The 19 percent growth in foods and refreshment excludes the mergers and acquisitions of HFDs. We have had excellent growth this quarter with tea, coffee as well as our food portfolio. Across the discretionary category, skincare and deodorant, the business has been impacted. We believe that once people start stepping out, this will get back into its normal growth rate.
If there are lockdowns again, we will do our best to ensure that the consumers do not run out of our products.
Sanjiv Mehta, Chairman and Managing Director, HUL
From the two-wheeler space, we are positive on Hero Motocorp as well as TVS Motors, we prefer these two companies over Eicher Motors and Bajaj Auto. We have seen August and September retails positively surprising. We need to track the festive season closely and if festive is through then we will see the momentum continuing. The stocks are pricing in growth in retail sales during the festive season, and could come under pressure if the sales growth disappointed. In the commercial vehicles space I am bullish on Ashok Leyland. In my view passenger vehicle would be faring a tad better than two-wheelers.
Jay Kale, Vice President Research, Elara Capital
ACC numbers have been good and that is a precursor of what we can expect from the cement industry. I expect ACC and other cement stocks to move in tandem with the market. With the overall economy opening up and rural consumption picking up, we hope to see higher cement volumes. It is better to go for companies where we expect expansion plans to go onstream. Something like JK Cement, Birla Corporation may perhaps outperform the biggies like ACC, Ambuja Cement, UltraTech Cement and Shree Cement. Among IT plays, L&T Tech is a good medium-long term investment.
Dipan Mehta, Director, Elixir Equities
We were able to get advertisement at a discount, saw a reduction in cost of materials in Maharashtra, but the major advantage we received was mainly from our outlets. After the COVID, when everything was closed, milk was not available at beck and call, people started visiting these outlets much more. There has been more than 100 percent better footfall to these outlets. So being in retail this has given a boost to us and probably we can focus more on the retail for the future.
RG Chandramogan, Chairman, Hatsun Agro Product
Today our collection efficiency has improved between 80 percent and 85 percent. Out of our books, Rs 2,000 crore is the amount, which was availed to the moratorium, that is the total outstanding in the moratorium availed accounts. Upto August, 47 percent was the collection in these accounts also, only 1.24 percent have not paid all the six instalments, most of them have started paying in the month of September. Our LTV used to be 63 percent before rising and now it is at 71 percent. We are anticipating 25 percent loan growth for the current year. Margins will continue to be the same. We are almost at 4.49 percent for the last quarter and that should be maintained.
CVR Rajendran, MD and CEO, CSB Bank
We want India to be a major hub for us. Now that we have made a start, we will naturally look to create a critical mass in the country The Thyssenkrupp’s steel business has a capacity of more than 10 million tonne and that would double their European capacity if the businesses are merged. It would create a real champion. It is the second biggest in Europe, especially in automotive and packaging. I have high regard for the Tata Group and was open to any form of collaboration with them.
Sanjeev Gupta, Chairman, Liberty House Group
Every vertical has grown from Q1 to Q2. Revenue increase and improved utilizations aided margins gains. Utilisations can have space to improve further. We intend to get back to pre-COVID levels as soon as possible. We expect all 5 segments (telecom, industrial, plant engineering, business mix, offshore engineering) to grow sequentially in coming quarters.
Keshab Panda, MD & CEO, L&T Technology Services
Banks have raised capital well in advance this time. The current valuations of banks were supportive. There are structural elements driving the turnaround in the IT sector. There are strong tailwinds which the IT sector will benefit from and these could perhaps run longer. I am neutral towards cement sector. There could be some cyclical benefits that kick in, if you see infra spending go up, but yet to see any significant indications of that.
Vetri Subramaniam, Group President & Head-Equity, UTI AMC
We have closed 40 stores already and if we find that the business is not coming back evenly across, we may take more action on that front. We have opened 15 new stores after unlock has started and we are planning to open 30 more by the end of the year. We are steadily moving towards that. We think that the festivities will give us the second flip. We are hoping that we will get very close to pre COVID numbers at the end of the festivities. Besides sportswear, there has also been an uptick in casual wear, ready-to-wear at home and washable collection.
Sandeep Kataria, CEO, Bata India
With this pandemic hitting a lot of the other countries, which were completely reliant on China, are trying to hedge their bet and trying to get alternate sources. India being the next most competitive tile making nation in the world, we get the preference. So there is an upsurge in exports, and this would continue. Not so much for branded players such as us and some of the other bigger branded players because we get a premium for our brand in India.
As far as ceramics industry is concerned, last year Rs 10,500 crore of Rs 30,000 crore ceramics ware was exported. This year, in June, July, August and September months, the export number is close to Rs 7,000 crore.
Abhishek Somany, Managing Director, Somany Ceramics
This year we are aiming more than 400,000 tonnes from Indian Railways and Metro. The company did about 200,000 tonnes of rails for Indian Railways and its subsidiaries last year. This year the projections are that total rail consumption in the country will be about 1.5 million tonne and out of that the specialty rail will be around 400,000 tonne. We were asked by the government of India, Indian Railways to develop some of the very special grade. We have developed the grades successfully and we have got approval from RDS – the inspection and design wing of Indian railways.
VR Sharma, MD, Jindal Steel & Power
We will be having a cash surplus in the coming time and the cost of finance will be nullified using finance available to us from the IPO proceeds. The oil well chemical business has been impacted drastically due to decline in oil and gas business. Oil well sector revenue drop would be covered up by the pharma sector; it would be balanced up and margins would also be taken care of.
Kamalkumar Aggarwal, CMD, Chemcon Speciality Chemicals
This is a growth story which started a few quarter ago especially entire last year. We did invest Rs 1,400 crore in the last 2-3 years and put in lot of capex and all the investments that we made have started paying off. This year we will be doing double the growth what we anticipated and that is because we got a lot of ANDAs approved earlier than what we thought we would get them at. Also we started getting bigger market shares as there has been some disruptions in US markets and the other markets too. Profit growth for the full year just like I said expect 25-30 percent.
Krishna Prasad Chigurupati, CMD, Granules India