Menu

Business

Dish TV reported a net profit of Rs. 17.85 crores
Business, Equities, Markets, Result Updates - August 19, 2022

Dish TV reported a net profit of Rs. 17.85 crores

Dish TV reported a net profit of Rs. 17.85 crores.

Dish TV India reported a 64.47% drop in net profit to Rs 17.85 crore in June 2022, compared to Rs 50.24 crore in the previous quarter ended June 2021.The firm reported a net loss of Rs 2,031.99 crore in March 2022 on account of exceptional items, which included impairment charges. The total revenues stood at Rs 642.70 crore during the quarter as against Rs 751.75 crore in the corresponding quarter. EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortization) was Rs. 323.8 Cr.Profit before exceptional items and tax (PBT) was at Rs 41.8 crore as against a loss of Rs 199.3 crore in Q4 FY22.

The total expenses were at Rs 607.56 crore, down 36.35% as against Rs 954.57 crore in the March 2022 quarter. The exceptional items in the results include Rs 203 crores as an impairment charge on intangible assets under development (impairment charge on goodwill acquired from Videocon) and related advances, Rs 1,616.9 crore and Rs 717.7 crore, respectively. The firm recognised Rs. 116.3 crores as a forex variation loss due to the ongoing crisis in Sri Lanka.

Consumer preferences can have a significant impact on a company’s profitability:

Dish TV’s subscription revenues stood at Rs 574.8 crore, down by 16.1% as against Rs 685.2 crore in Q4 FY2022. The subscription revenues during the quarter were lower compared to Q1 FY2021, mainly due to volatile viewing habits, the emergence of the third wave of the pandemic, high inflation, and conservative spending. The advertisement revenue was at Rs 14.8 crore, up 14.5% as against Rs 12.9 crore. The revenue from ‘Additional marketing, promotional fees and bandwidth charges’ was at Rs 39 crore as against Rs 36.2 crore in the previous quarter.

Pay-TV consumer sentiment has been fluctuating between being pampered on content and sometimes being prudent with it. Consumers have been pickier than ever. They are often moving between linear and streaming content, and as a result, restarting their subscriptions less regularly. Dish TV customers’ changing tastes and preferences are working towards leveraging these emerging trends. The net pay-TV subscribers decreased by 257,000 in the June 2022 quarter, compared to a net decrease of 67,000 in the June 2021 quarter. The company closed the quarter with 9.99 million subscribers, including 7.79 million DISH TV subscribers and 2.20 million SLING TV subscribers. The retail wireless net subscribers decreased by 210,000 in the June 2022 quarter, compared to a net decrease of 201,000 in June 2021 and with 7.87 million retail wireless subscribers.

Valuations:

The EPS was Rs. 10.2 for the June 2022 quarter. The ROCE was at 24.9%, whereas the ROE was at 41.1%. The EBITDA stood at 1.49x for Q1 FY23. The price to book value was at 2.25x. The price to earnings ratio was at 2.87x, while the 5 year P/E was at -1.45x for Dish TV India. The return on assets was at 9.50% for the same quarter. The shares of Dish TV India Ltd on Friday settled at Rs 11.70 on the BSE, up 0.70% from the previous close.

, , , , 0 Comment
Read More
Dabur Subsidiaries Face Cancer Lawsuits in US and Canada
Business, Equities, Market News, Markets, Research, Result Updates - August 19, 2022

Balaxi Pharmaceuticals Limited Q1 FY23 Result Updates. Strong performance backed by higher revenue and margins.

 

Balaxi Pharmaceuticals Limited Q1 FY23 Result Updates.

Strong performance backed by higher revenue and margins.

 

Balaxi Pharmaceuticals reported a net profit of Rs 14.15 crores, up by 32.1% from Rs. 10.71 crores in June 2021, on the back of strong performance of revenue and higher margins. The net profit margin for the quarter is 17.1%, down by 127 bps.

The strong growth in revenue of Rs. 82.78 crores, up by 41.9% YoY in Q1FY23 from Rs. 58.34 crores in Q1 FY22, driven by the Pharmaceuticals business, with the LATAM share increasing to 38% and strong volume contribution from Latin American markets. The company also derived translation benefits from a strong currency in Angola.  

Earnings before interest, tax, depreciation, and amortization (EBITDA) of Rs 17.03 crores were recorded in Q1 FY23, registering 35.6% growth YoY, despite the cost structures in new geographies incurred ahead of commercial launches in these countries. The EBITDA margin stood at 20.6%, down by 95 bps.

 

Growing Latin American business to strengthen margins.

 

Gross profit stood at Rs. 34.52 crores from Rs. 16.8 crores, up by 105.5% YoY. The gross margin stood at 41.7%, up by 1290 bps. Gross margin expanded significantly, based on the strength of the growing Latin American business and increased contribution from branded products at 35% in Q1. In Latin America, product margins are intrinsically higher, especially for value-added, branded portfolios, a clear area of focus for Balaxi.

The company’s operating cost structure – both people and organizational costs – has increased substantially with the entry into several new markets. This includes establishment and product registration expenses in countries that are not contributing to sales at present. Going forward, as the business scales up, we expect a positive contribution to revenue growth as well as geographical diversification. Balaxi Pharmaceuticals reports continued solid growth in Q1 FY23.

 

The shares of Balaxi Pharmaceuticals Limited are trading at Rs. 440.75, up by 0.55%.

              

Valuations:

 

The return on equity (ROE) is 53.5% for the quarter ended June 2022. The price-to-earning (P/E) ratio stood at 8.62. The company’s return on capital employed (ROCE) is 9.6%. The price to book value of Balaxi Pharmaceuticals Limited is 3.88. The EV/EBITDA is 7.33. EPS for the quarter is Rs. 51.1.

 

 

 

Campus Active Wear Limited Q1 FY23 Result Updates. Net profit surged to Rs. 28.66 crores driven by strong demand.

Linc Pen and Plastics Ltd Q1 FY23 Result Updates. Increase in selling price to improve gross margin.

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

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

, 0 Comment
Read More
Zee5 reported a net profit of Rs. 122 cr. 
Business, Equities, Market News, Markets, Research, Result Updates - August 19, 2022

Shalimar Paints Ltd. Q1 FY23 Result Updates. The crisis of the second wave of COVID-19 and other factors hampered profitability.

Shalimar Paints Ltd. Q1 FY23 Result Updates.

The crisis of the second wave of COVID-19 and other factors hampered profitability.

 

Shalimar Paints Ltd reported a net loss of 19.5 crores on account of the impact of increasing raw material prices. The company had posted a loss of Rs 10.6 crore for the April-June period a year ago.

The company has reported revenue of Rs. 109.9 crores from Rs. 105.5 in the previous quarter, growth of 4% QoQ, i.e., Q4 FY22 and 69% YoY at Rs. 65.2 crores from Q1 FY22. The company has recorded the highest sales in Q1 Vs Q1 YoY in the last 8 years. During this quarter company has grown by 22% in a decorative segment from the previous quarter, i.e., Q4 F22. During this quarter, the company has grown in the water base segment by 15% the previous year’s Q1 F22. In the coming quarters looking at the raw material trend, the company will decide on the future pricing strategy.

The earnings before interest, tax, depreciation, and amortization (EBITDA) stood at Rs. (1.8) crores as compared to 2.3 crores in the previous quarter and Rs. (8.8) crores in Q1 FY22.

The company has witnessed a disruption that had a devasting impact on the company’s performance. Despite the initial phase of reopening of the economy, the unforeseen challenges & crisis of the second wave of COVID-19 hit the pause button again.
Moreover, commodity prices too witnessed an unprecedented surge.
The company has felt the impact of increasing raw material costs over the past few quarters. Also, there has been some disruption in transport facilities leading to an increase in the freight cost. These all factors have impacted our profitability. The pandemic also brought about certain fundamental shifts in the industry.

An increase in prices of raw materials affected the performance.

 

 Over the last few quarters, raw material prices have seen an increasing trend, which has contracted the Gross profit impacting the overall profitability of the company. The prices of key raw materials have increased as compared to the previous quarter’s slide on the back of a steep inflationary trend and a sharp increase in commodity prices across the globe. The company was able to absorb the increased cost by passing on the cost to the EBIT consumers through an increase in average selling prices. However, due to competitive intensity need to absorb few costs internally impacting the margins of the company. The company is continuously working on improving its product mix within the segments, which will eventually help to reduce the impact of the increase in raw material costs on the company’s profitability. The company has maintained the fixed cost at the previous year’s level, however marginal is due to secondary freight on account of an increase in fuel prices.

 

The shares of Shalimar Paints Ltd. are trading at Rs. 165.30, up by 1.54%.

               

Valuations:

 

The return on equity (ROE) is -18% for the quarter ended June 2022. The return on capital employed (ROCE) for the company is -7.19%. The price to book value of Shalimar Paints Ltd. is 3.24. The EV/EBITDA is -108. EPS for the quarter is Rs. -9.

 

 

 

Campus Active Wear Limited Q1 FY23 Result Updates. Net profit surged to Rs. 28.66 crores driven by strong demand.

Linc Pen and Plastics Ltd Q1 FY23 Result Updates. Increase in selling price to improve gross margin.

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

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

, 0 Comment
Read More
Dalmia Bharat Reports Disappointing Q3 Results, Sees Limited Short-Term Growth
Business, Equities, Markets, Research, Research Reports - August 19, 2022

JK Cement to report a net profit of Rs. 163 crores.

JK Cement to report a net profit of Rs. 163 crores.

The company has reported sales of Rs. 2270 crores during the period ended June 2022, as compared to Rs. 2351 crores during the period ended March 2022. The company has posted a net profit of Rs. 163 crores for the period ended June 30, 2022, as against a net profit of Rs. 201 crores for the period ended March 31, 2022. The company has an EPS of Rs. 21.06 for the period ended June 30, 2022 as compared to Rs. 26.03 for the period ended March 31, 2022. The margins are at 17.7% in Q1 FY23 versus 23.5% in Q1 FY22.

Margin expansion at a low cost:

Grey cement volume fell 10% QoQ to 0.31 Cr. MT. The total sales stood at 86% vs. 75% YoY. The volume of putty increased 38% year on year to 5 lakhs. With a QoQ increase in the sales share of putty, blended Net Sales Realization (NSR) firmed up 6% QoQ and rose 7% YOY. The total Opex was up a modest 4% QoQ, mainly on a loss in grey cement and on lower fuel inflation. Thus, blended unitary EBITDA rebounded 16% QoQ to INR 1,101 per MT. The margin for both grey and white segments expanded by 100/250bps QoQ to 17/20% and 20%, respectively, implying EBITDA of INR 900/MT. The UAE subsidiary’s revenue went up 28% YoY to INR 100Cr. As JK Cement split the useful life of its cement power plants into 15-20 year periods, depreciation expense went up 16% QoQ.

 In Q1FY23, healthy pricing recovery in the northern regions, subdued fuel cost inflation, and low cost inventory benefits increased blended unitary EBITDA by 16% QoQ to INR 1,101 per MT as margins in both the grey and putty segments rebounded. While consolidated revenue rose 32% year over year, EBITDA came in flat. JKCE’s central expansion of 4 million MT is on track by Q4FY23. The company plans to further add 6 million MT of grey cement capacity in the central and northern regions by the end of FY25 to brace its distribution reach.

Valuations:

 The stock P/E for JK cement is at 32.5x. With a five-year P/E of 24.8x, the EPS stood at Rs. 85.1. The return on capital employed was 16.6% and the return on equity was 17.4%. The EBITDA was recorded at 15.4x. The ROA was at 6.57% and the price to book ratio was at 4.90x. The scrip closed at Rs. 2736, up by 1.36%.

, , , , 0 Comment
Read More
Nippon Steel's $14B U.S. Steel Deal Raises Concerns
Business, Equities, Research - August 18, 2022

Shares of Hindalco tanked even after good results.

Shares of Hindalco tanked even after good results.

Hindalco reported an all-time high quarterly consolidated net profit for June 2022 at 4,119 crores, up 48% from the year-ago quarter of Rs.2784 crores. Its consolidated revenue rose to 58,018 crores as against 41,358 crores, up 40% YoY. The company reported an all-time high EBITDA of 8,640 crores, which was up 27% from the year ago quarter of 6,790 crores. Meanwhile, its net debt to EBITDA remained strong at 1.40x in Q1 FY23 compared to 2.36x in Q1 FY22.

The main reason for the downtrend

India’s aluminum cost increase of 17% from quarter to quarter was offset in the past quarter. Many investors expect the cumulative impact of inflation to show in Q2 FY23 EBITDA for the aluminium business. The net debt also increased by Rs. 3100 crores from quarter to quarter to Rs. 42200 crores. The stress is on account of compressing scrap, the impending housing sector downturn, and recent Ball Corp with the inflation-weakening demand for cans in North America.

The high margins and significant release of working capital as a result of falling aluminum prices would generate cash flow for Novelis in FY23.While India’s operation’s earnings would be under stress in the near term due to a fall in LME (London Metal Exchange) and high energy costs. We expect it to recover in Q3Y22 and onwards on the back of the restoration of coal supplies by Coal India NSE 0.14 % and stable LME.

The company believed the results were driven by an excellent performance by Novelis and strong performances by Aluminium Downstream and Copper businesses, supported by operational efficiencies and higher volumes. FuThe EBITDA and EBITDA per ton were high, mainly due to higher product pricing, favourable product mix, and recycling benefits. Seeing ahead, the main focus is on riding all market cycles with a greener, stronger, smarter approach.

The performance was backed by strong operational efficiencies and preemptive sourcing of critical raw materials, thus ensuring stable operations and higher margins. The business model supports their position as an integrated aluminium producer with the best EBITDA margins.

After delivering record profitability in the fourth quarter, they have delivered an even stronger first quarter despite rising input costs and inflationary pressures. The performance was because of operational efficiencies and cost-efficient sourcing of critical raw materials.

Valuations:

The EPS was at Rs.67.0 for June 2022. The Return on capital employed was at 16.2% and Return on Equity reported was at 18.5%. EVEBITDA stood at 4.57x for Q1 FY23 quarter. Price to book value was at 1.26x, whereas Return on Asset was at 6.52%. The shares of Hindalco were trading at Rs.435 down by 0.90% on Thursday.

, , , 0 Comment
Read More
Natco Pharma Shares Tumble After USFDA Concerns
Business, Equities, Market News, Markets, Research, Result Updates - August 18, 2022

Marksans Pharma Ltd Q1 FY23 Result Updates. Robust growth in revenue driven by strong volume growth.

Marksans Pharma Ltd Q1 FY23 Result Updates.
Robust growth in revenue driven by strong volume growth.

Marksans Pharma Ltd reported a net profit of Rs. 60.2 crores as compared to Rs. 62.6 crores in Q1 FY22, which declined by 3.9% YoY.
Operating revenue was Rs. 433.8 crores compared to Rs. 348.9 crores in Q1FY22, growing by 24.3% driven by strong volume growth in existing products and new launches in the US & UK. US business grew by 25.7%. Pricing erosion in the US continued in the high single digit during the quarter impacting the Generic Rx business. The UK and Europe grew by 13.7%. Over 94% of revenues are from the regulated markets- USA, Europe, Australia & Canada.
Profit before tax stood at Rs. 76.4 crores, growing by 2.2%.
Total R&D Expenditure was Rs. 8.9 crores, constituting 2% of revenue.
The cash balance for the June quarter stands at Rs. 339 crores.

Input cost pressure hampers the margins.

Gross profit during the quarter was Rs 218.9 crores from Rs. 186.7 crores in June 2021, growing by 17.3% YoY. Gross margin at 50.5% up 110bps QoQ but down 300bps YoY.
Earnings before interest, tax, depreciation and amortization (EBITDA) was Rs. 72.9 crores from Rs. 77.3 crores in June 2021, declining by 5.8% with an EBITDA margin of 16.8%, on account of an increase in costs of material, freight costs, and pricing pressure in the US.
The net profit margin stood at 13.4% down by 428 bps YoY.
During the quarter, the input cost pressures continued to build up, adversely impacting the margins. The company has started passing on the price increase to their customers.

US & North America Formulation business reported growth of 26% YoY to Rs. 173.9 Crores in Q1FY23. 32 products are in the pipeline, of which 20 are oral solids and 12 are ointments and creams. Within oral solids, 4 are soft gels.
UK and Europe Market business recorded revenue of Rs. 181 crores in Q1FY23 as compared to Rs. 159.2 crores during last year, registering a growth of 14%. Planned 34 new filings over the next three years, of which 7 are planned in FY23. In addition, 16 products are already filed and awaiting approval.
Australia and New Zealand business reported growth of 38% YoY to Rs. 52.6 Crores in Q1FY23. 10 products are in the pipeline and expected to be launched over the next two years.
RoW business doubled to Rs. 26.3 Cr. in Q1FY23.

The shares of Marksans Pharma Ltd are trading at Rs. 52.65, down by 0.38%.

Valuations:

The return on equity (ROE) is 17.9% for the quarter ended June 2022. The price-to-earning (P/E) ratio stood at 11.6. The return on capital employed (ROCE) for the company is 22.9%. The price to book value of Marksans Pharma Ltd is 1.78. The EV/EBITDA is 6.19. EPS for the quarter is Rs. 4.50.

 

Campus Active Wear Limited Q1 FY23 Result Updates. Net profit surged to Rs. 28.66 crores driven by strong demand.

Linc Pen and Plastics Ltd Q1 FY23 Result Updates. Increase in selling price to improve gross margin.

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

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

, 0 Comment
Read More
Reasons behind forced apparel discounts
Business, Equities, Market News, Markets, Research, Result Updates - August 18, 2022

Campus Active Wear Limited Q1 FY23 Result Updates. Net profit surged to Rs. 28.66 crores driven by strong demand.

Campus Active Wear Limited Q1 FY23 Result Updates.
Net profit surged to Rs. 28.66 crores driven by strong demand.

Campus Active Wear Limited reported a net profit of Rs. 28.66 crores as compared to Rs. 1.98 crores in Q1 FY22. Sequentially, PAT grew 13.5x times YoY. PAT margins expanded by 703 bps YoY to 8.5% in Q1 FY23.

Revenue from operations surged 149.6% to Rs 337.71 crore in the quarter ended 30 June 2022 as against Rs 135.30 crore in the quarter ended 30 June 2021 supported by strong demand from across segments coupled with a robust omnichannel presence. Both Trade Distribution and Direct-to-Customer channels have demonstrated robust Y-o-Y growth to the tune of 147% and 150% respectively.

EBITDA witnessed a strong growth of 287.5% YoY to INR 622.4 Mn; EBITDA margins expanded by 656 bps YoY to 18.4% in Q1 FY23.
EBITDA was at INR 622.4 mm as compared to INR 160.6 mm in Q1 FY22. EBITDA margin stood at 18.4% in Q1 FY23 (vs. 11.9% in Q1 FY22) owing to better operating leverage.
Profit before tax soared to Rs 42.13 crore in Q1 FY23 as compared to Rs 0.79 crores reported in Q1 FY22.
Total expenses jumped 118.27% YoY to Rs 296.13 crore in the quarter ended 30 June 2022. Cost of materials consumed stood at Rs 201.62 crore (up 104.8% YoY) and employee benefits expense was at Rs 47.23 crore in Q1 FY23.

TTM Q1FY23 Results – Consolidated Revenue from operations increased by 16.9% YoY to INR 13,965.9 mm in TTMQ1FY23 as compared to FY22 full-year revenue at INR 1,1941.8 mm. TTM Q1FY23 EBITDA stood at INR 2,901.0 mm as compared to FY22 Full year EBITDA at INR 2,439.2 mm, demonstrating 18.9% YoY growth. . TTM Q1FY23 EBITDA margin stood at 20.8% vs. 20.4% in FY22. Net Profit during TTM Q1FY23 stood at INR 1,510.9 mm (PAT margin: 10.8%) as against PAT of INR 1,244.1 mm in FY22 (PAT margin: 10.4%).

The strong performance is led by a robust product portfolio.

The sales volume stood at 5.6 million pairs in Q1FY23 as against 2.3 million pairs in Q1FY22, thereby registering 141.0% YoY volume growth. Campus Activewear’s ASP stood at Rs. 597 in Q1FY23 vis-à-vis Rs. 580 in Q1FY22, registering c.3%growth on a YoY basis.

This performance was largely supported by a robust product portfolio of fashion-forward designs, the best product value proposition, and a never-out-of-stock approach. The Company’s strong brand recall amongst preferred sports and athleisure footwear brands positions the company uniquely to garner a wider share of the market.

The shares of Campus Active Wear Limited are trading at Rs. 433.80, up by 2.60%.

Valuations:

The return on equity (ROE) is 32.9% for the quarter ended June 2022. The price-to-earning (P/E) ratio stood at 106. The return on capital employed (ROCE) for the company is 31.2%. The price to book value Campus Active Wear Limited is 29.7. The EV/EBITDA is 55.4. EPS for the quarter is Rs. 4.11.

Lumax recorded its biggest ever profit.

 

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

 

J B Chemicals and Pharmaceuticals Limited  Q1 FY23 Result Updates. Higher treasury income and other costs hamper net profit.

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

, 0 Comment
Read More
Hindalco Industries plans to invest Rs. 15,000 crore in Madhya Pradesh
Business, Equities, Result Updates - August 18, 2022

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.

, , , , 0 Comment
Read More
India's Insurance Sector Booms Amid Rising Demand
Business, Equities, Market News, Markets, Research, Result Updates - August 17, 2022

Linc Pen and Plastics Ltd Q1 FY23 Result Updates. Increase in selling price to improve gross margin.

Linc Pen and Plastics Ltd Q1 FY23 Result Updates.
Increase in selling price to improve gross margin.

Linc Pen and Plastics Ltd reported a net profit of Rs. 4.38 crores as compared to the loss of Rs. 1.22 crores in Q1 FY22.
Revenue displayed strong growth and the income for Q1 FY 23 amounted to Rs. 99.26 crores as against Rs. 55.53 crores in Q1 FY 21, cloaking a YoY growth of over 78%. However, the first quarter being traditionally a weaker quarter for the industry as such, income fell by over 11% sequentially.
While the company continued to witness an increase in input costs during the quarter, the company was able to pass on the raw material price increases, as they increased the selling price of the finished products from April 2022. This resulted in improved gross margin, which increased from 22.9% in Q4 FY22 to 25.4% in Q1 FY23.
EBIDTA margin also improved to 9.5% and was up 631 basis points YOY and 277 basis points QoQ in spite of higher RM costs; largely due to increased selling price and relatively lower marketing & new customer acquisition costs.
Commodity prices have started to soften, and prices of key inputs are expected to remain benign in the coming quarters as the focus of central banks has shifted to containing inflation. This along with the continued focus on higher-margin products helped to improve margins and profitability.
Share of ‘Pentonic’ increased to 29.3% in Q1 FY23 as against 25.5% in FY22. The Gross Profit stood at Rs. 2,487 Lacs, up 100.7% YoY & down 1.9% QoQ. Gross Margin was at 25.4%. The earnings before interest, tax, depreciation, and amortization ( EBITDA) during the quarter are Rs. 931 Lacs, up 428% YoY & 25% QoQ. EBITDA Margin was at 9.5%.

Robust growth in revenue led by an increase in Pentonic sales.

Operating EBITDA was up 486.6% YoY at Rs.7.99 crores and Margin stood at 8.2%. Operating EBITDA Margin increased 569 basis points YoY ‘Pentonic’ Sales continued to grow and was over 29% of total revenue for Q1 FY 23.’Pentonic’s’ GPM is 40% and there is a significant increase in the revenue share of ‘Pentonic’ over the last 4 years. Hence, the overall GPM of the Company has increased by 350 basis points. There is a consistent increase in the average selling price.

With the Covid-induced restrictions behind the company, the revenue has been displaying strong growth. Operating Income stood at Rs. 97.94 crores, a growth of 77.7% over the previous year. This resulted in improved gross margin, which increased from 22.9% in Q4 FY22 to 25.4% in Q1 FY23. Operating EBIDTA margin also improved to 8.2% and was up 569 basis points YOY and 288 basis points QoQ. The company’s touchpoints continue to increase with another 12,103 added in this quarter.

The shares of Linc Pen and Plastics Ltd are trading at Rs. 289.25, down by 0.79%.

Valuations:

The return on equity (ROE) is 5.99% for the quarter ended June 2022. The price-to-earning (P/E) ratio stood at 31.4. The return on capital employed (ROCE) for the company is 8.15%. The price to book value Linc Pen and Plastics Ltdis 3.03. The EV/EBITDA is 13.6. EPS stood at Rs. 2.95 in Q1 FY23 vs (Rs.0.82) in the same period last year. Net Debt/Equity stood at (0.03) against 0.02 in FY 22 and Net Debt/Operating EBITDA stood at (0.15) against 0.13 in FY22. Net Debt reduced by Rs. 7.76 crores from 31st March 2022 and stood at (Rs. 4.86) crores as against Rs. 2.90 crores in FY 22.

Lumax recorded its biggest ever profit.

 

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

 

J B Chemicals and Pharmaceuticals Limited  Q1 FY23 Result Updates. Higher treasury income and other costs hamper net profit.

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

, 0 Comment
Read More
India’s Toy Manufacturing Industry: A New Frontier in Global Trade
Business, Equities, Markets, Result Updates - August 17, 2022

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.

, , , , 0 Comment
Read More