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June 2021

Kaveri Seeds reported a net profit of Rs. 240 Cr.

LT FOODS reported an operating profit of Rs.166 cr.

LT FOODS reported an operating profit of Rs.166 cr.

LT Foods (LTF’s) declared its Q1 FY22-23 results with revenue rising 32.8% YOY to Rs 1,611 crore. The operating profit was up by 27.7% to Rs 166 crore and net profit went up by 23.28% YOY. Its profit margins recovered sequentially but contracted YOY. The net profit stood at Rs. 95 Cr, compared to Rs. 76 Cr. in June 2021. The revenue growth was on account of accelerated brand investments across various segments.

Margins under pressure:

The gross margin improved by 110bps YoY, aided by an improvement in product mix and higher realisation. However, EBITDA margin fell by 40 basis points year on year to 10.0% due to higher freight costs and additional brand investments.LTF has a strong focus on a value-added portfolio, which will support margin improvement in the long-term. The Health & Convenience product segments, which include ready-to-eat products, contributed 2% in FY22, an improvement from 1.5% in FY21. The company targets a 150 bps expansion in EBITDA margin through product mix, operational efficiency, and scale.
The green energy initiatives by the company will provide production efficiency. We anticipate that EBITDA margins will moderate in the near future due to higher costs, but will gradually improve thereafter. LTF’s consistent efforts on brand strengthening and distribution network expansion, as well as region and product diversification via organic and inorganic routes, have been the growth strategy.The recent acquisition in the Jasmine rice segment will strengthen market share. The re-opening of HoReCa channels is also aiding growth, while LTF’s strong focus on value-added products will improve margins.

Valuations:

LT Foods’ EPS was at Rs. 2.80 in June 2022, up from Rs. 2.27 in June 2021. The ROCE and ROE were at 14.8% and 15.6%, respectively. The stock was trading at a P/E ratio of 9.47x. The debt to equity ratio was 0.66x, whereas the asset turnover ratio was at 1.28x. The interest coverage ratio stood at 7.55x. The scrip is trading at Rs. 91.6, up by 2.92% on Monday.

Everest Kanto reported a total revenue of Rs. 380 Cr.

Everest Kanto reported a total revenue of Rs. 380 Cr.

Everest Kanto reported a total revenue of Rs. 380 Cr.

The net sales stood at Rs 380.53 crore in June 2022, up 13.58% from Rs 335.02 crore in June 2021. The quarterly net profit was at Rs. 38.70 crore in June 2022, down 44.1% from Rs. 69.23 crore in June 2021. The EBITDA stands at Rs. 61.23 crore in June 2022, down 32.98% from Rs. 91.36 crore in June 2021. The company incurred a total expense of Rs. 331 Cr as compared to Rs. 257 Cr in June 2021.

Increasing CNG and Hydrogen Consumption To Drive Cylinder Demand:

Everest Kanto Cylinders Ltd. is a major player in High Pressure Seamless Steel Gas Cylinders. It generated its major revenue from India, which was around 270 Cr with a profit of Rs. 44 Cr. while the USA contributed 57 Cr. with  profit of Rs.2 Cr. The UAE reported total revenue of Rs. 51 Cr. and a net profit of Rs. 8 Cr. They manufacture a wide range of cylinders for industrial gases, medical gases, fire fighting equipment, beverage industry accumulator shells, aerospace scientific research, and CNG-NGV cylinders.

The auto OEMs have significantly reduced diesel vehicle production due to rising costs and lower demand. The Vehicle Scrappage Policy is expect to drive new vehicle sales and CNG adoption. The STCs continue to convert diesel bus fleets to CNG. CNG prices in India are link to key international benchmarks and are at  significant discount to other liquid fuels. The CNG vehicles operate at a much lower cost per km.India is a participant in the global commitment to set net zero emission targets.

Over 30 countries have released hydrogen roadmaps, committed more than USD 70 billion in public funding, and total investments are expected to exceed USD 300 billion in hydrogen spending through 2030. The government of India notified its Green Hydrogen Policy with the aim of making India a Green Hydrogen Hub. This involves scaling up the use of domestically produced hydrogen to significantly reduce energy imports. The policy is in line with the country’s pledge to be carbon neutral by 2070. India’s hydrogen demand is expected to increase five-fold by 2050, from 6 MPTA in 2020. 80% of the demand in 2050 is expected to be green in nature.

Valuations:

Everest Kanto EPS has decreased to Rs. 3.45 in June 2022 from Rs. 6.17 in June 2021. The debt to equity ratio was 0.14x, whereas the asset turnover ratio was at 0.8x. The interest coverage ratio was at 33.6x compared to 6.3 in June 2021. This was due to a reduction in debt. The scrip is trading at Rs. 123, up by 5% on Monday.

 

 

 

HUL Q1 FY23 Result Update: HUL beats estimates with Rs 2,381-cr net profit in Q1; revenue up 19.6%

Genus Paper And Boards reports a net profit of Rs. 4.81 crores.

Genus Paper And Boards reports a net profit of Rs. 4.81 crores.

Genus Paper And Boards reports a net profit of Rs. 4.81 crores.

Genus paper and boards reported a consolidated net profit of Rs. 4.81 crores in the June quarter as against Rs. 3 crores in June 2021. The total revenue stood at Rs 179 crore, a YOY growth of 195%. During this period, the company incurred a total expense of Rs. 172 crores. The EBITDA for the company was at Rs. 6.35 crore as compared to Rs. 4.19 crore in June 2021. The Kraft paper segment contributed to a total revenue of Rs. 157 crores, while the Coke business generated revenue of Rs. 21 crores. The company incurred a finance cost of Rs. 2 crores.

Muzaffarnagar unit to boost profitability.

The company has successfully commenced production of duplex paper from one of the production lines at a new unit in Muzaffarnagar, Uttar Pradesh. The Muzaffarnagar unit has manufacturing facilities for the production of kraft paper and duplex paper. Genus Paper & Boards’ EPS has grown by 28% each year, compounded over three years. If growth like this continues, then shareholders will have plenty to smile about. One way to double-check a company’s growth is to look at how its revenue and earnings before interest and tax (EBIT) margins are changing.

The good news for Genus Paper & Boards shareholders is that EBIT margins have grown from 3.9% to 7.1% in the last 12 months and revenues are on an upward trend as well. Further, the high level of insider ownership is impressive and suggests that the management appreciates the EPS growth and has faith in Genus Paper & Boards’ continuing strength. Fast growth and confident insiders should be enough to warrant further research, so it would seem that it’s a good stock to follow.

The paper industry in India is growing steadily with increasing demand from various segments like education, business & corporate and commercial printing. The demand and growth drivers have come from a combination of factors such as rising income levels, growing per capita expenditure, rapid urbanization, industrial production, government spending on education, and increased school enrollments. Higher disposable income, coupled with urbanization, is expected to drive new and different consumer behaviours for paper products.

Valuations:
The EPS was at Rs. 0.19 in the June quarter. The stock is trading at a PE ratio of 15.6x. The EBITDA was at 10.3x. The company has a low-interest coverage ratio of 5.39x. The stock was trading at Rs. 16.8 on September 6th, down by 0.30%.

Tips Industries generated a net profit of Rs. 17.17 cr. in Q1 FY23.

Tips Industries generated a net profit of Rs. 17.17 cr. in Q1 FY23.

Tips Industries generated a net profit of Rs. 17.17 cr. in Q1 FY23.

Tips Industries has reported a total income of Rs. 35.2626 crores during the period ended June 2022 as compared to Rs. 35.4814 crores during March 2022 and Rs. 28.7249 crores during June 2021. The company has posted a net profit of Rs. 17.1793 crores in June 2022 as against a net profit of Rs. 15.9260 crores for the period ended March 2022 and Rs. 15.6298 crores for the period ended June 2021. The operating margin stood at 66% compared to in Q1 FY22, which was lower than the 72% in Q1 FY22. The EBITDA margins were up by 600 bps in Q1 FY23 as against Q4 FY22.

Current quarter operations:

The company released 185 new songs and 142 non-film songs, with 43 film songs under their name. The company now has a collection of around 29,000. songs across all genres and major languages. The Indian digital advertising industry stood at Rs 21,353 crore by the end of 2021, up by Rs 15,782 crore in the previous year. It has grown at a rate of 35.3%. This sustained growth can be attributed to technological advancements, improvements in data science and analytics, and the introduction of policies and regulations, among others. The highest proportion of spending on digital media is claimed by social media (29%, Rs 6,218 crore), closely followed by online video (28%, Rs 5,907 crore).  Paid search claims 23% (Rs 5,039 crore), while display banners claim 16% (Rs 3,420 crore).

By 2023, social media is expected to grow at a CAGR of 29.79%, with a spending share of 29%. On an average, Indians spend 2-3 hours on social media, which is on par with the global average. 73% of the audience belonging to the age group of 45 years to 54 years uses YouTube to watch online content. The listenership on audio streaming services grew by 40% Y-o-Y in the first half of 2020.

 

Valuations:

The company has reported an EPS of Rs.13.25 for the period ended June 30, 2022 as compared to Rs.12.05 for the period ended June 30, 2021. The ROCE and ROE stood at 86.5% and 63%, respectively. The stock is trading at a P/E of 26.1x, which is not expensive, and a 5 year P/E of 28.5x. TIPS industries have an EBITDA multiple of 12.2x and an interest coverage ratio of 721x. The price to book ratio is at 19.2x, which has a book value of Rs.78.8. The scrip was trading at Rs. 1525, down by 1.34% on Monday.

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.

Dish TV reported a net profit of Rs. 17.85 crores

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.

ONCG made a profit of Rs. 15205 Cr.

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.

 Mazagoan Dock profit to soar at new heights

 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.

Muthoot Finance's net profit at Rs. 802 Cr.

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.

SAIL reported a net profit of Rs. 804 crore.

Sail reported a net profit of Rs. 804Cr.

SAIL reported a net profit of Rs. 804 crore.

SAIL on Wednesday posted a 79% fall in its consolidated net profit to Rs 804.50 crore during the June quarter, dragged by higher expenses. It had clocked Rs 3,897.36 crore in the June period of the 2021-22 fiscal, Steel Authority of India Limited (SAIL) said in a regulatory filing. The company’s total income rose to Rs 24,199.51 crore from Rs 20,754.75 crore in the year-ago quarter. The expenses increased to Rs 23,295.23 crore as against Rs 15,604.07 crore in June 2021.

EBITDA fell to Rs 2,606 crore compared to Rs 6,674 crore in June 2021. The revenue was at Rs 24,029 crore, up 16% year-on-year. The sales volume declined marginally to 3.15 million tonnes (MT) during Q1 of the current fiscal compared to 3.33 MT in June 2021.

Other parameters for the business:
The crude steel output was at 4.33 million tonnes, up from 3.77 MT in the same quarter of the preceding financial year. The sales were down to 3.15 MT as compared to 3.33 MT last year. The first quarter of FY23 saw challenges of higher input costs and serious market demand, both global and domestic, impacting the performance of the company. The high cost of production due to an increase in imported coking coal prices had an impact on the company’s bottom line. The decline in global demand and prices for steel had a direct bearing on the domestic market and price realization.

The first quarter of FY2 had higher input costs and subdued market demand, both global and domestic, impacting the performance of the company. The high cost of production due to high import prices of coking coal had an impact on the bottom line. The decline in global demand and prices for steel had a direct effect on the domestic market and price realisation. SAIL has infrastructure projects to gain momentum, which will boost the demand for their products. They are confident of improved performances in the second half of the current financial year with a significant reduction in the price of imported coal and an uptick in demand.

Valuations:
The EPS for SAIL is Rs. 22.2. The ROE and ROCE were at 25.1% and 24.3%, respectively. The EBITDA ratio is 2.52. While the P/B ratio is 0.62, The P/E ratio is at 3.58 times, whereas the 5 year P/E is at 4.49 times. The scrip closed at Rs.81.6, down by 3.49%.