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MOSL: Morning India (21/May/18): 1. Financials (Bhushan steel achieves closure); 2. UltraTech Cement; 3. Bajaj Auto; 4. Ashok Leyland; 5. Tata Chemicals; 6. Dalmia Bharat

MOrning India (21/May/18): 1. Financials (Bhushan steel achieves closure); 2. UltraTech Cement; 3. Bajaj Auto; 4. Ashok Leyland; 5. Tata Chemicals; 6. Dalmia Bharat; 7. Quess Corp; 8. Amara Raja Batt.

 

Today’s top research idea

Tata Chemicals: Robust operating performance across geographies

• TTCH ‘s profitability improved across geographies in the quarter. TCNA’s revenue grew 4% YoY – its EBITDA/MT increased 16% YoY to USD37.2 (in INR terms, up 11% YoY to INR2,394).
• Similarly, TCAHL’s revenue increased 28% YoY – its EBITDA/MT increased 40% YoY to USD38.4 (in INR terms, up 16% YoY to INR2,414). However, TCEHL’s revenue declined 10% YoY, but profitability remained intact – EBITDA/MT increased 13% YoY to GBP80.6 (in INR terms, up 22% YoY to INR7,222).
• The company’s cash-cow business – soda ash and sodium bicarbonate – has been performing well across geographies. Apart from that, the company has begun focusing on growing other segments which is expected to further boost returns.

Piping hot news

UltraTech to acquire Century Textiles’s cement business

• UltraTech Cement Ltd, part of the Aditya Birla group, will acquire the cement business of BK Birla group’s Century Textiles and Industries Ltd in an all-stock transaction. Shareholders of Century Textiles will receive one share of UltraTech for every eight shares held, according to the plan.