EUR 120.00 For Business Accounts Only

MOSL: Morning India (02/August/19): 1. India Strategy (1QFY20 interim earnings review); 2. Sadbhav Engg.; 3. Automobiles; 4. Bharti Airtel; 5. IOCL; 6. Godrej Consumer; 7. Marico; 8. Container Corpn; 9. GSK Con

MOrning India (02/August/19): 1. India Strategy (1QFY20 interim earnings review); 2. Sadbhav Engg.; 3. Automobiles; 4. Bharti Airtel; 5. IOCL; 6. Godrej Consumer; 7. Marico; 8. Container Corpn; 9. GSK Consumer; 10. Ashok Leyland

 

Today’s top research theme

India Strategy: 1QFY20 interim earnings review; Meets modest expectations Earnings

• The trend in earnings revision remains skewed in favor of downgrades and has accelerated at the margin, reflecting the weak underlying operating environment and demand commentaries. Broader headline numbers of both the MOFSL Universe and the Nifty have been largely in line with our estimates. The consumption demand outlook has turned weaker, even as Private Banks have reported mixed trends on asset quality/a rise in stressed books and cement companies have surprised on realization.
• For the MOFSL Universe, sales/EBITDA/PAT grew by 9%/4.7%/(0.3%) YoY v/s our estimates of 7.8%/0.2%/0.3% YoY. EBITDA comparison is not relevant, in our view, due to the changes pertaining to the implementation of Ind-AS-116.
• Sales, EBITDA and PAT for the 28 Nifty companies have grown at 8%, 1.1% and (1.9%) YoY, v/s our estimates of 6.1%, (1.2%) and 1.1% YoY, respectively.
• On the PAT front, approximately 60% (i.e. 58) of the 96 MOFSL Universe companies have either met or exceeded our estimates.
• So far, our FY20/21 Nifty EPS estimates have been cut by 1.2%/1.1% to INR576/683 from INR583/691. We are building in Nifty EPS growth of 19.6%/18.6% for FY20/21.

 

 

Piping hot news

GST collections rise marginally to Rs 1.02 lakh crore in July

Gross GST collections stood at Rs 1.02 lakh crore in July, marginally up from the previous month, official data showed on Thursday. The July 2019 mop-up was, however, 5.8 per cent higher than the Rs 96,483 crore collected in the same month last year. Revenue collection from the Goods and Services Tax (GST) had slipped below the Rs 1 lakh crore mark for the first time in the current fiscal in June at Rs 99,939 crore.