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British Fashion Titan ASOS Makes Exclusive Indian Debut Through Ajio
Business, Equities, Expert Views, Investor Forum, Market News, Markets, Research, Research Reports, Result Updates - December 8, 2023

Strategic Expansion: Trident Plans 14,470 Mn CAPEX by March 2024

Strategic Expansion: Trident Plans 14,470 Mn CAPEX by March 2024

Company Name: Trident Ltd | NSE Code: TRIDENT | BSE Code: 521064 | 52 Week high/low: 43.8/25 | CMP: INR 36.2 | Mcap: INR 18,427 Cr | PE: 40.4

Company Overview:

Trident Ltd is a textile company engaged in the manufacturing, trading, and selling of textile products such as yarn, terry towels, and bed sheets. Additionally, the company also manufactures paper and chemicals. It operates in three revenue segments: Bath & Bed Linen, Yarn, and Paper. With a presence in 150+ countries globally and a workforce of 13,000+, Trident Ltd is a prominent player in the industry.

Robust Revenue Growth Driven by Increased Demand

In Q2FY24, the company experienced a significant revenue growth of 24.1% YoY (+20.06% QoQ), reaching 1,761 Cr. This surge was attributed to the rising demand for textile and paper products. The Textile segment’s revenue grew by 21.48% YoY to 1,465 Cr, while the Paper segment witnessed a 13.43% YoY increase, reaching 296 Cr. Notably, Bed & Bath Linen contributed 57% to the total revenue, with Yarn and Paper contributing 27% and 17%, respectively.

Margin Improvement – EBITDA/EBIT/PAT – 350 bps/390 bps/445 bps YoY

The company’s profitability margins saw improvement in Q2FY24, driven by strategic initiatives such as higher retail price points, a focus on specific product categories, increased plant capacity utilization, and the development of new products. EBITDA margin jumped 350 bps YoY to 13.6%, while EBIT and PAT margins expanded by 390 bps YoY to 8.6% and 445 bps YoY to 7.25%, respectively.

Company Plans CAPEX of 14,470 Mn to Increase Capacity in All Segments by March 2024

Trident Ltd plans a substantial capital expenditure of 14,470 Mn to boost capacity across its segments. In the Yarn segment, there is a targeted increase in capacity by adding 98,496 spindles by December 2023 and 94,848 spindles by March 2024. Bath Linen and Chemical segments also have planned capacity expansions, requiring investments of 11,000 Mn and 1,000 Mn, respectively.

Profitability Grew 222% YoY (+41% QoQ) Led by Lower Input Prices and Demand Scenario

The company reported a remarkable 222% YoY growth and 41% QoQ growth in profitability (PAT), reaching 127 Cr during Q2FY24. This robust performance was fueled by margin improvement, lower input prices, and increased demand. PAT margin increased by 445 bps YoY and 110 bps QoQ, reaching 7.25% in Q2FY24, with a one-time exceptional gain of 36 Cr impacting the quarter.

Valuation and key ratio

As of now, the stock is trading at a multiple of 40.4x EPS (TTM) at the current market price of 36.2, with an industry PE at 27x. The company’s stock is valued at 4.4 times its book value of 8.14 Rs per share. In EV/EBITDA multiple, Trident holds the 4th position with a multiple of 18.65x, surpassing the industry median of 15.21x. In H1FY24, the ROE and ROCE stood at 10.5% and 11.1%, respectively, while the interest coverage ratio demonstrated the company’s solvency at 7.52x.

Q2FY24 Results Update: Standalone

➡️In Q2FY24, the company witnessed a revenue growth of 24.1% YoY (+20.06% QoQ) to 1,761 Cr, driven by an increase in the retail price point. Textile revenue increased by 21.48% YoY, while paper revenue increased by 13.43% YoY.

➡️Gross profit increased by 42.5% YoY (+13.84% QoQ) to 847 Cr due to a moderate rise in raw material costs. While gross margin improved by 620 bps YoY, it declined by 260 bps QoQ to 48.08% due to an increase in COGS QoQ.

➡️EBITDA surged by 67.54% YoY (+5.05% QoQ) to 240 Cr, with EBITDA margin expanding by 350 bps YoY but declining by 190 bps QoQ to 13.6% in Q2FY24.

➡️Operating profit (EBIT) grew by 131.13% YoY (+7.7% QoQ) to 152 Cr, with EBIT margin increasing by 395 bps YoY but declining by 99 bps to 8.6% in Q2FY24.

➡️PAT grew by 221.89% YoY (+41.36% QoQ) to 127 Cr, driven by margin improvement and an increase in prices. PAT margin jumped by 445 bps YoY and 110 bps QoQ to 7.25%.

➡️EPS for the quarter stood at 0.25 Rs, compared to the previous quarter’s 0.18 Rs.

Conclusion:

Trident Ltd showcased robust Q2FY24 results, marked by substantial revenue growth, margin improvement, and strategic expansion plans. With a strong global presence, diversified product portfolio, and prudent financial metrics, the company is poised for continued success in the textile industry. Investors may find the stock’s current valuation and key ratios favorable, reflecting Trident’s solid performance and growth prospects.

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Strategic Partnerships Fuel One97’s Financial Turnaround

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AEL Resilient Q2 Performance in Energy and Airport Sectors
Business, Equities, Expert Views, Investor Forum, Market News, Markets, Research, Research Reports, Result Updates - December 4, 2023

AEL Resilient Q2 Performance in Energy and Airport Sectors

AEL Resilient Q2 Performance in Energy and Airport Sectors

Company Name: Adani Enterprise Ltd | NSE Code: ADANIENT | BSE Code: 512599 | 52 Week high/low: 4,190/1,017 | CMP: INR 2,362 | Mcap: INR 2,69,240 Cr | PE: 103

Company Overview:

Adani Enterprise Ltd, a key player in the Adani Group, operates in the sectors of energy & utility, road & transport, FMCG & digital, and primary industries. The business is divided into two segments: Incubating Business (energy, airport, and road) and Established Business (retail, digital, and mining). AEL manages 8 airports in India, serving 23% of the total passenger base, and has 14 ongoing road projects covering 5000+ lane km. In the energy sector, the existing cell & module plant capacity is 2 GW, with an additional 2 GW in the new plant. AEL boasts the largest wind turbine generator globally, with a capacity of 5.2 MW, earning recognition for global WTG supply.

EBITDA gained momentum driven by strong incubating business:

EBITDA witnessed a robust 30% year-over-year growth in Q2FY24, primarily attributed to the outstanding performance of the Incubating Business segment, encompassing Energy and Airports. The Energy business demonstrated an extraordinary 11x YoY EBITDA surge, reaching 628 Cr, while the Airport business experienced a notable 15% YoY increase, totaling 568 Cr. Consequently, the consolidated EBITDA exhibited a noteworthy 30% YoY upswing (with a marginal -3.72% QoQ decline), amounting to 2,430 Cr, despite a reduction in overall revenue. In contrast, the Established Business segment, specifically IRM, witnessed a modest 4.4% YoY decline in EBITDA, settling at 1,063 Cr, whereas the Mining business demonstrated a commendable 17% YoY EBITDA growth.

Ensuring Sustained and Resilient Growth in Our Incubating Business

Incubating business exhibited robust growth, with combined revenue from airport and road operations surging 49% YoY to 1,946 Cr, driven by stellar operational performance. Passenger volume soared by 31% YoY to 21.4 Mn in Q2FY24 compared to 16.3 Mn in Q2FY23. Air traffic movement witnessed a 17% increase, while cargo experienced a 5% decline during the quarter. In the solar, wind, and data center segment, combined revenue surged by an impressive 216% YoY, reaching 1,939 Cr. This significant growth was attributed to a remarkable 205% YoY increase in module sales, totaling 630 compared to 206 in Q2FY23.

Margin improvement but PAT declined 23% YoY

In Q2FY24, the PAT saw a 23% YoY decline (-50% QoQ) to 333 Cr, attributed to a rise in the tax rate to 50% from 34% in Q2FY23. EBITDA and PAT margins showed improvements of 590 bps YoY and 35 bps YoY, respectively, driven by lower raw material costs and total Opex. The management maintains a 56% YoY reduction in raw material costs and an 8.17% YoY increase in operating costs.

Latest Developments in Data Center and ANIL Ecosystem Business:

In the Data Center segment, Chennai Phase-I 17 MW project is operational, Noida project- 50 MW was completed 63% of overall project and Hyderabad project -48 MW was completed 65% of overall project. In the ANIL Ecosystem business, solar manufacturing total operational capacity was at 4.0 GW, Wind Turbine manufacturing received final type certificate for prototype 1 and Nacelle & Hub facility – commenced commercial production.

Valuation and key ratio

The stock is currently trading at a high multiple of 103x EPS(TTM) 21.4 Rs at current market price of 2,362, with an industry PE of 38.7x. The company is valued at 2.5x its book value of 322 Rs per share. In EV/EBITDA, AEL ranks 5th among peers at 27x, compared to the industry median of 19.3x. The trailing twelve-month ROE and ROCE are 9.63% and 9.49%, respectively. The interest coverage ratio is 1.94x, indicating strong solvency.

Q2FY24 result update: Consolidated

➡️In Q2FY24, Consolidated revenue declined by 41% YoY (-11.5% QoQ) to 22,517 Cr, attributed to a slowdown in the IRM and mining business.

➡️Gross profit witnessed a 13% YoY growth (-10.5% QoQ) to 9,397 Cr, driven by a significant 56% YoY reduction in raw material costs. The gross margin showed a robust 19% YoY increase, reaching 41.7%.

➡️EBITDA surged by 30% YoY (-3.7% QoQ) to 2,430 Cr, propelled by the strong performance of incubating businesses, including energy and airport & road ventures. EBITDA margin increased by 590 bps YoY and 87 bps QoQ, reaching 10.7%.

➡️Operating business (EBIT) grew by 25% YoY (-7.5% QoQ) to 1,673 Cr, with EBIT margins expanding by 390 bps YoY and 31 bps QoQ, reaching 7.4%.

➡️PAT declined by 22.9% YoY (-50.8% QoQ) to 333 Cr, primarily due to an increased tax rate of 50% in Q2FY24 compared to 34% in Q2FY23.

➡️EPS for the quarter stood at 2.92 Rs, down from 5.94 Rs in the previous quarter.

Conclusion:

Adani Enterprise Ltd Q2FY24 showed strong EBITDA growth from thriving energy and airport businesses, offsetting an overall revenue decline. Despite a dip in PAT due to increased tax rates, the company remains resilient with a focus on sustained growth in incubating sectors. Key ratios indicate a high stock multiple and strong solvency. Ongoing developments in data centers and the ANIL ecosystem underscore AEL’s commitment to innovation and expansion.

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Strategic Partnerships Fuel One97’s Financial Turnaround

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Gold and Silver Aim for Key Resistance Zones
Business, Equities, Expert Views, Investor Forum, Market News, Markets, Research, Research Reports, Result Updates - December 4, 2023

Q2 Success: Cressanda's EBITDA Sees Remarkable Growth

Q2 Success: Cressanda’s EBITDA Sees Remarkable Growth

Company Name: Cressanda Solution Ltd | BSE Code: 512379 | 52 Week high/low: 33.6/19.6 | CMP: INR 25 | Mcap: INR 994 Cr | PE: 176x

Company Overview:

Cressanda Solution Ltd, an India-based company, specializes in IT enabled services and digital media. The company’s offerings are divided into two baskets: TECHNOLOGY nXT and INFRA nXT. TECHNOLOGY nXT focuses on transforming existing business processes through Automation, AI & ML, Data Science, FinTech, HealthTech, and Data Security. On the other hand, INFRA nXT provides services in mobility, transportation, skilling, healthcare, and digital welfare. Cressanda serves key sectors, including healthcare, education, financial services, and transportation.

PAT Skyrockets 300% YoY Amidst Revenue Decline

In Q2FY24, Cressanda reported a revenue of 19.5 Cr, a 6.7% YoY decline but a substantial 57.4% QoQ increase. Despite the top-line slowdown, the company effectively managed raw material costs, resulting in a 28% YoY reduction and a remarkable 300% YoY surge in PAT. This translated to an 836% QoQ increase in PAT.

EBITDA Jumps 315% YoY Fueled by Strategic Cost Management Initiatives

Q2FY24 saw EBITDA growth of 315% YoY, though there was a 191% QoQ decline to 1.68 Cr. This exceptional performance was driven by effective cost management, with revenue declining by 6.74% YoY to 19.5 Cr and COGS down by 28.5% YoY to 14.5 Cr. Consequently, EBITDA margin increased by 6.6% YoY and an impressive 21.6% QoQ to reach 8.63% in Q2FY24.

Q2 Profits Soar on Other & Exceptional Income, Margins Surge

During Q2FY24, the company reported other income of 1.21 Cr, a substantial increase from the previous quarter’s 0.06 lakh. Additionally, a one-time exceptional income of 2.14 Cr, equivalent to 41% of PAT, contributed to a PAT of 5.10 Cr. This boosted PAT margins to 26%, while EBITDA and EBIT margins stood at 8.63% and 8.60%, respectively.

Valuation and Key Ratios:

Currently trading at a multiple of 176x EPS (TTM) at a market price of 25 Rs, Cressanda Solution Ltd surpasses the industry PE multiple of 40.4x. The stock is also trading at 8.37 times its book value of 2.99 Rs per share. In terms of EV/EBITDA multiple, the company ranks 2nd among peers at 137.8x, compared to the industry median of 20.85x. The trailing twelve-month ROE and ROCE stand at 7.23% and 9.65%, respectively.

Q2FY24 Results Updates: Standalone:

➡️In Q2FY24, despite a 6.7% YoY revenue decline, Cressanda showed resilience with a 57.4% QoQ growth to 19.5 Cr. The company’s commitment to maintaining raw material costs led to a remarkable 673.3% YoY increase in gross profit, reaching 5 Cr.

➡️EBITDA witnessed a substantial 315.6% YoY growth, although there was a temporary 191% QoQ decline to 1.7 Cr. EBITDA margin expanded by 6.7% YoY and an impressive 21.6% QoQ, reaching 8.63% in Q2FY24.

➡️Operating profit (EBIT) saw a remarkable 314.6% YoY increase, with a 190.4% QoQ decline to 1.7 Cr. EBIT margin expanded by 6.6% YoY and an impressive 23.6% QoQ, reaching 8.60% compared to 1.93% in Q2FY23.

➡️Other income in Q2FY24 stood at 1.21 Cr, a significant increase from the previous quarter’s 0.06 lakh. The one-time exceptional income of 2.14 Cr significantly contributed to the boosted net profit.

➡️PAT surged by an impressive 301.9% YoY and an astounding 836.5% QoQ to 5.10 Cr. This robust performance was attributed to effective cost management, other income, and one-time exceptional income. PAT margin increased by 20% YoY and 21.8% QoQ, reaching 26.2% in Q2FY24.

➡️EPS for the quarter stood at 0.12 Rs, a significant improvement from the previous quarter’s 0.01 Rs.

Conclusion

Cressanda Solution Ltd demonstrated remarkable resilience in Q2FY24, navigating a YoY revenue decline through astute cost management. Despite the revenue challenges, the company witnessed an impressive surge in PAT by 300% YoY and 836% QoQ. The strategic focus on maintaining raw material costs and capitalizing on other income sources contributed to robust financial performance. The company’s strong EBITDA growth, expanding margins, and prudent financial measures position it as a noteworthy player in the industry.

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Strategic Partnerships Fuel One97’s Financial Turnaround

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Gautam Adani’s Freight Forwarding Foray: Challenging Global Logistics Giants
Business, Equities, Expert Views, Investor Forum, Market News, Markets, Research, Research Reports, Result Updates - November 30, 2023

APSEZ Q2FY24 Highlights: Robust Growth in Cargo Volumes Despite Forex Losses

APSEZ Q2FY24 Highlights: Robust Growth in Cargo Volumes Despite Forex Losses

Company Name: Adani port & SEZ Ltd | NSE Code: ADANIPORTS | BSE Code: 532921 | 52 Week high/low: 912/395 | CMP: INR 832 | Mcap: INR 1,79,637 Cr | PE: 22.7x

Company Overview:

APSEZ, part of the Adani Group, is India’s largest private port operator, initially known as Gujarat Adani Port Limited (GAPL). Operating since 2001, it has expanded to manage 14 ports/terminals across India. In FY23, APSEZ held a 24% market share, handling 339mmt of cargo. Noteworthy acquisitions include Gangavaram, with three more ports under construction. The company also offers logistics and SEZ services through its subsidiary, ALL, providing end-to-end solutions and agri-storage through silo capacities nationwide.

Diversified portfolio with market leadership – 24% market share:

Over the past decade, APSEZ has demonstrated an impressive 10-year cargo volumes Compound Annual Growth Rate (CAGR) of 14%, which is three times the industry’s growth rate of 4%. From FY13 to FY23, India’s cargo volumes experienced a modest 4% CAGR increase to reach 1,433 MMT, while APSEZ significantly outpaced this, achieving a remarkable 14% CAGR, resulting in cargo volumes of 337 MMT in FY23. This outstanding performance can be attributed to strategic expansions at Mundra, the successful commissioning of Hazira, and strategic acquisitions, including ports such as Dhamra, Krishnapatnam, and Gangavaram. In FY23, APSEZ handled an impressive 339 MMT of cargo at its ports, solidifying its dominance with a substantial 24% market share.

Robust growth in overall cargo volumes driven by container cargo, dry cargo & liquid-gas:

APSEZ achieved a robust 14% YoY growth in cargo handling, reaching 203 million metric tonnes. Growth was observed across all major categories: dry bulk (10% YoY), liquids (21% YoY), and containers (18% YoY). Eight ports hit their highest half-yearly volumes. Mundra port led with 3.6 million TEUs, surpassing competitors by 15%. In October, Mundra set a record with 16 million metric tonnes, the highest monthly volume in any Indian port. Haifa Port in Israel handled 6.3 million metric tonnes in H1 and 1.1 million metric tonnes in October.

Robust Volume growth in the first half boosted revenue – 27% YoY:

In Q2FY24, the company reported a robust 27.5% YoY (+6.38% QoQ) revenue growth, reaching 6,646 Cr. This growth was fueled by a 17% YoY increase in overall cargo volumes, totaling 101.2 MMT in Q2FY24 and 14% YoY growth to 203 MMT in H1FY24. Notably, all three major cargo categories contributed to this expansion, with dry bulk at 10% YoY, liquids at 21% YoY, and containers at 18% YoY.

EBITDA Surges Amidst Margin Pressure from Forex Losses

In Q2FY24, EBITDA demonstrated a robust YoY growth of 26.7% (slightly down by -2.7% QoQ) to reach 3,664 Cr. However, EBITDA margins experienced a slight decline of 35 bps YoY (500 bps QoQ) to 55.1%, primarily attributable to a forex loss of 216 Cr during the quarter. Adjusting for the forex loss, the EBITDA stands at an impressive 7,429 crores, showcasing a commendable 49% YoY growth.The company’s strategic focus on enhancing operational efficiency is evident in the port EBITDA margins for H1, which expanded by 220 basis points YoY, reaching an impressive 72%. Furthermore, the logistics business boasted EBITDA margins of 29%, positioning it as the best among its domestic peer group.

Key concall highlights

➡️The company successfully completed bond buybacks of $130 million in May and $195 million in October.
Consequently, the net debt as of September 30 decreased to $38,696 million compared to $39,989 million on March 31.

➡️The addition of assets to the logistics business led to a 25% YoY increase in rail volumes to 279,177 TEUs and a 42% YoY Valuation and key ratio S bulk volumes to MMT in Q2FY24.

Valuation and key ratio

The current stock valuation indicates a 22.7x earnings per share (EPS) multiple (TTM) of 29.3 Rs at the market price of 832 Rs, with the industry PE at 34.1x. APSEZ leads peers in EV/EBITDA multiple at 15.2x, while the industry median of 15.2x. Trailing twelve-month ROE and ROCE are 14.4% and 9.53%, respectively. The interest coverage ratio at 5.1x signifies strong solvency.

Q2FY24 result update: Consolidated

➡️In Q2FY24, the company witnessed a robust 27.5% YoY (+6.4% QoQ) increase in revenue, reaching 6,646 Cr, driven by substantial growth in cargo volume.

➡️EBITDA showed a 26.7% YoY growth (-2.7% QoQ) at 3,664 Cr, with EBITDA margins at 55.1%, down by 35 bps YoY (-500 bps QoQ), primarily due to a forex loss stemming from increased foreign currency debt.

➡️Adjusted for forex loss, EBITDA surged by 49% YoY, reaching 7,429 Cr in the first half of the year. Port EBITDA margins in H1 expanded by 220 basis points YoY to 72%, while logistics business EBITDA margins stood at 29%, leading the domestic peer group.

➡️Operating profit (EBIT) increased by 32% YoY (-4.5% QoQ) to 2,689 Cr, with EBIT margin expanding by 140 bps YoY but contracting by 450 bps QoQ to 40.5%.

➡️PAT reported a modest 1.4% YoY growth (-16.9% QoQ) at 1,762 Cr, influenced by one-time expenses related to MAT credit amounting to 455 Cr during the quarter. PAT margin decreased by 680 bps YoY (-740 bps QoQ).

➡️EPS for the quarter stood at 8.16 Rs, compared to 9.81 Rs in the previous quarter.

Conclusion:

APSEZ, a leading private port operator in India, exhibited robust performance in Q2FY24 with a 27.5% YoY revenue growth, driven by a 17% YoY increase in cargo volumes. Despite margin pressure from forex losses, the company’s strategic focus on efficiency is evident in impressive EBITDA margins. The logistics business outperformed peers with a 29% EBITDA margin. The Q2FY24 PAT growth was modest due to one-time expenses. The company’s diversified portfolio, strategic acquisitions, and focus on operational efficiency position it well in the market.

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Strategic Partnerships Fuel One97’s Financial Turnaround

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Flexiloans Bags ₹375 Cr in Series C, Targets ₹5,000 Cr AUM Within 18 Months
Business, Equities, Expert Views, Investor Forum, Market News, Markets, Research, Research Reports, Result Updates - November 28, 2023

Strategic Partnerships Fuel One97's Financial Turnaround

Strategic Partnerships Fuel One97’s Financial Turnaround

Company Name: One 97 Communication Ltd | NSE Code: PAYTM | BSE Code: 543396 | 52 Week high/low: 998/440 | CMP: INR 889 | Mcap: INR 56,647 Cr | P/Sales: 7.86x

Company Overview:

One97 Communications is engaged in the business of offering a) payment and financial services, encompassing payment facilitator services, facilitating consumer and merchant lending, wealth management, and related financial solutions. b) Additionally, the company provides commerce and cloud services, serving as an aggregator for digital products, managing ticketing operations, supplying voice and messaging platforms to telecom operators and enterprise customers, among other business activities.

Robust Revenue Growth Fueled by GMV and Merchant Payments:

One97 Communications reported a robust 31.6% YoY revenue increase to Rs. 2,519 crore in Q2FY24, driven by a surge in Gross Merchandise Value (GMV) and a 47.6% YoY jump in payments to merchants. The net payment margin rose by 60.0% YoY to Rs. 707 crore, mainly due to a significant increase in non-UPI payments. The company’s adaptability in a dynamic market is evident despite a slightly lower growth rate compared to the previous quarter.

Thriving Financial Services and Loan Disbursement Business:

One97 Communications reported robust Q2FY24 financials with a 63.6% YoY growth, totaling Rs. 571 crore. The surge was driven by a 44% YoY increase in loan disbursements, reaching 13.2 million, fueled by Paytm’s active user base. The total value of disbursed loans rose by 122% YoY to Rs. 16,211 crore, showcasing the company’s success in diversifying revenue streams and leveraging its user base for sustained growth.

Strong growth in contribution profit leads to margin expansion

The loan distribution business and improved net payment margin drove a significant uptick in Q2FY24 EBITDA before ESOP cost to Rs. 153cr, compared to a loss of Rs. -167cr in Q2FY23. A consistent 69.2% YoY growth in contribution profit led to an adjusted EBITDA margin rise from -8.7% to 6.1%. In the same period, profit attributable to shareholders improved from Rs. -571cr to Rs. -291cr, indicating a positive turnaround in financial performance.

Valuation and key ratio

The company’s stock is trading at 7.84x its sales, reflecting a market valuation of 7,203 Crore INR at the current share price of 889 INR. Additionally, the company is valued at 4.53x its book value, amounting to 196 INR per share. However, financial indicators reveal challenges, with a negative ROE and ROCE at -13.9% and -13.5%, respectively. The interest coverage ratio is a concerning -48.2x, indicating potential solvency issues.

Key concall highlight

➡️In Q2, Tata Capital joined as a lending partner, bringing the total number of NBFCs and banks to nine for credit card and loan distribution.

➡️Q2FY24 witnessed a 19% YoY increase in Average Monthly Transacting Users (MTUs), reaching 9.5 crore. Merchant subscriptions showed robust growth, surging 91% YoY to 9.2 million.

➡️The cash balance strengthened to Rs. 8,754 crore in September, up from Rs. 8,367 crore in June, attributed to improved EBITDA and working capital. The company anticipates adding more partners in the upcoming quarters.

Q2FY24 result update: Consolidated

➡️In Q2FY2, the consolidated revenue witnessed robust growth, surging by 31.6% YoY (+7.6% QoQ) to reach 2,519 Cr. This growth was primarily driven by a strong uptick in merchants’ subscription revenue, increased loan disbursements, and a rise in Gross Merchandise Value (GMV).

➡️The Adjusted EBITDA before ESOP cost exhibited remarkable expansion, soaring by 191.6% YoY (+82.5% QoQ) to 153 Cr, compared to a loss of -167 Cr in Q2FY23. This impressive performance was fueled by consistent growth in contribution profit (+69.2% YoY), resulting in an improved adjusted EBITDA margin of 6.1%, a significant positive shift from -8.7% in Q2FY23.

➡️EBITDA demonstrated a notable YoY increase of 57%, but experienced a QoQ decline of 21.1% to -231 Cr, primarily attributed to higher ESOP costs.

➡️The Operating Profit (EBIT) saw a YoY decrease of 36% (-9% QoQ) to -411 Cr, primarily due to a substantial 72.7% YoY increase in depreciation expenses.

➡️Reported Profit After Tax (PAT) declined by 49% YoY (-18.6% QoQ) to -292 Cr, driven by elevated ESOP costs and depreciation.

Conclusion:

One97 Communications demonstrated robust Q2FY24 performance with a 31.6% YoY revenue increase, driven by strong growth in financial services, merchant payments, and loan disbursements. The company’s adaptability and strategic partnerships, such as with Tata Capital, contributed to positive results, leading to a notable turnaround in financial performance, reflected in improved EBITDA margins and a strengthened cash balance. Despite a QoQ decline in some metrics, One97 Communications remains well-positioned for sustained growth, focusing on expanding its partner network and capitalizing on its active user base.

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Robust Loan Book Growth and Strategic Lending Drive PFC’s Stellar Q2FY24 Results

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Navneet Education Q1FY25: Exceptional Gains Boost Profits Amid Sector Challenges
Business, Equities, Expert Views, Investor Forum, Market News, Markets, Research, Research Reports, Result Updates - November 24, 2023

Resilient Kokuyo Camlin: Impressive Profit Growth Amid Q2

Resilient Kokuyo Camlin: Impressive Profit Growth Amid Q2

Company Overview:

Kokuyo Camlin, a renowned company specializing in the production and marketing of stationery and art products, has a robust background. The company, now majority-owned by the Japanese stationery giant Kokuyo with a 74.4% stake, boasts an extensive product portfolio, including writing instruments, notebooks, marker pens, inks, fine-art colors, and various other stationery products.

Robust Manufacturing Facilities

Operating three manufacturing sites in Patalganga, Tarapur, and Jammu, the company’s Patalganga facility leads in production volume with over 324 SKUs annually. Tarapur follows with 800 SKUs, and the Jammu plant contributes 393 SKUs. Kokuyo Camlin caters not only to the local market but also exports its products to other countries.

Camlin Leads Stationery Market with 54% Paper, 34% Non-Paper Share

The stationery market is composed of two main categories: paper and non-paper stationery products. Camlin dominates the stationery market with a 54% market share in paper and 34% in non-paper. The paper industry, valued at ₹21,000 Crores, witnesses an 8% growth, with Camlin contributing ₹11,500 Crores. In the ₹17,500 Crores non-paper industry, Camlin holds a share of ₹6,100 Crores, in a market growing at 7.6%. Overall, the industry has shown significant growth.

Top-Line Momentum Sustained YoY while Dip QoQ in Q2FY24

In Q2FY24, the company reported a revenue of 194.8 Cr, marking a 2.6% YoY growth but a 17.3% QoQ decline. Despite moderate growth in top line, the management maintained raw material expenses, resulting in a 6.4% YoY boost in gross profit to 77.4 Cr, but down 12.2% QoQ.

Despite top line challenge, PAT up147% YoY on Lower Finance Cost & Tax Rate

Despite moderate top-line growth, Profit After Tax (PAT) soared by an impressive 147% YoY to 9.5 Cr, though it experienced a 48.3% QoQ downturn. This remarkable bottom-line growth was driven by decreased interest expenses, which fell 43.3% YoY and 58.8% QoQ to 0.47 Cr, and a lowered tax rate, dropping to 24% compared to 60% in Q2FY23.

Valuation and Key Ratios:

Presently, Kokuyo Camlin trades at a multiple of 40.3x EPS (TTM) 4 Rs at a market price of 161 Rs, with the industry PE standing at 26.2x. The company is trading at 5.64x its book value of 28.6 Rs per share. In the EV/EBITDA multiple, it ranks third among its top peers with a multiple of 21.7x, while the industry median is at 15.3x. The trailing twelve-month Return on Equity (ROE) and Return on Capital Employed (ROCE) stand at 9.26% and 12%, respectively. The interest coverage ratio in Q2FY24 stands at 27.4x, indicating the company’s solvency.

Q2FY24 Results Updates: Standalone

➡️In Q2FY24, revenue grew by 2.6% YoY but experienced a 17.4% QoQ decline to 194.8 Cr. Despite the moderate revenue growth, gross profit increased by 6.4% (down 12.2% QoQ) to 77.4 Cr, driven by prudent management of raw material costs.

➡️Gross margin showed improvement, rising 233 basis points (bps) QoQ and 140 bps YoY to 39.7% in Q2FY24 compared to 37.4% in the previous quarter.

➡️EBITDA increased by 18% YoY (down 28.6% QoQ) to 17.3 Cr, attributed to low raw material costs and operating leverage. The EBITDA margin, up 115 bps YoY but down 140 bps QoQ, stood at 8.9% in Q2FY24.

➡️Operating profit (EBIT) witnessed a YoY growth of 23.4% (down 35.6% QoQ) to 12.9 Cr, with the EBIT margin up 111 bps YoY but down 188 bps, standing at 6.6% in Q2FY24.

➡️PAT surged impressively by 147% YoY (down 48.3% QoQ) to 9.5 Cr, driven by lower interest costs (down 43.3% YoY), increased other income, and a reduced tax rate.

➡️Earnings Per Share (EPS) for the quarter stood at 0.95 Rs compared to 1.84 Rs in the previous quarter.

Conclusion:

Kokuyo Camlin, a leading stationery and art products company, faces QoQ revenue decline but sustains YoY growth. Despite top-line challenges, prudent cost management boosts gross profit and results in an impressive 147% YoY increase in PAT. The company trades at a PE of 40.3x, showing a premium compared to the industry. Key highlights include improved gross margin

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Robust Loan Book Growth and Strategic Lending Drive PFC’s Stellar Q2FY24 Results

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Grainspan Boosts Ethanol Output with ₹520 Crore Investment in Gujarat Plants
Business, Equities, Expert Views, Investor Forum, Market News, Markets, Research, Research Reports, Result Updates - November 23, 2023

Neogen Q2FY24: Resilient Top-Line Amid Export Market Slowdown

Neogen Q2FY24: Resilient Top-Line Amid Export Market Slowdown

Company Overview:

Neogen Chemicals specializes in the production of specialty chemicals for the pharmaceutical, engineering, and agro-chemical industries. Offering 248 products to domestic and international markets, the company operates four manufacturing sites and two R&D facilities. With a total production capacity of 463 liters cubic meters in organic chemicals and 39 liters cubic meters in inorganic chemicals, Neogen Chemicals exports to 29 countries, with the USA, Europe, and Japan contributing 31% to revenue in Q2FY24.

Capacity expansion in existing and battery business & Current project updates

In its existing business, Neogen Chemicals increased organic chemical capacity by 60,000 liters and inorganic chemical capacity from 1,200 MT (15 m^3) to 2,400 MT (30 m^3). In the battery chemical business, a new capacity of 400 MTPA was added for manufacturing Lithium Electrolyte Salts & Additives. The company aims to commission 29 m^3 of chemicals by March 2024, with an additional 31 m^3 commissioned by Q4FY24. This expansion is complemented by a recent fund raise of 253 Cr, which is expected to reduce finance costs.

Debt repayment from recent funds is expected to cut finance costs

In Q2FY24, the company successfully raised 253 Crores through preferential allotment, a strategic move aimed at retiring some existing debt. This capital infusion contributed to a reduction in interest costs in the near term. However, in the most recent quarter, PAT experienced a decline of 7.6% Year-over-Year (YoY) and a significant 20% Quarter-over-Quarter (QoQ) decrease, amounting to 9.14 Crores. This decrease in PAT can be attributed to escalated interest costs and increased depreciation during the period.

Despite a slowdown in the export market, top-line momentum continues to sustain.

Despite challenges such as global inventory destocking, a slowdown in the export market, and geopolitical uncertainties, Neogen Chemicals sustained a standalone revenue growth of 13.1% YoY (-1.1% QoQ) to 168 Cr in Q2FY24. This resilient top-line performance is attributed to recent capacity expansions and contributions from Buli chemicals.

Enhanced EBITDA (8.21% YoY) through Product Mix Optimization:

The company reported a standalone EBITDA of 26.2 Cr, marking an 8.21% YoY increase (-10.9% QoQ). This growth is attributed to an improved product mix and rationalization of raw material costs. While EBITDA margins experienced a slight decline, the overall operational efficiency improved.

Valuation and Key Ratios:

Neogen Chemicals is currently trading at a multiple of 77.5x EPS (TTM) at a market price of 1,542, with an industry PE standing at 32.7x. The company’s trading at 7.74x its book value of 199 Rs per share. The trailing twelve-month ROE and ROCE stand at 10.9% and 13.2%, respectively. In terms of EV/EBITDA multiple, the company ranks 4th among its top 8 peers, with a multiple of 34.4x, compared to the industry median of 16.1x. The interest coverage ratio of 1.98x in Q2FY24 signifies the company’s solvency.

Q2FY24 Results Updates: Standalone

➡️In Q2FY24, standalone revenue grew 13.5% YoY (-1.1% QoQ) to 168 Cr despite a slowdown in the export market, driven by an increase in capacity expansion.

➡️Gross profit grew 3.8% YoY to 71.9 Cr, with a 22.1% YoY increase in COGS. However, gross margin declined by 400 bps YoY to 42.7%.

➡️EBITDA boosted 8.2% YoY (-10.9% QoQ) to 26 Cr led by improved product mix. EBITDA margin down 78 bps YoY (172 bps QoQ) to 15.6%.

➡️Operating profit (EBIT) grew 4.61% YoY and down 13.1% QoQ to 21 Cr due to an increase in depreciation (27% YoY) with several CAPEX initiatives.

➡️PAT is down by 7.58% YoY (-20% QoQ) to 9 Cr on account of higher finance costs and depreciation.

➡️EPS for the quarter stood at 3.67 Rs while the previous quarter was 4.59 Rs.

Conclusion:

Neogen Chemicals, specializing in specialty chemicals, demonstrated resilience in Q2FY24 with sustained revenue growth despite global challenges. Capacity expansions in existing and battery businesses, coupled with successful debt repayment and enhanced EBITDA, contribute to the company’s positive outlook. While facing a decline in PAT due to increased finance costs, Neogen remains strategically positioned for future growth.

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Robust Loan Book Growth and Strategic Lending Drive PFC’s Stellar Q2FY24 Results

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Genus Power Aims for 1.5M Smart Meters Monthly!
Business, Equities, Expert Views, Investor Forum, Market News, Markets, Research, Research Reports, Result Updates - November 22, 2023

PTC India's Q2FY24: Resilient Growth in Power Trading and Financing Operations

PTC India’s Q2FY24: Resilient Growth in Power Trading and Financing Operations

Company Overview:

PTC India is primarily engaged in power trading, generation, and providing financing services across the energy value chain, including projects in generation, transmission, and distribution. Its financing business operates through the subsidiary company PTC India Financial Service Ltd (PFSL), registered as an NBFC with RBI. Additionally, its subsidiary PTC Energy Ltd (PEL) is involved in the import and export of coal, fuels into electricity, fuels linkages, and provides advisory services in the energy sector.

Moderate growth in volumes (1.45% YoY), while core margins rises by 16.1% YoY

Power trading volumes experienced a slight YoY increase of 1.45% to 21,316 million units, with core margins seeing a significant rise of 16.1% YoY to 3.96 paisa per unit. The increase in volumes from long-term and medium-term contracts offset the decline in short-term contract volumes. Long-term and medium-term contracts now constitute 53% of total volumes in Q2FY24.

EBITDA Rises by 29.8% YoY led by higher surcharge income

PTC India reported a standalone EBITDA of Rs 118 Cr, reflecting a substantial YoY increase of 29.8% and a QoQ growth of 5.7%. This growth was primarily led by higher surcharge income, amounting to Rs 34.5 Cr compared to Rs 11.8 Cr in Q2FY23. Operating expenses also showed a notable decline of 40% YoY. Standalone PAT surged by an impressive 113.3% YoY (48.4% QoQ) to Rs 133 Cr, attributed to higher surcharge income and a lower effective tax rate.

Power Trading Volume Mix in Q2FY24

As of Q2FY24, long-term and short-term contracts collectively account for 98% of total trading volumes, with long-term contracts constituting 53% and short-term contracts 45%. Medium-term contracts contribute a minor 2% to the total trading volume.

Valuation and Key Ratios:

Currently trading at a multiple of 8.91x EPS (TTM) of Rs 17.6, PTC India’s market price of 156 implies a significant undervaluation and industry PE stands at 35.6x. With a book value of Rs 172 per share, the company is trading at 0.9x its book value. In terms of EV/EBITDA multiple, PTC India is notably undervalued among its peers at 6.2x, while the median EV/EBITDA for the industry is 19.2x. Trailing twelve months ROE and ROCE stand at 9.03% and 9.21%, respectively, indicating the company’s solvency. The interest coverage ratio is at a comfortable 2.36x.

Q2FY24 Results Updates: Standalone

➡️Power trading volumes saw a slight YoY increase of 1.45% to 21,326 million units, attributed to a decline in short-term contract volumes and a rise in long-medium term contracts.

➡️Revenue for Q2FY24 grew by 6.04% YoY (6.80% QoQ) to Rs 4,880 Cr, driven by higher volumes and surcharge income.

➡️EBITDA increased significantly by 29.8% YoY (5.75% QoQ) to Rs 118 Cr, primarily due to higher surcharge income and reduced operating expenses.

➡️Other income experienced a remarkable YoY growth of 18x and a QoQ increase of 379% to Rs 50 Cr, including a dividend of Rs 41.7 Cr received from a subsidiary company during the quarter.

➡️PAT surged by an impressive 113.2% YoY (48.4% QoQ) to Rs 133 Cr, led by higher surcharge income and a lower tax rate.

➡️EPS for the quarter stood at Rs 4.51, compared to Rs 3.03 in Q2FY23.

Conclusion:

PTC India has demonstrated resilience and growth in its power trading and financing operations in Q2FY24. The company’s strategic focus on long and medium-term contracts has mitigated the impact of declining short-term volumes. With a notable rise in EBITDA, substantial surcharge income, and prudent cost management, PTC India positions itself as a strong player in the energy sector. The undervaluation indicated by key ratios, coupled with a robust financial performance, suggests positive prospects for investors.

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Robust Loan Book Growth and Strategic Lending Drive PFC’s Stellar Q2FY24 Results

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Business, Equities, Expert Views, Investor Forum, Market News, Markets, Research, Research Reports, Result Updates - November 21, 2023

Robust Loan Book Growth and Strategic Lending Drive PFC's Stellar Q2FY24 Results

Robust Loan Book Growth and Strategic Lending Drive PFC’s Stellar Q2FY24 Results

Company Overview:

PFC Ltd is a government Non-deposit-taking NBFC company primarily focused on providing finance to the power, logistics, and infrastructure sectors. Additionally, it offers consultancy services to the power sector, facilitating the development of ultra mega power projects and independent transmission projects.

Strong Loan book growth – 19% QoQ & disbursement grew 2.5x

In Q2FY24, PFC achieved an impressive 19% QoQ growth in its loan book, reaching 4,50,000 Cr as of September 30, 2023. The YoY growth is noteworthy, driven by a consistent increase in disbursements, particularly in H1FY24, where disbursements grew 2.5x compared to the previous year, standing at around 55,500 Cr. This growth is primarily attributed to lending in the distribution sector and towards renewable energy projects.

Yield expansion moderate, while rise in funding cost pull down margins

The yield in H1FY24 stood at 9.92%, showing a moderate 7bps increase from Q1FY24. However, a simultaneous 11 bps rise in the cost of funds to 7.41% led to a 3.11% YoY decline in Net Interest Income (NII) (+6.44% QoQ). Despite this, the Net Interest Margin (NIM) for the quarter stood at 3.37%, and the interest spread at 2.51%, both within the company’s target range.

Asset quality improved & CRAR sustained above 24% reflect strong capital position

Maintaining the highest level of asset quality, PFC added no new NPA in the last six years, with an NNPA ratio standing at 1%, the lowest in six years. GNPA levels have also decreased from 4.75% in H1FY23 to 3.67% in H1FY24. As of September 2023, the Capital to Risk (Weighted) Assets Ratio (CRAR) stands at a robust 24.86%, marking a 57 bps increase from Q2FY23 levels.

Hedging portion has improved to minimise exchange risk – INR depreciation

PFC has enhanced its hedging strategies, minimizing exchange risks associated with INR depreciation. The company booked a foreign translation loss of Rs 119 Cr in Q2FY24, with 83% of the foreign currency portfolio hedged for exchange risk, compared to 68% in Q2FY23. Additionally, 100% of U.S. dollar exposure maturing in the next five years has been hedged.

On going projects worth INR 16,497 Cr in stage 3

Presently, the company has 22 stressed projects in stage 3, totaling INR 16,497 Cr. Notably, 13 projects worth INR 13,899 Cr have been successfully resolved under NCLT. Two projects in advanced stages include the Lanco Amarkantak project and the Dans Energy project, with resolution plans finalized and documentation processes underway.

Late Payment Surcharge (LPS) Scheme: Bolstering Financial Discipline in Discoms

In the realm of government initiatives, the Late Payment Surcharge (LPS) scheme spearheaded by the company has made significant strides. With a sanctioned corpus of 70,500 Cr, an impressive 31,500 Cr has already been disbursed. Notably, this scheme has achieved remarkable success, evidenced by a substantial 50% reduction in legacy dues owed by discoms to generation companies. Moreover, it has facilitated the clearance of current dues, thereby enhancing the financial discipline of discoms. The LPS scheme emerges as a pivotal instrument in fostering fiscal responsibility among discoms.

Revamped Distribution Sector (RDSS): Catalyzing Modernization and Financial Health

On another front, the Revamped Distribution Sector (RDSS) stands as a testament to the company’s commitment to modernizing discoms and fortifying their operational efficiencies and financial health. Aligned with the national electricity plan, which envisions approximately 33 lakh Cr of investments in the power sector by 2032, the RDSS is strategically positioned. As a key player, the company is actively contributing to this vision, ensuring that discoms evolve into robust entities capable of meeting the challenges of the evolving energy landscape. The RDSS is a holistic approach toward the sustainable development of the power sector.

Medium to Long-Term Growth Outlook: Tapping into a Multifaceted Opportunity

Zooming out to assess the broader landscape, the medium to long-term growth outlook reveals a vast opportunity for the company. As per the national electricity plan, a staggering 33 lakh Cr of investments are slated for the power sector by 2032. PFC currently holds the mantle as the largest lender for the renewable sector, having bolstered 25% of the current installed renewable capacity. With an eye on the future, the company anticipates maintaining this significant share in energy transition financing within the power sector. This foresight positions the company as a pivotal player in driving sustainable growth and development.

Striving for 500 Gigawatts by 2030: PFC’s Ambitious Renewable Energy Vision

Looking ahead, PFC is steadfast in its commitment to achieving a monumental milestone – 500 gigawatts by 2030. Currently boasting a formidable 187 gigawatts, the company has already disbursed a substantial 1 lakh Cr in funding to the renewable sector, commanding a noteworthy 25% market share in the current installed renewable capacity. The ambitious pursuit of 500 gigawatts underscores PFC’s pivotal role in steering the renewable energy trajectory. As a stalwart in the sector, the company is poised to play a pivotal role in shaping the future of renewable energy in the country.

Valuation and Key Ratios

Currently company Trading at 1.14x of its book value at Rs 283 per share at current market price 320. PFC’s trailing twelve months ROE and ROCE stand at 20.4% and 9.08%, respectively. The Interest Coverage Ratio at 1.58x reflects the company’s solvency.

Q2FY24 Result Highlights: Standalone

➡️ In Q2Y24, Interest income grew 12.1% YoY (+5.6% QoQ) to 10,692 Cr while interest expenses grew 22.5% YoY (+5.1% QoQ) to 6,963 Cr

➡️ As a result, NII grew 6.4% QoQ but declined 3.1% YoY to 3,729 Cr due to higher cost of funds.

➡️ Other income grew 101.1% YoY and 60x QoQ to 1,096 Cr includes dividend income of 1,074 Cr and fees & commission income of 20.3 Cr.

➡️ PPOP increased by 22.6% YoY (+27.6% QoQ) to 4,686 Cr supported by operating leverage benefit and healthy growth in other income.

➡️ PAT surged 28.3% YoY (+27.9% QoQ) to 3,847 Cr, supported by lower provisions, operating leverage benefit, and robust growth in other income.

➡️ EPS for the quarter stood at 11.6 Rs, a significant improvement from the previous quarter 9.1 Rs and Q2FY23.

conclusion

PFC Ltd demonstrates robust financial performance with significant loan book growth, prudent asset quality management, and strengthened hedging strategies. Despite a margin challenge, the company maintains a healthy capital position. The successful resolution of stressed projects and impressive Q2FY24 results further underscore PFC’s resilience and strategic positioning in the non-deposit-taking NBFC sector.

FB’s Q2FY24 PAT jumps to Rs 954 Cr on lower Provisions

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Adani Group Stocks Rally on SEBI Relief, Investors Watch Pending 22 Orders for Clarity
Business, Equities, Expert Views, Investor Forum, Market News, Markets, Research, Research Reports, Result Updates - November 20, 2023

Adani Wilmar navigated edible oil price fluctuations in Q2FY24, maintaining a balance between volumes and revenue.

Adani Wilmar navigated edible oil price fluctuations in Q2FY24, maintaining a balance between volumes and revenue.

Company Overview:

Adani Wilmar operates in the FMCG sector, focusing primarily on edible oils and food & other FMCG segments. The company also plays a vital role in industry essential segments such as castor, oleo, and de-oiled cake. Well-known brands under the company’s umbrella include Fortune, King’s, Kohinoor, Charminar, Jubilee, etc. As of Q2FY24, the company boasts a direct reach to over 6.5 million outlets, covering 26,500+ rural towns, indicating an aggressive expansion strategy in rural areas for future growth. Adani Wilmar owns 23 manufacturing units and leases 38, with a total refining capacity of 5.5 million tonnes and a food capacity of 0.9 million tonnes per annum.

Market leader in Edible oil – 19.6% market share

As of September 2023, Adani Wilmar holds the highest market share of 19.6% in the edible oil sector, securing a position in the top 3 for all edible oils, including Soyabean, Sunflower, Palm, Mustard, and Ricebran. The company also stands at the second and third positions in wheat flour and basmati rice, with market shares of 5.15% and 7.40%, respectively. Despite a slight dip in basmati rice market share from 9.4% in Q2FY23 to 7.4% in Q2FY24, wheat flour has seen a gain of 15 basis points, reaching 5.15% in Q2FY24.

Volumes were higher YoY for all segments, revenue was impacted by the decline in edible oil prices:

While Q2FY24 witnessed an 11% YoY growth in volumes (with a minor 2% QoQ dip to 1.5 MMT), revenue experienced a 13.3% YoY decline and a 5.1% QoQ decrease, amounting to INR 12,267 Crores. The decline in edible oil prices in Q1FY24 and Q2FY24 contributed to a 19.4% reduction in revenue for the edible oil segment. Despite a 3.7% YoY growth in volumes (and a 4.5% QoQ decline), the edible oil segment revenue reached INR 9,037 Crores. Conversely, the food & FMCG segment saw a 26.4% YoY revenue growth (16.9% QoQ) to INR 1,283 Crores, while the industry essentials segment experienced a 1.7% YoY increase but a 1.9% QoQ decline, reaching INR 1,947 Crores.

Valuation and Key Ratios:

Adani Wilmar is currently trading at a multiple of 206x EPS(TTM) at a market price of INR 291, while the industry PE stands at 33.6x. The company’s trading value is 4.75 times its book value, amounting to INR 61.3 per share. The return on equity is at 7.4%, and the return on capital employed stands at 15%. In the EV/EBITDA multiple, Adani Wilmar holds the third position among top peers, with a multiple of 25.4x. In Q2FY24, the interest coverage ratio stood at 0.22x due to a high debt of INR 220 Crores, indicating lower solvency while EBIT stood at only INR 48 Crores.

Q2FY24 Results Updates: Consolidated

➡️ In Q2FY24, revenue declined by 13.3% YoY (-5.1% QoQ) to INR 12,267 Cr, impacted by a correction in edible oil prices. However, volumes grew by 11% YoY (-2% QoQ) to 1.5 MMT.

➡️ EBITDA witnessed a 10.1% QoQ growth but declined by 43.4% YoY to INR 144 Cr. The EBITDA margin stood at 1.17%, contracting by 62 bps YoY and expanding by 16 bps QoQ.

➡️ Operating Profit (EBIT) grew by 29.9% QoQ but declined by 70.7% YoY to INR 48 Cr. The EBIT margin expanded by 10 bps QoQ but contracted by 77 bps YoY, reaching 0.39%.

➡️ PBT was at INR -172 Cr, impacted by higher interest costs of INR 220 Cr (34.8% YoY/29% QoQ).

➡️ PAT grew by 65.6% QoQ but declined by 368.1% YoY to -INR 130.7 Cr due to poor revenue growth and higher interest costs. Earnings Per Share (EPS) for the quarter stood at -INR 1.01 (PQ -0.61 Rs).

Conclusion:

Adani Wilmar, a prominent player in the FMCG sector, faces challenges with a YoY decline in revenue primarily attributed to the correction in edible oil prices. Despite volume growth and a strong market position in edible oils, the company grapples with higher interest costs impacting profitability. Investors should monitor the company’s efforts to navigate market dynamics and manage debt levels for sustainable growth in the future.

FB’s Q2FY24 PAT jumps to Rs 954 Cr on lower Provisions

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