View from Research Desk on January 19, 2009

 

Bajaj Auto reported Q3FY09 performance

Sales Rs 21 bn in line with expectations

EBITDA Rs 3.06 bn against our expectation of Rs 2.93 bn due to savings on Raw material costs

Adjusted PAT Rs 2.07 bn as against our expectations of Rs 1.70 bn, mainly due to higher other income.

(Numbers are incomparable on YOY basis as the co underwent a de-merger during this year)

 

JP Associates Q3FY09 below expectations

Sales grew by 47% as against our expectation of a growth of 43% driven by 71% growth in construction business & 15% growth in cement business.

EBITDA growth of 11% at Rs 247 cr as against our expectation of Rs 296 cr.

PAT of Rs 166 cr was higher than our expectation of Rs 146 cr. The increase in PAT came from lower tax provisioning & higher other income.

 

Global cues

On Friday the US mkts were flat. However, a lot of euphoria is being built in the mkt on Barrack Obama taking oath & coming out with another big stimulus package. We believe this kind of expectation is child like wish because we do not think that US can come out from its problems so soon & Mr. Obama does not have any magic wand which can cure all the US problems in a day. US mkts will be closed on Monday on account of Martin Luther King Jr.' birthday. For today there is another hope built from European mkts as the European countries are likely to unveil a bailout package for their banks.

Asian mkts are trading flat with a few points up or down on respective bourses. SGX is also trading flat (up 16 points) with a slightly positive bias.

 

Our Markets:

On Friday our mkts showed a small positive bias amidst the lack of any clear trend. For today also we think that mkts will take cues from results of various companies. The global cues also being benign will not have too much impact at the start of the day. But if the European banks bailout package comes out during the day our mkts will surely take some cues from that too. We expect the mkts to start the day on a flat note.