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June 2023

Lumax recorded its biggest ever profit.

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.

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 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%.

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

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%.

A rise of 263% in total revenue was reported by Chalet Hotels

Chalet hotels reports a massive jump in the revenue:

Chalet hotels reports a massive jump in the revenue:

Chalet Hotels posted a net profit of Rs.28.55 Cr. in June 2022, compared to a loss of Rs.41.66 Cr. YOY. The company clocked up net revenue of Rs.253 Cr., up by 263% versus Rs.69.52 Cr. in June 2021 due to robust growth and higher rental incomes. The operating profit stood at Rs.102 Cr., which was up by 11% from March 2022. The Occupancy rate (OCC %) stood at 78% for the June quarter, compared to occupancy of 60% in March 2022. The Average Daily rate (ADR) was at Rs.7457 for the June quarter, higher by 37% from the preceding quarter. The domestic business travel increased by 100%, increasing profit

 

Cost reductions to increase efficiency:

The firm decreased its staff to room ratio to 0.84 from 1.18 in Q1 FY21. The division’s revenue was 5% higher from Q1 FY20 than in the pre-pandemic year. This was due to a strong recovery in business travel in the current quarter. The Revenue per room available (RevPAR) stood at Rs. 5,816/-in Q1 FY23 compared to 2,973/-in Q4 FY22 and Rs.1,252/-in Q1 FY22. EBITDA margins for the quarter were at 42%. The company reversed 16.6 million of its provisions. Hospitality sector revenue was up by 5% from June 2021 and 2.5% from the March 2022 quarter. Fixed costs were at 48% for the June quarter and reduced by 33%. Variable costs were reduced by 42% to increase operating leverage. The total number of rooms for June 2022 was 2,554 rooms.

The average payroll cost was 13%, down from 15% in the previous quarter. Renewable energy sources accounted for approximately 61% of total energy costs. The hotel intends to open a new hotel in Mumbai, which will be operational within a couple of months. They will also be upgrading the Bangalore hotel, which will be operational by December. Chalet Hotels were awarded a contract by DIAL, a good opportunity to debut in the northern Indian markets. They intend to have their 9th property with 350 to 400 rooms in the five-star deluxe space. A majority of the inventory came from metropolitan cities. It will give them entry to a major market in India.

The management is optimistic about its future opportunities and has witnessed a strong recovery trend. There is a potential area for innovation and change in the hospitality sector. Given the ongoing supply chain disruption and the surge in crude oil prices, we believe investors should wait for Q2 FY23 results before taking any further action.

Valuations:

The 5yrs P/E ratio is at -21.6 times and the stock P/E 33.34 times. The P/B ratio is at 4.86 times for Q1 FY23. The ROCE for Chalet hotel is at -0.12% with a Debt to equity ratio of 1.94% indicating that the company is borrowing more from the market to fund its operations. The ROE for the scrip was -5.35% .The share prices closed at Rs. 318 on Friday, down by 3.05%. It touched a 52-week high of Rs. 345 and a 52-week low of Rs. 159. The market cap for the company is at Rs. 6,507 cr.