India Equity Analytics

Weekly Update

India Weekly Report As on 04 Jun 21

COMPANY TAKEAWAYS

APLAPOLLO: 4QFY21 Result Flash 3-Jun-21

4QFY20 3QFY21 4QFY21 4QFY21E YoY% QoQ%
SALES 1889 2601 2587 2807 37% -1%
EBITDA 120 232 206 301 72% -11%
PAT 61 149 134 191 121% -10%

EBITDA M% 6.3% 8.9% 8.0% 10.7%

PAT M% 3.2% 5.7% 5.2% 6.8%

APLAPOLO: 4QFY21 Concall Highlights 3-Jun-21

Management Participants:
Mr. Sanjay Gupta- Chairman and MD
Mr. Deepak Goyal- CFO
Mr. Arun Agarwal- COO
Mr. Anubhav Gupta- CSO
• Management saw strong improvement in P&L in FY21 based on margin
expansion, BS- based on debt reduction and CF-based on the working capital
enhancement.
• EBITDA in FY21 grew by 40% YoY and PAT growth of 50% YoY despite flat sales
volume.
• Market share of the company grew to 50% from 40% in the structural tubes
market in India.
• Net working capital cycle has reduced to 8 days from 25 days as management
APOLLO HOSPITALS has switched to cash and carry model; which is very well accepted in the
ENTERPRISE LTD industry.
• This working capital cycle is best in the building material Industry as well.
• Net debt went down to 80% to Rs. 1.6 million.
• Value added product contribution is around 57% in FY21 in comparison to 45%
in FY20.
• It’s been 4 years management started value added product to the portfolio
where the contribution was in the ration 40:60; which has now changed to
60:40.
• ROCE and ROE improved by repayment of debt to 26% (vs 18% in FY20) and
25% (vs 21% in FY20) respectively.
• Company generated around Rs. 1000 Cr. of cash flow in FY21 which has helped
management in repayment of its debt.
• Management also started group simplification process of Apollo Tricoat tubes
merger into Apl Apollo. This process was initiated in Feb-21 and is currently
going on track.
• Management has appointed one of the BIG 4 firm consultants who are helping
for ESG compliance. Within coming quarters it could be visible that how
company is following the guideline and how company will monitor VSG
compliance for the next 2-3 years.

Please refer to the disclaimers at end of the report

 COMPANY TAKEAWAYS

APLAPOLLO: Management Interview Highlights 04-Jun-21

Mr. Anubhav Gupta- CEO
• Margin on per ton basis improved in FY21 to 4100 per ton from 3300 per ton
in FY20.
• Margin expansion is a mixture of 3-4 drivers out of which most of the drivers
are sustainable. The key drivers are :
 value addition; which has given Rs. 500 per ton of extra margins
 cost control measures; what management took in last 6-7 months after
lockdown was lifted that gave around Rs. 100- 200 per ton of extra margin
 Brand premium management started getting on their products which gives
around Rs. 200-300 per ton these three drivers are sustainable and helps
management in achieving margins of around Rs. 4000 per ton.
• Market share shift from unorganised to organised; which indicated the
demand pull for the branded products in Pipes industry and this also helping
management in margin expansion.
• Management expects margin to be around Rs.4000-4500 per ton on
APOLLO HOSPITALS sustainable basis.
ENTERPRISE LTD • Contribution for value added products over the last 5 years has increased to
57% from 40% onwards. Management expects the same to increase over 60-
70%.
• The capacity addition and ramping up in FY22 will add to the value-added
product portfolio as per management.
• Management expects the ration will be in the range of 75:25 in terms of value
added product.
• Demand of Steel structural pipes are majorly (around 95%) from the
construction activity weather it’s commercial, Housing or infrastructure; and
remaining 5% comes from the industrial applications.
• After lockdown; construction activity saw string uptick management also had
aggressive strategy which increased the market share to 50% from 40%.
• Supply chain disruption also helped in gaining market share to the company.
• Management expects market share to remain in the range of 50-60% over the
next 2-3 years.
• Management guided double digit volume growth in the non-pandemic period.

ASHOKLEY: Monthly Volume Numbers 1-Jun-21

May-21 May-20 YoY% MoM%
M&HCV Trucks 1624 266 511% -60%
M&HCV Bus 329 0 NA 30%
ASHOK LEYLAND LTD Total M&HCV 1953 266 634% -55%
LCV 1246 1154 8% -69%
Total Volumes 3199 1420 125% -62%

DOMESTIC 2,738 1,277 114% -66%

EXPORTS 461 143 222% 22%

Please refer to the disclaimers at end of the report

 COMPANY TAKEAWAYS

ASTRAL: Management Interview Highlights 04-Jun-21

Mr. Hiranand Savlani- CFO
• Management is expecting double digit revenue growth for FY22, however over
the last 10 years management is delivering double digit growth which has
increased to base no. and to deliver double digit growth on higher base will be
challenge for the company.
• Management guidance is to double the topline no’s over the next 5 years.
• To quantify short term growth becomes very challenging for the management
not the long term growth.
• Last year, Lockdown was a challenge for the company posts which in 2HFY21
the performance bounce back with the strong demand across the business
segments. The same management is expecting in FY22 with the current
challenges of lockdown in 1QFY22 faced by management.
• Management has also maintained reasonable inventory level; looking forward
the demand coming up which is expected by the management once the states
are opening up.
• With the increased raw material prices, no dealer is ready to keep the
inventory with them. So once the demand will pick; the dealers will ask
ASTRAL for the stock which is maintained by the company.
• Management is confident to deliver the performance, and this 1 month will
not impact the overall guidance and performance of the company for FY22.
• Management is expecting growth across the business segments and the
business with lower base will deliver higher growth in term of percentage like
ASTRAL POLY TECHNIK
the plastic storage tank.
LTD • Similarly, the infrastructure also had lower base no’s which will also post
higher growth in percentage terms for FY22.
• In pre-covid times, 35-40% business was controlled by the unorganized sector.
The size of the business is around Rs. 33000 Cr.
• There has been substantial increase in polymer prices. With the increase in the
raw material prices it’s difficult for unorganized player to allocate higher
working capital; which helped as a shift from unorganized to organized side.
• Adhesive business peers could not deliver growth in FY21; while ASTRAL grew
by 26% in terms of topline which also signifies the market share growth.
• In overseas operations, ASTRAL is taking market share. US and UK is expected
to deliver good growth no’s as per the management.
• In FY22, ASTRAL will be delivering from three plant locations, currently ASTRAL
is dominating in Western and Southern markets and now it’s entering into
Northern and Eastern markets.
• Two years ago, management has set up plant in North and now in FY22 the
plant is being set up in east. Two more locations Sangli and Aurangabad will be
added. Sangli will take care of Central India demand.
• Raw material prices are in an upward trajectory, and companies pass it on to
the customers based on trend.
• This trend of passing on the price increase is expected to continue; as the
trend is not set today its established over a decade. If there’s decline in raw
material prices then it will create some pressure on margins for the company.

ATULAUTO: Monthly Volume Numbers 1-Jun-21

ATUL LTD May-21 May-20 YoY% MoM%
Three wheeler 100 410 -76% -89%

Please refer to the disclaimers at end of the report

 COMPANY TAKEAWAYS
AUROPHARMA: 4QFY21 Result Flash 31-May-21
4QFY20 3QFY21 4QFY21 4QFY21E YoY% QoQ%
SALES 6158 6365 6002 7558 -3% -6%
EBITDA 1316 1369 1275 1441 -3% -7%
PAT 849 2946 801 916 -6% -73%

EBITDA M% 21.4% 21.5% 21.2% 19.1%

PAT M% 13.8% 46.3% 13.3% 12.1%

AUROPHARMA: 4QFY21 Concall Highlights 31-May-21

Management Participants:
Mr. Ram Prasad Reddy- Chairman, Auropharma US
Mr. N Govindrajan- MD
Mr. Sanjeev I Dani- COO, Head-formulation
Mr. S. Subramanian- CFO
Mr. Sawami Iyer- CFO, USA
Mr. Arvind Bothra- Head IR & Corporate Communication
Mr. Krishna Kiran- IR
• US formulation business declined by 4.5% YoY to Rs 2856 Crs, accounting
47.6% of the consolidated revenue. Revenue on constant currency basis de
grew by 5% YoY to US$ 393 Mn.
• As of 31st March 2021, total of 439 received final approval out of which 91
injectables have received final approval and 54 are awaiting final approval.
During the quarter 9 ANDAs were filled with USFDA and received approval for
9 ANDAs including 3 injectables.
• Europe business de grew by 6% YoY to Rs 1553 crs and contributed 25.9% to
the revenue on account of stock up at the start of pandemic in 4QFY20.
• Growth market revenue de grew by 18.8 % YoY to Rs 305.7 crs and
contributed 5.1% of the revenue. The decline was due to low footfalls of
AUROBINDO PHARMA
patient to hospitals and pharmacies in certain markets due to the Covid
LTD situation.
• ARV business grew by 28.7% YoY to Rs 491.2 crs and contributed 8.2% to the
revenue. The growth is on the account of increased conversion from TLE to
TLD across geographies.
• Net organic CAPEX for the quarter stood at US$ 88 Mn.
• During the quarter R&D spend for the quarter stood at Rs 457 cr that is 7.6 %
of revenue.
• Finance cost stood at 1.4% on account of multiple currency loans.
• COVID vaccine facility will be completed by June 2021, and then process
validation will start after this only the commercialization will start and for
UB612 awaiting DCGI approval then trails can start in India.
• Vizag injectable plant for Europe and ROW is expected to complete in 12-14
months.
• The company has launched 19 products during the quarter including 10
injectables which will start contributing to revenues from next quarter.
• The PCB facility has the capacity of 250 Mn doses and the new vaccine facility
has the capacity of 480 Mn doses.
• Biosimilars is expected to launch by 2HFY23 and mainly it would be oncology
products.
• Management guided that going forward growth would be aided by capacity
expansion for API and injectables, PLI scheme and launches.

Please refer to the disclaimers at end of the report

 COMPANY TAKEAWAYS

AUROPHARMA 31-May-21
• Auropharma and its partner Vaxxinity had approached DCGI last week seeking
permission to conduct Phase-2/3 clinical trials of its COVID-19 vaccine UB-
612.The approval is expected in December or January next year.
• Company has entered into an exclusive agreement with US biotech company
COVAXX in December 2020 to develop and manufacture UB-612 for India and
AUROBINDO PHARMA UNICEF.
LTD • Aurobindo Pharma can supply up to 480 million doses of UB-612 for India and
other countries.
• Vaccinity is in the process of seeking emergency use approval (EUA) from
Taiwan in the second half of July.
• In anticipation of Taiwan approval - the company would begin production of
25 million doses, which can be expanded as the requirement goes up
• The company is also setting up a new facility to manufacture viral vector
vaccines with an investment of Rs 250-Rs 275 crore .Its upcoming vaccine
facility will have the capacity to manufacture 400 - 450 million doses of COVID-
19 vaccines.

Auto Sector Update: Companies expect pent-up demand surge 02-Jun-21

• Acocrding to Mr.Tae-Jin Park, Chief Sales and Business Strategy Officer, Kia
India: The Covid-19 second wave have disrupted the automobile industry.
However, the need for personal mobility and pent-up demand will drive the
recovery for the entire industry in the coming months.
• Acocrding to Mr.Veejay Nakra, CEO, Auto Division, M&M: With the cases
coming down and gradual opening up of markets, the company expects strong
AUTO SECTOR demand rebound. It is working with supplier to manage supply chain issues
and meet the market demand.
• Acocrding to Mr.Naveen Soni, Senior Vice-President, Toyota Kirloskar Motor:
The overall market situation as well as consumer sentiments are better than
May 2020. It registered a 104% growth in cumulative wholesale clocked from
January to May this year on YoY basis.
• Acocrding to Mr.Yadvinder Singh Guleria, Director – Sales & Marketing, HMSI:
May’21 witnessed a slowdown in sales momentum led by 80% of the network
being non-operational due to local lockdowns. However, outlooks remain
volatile for near term
BAJAJ-AUTO: Monthly Volume Numbers 1-Jun-21
2-WHEELERS May-21 May-20 YoY% MoM%
Domestic 60,342 39,286 54% -52%
Exports 180,212 73,512 145% -19%
Total Motorcycles 240,554 112,798 113% -31%

BAJAJ AUTO LTD

Commercial Vehicles
Domestic 488 788 -38% -94%
Exports 30,820 13,542 128% -4%
Total CVs 31,308 14,330 118% -21%
Total (Mot+3ws) 271,862 127,128 114% -30%

Overall Domestic 60,830 40,074 52% -55%

Overall Exports 211,032 87,054 142% -17%

Please refer to the disclaimers at end of the report

 COMPANY TAKEAWAYS

BAJAJ-AUTO: Management Interview Highlights 01-Jun-21

Mr.Rakesh Sharma- ED
• 80-90% of the company’ dealerships are either in lockdown or are under
restrictions in the country.
• The company is expecting a quick bounce back post second wave of covid.
• The Company anticipates run rate of 200,000 units per month.
BAJAJ AUTO LTD
• Mass segment will take more time to recover versus premium segment.
• The company is reducing the inventory level and it is not seeing the need to
stop productions.
• Supply side issues are impacting the company’s production levels.
• Exports: Majorly, all regions where the company is present like Asian, African
and Latin America markets are seeing some covid led interruptions. The
demand is being serviced by partially opened dealerships.
• Improving valuation of Indian currency against these markets is helping the
company in maintaining stability in Exports.

BANKBARODA: Management Interview Highlights 31-May-21

Mr. Sanjiv Chadha- MD & CEO
• Business growth was weak due to the international business.
• GNPAs stood lower at 8.87 in 4QFY21 as against 9.63% on proforma basis last
quarter.
BANK OF BARODA • The recoveries will be better in FY22 vs. FY21.
• Credit cost is likely to further improve going ahead.
• The new mandate in restructuring & ECLGS will help mitigate the COVID 2.0
impact.
• The international book is not likely to face the challenges in the FY22 which it
had in FY21

Banking Sector: Banks list Rs 83k crore NPAs for bad bank 04-Jun-21
• Public sector banks have shortlisted 28 loan accounts to be transferred to
NARCL.
• Of these, lead banks have completed the process of obtaining approval from
co-lenders in 22 accounts with Rs 82,500 crore of loans due. Within this
amount, borrowers such as VOVL, Amtek Auto, Reliance Naval, Jaypee
Infratech, Castex Technologies, GTL, Visa Steel and Wind World account for
80%.
• Other large companies that are to be sold to the NARCL include Lavasa
Corporation, Ruchi Worldwide, Consolidated Construction and a few toll
BANKING SECTOR projects.
• On Wednesday, bankers met to finalize the capital structure of the bad bank
(NARCL).
• Sources said that the company would need at least Rs 6,000-crore capital of
equity and debt to start operations.
• In terms of Reserve Bank of India (RBI) regulations, asset ARCs must pay 15%
of the purchase consideration in cash up front.
• Since all these 28 loan accounts have been fully provided for, any
consideration that the banks receive will go in to their bottom line as profit.
• Once capital structure is finalized the promoters will seek a license from RBI.
• While all banks will hold just below 10% stake, Canara bank and Bank of
Maharashtra will hold just over 10% and may be given promoter status.
• Lenders are hopeful of completing the loan transfer process to NARCL in July.

Please refer to the disclaimers at end of the report

 COMPANY TAKEAWAYS

BANKINDIA: 4QFY21 Result Flash 4-Jun-21

4QFY20 3QFY21 4QFY21 4QFY21E YoY% QoQ%
NII 3793 3740 2936 3897 -23% -21%
Other Inc 1688 2068 2053 1776 22% -1%
Net Inc. 5481 5807 4989 5674 -9% -14%
O/P Exp. 2828 2972 2895 2894 2% -3%
PPP 2653 2836 2094 2780 -21% -26%
BANK OF INDIA
Provisions 8142 1980 1831 1622 -78% -8%
PAT -3571 541 250 764 NA -54%
Advances 368883 368711 365687 394705 -1% -1%
Deposits 555505 611879 627114 636621 13% 2%
GNPA% 14.8% 13.3% 13.8%
NNPA% 3.9% 2.5% 3.4%
C/I Ratio% 51.6% 51.2% 58.0%

BERGEPAINT: 4QFY21 Concall Highlights 2-Jun-21

Management Participant:
Mr. Srijit Dasgupta- Director Finance & CFO
• The Company newly launched products which includes long life seven, easy
clean fresh, silk breathe easy and construction chemicals did well during the
quarter.
• Addressed RM cost through renegotiation, innovative reformulation and
strategic purchases during the year.
• The effect on gross margin was mitigated during the quarter despite sharp
increase in raw material prices led by use of low-cost inventory and strategic
purchases during the quarter. The ratio was also improved because of the
effect of some institutional business in decorative and protective coating line
through some supply applies contracts.
• The Company had not taken any price increase in FY21.
• Man power cost increased significantly because of higher scale of operation
while overheads were largely controlled on account of savings from travelling.
• The Company’s wholly owned Polish subsidiary Bolix S.A has improved
BERGER PAINTS INDIA structurally and is top performer in both profitability and top line in FY21.
LTD • Witnessed good growth from water proofing in FY21 and hope to expand this
business going forward.
• In Q1 and Q2, delayed some of expense but came back strongly in Q3 and Q4
of FY21.
• The difference in volume value gap has reduced in decorative business led by
recovery from metros during the quarter.
• The solvent-based products saw highest increase during the quarter; also
monomers witnessed increase in its prices. In May-21, the company has
already taken in the range of 2-2.5% and is further looking at another price
increase in couple of months-time.
• Management does not expect pent up demand to come in 2QFY22.
• Expect Lucknow plant to come onstream by Mar-22 and the estimated project
cost stood at Rs. 800 cr. vs Rs. 700 cr. earlier. The Plant will cater to
decorative, protective, emulsion etc.

Please refer to the disclaimers at end of the report

 COMPANY TAKEAWAYS

BHARATFORG: 4QFY21 Result Flash 4-Jun-21

4QFY20 3QFY21 4QFY21 YoY% QoQ%
SALES 881 1036 1307 48% 26%
EBITDA 110 215 359 226% 67%
BHARAT FORGE LTD PAT -73 93 205 NA 120%

EBITDA M% 12.5% 20.7% 27.5%

PAT M% -8.3% 9.0% 15.7%

• Note: In 4QFY21 Exceptional Loss of Rs.0.80 Crs is related to Voluntary

Retirement Scheme (VRS)

CADILAHC: Zydus Cadila, first Indian Company gets permission for clinical
trials of antibodies cocktail to treat COVID-19 02-Jun-21
• The Company has set up a new fully owned subsidiary Unilever India Ltd which
was incorporated on 7th June, 2020 with an authorised share capital of Rs.
2,000 cr. and paid-up capital of Rs. 60 cr. The same will help HINDUNILVR to
CADILA HEALTHCARE significantly lower taxes under corporate tax rate reduction.
• Presently, the Unilever India Ltd is in the process of setting up its
LTD
manufacturing facility at Sumerpur, Uttar Pradesh. It is proposed to
manufacture spray drying washing powders at this factory. The company is in
the process of issuing shares of Rs. 300 crores by preferential allotment.
• With transaction pricing, HINDUNILVR will buy products from the new
company which will only be entitled to manufacturing profits and not
marketing profits.

Canara Bank appoints S K Majumdar as CFO 01-Jun-21

• Canara Bank has designated S K Majumdar, General Manager of the Bank as
Chief Financial Officer (CFO) with effect from May 31, 2021 in place of V
CANARA BANK Ramachandra, Chief General Manager.
• Majumdar, aged 52 years, Chartered Accountant and Cost Accountant by
qualification has vast banking experience of more than 21 years in various
branches and administrative offices in various capacities. He has been
associated with the bank since January 2000.

CIPLA: Cipla says close to committing US$1 bn to Moderna for booster

vaccine 01-Jun-21
• Cipla is seeking fast-track approvals to bring Moderna's single-dose Covid-19
booster vaccine in India expeditiously.

CIPLA LTD • The company however has requested the government to provide
confirmation on four critical points :
o Exemption from price restriction - It has requested for the government's
assurance that no price capping would apply for imported vaccines to be
provided through private hospitals and that the booster vaccine can be
covered under the liberalised pricing policy and kept exempt from any price
capping.

Please refer to the disclaimers at end of the report

 COMPANY TAKEAWAYS

o Indemnification - Cipla has also sought indemnity in case of any adverse

effects or complications caused by the Moderna vaccine and cited instances of
the US Countermeasures Injury Compensation Program (CICP) and similar
programmes in the UK, Canada, EU, Singapore and even the WHO-led Covax,
that protect vaccine manufacturers/distributors from claims and underwrite
the compensation burden.
o Bridging trial waiver - The Company has sought confirmation that the
Moderna booster vaccine, having received the USFDA's Emergency Use
CIPLA LTD Authorisation (EUA) will not require a bridging trial in India. However, Cipla
stated that as Moderna's India partner, it will comply with post-marketing
surveillance requirements.
o Basic customs duty exemption - it mentioned that it appreciates the
government's intent on exempting basic customs duty on import of Covid-19
vaccines and urged it to be extended to the whole of 2022.

• It has said such an assurance will help make this significant financial
commitment of more than US$1 bn (over Rs 7,250 crs) advance to Moderna
for its booster vaccine in India.

COALINDIA: - "Provisional Production and off-take performance of

COALINDIA and Subsidiary Companies for the month of May 21 and for the
period Apr 21-May 21" 02-Jun-21

COAL INDIA LTD

Please refer to the disclaimers at end of the report

 COMPANY TAKEAWAYS

CUB: Management Interview Highlights 01-Jun-21

Dr. N Kamakodi- MD & CEO
• The bank has done Rs 150 Cr of additional provisions for second wave of Covid
in 4QFY21.
CITY UNION BANK LTD • Rs 125 Cr impact on interest income for interest reversals. The reason for
decline in NIM.NIM is likely to improve going ahead.
• Rs 1100 Cr of slippages were there in FY21.Slippages will be lower than FY21
in FY22 & will see some recovery H2 onwards. Slippages guidance of 2.75%-
3.1% in FY22.
• Return ratios are likely to improve going ahead.

DIXON: Management Interview Highlights 04-Jun-21

Mr. Saurabh Gupta - CFO
• As the PLI scheme for the telecommunication has announced the company
will be filing for it and management believes that they are the one of strong
contender in domestic category.
• Under the telecom PLI the investment required over the period of 4 years is
100 crs and revenue potential is Rs 6000 crs over the period of 5 years.
DIXON TECHNOLOGIES • The focus under the JV with Bharti enterprise is to manufacture modems and
(INDIA) LTD routers, for which the production would start from 3QFY22 onwards.
• In 4QFY21 the gross margin and EBITDA margin was impacted due to segment
mix and steep input price increases.
• Management guided that going forward the revenue would grow from
2QFY22 but the margins would be in a bit lower side that is between 4-4.5 due
to change in sales mix at company level.
• Management guided that they are deepening the relationship with Boat on
strategic level and PLI is expected in wearables category also.
• Discussion with the government is in the progress on the mobile PLI to extend
the PLI period by 1 year that is to 2021-2022 as only 1 company out of 15
companies have achieved the threshold.
• For FY22 management guided for the revenue of around Rs 10000-10500 crs.

DMART: List of properties bought by the company in last one year

02-Jun-21
• According to real estate data and analytics firm Propstack show, DMart has
acquired 7 properties with total value of Rs.367 crore from July’20 onwards.

Date Location Area Size (Sq Ft) Value (in Rs Crore)

AVENUE SUPERMARTS LTD Jul-20 Narsinghi, Hyderabad 43,915 38
Dec-20 Tathawade, Pune 48,989 31
Dec-20 Chembur, Mumbai 42,922 113
Dec-20 Kalyan, Mumbai 51,930 39
Feb-21 Nizampet, Hyderabad 41,760 34
Mar-21 Srinivagilu, Bengaluru 36,697 30
May-21 Bhandup, Mumbai 66,981 81
TOTAL 333,194 367

Please refer to the disclaimers at end of the report

 COMPANY TAKEAWAYS

EICHERMOT: Monthly Volume Numbers 1-Jun-21

Royal Enfield May-21 May-20 YoY% MoM%
350 cc 22,734 17,543 30% -51%
above 350cc 4,560 1,570 190% -32%
Total sales 27,294 19,113 43% -49%
Exports 7,221 684 956% 60%

EICHERMOT: Monthly Volume Numbers 1-Jun-21

VECV May-21 May-20 YoY% MoM%
Eicher Trucks & Buses
Domestic 656 430 53% -58%
Exports 519 231 125% -4%
Volvo Trucks 48 25 92% -2%
Total 1,223 686 78% -43%

EICHER MOTORS LTD

EICHERMOT: Management Interview Highlights 01-Jun-21
Mr.Vinod Dasari- CEO
• The company is targeting a double-digit growth over FY21.
• The company is aiming 20% revenue from exports in long term.
• Current, capacity utilisation is at around 60-65% mainly because of supply
chain shortage.
• The company is expecting plenty of pent-up demand in domestic market. It is
exceptionally well in the international markets.
• The company have a bunch of new models to launch and it was getting
clogged due to COVID restrictions.
• Now, it will have to produce adequate inventory to prepare for new launches
and launch them in coming quarters.

ESCORTS: Monthly Volume Numbers 1-Jun-21

May-21 May-20 YoY% MoM%
Domestic 6,158 6,454 -5% -4%
Exports 265 140 89% -55%
ESCORTS LTD
Total 6423 6594 -3% -8%

Please refer to the disclaimers at end of the report

 COMPANY TAKEAWAYS

GSPL: 4QFY21 Result Flash 3-Jun-21

4QFY20 3QFY21 4QFY21 4QFY21E YoY% QoQ%
GUJARAT STATE SALES 595 576 465 534 -22% -19%
PETRONET LTD EBITDA 356 399 344 344 -3% -14%
PAT 226 248 206 202 -9% -17%

EBITDA M% 59.8% 69.3% 74.0% 64.4%

PAT M% 37.9% 42.9% 44.4% 37.9%

GUJGAS: 4QFY21 Result Flash 1-Jun-21

4QFY20 3QFY21 4QFY21 4QFY21E YoY% QoQ%
SALES 2667 2829 3429 2948 29% 21%
GUJARAT GAS LTD EBITDA 427 614 554 552 30% -10%
PAT 246 392 350 340 42% -11%

EBITDA M% 16.0% 21.7% 16.2% 18.7%

PAT M% 9.2% 13.8% 10.2% 11.5%

HDFCBANK: HDFC Bank announces plans to become carbon neutral by 2031-

32 04-Jun-21
• Ahead of the World Environment Day on June 5, private sector lender HDFC
Bank on Thursday announced its plans to become carbon-neutral by 2031-32.
• As part of this initiative, the bank is looking at reducing its emissions, energy,
and water consumption. It will continue to incorporate and scale up the use of
renewable energy in its operations.
HDFC BANK LTD • The bank has a three-pronged strategy to achieve its objective to become
carbon neutral- reduce consumption, transition to renewable energy, and
offset carbon footprint.
• As part of the strategy, it is planning various initiatives, including decrease
absolute emissions and energy consumed from the current level of 3,15,583
MT CO2 emissions, convert 50 per cent of its total sourced electricity to
renewable energy, create single-use plastic-free corporate offices, plant 25
lakh trees and reduce water consumption by 30 per cent.
• As part of its ESG (environmental, social, and corporate governance) strategy,
the bank will also focus on offering loans for green products like electric
vehicles at lower interest rates and incorporating ESG scores in its credit
decisions.

Please refer to the disclaimers at end of the report

 COMPANY TAKEAWAYS

HDFCBANK: Amid Covid, HDFC Bank deploys mobile ATMs across 50 cities in
India 02-Jun-21
HDFC BANK LTD • India's largest private lender HDFC Bank said it has installed mobile ATMs
across 50 cities in India, which can be used for over 15 transactions by
customers.
• These ATMs have been deployed in various metros and non-metros in view of
the restrictions imposed by Covid-19.
• Customers can conduct over 15 types of transactions using the Mobile ATM,
which will be operational at each location for a specific period. The Mobile
ATM will cover 3-4 stops in a day.

HEIDELBERG: 4QFY21 Concall Highlights 31-May-21

Management Participant:
Mr. Jamshed Naval Cooper- MD
• The Company has repaid the 2nd tranche of NCD to the extent of Rs. 1.25 bn
while the last tranche is expected to get repaid in Dec-21.
• As of now witnessing upwards movement in both Pet-coke and coal prices and
are expected to remain on the higher side due to supply constraints.
• The Price difference between non-trade and trade sales in central region is in
the range of Rs. 800-400/ton.
• The Company’s dependence on grid power is reduced to 63% during the
quarter.
HEIDELBERG CEMENT • Pet-coke usage during the quarter stood at 40-45% vs. 60% earlier.
INDIA LTD • The Company continued to grow and remain strong in-home markets.
• Lead distance for the quarter stood at 350 km.
• Management Guidance:
• Expected Capex for FY22- Rs. 95 Cr.
• Other expense is expected to remain at ~5% higher than the year.
• Will be doing Gujrat project (expect to take 2 years to get a license) while
there exist very low chances for M&A opportunity in central India.
• The impact of the increasing pet-coke prices will get mitigated with benefits
from AFR in coming quarters.
• Will able to benefit in power & fuel cost post the commercialization of 5MW
solar power plant and AFR usage.
• The Company’s strategy going forward will be to maintain the price at the
market place and reduce the logistics cost, optimize road and rail mix to
further reduce cost.
• 5 MW solar power plants (expected to produce 9-10 mn units/year) will
replace existing grid power which costs in the range of Rs. 6-6.5/unit.
• Will receive GST incentive to the extent of Rs. 16-17 cr. per year till Feb-23.
• Expect mining opportunities to come in Madhya Pradesh in coming years.
• Employee cost increased on account of increments during the quarter while
going forward some minor increase is expected due to promotions in 1QFY22.

Please refer to the disclaimers at end of the report

 COMPANY TAKEAWAYS

HEROMOTOCO: Monthly Volume Numbers 1-Jun-21

May-21 May-20 YoY% MoM%
Motorcycles 178,706 106,038 69% -47%
Scooters 4,338 6,644 -35% -87%
HERO MOTOCORP LTD Total 2W 183044 112682 62% -51%

Domestic 159,561 108,848 47% -53%

Exports 23,483 3,834 512% -21%

HINDUNILVR: 02-Jun-21
• The Company has set up a new fully owned subsidiary Unilever India Ltd which
was incorporated on 7th June, 2020 with an authorised share capital of Rs.
2,000 cr. and paid-up capital of Rs. 60 cr. The same will help HINDUNILVR to
HINDUSTAN UNILEVER significantly lower taxes under corporate tax rate reduction.
• Presently, the Unilever India Ltd is in the process of setting up its
LTD manufacturing facility at Sumerpur, Uttar Pradesh. It is proposed to
manufacture spray drying washing powders at this factory. The company is in
the process of issuing shares of Rs. 300 crores by preferential allotment.
• With transaction pricing, HINDUNILVR will buy products from the new
company which will only be entitled to manufacturing profits and not
marketing profits.

ICICIGI: 02-Jun-21
• Company has tied up with Microsoft to strengthen and automate its quality
control processes. The insurer plans to deploy Microsoft’s artificial intelligence
(AI) tool Azure Speech Services and Natural Language Processing (NLP) to
screen its daily service calls made by customer service reps.
• The deployment of Azure’s artificial tools will allow ICICI Lombard to improve
the accuracy of its quality audits.
• Earlier such processes required the company to manually screen a sample of
ICICI LOMBARD 20% of the over 1000 calls a day that the company made for potential
GENERAL INSURANCE improvements.
COMPANY LTD • The improved efficiency will enable ICICI Lombard to improve its customer
service. The new system allows Lombard to screen 100% of its calls now.
• The new technology will help the company to solve the multiplicity of
languages, with customers often switching between English and Hindi during
calls.
• Azure Speech Services provide a wide range of speech recognition and
generation capabilities including speech transcription, text-to-speech, speech
translation, and speaker recognition.

Please refer to the disclaimers at end of the report

 COMPANY TAKEAWAYS

IEX Electricity volume update 1-Jun-21

IEX Monthly Volume May-20 Apr-21 May-21 YOY % MoM %
DAM (Mn Unit) 5,574 5,710 4,364 -22% -23.6%
TAM (Mn Unit) 431 326 396 -8% 21.6%
RTM (Mn Unit) - 1,473 1,436 NA -2.5%
Green Market (Mn Unit) - 186 346 NA 86.2%
IEX Total Electricity Volume (Mn
6,005
Unit) 7,696 6,543 9% -15.0%
REC (000) 278 - - NA NA
Total Volume 6,283 7,696 6,543 4.1% -15.0%

INDIAN ENERGY
EXCHANGE LTD

INDIGO 01-Jun-21
• Company announced that senior employees will have to go on compulsory
leave without pay (LWP) for up to four days per month till September as
passenger traffic has reduced due to the second wave of the COVID-19
pandemic.
• LWP programme for all employees would be in range from 1.5 to 4 days
INTERGLOBE AVIATION depending on the employee group.
LTD • Employees in Band B and Band A have not been touched under this LWP
programme.
• All pilots would undertake 3 days of LWP for the next 3 months effective 1st
June, 2021.

Please refer to the disclaimers at end of the report

 COMPANY TAKEAWAYS

INFY: Infosys and Roland-Garros Bridge the Experience Gap for the Global
Tennis Ecosystem with AI, Immersive 3D and Digital Platforms 02-Jun-21
• INFY a global leader in next-generation digital services and consulting, and the
French Tennis Federation unveiled new technologies to help bridge the gap
between remote fans and the game, transforming the Roland -Garros
experience for the entire tennis ecosystem.
• Fans, players, coaches, broadcasters, journalists, and the tournament
INFOSYS LTD organizers will navigate the historic Grand Slam in innovative ways by using a
new set of immersive and intelligent tools. Roland - Garros 2021 will see
Artificial Intelligence (AI), 3D and cloud solutions being leveraged to transform
match viewing, player training, tournament reporting, and broadcast editing.
To celebrate the Roland - Garros spirit and heritage, a first-of-its-kind digital
art museum will also be launched

ITC: 4QFY21 Result Flash 1-Jun-21

4QFY20 3QFY21 4QFY21 4QFY21E YoY% QoQ%
SALES 11782 13080 14342 14001 22% 10%
ITC LTD EBITDA 4504 4785 4871 5741 8% 2%
PAT 3927 3587 3820 4493 -3% 7%

EBITDA M% 38.2% 36.6% 34.0% 41.0%

PAT M% 33.3% 27.4% 26.6% 32.1%

LUPIN: 04-Jun-21
• The company announced the launch of the authorized generic version of
Brovana (arformoterol tartrate) which is an Inhalation Solution 15 mcgꝉ/2 mL,
unit-dose vials, of Sunovion Pharmaceuticals Inc.
• Arformoterol Tartrate Inhalation Solution 15 mcg/2 mL, is indicated for the
long-term, twice-daily maintenance treatment of bronchoconstriction in
patients with chronic obstructive pulmonary disease (COPD), including chronic
bronchitis and emphysema
• The product is for use by nebulization only.
• Brovana Inhalation Solution is not indicated to treat acute deteriorations of
chronic obstructive pulmonary disease and asthma.
• Brovana had branded sales of USD274m in North America in the 12-months
ending Mar’21. Its last patent is set to expire on 9th Nov’21.
LUPIN LTD

LUPIN 02-Jun-21
• The U.S. FDA has accepted the Biologics License Application for its proposed
biosimilar to Neulasta (pegfilgrastim) through a filing using the 351(k)
pathway.
• Pegfilgrastim has estimated annual sales of USD 3.66 billion in the U.S. (IQVIA
MAT December 2020).
• This BLA expands the oncology portfolio and is the first biosimilar filing in the
U.S..

Please refer to the disclaimers at end of the report

 COMPANY TAKEAWAYS
M&M: Management Interview Highlights 02-Jun-21
Mr.Hemant Sikka- President-Farm Equipment
• Industry expected to report low single digit growth for FY22 and the company is
expected to outperform the industry.
• 60% dealerships of the company were closed in May’21.
• The company will take price-hikes in phased manner, considering commodity
inflation.
• From last 10 days, traction started coming in for both brands Mahindra and Swaraj.
• Farmers have money and with easing of Covid situation, their confidence is coming
back and yielding good results. All agri related parameters are strong.
• No inventory pileup: the company’s inventory position is better on YoY basis and
management preferred to have bit higher inventory from current level.
• The company was operating at 60% capacity and lost 40% production due to supply
chain issues.
M&M : Monthly Volume Numbers 1-Jun-21
MAHINDRA & May-21 May-20 YoY% MoM%
MAHINDRA LTD UV 7748 3745 107% -57%
Cars & Vans 256 122 110% 159%
overall PV 8004 3867 107% -56%
LCV < 2T 1828 547 234% 17%
LCV 2 T – 3.5 T 5220 4574 14% -57%
LCV > 3.5T + MHCV 188 49 284% -44%
OVERALL CV 7236 5170 40% -49%
3W 272 39 597% -87%
Total Domestic 15512 9076 71% -55%
Exports 1935 484 300% -3%
Total Sales 17447 9560 83% -52%

MAGMA: Management Change 01-Jun-21

• These changes reflect the company's transition into the next phase of growth and
the ongoing commitment to achieving the highest standards of corporate
MAGMA FINCORP LTD governance.
• The balance sheet has been strengthened significantly through the equity
infusion, with the Tier1 capital adequacy ratio standing at 66.8 percent, and
leverage at 1.3 times as on May 15, 2021.
• The company has created capital buffers and opted for aggressive write-off
policies in line with a bank structure.
• More appointments on the cards
• The company is going to augment the leadership team with the appointment of
highly qualified and experienced professionals from reputed financial institutions
for various senior management positions, set to join by Q2.FY22
• As the second wave of COVID-19 is subsiding, the new management is expected to
drive business acceleration.
• The rebranding of the company as a Poonawalla Group firm is underway.
• The company’s cost of funds is expected to fall in line with the industry best, along
with resultant improvement in credit rating and progress towards resilience under
the Poonawalla brand.

Please refer to the disclaimers at end of the report

 COMPANY TAKEAWAYS
MARUTI: Monthly Volume Numbers 1-Jun-21
May-21 May-20 YoY% MoM%
Mini 4,760 1,995 139% -81%
Compact 20,343 6,262 225% -72%
Mid size 349 192 82% -78%
MARUTI SUZUKI INDIA
Utility vehicles 6,355 3,636 75% -75%
LTD
Vans 1,096 1,617 -32% -90%
LCV 868 163 433% -32%
Sales to other OEM 1,522 23 6517% -71%
Total Domestic 35293 13888 154% -75%
Exports 11,262 4,651 142% -35%
Total sales 46555 18539 151% -71%

MCX Monthly Volume Update (May 2021): 1-Jun-21

MCX Monthly Volume (FUTCOM) May-20 Apr-21 May-21 YoY% MoM%
Bullion 2,968 2,287 2,923 -2% 28%
Energy 1,190 1,802 1,762 48% -2%
Metals 791 1,109 1,804 128% 63%
Agri 41 129 111 169% -14%
Traded Contract Total value (Rs Bn) 4,991 5,327 6,599 32% 24%

OPTFUT Volume May-20 Apr-21 May-21 YoY% MoM%

Bullion 133 96 179 35% 86%
Metals 0.14 0.04 0.09 -36% 121%
MULTI COMMODITY Energy 28 201 238 759% 18%
EXCHANGE OF INDIA Traded Contract Total value (Rs Bn) 160 297 417 160% 40%

LTD

MCX FUTCOM Traded Value (Rs in Bn) Growth YoY%

10,000 9,085
7,923
9,000 8,403 8,541
7,861 7,847
8,000 7,476
6,732 6,793
44%

47%
38%

6,530
36%

7,000 6,299
24%

24%

6,000
20%

4,991
18%

5,000
10%

9%

4,000
-5%

2,818
3,000
-20%

2,000
1,000
-47%

Please refer to the disclaimers at end of the report

 COMPANY TAKEAWAYS

METROPOLIS: Management Interview Highlights 01-Jun-21

Ms. Ameera Shah - MD
• Metropolis Healthcare expects strong performance in FY22 as the number of
tests for COVID-19 has surged in the first quarter of the fiscal, while testing for
other diseases remains strong.
• Non-COVID-19 testing has not been impacted as last year because of complete
lockdown last year which is not the case now.
• The price of RT-PCR tests has dropped 80 percent from Rs 4,500 last year to
about Rs 1,000 now, but volumes had increased and the company had the
capacity to test 25,000 samples a day.
METROPOLIS • COVID-19 testing has benefited Metropolis as 8 lakh new customers used
HEALTHCARE LTD services of the diagnostic chain for the first time COVID tests. Ten percent of
those customers began using non-COVID tests offered by Metropolis
Healthcare in H2FY21, and the company expects higher conversions in future.
• Metropolis will expand testing capacity by 30-35 percent across its existing
network including one global and 13 regional reference labs, 90 testing
laboratories and 1,800 collection centres. This will be done in the next three
years with a capex investment of Rs 35 crore.
• Company has home services network is in 60 cities and is planning to expand
to 100 cities
• Company was scouting for selective buyouts of pathology labs to expand
further in regions where it is already present and fill the vacuum in states such
Madhya Pradesh, Maharashtra, Gujarat, Uttar Pradesh, Orissa, Jharkhand,
Telangana and Andhra Pradesh.

MOTHERSUMI: 4QFY21 Result Flash 2-Jun-21

4QFY20 3QFY21 4QFY21 4QFY21E YoY% QoQ%
SALES 14434 17092 16972 16868 18% -1%
EBITDA 1242 1796 1722 1586 39% -4%
PAT 40 1128 849 585 NA -25%

EBITDA M% 8.6% 10.5% 10.1% 9.4%

PAT M% 0.3% 6.6% 5.0% 3.5%

MOTHERSON SUMI
SYSTEMS LTD MOTHERSUMI: 4QFY21 Concall Highlights 2-Jun-21
Management Participants:
Mr. Vivek Chaand Sehgal- Chairman
Mr. Laksh Vaaman Sehgal- Director
Mr. G. N. Gauba- CFO
Mr. Pankaj K. Mital- ED
• The company’s current order book has 25% of the new orders for use in EV
production by OEMs. It generally takes almost 2 years from placing order to
the launch of the products.
• Almost all new orders are related to SMRPV.
• New technology: The Company is launching some of the camera programs and
currently it is at very small level.

Please refer to the disclaimers at end of the report

 COMPANY TAKEAWAYS

• Car makers are affected by chip shortage issue. However, the company is not
impacted due to its diversified portfolio catering to other segments like trucks,
buses, 2-wheelers etc.
• Newest cars are facing more supply chain shortage issue as they need newest
chips, however supply chain for old models (launched previously) is not
MOTHERSON SUMI impacted to that extent.
• PKC’s market penetration in China is good. The company is growing well in
SYSTEMS LTD
China market and it is setting up a new plant there to cater demand for FAW
truck.
• The company aims to grow revenue by 3x to $36 billion by FY25.
• Overall supply challenges led to higher cost. Copper prices have moved sharply
that majorly impacted margins in the quarter and it has lag of almost 3-6
months as of now.
• Tax rate would be 25% for India business, going ahead. Also, for other
business as well it will be in the same range of 25%.
• The company’s capex plan for SMRPV is 175 million euro and it won’t need
any Greenfield capacity addition to cater the current order book.
• The company is yet to confirm the overall CAPEX for FY22 and this would be
declared post 2HFY22.

MTARTECH: 4QFY21 Result Flash 2-Jun-21

4QFY20 3QFY21 4QFY21 YoY% QoQ%
SALES 616 552 692 12% 25%
MTAR TECHNOLOGIES EBITDA 145 175 301 107% 72%
LTD PAT 88 89 180 104% 103%

EBITDA M% 23.6% 31.7% 43.5%

PAT M% 14.3% 16.0% 26.1%

MUTHOOTFIN: 4QFY21 Result Flash 2-Jun-21

4QFY20 3QFY21 4QFY21 4QFY21E YoY% QoQ%
NII 1581 1771 1838 1796 16% 4%
Opex 531 441 516 506 -3% 17%
MUTHOOT FINANCE LTD
ppp 1101 1390 1361 1338 24% -2%
Prov 5 59 11 37 132% -81%
PAT 814 991 996 963 22% 0%
AUM 41611 50391 52622.3 47852 26% 4%
GS3% 2.2 1.3 0.88
C/I Ratio% 32.5 24.09 27.49

Please refer to the disclaimers at end of the report

 COMPANY TAKEAWAYS

MUTHOOTFIN: 4QFY21 Concall Highlights 2-Jun-21

Management Participants:
Mr. George Alexander Muthoot- MD
Mr. Oomen K Mammen- CFO
• OPEX to AUM reduced in FY21 on the account of improvement in per branch
business and increase in AUM. In next 2 quarters it is again likely to start
increasing.
• Management guided 15% AUM growth for FY22.
• Overall Disbursements in April and May seems to remain impacted on the
account of lockdowns. Disbursements in Home finance company are likely to
be better in FY22.
MUTHOOT FINANCE LTD • Long term Rating has been upgraded to AA+ by CRISIL and ICRA.
• Muthoot money is likely to restart the business from next month onwards.
• LTV stands at 66%.
• The company does not see any threat from banks in term of competition for
gold loans.
• Loan at Home launched in July’20 has about 10K + downloads. On Loan at
home product front, most of the customers don’t opt for the same.
• Auctions stood at Rs 170 Cr in FY21 as against Rs 500 Cr last year. Most of the
auctions were done in 3Q and 4Q of FY21.
• Collection efficiency stood at 99% Home finance in March which reduced in
April due to lockdown.
• The company has appointed Mr. George Jacob Muthoot as Chairman.

NESTLEIND 01-Jun-21
• The Company was working on updating its nutrition and was looking at its
entire portfolio to make sure its products helped meet people's nutritional
needs after the Financial Times reported an internal document at the food
giant wherein it described a large portion of its food and drinks as unhealthy.
• The Company had also reduced sugars and sodium in its products by about 14-
NESTLE INDIA LTD 15% in the past seven years and would continue to make its products
healthier.
• The newspaper said it had seen an internal presentation circulated among top
executives early this year stating that more than 60% of Nestle's mainstream
food and drinks portfolio could not be considered healthy under a recognised
definition of health.
• The paper said this assessment applied to about half of Nestle's overall
portfolio because categories like medical nutrition, pet food, coffee and infant
formula were excluded from the analysis.

NH: 4QFY21 Result Flash 31-May-21

4QFY20 3QFY21 4QFY21 YoY% QoQ%
SALES 743 750 838 13% 12%
EBITDA 96 105 142 47% 35%
NARAYANA
PAT 13 44 70 446% 59%
HRUDAYALAYA LTD
EBITDA M% 12.9% 14.0% 16.9%
PAT M% 1.7% 5.5% 8.1%

Please refer to the disclaimers at end of the report

 COMPANY TAKEAWAYS
NH: 4QFY21 Concall Highlights 2-Jun-21
Management Participants:
Dr. Emmanuel Rupert- CEO
Mr. Viren Shetty- COO
Mr. Kesavan Venugopalan- CFO
• Management delivers record profitability in 4QFY21 building upon the gradual
recovery over several months after an almost washout in 1Q of the last fiscal.
• With the flagship facilities finally gaining traction in 4Q, management have
been able to achieve this on the back of all-round growth registered by
hospitals across the network in India as well as overseas operations at Cayman
Islands.
• In the backdrop of the current unprecedented surge in Covid-19 cases across
the country leading to localized lockdowns coupled with restrictions on
international travel, management remain cautious about a near term recovery
in the business.
• Covid and Non-Covid work done by the management is dependent on the city.
In Mumbai management doesn’t had much covid business over there, In Delhi
location 100% comes from covid revenue.
• In Karnataka, hospitals are dealing with much more covid patients while in
west Bengal it is starting to fall down.
• As per the Management, Active cases from Covid could see further fall in the
NARAYANA remaining quarter for 1QFY22.
HRUDAYALAYA LTD • Margins particularly for NH are lower for the covid patients then other surgery
or operations.
• Due to covid, the patients are driving away and for short term company could
see lean period because of Covid, as the other patients are worried to not get
in contact with the covid patients currently in the hospital.
• Management expects patients will take roughly one month period to be back
to hospitals with the current reduced no. of active cases found.
• Private hospitals have to follow government rates on 80% of the beds to be
used by covid patients.
• Management found this rate cut a bit difficult as where the rate cuts are low
the presence of Co. is higher and where the rate cuts are higher than the no.
of beds available by the Co. is lower.
• For third wave, Management is preparing in terms of no. of ventilators and
oxygen being available in contact with large no. of corporates and working for
the nation.
• Management is proactively preparing for third wave particularly for children
as the third wave will impact children, preparing beds for adults as well as
children, training to nurses etc.

NMDC: Details of Production & Sales of Iron Ore (Provisional) for and up to
the month of May 2021 02-Jun-21

NMDC LTD

Please refer to the disclaimers at end of the report

 COMPANY TAKEAWAYS
North America Class 8 Truck: Monthly Volume Numbers 4-Jun-21
NORTH AMERICA TRUCK May-21 May-20 YoY% MoM%
Class 8 Trucks 23,600 6,735 250% -34%

PVR: 4QFY21 Result Flash 2-Jun-21

4QFY20 3QFY21 4QFY21 YoY% QoQ%
SALES 662 320 263 -60% -18%
EBITDA 43 -78 -57 NA -2700%
PAT -71 -49 -289 NA NA

EBITDA M% 6.0% -24.0% -22.0%

PAT M% -11.0% -15.0% -110.0%

PVR: 4QFY21 Result Highlights 02-Jun-21

Management: Nitin Sood- CFO
• Lowest screen addition in FY21 as the company added 13 new screens. This
would be the lowest screen addition by PVR in last five to seven years.
• Co. had 32-odd screens in various stages of fit-out and 13 they have managed
to open before pandemic. Co. has 19 screens which are ready to open once
cinemas get the signal to reopen.
• In FY19-FY20, PVR had opened 87 screens and had reached a screen count of
845 screens. But in FY21, Co. saw shutting down of 16 screens and currently
PVR LTD the company has 842 screens.
• On screen expansion, Mgt. said that currently they have suspended capex and
fit-outs for all other screens. They are not taking handover of any screens.
Decision on Capex plan will be taken once situation gets normal.
• PVR in FY21 saw cost reduction of 63% in fixed cost as compared to FY20. In
terms of rent, it was lower by 79% as compared to FY20 and the 4QFY21 is
lower by 49% as against 4QFY20.
• Due to the ongoing second wave of coronavirus, PVR has again reached out to
landlords for extension of waivers or discounts till business normalizes.
• In FY21, PVR also lowered Common Area Maintenance (CAM) expense by 42%
as compared to FY20 and 4QFY21 is lower by 23% as against 4QFY20.
• In addition, the personnel expenses were lowered by 45% in FY21 as
compared to FY20. Electricity and water expenses were also reduced by 72%
as compared to FY20.
• Only advantage this year is there is a huge pile up of content right now. Film
releases will begin fast. In three to four weeks window, once cinemas reopen,
film releases will start. There is a massive pipeline. So, second half of the year
will look very strong for the co.
• According to an EY report, 2020 witnessed the sharpest drop in number of
single screens, with between 1,000 and 1,500 screens estimated to have shut
down, reducing India’s overall screen count to around 8,000.
• In the first quarter of 2020, multiplexes continued their screen addition with
PVR and Inox adding 20 and 17 screens respectively.
• However, due to the lockdown, all further expansion plans were put on hold.

Please refer to the disclaimers at end of the report

 COMPANY TAKEAWAYS

RAMCOSYS: “Houston-headquartered leading global provider of vertical flight

solutions, Bristow Group Inc. Selects Ramco Aviation” 02-Jun-21
• Global aviation software provider Ramco Systems announced it will implement its
Aviation M&E MRO Software V5.8 to digitally transform the maintenance and
engineering operations of Bristow Group Inc., one of the world’s largest helicopter
operators providing offshore transportation, search and rescue (SAR) and aircraft
RAMCO SYSTEMS LTD support services to government and civil organizations worldwide.
• Ramco shares a decade-long relationship with Era Group (Era). Bristow’s merger
with Era makes them the largest civilian offshore, SAR solution provider and the
largest operator of helicopter models S92, AW189, and AW139. Ramco will deploy
its aviation software to track inventory and manage maintenance, engineering and
operations on a single integrated platform.
RATNAMANI: 02-Jun-21
• The Company has received a Domestic Order of Rs. 81.79 Cr. for Carbon Steel
pipes from Oil and Gas Sector, to be executed between September, 2021 to March,
2022.
RATNAMANI: 4QFY21 Result Flash 2-Jun-21
4QFY20 3QFY21 4QFY21 4QFY21E YoY% QoQ%
SALES 629 441 696 439 11% 58%
EBITDA 96 80 159 73 65% 99%
PAT 67 60 109 50 62% 82%

EBITDA M% 15.3% 18.1% 22.8% 16.7%

PAT M% 10.7% 13.6% 15.7% 11.5%

RATNAMANI: 4QFY21 Concall Highlights 02-Jun-21

Management Participants:
Mr. Vimal Katta- CFO
Mr. Prakash Sanghvi- Chairman and MD
• Management has completed both the capacity expansion plan for CS and SS plant.
• Management expects additional turnover from both the divisions. Certain
RATNAMANI METALS & approvals are pending for the plant commissioned.
• Initially, 1QFY22 was not good due to covid 2nd wave and now gradually when the
TUBES LTD
covid cases started decreasing business has started improving.
• Order book in hand as on 1st May is Rs. 1498 Cr.
• On 2nd June 2021, single order book of Rs. 82 Cr was lined up by the management
for CS division from Oil and gas sector.
• Increase in the oil prices has impacted the projects kept on hold due to covid.
• The hold contracts are now renegotiated by the management based on the
increase in the raw material prices.
• The prices vary a lot due to which the renegotiation is taking place by the
management with its customers whose projects are on hold.
• Management expects strong demand from Europe, Middle East, US with the
increasing oil prices.
• Management also expects the demand to remain strong from pharma, chemical
and Oil and gas sector.
• China has withdrawn their export benefit from 10-30% on different products.
• Increase on raw material prices will be a concern for the management for both CS
as well as SS division.
• Management is focusing more and more towards order booking, as the additional
capacity will also be available with management to serve.

Please refer to the disclaimers at end of the report

 COMPANY TAKEAWAYS

SBIN: State Bank of India puts two corporate bad loan accounts worth Rs 410
crore on sale 01-Jun-21
• SBIN, has put up two corporate non-performing assets (NPAs) worth Rs 409.45
crore for sale to asset reconstruction companies (ARCs) as part of its ongoing
efforts to make recoveries from accounts that have gone bad, according to a
notification on the bank's website.

• The two accounts are:

• Kamachi Industries: The bank’s exposure to Kamachi Industries stands at Rs
355.93 crore
• The bank has set a reserve price of Rs 150 crore for Kamachi, implying a
recovery of roughly 42% of the outstanding amount.
STATE BANK OF INDIA
• Tantia Agrochemicals. The bank’s exposure to Tantia at Rs 53.52 crore.
• Tantia Agrochemicals, is being offered on a full-cash basis.
• ARCs will have the option of paying 42% of the sale amount as upfront cash
and issuing security receipts (SRs) towards the remaining 58%.
•
• Management Comment:
• In the1QFY22, SBI has put NPAs worth Rs 1,200 crore on sale, including those
in the latest tranche.
• In a post-results conference call with analysts, the SBI management said there
are hardly any chunky bad loans left within the bank.
• As far as recovery is concerned, more or less, the numbers would remain in
line
• In FY21, SBI made recoveries and upgrades worth Rs 17,632 crore.
• The pace and extent of recovery will depend on how soon the second wave of
Covid settles down, so that the bank’s recovery efforts can get intensified.

SUPRAJIT: 4QFY21 Concall Highlights 31-May-21

Management Participants:
Mr. K Ajith Kumar Rai- Founder & Chairman
Mr. N S Mohan- MD and Group CEO
Mr. Medappa Gowda J- CFO
• Demand: There is uncertainty due to expectation of third wave of COVID
which may impact the discretionary spending of people. However, it won’t
lead to shut down of plants and won’t have much impact on production.
• The capacity of cable is 300 million units and capacity of lamps is 100-110
million units. Current capacity utilization is at 65% level.
SUPRAJIT ENGINEERING • Pricing: The Company has already taken some price increases and some are
LTD underway. The company is getting adequate support from its customers for
same.

• SENA & Wescon Controls:

• The company faced challenges in servicing customers from Juarez, Mexico
facility and production was shifted to Wichita facitlity. However, it had not
impact the customers of the company.
• IC Supply issue: US and Europe markets on overall basis was impacted by IC
shortage issue, almost all OEMs had shut down their plants for 1-2 weeks at
different periods that had an impact on the company’s performance.

Please refer to the disclaimers at end of the report

 COMPANY TAKEAWAYS

• Margin improved due to turn around in WESCON business led by winning of

new orders and improved operating leverage. According to management,
margins have largely stabilized in the segment.
• In WESCON, the company is coming up with new products and also providing
current products to new customer that is leading to improvement in revenue.

• Phoenix Lamp Division:

• The business was hampered due to ongoing work from home schedules of the
sales division.
• Phoneix India saw headwinds due to shortage of oxygen as it is used in
SUPRAJIT ENGINEERING production of halogen and due to this all plants were shut down.
LTD • The company ordered oxygen generator and it is expected to be
commissioned by around June 2021.

• Automotive Cable Division (SEL):

• Narsapura plant expansion is in progress though it is going bit slow due to
certain Covid‐19 disruptions.
• New products: Brake shoes, it got good response in aftermarket and also got
order from one OEM customer. Its combi brake system also received well in
market.
• In EV, the company migrated from mechanical instrument cluster to electronic
cluster and received good feedback from market.

• On Exports Cable:
• Europe region saw supply issue due to chip shortage and demand continues to
be good.
• It is still navigating through Brexit issue and it also impacted their business in
the region.

TATAMOTORS: Monthly Volume Numbers 1-Jun-21

May-21 May-20 YoY% MoM%
Domestic PV 15,181 3,152 382% -40%
TATA MOTORS LTD
Domestic CV 9,371 1,266 640% -35%
Total domestic 24,552 4,418 456% -38%
Exports CV 2,030 222 814% -8%
Total Volumes 26,582 4,640 473% -36%

TELECOM: 04-Jun-21
• The Department of Telecommunications (DoT) issued guidelines on
implementation of production-linked incentive (PLI) schemes for
manufacturers in the sector.
• The PLI Scheme will be implemented within the overall financial limits of ₹
TELECOM SECTOR 12,195 Crores only for implementation of the Scheme over a period of 5 years.
For MSME category, financial allocation will be ₹1000 Crores
• Small Industries Development Bank of India (SIDBI) has been appointed as the
Project Management Agency (PMA) for the PLI scheme.

Please refer to the disclaimers at end of the report

 COMPANY TAKEAWAYS

• The support under the Scheme shall be provided for a period of five (5) years,
i.e. from FY 2021-22 to FY 2025-26.
• The Scheme is open to both MSME and Non-MSME Companies including
Domestic and Global Companies. Also, manufacturers with products with
Indian technology are encouraged to apply.
• The scheme will be effective from 1st April, 2021 and eligible Applicants can
start the registration process for the Scheme from 4th June 2021
• The Scheme stipulates a minimum investment threshold of ₹ 10 Crores for
TELECOM SECTOR MSME and ₹ 100 Crores for non MSME applicants. Land and building cost will
not be counted as investment.
• Eligibility shall be further subject to Incremental Sales of Manufactured Goods
(covered under Scheme Target Segments) over the base year (FY2019-20).
• The Department of Telecommunications shall grant approvals to 10 eligible
applications each in MSME & non-MSME categories. Out of the 10 applications
in non-MSME category, at least 3 Applicants will be eligible Domestic
companies.
• The scheme for telecom gear manufacturing in India which is expected to
encourage production of equipment worth ₹2.44 lakh crore and create direct
and indirect employment for about 40,000 people.
• The scheme is expected to bring an investment of over ₹3,000 crore and
generate tax revenue of about ₹17,000 crore.

TVSMOTOR: TVS Motor Company expands in Iraq, launches two new

products 01-Jun-21
• It will launch two new products in Iraq as part of its expansion plan in that
country.
• It opened a new showroom with sales, service and spares support in Baghdad,
said it will launch its commuter motorcycle TVS StaR HLX 150 5 Gear and
TVS MOTOR COMPANY LTD three-wheeler TVS King Deluxe Plus in that market.
• TVS StaR HLX 150 5 Gear comes with a 150cc engine. It has been designed
especially for Iraqi roads offering a comfortable riding experience, along with a
stylish black coloured theme for alloy rims and engine
• TVS King Deluxe Plus is a three-wheeler powered by a 4 Stroke, single cylinder,
air cooled 199.26 cc engine.
• Its new showroom spread over 500 sq meters at Palestine Street in Baghdad,
will not only retail a wide range of two-wheelers and three-wheelers but will
also host spare parts and feature a service facility.
• TVS Motor Company has been present in Iraq since 2016, selling two-wheeler
and three-wheelers.

Please refer to the disclaimers at end of the report

 COMPANY TAKEAWAYS

TVSMOTOR: Monthly Volume Numbers 1-Jun-21

May-21 May-20 YoY% MoM%
Domestic 2Ws 52,084 41,067 27% -60%
Domestic 3Ws 131 132 -1% -68%
Total Domestic sales 52,215 41,199 27% -60%

Exports 2Ws 102,332 15,151 575% 8%

Exports 3Ws 12,342 2,556 383% 0%
Total Exports sales 114,674 17,707 548% 7%
TVS MOTOR COMPANY LTD Total sales(Dom+Exp) 166889 58906 183% -30%

Overall 2W 154,416 56,218 175% -32%

Overall 3W 12,473 2,688 364% -2%

Motorcycle 125,188 26,772 368% -6%

Scooter 19,627 16,120 22% -70%

UNIONBANK: Union Bank of India appoints A K Vinod as chief compliance

officer 02-Jun-21
• State-owned Union Bank of India on Tuesday said it has nominated A K Vinod
UNION BANK OF INDIA as its chief compliance officer.
• A K Vinod, chief general manager, has been nominated as the chief
compliance officer with effect from June 1, 2021 in place of K L Raju, general
manager.
• Vinod, 50, who was handling MSME and small corporate vertical of the bank,
has been nominated as the CCO for a minimum period of three years.

VMART: 4QFY21 Concall Highlights 31-May-21

Management Participants:
Mr. Lalit Agarwal- CMD
Mr. Anand Agarwal- CFO
• Demand: The Company had started to see good pickup in demand by the end
of FY21 and had seen strong traction in Holi period with increased number of
footfalls. However, covid hampered demand from start of April 21.
• Industry: The Company is anticipating a strong comeback of retail industry
better than it did in FY20 considering good support coming from government
V-MART RETAIL LTD side and improved consumption levels.
• The company saw 19% growth in footfalls and 8% higher bill size in FY21 on
YoY basis.
• Considering higher demand for comfort wear, it introduced apparels at more
economic price points to drive up sales volumes that led to slight decline in
ASP by 9% for 4QFY21.
• In FY21, Average Selling Price (ASP) was by up 3% on back of strong product
mix in 3QFY21.
• The company is stocking up for upcoming peak sales in summer and marriage
season as well and inventory remains healthy at 90 days by end of 4QFY21.
• Capex for FY20 was at 40 Crores: opened 20 new stores in the year, some
refurbishments and technology investments.

Please refer to the disclaimers at end of the report

 COMPANY TAKEAWAYS

• For FY21, total expenses were down by 31% led by savings and optimizations
done in 1HFY21.
• Outlook: Opening of market and normalcy in operation cycle expected by mid
of June 21.
• According to management, VMART differentiates itself from its nationalized
competitors as:
• Presence in 192 towns (i.e.Tier2, Tier3 and Tier4).
• It offers 30-35% lower prices.
• Offers much localized experience as per customers need.
V-MART RETAIL LTD • VMART’s key competition are:
• 90-95% from offline retailers.
• 2-3% from omni retailers.
• 1-2% form online retailers.`
• The company will continue to optimize cash, expanding digital presence and
will not be cutting its employee strength.
• The company will largely maintain its new stores trajectory of opening 40 plus
yearly for FY22 and FY23.
• The company is considering digital transformation tools and business analytics
to enhance its presence in Omni channels.
• The company is targeting at 5% share of online business in overall revenue in
next 2-3 years.
• The company will operationalize phase 1 of new warehouse by end of FY22
and Capex of Rs.100 Crores to be done for that in this year.

WIPRO: Wipro and Finastra Partner to Accelerate Digital Transformation in

Transaction Banking 02-Jun-21
• WIPRO and Finastra, the largest pure-play software vendor that serves the
entire financial services industry, today announced a partnership to help
corporate banks across Asia Pacific accelerate their digital transformation. The
companies will create a unique offering that combines Wipro’s comprehensive
services catalogue with Finastra’s front-to-back trade finance and cash-
management solutions.
WIPRO LTD • A recent Finastra study showed that corporate banking clients have shifted
their focus towards real-time execution capabilities, access to online
platforms, and value-add services. In response, banks are moving away from
the traditional relationship management model to become digital platform
players that can meet client needs in a faster, flexible and more agile way. The
partnership will help banks make this transition quickly through access to
Wipro’s service portfolio, from consulting and digital to infrastructure and
operations, and Finastra’s leading solutions - Fusion Trade Innovation and
Fusion Cash Management.

Please refer to the disclaimers at end of the report

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