Query Board
Karnataka Bank is a scheduled commercial bank based in Mangaluru.
It provides a range of banking and financial services, which includes retail banking, corporate banking and para-banking activities along with treasury and foreign exchange business. On the financial front, the total interest income of the bank rose by 12.55 per cent YoY to Rs1584.37 crore for the first quarter of FY20 as against Rs1407.64 crore for the same quarter of the previous fiscal. For Q1FY20, considering income from non-banking activities as well, the total income was Rs1829.16 crore which is an increase of 13.16 per cent compared to Rs1616.44 for Q1FY19. Evaluating the asset quality, the GNPA ratio was 4.55 per cent in Q1 of FY20 as compared to 4.72 per cent in Q1 of FY19. The net operating profit for Q1FY20 rose by 7.46 per cent YoY to Rs175.42 crore as against Rs163.24 crore in Q1 of the previous fiscal. The capital adequacy ratio for Q1FY20 was 12.70 per cent and 11.60 per cent for Q1FY19. For Q1FY20, net NPA stood at Rs1759.77 crore, with a net NPA ratio of 3.33 per cent. For Q1FY19, net NPA was Rs1395.97 crore with net NPA ratio of 2.92 per cent. Considering the financials on the annual front, the total interest income rose by 8.9 per cent to Rs5905.96 crore in FY19 from Rs5423.75 crore in FY18. The net profit increased by 45.57 per cent to Rs477.24 crore in FY19 as compared to Rs325.61 crore in FY18. Thus, we recommend a HOLD.
Vikas Proppant & Granite Limited manufactures and conducts grading of guar gum powder and grading of guar splits and its derivatives. The company’s plant in Chandisar in Gujarat has a manufacturing capacity of approximately 4050 metric tonnes (MT). The company also has a prime seed-processing plant to supply guar gum split. Adicol is organically processed and genetically modified organisms (GMO) free guar gum powder being a main product of the company having variants like Adicol 50 NV, Adicol 50 EV, Adicol 75 NV, Adicol 75 DV, etc. Other products of the company are used in frozen food, baby food, instant mixes, pet food, etc. Looking at the standalone financials of the company, the net sales for Q4FY19 were Rs16.06 crore, which is an increase by 4.35 per cent QoQ compared to Rs15.39 crore for Q3FY19. In Q4FY19, PBDT stood at Rs15.38 crore with an increase of 4.35 per cent QoQ as the PBDT stood at Rs15.20 crore in Q3FY19. Net profit decreased by 5.03 per cent in Q4FY19 to Rs11.33 crore as against Rs11.93 crore in Q3FY19. On the annual front, for FY19, the net sales were reported to be Rs52.77 crore on a standalone basis. In FY19, the company posted an operating profit of Rs51.58 crore as against an operating loss of Rs0.45 crore in FY18. For FY19 the company gained a net profit of Rs44.25 crore, while in FY18, the company incurred a net loss of Rs1.05 crore. Hence, we suggest to Book Profits.
HEG Limited manufactures graphite electrodes which are used by manufacturers of steel. The company’s plant of graphite electrodes has a production capacity of approximately 80,000 metric tonnes (MT) per annum. The plant is located in Mandideep near Bhopal in Madhya Pradesh and has facilities for production of high power and ultra high power electrodes and graphite specialties. As part of the company’s power business, it operates three power generation facilities located at Tawanagar in Madhya Pradesh having a total rated capacity of over 77 megawatt (MW). The company also operates a 12.8 MW waste heat recovery power plant based in Chhattisgarh. Other than that, HEG offers product such as carbon specialties, activated carbon fabric (ACF), carbon blocks, etc. to name a few.
Looking at the quarterly trends on standalone financial basis, for the fourth quarter of FY19, the company reported net sales of Rs1346.65 crore, an increase of 4.19 per cent as against the net sales of Rs1292.45 crore for the same quarter of the previous fiscal. PBDT also decreased by 12 per cent for the fourth quarter of FY19 and was Rs824.42 crore as compared to Rs936.85 crore for the fourth quarter of FY18. For the fourth quarter of FY19, the net profit decreased by 17.28 per cent to Rs524.42 crore when compared to Rs634.01 crore in the fourth quarter of the previous fiscal.
On the annual front, in FY19, the company reported net sales of Rs6592.83 crore, an increase of 139 per cent over the net sales of Rs2758.40 crore reported in the previous fiscal. For FY19, the PBDT stood at Rs4749.47 crore, thus increasing by 183.17 per cent YoY as against Rs1677.26 crore for FY18. In FY19, the net profit significantly increased by 182.1 per cent to Rs3050.43 crore from Rs1081.34 crore posted in the previous fiscal. An uptrend in the prices of needle coke created instability in the financials as it is one of the main raw materials used by the company. Thus, based on our analysis, we would recommend our investorreaders to HOLD the stock, but would not recommend buying if not purchased earlier.
Graphite India Ltd. has business operations in manufacturing graphite electrodes, graphite equipments, steel, glass reinforced plastic (GRP) pipes and tanks and generation of hydel power. As part of its graphite and carbon segment, the company produces graphite electrodes, miscellaneous carbon and graphite products, which also include captive power generating units and impervious graphite equipments. Its steel segment includes production of high speed steel and alloy steel. The company also designs, manufactures and has a supply of impervious graphite heat and mass transfer equipment and also turnkey systems, glass reinforced pipes and power generating unit for outside sale along with its coke division manufacturing carbon paste and electrically calcined anthracite paste.
Considering the consolidated quarterly results for Q4FY19, the company reported net sales of Rs1693 crore, an increase of 27.96 per cent as against the net sales of Rs1323 crore for Q4FY18. PBT increased by 14.71 per cent for Q4FY19 and was Rs850 crore as compared to Rs741 crore for Q4FY18. For the Q4FY19, the net profit decreased by 3.91 per cent to Rs540 crore when compared to Rs562 crore recorded for Q4FY18.
On the annual front, on a consolidated basis, net sales for FY19 were Rs7858 crore, which is an increase by 140.6 per cent when compared to Rs3266 crore for FY18. For FY19, the PBT increased by 246.3 per cent to Rs5101 crore compared to Rs1473 crore for FY18. The net profit for FY19 was reported at Rs3396 crore, a significant increase of 229.07 per cent when compared to Rs1032 crore reported for the previous fiscal.
Profit margins have tumbled for quarters due to price fluctuations of raw materials, mainly ‘Needle Coke’ which is prominently used by all graphite electrode manufacturers. But production and manufacturing should return to normal as the industry becomes more balanced in the future. Hence, we recommend a HOLD.
Yes Bank Limited is a private sector bank engaged in providing banking services, including corporate and institutional banking, financial markets, investment banking, corporate finance, etc. The bank’s segments include treasury, corporate banking, retail banking and other banking operations. Its treasury segment includes investments and financial markets activities undertaken on behalf of the bank’s customers, trading, maintenance of reserve requirements and resource mobilisation. The corporate/wholesale banking includes lending, deposit taking and other services offered to corporate customers. The retail banking includes lending, deposit taking and other services offered to retail customers.
On the financial front, the net interest earned by the bank in the first quarter of FY20 came in at Rs2280.8 crore as against Rs2219.1 crore in the corresponding quarter of the previous fiscal, clocking a growth of 2.8 per cent. The total income in Q1FY20 was Rs3553.5 crore, a decrease by 9.2 per cent from Rs3913.3 crore in Q1FY19. The profit after tax has however dropped by 91 per cent to reach Rs113.8 crore in Q1FY20 as against Rs1260.4 crore in Q1FY19. For Q1FY20 the GNPA percentage was 5.01 per cent as compared to 1.31 per cent in Q1FY19. The CRAR ratio in Q1FY20 was 15.7 per cent and in Q1FY19 it was 17.3 per cent.
On the annual front, the net interest earned by the bank in FY19 came in at Rs9809.0 crore, an increase of 26.8 per cent from Rs7737.1 crore in FY18. The total income earned by the bank in FY19 was Rs14399.2 crore, an increase of 11.1 per cent from Rs12960.9 crore earned in the previous fiscal. The profit after tax has on an annual basis in FY19 fell by 59.3 per cent to reach Rs1720.3 crore as against Rs4224.6 in FY18. The company reported GNPA ratio of 3.22 per cent for FY19 and 1.28 per cent for FY18. In FY19, the CRAR ratio was 16.5 per cent, whereas in FY18, it was 18.4 per cent. Hoping for a positive future outlook, we would recommend a HOLD to our investor-readers.
Kalpataru Power Transmission Ltd. (KPTL) is an engineering, procurement and construction (EPC) contracting company manufacturing metal frameworks for construction and parts used to build towers, masts, trusses and bridges. The company’s transmission and distribution business consists of transmission domestic, transmission international and power distribution and the infrastructure EPC segment includes laying of cross country oil and gas pipeline. Kalpataru Power Transmisssion is also engaged in generation and sale of power produced from over two biomassbased power generation plants located in Rajasthan. The company also offers solutions in infrastructure development, civil contracting and agri-commodity (post-harvest) logistics.
On the financial front on a standalone basis, the net sales for Q4FY19 came in at Rs2491.43 crore, which is an increase of 29 per cent as compared to the net sales of Rs1931.44 crore for Q4FY18. The PBDT for the fourth quarter of FY19 was reported at Rs242.14 crore, an increase of 28.12 per cent as against Rs189.01 crore reported for the same quarter of the previous fiscal. There was an increase in the net profit by 30.57 per cent for the fourth quarter of FY19 to Rs136.88 crore when compared to Rs104.83 crore for the fourth quarter of the previous fiscal.
Looking at the annual trend, the company reported net sales of Rs7115.12 crore for FY19, posting a growth of 23.14 per cent when compared to net sales of Rs5778 crore reported for FY18. The PBDT stood at Rs710.38 crore for FY19 and Rs575.94 crore for FY18. In FY19, the company’s net profit was Rs401.30 crore, an increase of 24.6 per cent as compared to Rs322 crore in FY18.
Recently, KPTL acquired complete stake in Shree Shubham Logistics (SSL) making SSL its wholly-owned subsidiary. SSL is involved in providing agricultural commodity warehousing solutions that will benefit the operations of KPTL and also support in business expansion. We would recommend a HOLD.
(Closing price as of July 30, 2019)