Indian Equity Research and Investment Strategy
Sintex reported 3QFY11 consolidated EBITDA at Rs1.96 bn versus our estimates at Rs1.77bn. The outperformance has come on the back of higher execution (Rs11.86 bn vs our estimates at Rs10.69 bn) against our estimates. The EBITDA margins in 3QFY11 at 16.6% are exactly in line with our estimates. We see incremental risks and any rally on the back of good news/results should be used to pare down exposure.
The outperformance on the execution front has (more…)
Infosys reported Q3FY11 below expectations. Revenues grew 2.3% QoQ in Re and 6% Q/Q in USD terms (4.7% in CC) driven by 1) 3% Q/Q volume growth (vs. 7%QoQ expectations), 2) offshore pricing improvement of 2.6% QoQ (1.6% blended QoQ) and 3) cross currency benefits. Margins were flat QoQ despite currency headwinds, led by improvement in pricing. The weaker-than-expected revenue and 4Q topline guidance will result in lower exit rate on revenues going into FY12.
Pricing improved 2.6% offshore (1.4% CC), 2) Reported attrition was (more…)
Latest weekly data released by the Ministry indicate that prices of food articles were up 18.3%YoY for the week ended 25 Dec, vs. 14.4% the previous week.
Key products contributing to the price rise over the week were vegetables such as onions, tomatoes, brinjal. Although prices of pulses continued contracting, other protein-rich items such as milk, eggs, meat and (more…)