Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
ICICI Bank
For 2QFY2012, ICICI Bank’s standalone net profit grew by reasonable 21.6% yoy
to `1,503cr, in-line with ours as well as street’s estimates. Sequentially stable NIM
and asset quality were the key highlights of the results. Continued reduction in NPA
provisioning burden drove net profit growth.
Stable NIM and asset quality: During 2QFY2012, the bank’s business momentum
picked up a bit as compared to the previous quarter, with advances growing by
6.0% qoq (up 20.5% yoy) and deposits increasing by 6.3% qoq (moderate 9.9%
yoy growth). Overall CASA deposits growth was muted 5.1% yoy, dragged down
by a 5.3% yoy decline in current account deposits. Saving account deposits growth
was relatively better at 10.9% yoy. Though period-end CASA ratio improved
marginally to 42.1%, average CASA ratio declined by ~200bp qoq to ~38%.
Reported NIM remained flat both on a sequential and on a yoy basis at 2.6% as
the higher yields were offset by higher funding costs. Domestic NIM compressed
marginally by 10bp qoq to ~2.9%; however, international NIM improved by
~20bp qoq to 1.1%, in-line with management’s guidance. Growth in fee income
continued to be below expectations at 7.0% yoy, as slower new project
announcements and lower financial closures of projects affected fee income.
Employee expenses rose considerably by 35.0% yoy, primarily due to higher
headcount. Provisioning expenses declined by a substantial 50.3% yoy to `319cr
on the back of reduced share of unsecured credit portfolio of the bank. Asset
quality remained largely stable with gross NPAs remaining flat sequentially and net
NPAs declining by 5.2% qoq. Provision coverage ratio (as per the RBI’s guidelines)
remained healthy at 78.2% (76.9% in 1QFY2012).
At the CMP, the bank’s core banking business (after adjusting for subsidiaries) is
trading at 1.8x FY2013E ABV (including subsidiaries at 1.7x FY2013E ABV). We
maintain our Buy recommendation on the stock with a target price of `1,114.
Greenply Industries
Greenply Industries (GIL) registered strong top-line growth in 2QFY2012. The
company’s net sales grew by 43.1% yoy to `414cr. GIL reported a 110bp yoy
expansion in OPM to 8.9% (7.8%), largely on the back of lower staff cost and
consumption of raw materials as a percentage of sales. The company reported
forex loss of `11cr during the quarter. Operating profit increased by 63.3% yoy to
`37cr (`23cr) on the back of higher revenue and margin expansion during the
quarter. Net profit increased by 537% yoy to `10cr (`1.6cr). Net profit margin
increased by 189bp yoy to 2.4% (0.5%). We continue to maintain our Buy
recommendation on the stock. We will be coming with a detailed report post
management interaction.
Subros
Subros posted a poor set of results for 2FY2012. Net sales registered a 13.6% yoy
(4.6% qoq) decline in net sales to `240.5cr, largely due to the 24% yoy (9.8% qoq)
decline in volumes. Lower volumes can be attributed to general slowdown in the
passenger car industry and slowdown in volumes of its major clients, Maruti Suzuki
and Tata Motors. Average net realization, however, grew by 13.8% yoy (5.7%
qoq), arresting further decline in the top line. Operating margin witnessed an
expansion of 116bp yoy to 7.9%, led by a 716bp yoy fall in raw-material
expenses. On the other hand, a 279bp and 322bp yoy increase in other
expenditure and staff cost restricted further yoy margin expansion. Sequentially,
operating margin contracted by 202bp yoy because of the sharp increase in staff
cost. Net profit registered a substantial decline of 35.9% yoy (61% qoq) to `3.1cr
mainly due to the 44.2% yoy increase in interest expense. The stock rating is
currently under review.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
ICICI Bank
For 2QFY2012, ICICI Bank’s standalone net profit grew by reasonable 21.6% yoy
to `1,503cr, in-line with ours as well as street’s estimates. Sequentially stable NIM
and asset quality were the key highlights of the results. Continued reduction in NPA
provisioning burden drove net profit growth.
Stable NIM and asset quality: During 2QFY2012, the bank’s business momentum
picked up a bit as compared to the previous quarter, with advances growing by
6.0% qoq (up 20.5% yoy) and deposits increasing by 6.3% qoq (moderate 9.9%
yoy growth). Overall CASA deposits growth was muted 5.1% yoy, dragged down
by a 5.3% yoy decline in current account deposits. Saving account deposits growth
was relatively better at 10.9% yoy. Though period-end CASA ratio improved
marginally to 42.1%, average CASA ratio declined by ~200bp qoq to ~38%.
Reported NIM remained flat both on a sequential and on a yoy basis at 2.6% as
the higher yields were offset by higher funding costs. Domestic NIM compressed
marginally by 10bp qoq to ~2.9%; however, international NIM improved by
~20bp qoq to 1.1%, in-line with management’s guidance. Growth in fee income
continued to be below expectations at 7.0% yoy, as slower new project
announcements and lower financial closures of projects affected fee income.
Employee expenses rose considerably by 35.0% yoy, primarily due to higher
headcount. Provisioning expenses declined by a substantial 50.3% yoy to `319cr
on the back of reduced share of unsecured credit portfolio of the bank. Asset
quality remained largely stable with gross NPAs remaining flat sequentially and net
NPAs declining by 5.2% qoq. Provision coverage ratio (as per the RBI’s guidelines)
remained healthy at 78.2% (76.9% in 1QFY2012).
At the CMP, the bank’s core banking business (after adjusting for subsidiaries) is
trading at 1.8x FY2013E ABV (including subsidiaries at 1.7x FY2013E ABV). We
maintain our Buy recommendation on the stock with a target price of `1,114.
Greenply Industries
Greenply Industries (GIL) registered strong top-line growth in 2QFY2012. The
company’s net sales grew by 43.1% yoy to `414cr. GIL reported a 110bp yoy
expansion in OPM to 8.9% (7.8%), largely on the back of lower staff cost and
consumption of raw materials as a percentage of sales. The company reported
forex loss of `11cr during the quarter. Operating profit increased by 63.3% yoy to
`37cr (`23cr) on the back of higher revenue and margin expansion during the
quarter. Net profit increased by 537% yoy to `10cr (`1.6cr). Net profit margin
increased by 189bp yoy to 2.4% (0.5%). We continue to maintain our Buy
recommendation on the stock. We will be coming with a detailed report post
management interaction.
Subros
Subros posted a poor set of results for 2FY2012. Net sales registered a 13.6% yoy
(4.6% qoq) decline in net sales to `240.5cr, largely due to the 24% yoy (9.8% qoq)
decline in volumes. Lower volumes can be attributed to general slowdown in the
passenger car industry and slowdown in volumes of its major clients, Maruti Suzuki
and Tata Motors. Average net realization, however, grew by 13.8% yoy (5.7%
qoq), arresting further decline in the top line. Operating margin witnessed an
expansion of 116bp yoy to 7.9%, led by a 716bp yoy fall in raw-material
expenses. On the other hand, a 279bp and 322bp yoy increase in other
expenditure and staff cost restricted further yoy margin expansion. Sequentially,
operating margin contracted by 202bp yoy because of the sharp increase in staff
cost. Net profit registered a substantial decline of 35.9% yoy (61% qoq) to `3.1cr
mainly due to the 44.2% yoy increase in interest expense. The stock rating is
currently under review.
No comments:
Post a Comment