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June 2023

Dalmia Bharat posted a net profit of Rs. 280 Cr. in the June quarter.
Business, Editorials, Equities, Markets, Research, Uncategorized - September 6, 2022

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Dalmia Bharat posted a net profit of Rs. 280 Cr. in the June quarter.

Dalmia Bharat’s revenue from operations increased 27.44 percent to Rs 3,302 crore during the quarter under review, as against Rs 2,591 crore in the corresponding period of the previous fiscal. The company had posted a net profit of Rs 280 crore during the April-June quarter a year ago, Dalmia Bharat said in a regulatory filing. Dalmia Bharat’s total expenses rose 37.7 percent to Rs 3,072 crore in Q1 FY 2022–23 from Rs 2,231 crore a year ago.

In the April-June quarter, sales volume increased by 26.53 percent to 6.2 million tonnes, up from 4.9 million tonnes in Q1 FY2021-22.The net debt/EBITDA stood at 0.59x. The cost of borrowing was 5.7% for the current quarter compared to 5.3% in June 2021.

Key highlights for the quarter:

The continuous efforts and resilience of teams have enabled them to deliver good performance again on the back of strong volume growth and continuous cost leadership. The company did capacity additions and commenced commercial production of a 2.9 Mn Tonnes Murli Cement plant in Maharashtra. The firms’ total cement capacity increased to 35.9 MNT and their total clinker capacity stood at 18.9 MNT. In FY22, CO2 emissions were reduced further to 489kg/ton of cement, with a water positivity of 12.5x. They doubled renewable power capacity to 62.6 MW and signed an MoU with FLSmidth A/S, a leading supplier of technology for the cement industry, to develop a breakthrough innovation to support sustainability in the cement industry and a completed restructuring of the refractory business. The company will divest its IEX investment as and when it requires additional funds for CAPEX.

The management aims to save power and fuel costs as it commissions 41MW/69MW of WHRS/solar power units in FY23, taking the total renewable capacity to 173MW in FY23 from 105MW in FY22. The management is optimistic about demand and expects it to rise in FY23, led by government spending on infrastructure and housing. The major risks for the company to watch are lower demand and higher costs.

Valuations:

The EPS stood at Rs. 10.46 for June 2022, which was at Rs. 31.76 in March 2022 and Rs. 12.13 in June 2021. The stock has a ROCE of 7.09% and an ROE of 7.47%. The P/E ratio is now 26.6x, up from 25.1x five years ago. EBITDA is at 12.8x and the return on assets is 4.71%. The interest coverage ratio is 6.54x and the asset turnover ratio is 0.49. The share is trading at a price of Rs.1531, down by 0.37%.

Tarsons Products earned Rs. 29 crores in net profit.

 

 

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Vodafone Idea reported lower margins-
Business, Equities, Research Reports - September 6, 2022

Vodafone Idea reported lower margins-

Vodafone Idea reported lower margins

Vodafone Idea reported a consolidated loss of Rs 7,295 crore in the June quarter as against Rs 7,312 crore in June 2021. The total revenue stood at Rs 10,410 crore, a YoY growth of 13.7%. The revenue metric improvement was largely a function of residual tariff hike pass-through and one extra day during the quarter, which led to 3.2% QoQ growth. Vodafone Idea’s ARPU for the quarter improve by 23.4 percent YoY to Rs 128, aided by tariff hikes. 

 

Restricted Competitiveness:

The subscriber base declined from 3.4 million to 240.4 million, with a churn rate of 3.5%. The 4G sub-base saw an addition of merely 0.9 million QoQ to 119 million. Data traffic/MOU increased 4%, 2% QoQ to 5.4 GB, 620 minutes, respectively. Data usage and subscriptions increased 4% year on year to 13.3 GB, but remained lower than peers, who use nearly 20 GB per month. Similarly, capex was at 840 crore vs. 1210 crore in Q4. The management reiterated its intent to raise tariffs by the end of the current calendar year, which will lead to a rise in ARPU. The net debt, at 1.982 lakh crore, was up by 1820 crore QoQ. The net debt includes deferred spectrum liability of 1.166 lakh crore, AGR liability of 67270 crore, and bank borrowing of 15200 crore. While the recent government measures ensure the survival of VIL, staying competitive will be a function of how quickly it raises funds. Substantial fundraising to meet capital spending to expand 4G network coverage, launch 5G and stay competitive  Improvements in subscriber churn and 4G subscriber metrics Many key risks for the company are its inability to raise funds and expand coverage to compete.

The company has acquired mid-band 5G spectrum in 17 priority circles and mmWave 5G spectrum in 16 circles. It has also acquired an additional 4G spectrum in three circles, i.e., in Andhra Pradesh, Karnataka, and Punjab, for 18799 crores, payable in 20 annual instalments of 1681 crores per annum. It did not specify any time frame for the 5G launch. The company expects cash EBITDA to improve as 5G spectrum deployment occurs. It will result in a reduction in SUC charges, while there will be some lower tower rent benefits. The Board of Directors has approved the allotment of 42.77 crore warrants to Vodafone Group on a preferential basis. This, coupled with the earlier preferential raise in Q4 of  4500 crore, takes the total fund infusion by the promoter groups to 4986 crore, largely to pay Indus Tower dues. The company recently agreed to convert interest accrued from the four-year moratorium into equity. It indicated that DoT has confirmed the NPV of Rs 16,300 crore. This equity conversion will lead to dilution with the government owning 33% in VIL and the promoters (Vodafone and Aditya Birla group) owning 50%.

Key Triggers

The outstanding debt will come down by a similar amount, with an annual interest cost savings of Rs 1200 crore from the same. The government also has the discretion to convert total deferred moratorium dues into equity at the end of four years. The guidelines for this are still awaited. VIL remains the weakest private telco. The need for capitalization is urgent, owing to the company’s impending debt repayment, lagging network spending, and continued relative market share loss. It is highlighted that recent government relief measures would ensure the survival of VIL, but the future growth outlook remains uncertain.

Valuations:

In the June quarter, the EPS was Rs. 2.27).The stock is trading at a PE ratio of 86.2x. The EBITDA was at 3.97x with an interest coverage ratio of 0.30x. The stock was trading at Rs. 9.28 on Septembe up by 3.69%.

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GST Storm Hits ICICI Prudential, ₹429 Crore at Stake
Business, Equities, Markets, Research Reports - September 2, 2022

CCL reported a net profit of Rs. 30 crore.

CCL reported a net profit of Rs. 30 crore.

CCL Products’ total revenue from operations was at Rs 333.86 crore in June 2022, up 50.38% from Rs 222.02 crore in June 2021. The net profit was at Rs. 30.77 crore in June 2022, up 25.89% from Rs. 24.44 crore in June 2021. The EBITDA stood at Rs. 56.67 crore in June 2022, up 21.51% from Rs. 46.64 crore in June 2021. The results were driven by capacity utilization of approximately 85% in its Indian and Vietnam units. CCLP posted volume growth of some 25% in the first quarter of the current fiscal, thus helping the company post 56.2% growth in revenues to Rs 509.28 crs when compared to Rs 326.12 crs in the same quarter a year ago.

The company’s fundamentals are strong:

The coffee was sourced from some of the small players, which has barely helped diminished volume growth in the last couple of quarters. The record product realizations, OPMs, have all but fallen to 17.4%, not least due to little variation in their pricing model. Therefore, operating profits rose by a much diminished 23% to Rs 88.54 crs as against Rs 71.98 crs in the same quarter a year ago. Needless to say, margins have gotten a leg up from the growing capacity utilization of its small pack facility, whose throughput surged past 50% in the last quarter. The depreciation costs were up 25.5%, PBT rose by a little over 24%, and post-tax earnings advanced by 20.3% to Rs 52.74 crores as against Rs 43.84 crores in the year ago period. entthralled by higher coffee demand, which was reflected in the order book. CCLP has drawn up plans to increase its spray dried capacity by 16,500 tons at a cost of $30 million, largely funded by debt. Ngon Coffee’s previously increased capacity of 3500 tons operated at high utilization last fiscal.

The increased value addition and penetration in the overseas market hold the key to supporting CCLP’s volume growth over the next few years. Though increased utilization in Vietnam and India helped in the revival of revenue growth in the last few quarters, the introduction of value-added products and the identification of potential markets are essential for market share gains globally. Buttressed by higher volumes at the new Vietnam facility, post-tax earnings are projected to grow by some 29% next fiscal.

Valuations:

The company has reported an EPS of Rs.3.96 for the period ended June 30, 2022 as compared to Rs.3.30 for the period ended June 30, 2021. The ROCE and ROE stood at 15.6% and 17.5%, respectively. The stock is trading at a P/E of 30x, which is not expensive, and a 5-year P/E of 24.5x. The EBITDA multiple is 19.8x and has an interest coverage ratio of 17.4x. The price to book ratio is at 5.10x, which has a book value of Rs.94. The scrip was trading at Rs.479, down by 0.14% on Thursday.

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Shipa Medicare reported an 85 lakh net profit.
Business, Equities, Markets, Research Reports - August 26, 2022

Shilpa Medicare reported an 85 lakh net profit.

Shipa Medicare reported an 85 lakh net profit.

Shipa Medicare has reported a total income of Rs. 269.2583 crores during the period ended June 30, 2022 as compared to Rs. 346.0867 crores during the period ended March 31, 2022. The company has posted a net profit or (loss) of Rs. 0.8485 crores for the period ended June 30, 2022 as against a net profit or (loss) of Rs. 29.5490 crores for the period ended March 31, 2022. Gross margins declined in Q1FY23 due to pricing pressures in both the API and formulation segments.

First domestic player to launch Adalimumab :

To improve cost efficiencies and improve margin profile, the company is working on process changes, backward integration of intermediates, and increasing the scale of operations.In the API business, the company intends to continue its focus on oncology molecules while reducing its dependence on niche non-onco molecules. Shilpa has set up a dedicated block which includes R&D and production blocks. It intends to complete 6 molecules, 2 in FY23 and 4 in FY24, for the exhibit batches. The company is working on specialised polymers and believes there is enough opportunity to grow in the segment. Management expects phase-1 studies to start by CY22-end and complete them in 9 months. Shilpa has been able to stabilise the product for 1 kL. The molecule will start with the grade market, which has small potential, and then move towards formulations. Shilpa intends to give some time for the business to stabilise before looking at an IPO. Shilpa has largely completed the remediation of the Jadcherla formulations unit. Third-party audits of the plant have also concluded without any data integrity issues. Company is constantly in touch with the USFDA with regular updates. On approval, Shilpa is expected to become the first domestic company to launch high-concentration Adalimumab. Given the studies were conducted in the EU, the company intends to pursue launches in the RoW market. The domestic market size for the molecule is Rs. Certain expenses have been capitalised, which will impact P&L, but they are not significant. Capex: Rs 4 billion was earmarked for the Albumin project, of which Rs 1.2 billion has been utilised. Apart from maintenance, there is no major capex for the formulations plant. The Capex for the API business will depend on capacities and the management expects an expense of  Rs400mn-500mn.

The company does not plan more investments in biologics. Onco and other API segments witnessed one-offs during Q1FY23 on account of Ind-Asu requirements and trading revenues, respectively. We believe performance will remain steady going forward, with the USFDA resolution remaining the key to faster growth. Key upside risks are early resolution of the import alert, high-value launches in formulations, and quick success in biosimilars.

Valuations:

EPS is at Rs. 0.10 for the June quarter as compared to Rs. 3.40 in the March quarter and Rs. 0.2 in the June 2021 quarter. The ROCE and ROE are at 5.58% and 3.35%, respectively. The EBITDA stood at 19.2x while the price to book ratio was at 1.81x. The stock was trading at a P/E ratio of 62.0x. The scrip was at Rs.388 on Thursday, up by 0.90%.

 

 

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Supriya Lifescience Ltd Q1 FY23 Result Updates.
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.

 

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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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India's Steel Demand Set to Rise 8-9% in 2025
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.

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BEL to manufacture hydrogen fuel cells with technology from TEV.
Business, Equities, Markets, Result Updates - August 11, 2022

Lumax recorded its biggest ever profit.

Lumax recorded its biggest ever profit.

Lumax Technologies reported a 539.59% jump in its profit to Rs.21.81 crore as against Rs. 3.14 crore in June 2021 and 20 crore in March 2022. The total sales were at Rs. 421.93 Cr compared to Rs. 260 Cr in June 2021 and Rs. 417 Cr in March 2022. EBITDA margins stood at 11.5%, up by 430bps from Q1 FY22. The company expects a bounce back in domestic exports as the world economy is witnessing a strong recovery.

A long way to go ahead:

The auto industry was under pressure in the last quarter due to a shortage of semi-conductors, rising commodity prices on account of inflation, and supply chain disruptions. However, the volumes have increased this year as the economy is stabilising. The company has witnessed consistent improvement in all the sectors, which indicates that the mobility industry is revisable and in its growth stage. The growth catalysts will be  OEM offtake, an improving demand scenario, strong aftermarket demand, and increased wallet share with its major customers. The key highlights for Q1 FY23 are normal economic activity, healthy retail sales, demand in the PV segment amid new launches in the SUV domain, a reduction in excise duty, and a reduction in key raw material prices towards the end of the quarter April-May 2022.

The increasing demand for safety and comfort requirements in automobiles is paving the way for companies focused on supplying import-substitute products. With the high growth forecast in the vehicle industry, the auto component sector is anticipated to rise twice in FY 2022–23. The government’s recent announcements of PLI schemes regarding ACC Batteries and Auto & Auto Components are expected to pave the way ahead for the creation of an automotive value chain.

Valuations:

The ROCE and ROE is at 18.4% and 13.0% respectively for Lumax Technologies. P/E ratio is at 17 times, whereas 5 years and 3 years P/E ratio is at 16.5times and 14.4times. EVEBITDA is 7.97 times. The EPS is at Rs. 12.9 and P/B ratio is at 2.79 times. The stock closed at Rs.222 down by 3.39% on Wednesday.

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Ajmera Realty reported total revenue of Rs. 55 Cr. in Q1 FY23.
Business, Markets, Result Updates - August 10, 2022

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

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

Ajmera Realty reported its total revenue of Rs. 55 Cr. in Q1 FY23, down from Rs. 135 Cr. in Q1 FY22 and Rs. 181 Cr. in Q4 FY23. The current quarter’s PAT was Rs. 12 Cr., compared to Rs. 14 Cr. in the previous quarter and Rs. 10 Cr. in June 2021.EBITDA was at Rs. 18 Cr. compared to 40 Cr. in March 2022. This was due to head winds from higher input costs, revisions in interest rates, and other economic challenges. The company has maintained its margin above 9.5% on a PAT basis.

There was a decrease in debt by 25 CR in the quarter Q1 FY23 due to traction in sales, and the firm has no outstanding debt. The cost of debt has risen by 40 basis points to 11.6 percent, and the net equity ratio in the current quarter is 1.128 percent of net worth, compared to 1.18 percent in March 2022.The volume has increased to 1,574, 438 square feet, and the sales value is at Rs.400 Cr. The collection has improved from 93 Cr. in March 2022 to Rs. 210 in June 2022.

High Demand due to WFH culture:

The company witnessed a strong performance with the launch of two projects and expects to generate revenue in the coming quarters as they are in advanced stages. Overall, real estate has witnessed a resilient performance due to upward pressure in all commodities. For the first time, buyers have improved segments in real estate. Despite the hike in interest rates, there is a bit of a slowdown, but overall there is good demand. The shift in work from home, along with demand for mid-segment to luxury housing, will drive demand for this project.

The Marquee projects of Mumbai – in Wadala have a great response with 2 towers. The company has also received permission to start its work in Juhu which the issuance of certificate for construction. They acquired land spans 1,721 sq.mt., on which a residential property with a potential carpet area of 95,000 square feet is to be built, with a sales value of Rs250 crore expected over three years at conservative price points. The infrastructure will consist of two wings with 100 units with all modern lifestyle amenities.

Valuations:

EPS was at Rs.13.2 for the company and EVEBITDA was at 16.5 times. The P/E ratio is 16.5 times. Debt to equity ratio stood at 1.22. ROCE and ROE is at 8.03% and 6.63% respectively. The script is trading at 260 down by 3.35%.

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Supriya Lifescience Ltd Q1 FY23 Result Updates.
Business, Markets, Result Updates - August 2, 2022

Revenue soars three-fold for Barbeque Nation in Q1 FY23:

Revenue soars three-fold for Barbeque Nation in Q1 FY23:

Barbeque-Nation Hospitality Ltd, which is one of the leading dining chains, on Monday, reported a net profit of Rs 16.02 Cr for June quarter 2022. The company had clocked a net loss Rs 43.85 Cr. in June 2021. Its revenue from operations was at Rs 314.86 Cr. during Q1 FY22 as against low revenue for March 2022 quarter. In Q1 FY21, Barbeque-Nation Hospitality’s revenue from operations was at Rs 101.97 Cr. Barbeque-Nation Hospitality total expenses were at Rs 244,41 Cr. 

The Earnings Before Interest, Tax & Depreciation (EBITDA) stands at Rs. 73.4 Cr. VS a loss of Rs.10.4 Cr. in Q1FY22, margin stood at 23.3%. Profit Before Tax (PBT) stood at Rs. 20.8 Cr. as against Loss Before Tax of Rs. 55.9 Cr. in Q1FY21. The same-store sales growth of 182% (Y-o-Y) and dine-in to delivery revenue mix of 87% and 13% respectively.

 

What were the key drivers in the growth of revenue?

As per the management, they have opened 11 new restaurants which helped in growth of sales making overall network to 195 restaurants. The gradual opening of the economy has also contributed in dine-in and delivery channels. The cumulative Barbeque Nation App downloads were 4.7mn, 61% increase over June 21. The strong profitable growth across Toscano business and Barbeque Nation international business also were witnessed. The dine-in segment of the company demonstrated a robust growth of 6x compared to previous year and 32% growth from the previous year. The company has a 4 pillar growth namely Barbeque Nation India, Delivery segment, Toscano and Barbeque Nation international and is focused to grow each of these verticals to build one of India’s largest food services company owning its restaurant.

 

Valuations:

The EPS for the firm is currently is at Rs. 8.28 and P/E ratio for the stock is 147 times making it expensive for investors. The 5 yrs P/E and 3yrs P/E is -122. ROCE and ROE for the scrip is at 3.76% and -9.68 % respectively. The P/B is 12.3 times for Q1 FY23 and Debt to equity ratio stands at 1.58. It is currently traducing at Rs. 1,221 up by 2.15%.

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