodity prices in both business

(Aluminium & Copper).

♦ Prepayment of loan and repricing of loans led to reduction in interest expense by Rs.100 crore.

♦Average cost of long term borrowing reduced from 9.25 % in 3QFY17 to 8.76% in 3QFY18.

♦Aluminium business took headwinds by oversupply domestic market and surge in input cost

such as caustic soda and carbon.

♦Provision of Rs.115 crore based on Supreme Court judgment on mining regulation.

♦Company aims to double downstream (VAP) business by next 5 years. Expected 40-50 KT

increase in VAP in FY19.

Company HDFC BANK LTD



MD

Mr. Aditya Puri

CFO

Mr. Shashidhar Jagdishan

DEPUTY MD

Mr. Paresh Sukthankar


Deepak Kumar

[email protected]

Company Hero Motocorp Ltd.




Chairman

Mr. Brijmohan Lall Munjal

CMD & CEO

Mr. Pawan Munjal

Sr V P & CFO

Ms. Ravi Sud


Naveen Kumar Dubey

[email protected]

♦Agriculture is the main contributor in NPA which would be in the range of 5-6% on agri book.

50% of the personal loan and 70% of the credit card is coming from existing customer.


♦The commodity prices may go up going ahead.

♦Revenue from spares stood at Rs.960 crores during 3QFY18.

♦Capex guidance of Rs.2500 crores for FY18 and FY19.

♦Inventory level 4-6 weeks

♦ EBITDA margins guidance of 14-15% sustainable in the long run.

♦Price increase of Rs.400 per vehicle was taken from 1st Jan 2018.

♦The management expects double digit growth in FY19.

♦The company will come up with new product in the premium segment motorcycles to further

strengthen its leadership position by gaining market share.

♦The contingent provision of Rs 700 Cr made on this JLF account in previous quarter was no

longer required due to up-gradation of the account. Management has not write back this

provision rather utilized in floating provision, general provision for stress sector and on certain

agri portfolio.

♦Management is seeing market opportunity in both retail and corporate side thus raising capital

to support the growth.

♦GNPA divergence for FY17 was Rs 2051 Cr and NNPA was Rs 1258 Cr. This divergence was

found in recent RBI RBS review under three accounts. RBI communicated the bank to classify

one JLF project loan account worth Rs 1700 Cr as an NPA with effect from March 2016.

However with satisfactory performance of the account during the specified period, JLF decided

to upgrade the account classification to standard as on December 2017. Hence this account was

standard in the book of HDFC BANNK and net effect on NPA was just Rs 294 Cr on this

divergence related issue.

♦Slippages were Rs 4588 Cr including one divergence account, recovery& up-gradation was Rs

3016 Cr and write offs was Rs 1040 Cr.

♦The entire PL provision was on account of specific loan loss.

♦Strong loan growth and fee growth was mainly on account of lower base YoY. There was no

one offs in fee income. Distribution fee is showing strong traction.

♦Credit demand in the system has picked up. Large part of it is coming from retail side.

Corporate is also contributing. Due to increase in market rate and decline liquidity, the

corporate that was raising funds from debt market is now turning towards bank.

♦There was no sale to ARC during the quarter.



Company Hindustan Zinc Ltd




CEO

Mr.Sunil Duggal

CFO

Mr. Amitabh Gupta

General Manager, IR

Ms. Preeti Dubey

Associate Manager, IR

Ekta Singh


Sagar Sharma

[email protected]

CompanyHindustan Media Ventures

Ltd.

INDUSTRY Media

16th Oct 2018 Q3FY18 EARNING CONFERENCE CALL


Chief Financial Strategist

Mr. Vinay Mittal

DIRECTOR

Mr. Ajay Relan

CFO

Mr. Ajay Jain


Rajeev Anand

[email protected]

♦Mined metal production in 3QFY18 up 10% , sequentially at 240kt due to higher ore treatment

and declined YoY by 13% because of decline in overall ore grades due to mine mix and lower

production from Rampura Agucha OC mine.

♦COP for zinc was at Rs.66118 per MT up 14% YoY and 4% QoQ. YoY increase was primarily

on account of 25% increase in prices of metcoke & imported coal.

♦ Lower investment income on account of smaller corpus and lower rate of return.

♦Integrated zinc metal production was 200kt tonnes, 4% higher sequentially and 3% lower YoY.

Integrated lead metal production was 46kt tonnes, 20% higher QoQ and 18% higher

YoY.Integrated silver production was at 132 tonnes , 6% lower QoQ on accumulation of WIP

and up 12% YoY because of higher lead production.

♦Zawar mine achieved mine development of 6555 meters in quarter.

♦Company has done forward sale of 220kt of zinc and 30kt of lead at $3084 and $2148

respectively for the period of January to June 2018. Of this 165kt (150kt of zinc and 15kt of

lead) is for 4QFY18 and remaining for 1QFY19.

♦Production guidance for FY18 remains intact with refined zinc – lead metal of about 95kt,

refined silver metal of over 500MT.

♦Zinc COP for FY18 expected to be in range of $950 to $975 per MT.

♦Capital mine development increased by 55% YoY and was flat QoQ to 9685 meters.

♦Rampura Agucha underground mine achieved the highest ever mine development at 5958

meters. Sindesar Khurd mine achieved mine development at 4527 meters in 3QFY18.

♦Advertising revenue has picked up sharply towards the end of the Q3FY18.

♦Expect faster growth in advertising revenue in the next financial year.

♦Ad revenue grew by 5% (3% from volume and 2% from pricing) led by better performance of

FMCG, Retail and BFSI.

♦Government, real estate and durables remained laggards.

♦Expert Appraisal Committee of MoEF has approved expansion of ore production at Rajpura

Dariba from 0.9 to 1.08 mtpa and at Kayad from 1.0 to 1.2 mtpa.

♦Chanderiya project is progressing as per schedule. Civil construction work is 70% complete

and the project is on track to get commissioned by mid-FY2019.


♦Sold entire investment in HT Digital Streams Limited resulting in a gain of Rs 15.3 Cr.

♦The company has maintained market share amidst competitive environment.

♦Higher RM cost due to higher newsprint consumption and inflation in commodity prices. IRS

survey report is expected to come out in Jan, 2018.

♦Now witnessing inching up of cover price realization. This quarter, cover price realization

remained lower on account of competitor actions in UP and Bihar.

♦The company is witnessing early signs of inflation in News print prices. It is expected to remain

in the range of 5-10% going ahead.

♦Reported other income of Rs 21 cr in which Rs 15.3 cr was due to sell of entire investment in

HT Digital Streams Limited.


Company

Hindustan Unilever Ltd


products



CEO & MD

Mr. Sanjiv Mehta

CFO, ED, Finance & IT

Mr. P. B. Balaji


Rajeev Anand

[email protected]

Company IIFL Holdings Limited.




Group Chairman

Mr Nirmal Jain

MD

Mr. R. Venkataraman

CFO-India Infoline Finance

Mr. Prabodh Agarwal


Sweta Padhi

[email protected] ♦In Home loan segment, NIM will decline going forward.


♦Real Estate NPA has risen.

♦AUM of Asset Management Company is 26156 Cr, Domestic is 13494 Cr & International is

12670 Cr.

♦Affordable housing Fund is 860 Cr.

♦20% of increase in disbursement & 10% of portfolio is Affordable Home loans.

♦Bankers to increase 50 bankers in next 6 months.

♦Trade condition is normalizing. Gradual demand recovery is visible in all categories.

♦Input costs continue to inflate primarily due to crude surge.

♦The company has units in Assam and Uttaranchal for which it gets excise duty benefits. Now

fiscal unit refund will be considered as budgetary support and it will be accounted as other

operating income in PL.

♦GST rate reduction: company’s ~50% portfolio was subject to GST rate reduction from 28% to

18%. The company took price reduction in the range of 7-9% across the category in this quarter.

♦The company will keep investing behind the brand that why A&P expenses may be higher. The

company has launched Pureit air purifier in Delhi.

♦LAP has moderate yield compression.

♦Focus is on Construction Finance with 5500 approved small ticket housing project.

♦Management is going to raise securitization numbers to 15-20% range.

♦Incremental Borrowings is 8-8.1%

♦INDULEKHA is doing much better than expected. INDULEKHA is extended to shampoo

category and launched nationally.

♦Oral care has shown signs of green shoots. Rural growth this quarter was better than urban.

♦Company continues to save cost in the range of 6-7% of sales, benefits of which will be

reflected in coming quarters.

Tax rate was down this quarter due to exceptional item. Effective Tax rate for FY18: 30%.

♦20% of home loan disbursement is Swaraj loans.



Company ICIC Bank Ltd.




MD & CEO

Mr. Chanda Kochhar

Ex. DIRECTOR

Mr. N. S. Kannan

CHAIRMAN

Mr. Mahendra Kumar Sharma


Deepak Kumar

[email protected]

CompanyIndiabulls Housing Finance

Ltd.


23rd Jan2018 Q3FY18 EARNING CONFERENCE CALL


VC & MD

Mr. Gagan Banga

CFO

Mr. Mukesh Garg


Deepak Kumar

[email protected]


♦Management guided that slippages for FY18 will be much lower than that of FY17 and focus

will be on recoveries.

♦Slippages breakup- Watchlist slippage was Rs 614 Cr, from restructured book it was Rs 197 Cr

and retail slippages were Rs 790 Cr.

♦ICICI Bank was not required to report divergence under RBI supervision as it was lower than

15%. However management refrained from quantifying any amount.

♦ Bank has exposure of Rs 10000 Cr in the second list referred to NCLT by RBI. Non-fund

based exposure is Rs 1335 Cr. Total provisions on this list is 34% and the remaining provisions

will be done in 4Q FY18. Out of this list, 98% is already NPA in the book of ICICI Bank.

♦Fee income growth was lower during the quarter due to high base effect of demonetization

period. However management expects double digit growth in FY18.

♦Management has guided NIM of 5% and spread of 300-325 bps.

♦Incremental cost of fund is 7.5%.

♦Management highlighted that 27% of incremental home loan sourcing is done through e-home

loan platform.

♦Management sold 10% stake in Oak North to GIC of Singapore at a consideration of Rs 768 Cr

and earned a pre-tax profit of Rs 543 Cr. Management utilized Rs 180 Cr to build counter

cyclical provisions as a prudent measures.

♦Excluding one-off gain from Oak North, PAT registered a growth of 24% YoY.

♦Got approval from RBI to raise Rs 750 million through masala bonds.

♦Disbursement grew by 35% YoY. Composition of home loan disbursement is Rs 7090 Cr, LAP

is Rs 2040 Cr and construction finance is at Rs 3150 Cr.♦The proportion of home loan has increased to 59% and management guided it to rise to 66% till

FY20.



Company INDIAN BANK




MD & CEO

Mr.Kishor Piraji Kharat

Executive Director

M K Bhattacharya


Anu Gupta

[email protected]

Company IndusInd Bank Ltd




MD & CEO

Mr. Romesh Sobti

CFO

Mr. S.V. Zaregaonkar


Deepak Kumar

[email protected]


♦Net profit dip by 19% YoY due to provisioning required on investment side.

♦Treasury income was not there because of sale of investment during the quarter. This led to

reduction in the other income by 18% YoY.

♦ROA shrunk to 0.5% due to adverse effect on earnings.

♦Interest reversal amounts to 33 crore in power sector account.

♦Under NCLT 1st list-8 A/c –O/s amount-Rs 2639 crore and 2nd list -10 A/c-O/s amount-Rs

784 crore. Provision required Rs 1980 crore out of which 1816 crore has already been provided

and remaining will be done in Q4FY18.

♦Got approval for rising of capital of Rs. 7000 crore.

♦SMA-2 book is less than 2% of the total gross outstanding amount.

♦Expected advances growth for FY18-19 -20%. Plan for 100-150 branch expansion per year.

♦Slippages were high during the quarter to Rs. 955 crore due to 4 accounts under SDR

amounting to Rs 450 crore .Out of 4 A/c three are from power sector and one from

infrastructure.

♦Slippages are expected to be lesser than FY18 going forward.

♦Average ticket size is around 20-25 lakh.

♦O/s security receipts -2200 crore. Duration of ASS portfolio is 4.5.

♦Added 3 Lakh customers in saving and current account of the bank during the quarter.

♦Disbursement in vehicle finance book grew by 34% YoY. Commercial vehicle disbursement

grew by 39% YoY.

♦Power generation loan book share increases during the quarter because of one account which is

guaranteed by International Bank.

♦Management is seeing recovery in working capital demand.

♦SMA 2 data is well below 1% of the book

♦RBI report on divergence is awaited. RBI has audited at December end and report will come in

4Q somewhere.

♦Under MFI book there has been 99.8% recovery rate in the loans generated from January 2017.

There has been some good recovery in earlier NPA account also.



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