Indo Rama Synthetics

IDBI Capital, in its report on Indo Rama Synthetics, states that the company's revenues were down 13 per cent y-o-y, at Rs 398.5 crore; profits were down 79 per cent, at Rs 4.6 crore.

There has been a depreciation margin of 550 bps and a sluggish topline and bottomline. After a brief revival in Q2 results, the current quarter was lacklustre.

The fall in volumes was 7.5 per cent, while in value terms, it was 13 per cent. Despite the buoyant demand for polyester in the country, the company has not been able to benefit, as it is in the lower end of the chain. It will see benefits only if (PTA, MEG) raw material prices soften and it is able to ensure sustained volume growth.

Costs of raw material and power have pulled down margins for the company. It expects raw material prices to soften for the last two quarters. However, this seems to take some time and till then, the margins are expected to remain depressed.

Aarvee Denims & Exports

IDBI Capital, in its results review on Aarvee Denims & Exports, recommends a "buy". It states that there has been growth accompanied by margin expansion and surge in domestic revenues.

The Q3 FY06 revenues at Rs 72.6 crore, were up 21 per cent y-o-y and profits at Rs 9.8 crore, up 64 per cent. The domestic revenue composition has seen a sharp increase from 86 per cent in Q3 FY05, to 95 per cent in Q3 FY06.

The realisations for the quarter have been at around Rs 89 per meter (a fall of one rupee against Q2 FY06). The high growth in the domestic denim market is leading to expansion by existing players and prompting newer players to enter the segment.

Many export-oriented players have also started diverting their produce to the domestic market. The demand scenario remains robust, with demand for value-added denims and specifically polyester-mixed denims increasing.

Analysts corner: Bharti Televentures

Edelweiss Securities, in its results update on Bharti Televentures, changes its recommendation from "value buy" to "accumulate". The report states that the company's Q3 FY06 numbers were lower than the expectations.

On a q-o-q basis, revenues were up 11.7 per cent, to Rs 3,000 crore, while net profits grew by only 4.7 per cent, to Rs 540 crore.

The earnings before interest, tax, deductions and amortisation (EBITDA) margin was down by 67 bps, to 36.6 per cent, while net margin slid for the third consecutive quarter, by 120 bps to 18 per cent.

Despite stable mobility, the overall EBITDA margin was negatively impacted due to pricing restrictions coming in force, as well as aggressive rollouts in newer geographies.

The report expects the company to maintain growth in its mobility business on the back of accelerated growth in subscriber additions, higher minutes of usage (MoU) and relatively higher operating margins on the lifetime validity schemes, which could likely cushion margin pressures, going forward.

On the Infotel business, the report believes that revenue growth is likely to be maintained on the back of increase in coverage, but pricing and competition is likely to keep long-distance and enterprise data business segments' profitability under pressure.


From Business Standard

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First Blog

Hi All,

This is my first blog for Stock section. Today Stock Market of india is pretty good and over priced ??? Well we can have debate on this later. Here You will get my thinking, my collection of other thinkers from their blog ;), credit to them, I am just collecting informations.

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