Menu

Research

Easing of risk weights on loans given to MFIs and NBFCs
Banking, Editorials, Equities, Markets, Result Updates - August 24, 2022

DCB Bank’s (DCBB) Q1 FY23 earnings

DCB Bank’s (DCBB) Q1 FY23 earnings:

The PAT for DCB bank was at Rs. 97 cr. in comparison to Rs. 34 cr. from the same quarter a year ago, with a growth of 188%. Total revenue in the June quarter was Rs. 949 Cr., compared to Rs. 920 Cr. in March 2021 and Rs. 846 Cr. in June 2021. There was an 18% growth in advances YOY and a 14% growth in deposits. The Gross NPA as on June 2022 was at 4.21% while the Net NPA was at 1.82 qoq as on June 2022. Both Gross NPA and Net NPA declined sequentially as well as in comparison to last year.

Ratios to improve in the June quarter:

The Provision Coverage Ratio (PCR) was at 69.480 and the PCR without considering Gold Loans NPAs was at 73.39%. The Capital Adequacy Ratio was at 18.47%, with Tier I at 15.44% and Tier ll at 3.03% as per norms. The CASA (Current Account Savings Account) ratio was at 29% in the June quarter compared to 27% in the previous quarter. The savings account balances between 2 lakh and less than 5 lakh rupees had an interest rate of 5.00%, while balances between 5 lakh and less than 10 lakh rupees had an interest rate of 6.00%. On savings account balances between 10 lakh and less than 25 lakh, there is an interest rate of 6.75%. DCB Bank has given a maximum interest rate of 7% on savings account balances between 25 lakh and less than 2 crore. Savings accounts with balances of between 2 crore and less than 50 crore will now earn interest at a rate of 5.50%, while accounts with balances of over 50 crore will now earn interest at a rate of 5.00%.

Due to lower credit costs and better loan growth, gross slippages continued to remain elevated, mainly stemming from the gold portfolio, largely offset by higher recovery and upgrades, resulting in a GNPA of 4.3%. The stress pool continues to remain sticky, but the management expects improving collection efficiency to reflect in better asset quality on the back of a granular and secured portfolio of approximately 95%. With asset quality still stubborn and loan growth looking soft, there is less room for any positive surprise from operating efficiency.

Valuations:

The price to book ratio stood at 0.64x. The return on assets was 0.68%. The interest coverage ratio was 1.22x for June 2021. The return on capital employed was at 6.30% while the return on equity was at 7.37%. The EBITDA was recorded at 14.0x. The (CAR) capital adequacy ratio continues to be strong at 18.47%. The scrip was trading at Rs. 83.1, down by 0.54% on Wednesday.

, , , , 0 Comment
Read More
D-Mart's Q3 Results Miss Estimates, Faces Margin Pressure and Leadership Change
Business, Equities, Market News, Markets, Research, Result Updates - August 24, 2022

Britannia Industries Limited Q1 FY23 Result Updates. Net profit growth driven by increase in prices.

Britannia Industries Limited Q1 FY23 Result Updates.
Net profit growth driven by increase in prices.

Britannia Industries Limited reported a net profit of Rs. 337.4 crores, declined by 11.2% YoY from Rs. 389.6 crores and sequentially fell by 11.2% QoQ from Rs. 379.9 crores in the previous quarter. The net profit margin stood at 9.1%, declined by 158 bps QoQ and 233 bps YoY.
The revenue for the June quarter stood at Rs. 3701 crores, up by 8.7% YoY from Rs. 3403.5 crores and increased by 4.2% QoQ from Rs. 3550.5 crores.
The Earnings before interest, tax, depreciation, and amortization stood at Rs. 500.7 crores from Rs. 553.8 crores down by 9.6% YoY and from Rs. 549.7 crores down by 8.9% QoQ. The EBITDA margin is 13.5%, down by 195 bps QoQ and 274 bps YoY.

Commodity cost inflation impact margins.

Volume decline YoY has been in small single digit in Q1FY23, while total price increase would be over 20.0% YoY. Number of packages sold was flat. Biscuits being the cheapest form of snacking has relatively fared better, which has helped the company in not seeing a big drop in the topline. Despite the price increases, the company has not seen any big impact on the volumes. It has seen good traction in urban as well as rural markets. The growth in premium categories is faster than the bottom of the pyramid. Britannia’s adjacent businesses have continued to perform well in Q1FY23. Cakes have grown in double-digit in volume as well as value terms. Dairy business has also seen double-digit growth in the quarter with “Winkin Cow” growing at 140.0% YoY. Britannia has consistently gained market share over the last 36 quarters. Market share gain was better in rural than urban, as Britannia further expanded its rural reach which now stands at 27,000 rural preferred dealers.

Commodities such as Wheat & Industrial fuel witnessed sequential inflation in the range of 15.0% to 20.0% in Q1FY23. To mitigate the impact of cost inflation, Britannia has taken continuous price increases in Q1FY23 as well as Q2FY23. It has also accelerated its cost efficiency programs and plans to deliver cost savings to the tune of 3.0% of revenue in FY23. Softening of commodity prices and full effect of the price increases taken by Britannia should result in margin improvement in coming quarters.

Q1FY23 had consumer food price inflation of 8.0% YoY. By 30th June 2022, wheat inflation has come down to 50.0%. Similarly, for palm oil, on the same base of Q3FY21, inflation for Q4FY22 / Q1FY23 was 80.0%/ 90.0% respectively, which came down to 50.0% by 30th June 2022. Other key raw materials such as industrial fuel and packing material also saw QoQ jump in inflation in Q1FY23. To mitigate the cost inflation, Britannia has taken price increases. Britannia has seen market share gains consistently over last 36 quarters and seeing good performance in rural India as well. Britannia is seeing good traction in Adjacent businesses with double-digit volume & value growth in cakes, profitable growth in breads, double digit growth in dairy, national scale up for croissants, and good performance in international markets. In the domestic business, currently the contribution of biscuits and bakery adjacencies is 80%: 20% respectively. Cost efficiency efforts in Q1FY23 were on the lines of reduction in distance to market, improvement in truck utilization, reduction in power costs, and reduction in market returns.

The shares of Britannia Industries Limited are trading at Rs. 3639, down by 1.01%.

Valuations:

The return on equity (ROE) is 49.7% for the quarter ended June 2022. The price-to-earning (P/E) ratio stood at 59.8. The return on capital employed (ROCE) for the company is 41.5%. The price to book value of Britannia Industries Limited is 34.2. The EV/EBITDA is 38. EPS during the quarter came at Rs. 61.1.

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
Everest Kanto reported a total revenue of Rs. 380 Cr.
Business, Editorials, Equities, Result Updates - August 24, 2022

Insecticide India reports a net profit of Rs. 38 Cr.

Insecticide India reports a net profit of Rs. 38 Cr.

In the June quarter, Insecticide India reported total sales of Rs. 561 Cr. The company’s net profit stood at Rs 38 crores as compared to Rs 22 crores in the March quarter. EBITDA was 66 crores in Q1 FY23, compared to 42 crores in Q4 FY22 and 61 crores in Q1 FY22, with EBITDA margins contracting to 90 basis points. In the first quarter of FY23, B2C, B2B, and exports contributed 66%, 29%, and 5%, respectively. The better product mix, coupled with price hikes in the recent past, led to a gross margin improvement of 70bps. The Institutional (B2B) category grew by +30% YoY in 1Q.

New launches to increase demand:

Insecticide India has launched 3 new products in 1Q and intends to launch another 6 products in FY23E. There is a CAPEX of Rs1.1bn largely behind, and the technical synthesis plant is to commence at the end of the year. Going forward, we expect the business to pick up with new launches, a better margin profile of in-licensing, the inauguration of new capacities, and backward integration projects. The management expects double-digit revenue growth with at least 100 bps improvements in margins to be led by better contributions from new product launches and superior product mix in FY23E.

In 1Q FY23, the ITI (innovation turnover index) index was at 12.2%. They have recently received four patents for fungicides and pesticides, with a few more patents to be granted in the subsequent quarters. The company launched 3 new products in 1QFY23: Torry (Maize herbicide), Sargent Xpress (insecticide), and Himax (non-selective weedicide). While the revenues from the recently launched products in FY22-Hachiman, Oxim, and Shinwa grew 3x in 1QFY23. There has been a marginal increase in the CAPEX budget on account of inflationary costs and non-budgeted incidental expenditures. The technical synthesis plant at Dahej is expected to commence operations by the end of 1HFY23. We expect similar growth momentum in FY24. However, the company lowered export revenue guidance by 25% to Rs. 150 crore.

Valuation:

The EPS  stood at Rs.54.0, while the stock is trading at a P/E of 18.5X. The 5-year P/E stood at 11.2x. The EBITDA was at 11.6x and the interest coverage ratio was at 25.7x. The ROCE was at 16% and the ROE was at 12.7%. The scrip closed at Rs.1000, down by 1.06% on Tuesday.

 

 

, , 0 Comment
Read More
Krishna Institute reported a net profit of Rs. 79 Cr.
Business, Equities, Market News, Markets, Research, Result Updates - August 24, 2022

Apollo Hospitals Enterprise Ltd Q1 FY23 Result Updates. Strong revenue growth in hospitals business.

 

Apollo Hospitals Enterprise Ltd Q1 FY23 Result Updates.
Strong revenue growth in hospitals business.

Apollo Hospitals Enterprise Ltd reported net profit of Rs. 223.78 crores, down by 35.2% YoY from Rs. 500 crores in June 2021.
Consolidated revenue from operations during the quarter under review stood at Rs 3,795.6 crore as against Rs 3,760.21 crore in the year-ago period

Total expenses during the quarter were higher at Rs 3,545.36 crore as compared to Rs 3,475.58 crore.

Apollo reported subdued set of numbers for Q1FY23. While on a YoY basis the growth was flat, however on QoQ basis there was growth of 7%.

Higher expenses to hamper margins.

EBITDA margin for Q1FY23 decreased by 90 bps YoY respectively. EBITDA margin stood at 12.9%. Occupancy across the group was 60% in Q1FY23. ARPOB (excluding vaccination) was Rs 51,999 in Q1FY23 as compared to Rs 41,102 in Q1FY22 registering growth of 27%. ALOS for Q1FY23 was 3.38 days. During the quarter, Healthcare services posted an EBITDA margin of 23.9%, Pharmacy has margin of -1.6% (after adjusting for 24×7 operating costs) and AHLL—10%. Inpatient Volumes across the group increased by 9% from 115,902 in Q4FY22 to 126,511
The combined pharmacy business degrew by 1% YoY. The private label sales in the Pharmacy Distribution business was 10.3% during the quarter. Apollo 24/7 had a GMV of Rs 215 cr in Q1FY2023 and the company is on track to deliver GMV of 1500 cr in FY22-23. For Apollo 24/7, number of orders are 35k per day as compared to 25k in Mar Q1FY22.
AHLL showed very impressive topline growth and the margins have also improved on a YoY basis. Lot many collection centres in the diagnostics vertical have been added during this period and home collection has also improved. The diagnostics business within AHLL degrew by 5% over Q1FY22. Expansion of network and phlebotomist count continues. B2C segment is now contributing to 55% of revenue. After 3 years the contribution is expected to rise to 60%. Rs 1000 cr revenue. Despite lower vaccine sales, revival in primary and secondary care, along with continued strong performance in diagnostics led to AHLL EBITDA of Rs 294 mn.
Q1FY23 saw increase in Average revenue per occupied bed (ARPOB)s for the mature and new hospitals of Apollo. The proportion of local patients being treated in Apollo Hospitals continued to improve. There has been an improvement in EBITDA margins of new and existing hospitals both on a YoY and QoQ basis. The management is guiding for robust mid-teens growth and 20% yoy growth in hospitals and pharmacies respectively, in FY23. For hospitals, the management is also guiding for margin expansion of 150- 200 bps yoy in FY23, led by improved mix and cost optimization. IP Volumes across the group grew by 9% QoQ. Mature hospital volumes grew 13% QoQ, while new hospitals volumes grew by 1% QoQ in Q1FY23. Diagnostics and Primary care are being ramped up in AHLL (Apollo Health and Lifestyle Limited). The Diagnostics sub segment registered a degrowth of 23%YoY during the quarter due to high base of Covid. Gross margins at a consolidated level have improved because of less Covid contribution.
The shares of Apollo Hospitals Enterprise Ltd
are trading at Rs. 4059.50, up by 1.46%.

Valuations:

The return on equity (ROE) is 16.6% for the quarter ended June 2022. The price-to-earning (P/E) ratio stood at 66.4. The return on capital employed (ROCE) for the company is 17.8%. The price to book value of Apollo Hospitals Enterprise Ltd
is 10.4. The EV/EBITDA is 27.7. EPS during the quarter came at Rs. 61.4

, 0 Comment
Read More
Dalmia Bharat Reports Disappointing Q3 Results, Sees Limited Short-Term Growth
Business, Equities, Market News, Markets, Research, Result Updates - August 23, 2022

Emmbi Industries Ltd Q1 FY23 Result Updates. Weak performance in domestic market hampered revenue.

Emmbi Industries Ltd Q1 FY23 Result Updates.
Weak performance in domestic market hampered revenue.

Emmbi Industries Ltd reported a net profit of Rs. 3 crores, declined by 32.3% YoY from Rs. 4.5 crores and 34% QoQ from Rs. 4.6 crores. Net profit margin contracted by 143 bps YoY and 134 bps QoQ to 2.9%.
In Q1FY23, Emmbi’s revenue grew 1.6% YoY to Rs. 105.8 crores from Rs. 104.2 crores. Though on QoQ basis revenues declined by 3.0% from Rs. 109.1 crores.
Earnings before interest, tax, depreciation, and amortization ( EBITDA) has seen a decline of 4.7% YoY from Rs. 11.1 crores and 17.3% QoQ from Rs. 12.8 crores to Rs. 10.6 crores. The fall in EBITDA was due to higher other expenses, which increased 44.1% YoY to Rs. 25.1 crores for the quarter. EBITDA margin also contracted by 66 bps YoY and 173 bps QoQ to 10
Emmbi is embarking on the path to become a zero-waste company by FY23. The company is right on track for the same and is confident to reach the ambitious target.
Muted revenue growth on account of subdued domestic market performance In Q1FY23, Emmbi’s revenue saw a muted growth of 1.6% YoY to Rs. 105.8 crores, on account of subdued performance in its domestic market. Sequentially revenues declined by 3.0% QoQ on a high base of last quarter.
Emmbi is witnessing strong traction in its export market. The company has a robust export order book. Emmbi launched the Reclaim30 range products, to cater to the UK’s new plastic packaging tax. Reclaim30 is Emmbi’s range of sustainable plastic packaging, which uses 30%+ recycled polypropylene. The product which was launched last year is now a commercial success. New trials are now successful to produce some of the Avana Retail Range of products. This will be very pathbreaking innovation for the company. The company is now working on designing products with higher content of rPP.

Higher input costs impacted margin.

The fall in EBITDA was due to higher other expenses, which increased 44.1% YoY to Rs. 25.1 crores for the quarter. Higher freight costs which were included in other expenses has jacked up the other expenses figure for the quarter. EBITDA margin also contracted by 66 bps YoY and 173 bps QoQ to 10%. Higher interest costs (+14.6% YoY) and depreciation expenses (+17.2% YoY) impacted PAT. PAT margin also suffered a contraction of 143 bps YoY/134 bps QoQ to 2.9%.

The shares of Emmbi Industries Ltd are trading at Rs. 97.70, up by 0.36%.

Valuations:

The return on equity (ROE) is 13.2% for the quarter ended June 2022. The price-to-earning (P/E) ratio stood at 9.72. The return on capital employed (ROCE) for the company is 14.2%. The price to book value of Emmbi Industries Ltd is 11.2. The EV/EBITDA is 6.45. EPS during the quarter came at Rs. 9.94. %.

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
BKT announced a net profit of Rs. 306 crores in Q1 FY23.
Equities, Markets, Result Updates - August 23, 2022

BKT announced a net profit of Rs. 306 crores in Q1 FY23.

BKT announced a net profit of Rs. 306 crores in Q1 FY23.

In June 2022, net sales were Rs 2,619.43 crore, up 45.29% from Rs 1,802.87 crore in June 2021, and consolidated total income was Rs 2483.58 crore, up 15.04% from the previous quarter. The net profit was at Rs. 306.96 crores in June 2022, down 7.14% from Rs. 330.56 crores in June 2021. The company’s reported earnings before interest, taxes, depreciation, and amortisation (Ebitda) margins were down 550 basis points (bps) quarter-on-quarter (QoQ) and 910 bps year-on-year (YoY) to 20.1 percent.

BKT tyres are experiencing a sustained increase in demand.

Raw materials prices have remained at elevated levels during the current quarter. The raw material costs have come to 46.6% of sales in Q1FY23 as against 42.8% in Q1FY22 and 45.3% in Q4FY22. The management expects the ease in raw material prices to be visible from Q4FY23 onwards. It also expects relief in logistics towards the end of Q3 or early Q4. There is a continued and sustained uptick in demand for tires. However, in Q2, it is expected to have sluggish demand given macro challenges in Europe coupled with heat waves and inflationary trends in the USA. However, the management retained its sales volume guidance of 3.2-3.3 lakh tonnes for FY23.

Balkrishna Industries’ margin performance was the real constraint. Gross margin erosion was sharp at 150 bps QoQ, while other expenses (driven by higher freight costs) were up 210 bps QoQ. The management commentary suggests Q2FY23 will be weak amidst sluggish demand prospects in Europe and the US. BKT’s key product range comprises specialty tires, commonly known as “Off-Highway Tires” or OHT, that cater to agriculture, industrial, construction, earthmoving, mining, port, lawn and garden, and all-terrain vehicle tires. Besides, the company’s carbon black product is used captively and the balance is sold in the markets.

Tires are a highly technical and capital-intensive segment, also known as the “large variety, low volume segment.” The credible players are required to maintain a large number of stock-keeping units to meet the diverse needs of their customers globally and also provide prepared-and-sale customer service.

While agriculture is regarded as non-cyclical, the other sub-segment is considered cyclical. Their performance is closely tied to the global economic outlook. Europe, America, Australia, and India are the primary markets for the company’s tyre lines.

Valuations:

Balkrishna Ind EPS has decreased to Rs. 15.88 in June 2022 from Rs. 17.10 in June 2021. The stock P/E is valued at 29x, while the five-year P/E is at 24.9x. The return on capital employed is at 23.8% and the return on equity is at 21.9%. The EBITDA stood at 18.1x. The interest coverage ratio is at 201 and the return on assets is at 14.8%. The scrip was trading at Rs.2,122, up by 0.19% on Tuesday.

0 Comment
Read More
Business, Equities, Markets, Research Reports - August 23, 2022

Financial Results for Pokarna LTD.

Financial Results for Pokarna LTD. (Q1 FY2023)

Pokarna Ltd has reported an income of Rs. 240.3884 crores during the period ended June 2022 as compared to Rs. 205.2388 crores during the period ended March 2022. The company has posted a net profit or (loss) of Rs. 28.4906 crores for the period ended June 30, 2022, as against a net profit or (loss) of Rs. 20.1066 crores for the period ended March 31, 2022. The EBITDA stood at Rs. 46.02 crores in March 2022, up 107.58% from Rs. 22.17 crores in March 2021. The margins would have been better but for the forex loss of Rs. 6.82 cr on account of restatement of debt drawn for establishing a new unit, which was offset against the forex gain on exports. The net forex loss charged to the P & L account is Rs. 1.65 cr, reported under other expenses.

Business growth remains strong.

The business environment remains challenging. While sequentially there is an improvement, on an overall basis, business continues to face growth hurdles. The revenue growth remains strong on the back of higher offtake and new product launches. We expect sales momentum to be sustained as new units start ramping up production. The operating margins stood at 25% for the quarter. The focus is on improving the capacity utilisation of new quartz units. Supply chain disruptions, port congestion, container unavailability, and rising shipping costs continue to pose a challenge. The exports to the East Coast, though, have smoothened to an extent. The states of Telangana and Andhra Pradesh are found to be home to some of the best quality quartz raw materials. In addition to private label manufacturing, it is distributed and supplied across the globe under the brand name Quantra. The sourcing of the majority of raw material was from captive quarries, which are home to some of the most sought-after colors. The company’s colour palette includes over 75 varieties of granite sourced from India, Ukraine, Madagascar, and Norway. The deep and entrenched relationship with dealers across key regions of operations

Valuations:

Pokarna EPS stood at Rs. 6.49. The Return on Capital Employed was at 2.39%, whereas the Return on Equity (ROE) was at 0.06%. The EBITDA was at 172x and the P/E ratio was at 52.2x. The price-to-book ratio was recorded at 13.2x and the interest coverage ratio was at 0.33x. The scrip was trading at Rs.550, down by 2.90% on Monday.

, , , 0 Comment
Read More
Godha Cabcon & Insulation Reports Q1 2026 Results
Business, Equities, Market News, Markets, Research, Result Updates - August 23, 2022

Supriya Lifescience Ltd Q1 FY23 Result Updates. Robust revenue growth driven by strong sales from Anestetic segment.

Supriya Lifescience Ltd Q1 FY23 Result Updates.
Robust revenue growth driven by strong sales from Anestetic segment.

Supriya Lifescience Ltd reported a net profit of Rs. 25.2 crores, increased by 227.27% YoY from Rs. 7.7 crores and fell by 45.45% QoQ from Rs. 46.2 crores. .46% in Q1FY23.
The company reported revenue of Rs. 103.7 crores , up by 31.43% YoY from Rs. 78.9 crores and declined by 43.98% QoQ from Rs. 185.1 crores. The growth was mainly driven by strong sales from Analgesic/Anestetic segment which contributed 51% to the topline against 15% in same period last year. Overall delay in the raw material supplies and export shipments lowered the revenue on QoQ basis, China being key markets for Anti-histamine therapeutic segment. SLL’s top 12 products contributed around 70% of the revenue. Export markets contributed 82.90% of the revenue against 53.50% in the same period last year.

Increase in the cost of solvents weighed on the EBITDA margins during the quarter.

Earnings before interest, tax depreciation, and amortization (EBITDA) in Q1FY23 stood at Rs. 33.7 crores and increased by 92.91% YoY from Rs. 17.4 crores but dipped on QoQ basis by 57.44% from Rs. 79 crores. The operating profit margin improved by 1,035 bps YoY and was impacted QoQ which came at 32. Increase in the cost of solvents weighed on the EBITDA margins during the quarter. Net profit margin came at 24.30%, up 1,454bps YoY and down marginally by 66bps on QoQ basis. Growth in the regulated markets came at 106% YoY mainly supported by European region. SLL’s ability to register products in regulated market could help deliver decent topline while maintaining steady margins in the coming quarters.

The shares of Supriya Lifescience Ltd are trading at Rs. 360.40, down by 1.84%.

Valuations:

The return on equity (ROE) is 34.3% for the quarter ended June 2022. The price-to-earning (P/E) ratio stood at 17. The return on capital employed (ROCE) for the company is 43.1%. The price to book value of Supriya Lifescience Ltd is 4.72. The EV/EBITDA is 11.3. EPS during the quarter came at Rs. 3.14 vs Rs. 0.96 in the same period last year.

 

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
Godha Cabcon & Insulation Reports Q1 2026 Results
Business, Equities, Markets, Research Reports - August 22, 2022

Mold-Tek reported a sale of Rs. 207 crores.

Mold-Tek reported a sale of Rs. 207 crores.

Mold Tek Packaging has reported an almost 80% increase in net profit to Rs 21.71 crore for the June quarter. The total sales were at 207.8 crore, an increase of 55% from the year-earlier period and 16.81% up from Q4 FY22. The profit before tax was Rs. 29 crores and the volume growth was 51.17%. While the inflationary environment continued to impact the margins, the company delivered healthy operating margins of 18% with its focus on IML packs and operational efficiencies across all segments. They have a huge CAPEX of Rs. 125 Cr. planned in FY. 22-23. The EBIDTA was up by 46.84% from June 2021 and 13.59% from Q4 of FY22. The EBIT for the quarter increased by 46.84 % to Rs. 37.3 crore from Rs. 25.40 crores.

Expansion Plans:

As previously stated, the company intends to invest 125 crores in capital expenditures this fiscal year on capacity at its facilities in Hyderabad, Daman, Visakhapatnam, and Kanpur. It has also been decided to set up a second plant in Daman with robotic IML facilities to produce food and FMCG IML containers to meet the growing customer demand in the western region. For the value of a company’s earnings growth, it is very important to consider any dilution of shareholders’ interests. As it happens, Mold-Tek Packaging issued 13% more new shares over the last year. Therefore, each share now receives a smaller portion of the profit.

The company raised equity from QIP and the allottees who have been allotted more than 5% in the QIP are Goldman Sachs Funds—Goldman Sachs India Equity Portfolio (27.61%), Ashoka India Equity Investment Trust PLC (21.24%), Aditya Birla Sun Life Trustee Private Limited A/C (19.30%), ICICI Prudential SmallCap Fund (14.48%) and White Oak India Equity Fund IV (10.62%). Mold-Tek Packaging utilised the net proceeds from the QIP issue for the company’s ongoing and future capital expenditure requirements, working capital requirements, debt repayment, and general corporate purposes.

Mold-Tek Packaging has a weak cash flow relative to earnings, which indicates lower quality earnings, and the dilution means its earnings per share growth is weaker than its profit growth. For the reasons mentioned, we think that an unthinking glance at Mold-Tek Packaging’s statutory profits might make it look better than it is on an underlying level.

Valuation:

The EPS was at Rs. 23.8. for the June quarter, up by 54.82% Q1 from June 2021 and by 17.81% from the Q4 of FY22. The Return on Capital Employed was 22.5%, whereas the Return on Equity (ROE) was 18.2%. The EBITDA was at 24.2x and the P/E ratio was at 43.8x. The price-to-book ratio was 6.62x and the interest coverage ratio was 14.0x. The scrip was trading at Rs.970, down by 0.39% on Monday.

 

, , , 0 Comment
Read More
Business, Equities, Market News, Markets, Research, Result Updates - August 22, 2022

Aurobindo Pharma Ltd Q1 FY23 Result Updates. Strong revenue growth led by robust growth in ARV segment.

 

Aurobindo Pharma Ltd Q1 FY23 Result Updates.
Strong revenue growth led by robust growth in ARV segment.

Aurobindo Pharma reported a net profit of Rs. 520.5 crores, down by 32.4% YoY from Rs. 770 crores in June 2021.
Aurobindo reported revenue growth of 9.4% YoY and 7.3% QoQ to Rs. 62.36 bn in Q1FY23 after a continuous decline in growth, on a YoY basis, over the last few quarters. This improvement was the result of a return of growth in the US, strong growth in Growth markets, and robust growth posted in Anti-Retroviral (ARV) segment.
Gross Profit Margin declined 479 bps YoY and 284 bps QoQ to 53.7% in Q1FY23 due to increased raw materials costs, YoY and QoQ, in Q1FY23. EBITDA Margins for the quarter declined 574 bps YoY (-130 bps QoQ) to 15.5% and EBITDA declined 20.2% YoY (-1.0% QoQ) to Rs. 9.65 bn in Q1FY23.
R&D expenses stood at Rs. 3.10 bn or 5.0% of the revenue in Q1FY23. Net organic Capex was USD 61.0 mn and an average forex rate was Rs. 76.98 in Q1FY23. Net cash from investments was USD 337.0 mn as of Q1FY23 while the average finance cost was 1.8% due to running multiple currency loans. FCF was USD 121.0 mn, out of which nearly USD 53.0 mn was spent on Capex, another USD 8.0 mn on the PLI project, USD 34.0 mn on dividends, and USD 22.0 mn for the acquisition of the business in Q1FY23. Due to robust FCF, the company was able to reduce gross debt to USD 277.0 mn as of Q1FY23 from USD 313.0 mn as of Q4FY22.

Growth in the US was driven by forex gains strong growth in injectable revenue.

Aurobindo Pharma USA’s revenue increased 5.0% YoY to USD 214.0 mn in Q1FY23. The revenue for Auromedics, Injectable business in the US, increased at a higher pace of 16.0% YoY to USD 71.7 mn in Q1FY23.
Growth markets include INR 456.0 mn of domestic formulations revenue in Q1FY23. The US segment (47.6% of total revenue) revenue increased at 10.8% YoY (+8.9% QoQ), Growth Markets (6.9%) revenue rose by 30.8% YoY (+10.0% QoQ), and ARV segment revenue (6.1%) increased at a strong pace of 28.1% YoY (+60.9% QoQ) in Q1FY23. At the same time, API revenue (14.5%) increased at 11.7% YoY (-0.7% QoQ) while Europe formulation revenue (24.8%) declined at 2.2% YoY (+0.5% QoQ) in Q1FY23. The growth in the US was partially driven by forex gains and partly due to strong growth seen in injectable revenue, YoY, in Q1FY23. Injectables revenue now forms 26.3% of the US revenue vs. 24.6% it was in Q1FY22 and 26.8% it was in Q4FY22. Europe revenue was affected by unfavorable currency movement, as on a constant currency basis it grew at 5.9% YoY to EUR 189.0 mn in Q1FY23. Growth markets performance was driven by strong growth in Canada.

The shares of Aurobindo Pharma Ltd are trading at Rs. 555.75, down by 2.38%.

Valuations:

The return on equity (ROE) is 11.7% for the quarter ended June 2022. The price-to-earning (P/E) ratio stood at 12.9. The return on capital employed (ROCE) for the company is 12.9%. The price to book value of Aurobindo Pharma Ltd is 1.31. The EV/EBITDA is 7.18. EPS for the quarter is Rs. 40.9.

 

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