Team-MoneyWorks4meDear Readers,
Welcome to our weekly company result update note. We understand the importance of staying up-to-date with the latest financial developments of the companies you have invested in. That’s why we are committed to providing you with the short and insightful information about the earnings and performance of the companies in our coverage.
Sector index
- BFSI (Banking and financial services)
- Auto and auto ancillaries
- Information technology
- Pharma
- Agrochemicals and chemicals
- Oil and Gas
- Others
BFSI (Banking and financial services)
State Bank of India
The company delivered a strong performance with healthy PAT growth and 1.22% RoA (return on assets). Management guided ~15% YoY credit growth for FY24.
CAMS
Good results on all parameters, sustaining performance with a healthy focus on new product additions.
ICRA
Bank credit (key business driver) grew on demand from Retail, NBFC, and Industrial segments. Overall good results.
One 97 Communications (Paytm)
Healthy revenue growth led by payments & financial services. We remain watchful of Innovations in the payment ecosystem & scale-up of the loan distribution business.
Auto and auto ancillaries
Mahindra & Mahindra
Stellar result. Investment in RBL Bank is not a concern (Refer to Note). Revenue share in the SUV segment shall be a key parameter to monitor.
Maruti Suzuki
Good overall results with a slight miss on the margins. In order to bring in operational synergies, Maruti Suzuki has approved the termination of its contract manufacturing agreement with SMG (Suzuki Motor Gujarat) and would acquire the shares of SMG from Suzuki Motors. Positive step with respect to (a) Optimal use of cash on the books & (b) higher operational control on core assets.
Ashok Leyland
Numbers were a big beat on all parameters, revenue has fallen QoQ because of seasonality.
Eicher Motors
Healthy performance on all major parameters. Given that premium biking segment is expected to grow, management expects the business to continue growing despite new entrants.
Escorts Kubota
Good results with improvements on all key parameters.
SKF India
Good results.
Sona BLW
EBITDA Margin in the quarter was higher on some one-offs, long term guidance was maintained at 25-27%.
Swaraj Engines
Stable results as expected.
Information technology
Persistent Systems Limited
Improvement in Revenue even on a QoQ level was impressive on the back of the slowdown in the industry; margin decline looks short term and shall recover in the coming quarters.
Birlasoft
Good results even on QoQ basis amidst ongoing sector slowdown.
Zensar Technologies
Good margin improvement amidst industry margin pressure concerns.
Coforge Limited
Stable revenue growth. However, margins were a miss.
Mphasis Limited
Miss in revenue as well as profitability due to weakness in banking and capital markets which is about ~50% of total revenue.
Cyient
Under DET, Aerospace (+2.3% cc QoQ), Sustainability (+4.5% cc QoQ), and Automotive (+3.1% cc QoQ). Though there was a slowdown in the sector, growth momentum was stable.
Latent View
Good revenue growth, however margins were a miss.
Pharma
Sun Pharmaceuticals
Favourable performance was driven by revenue growth and margin expansion.
Lupin
Stellar performance across all parameter’s revenue growth, EBITDA margin and PAT.
Agrochemicals and chemicals
Godrej Agrovet
Though revenues growth was not achieved overall, margin expansion sets a healthy precedence for performance ahead.
Dhanuka Agritech
Degrowth in first quarter (late monsoon) has converted into a positive growth in July month, we remain watchful of new molecule introductions and capacity expansion at Dahej plant.
Laxmi Organics
Muted performance on change in mix (lower contribution from exports vs. essentials segment).
Privi Speciality Chemicals
While we wait for management remarks, the turnaround in QoQ performance (Rs 15 Cr loss in Q4FY23 vs Rs 5 Cr profit in Q1FY24) is to be noted.
NOCIL
Poor quarterly performance on pricing pressure due to Chinese exports and the global recessionary environment.
Oil and Gas
Petronet LNG
Mixed bag results on volume driving down revenues but operating efficiencies expanding margins.
Gujarat State Petronet
While revenues declined, margins remained flat, overall poor performance.
Gujarat Gas
Overall weak results as revenues and margins declined.
Indraprastha Gas
At par numbers despite lowering the price of CNG, limited impact on volumes.
Others
Quess Corp
Weak results as expected. Recovery in hirings shall take some more quarters.
SIS
Stable Results.
Bharti Airtel
Healthy performance with mobile segment revenues driven by an increase in ARPU (average revenue per user); PAT (after exceptional items) remains flat.
Zomato
Big beat on all parameters. The tilt to profitability has been done well ahead of the timeline. Quick commerce (Blinkit) business has turned contribution positive as well. Management has guided for adjusted revenue growth of >40% over the next 2-3 years.
Bharat Electronics
Stellar performance. Management guidance on revenue growth (17%), order flow (20,000Cr) as well as margins (21-23%) provides good visibility of earnings growth.
Lakshmi Machine Works
Good performance on account of growth in the textile machinery segment & doubling of revenues from Advance Technology Centre to Rs. 40 Cr.
Sterlite Technologies
Stable results, the Order book of Rs. 10,938 provides revenue visibility.
Praj Industries Limited
Revenues were a miss given it was a seasonally weak quarter.
Orient Electric Limited
While material costs as a % had fell by 300bps due to a correction in commodity prices, the EBITDA margin was up just 10bps due to higher staff cost and other expenditures. Good results after adjusting for one-offs.
Amber Enterprises India
Muted revenues due to the cyclicality of the industry, however margin improvement remains positive.
Symphony Ltd
Weak performance on account of the disrupted summer season.
Polycab India
Revenues have fallen QoQ by 10% due to seasonality, big beat YoY, and margin improvement is commendable.
KEI Industries
Stable numbers were reported with a pending orderbook of Rs. 3,567 Crore.
Nestle India
Robust performance on account of prudent pricing supported by volume growth.
Tata Consumer Product
Sustained performance with most segments reporting healthy growth. Tata Sampann, Tata Soulful, and NourishCo collectively grew 58% YoY in Q1FY24.
Marico
The subdued quarter due to destocking and trade scheme rationalization which management believes will correct in coming quarters.
Dabur
Healthy results supported by growth across all categories excluding beverages.
Jubilant Foodworks
At par result on account of negative SSSG and flat dine-in and take away.
Sapphire Foods India Ltd
Sub par performance driven by retail expansion while Same Store Sales Growth (SSSG) continues to be under pressure.
Shree Cement
Muted performance; EBITDA/ton for cement remains flattish QoQ.
Ambuja Cement (Standalone)
Good results on the back of improvement in EBITDA/ton realization.
Dr. Lal Path Lab
Good performance was driven by lower SG&A expense, better test mix, and a seasonality boost.
Metropolis Healthcare Limited
Healthy performance; core business revenue growth of ~12% on YoY (excludes revenue from Covid & Covid Allied tests and *public-private partnership contracts; including Hi-Tech). Revenue per test (Core Business) for Q1FY24 was up by 3% on a YoY basis.
Indraprastha Gas
At par numbers despite lowering the price of CNG, limited impact on volumes.
Mahanagar Gas
Strong numbers supported by volume growth.
Narayana Hrudayalaya Ltd
Strong numbers are supported by an increase in average revenue per occupied bed for the period (ARPOB) from Rs. 1.22 Cr in Q1FY23 to Rs. 1.36 Cr in Q1FY24.
Titan
Weak numbers, though management guidance for FY24 remains strong.
Supreme Industries Ltd
Favorable performance, management has guided for +20% vol. growth along with an EBITDA margin of 14% in FY24, mainly with good demand from real estate and infra sectors.
Sheela Foams
At par result. The acquisitions of Kurlon Enterprises Ltd and House of Kieraya Private Limited are expected to be accretive to earnings.
Kajaria Ceramics Ltd
At par result driven by tiles volume growth of 7.2% YoY while realisation declined 1.8% YoY. Management has maintained its guidance of 14% to 16% EBITDA margin for FY24.
V I P Industries Ltd
Weak numbers, despite an increase in revenue, EBITDA margin contracted on account of increased other expenses and higher brand & channel investments.
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