Motilal Oswal - GE TD India (GETD) MOSL: GE TD INDIA (Neutral)-Operating performance miss led by below-expected margins

Report

Motilal Oswal

MOSL: GE T&D INDIA (Neutral)-Operating performance miss led by below-expected margins

GE T&D India: Operating performance miss led by below-expected margins

(GETD IN, Mkt Cap USD1.6b, CMP INR407, TP INR435, 7% Upside, Neutral)

Performance impacted by margin contraction: Sales grew strongly by 24% YoY to INR14.4b in 3QFY18, ahead of our estimate of INR9.3b, led by smooth execution of orders in hand. Adj. EBITDA (ECL provisioning of INR224m) of INR728m was 3% lower than INR751m in 3QFY17 and meaningfully below our estimate of INR1.0b due to execution of lower-margin orders. Adj. EBIDTA margin shrunk 130bp YoY to 5.1%, below our estimate of 8%. Adj. PAT of INR521m was in line with our estimate of INR534m (3QFY17: INR443m), led by higher other income (INR630m v/s INR493m in 3QFY17).
EBIDTA margin contracts on execution of lower-margin orders, intensifying competition: Adj. EBIDTA stood at INR728m v/s INR751m in 3QFY17, with the margin contracting 130bp YoY to 5.1% on intensifying competition in the sector and execution of lower-margin orders. GETD guided for sustainable gross margins of 30-31% v/s 26% in 3QFY18.
Order inflow declines sharply: Order intake declined 30% YoY to INR7.8b in 3QFY18 due to a delay in finalization of orders. Order backlog stands at INR72b, providing revenue visibility for the next 18 months. Key orders won in 3Q were (1) order from Sterlite Power Grid Ventures for installation of a substation in Tripura, (2) order from Gujarat Energy Transmission for 400Kv GIS at Bhachinda, (3) order from Bhutan Power for 66Kv GIS substation at Thimpu and 4) order from Delhi Transco for a busbar protection scheme.

10/02/2018 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.

See profile

INE200A01026 National Stock Exchange of India India

Provider

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.

See profile

Other Reports on these Companies

TheScreener

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

GE T&D INDIA (IN), a company active in the Electrical Components & Equipment industry, reduced its market risk and raised its general evaluation. The independent financial analyst theScreener awarded an improved star rating to the company, which now shows 2 out of 4 possible stars; its market behaviour has improved and can be considered as defensive. theScreener believes that this new assessment merits an overall rating upgrade to Slightly Positive. As of the analysis date October 29, 2021, the closing price was INR 127.95 and its potential was estimated at INR 159.99.

Free Trial

October 30, 2021 October 30, 2021 6 EN

Motilal Oswal

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

GE T&D India: Big miss led by execution challenge; Cut estimates 30% for FY21 (GETD IN, Mkt Cap USD0.7b, CMP INR178, TP INR180, 1% Upside, Neutral) Dragged by sub-par execution: 1QFY20 sales declined 37% YoY to INR7.3b, below our est. of INR11.9b. Execution during the quarter was hurt by declining HVDC sales, non-execution of stressed projects and postponement of a few project executions to 2QFY20 (from 1QFY20). This, along with operating de-leverage led to EBIDTA miss (-71% YoY to INR424m v/s our est. of INR1.4b). Adj. PAT of INR34m (-96% YoY), too, was below our est. of INR776m. Exe...

EUR 120.00

July 30, 2019 July 30, 2019 1 EN

Motilal Oswal

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

GE T&D India: Faced with execution challenges; Still some time before upcoming orders enter execution stage (GETD IN, Mkt Cap USD1b, CMP INR265, TP INR275, 4% Upside, Neutral) Dragged by sub-par execution: Sales grew 10% YoY to INR8.9b in 4QFY19, below our estimate of INR10.8b. Execution during the quarter was hurt by declining HVDC sales, soft order inflow and a weak order book. This, along with operating de-leverage, led to a miss on EBIDTA (+330% YoY to INR770m versus our estimate of INR1.0b). Adj. PAT of INR261m (-15% YoY), too, was below our estimate of INR665m. Weak order backlo...

EUR 120.00

May 27, 2019 May 27, 2019 1 EN

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

HOME FIRST FINANCE COMPANY: Earnings in-line with sustained improvement in asset quality (HOMEFIRS IN, Mkt Cap USD0.9b, CMP INR802, TP INR1025, 28% Upside, Buy) HomeFirst’s 2QFY23 PAT grew 21% YoY/6% QoQ to INR543m (in-line). Credit costs grew 37% QoQ to INR50m (MOFSLe: INR31m). Underlying this, the NII grew 58% YoY to ~INR1b (in-line). ‘Other income’ grew 13% QoQ, driven primarily by higher treasury gains and investment income. Opex was 7% higher than estimated and grew 47% YoY and 14% QoQ, led by investments in new branches and resultant higher employee expenses. Disbursements grew 36%...

EUR 120.00

October 21, 2022 October 21, 2022 12 EN

Aliasgar Shakir

Aliasgar Shakir

MOSL : SHOPPERS STOP: Ticking the right boxes

. SHOPPERS STOP: Ticking the right boxes (SHOP IN, Mkt Cap USD1b, CMP INR780, TP INR805, 3% Upside, Neutral) Aided by price hikes, SHOP reported a healthy 19% revenue growth in 2QFY23 from pre-COVID levels (8% beat) on healthy (+10%) SSSG and sustained volumes. EBITDA grew 2.3x YoY (22% over pre-COVID levels), with a 540bp margin improvement. 1) A strong recovery in revenue, backed by an improved pricing; 2) expansion within the Beauty and Private Label segment; and 3) healthy annual 12/15 store additions for SHOP/Beauty are expected to drive business growth going forward. We expect a r...

EUR 120.00

October 21, 2022 October 21, 2022 13 EN

Tushar Manudhane

Tushar Manudhane

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

ERIS LIFESCIENCES: Enhanced efforts toward product launch-related activities (ERIS IN, Mkt Cap USD1.2b, CMP INR708, TP INR860, 21% Upside, Buy) Eris Lifesciences (ERIS) delivered better than expected 2QFY23 performance, led by superior traction in new launches and improved operating leverage. ERIS is notonly sustaining the momentum in its recently launched products, but it is also preparing itself for an aggressive pace of new introductions. We reiterate our earnings estimate for FY23/FY24 and continue to value ERIS at 22x 12M forward earnings to arrive at a price target of INR860. We re...

EUR 120.00

October 21, 2022 October 21, 2022 11 EN

Sign-up for free to access full reports immediately

Email Address*

Choose Password* ( 6 or more characters )

Due to regulatory restrictions regarding the distribution of financial research, this report is restricted to a specific region or investor type. Get access to exclusive reports by answering the questions below.

Select your country*

Get financial insights straight to your inbox

By clicking "register" you accept the Terms and Conditions & Privacy Policy

Already on ResearchPool?

Almost there...

Are you a professional investor?

Select your country

REGISTER

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

In order to access this report please create an account.

LOGIN

MOSL: GE T&D INDIA (Neutral)-Operating performance miss led by below-expected margins

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

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

Sign-up for free to access full reports immediately

ResearchPool Subscriptions

Get the most out of your insights

Why subscribe?

How to subscribe

ResearchPool Subscriptions

This report is only available to subscribers

Why subscribe?

How to subscribe