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Showing posts from June, 2009

EKC Everest Canto Cylinders -Q4 results

EKC Everest Canto Cylinders -Q4 results.

EKC has come out with good set of Q4 results.The demand for CNG cylinders in India is picking up due to increasing focus on reducing the environmental pollution and also due to the fact that even after reduction in global oil prices, CNG is still ~55% cheaper then petrol.

The Supreme Court has also mandated the public transport system of the 28 cities to be converted to CNG to reduce emissions over next few years. Also with the recent gas finds of Reliance and GSPC we expect good amount of gas to be available for the automobiles.

Revenues of Q4FY09 were impacted due to lower domestic sales on account of
slowdown in off take of CNG cylinders by OEMs. However the drop in CNG sales in
India was partly compensated by robust growth in sale of industrial cylinders. In
Q4FY09 the company recorded lower EBIDTA margin on account of higher sale of
industrial cylinders which typically have lower operating margins then CNG cylinders.
in India, Dubai and Chi…


NIIT Ltd - Results Update.

NIIT Revenues rise by about 10% YoY . Revenues rose by 10% YoY and came in marginally below street stimates. The individual learning business (ILS) and corporate learning business (CLS) led the overall growth with 15% and 11% gains, respectively. However, on a QoQ basis, CLS revenues remained almost flat, despite the rupee depreciation. Schools business also grew by 17% YoY. New businesses like IFB, Imperia, Uniqua, etc disappointed.

Future prospects

The individual learning business is expected to witness a slowdown in growth rates in FY10 to about 16%. New initiatives are expected to gather steam over the quarters with higher acceptance of the courses. However, incremental growth is expected to be muted.
Corporate learning businessis expected to grow at 8%. This may prove to be optimistic in the back drop of further deterioration in the US economyand scale up issues faced by the company.
Margins to improve (YoY basis) on the back of better capacity utilization, …

IVRCL Infrastructure

IVRCL Infrastructure - Result highlights.

Revenues of IVRCL Infrastructure for Q4FY09 and full year FY09 grew by 23% and 33% respectively as compared to same period last year.
Operating margins for the current quarter and full year stood at 8.7% and 8.6%, lower than street estimates.
Net profit growth for Q4FY09 and full year FY09 stood at 9% and 7%.

Performance of subsidiaries.
IVRCL's progress on its BOT projects is impacted by delays with two road BOT projects witnessing a delay of almost 6 months as against estimated completion by March, 2009. Kumarapalyam tollways is likely to get operational from June, 2009 while Jalandhar Amritsar Tollway is expected to get completed by Sep, 2009, Salem tollways by October, 2009 and Chennai Water Desalination project is expected to take another 2-3 months.


At current price of Rs 332, stock is trading at 16.5x and 14.8x its P/E multiples on
FY10 and FY11 estimates respectively. IVRCL Infrastructures is set to benefit from economic recover…

Economy Update - June 2009

Economy Update: India's GDP grew 5.8% during Q4FY09.

The GDP growth estimated by the CSO at 5.8% during Q4FY09 as against 8.6% in Q4FY08 and 5.8% in Q3FY09 came above street expectations.
The 'agriculture, forestry & fishing' segment picked up to 2.7% in Q4FY09 from 0.8% decline in Q3FY09 on back of good winter crops. However, manufacturing sector declined 1.4% in Q4FY09 on expected line as reflected by the falling IIP numbers in recent times.

The GDP growth was 6.7% for FY09 despite the world economy facing one of deepest economic crisis on back of 13.1% expansion in community services, 9.0% in transport and communications sectors and 7.8% in financial and other services sector.

Our savings as well as Investments as a percentage of GDP are one of the highest in the world, which is likely to insulate us (albeit partly) from deteriorating world economic environment. We expect economic activities to pick up in the H2FY10. The recent indicators like PMI data, cement dispat…