Motilal Oswal - GE TD India (GETD) MOSL: GE TD INDIA (Neutral)-Operating performance in-line-Maintain Neutral

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Motilal Oswal

MOSL: GE T&D INDIA (Neutral)-Operating performance in-line-Maintain Neutral

â€‹GE T&D India: Operating performance in-line; Maintain Neutral

(KSCL IN, Mkt Cap USD1.4b, CMP INR357, TP INR320, 10% Downside, Neutral)

Operating performance supported by strong execution: Sales rose 27% YoY to INR12.0b in 4QFY17, above our estimate of INR11.0b, led by strong execution of projects in hand. EBITDA stood at INR1.1b, as against INR604m in the year-ago period, with the margin expanding 280bp YoY to 9.2%. PAT stood at INR461m v/s INR270m in 4QFY16.
EBIDTA margin expands led by better operating leverage: EBIDTA increased 81.7% YoY to INR1.1b, with the margin expanding YoY to 9.2% from 6.4%. Operating margin expansion was driven by better operating leverage and cost-control measures. Management guided for 6-7% EBIDTA margin on a sustainable basis due to high competition in the sector.
Order inflow and book witness muted growth: Order intake rose 5% YoY to INR11.5b in 4QFY17. Overall T&D ordering remains subdued amid high competition, and management expects the segment to register sub-10% growth in FY18. Order backlog stands at INR81.2b, providing revenue visibility for next two years. Key orders bagged in 4Q were (1) 765/230kv GIS substation order from BGR Energy (INR1.6b), (2) 400/220/132kv substation order at Hardoi (INR1.6b), (3) 400kv GIS and AIS BAYS NTPC Telangana STPP (INR1.2b) and (4) 765kv 80MVAR at Pune (INR1.1b).

29/05/2017 8 EN

Underlying

GE T&D India

Alstom T&D India is engaged in the manufacture and distribution of electrical components including switchgear, transformers, reactors and control panels. Co.'s products include combination fuse switch boards, distribution fuse boards, overhead busbars, plug in boxes, fuses, switchgear components, miniature circuit breakers,motors, pumps, fans, meters and vacuum interrupters.

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INE200A01026 National Stock Exchange of India India

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Motilal Oswal

Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.

Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.

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MOSL: GE T&D INDIA (Neutral)-Operating performance in-line-Maintain Neutral

GE T&D INDIA reduced its risk exposure resulting in an upgrade to Slightly Positive

MOSL: GE T&D INDIA (Neutral)-Big miss led by execution challenge-Cut estimates 30% for FY21

MOSL: GE T&D INDIA (Neutral)-Faced with execution challenges-Still some time before upcoming orders enter execution stage

MOSL : HOME FIRST FINANCE COMPANY: Earnings in-line with sustained improvement in asset quality

MOSL : SHOPPERS STOP: Ticking the right boxes

MOSL : ERIS LIFESCIENCES: Enhanced efforts toward product launch-related activities

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