Q1 FY23 result updates

lupin ltd.

Lupin ltd consolidated revenue fell by 14% YOY to Rs 3604 Cr.

In Q1FY23, Lupin ltd consolidated revenue fell by 14% YOY to Rs 3604 Cr.

Lupin limited is a multi-national pharmaceutical company based in Mumbai. The company specialises in branded and generic formulations, APIs and advanced drug delivery systems in biotechnology. It has 18 manufacturing sites and 9 R&D sites across the globe.

Lupin ltd consolidated revenue fell by 14.9% YOY to Rs 3604 Crores, in Q1FY23, due to subdued performance of its US business.EBITDA was down by 76% YOY to Rs 238 Crores. EBITDA margin falls by 1680 basis points.YOY to 6.6% due to raw martial inflation, higher employee spends and other expenses. Consequently , company reported a loss of Rs 89 Crores. As against of Rs 542 Crores profit a year ago. Company increasing market share, new product ,and scaling up of the Indian business indicate well for the company  performance.

Financial highlights :

In Q1FY23, lupin ltd consolidated revenue declined by 12.3% YOY and QOQ to Rs is mainly due to muted performance in the US business. Revenue from the US business declined by 24.2% YOY and 28.7%Quarter On Quarter to Rs 1010 Crores due to inventory writw down , shelf stock adjustments and price erosion. Company s Indian revenue stood at Rs 1492 Crores which is down by 8.85 YOY and up by 10.4% QOQ DRIVEN BY A 9.9% Quarter on quarter driven by a 9.9 % QOQ growth in domestic formulations. API revenue grew by 3.7% YOY and 15.8% QOQ to Rs 255 Crores. While revenue from growth markets rose by 27.3% YOY and 11.2% QOQ to Rs 424 Crores.

Margins impacted due to raw material inflation:

Gross margin of company contracted by 720 basis points YOY to 55.3% as the company pared down inventories and took shelf shock adjustments on select products consequently; EBITDA fell by 76% YOY to Rs 238 Crores. Company owing to further price erosion in the US business and inflation in input materials. EBITDA margin thereby shrink  by  16.8% YOY to 6.4% reported a loss stood at Rs 89  Crores as against Rs 542 Crores .

Quarter highlights:  

Capex stood at Rs 161 Crores against Rs 106 Cr in Q1FY22 and Rs 158 Crores in Q4FY22. R&D expense was at Rs 348 Crores against Rs 374 Crores in Q1FY22 And Rs 344 Crores in Q4FY22. Total marketed generic products stood at 167. It launched cyclosporine ophthalmic in the US in the quarter. Current pipeline includes 54 FTF, OF Which 21 exclusive FTFs are awaiting for the USFDA approval. In India business, the company has a revenue run rate of more than Rs 1000 Crores. In cardiac and anti-diabetics .GI, pain and gynae grew in double digits.


The EPS was Rs. -1.96, compared to Rs. 10.15 in June 2021. The ROCE and ROE were at  -7.16% and -11.8%, respectively. The book value of a stock is Rs 267. The company’s asset turnover ratio was 0.73x. The scrip is trading at Rs.717, up by 5.40%. on Monday.

Astral Pipes posted a net profit of Rs. 96 Cr.


DLF Ltd posted a consolidated revenue of Rs 1516 Crores.

DLF Ltd posted a consolidated revenue of Rs 1516 Crores.

DLF Ltd posted a consolidated revenue of Rs 1516 Crores.

DLF Ltd’s consolidated revenue in the first quarter of the fiscal year was Rs 1516 crores, a 22% increase year on year. Gross margins continue to operate in the 50% plus range. The Q1 23 margin stood at 53%. EBITDA stood at Rs. 488 crores. There is a drop in this quarter due to the scaling up phase and investing in the growth of the company. The increase in staff costs is driven by organisation scale up, and other expenses are driven by business scale up costs of marketing and brokerage Reflecting a 39% increase year on year. This was largely driven by a significant reduction in the financing costs, along with growth in the JV profits.

Demand continues to exhibit sustained momentum.

The high demand for luxury homes has been a key trend that is expected to continue. In addition, the residential business maintains its consistent performance, with new sales bookings of Rs 2040 crores, representing a 101% year-on-year increase. The Camellias company’s luxury product offering remained the preferred destination across the super luxury segment and delivered a healthy sales booking of Rs 350 crores during the quarter. The company’s new product remains to continue contributing to the sale of Rs 1532 crores during the quarter, which was approximately 75%.

DLF Cyber City Developers Limited consolidated results for Q1 Financial Year ’ witnessed steady performance across the portfolio. The retail business continued its growth path and delivered healthy growth. Rental income grew by 20% year-on-year, driven by a strong growth in retail revenue. Consolidated revenue of Rs. 1,260 crores as compared to Rs. 1,041 crores last year, reflecting a21% year-on-year growth. EBITDA at Rs.961 crores, reflecting a year-on-year growth of 18%, and net profit at Rs.323 crores, reflecting a year-on-year growth of 60%

Retail businesses continue to exhibit steady growth with an improvement in consumption trends. Organized retail is expected to gain further share with a strong preference for quality assets at established locations. Given these tailwinds, company remain committed to growing the portfolio across multiple geographies and retail presence in the next few years. Companys strong balance sheet and healthy cash flow generation, coupled with a diversified pipeline of quality offerings, provide a unique opportunity to leverage this up cycle.


The EPS was Rs. 1.90, compared to Rs. 1.36 in June 2021. The ROCE and ROE were at 4.84% and 4.61%, respectively. The stock was trading at a P/E ratio of 54.3x. The company’s asset turnover ratio was 0.11x. The scrip is trading at Rs.395, up by 2.61% on Tuesday.


Astral Pipes posted a net profit of Rs. 96 Cr.

Dr. Lal Pathlabs reported a net profit of Rs. 58 Cr.

Dr. Lal Pathlabs reported a net profit of Rs. 58 Cr.

Dr. Lal Pathlabs reported a consolidated net profit declined 57% to Rs 58 crore for the first quarter June 30. The company had reported a net profit of Rs 134 crore in the April-June period of the last fiscal. The revenue from operations declined to Rs 503 crore in June 2022 from Rs 607 crore in June 2021. In Q1FY23, DLPL served 69 million patients and collected 180 million non-Covid-19 samples. The company declared an interim dividend of Rs. 6/share.

The diagnostic sector will experience tremendous growth.

Dr. Lal PathLabs reported healthy core business performance, driven by increased penetration, digitalization, enhanced testing facilities, and increased home sampling. Swasth fit contributed to 21% of total revenue; packaged tests accounted for 30% of sales. The company targets pre-Covid-19 level growth of 13-15% over the year and strives to double its volumes over 2-3 years.

The Indian diagnostic sector holds significant growth potential, as was evident by the industry’s response to the pandemic, and organised national brands have met these challenges without raising prices. The industry has seen the entry of many new competitors and the growth of the organised sector, both due to overall market growth as well as an accelerated shift from the unorganised to the organised segment.

The customers appreciate the certainty of quality and effectiveness that Dr. Lal PathLabs provides, which the unorganised players will not be able to successfully deliver. In the future, they will build and drive growth through organic expansion of lab and collection centre infrastructure, inorganic expansion, use of technology to improve customer experience, and provision of value-added services at one level while driving internal process efficiencies at another level to achieve productivity. On the organic front, the initiative of the creation of Hub Labs has started yielding good results, especially in the northern part of India. This will also give the capability to go deeper into Tier-II and Tier-III towns in large states like UP, Bihar, etc.


Dr. Lal Pathlabs, EPS was at Rs.6.2 in June 2022, down from Rs.15.74 in June 2021. The ROCE and ROE were at 29.4% and 25.1%, respectively. The stock was trading at a P/E ratio of 73.4x. The debt-to-equity ratio was 0.35x, whereas the asset turnover ratio was 1.04x. The interest coverage ratio stood at 12x. The scrip is trading at Rs.2389, down by 1.89% on Wednesday.

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

Tata Steel Ltd Q1FY24 results updates

Jindal Stainless Steel reported a PAT of Rs. 329 crores.

Jindal Stainless Steel reported a PAT of Rs. 329 crores.
JSL reported a steady operational performance for the quarter,with a consolidated PAT of Rs.329 crore. JSL’s standalone operations reported a sales volume of 235530 tonnes and a total revenue of Rs.5336 crores. The standalone operations EBITDA/tonne came in at 22216/tonne, and the consolidated top line for the quarter was at Rs. 5474 crores, up 36% YoY but down 17% QoQ. For Q1FY23, JSL reported consolidated EBITDA of Rs. 549 crore, down 9% YoY and 35% QoQ. On a consolidated basis, JSL reported an effective tax rate of 23%, compared to 33% in Q1FY23. Hence, due to a lower-than-expected effective tax rate, JSL’s consolidated PAT came in higher. JSL’s consolidated PAT for Q1FY23 was at 329 crore, up 8% YoY but down 56% QoQ.

JUSL to be acquired:
The options are being reconsidered for the blast furnace capex, which was earlier considered in JUSL. The management was clear on the cost competitiveness of the pig iron route for 400 series production along with liquid ferrochrome. However, management was aware of the potential future balance-sheet stress caused by the investment, as well as the related-party transactions and roadblocks to a potential future merger. The management wants to minimise related-party transactions and is also looking at likely options for JSL to acquire JUSL and thereby maintain the favourable tenure of term loans present in JSL’s books.
There is a huge risk from Indonesian exports in the 200/300 series in India. Even for the industries linked to approval/accreditation, depending on the extent of interest from the Indonesian players, we see a possibility of imports increasing substantially. The government has already removed the anti-dumping duty on stainless steel imports (Indonesia is an FTT partner, and does not charge any import duty on stainless steel imports). Perhaps, given the size of the market, policy support may not be as readily forthcoming for stainless steel as it is for steel.

The EPS was Rs. 6.11 in the June quarter versus Rs. 14.00 in March 2022 and Rs. 6.21 in June 2022. The stock is trading at a PE ratio of 3.70x. The EBITDA was at 3.22x. The ROCE and ROE stood at 37.8% and 45.1%, respectively. The stock was trading at Rs.134 on September 8th, up by 0.90%.



Nestle India reported a net profit of Rs. 515 crores:

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

Vodafone Idea reported lower margins-

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.


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%.

Bharti Airtel had another solid quarter.

Bharti Airtel had another solid quarter.

Bharti Airtel had another solid quarter.

Bharti Airtel reported a 466% surge in consolidated net profit at Rs 1,607 crore for the quarter ending June 30, 2022, boosted by subscriber additions. It reported a net profit of Rs 284 crore in the year-ago period. The company’s consolidated revenue from operations rose 21% to Rs 32,805 crore in Q1FY23 as compared to Rs 27,064 crore in Q1FY22. In India, mobile services revenue increased 27% year on year to Rs 18,220 crore in the first quarter, up from Rs 14,305.6 crore. The digital TV customer base stood at 17.4 million in Q1FY2023.

Acquisition of 5G will raise the bar for innovation.

The company’s average revenue per user (ARPU) was Rs 183 in Q1FY23, against Rs 146 in Q1FY22. The ARPU of rivals Reliance Jio and Vodafone Idea for the same period was Rs 175.7 and Rs 128, respectively. The business continued to grow exponentially, up 41.9% YoY, led by healthy customer additions. The company mentioned in November that mobile ARPU needed to be at Rs 200 and ultimately at Rs 300 for a financially healthy business model.

The company continued to deliver strong and sustained growth at 4.5% QoQ. The EBITDA margins were at 50.6%. The enterprise and home businesses have strong momentum and delivered strong double-digit growth, improving the diversity of the overall portfolio. Airtel’s strategy of winning with quality customers continues to yield well.

As India gets ready to launch 5G, they are well positioned to raise the bar on innovation. They are also confident in meeting the emerging needs of discerning customers looking for speed, coverage, and latency. The astute spectrum strategy over the last few years, as they have bolstered the mid-band spectrum, is designed to deliver the best experience at the lowest total cost of ownership. The firm’s 4G customers rose by 20.8 million YOY and by 4.5 million QOQ. Mobile phone data consumption rose by 16.6% YoY. Monthly consumption per mobile data customer was 19.5 GB.

Airtel will lead India’s 5G revolution by acquiring an ideal spectrum bank at the lowest possible cost for the best 5G experience and 100x capacity enhancement; purchased 19,867.8 MHz spectrum in the recently concluded 5G spectrum auction for Rs 43,040 crore;

The company has been raising money to fund its digital ambitions, including developing home broadband, data centers, and cloud adoption as it prepares to launch its next-generation 5G services in the country.


The EPS in the June quarter was Rs. 2.73, compared to Rs. 3.41 in the March quarter and 0.48 in June 2021. The stock is trading at a PE ratio of 86.2x. The EBITDA was at 9.13x with an ROE and ROCE of 12.0% and 5.86%. The company has a low-interest coverage ratio of 1.75x. The stock was trading at Rs.740 on September 5th, up by 0.63%.

Adani Ports made a net profit of Rs. 1072 crore.

Adani Ports made a net profit of Rs. 1072 crore.

Adani Ports made a net profit of Rs. 1072 crore.

Adani Ports and Special Economic Zone (APSEZ) posted a 16.09% drop in consolidated net profit at 1,072.38 crore for the quarter ended Q1FY23 compared to 1,277.99 crore in the same period last year. However, Q1 PAT climbed 4.72% from 1,024 crore in the preceding quarter. The growth was double-digit sequentially. Approximately 70% of revenues are contributed by its port operations. The remainder is led by harbour, logistics, and others, which account for 11%, 7%, and 5%, respectively.

Strong growth with inorganic acquisition

There was a higher realisation that bulk volume lifted operational performance. The revenues remained flat YoY at 4638 crore. As margins expanded, absolute EBITDA increased 13% to 3006 crores. However, PAT de-grew 19% to 1072 crore due to a forex loss of 1201 crore. The strong organic growth was coupled with the efficient incorporation of inorganic acquisitions. APSEZ, by integrating logistics operations both vertically and horizontally, has built a strong moat around the business.

As APSEZ embarks on becoming India’s largest integrated transport utility company by 2030, it is strengthening its capabilities in all logistics segments. It will offer end-to-end service to its customers, thereby capturing a higher wallet share and also making the cargo sticky in nature. DFC connectivity to Mundra (medium-term normalization) to provide faster port evacuation and transit time.

The management expects thermal and coking coal volumes to grow in FY23 in spite of comfortable thermal coal inventory levels in power plants. Construction on 4.5 million square feet of warehousing capacity has begun in Mundra, Moraiya, Ranoli, and Palwal. GPWIS cargo volumes have doubled YoY to 3.11 MMT and APSEZ has ordered more trains under the framework (total order count at 37)  Gangavaram NCLT approval is expected to be completed by the current The quarter following which the numbers would be consolidated with APSEZ, beginning April 1, 2021.The management is not seeing any slowdown in any segment and expects its run rate of 30 MMT per month to continue in FY22.

During Q1, the management took a price hike, renegotiated contracts with its customers, and expects the same to flow from Q2 onwards  Overall, the management has guided for a 1 to 1.5 pp incremental rise in EBITDA margins in the medium to long term. In spite of strong growth in its rail Exim volumes, the management is still keen on the Concor acquisition as it expects higher penetration and more Exim movement going forward. The management would soon come up with its strategy around last-mile logistics.


The company has an EPS of Rs. 5.08 for the period ended June 30, 2022 as compared to Rs. 6.40 for the period ended June 30, 2021. The ROCE and ROE stood at 11.2% and 14.7%, respectively. The stock is trading at a P/E of 37.1x and a 5-year P/E of 19.6x. The EBITDA multiple is 19.9x and has an interest coverage ratio of 3.14x. The price to book ratio is at 4.69x. The scrip was trading at Rs.850, up by 1.46% on Friday.

Tata Motor Ltd Q1FY24 results updates

Eicher Motors reported a net profit of Rs.610 Cr.

Eicher Motors reported a net profit of Rs.610 Cr.

Eicher Motors reported a 257.52% year-on-year (YoY) rise in consolidated net profit at Rs 610.66 crore compared with Rs 237.13 crore in the same quarter last year. The consolidated revenue from operations rose 71.18% YoY to Rs 3,325.80 crore from Rs 1,942.84 crore in the corresponding quarter last year. There are huge prospects for growth in exports. The volume contribution to the total has been increasing from 2.3% in FY17 to 13.5% in FY22 to more than 15% in Q1FY23. This is due to the increase in network and product portfolio expansion. In our opinion, the export opportunity is huge and management is serious about growing this piece of the business. We project faster export growth in the coming years.

Enormous growth potential:

Volumes will be supported by new domestic models and improved supply. The new launches like Scram 411 and Hunter 350 are clearly targeting a larger young audience. The Hunter model is likely to bring in more footfall in the showroom due to its accessible pricing and good looks. Just in time for the festival season, chip supplies are improving, network expansion is the primary focus, and newly launched models will increase volume. The trend is clear: EBITDA margin has risen from 20.2% in Q3 FY22 to 24.5% in Q1 FY23, an increase from 20.2% in Q3 FY22. They have strong pricing power in the market. We expect this uptrend to continue due to the benefits of softness in commodity prices, higher operating leverage, and better geographic and product mix. VECV is entering its best days for the next two years. The management sounded extremely optimistic about the CV industry’s high growth prospects in the coming two years. VECV is gaining market share led by network expansion, product launches, and service.


The company has reported an EPS of Rs.22.33 for the period ended June 30, 2022 as compared to Rs.8.67 for the period ended June 30, 2021. The ROCE and ROE stood at 18.3% and 14.0%, respectively. The stock is trading at a P/E of 45.7x, which is not expensive, and a 5-year P/E of 39.5x. The EVEBITDA multiple is 29.0x and has an interest coverage ratio of 153x. The price to book ratio is at 7.49x, which has a book value of Rs.94. The scrip was trading at Rs.3426, up by 0.41% on Friday.

RIL Q2FY24 results updates

Reliance Industries earned a revenue of Rs. 223,113 cr.

Reliance Industries earned a revenue of Rs. 223,113 cr.

During the June 2022 quarter, Reliance Industries posted a consolidated net profit of 17,955 crore, up from 12,273 crore in June 2021, up by 46.3%. The revenue jumped by 54.5% to 223,113 crore from 144,372 crore in Q1 last year. Meanwhile, EBITDA was at 37,997 crore in Q1 FY23 as against 23,368 crore in Q1 FY22 and 31,366 crore in Q4 FY22. The margin improved to 17.3% compared to 16.7% in Q1 FY22 and 15.1% in Q4 FY22.

Best quarterly performance for Jio and Retail:

This was facilitated by higher contributions from fashion and lifestyle and consumer electronics segment sales. The segment added nearly 792 stores, bringing its total store count to 15,866 stores at the end of Q1FY23. Digital and new commerce increased twofold year on year and now account for 19% of total revenue. The company’s own-brand consumer electronics products portfolio continues to scale up. In Q1 FY23, sales of in-house consumer electronic brands increased by 6.0x year on year. Fashion and lifestyle have experienced strong growth in sales, driven by regional festivities and promotions. The average bill value (ABV) and conversion ratio are at an all-time high in this segment.

With increasing partnerships, Ajio’s online sales platform added nearly 660 brands in the quarter. Ajio Luxe sales rose by 6.0x YoY with the presence of 400 brands and over 38,000 options on the Ajio platform. Its in-house brands contributed 30% of total sales in the category in Q1FY23 vs. 27.0% in Q1FY22. It introduced 14 new in-house brands in Q1FY23. In Q1FY23, urban ladder and pharma retail sales increased 2.0x year on year.The merchant base has increased by 50% YoY and Reliance Retail has ramped up in 2,400 towns.

RIL is a preferred downstream player with a strong growth outlook for consumer-centered businesses, and further value unlocking in digital and retail businesses would add to shareholders’ returns in the coming years. Expecting the 5G network to further skew the telecom market in favour of Jio, Its growth prospects look promising, led by subscriber accumulation post churn and regular tariff surg. The launch of 5G is to be looked forward to. RIL is an ideal pick given its dominant position across business verticals. However, we expect 17% annual growth in EBITDA over FY22-FY25, driven by a 6% CAGR for the cyclical business and a 26% CAGR for the consumer business. The increase in value of energy business will offsets decrease in consumer business.

Jio stands to garner connectivity and IOT revenues along with a significant share of the market. Jio’s growth prospects look promising, led by subscriber additions post churn and regular tariff hikes. The company will include the migration of high-end customers from competitors due to superior user experience and balance from the upgrade to 5G smartphones.


The company has reported an EPS of Rs. 26.54 for the period ended June 30, 2022 as compared to Rs. 19.36 for the period ended June 30, 2021. The ROCE and ROE stood at 9.42% and 8.1%, respectively. The stock is trading at a P/E of 26.9x, which is not expensive, and a 5-year P/E of 17.9x. The EBITDA multiple is 14.6x and has an interest coverage ratio of 7.01x. The price to book ratio is at 2.22x, which has a book value of Rs.1152. The scrip was trading at Rs.2560, down by 2.94% on Thursday.

CCL reported a net profit of Rs. 30 crore.

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.


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.