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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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BHEL Posts Strong Q2 FY26 Comeback as Profit Rebounds
Business, Editorials, Markets, Research Reports - August 25, 2022

Bhageria India reported a net profit of Rs. 2.38 cr.

Bhageria India reported a net profit of Rs. 2.38 cr.

The net sales were at Rs 108.12 crore in June 2022, down 4.33% from Rs 113.02 crore in June 2021. The quarterly net profit stood at Rs. 2.38 crore in June 2022, down 81.65% from Rs. 12.96 crore in June 2021. The EBITDA stands at Rs. 11.99 crore in June 2022, down 49.83% from Rs. 23.90 crore in June 2021.

Are retained earnings used effectively?

The company earned revenue of Rs.99.59 Cr from the chemical segment, Rs.8 Cr. from solar power and Rs.0.4 Cr. from other segments for the year ending in March 2021. The EBIT from the chemical segment was Rs. 2.43 Cr., Rs. 3.75 Cr. from the solar power segment and Rs. 0.86 from other. The company incurred a finance cost of Rs. 1.08 cr. and other unallocated expenditure of Rs. 2.38 cr. The surplus current assets suggest that Bhageria Industries has a conservative balance sheet and could probably eliminate its debt without much difficulty. Succinctly put, Bhageria Industries boasts net cash, so it’s fair to say it does not have a heavy debt load.

Any business needs free cash flow to pay off debt; accounting profits just don’t cut it. Bhageria Industries has net cash on the balance sheet, but it is still interesting to look at how well the business converts its earnings before interest and tax (EBIT) to free cash flow, because that will influence both its need for, and its capacity to manage debt. Bhageria Industries created free cash flow of 14% of its EBIT. That level of cash conversion undermines its ability to manage and pay down debt. While it is always sensible to investigate a company’s debt, in this case, Bhageria Industries has 152.4m in net cash and a decent-looking balance sheet. So we are not troubled with Bhageria Industries’s debt use. However, not all investment risk resides on the balance sheet.

Valuations:

EPS is at Rs.0.55 for the June quarter as compared to Rs.4.17 in the March quarter and Rs.2.39 in the June 2021 quarter. The ROCE and ROE are at 19.2% and 14.7%, respectively. The EBITDA stood at 6.48x while the price to book ratio was at 1.46x. The stock was trading at a P/E ratio of 12.3x. The scrip was at Rs.170 on Thursday, up by 0.18%.

 

 

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TSC India Posts Strong Q1 2026 Results: Revenue and Profit Surge Fuel Optimism
Markets, Real Estate, Result Updates - August 1, 2022

Aurum Proptech will deliver a strong growth

Aurum Proptech will deliver a strong growth

Aurum Proptech recorded revenue of Rs. 14.64 Cr. in Q1 FY23 compared to NIL in Q1 FY22 and reported 8.1 Cr. in Q4 FY22 with a change of 78.9%. The company realised a loss of Rs. 6.85 Cr. in Q1 FY23 compared to a loss of Rs. 4.89 Cr. sequentially. EBITDA was at a loss of Rs. 5.69 Cr for the quarter compared to a loss of Rs. 6.22 in March 2022. Up by 9.3%, they managed to reduce their losses. The SAAS segment contributed revenue of Rs. 5.11 Cr. and the Real Estate as a Service (RAAS) contributed Rs. 9.53 Cr. The company reported other expenses of Rs. 11.27 Cr., which is a main negative point for the company.

 

Robust growth is expected from Helloworld in FY23.

Aurum Proptech now has five subsidiaries. K2V2 contributed around 9.8 Cr of the total revenue, whereas Helloworld recorded a total of 2.34 Cr. in the 15 days of its incorporation and is expected to give revenue of Rs. 15 Cr. of its own by the end of the current fiscal year. The management is optimistic about its future growth and has already tied up with the top developers. The company is operational in 15 cities and is currently mainly focused on Pune, Mumbai, Bangalore, and Delhi.

They received approval for two wholly owned subsidiaries, namely the Aurum software and solutions. The company calls for money from its rights issues by the end of FY23. We believe the stock at CMP still offers a risk-free upside of about 20% return (in three months) for any funds that do not pay any taxation on dividend income and thus offers a good special situation opportunity.

 

Valuations:

The ROE is at -6.50 % and ROCE at -9.04%. The debt to equity ratio is 0.04, which is a good sign as the company won’t have any short-term or long-term liquidity problems. The current quarter’s EPS was Rs. 1.93, with a P/E ratio of 14.74. The scrip was trading at Rs. 109 on Monday, up by 0.51 points. 

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Business, Markets, Result Updates - July 30, 2022

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.

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Contraction in Banking Stocks to around 6 percent due to RBI's repo rate cut
Banking, Business, Markets, Result Updates - July 21, 2022

AU Small Finance Bank Q1 results were up by 32% and down 23% sequentially.

AU Small Finance Bank Q1 results were up by 32% and down 23% sequentially.

 

AU Small Finance Bank, a Jaipur-based lender, reported a net profit of Rs. 268 crores with a jump of 32% from 203 crores YOY but was down by 23% sequentially from Rs. 346 crores in March 2022. This result was achieved on account of an improvement in interest income and a sharp fall in provisions. The bank made provisions of Rs. 38 Cr., lower by 81% from a year ago on account of improvement in the asset quality and COVID-19 related provisions.

The bank’s PPoP was at Rs. 394 Cr, down by 18% as other incomes fell and operating expenses rose. The other income fell to Rs. 159 Cr. and was down by 26% due to losses of Rs. 55 Cr. in the treasury operations. The net interest income was reported to have increased by 35% from Rs.924Cr. to Rs.976Cr. The quarterly net interest margin (NIM) was lower by 1 bib from 6% to 5.9% YOY. It intends to maintain the NIM in the current fiscal year due to the rise in floating rates, which is 25% of the book. The asset quality for the bank also improved. Net NPS was at 0.56% on 30 June, down from 2.26% in Q1 FY23. The provision coverage ratio rose from 49% earlier to 72% by June 30. The AUM grew to Rs. 50161 Cr. with a jump of 37% YOY. The deposits witnessed a growth of 48% to Rs. 54,631 Cr. in the June quarter. The company’s market share is only 3% in the banking system and is optimistic about its growth. Almost 90% of the portfolio is secured, which is a good sign.

The banks’ (CAR) stood at 19.4% versus 23.1% in June 2021. The EPS was recorded at Rs. 4.25, which was down from Rs. 11.02 in the previous quarter. The key risks for the bank are surging inflation, resulting in widening losses; exposure to the informal sector; regional dependence on one state; and a slowdown in the economy. However, since the bank primarily serves the underserved category like farmers, low-wage earners, and the informal sector, it provides them with pricing power. As the monsoon was on time, it is likely to be favorable for the bank, since the farmers will be in a better position to repay the debt.

The script gave a 3-year return of 75.01% as compared to the 44.23% return given by the Nifty 100. The market cap for the company is Rs. 37,4111Cr. The stock is currently trading at Rs. 593.65, up by 16 points, or 2.84%, and has touched an intraday high of Rs. 601 and a low of Rs. 570. The 52-week high was at Rs. 732.98 and the 52-week low was at Rs. 462.

 

 

 

Mindtree Q1 FY23 Result Update: Net Profit jumps 37% YoY to Rs. 472 crores.

Tata Motors, Jaguar Land Rover Q1 sale at 78825 units down by 37%.

 

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ICICI Prudential Life Insurance Q1 FY23 result update
Business, Market News, Markets, Result Updates - July 18, 2022

ICICI Prudential Life Insurance Q1 update.

ICICI Prudential Life Insurance Q1 FY23 result update.

ICICI Prudential Life Insurance Company posted a net profit of Rs. 156Cr. in Q1FY23, on Saturday, compared to a loss of Rs.186Cr. in Q1FY22. The growth was primarily on account of lower claims and provisions due to Covid-19.

The AUM for the company grew by 3.1% to Rs. 2, 30,072Cr. The 13-month persistency ratio improved to 85.5% while 43-month ratio increased from 63.4% to 65.0% in FY23. As per the Management, the company 4P’s strategy guided by elements like Premium growth, Protection focus, Persistency improvement, and Productivity enhancement is on track with a target of doubling the FY19 value of the new business (VNB).

The business reported a negative investment income of Rs.6,884 Cr. in Q1FY23 versus a positive investment income of Rs.9,0609 Cr. in Q1 FY22. The total expenses incurred increased by 16.1% to Rs.1,411 Cr. in Q1 FY23 from Rs.1215 Cr. in FY22. The APE (Annual Premium Equivalent) witnessed a growth of 24.7% o Rs.1,520Cr. compared to Rs.1,219Cr. in FY22. The VNB was at Rs.471Cr a growth of 31% in FY23 which was previous at 28.0%, on account of a shift in the underlying product mix.

The business premium stood at Rs.3184 Cr. with a growth of 24.4% as compared to Rs.2,559Cr. The annuity APE rose to Rs.98Cr. in FY23 with robust growth of Rs.69% which was at Rs.58Cr. Savings APE was at Rs.892Cr. to Rs.1092Cr for the same period.
The company’s TWRP ratio (total weighted received premium) for savings business and the total cost was at 16.9% and 23.8% respectively. The APE of new business is significant and expenses will not affect margins. The ICICI bank-backed insurance company has a debt-equity mix of 54:46 as of 30 June 2022. The company has zero NPA with 98% of debt instruments being AAA rated and treasury bonds. The claims and benefits payout decreased by 2.8% to Rs.5,512Cr. in FY23.

The Company strives to target untouched customer segments and expand in distribution footprint which enabled them to maintain its market leader position and acquired a market share of 15.8% in Q1 FY23. The net worth is at Rs.9,053 Cr and a solvency ratio of 203.6% against the regulatory requirement of 150%. ICICI Bank and Prudential Corporation holdings promote ICICI Prudential Life Insurance.

The continued supply chain management, ongoing geopolitical crisis, spike in commodity prices, the surge in inflation, and net outflows from the capital market all the factors have directly affected the unit link business. The scrip closed at Rs. 520.55 on Monday, up by 0.67% or 3.45 points. The market cap of the company is Rs.74,246Cr. It touched an intraday high of Rs.527.55 and a low of Rs.514.30.

 

 

Indigo to “rationalise” salaries of technicians following mass sick leave.

Loan growth, higher margins, and lower costs to drive bank bottom lines in Q1.

NBFCs and HFCs securitization volumes almost doubled.

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Bharti Airtel Stock Hits Fresh 52-Week High on Strong Market Momentum
Markets, Result Updates - July 15, 2022

Spandana Spoorty: Q4FY22 result update

Spandana Spoorty: Q4FY22 result update.

Spandana Spoorty, a microfinance company, posted its March 22. The firm witnessed a 50% jump in PAT at Rs. 75 Cr. for the quarter ended in March 2022 compared to Rs. 49.3 Cr in March FY21. The firm’s consolidated total income was Rs. 1480 crore, up from Rs. 1505.6 crore in FY21 YOY. The total expenses for the company grew from Rs. 723 Cr. in FY21 to Rs. 1141 Cr. in FY22 YOY. The delay in publishing the results is due to management-level issues.

FY22 was an action-packed year for the company, starting with eliminating operational inefficiency and rolling out Vision 2025. The remedial measures included: i) appointing an experienced core team manager; ii) settling disruptions with the former MD and CEO by paying a one-time amount. iii) reorganising business processes in accordance with new RBI guidelines. iv) developing Vision 2025 with an ROA  of at least 4.5% and an ROCE of at least 20%.

Q1FY23 has witnessed an improvement in collection efficiency and asset quality. AUM growth continued to remain weak due to changes in the management team and stood at 6,581CR, which was 19% down YOY. The borrower base fell from Rs. 26 Cr. in Q3FY22 to Rs. 24 Cr. in Q4FY22. The average ticket size grew to Rs. 28,000 in Q4 compared to Rs. 25,849 in the previous quarter. The cost/income ratio increased to 69.8 in Q4 from 41.3 in FYQ3. due to the transition cost towards rocess of 40Cr. to the prior MD and CEO. AUM per branch moderated to 5.9Cr in Q4Fy22 due to muted disbursement. The asset quality deteriorated. GNPL was at 15.0%, NNPL was at 6.0% and PCR (Provision Coverage Ratio) was at 60.0% compared to 49.9% in Q3FY22. The liquidity for the company was adequate with Rs. 728 Cr in cash and cash equivalents for March 2022.

The microfinance industry is well poised to grow 4x over the next 8 years, helped by strong macro winds and economic growth. The company has a coverage of 24% in the rural areas and has a potential to cover 76.6%. The new MFI regulation will also help the company to accomplish its goals with new policy introduced. The firm intends to take a calibrated move in their refinements for new process and new products. 

The management expects AUM to reach Rs. 15000 Cr by FY2025.The company has identified 7 additional states with favourable factors for a quick surge in the microfinance book and places to grow organically in the existing states. The new states will avoid concentration and provide a paperless experience to their clients. As per the new plan, there will be approximately 1,500 branches; employee count will be around 12,500–13000; AUM/branch will be 10Cr. and 4 lakh loan clients and intends to have a secured 10%–15% secured book comprising of LAP, housing loans, gold loans etc.

The microfinance company is all set to meet the aspirations of rural India with a 2000CR–3000CR opportunity. Many analysts are bullish on the stock and expect it to be in the Rs. 500-Rs. 540 range by September 2023. The stock is currently trading at Rs.410 and has a market cap. of Rs.2,877Cr. The share price is down from its high of Rs. 727.40. The script opened at Rs.405 on Friday and touched an intraday low of Rs.403.

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Hero MotoCorp Ltd Q1 FY23 Result Updates.
Business, Market News, Markets, Result Updates - April 30, 2019

Hero MotorCorp's earnings hit speed bump. Q4FY19 results update

HeromotorCorp is the world's largest single two-wheeler manufacturer based in India. Also, the company is the worlds No. 1 two-wheeler brand in terms of unit volume sales. Hero MotorCorp has...
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Equity Right
Business, Market News, Markets, Result Updates - April 30, 2019

Biocon Ltd Q4FY19 results reports robust profit growth

Biocon Ltd is the largest and fully-integrated biopharmaceutical company in India. The company has developed and taken a range of novel biologics, differentiated Small Molecules, biosimilar, affordable Recombinant Human Insulin,...
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Alkem Labs Q2 FY26: Strong 17% Revenue Growth and Healthy Profit Gains Across India & Global Markets
Research, Result Updates - March 5, 2019

Sun Pharma Ltd. result update for Q3FY19

Sun Pharmaceutical is 5th in the speciality generic segment globally and one of the top pharmaceutical company in India. With patients spread across 150 countries globally. They have 42 manufacturing...
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