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MOSL: Morning India (26/November/18): 1. Voices | India INC on Call (Revenue buoyancy but broad-based margin contraction); 2. J&K Bank; 3. Allcargo Logistics

MOrning India (26/November/18): 1. Voices | India INC on Call (Revenue buoyancy but broad-based margin contraction); 2. J&K Bank; 3. Allcargo Logistics

 

Today’s top research theme

Voices (2QFY19 | India INC on Call): Revenue buoyancy but broad-based margin contraction; Outlook on asset quality of corporate banks improving

• As India Inc bids a goodbye to the September earnings-report season, we present detailed takeways from India Inc ‘Voices.’ The second-quarter commentary holds particular relevance as market participants keenly watch business performances across sectors amid rising market turbulence.
• September-quarter earnings were broadly in line with expectations for the Nifty companies. Revenue growth accelerated further to multi-quarter highs, underscoring the gradual demand improvement and the impact of rising commodity costs.
• In Financials, corporate banks’ performance and commentary were sequentially better, providing visibility on a broader earnings pick-up. Consumption remains on a strong footing. Auto commentaries, however, indicated some demand moderation.

Piping hot news

Oil hits lowest, OPEC mulls output cut

• Oil fell to its lowest level in more than a year on Friday on continued concerns about a rising global surplus, even as producers considered cutting output to curb supply. Prices were on course for their biggest one-month decline since late 2014. Oil supply, led by U.S. producers, is growing more quickly than demand and to prevent a build-up of unused fuel such as the one that emerged in 2015, the Organization of the Petroleum Exporting Countries (OPEC) is expected to start trimming output after a meeting on December 6.