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Q1 FY22

Everest Kanto reported a total revenue of Rs. 380 Cr.
Business, Equities, Markets, Result Updates - August 12, 2022

Cummins India's PAT falls in Q1 FY23.

Cummins India’s PAT falls in Q1 FY23.

Cummins India on Wednesday reported a 20% decline in PAT at Rs 198.13 crore  for June quarter. The company’s consolidated profit after tax (PAT) was Rs 246.94 crore in the year-ago period. The consolidated sales during this period increased 41.47% to Rs 1,666.11 crore from Rs 1,177.71 crore in the June quarter of 2021. Domestic sales were 1,172 Cr., a 36% increase over June 2021 and a 12% increase over March 2022.

The export sales were valued at  485 Cr., increased by 58% compared to June 2021 and by 14% compared to March 2022. The profit before tax at 264 Cr. is lower by 13% compared to June 2021 and higher by 8% compared to the March 2022 quarter.

Cummins India is planning to increase its sales volume.

They are closely monitoring the results of the geopolitical events unfolding in different parts of the world and their impact on global demand and the supply chain. Cummins India effectively deals with challenges and monitors any potential impact of rising interest rates on demand. However, they remain optimistic about the short-to-medium-term demand outlook. The company believes that the strong demand from various end-markets may likely be sustained, but at the same time, high inflation and supply chain issues will, in all probability, continue to impact the industry.

The company believes that the strong demand from various end markets may likely continue. At the same time, surging inflation and supply chain disruptions will, in all probability, continue to impact the industry. The company, being part of the global supply chain, is well placed to manage parts supplies to mitigate the impact on revenue and profitability. They are closely monitoring the results of the geopolitical events unfolding in different parts of the world and their impact on global demand and the supply chain. Considering the uncertainty, the company will not provide any guidance for FY 23.

Valuations:

The P/E for the company is at 40.0 times and the 5Y P/E ratio is 28.6 times. The ROCE is 21.3%.While the company’s ROE is 16.9%.The EVEBITDA ratio is 26.0.EPS for the company is Rs. 30.6 per share. The debt-to-equity ratio is currently 0.08.The scrip closed at Rs.1239 and was up by 6.15% 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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