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Gujarat Alkalies clocked a net profit of Rs. 220 Cr. in Q1 FY23.

Gujarat Alkalies clocked a net profit of Rs. 220 Cr. in Q1 FY23.

Gujarat Alkalies clocked a net profit of Rs. 220 Cr. in Q1 FY23.

Gujarat Alkalies has reported a total income of Rs. 1134.22 crores during the period ended June 30, 2022 as compared to Rs. 1148.47 crores during the period ended March 31, 2022. The company has posted a net profit or (loss) of Rs. 190.87 crores for the period ended June 30, 2022 as against a net profit or (loss) of Rs. 220.68 crores for the period ended March 31, 2022. They have an EPS of Rs. 25.99 for the period ended June 30, 2022 as compared to Rs. 30.05 for the period ended March 31, 2022.

New partnerships to create new opportunities:

The management is optimistic about their future. The main reason for clocking such good numbers was the market conditions. As far as the caustic soda price is concerned, whether local or international, they think that the price will remain stable, especially due to the demand in the aluminium sector. They have also set up a bio-ethanol plant. Gujarat Alkalies and Chemicals (GACL) has collaborated with NTPC Renewable Energy (NTPC REL) for renewable energy and green chemicals. The Memorandum of Understanding (MoU) is for expanding business opportunities in the areas of sourcing of renewable power to the extent of about 100 MW and jointly working on synthesising green chemicals such as methanol and ammonia for captive use by GACL.

This is a novel initiative between leading CPSE and state government-sponsored companies to support the country’s commitment to achieve renewable energy targets and reduce greenhouse emissions. NTPC REL is a wholly owned subsidiary of NTPC and is incorporated to develop renewable energy projects and parks, including various developments of various green hydrogen energy solutions and battery energy storage solutions in a focused manner.

The plant will be using corn/broken rice as feedstock with eco-friendly technology and will produce 500 KLD of bio ethanol, which will be used for blending in petrol. As by-products from this plant, 135 KTPA of protein-rich animal feed and 16.50 KTPA of corn oil while using corn as feedstock are also expected to be produced.

Valuations:

The stock price to earnings is at 9.16. The 5 year P/E ratio is 9.5 and 3 year P/E ratio is 5.25.The return on capital employed is at 13.5%. The EPS stood at Rs.98.5. Gujarat Alkalies Ltd has an EBITDA multiple of 5.37.The shares of GACL were up by 5.70% to close at Rs. 891 on Wednesday, August 17, 2022.

Trident Industries' net profit stands at Rs. 129.35 crores.

Trident Industries' net profit stands at Rs. 129.35 crores.

Trident Industries’ net profit stands at Rs. 129.35 crores.

Trident’s net profit dropped 37.45% to Rs 129.35 crore in Q1 FY23 as against Rs 206.81 crore recorded in Q1 FY22. The revenue from operations surged 13.32% to Rs 1,679.9 crore in the quarter ended June 2022 from Rs 1,482.38 crore reported in June 2021. The company’s PBT stood at Rs 172.39 crore in the first quarter, down 37.22% as compared to Rs 274.6 crore posted in the Q1FY22.

The total expenses increased by 24.94% YoY to Rs 1,512.63 crore in Q1 FY23. The cost of raw materials was up by 47.32% to Rs 981.47 crore, while employee benefits expenses declined 7.97% to Rs 161.55 crore in Q1 FY23 over Q1 FY22.

Way forward for the company.

The company’s revenue from the textiles division was at Rs 1,356.46 crore and revenue from the paper and chemicals division was at Rs 323.55 crore in the current June quarter. The operating margin declined to 18.96% in June 2022 as against the 29.37% reported in June 2021. In Q1 FY23, the net profit margin was 10.24%, down from 18.52% in Q1 FY22. Almost 48% of the revenue was contributed by the bath and bed linen segment. 33% was contributed by the yarn segment, and the contribution of the paper segment has also increased from 14% to 19% in the current quarter.

Trident will capitalize on recent growing retail trends, both online and offline. The company believes it can reach a 12% bottom line by 2025, making them a national brand. To make the company robust and organized, they are working to simplify and automate processes. The firm aims to unlock long-term growth through improved return on ratios through capital allocation strategies. while expanding their business in organic and inorganic ways. They intend to generate synergy and explore business opportunities. With the help of brand building, e-commerce, product development, and exploring new market opportunities, they have a large scope of improvement.

They intend to expand their manufacturing capacities for yarns by adding 98,496 spindles, which has an existing capacity of 5.89 million spindles used at a capacity utilisation of 90% and also adding a sheeting capacity of 70,000 meters per day and 16.3 MW. The total cost of the addition of all these capacities will be INR 1377 crores and will be completed by September 2023. The mode of financing of all these projects will be through Debt & Equity. This will result in an increased competitive advantage for the company and will help to meet increased demand. The Capex plans will help to leverage business expertise and capture business synergies.

Valuations:

The net debt/equity ratio of the company is 0.34.The stock price to earnings is at 25.1 times. While the 5 year and 3 year P/E ratios are 11.1 times and 9.61 times, respectively,The return on capital employed is 23.4%. The EPS stood at Rs.1.48. Trident LTD has an EBITDA multiple of 14.4 times. The shares of Trident were up by 1.74% to close at Rs 37.9 on Wednesday, August 17, 2022.

 Mazagoan Dock profit to soar at new heights

 Mazagoan Dock profit to soar at new heights

 Mazagoan Dock profit to soar at new heights.

Mazagon Dock Shipbuilders soared 7.49% to Rs 304.15 after net profit increased 121.24% to Rs 224.78 crore with an 83.68% increase in net sales to Rs 2230.32 crore in June 2022 compared to June 2021. The company’s PAT rose 41.36% and net sales increased 59.72% QOQ. The PBT was recorded at Rs 289.97 crore in Q1 June 2022, up 59.32% QOQ and up 108% YOY. The EBITDA stood at Rs 310 crore, growing by 96% over the same quarter last year.

Total expenses increased by 77.6% year on year to Rs 2056.64 crore in Q1 FY23.The cost of raw material consumed stood at Rs 1334.97 crore (up 122.3% YoY) and employee expenses stood at Rs 181.75 crore (up 1.9% YoY). The company has a 45,000-crore order book, which includes Rs. 15000 Cr from the P15B and P15A destroyers, as well as a Rs. 25-crore order book for the P17A Frigate.

The government to sell 10% in an OFS:

The government is planning to sell up to a 10% stake in the company. An application to this effect may soon be put in place. The government holds 84.83% of the firm. At current valuations, the sale of a 10% stake may fetch the government around 570 crore. The stake sale could be done through the offer for sale (OFS) route.

The company is building two submarines in collaboration with the French Naval Group. They launched the sixth Scorpene submarine of Project-75, “Vagsheer”. It also launched the fourth P15B-Visakhapatnam class Guided Missile Destroyer, namely ‘Surat’, and the second P17A Nilgiri Class Stealth Frigate, namely ‘Udaygiri’, in May. Mazagon has also pipelined other products for now. At the end of August, they will deliver a destroyer, which is 8,500 CR, and a fully tested submarine. Mazgoan has the highest revenue compared to other listed peers. With the initiatives taken by the Prime Minister of the in-house defence mechanism, we believe the firm to have huge potential and give high returns to its investors.

Valuations:

The EPS was at Rs.35.2 in June 2021 and ROA was at 2.22%. The ROE and ROCE are at 19.1% and 25.4%. The EBITDA is -4.91 times for the firm. The P/E ratio is at 9.09 times, while 5 years ago it was at 8.24 times. The company is almost debt free, with no long-term borrowings. The stock was trading at Rs.320, up by 2.73% on Tuesday.

Muthoot Finance's net profit at Rs. 802 Cr.

Muthoot Finance's net profit at Rs. 802 Cr.

Muthoot Finance’s net profit at Rs. 802 Cr. in June 2022, down from Rs. 960 in March 2022.

Muthoot Finance’s net profit was down by 17.4% to Rs 802.01 crore in June 2022, on a 7.6% increase in total income to Rs 2,509.27 crore in Q1 FY23 over Q1 FY22. The net profit and total income in Q1 FY23 decreased 16.48% and 6.31%, respectively, QoQ. The NBFC’s consolidated net profit was down by 15.7% to Rs 824.96 crore on a 5.4% decline in total income to Rs 2,804.32 crore in Q1 FY23 compared to Q1 FY22.

The consolidated profit before tax stood at Rs 1,111.95 crore in the first quarter, down 15.1% from Rs 1,309.85 crore recorded in June 2021. The consolidated loan AUM stood at Rs 63,444 crore in Q1 FY23, increasing 9% from Rs 58,135 crore in Q1 FY22 but down 2% QOQ from Rs 64,494 crore in Q4 FY22. The interest income on average loan assets is at 20.6%, down by 211 bps from the previous quarter. The total number of loan accounts is around 80,90,132, with active customers of around 51,73,166. The average gold loan per branch was 12.167 Cr., compared to 12.461 Cr. from the previous quarter.

The RBI has to approve 150 new branches in India.

Muthoot Finance continued to deliver a stellar performance in the gold loan space, though there is a dip in loan assets during the period; they have achieved a YoY increase of 9% in loan assets at Rs 63,444 crore. The high-frequency indicators suggest a recovery in economic activity with strong urban demand, though rural demand is still stimulating. The management is optimistic about the stable demand conditions for gold loans attached to the huge untapped market opportunity in the gold loan segment. The RBI’s approval for the opening of 150 new branches, combined with recent digital initiatives and the gold loan@home service, will allow them to further expand and increase their customer base.

The very low-interest rate loans have resulted in lower yields during Q1 FY23. The launching of teaser loans was a strategic move taken in Q3 FY22 and enabled them to attract new valuable customers. Certainly, these customers will come back to Muthoot to avail of the high-quality service they offer. An uptrend can be witness in disbursement with 12700 Cr. and efficiency in collection with Rs. 13,200 Cr. in June 2022 when compared to 11200 Cr in disbursement and 10,000 Cr. in the collection from March 2022.

Valuations:

India’s largest gold loan-focused NBFC’s shares was trading at Rs.1041 down by 12.37% on Tuesday. The company’s EPS is Rs. 94.3. The Price to book value is 2.26 times and ROA is at 5.90%. The ROE and ROCE are at 23.6% and 14.2%. The return on average loan assets at 7.24% compared to 7.99% in March 2022. The NIM has also decreased to 13.04% from 14.24 in March 2022. The loan book is believe to grow at a CAGR of 14.5%. As the asset quality management is improved with dominant presence and capital sufficiency, we are bullish on Muthoot Finance.

SAIL reported a net profit of Rs. 804 crore.

Sail reported a net profit of Rs. 804Cr.

SAIL reported a net profit of Rs. 804 crore.

SAIL on Wednesday posted a 79% fall in its consolidated net profit to Rs 804.50 crore during the June quarter, dragged by higher expenses. It had clocked Rs 3,897.36 crore in the June period of the 2021-22 fiscal, Steel Authority of India Limited (SAIL) said in a regulatory filing. The company’s total income rose to Rs 24,199.51 crore from Rs 20,754.75 crore in the year-ago quarter. The expenses increased to Rs 23,295.23 crore as against Rs 15,604.07 crore in June 2021.

EBITDA fell to Rs 2,606 crore compared to Rs 6,674 crore in June 2021. The revenue was at Rs 24,029 crore, up 16% year-on-year. The sales volume declined marginally to 3.15 million tonnes (MT) during Q1 of the current fiscal compared to 3.33 MT in June 2021.

Other parameters for the business:
The crude steel output was at 4.33 million tonnes, up from 3.77 MT in the same quarter of the preceding financial year. The sales were down to 3.15 MT as compared to 3.33 MT last year. The first quarter of FY23 saw challenges of higher input costs and serious market demand, both global and domestic, impacting the performance of the company. The high cost of production due to an increase in imported coking coal prices had an impact on the company’s bottom line. The decline in global demand and prices for steel had a direct bearing on the domestic market and price realization.

The first quarter of FY2 had higher input costs and subdued market demand, both global and domestic, impacting the performance of the company. The high cost of production due to high import prices of coking coal had an impact on the bottom line. The decline in global demand and prices for steel had a direct effect on the domestic market and price realisation. SAIL has infrastructure projects to gain momentum, which will boost the demand for their products. They are confident of improved performances in the second half of the current financial year with a significant reduction in the price of imported coal and an uptick in demand.

Valuations:
The EPS for SAIL is Rs. 22.2. The ROE and ROCE were at 25.1% and 24.3%, respectively. The EBITDA ratio is 2.52. While the P/B ratio is 0.62, The P/E ratio is at 3.58 times, whereas the 5 year P/E is at 4.49 times. The scrip closed at Rs.81.6, down by 3.49%.

Cummins India's PAT falls in Q1 FY23.

Cummins India's PAT falls in Q1 FY23.

Cummins India’s PAT falls in Q1 FY23.

Cummins India on Wednesday reported a 20% decline in PAT at Rs 198.13 crore  for June quarter. The company’s consolidated profit after tax (PAT) was Rs 246.94 crore in the year-ago period. The consolidated sales during this period increased 41.47% to Rs 1,666.11 crore from Rs 1,177.71 crore in the June quarter of 2021. Domestic sales were 1,172 Cr., a 36% increase over June 2021 and a 12% increase over March 2022.

The export sales were valued at  485 Cr., increased by 58% compared to June 2021 and by 14% compared to March 2022. The profit before tax at 264 Cr. is lower by 13% compared to June 2021 and higher by 8% compared to the March 2022 quarter.

Cummins India is planning to increase its sales volume.

They are closely monitoring the results of the geopolitical events unfolding in different parts of the world and their impact on global demand and the supply chain. Cummins India effectively deals with challenges and monitors any potential impact of rising interest rates on demand. However, they remain optimistic about the short-to-medium-term demand outlook. The company believes that the strong demand from various end-markets may likely be sustained, but at the same time, high inflation and supply chain issues will, in all probability, continue to impact the industry.

The company believes that the strong demand from various end markets may likely continue. At the same time, surging inflation and supply chain disruptions will, in all probability, continue to impact the industry. The company, being part of the global supply chain, is well placed to manage parts supplies to mitigate the impact on revenue and profitability. They are closely monitoring the results of the geopolitical events unfolding in different parts of the world and their impact on global demand and the supply chain. Considering the uncertainty, the company will not provide any guidance for FY 23.

Valuations:

The P/E for the company is at 40.0 times and the 5Y P/E ratio is 28.6 times. The ROCE is 21.3%.While the company’s ROE is 16.9%.The EVEBITDA ratio is 26.0.EPS for the company is Rs. 30.6 per share. The debt-to-equity ratio is currently 0.08.The scrip closed at Rs.1239 and was up by 6.15% on Thursday.

VRL Logistics has reported its highest revenue since the pandemic.

VRL Logistics has reported its highest revenue since the pandemic.

VRL Logistics has reported its highest revenue since the pandemic.

VRL Logistics reported a total revenue of Rs. 717 Cr. in the June quarter as against Rs. 665 Cr. in the March quarter. The company reported a net profit of Rs. 49 Cr. in Q1 FY23 compared to Rs. 56 Cr. in Q4 FY22 and Rs. 6 Cr. in Q1 FY22. 117 Cr. in the June quarter compared to Rs. 126 Cr. in the March quarter. The growth in the transport business is contributing 90% of the total revenue and was at 609 Cr. The increase was due to tonnage of around 44% and the other was due to realization.

New branch additions:

The company added 68 branches in Q1 FY23, giving an overall of 157 total branches. It intends to map out new locations and expand its reach. The new branches contributed 8% in Q1 FY23. They are in touch with the small operators as this can help them to have a strong base. The government has made it a norm in April to generate an E-invoice above 20 Cr, which will be decreased to 10 Cr. in the near future. This indicates that the business will be done in a more organized way.

Many commodities and new contracts are gradually shifting to the company as a result of their proper compliance procedure, and the number of customers has increased from 4 lakh in pre-covid level to 7 lakh customers. The diesel cost has increased from 29% of the total revenue to 31%. This rise is due to an increase in procurement costs, which was at Rs. 85 to Rs. 93 in the current quarter. The company is unable to get fuel from the refinery, which was 40% of their consumption. It declined to 25% in Q4 FY22 and null in the current quarter due to increases in bulk purchases by the government due to which they lost Rs.2 per liter.

The employee costs is constant in VRL Logistics. EBIT was 69 cr in Q1. The company has also increased the useful life of the asset from 9 to 15 years. The net free cash was at 100 Cr, out of which 85 Cr was used to fund Capex for the goods transport business.

Valuations:

The P/E for the company is at 24.8 times, and the 5 year P/E and 3 year P/E ratios are 27.8 times and 27.3 times, respectively. ROCE for VRL Logistics is at 22.7%. While the company’s ROE is 25.1%.The EVEBITDA ratio is 11.8.EPS for the company is Rs. 24.4 per share. The debt to equity ratio is at 0.82. The scrip closed at Rs. 604.45 and was up by 0.92% on Thursday.

Lumax recorded its biggest ever profit.

Lumax recorded its biggest ever profit.

Lumax recorded its biggest ever profit.

Lumax Technologies reported a 539.59% jump in its profit to Rs.21.81 crore as against Rs. 3.14 crore in June 2021 and 20 crore in March 2022. The total sales were at Rs. 421.93 Cr compared to Rs. 260 Cr in June 2021 and Rs. 417 Cr in March 2022. EBITDA margins stood at 11.5%, up by 430bps from Q1 FY22. The company expects a bounce back in domestic exports as the world economy is witnessing a strong recovery.

A long way to go ahead:

The auto industry was under pressure in the last quarter due to a shortage of semi-conductors, rising commodity prices on account of inflation, and supply chain disruptions. However, the volumes have increased this year as the economy is stabilising. The company has witnessed consistent improvement in all the sectors, which indicates that the mobility industry is revisable and in its growth stage. The growth catalysts will be  OEM offtake, an improving demand scenario, strong aftermarket demand, and increased wallet share with its major customers. The key highlights for Q1 FY23 are normal economic activity, healthy retail sales, demand in the PV segment amid new launches in the SUV domain, a reduction in excise duty, and a reduction in key raw material prices towards the end of the quarter April-May 2022.

The increasing demand for safety and comfort requirements in automobiles is paving the way for companies focused on supplying import-substitute products. With the high growth forecast in the vehicle industry, the auto component sector is anticipated to rise twice in FY 2022–23. The government’s recent announcements of PLI schemes regarding ACC Batteries and Auto & Auto Components are expected to pave the way ahead for the creation of an automotive value chain.

Valuations:

The ROCE and ROE is at 18.4% and 13.0% respectively for Lumax Technologies. P/E ratio is at 17 times, whereas 5 years and 3 years P/E ratio is at 16.5times and 14.4times. EVEBITDA is 7.97 times. The EPS is at Rs. 12.9 and P/B ratio is at 2.79 times. The stock closed at Rs.222 down by 3.39% on Wednesday.

Ajmera Realty reported total revenue of Rs. 55 Cr. in Q1 FY23.

Ajmera Realty reported total revenue of Rs. 55 Cr. in Q1 FY23.

Ajmera Realty reported total revenue of Rs. 55 Cr. in Q1 FY23.

Ajmera Realty reported its total revenue of Rs. 55 Cr. in Q1 FY23, down from Rs. 135 Cr. in Q1 FY22 and Rs. 181 Cr. in Q4 FY23. The current quarter’s PAT was Rs. 12 Cr., compared to Rs. 14 Cr. in the previous quarter and Rs. 10 Cr. in June 2021.EBITDA was at Rs. 18 Cr. compared to 40 Cr. in March 2022. This was due to head winds from higher input costs, revisions in interest rates, and other economic challenges. The company has maintained its margin above 9.5% on a PAT basis.

There was a decrease in debt by 25 CR in the quarter Q1 FY23 due to traction in sales, and the firm has no outstanding debt. The cost of debt has risen by 40 basis points to 11.6 percent, and the net equity ratio in the current quarter is 1.128 percent of net worth, compared to 1.18 percent in March 2022.The volume has increased to 1,574, 438 square feet, and the sales value is at Rs.400 Cr. The collection has improved from 93 Cr. in March 2022 to Rs. 210 in June 2022.

High Demand due to WFH culture:

The company witnessed a strong performance with the launch of two projects and expects to generate revenue in the coming quarters as they are in advanced stages. Overall, real estate has witnessed a resilient performance due to upward pressure in all commodities. For the first time, buyers have improved segments in real estate. Despite the hike in interest rates, there is a bit of a slowdown, but overall there is good demand. The shift in work from home, along with demand for mid-segment to luxury housing, will drive demand for this project.

The Marquee projects of Mumbai – in Wadala have a great response with 2 towers. The company has also received permission to start its work in Juhu which the issuance of certificate for construction. They acquired land spans 1,721 sq.mt., on which a residential property with a potential carpet area of 95,000 square feet is to be built, with a sales value of Rs250 crore expected over three years at conservative price points. The infrastructure will consist of two wings with 100 units with all modern lifestyle amenities.

Valuations:

EPS was at Rs.13.2 for the company and EVEBITDA was at 16.5 times. The P/E ratio is 16.5 times. Debt to equity ratio stood at 1.22. ROCE and ROE is at 8.03% and 6.63% respectively. The script is trading at 260 down by 3.35%.

Greenply Industries with a net income to Rs. 455.09 crore.

Greenlpy Industries with a Net Income Of Rs. 455.09 Cr.

Greenply Industries with a net income to Rs. 455.09 crore.

Greenply industries have reported total income of Rs. 455.0972 crores during June 30, 2022 as compared to Rs. 451.6656 crores during the period ended March 31, 2022.The net profit was at Rs. 20.7327 crores for the period ended June 30, 2022 as against of Rs. 28.9715 crores for the period ended March 31, 2022. EBITDA stood at 40 crore in Q1 FY23 compared to Rs.45 crore in Q4 FY22.
Greenply Industries Limited has been at the front of driving innovation across its products and processes keeping the consumer safety in mind. With the accelerated transformation in the interior sector post pandemic, the company introduced its E-0 compliance “Green Platinum” which is two times as effective in fire-resistant and waterproof properties as compared to other available plywood in its range. Green Platinum is also enriching with an un-extended BWP resin depicting it two times as boiling waterproof as compared to regular fire-resistant plywood.

Remarking on the launch of the new collection range

The innovation for the core products has created products that are made to fit the evolving needs of consumers. Through extensive research on consumer behaviors, they made a product which combines fire resistant, waterproof and emission proof features thus came up with the product Green Platinum with an added feature of money back warranty. Through continuous R&D process, they came up with more eco-friendly product which will promote aesthetic living among the consumer base.
Green Platinum Plywood combines the strength of California Air Resource Board (CARB) for conforming to E-0 grade formaldehyde emission and also comes with an anti-bacterial and anti-viral coating to ensure the health and safety of every home. Greenply has also taken a leadership position in communicating the need to choose the right building material for health safe interiors through their E-0 innovation. The E-0 innovation has reached over 1 million households; however, Greenply continues to build on the awareness amongst end consumers through relevant and multiple touch points.

Valuations:

The EPS of Rs. 1.68 for the period ended June 30, 2022 as compared to Rs. 2.35 in March 31, 2022 and Rs.0.33 for the period ended June 30, 2021. EVEBITDA stood at 12.9 times. P/E ratio was at 19.8 times and 5 years P/E was at 27.3 times. The scrip closed at Rs. 179 down by 1.89% on Monday.