Result Previews Cairn India, Indoco, KPIT, FAG, Hexaware, Thermax, Yes Bank, IDBI Bank, Exide, UltraTech Bajaj Auto:: Angel Broking,

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Result Previews
Cairn India
Cairn India is slated to report its 2QFY2012 results. Net sales are expected to
grow by 33.6% to `3,590cr on the back of rise in crude oil prices, while the
bottom line is expected to decline by 87.5% yoy to `214cr on account of
royalty reimbursement to ONGC for Cairn India's respective production.
As per the new agreement between the two companies, Cairn India will pay
royalty for its share of production retrospectively. We maintain our Neutral
view on the stock.
Bajaj Auto
Bajaj Auto is slated to announce its 2QFY2012 results. We expect the
company’s top line to grow strongly by 19% yoy to `4,960cr, led by 16.3% yoy
growth in volumes and increased average net realization. On the operating
front, EBITDA margin is expected to decline by 127bp yoy to 19.4%. However,
the bottom line is expected to witness 14% yoy growth to `776cr. The stock
rating is under review.
UltraTech Cement
UltraTech Cement is expected to announce its 2QFY2012 results. The
company is expected to post top-line growth of 31.2% yoy to `4,216cr. The
robust performance on the top-line front is expected to be primarily on
account of higher realization. OPM is expected to expand by 848bp yoy to
22.1% due to better realizations. The company’s bottom line is expected to
grow by 285% yoy to `445cr. We maintain our Neutral view on the stock.
Exide Industries
Exide Industries is slated to announce its 2QFY2012 results. We expect the
company’s top line to grow modestly by 7% yoy to `1,200cr, mainly due to
slowdown in automotive OEM demand. EBITDA margin is expected to decline
by 444bp yoy to 17.3% due to a yoy increase in average lead price and price

cuts to counter competitive pressures. Hence, the bottom line is expected to
post a 16% yoy decline to `140cr. The stock rating is under review.
IDBI Bank
IDBI Bank is scheduled to announce its 2QFY2012 results. We expect the bank
to report a marginal decline in NII (down 1.2% yoy) to `1,154cr. Non-interest
income is also expected to be weak (down 2.6% yoy) at `479cr. Operating
expenses are expected to increase by 0.6% yoy (substantial 15.5% qoq), while
provisioning expenses are expected to decline by 8.3% yoy. PAT is expected to
come in at `413cr, down 3.7% yoy (up by strong 23.3% qoq). At the CMP, the
stock is trading at 0.7x FY2013E ABV. We remain Neutral on the stock.
Yes Bank
Yes Bank is slated to announce its 2QFY2012 results. We expect the bank to
report healthy NII growth of 16.9% yoy on the back of ~10bp improvement in
calculated NIM. Non-interest income is expected to rise strongly by 41.6% yoy.
The cost-to-income ratio is expected to increase to 37.9% compared to 37.4%
in 1QFY2012 (36.6% in 2QFY2011). Pre-provision profit is expected to
register 21.7% yoy growth, while net profit is expected to increase by healthy
22.7% yoy to `216cr. At the CMP, the stock is trading at 1.9x FY2013E ABV.
We maintain our Accumulate rating on the stock with a target price of `321.
Thermax
Thermax is slated to announce its 2QFY2012 results. The top line is expected
to post subdued growth of 7.0% yoy to `1,168cr, mainly due to high base
effect of 2QFY2011. On the EBITDA front, margin is expected to compress by
68bp yoy to 11.1% due to higher execution of lower-margin EPC contracts.
A combination of subdued revenue growth and margin contraction is expected
to result in PAT of `89.5cr. We remain Neutral on the stock.
Hexaware
Hexaware is slated to announce its 3QCY2011 results. We expect the
company to post revenue growth of 5.5% qoq to US$78.9, majorly led by
volume growth. In INR terms, revenue is expected to come in at `360cr, up
7.9% qoq. EBITDA margin is expected to expand by 41bp qoq to 15.7%
as the impact of wage hike (given in 2QCY2011) on margins will be partially
absorbed. PAT is expected to come in at `57cr. We remain Neutral
on the stock
FAG Bearings – 3QCY2011
FAG Bearings is set to announce its 3QCY2011 results. We expect the
company to deliver 14% yoy growth in revenue to `308cr. On the operating
front, we expect the company to post a 133bp yoy improvement in its
operating profit margin to 19%. Thus, net profit is expected to increase
substantially by 28% yoy to `40cr. The stock rating is under review.

KPIT Cummins
KPIT Cummins is scheduled to announce its 2QFY2012 results. We expect the
company to post revenue of US$70.8mn, up 1.0% qoq (lower growth due to
higher base), majorly led by volume growth. In INR terms, revenue is expected
to come in at `324cr, up 2.3% qoq. EBITDA margin is expected to expand by
256bp qoq to 15.1%, as the negative impact of wage hikes given in
1QFY2011 will be absorbed by volume growth, efficiency gains and INR
deprecation. PAT is expected to come in at `29cr, aided by share of profits
from Systime. We remain Neutral on the stock.
Indoco Remedies
For 2QFY2012, Indoco Remedies is expected to report revenue of `148cr,
registering growth of 12% yoy. The company’s gross margin is expected to
expand by 225bp yoy to 56.5%, which is expected to end at 15.1%.
Consequently, the company is expected to report net profit growth of 18.8%
yoy. At the CMP, the stock is trading at 7.3x FY2012E and 5.9x FY2013E
earnings. We maintain our Buy view on the stock with a target price of `665.