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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.

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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.

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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%.

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Strategic Consolidation: Emcure to Fully Take Over Zuventus Healthcare
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.

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Aditya Birla Group: Billion-Dollar Fashion Ambition!
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.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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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.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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India, Singapore Sign Landmark Green Shipping & Aviation Pacts
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.

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 Road to Progress: Union Budget 2025 to Accelerate India's Infrastructure Growth
Equities, Markets, Result Updates - August 17, 2022

 Mazagoan Dock profit to soar at new heights

 Mazagoan Dock profit to soar at new heights.

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

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

The government to sell 10% in an OFS:

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

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

Valuations:

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

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TCS Salary Hikes on Hold
Business, Equities, Market News, Markets, Research, Result Updates - August 17, 2022

Greaves cotton limited Q1 FY23 Result Updates. Two-fold jump in revenue; net profit at Rs. 16 crores.

Greaves cotton limited Q1 FY23 Result Updates.
Two-fold jump in revenue; net profit at Rs. 16 crores.

Greaves cotton limited reported a net profit of Rs. 16 crores as compared to a loss of Rs 22.48 crore in Q1 FY22. The net profit margin stood at 2.4%.
The consolidated net sales rose more than two-fold to Rs 660.19 crore in the reporting quarter, up by 188% YoY from Rs 228.97 crore in Q1 FY22 and 6% QoQ.
Segment-wise, revenue from the engine business increased to Rs 346.70 crore during the quarter compared to Rs 196.20 crore, while income from the electric mobility business stood at Rs 281.23 crore against Rs 14.48 crore a year ago.
The company recorded strong year-on-year growth across verticals with new businesses accounting for 56% of the overall top line during the April-June period of FY23. The Company reported improved growth in profit with EBITDA at Rs. 38 crores and an EBITDA margin of 5.8%. The net cash stood at Rs. 1348 crores.

Consistent Growth riding on strong brand traction and improved efficiency.

The retail sales of the EMobility business stood at 29,577 units for this quarter, up by 19 % against Q4FY22.
Ampere increased its market share to 15.5% as of the end of June 2022 and emerged as the No.2 player in the e2W segment. The quarter-on-quarter performance growth is led by the company’s key business milestones such as rolling out the 50,000th Ampere electric scooter from the newly set up Ranipet facility, completion of growth capital infusion with Abdul Jameel Latif’s investment under the Electric Mobility segment, expansion of the multi-brand EV retail stores and higher earnings from the non-auto engine business.
Electric Mobility accounts for 43% of overall revenue. Ampere continues to be one of the fast-growing E-Mobility brands with Y-o-Y growth of 1841%; QoQ growth of 19%. E-Mobility registered sales volumes of 29k units in Q1 FY23.
Non-Auto Engines registered YoY growth of 53%.
Engines business registered YoY growth of 88%; QoQ up 7%. Auto Engines volume grew to 40000 units, highest in the last 5 quarters.
Financial Results reflect the success of Greaves’ Diversification Strategy. The diversification strategy has delivered a consistent growth rate despite market headwinds. Investment in E-Mobility to be utilized for new products, associated technologies, brand building and to enhance manufacturing capacity in E2W / E3W. The contribution of B2C business to the overall business has grown by 52%+ YoY compared to Q1FY22

The shares of Greaves cotton limited are trading at Rs. 174.40, up by 0.84%.

Valuations:

The return on equity (ROE) is -4.59 for the quarter ended June 2022. The return on capital employed (ROCE) for the company is -0.97%. The price to book value of Greaves cotton Limited is 5.32. The EV/EBITDA is 34.2. EPS for the quarter is Rs. 0.14.

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.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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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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