TOP CORPORATE NEWS : 11 May 2017

top corporate news

TOP HEADLINES:-

Zee Entertainment Q4FY17: Good show, maintain Buy
Hero Motocorp gains post Q4FY2017 results
Exide Ind subsidiary posts strong 34% growth in net profit
FSSAI proposes tax on all packaged foods
Hindalco gains as Subsidary Novelis posts strong numbers

Zee Entertainment Q4FY17: Good show, maintain Buy
Zee Entertainment Enterprises Q4FY17 result update: Good show, maintain Buy with TP of Rs580
In line revenues growth, despite headwinds:
Zee Entertainment Enterprises’ (ZEEL) revenue remained flat (up by 0.4% YoY, in line with estimates) to Rs1, 528 crore (numbers for Q4FY2016 re-
stated as per IND AS accounting standard).
Advertisement revenues growth remains flat yoy to Rs846.9 crore, impacted by demonetization and lower ads revenues from sport business revenues.
Domestic ad revenue was up by 8.6% YoY in Q4FY2017, excluding sports, while, international ad revenue declined 53% YoY on account of higher ad
revenue in sports business in Q4FY16 (Rs 61.2 crore vs Rs 9 crore in Q4FY17) coupled with some regulatory headwinds in certain international
markets.

Hero Motocorp gains post Q4FY2017 results
Hero Motocorp Q4FY2017 results: Operating performance marginally below estimates impacted by one time discounts; lower tax rate leads to PAT coming
in line
Hero Motocorp has reported a marginally lower than anticipated operating performance for Q4FY2017.
The topline for the quarter is down 8% YoY to Rs 6,915 Crs driven by a 6% YoY drop in volumes while the realizations dropped by around 2% YoY . The
revenues were broadly in line with our estimates of Rs 7,042 Crs.
The operating margins for the quarter contracted 200 BPS YoY to 13.8% attributable to a one time incentive to dealers for liquidating old BS 3
inventory. Consequently, the EBITDA dropped by 19.5% YoY to Rs 957.5 Crs and came in below our estimates of Rs 1027 crs.
A lower tax rate for the quarter at 23.6% as against 30% in Q4FY2016 arrested the decline in the PAT.

Exide Ind subsidiary posts strong 34% growth in net profit
Exide Industries wholly owned subsidiary (Exide Life Insurance) posts strong 34% growth in net profit to Rs119 cr in FY2017.
The premium collections rise 18% yoy to Rs2, 409 cr; strong results; positive read thru for Exide Industries.

FSSAI proposes tax on all packaged foods
FMCG: Food processing industry- The Food Safety and Standards Authority of India proposed the tax on all packaged foods with high fat, sugar and
salt content.
The product list includes deep fried Indian and western snacks, desserts and confectioneries that are sweet, fatty and salty, items such as burgers,
noodles, sauces, coffee, baby products, sweetened beverages and juices.
View: Though this has led to concern for restaurants and companies, if taxes are implemented, prices will shoot up and manufacturers will pass it on
to consumers.
This might lead to some consumers refraining from the key brands in the space. Also, when the mandate comes, these companies will have to
reformulate the product according to the law.
Sentimentally negative for Britannia Industries Agrotech foods, HUL, Nestle, Dabur, ITC as laws are yet to come under implementation.

Hindalco gains as Subsidary Novelis posts strong numbers
Shares of Hindalco gained 5% to Rs195 on NSE as its subsidary Novelis posted strong numbers.
Novelis Adjusted EBITDA $292M, Net Sales $2.6B

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