Tata Consultancy Services Ltd (Q2 FY09):
“Strong operational performance”CMP Rs547, BUYTarget price Rs650, Upside 18.8%
Dollar revenue growth in-line despite material offshore shift; volumes surprise on upside
Growth continues to be driven by the non-Top 10 clients; Europe records strong growth
Broad-based growth across verticals; amongst services, ADM and Engineering drive growth
OPM expansion of 230 bps qoq was far above expectations; operating profit grew 18.8% qoq
Huge forex loss and higher depreciation impact net profit growth
Employee additions were strong; company confident of achieving FY09 hiring guidance
Rate TCS as BUY with target price Rs650; short-term outperformance likely.

Ashok Leyland Ltd (Q2 FY09)
Volumes down 6.8% yoy and 4.6% qoq following decline in demand
Price hike of 5% have improved realizations for CV segment
Significant jump in revenues from engines and spare parts segment
OPM down 140bps yoy but to 8.2% primarily on account of higher overheads
Other income jumped by 156% yoy on back of Rs155mn profit on sale of investments in Indusind Bank Profitability further hit on account of 94.7% yoy jump in inter est cost
Volume growth to remain subdued in the remaining part of the year as the industrial production has significantly slowed down .

Steel Authority of India Ltd (Q2 FY09)
Topline surged 33.6% yoy and 11% qoq, boosted by higher realisations
Steel realisations rise 11.8% qoq, on account of higher sales of value added products
Provisioning for last year’s employee wages keeps OPM subdued at 24.6%
Impact of increase in coking coal prices to creep from Q3 FY09
We expect profitability to peak out in Q2 FY09.

Reliance Infrastructure Ltd (Q2 FY09)
Reliance Infrastructure (Rel Infra) reported revenue growth of 58 .2% yoy driven by higher realization in generation segment and robust growth in EPC segment
Higher cost of electrical energy purchased pulls down operating margin by 370 bps yoy to 11.2%
Net profit growth at 15.6% yoy impacted by marginal decline in other income despite lower interest expense

Tech Mahindra Ltd (Q2 FY09):
“Best play in IT”CMP Rs413 , BUYTarget price Rs625, Upside 51.3%
Revenue growth of ~3.5-4% qoq in constant currency tad below expectations; BTGS deal continues to ramp up
Company continues to carry the best revenue visibility in the sector
Material OPM improvement comes as a big positive surprise
Significant forex loss leads to sequential decline in pre-exceptional PAT
Better positioned than peers; reiterate Tech Mahindra as the best play in IT sector

Wipro (Q2 FY09):
“Relative risks remain”CMP Rs279, Market PerformerTarget price Rs288, Upside 3.2%
Revenue growth was ahead of expectations led by material pricing improvements
Retail, BFSI continues to grow strongly; broad-based growth across services
OPM decline was more than expected at 80bps qoq; higher other income pushes net profit growth Muted guidance for Q3 FY09; employee additions remain discouraging
Rate Wipro as Market Performer; expect relative underperformance in near-term.

Hindustan Zinc Ltd (Q2 FY09)
Higher concentrate sales lead to a 8.9% qoq rise in topline
Maintenance shutdown of smelters leads to a 7.6% qoq fall in metal production
Lower realisations and higher mining and manufacturing costs push OPM down 1,710bps yoy and 460bps qoq to 54.8% Fall in effective tax rate reduces the decline in PAT to 17.9% yoy against a 32.5% yoy fall in operating profit.

Marico Ltd (Q2 FY09):
Consolidated revenues recorded a strong 30% yoy growth at Rs6bn led by 11% organic and 3% inorganic growth.
International FMCG business registered 59% growth in revenues. Kaya clocked 67% yoy growth in revenues at Rs400mn.
Higher raw material and overhead cost pulled down operating margins by170bps. Net profit rose by 12% yoy to Rs471mn; excluding foreign exchange mark to market loss of Rs70mn the growth could have been higher at 24% yoy.
We expect Marico to wi tness a 19.1% CAGR in revenues and 20.5% CAGR in net profit over FY08-10E.

Chennai Petroleum Corp Ltd (Q2 FY09) :
Throughput declines 15%yoy on account of a planned shutdown for a period of one month
Inventory loss of Rs2.5bn and plunge in diesel spreads cause GRMs to fall to US$1.7/bbl
Reports an operational loss of Rs533mn, probably first time ever
Net loss of Rs1bn as compared to net profit of Rs2.3bn in Q2 FY08
GRMs likely to remain under pressure as demand slows across the globe and capacities come up in Asia and Middle East

Zee Entertainment Ltd (Q2 FY09) :
Higher contribution from sports channel business boosts topline by 43.4% yoy to Rs5.7bn
Revenue from DTH and international subscription doubled on a yoy basis to Rs271mn
OPM drops 710bps on account of higher programming cost and placement fees
Tax write-back of Rs792mn pushes PAT up by 83.3% yoy

Hero Honda Motors Ltd (Q2 FY09) :
Volumes up 28.5% yoy and 8.7% qoq leading to increased market share
Realizations up 6% yoy and 3.6% qoq as price hikes were taken
OPM increases by 119bps yoy and 159bps qoq to 13.6%
Other income jumped by 37% yoy on back of high treasury income
PAT rose by nearly 50% on back of superior operating performance
Volume growth to slowdown post the festive season but margins could remain strong as commodity prices have co oled off significantly.