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Gold prices registered a high value as investors considers gold as safe investment in midst of uncertainty in tariff policy
Business, Equities, Markets, Result Updates - August 16, 2022

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.

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Sprayking Ltd Announces Stock Split, Rs 50 Cr Rights
Business, Equities, Market News, Markets, Result Updates - August 13, 2022

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%.

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Everest Kanto reported a total revenue of Rs. 380 Cr.
Business, Equities, Markets, Result Updates - August 12, 2022

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.

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Porter Extends Series F: New $110 Million Boost Powers Indian Logistics
Business, Equities, Markets, Result Updates - August 12, 2022

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.

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BEL to manufacture hydrogen fuel cells with technology from TEV.
Business, Equities, Markets, Result Updates - August 11, 2022

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.

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Realty Stocks Rise Up to 6% on RBI Rate Cut Hopes; Sobha and DLF Lead Surge
Business, Markets, Result Updates - August 10, 2022

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%.

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Aarti Industries Ltd Q1 FY23 Result Updates.
Result Updates - August 9, 2022

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.

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Zee5 reported a net profit of Rs. 122 cr. 
Business, Markets, Result Updates - August 8, 2022

Indigo Paints revenue up from Rs.156 Cr to Rs.223.99Cr.

Indigo Paints revenue up from Rs.156 Cr. to Rs.223.99 Cr.

Indigo Paints on Friday posted its financial results for the April to June 2022 quarter, with a net profit of Rs 19.91 crore up by 71.49% in the current quarter as against Rs 11.61 crore during the previous quarter YOY. PAT margins increased to 8.87% compared to 7.30% in the first quarter of the previous fiscal year. The sales stood up by 43.56% to Rs 223.99 crore in June 2022 as against Rs 156.02 crore during June 2021. The company clocked a more than 71% jump in profit and its margin improved following price hikes during the three months. The revenue of Indigo Paints’ for June 2022 ended quarter increased over 43 % YOY to Rs 224 crore, compared to Rs Rs 156 crore in the year-ago period.
EBITDA for Q1 FY23 stood at 35.27 crore from Rs. 20.16 crore up by 75% YOY. The margins expanded to 15.75 % against 12.92% when compared to last quarter. The consistent raw material prices improved from 43.61% in March 2022 to 45.19%. It was passed to the consumers in a staggered manner, the raw material cost are stabilised and have started to cool down.

New opportunities for Indigo Paints:

The company steadily witness higher volume growth in the Emulsions segment which is the largest contributor to overall value sales, and the Premium Emulsion category in particular. The incremental price hikes affected in few selected products which was in line with the industry.
The management believes that its growth in profitability would have been significantly higher had it not indulged in high advertising and promotional spending during the Indian Premier League (IPL) season. The FY22, IPL schedule was split between April and September, whereas in the current year, it was conducted in a single phase in April and May. As they are a significant advertiser in IPL, this has resulted in a higher advertising and promotional spending in June quarter of FY23 than in FY22 by Rs 5 crore.
The firm expects a much sharper increase in profitability parameters in the future quarters with comfortable margins and stabilising input costs. The company added that the strategy of increasing the presence in the Tier-1 and Tier-2 cities is showing early indications of traction and is expected to yield results in the next 2-3 quarters.

Valuations:

EPS for the company is at Rs.19.4. P/E ratio stood at 78.8 times and 5 years P/Efor te company is 90.9 times. EVEBITDA for the company is 45.1 times. However, despite the jump in revenue, profit, and margin, Indigo Paints’ shares failed to cheer Dalal Street investors as the stock ended the session at Rs 1,552, down 2 percent from its previous close on BSE.

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Inox Leisure reported its highest ever revenue of Rs.589 Cr. in Q1FY23.
Business, Markets, Result Updates - August 5, 2022

Inox Leisure reported its highest ever revenue of Rs.589 Cr. in Q1FY23.

Inox Leisure reported its highest ever revenue of Rs.589 Cr. in Q1FY23.

In Q1, Inox Leisure reported the highest revenues of Rs. 589 crore and a profit of Rs. 74 crore. The company reported an EBITDA of Rs 130 Cr. with a footfall of 18.4 million. The year-ago quarter was affected by the second COVID wave, with Q1FY23 being the first quarter of full operations. This is largely due to the flow-through of greater revenue and the continuous benefits of cost optimization. Rentals are likely to normalise to pre-Covid levels by the end of this quarter. The company recorded its highest ever average ticket size of Rs. 229 in Q2 FY23.

 

The blockbuster movies contributed significantly to higher revenue.

The quarter witnessed chartbuster movies like RRR, KGF: Chapter 2, Vikram, Bhool Bhulaiya 2, and Doctor Strange In The Multiverse of Madness. The company saw record ticket prices and revenue. The stock recorded a big beat in 1QFY23 revenue. The company delivered its best-ever quarterly performance. The spending per head was at Rs.96 in June 2022, up by 19% from Q1 FY20. The company now operates on 692 screens across 163 multiplexes in 73 cities. The company intends to add 13 more properties and 60 screens. The advertising revenue is slowing signs of recovery.

Inox Leisure added 3 new properties in June 2022 with 17 screens each, at AIPL Joystreet, Gurugram; Orchid Mall, Kalaburagi; and Sattva Necklace Mall, Hyderabad. This indicates the company’s expansion focus and intent to reach new markets. The management is confident about the business and expects a great turnaround in the business going forward thanks to a fascinating content schedule in the upcoming quarter with releases like Laal Singh Chaddha, Raksha Bandhan, Liger, Brahmastra, and Vikram Vedha.

The outstanding box office performance was appropriately complemented by the company’s phenomenal performance across the F&B counters. The redesigned approach for F & B, supported by strategic promotions and innovations, has resulted in a soaring F & B revenue of Rs 164 Cr. INOX continued its focus on the consumer front by expanding its merchandise business, where INOX admirers can buy products and feel connected with their favourite super heroes.

 Valuations:

The EPS for the company is at Rs. 4.67 compared to Rs. -2.30 in the previous quarter. ROCE and ROE for the company are at-1.57% and -38.1%, respectively.  P/E ratio for the company is 20.17 times. While, the 5 years P/E ratio is 22.2 times and 3years P/E is at -9.50 times. The debt to equity ratio for the company is 4.26, and the return on assets is -17%. The scrip was trading at Rs. 592, down by 1.85% on Thursday.

 

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Adani Group Stocks Rally on SEBI Relief, Investors Watch Pending 22 Orders for Clarity
Result Updates - August 4, 2022

Adani Wilmar reported a net profit of Rs. 175 crore.

Adani Wilmar reported a net profit of Rs. 175 crore.

Adani Wilmar Ltd (AWL), an edible oil major, on Wednesday reported a 10% growth in consolidated net profit at Rs 193.59 crore for the quarter ended June 2022. Its PAT stood at Rs 175.70 crore in June 2021. The total revenue increased to Rs 14,783.92 crore in the Q1 FY23 from Rs 11,369.41 crore in the Q1 FY22. The company has continued to demonstrate steady growth in overall volumes, led by the food business. It is despite multiple headwinds that were witnessed during the quarter, with inflation being the major concern. The edible oil business stood at 0.70 million tonnes, posting a growth of 6% volume YOY. In value terms, sales stood at Rs 11,519 crore, up 23 per cent.

Steady growth in new products:

While a majority of FMCG products are sold through general trade, the company has seen double-digit growth in revenue through e-commerce and modern trade. The sales of new products such as Poha, Khichdi, Total Balance Oil, Soya Chunkies, etc., have doubled on a YOY basis, though on a low base.

Adani Wilmar’s collective volumes increased to 1.19 million tonnes in Q1 of FY23 compared to 1.03 million tonnes in Q1 of FY22, registering a growth of 15 per cent. Food and FMCG continued to lead the growth and now have a basket of Rs 860 crore for the June quarter, registering a growth of 66 per cent on revenues and 53 per cent on volume terms. ‘Fortune’ the flagship brand, is India’s largest selling edible oil brand. The company has 23 plants in India, located in 10 states, comprising 10 crushing units and 19 refineries.

Valuations:

Adani Wilmar’s EPS is Rs. 6.68.The P/E ratio stood at 111. Its five-year P/E ratio was 74.7.The debt to equity ratio for the company was 0.36. The EBITDA ratio was 46.4. The ROCE for the stock stood at 21.5%. The ROE was at 15.5%. The large cap company closed at Rs.694, down by 0.54% on Thursday.

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