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

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

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

Astral posted consolidated revenue growth of 73.2% YoY in Q1FY23, majorly led by growth in plastic and adhesive. In the plastics segment, the company reported volume growth of 48.5% YoY, which was on par with the industry growth, indicating that Astral gained market share in the plumbing segment. The company’s gross margins fell by 717bps YoY due to a fall in PVC prices, leading to an inventory loss of Rs 25 Cr. The raw material and PVC prices are falling continuously and reached Rs 102/kg in July ’22 from Rs 120/kg in April-Jun 22. The company’s EBITDA margins fell by 433bps YoY due to a fall in its gross operating profitability. However, its reported PAT grew by 27.0% YoY at Rs. 96 Cr. as compared to sales due to a fall in operating profitability.

Volume expansion to boost growth:

Astral has reported volume growth of 10% in the piping segment, the highest among peers in the last 4 years. This reflects that Astral is gaining market share in the plumbing segment. The raw material and PVC prices have been falling continuously, which would help in improving the gross margins of the company after inventory is stabilised. Astral could deliver consolidated margins in the range of 17% to 18% in the upcoming quarters. Furthermore, Astral’s foray into valves, resins, sanitary ware, and tanks would add revenue growth in the upcoming years.

The company estimates that newly launched products and segments, including tanks, drain-pro, ball-valve, sanitary ware and faucets, and paint business, will be able to generate revenue of Rs 1,500 Cr over the next 5 years. Astral has invested Rs 1,000 crores in capex over the last five years, with the funds being used in the coming years. Therefore, the company is confident that it will be able to grow not only in its existing product portfolio but also accrue additional revenue of Rs 1,500 Cr in the next 4–5 years by leveraging its new products and categories. In April ’22, the company entered into a definitive agreement to acquire a controlling 51% stake in the operating business of Gem Paints Private Limited. ‘Gem’ paints have been manufacturing industrial and decorative coatings in South India.

Valuations:

The EPS was Rs. 4.42, compared to Rs.3.68 in June 2021. The ROCE and ROE were at 29.6% and 22.6%, respectively. The stock was trading at a P/E ratio of 94.3x. The company has an asset turnover ratio was 1.45x.The scrip is trading at Rs.2339, down by 6.65% on Friday.

Kaveri Seeds reported a net profit of Rs. 240 Cr.

Kaveri Seeds reported a net profit of Rs. 240 Cr.

Kaveri Seeds reported a net profit of Rs. 240 Cr.

Kaveri Seeds reported consolidated revenue increased by 9% YoY to 690 Cr., led by higher cotton acreage and improved volumes. The EBITDA, at 250 Cr., improved by 18.3% YoY, while PAT grew 19.1% YoY to 240 Cr. The EBITDA margin improved to 37.1%. Cotton volumes increased by 8.3% YoY while revenue fell by 3.8%. The non-cotton volumes improved by 9.8% while revenue increased by 10% YoY. The company intends to improve volume and revenue for the rest of FY23 with double-digit growth in this segments.

Volume growth aids the topline:

The use of illegal cotton seeds has come down as organised players have gained market share in the cotton seed segment, which has also led to an increase in revenue. The new product launches continued in the quarter as the company introduced newer products across all segments. The new products in the North American market include KCH111, VIPLAV, Money Maker, and KCH 9333. The selected rice volumes grew by 15.2% in FY23. Hybrid rice volumes increased by 6.1% and revenue by 1.0%. The introduction of new hybrids such as the 425, 471, 729, and 473 fueled the segment’s rapid growth. The vegetable seed sales volume increased by 25.9% while revenue decreased by 2.5%. The company is expecting double-digit growth in maize, sunflower, vegetables, and rice in the second half of the year. Farmers’ sentiment has also been influenced by the delay in the onset of the monsoon across India until mid-June.

The company continues to see encouraging growth in vegetable seed acreage, revenue growth, and volumes. The overall exports of KSCL have contributed to 19 Cr. in revenues. The management expects exports to contribute a significant share in the next year. The high market shares and cotton prices drove increased cotton acreage during the current year. Increased competition in the cotton segment led to muted growth due to smaller companies with low realisations crowding the market, which will eventually result in lower overall realisations and higher discounts given during the quarter. The price of cotton per packet was up by 40 YoY.

The company remains confident that discount reversals will happen next year due to lower illegal BT cotton share and overall better market sentiment, despite not being able to realise prices. There is a decrease in acreage due to rain shortages. The higher prices will result in more acres in the cotton crop, which is a major risk for the company.

KSCL’s earnings seem to have normalised and are likely to improve for the rest of FY23. The contribution from the non-cotton segment is improving, and the division is expected to post double-digit growth. The leadership position, R&D focus, healthy product pipeline, presence across crop categories and strong distribution network will act as key levers for growth over the long term. The increasing contribution from the higher-growth projected non-cotton segment will aid the performance. There is a decrease in acreage due to rain shortages. The higher prices will reduce acres in the cotton crop.

Valuations:

In June 2022, the EPS was Rs. 41.27, compared to Rs. 33.44 in June 2021. The ROCE and ROE were at 17.1% and 16.3%, respectively. The stock was trading at a P/E ratio of 10.9x. The company is debt free, and the asset turnover ratio was 0.48x. The scrip is trading at Rs.461, down by 3.05% on Friday.

Tarsons Products earned Rs. 29 crores in net profit.

Tarsons Products earned Rs. 29 crores in net profit.

Tarsons Products earned Rs. 29 crores in net profit.

On the high COVID-led base for Q1FY22, revenues fell 0.4% year on year. The total revenue was Rs 85 Cr and the net profit was Rs 29 Cr on a consolidated basis. The company reported a standalone revenue of Rs. 69 crore and a net profit of Rs. 20 crore.The operating profit was recorded at Rs. 44 Cr., with a pre-tax income of Rs. 39 Cr.

Margins shrink.

Domestic business fell around 6% YoY and 20% QoQ. The sequential decline was due to seasonality, with Q1 tending to be the weakest quarter. The company took a price hike in Q1FY23, which will begin to reflect in the next few quarters. The export business grew 11.1% YoY. This, coupled with elevated raw material prices, resulted in dragging gross margin down by 280bps YoY to 79.1%. The SG&A expenses grew 20.7% YoY, led by higher freight and promotion expenses. As a result, the EBITDA margin fell 760 basis points year on year (-680 basis points quarter on quarter) to 45.4%. The company expects to maintain healthy margins in the coming years thanks to improved product mix, increased contribution from new products, and in-house sterilisation, partially offset by higher costs associated with the start-up of new plants.

The PCR has received a good response from the customers in terms of quality. Specialised resin prices have stabilised, whereas packaging and paper costs have started declining. The revenues will be driven by growth in both domestic and export markets. We expect the company to maintain healthy margins in the coming years. The increased market share and strong growth in end-user industries will benefit the company. The major risk for the company is intensified competition and disruption in the distribution network.

Valuations:

The EPS was Rs. 5.54. The ROCE and ROE were at 35.3% and 27.4%, respectively. The stock was trading at a P/E ratio of 46x. The debt-to-equity ratio was 0.04x, whereas the asset turnover ratio was 0.72x. The interest coverage ratio stood at 33x. The scrip was trading at Rs.870, up by 1.02% on Thursday.

Control Print declared a strong set of Q1FY23 results.

Control Print declared a strong set of Q1FY23 results.

Control Print declared a strong set of Q1FY23 results.

The key highlight for the quarter was higher gross and EBIDTA margins YoY and QoQ on account of better product mix. The revenues grew by 19.7% YoY to 65.1 crore. Gross margins expanded QoQ by 440 bps to 63% vs. 58.7% in Q1FY22, which was mainly on account of a higher share of consumables in the overall revenues. which also led to EBIDTA margins coming in at 27.3% in Q1FY23 vs. 23.7% QoQ and 21.7% YoY. The PAT came in at 11.7 crore, up 105% YoY.

Strong financials:

The company, as of FY22, has an installed base of more than 15,000 printers. The consumable goods saw good traction during the quarter, while building materials, pharmaceuticals, and bearings also expanded their base. The company suffered a bit due to chip shortages and supply chain issues, but things will get back to normal in the coming 1-2 quarters. Dairy, healthcare, packaged food, cable, and FMCG also provided good contributions to business. The company is now focusing on developing software for customers so they can provide customized support to them. Telecalling is also helping companies acquire new customers. Imported raw materials account for 25-27% of total imports.The company has sold around 756 printers, of which CIJ printers are dominating the quantity with over 55–65% of the total share. The company is enjoying a higher installed base for printers as during COVID, printers’ sales were good. They offer seven different types of printers, of which CIJ and TIJ are the most common. The higher percentage of consumables in revenue resulted in higher gross and EBITDA margins. The current utilization level stands at 55-60 companies per hour. Capacity can be increased as needed.

Valuations:

The EPS was 7.40 rupees. The ROCE and ROE were at 18.8% and 15.3%, respectively. The stock was trading at a P/E ratio of 18.5x. The asset turnover ratio was 0.84x. The interest coverage ratio stood at 47.7x. The scrip was trading at Rs.486, up by 1.06% on Thursday.

Krishna Institute reported a net profit of Rs. 79 Cr.

Krishna Institute reported a net profit of Rs. 79 Cr.

Krishna Institute reported a net profit of Rs. 79 Cr.

KIMS reported a net profit of Rs. 79 Cr., and decrease from Rs. 83 Cr. in March 2022 and Rs. 92 Cr. year on year. The revenue in Q1 FY22-23 increased to Rs. 459 Cr from Rs. 372 Cr in March 2021 and Rs. 473 Cr in June 2021. The operating profit was Rs. 137 in the current quarter versus Rs. 114 Cr. in the March quarter.

The expansion will be done using a cluster-based approach.

KIMS has entered into a definitive agreement to acquire a 51% stake in Kingsway Hospitals, Nagpur. This is one of the largest private multi-specialty hospitals in Nagpur, promoted by the Sancheti family and a few eminent doctors. The hospital was commissioned in 2019 with a 334-bed capacity, expandable to 500 beds. KIMS will pay upfront Rs. 800 crore for its 51% stake, which will be used to repay existing debt. After this infusion, the JV will still be left with Rs 150 Cr of debt.

Acquisition cost works out to be Rs 90 lakh/bed.

The acquisition cost works out to be Rs 90 lakh/bed. The acquisition will be completed by Sept. Assuming the operating leverage plays out, Kingsway hospital will have 250 operational beds with a 53% occupancy. For FY22 and FY23 (4 months), Kingsway generated Rs. 1700 Cr. and Rs. 47,500 Cr. of revenues, respectively. ARPOB stands at Rs 29,000/day and has turned EBIDTA positive within 3 years of operation.

KIMS management intends to enhance occupancy from current levels, as well as bring operational efficiencies and synergies. The Kingsway hospital’s COGS stands at 28-29% of sales versus KIMS’s 22% of sales. The management sees profitability scaling up from current levels and reaching 15-20% OPM over the next 2-3 years. KIMS currently has net cash of Rs 200 Cr. and thereby, the Kingsway acquisition will be funded through internal accruals. Currently, the payor mix stands at 80%, comprising of cash plus insurance.

The management, in its cluster-based approach, is looking forward to replicating the AP and Telangana models in the Maharashtra and Karnataka regions. KIMS plans to commercialise 1500 beds over the next 4–5 years across Maharashtra and the Karnataka region. The expansion will be a combination of inorganic and greenfield expansion. More importantly, the company will partner with local doctors and consultants in specific micro-markets to generate better footfalls and achieve a faster breakeven. KIMS will have full control of decision-making in such a partnership.

Valuations:

In June 2022, the EPS was Rs. 8.74, compared to Rs. 10.08 in June 2021. The ROCE and ROE were at 14.8% and 15.6%, respectively. The stock was trading at a P/E ratio of 31.7x. The debt-to-equity ratio was 0.18x, whereas the asset turnover ratio was 0.99x. The interest coverage ratio stood at 29.5x. The scrip is trading at Rs.1241, down by 0.2% on Wednesday.

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 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.

Valuations:

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.

Kaveri Seeds reported a net profit of Rs. 240 Cr.

LT FOODS reported an operating profit of Rs.166 cr.

LT FOODS reported an operating profit of Rs.166 cr.

LT Foods (LTF’s) declared its Q1 FY22-23 results with revenue rising 32.8% YOY to Rs 1,611 crore. The operating profit was up by 27.7% to Rs 166 crore and net profit went up by 23.28% YOY. Its profit margins recovered sequentially but contracted YOY. The net profit stood at Rs. 95 Cr, compared to Rs. 76 Cr. in June 2021. The revenue growth was on account of accelerated brand investments across various segments.

Margins under pressure:

The gross margin improved by 110bps YoY, aided by an improvement in product mix and higher realisation. However, EBITDA margin fell by 40 basis points year on year to 10.0% due to higher freight costs and additional brand investments.LTF has a strong focus on a value-added portfolio, which will support margin improvement in the long-term. The Health & Convenience product segments, which include ready-to-eat products, contributed 2% in FY22, an improvement from 1.5% in FY21. The company targets a 150 bps expansion in EBITDA margin through product mix, operational efficiency, and scale.
The green energy initiatives by the company will provide production efficiency. We anticipate that EBITDA margins will moderate in the near future due to higher costs, but will gradually improve thereafter. LTF’s consistent efforts on brand strengthening and distribution network expansion, as well as region and product diversification via organic and inorganic routes, have been the growth strategy.The recent acquisition in the Jasmine rice segment will strengthen market share. The re-opening of HoReCa channels is also aiding growth, while LTF’s strong focus on value-added products will improve margins.

Valuations:

LT Foods’ EPS was at Rs. 2.80 in June 2022, up from Rs. 2.27 in June 2021. The ROCE and ROE were at 14.8% and 15.6%, respectively. The stock was trading at a P/E ratio of 9.47x. The debt to equity ratio was 0.66x, whereas the asset turnover ratio was at 1.28x. The interest coverage ratio stood at 7.55x. The scrip is trading at Rs. 91.6, up by 2.92% on Monday.

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

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

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

The net sales stood at Rs 380.53 crore in June 2022, up 13.58% from Rs 335.02 crore in June 2021. The quarterly net profit was at Rs. 38.70 crore in June 2022, down 44.1% from Rs. 69.23 crore in June 2021. The EBITDA stands at Rs. 61.23 crore in June 2022, down 32.98% from Rs. 91.36 crore in June 2021. The company incurred a total expense of Rs. 331 Cr as compared to Rs. 257 Cr in June 2021.

Increasing CNG and Hydrogen Consumption To Drive Cylinder Demand:

Everest Kanto Cylinders Ltd. is a major player in High Pressure Seamless Steel Gas Cylinders. It generated its major revenue from India, which was around 270 Cr with a profit of Rs. 44 Cr. while the USA contributed 57 Cr. with  profit of Rs.2 Cr. The UAE reported total revenue of Rs. 51 Cr. and a net profit of Rs. 8 Cr. They manufacture a wide range of cylinders for industrial gases, medical gases, fire fighting equipment, beverage industry accumulator shells, aerospace scientific research, and CNG-NGV cylinders.

The auto OEMs have significantly reduced diesel vehicle production due to rising costs and lower demand. The Vehicle Scrappage Policy is expect to drive new vehicle sales and CNG adoption. The STCs continue to convert diesel bus fleets to CNG. CNG prices in India are link to key international benchmarks and are at  significant discount to other liquid fuels. The CNG vehicles operate at a much lower cost per km.India is a participant in the global commitment to set net zero emission targets.

Over 30 countries have released hydrogen roadmaps, committed more than USD 70 billion in public funding, and total investments are expected to exceed USD 300 billion in hydrogen spending through 2030. The government of India notified its Green Hydrogen Policy with the aim of making India a Green Hydrogen Hub. This involves scaling up the use of domestically produced hydrogen to significantly reduce energy imports. The policy is in line with the country’s pledge to be carbon neutral by 2070. India’s hydrogen demand is expected to increase five-fold by 2050, from 6 MPTA in 2020. 80% of the demand in 2050 is expected to be green in nature.

Valuations:

Everest Kanto EPS has decreased to Rs. 3.45 in June 2022 from Rs. 6.17 in June 2021. The debt to equity ratio was 0.14x, whereas the asset turnover ratio was at 0.8x. The interest coverage ratio was at 33.6x compared to 6.3 in June 2021. This was due to a reduction in debt. The scrip is trading at Rs. 123, up by 5% on Monday.

 

 

 

HUL Q1 FY23 Result Update: HUL beats estimates with Rs 2,381-cr net profit in Q1; revenue up 19.6%

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

Tata Steel reported a net profit of Rs.7714 crores.

Tata Steel reported a net profit of Rs.7714 crores.

Tata Steel reported a PAT of Rs 7714 crore in Q4FY22, down from Rs 9,835 in Q4Y22. The company in Q1FY23 reported an EBITDA of Rs. 14973 crore, compared to an EBITDA of Rs. 15,891 crore in Q4FY22. During Q1FY22, the company recorded its EBITDA as Rs. 15,892 crore. Tata Steel announced a dividend of Rs 51 per equity share in FY22. Tata Steel’s PAT peaked in the second quarter and has fallen since then. The company’s PAT stood at Rs 12,548 crore in Q2FY22. The steel sector has been under pressure due to high input costs of coal and iron ore.

Plans to invest in India and Europe

Tata Steel plans to invest Rs 12,000 crore in India and Europe in FY23, TV Narendran, the company’s chief executive officer (CEO) and managing director (MD), said on July 18. The company expected to invest Rs 8,500 crore in India and Rs 3,500 in Europe. The major focus is on the Kalinganagar Plant in Odisha and plans to expand the plant’s capacity from 3 MTto 8 MT.
Over the last one-month, domestic hot rolled coil (HRC) prices have been range bound and hovered at 57500-9500/tonne. The domestic steel prices has seen sharp fall in coking coal prices augurs well for Indian steel players. The benefit of lower coking coal costs is likely to feed through to the cost base by September 2022 for Tata Steel Indian operations and by Q3FY22 for Tata Steel European operations. For Q1FY23, Tata Steel European operations reported EBITDA/tonne of US$360/tonne (US$89/tonne in Q1FY22 and US$241/tonne in Q4FY22).
Tata Steel plans to restart NINL’s blast furnace in the next three months and ramp up capacity to 80-100 KT/month run-rate by Mar’23. Tata Steel remains committed to its annual deleveraging target of US$1 billion in line with its capital allocation strategy to reduce debt.
Valuations:
The EPS was Rs. 6.36 in the June quarter. The stock is trading at a PE ratio of 3.32x. The EBITDA was at 2.96x. The ROCE and ROE stood at 31.6% and 42.6%, respectively. The stock was trading at Rs.106 on September 8th, down by 1.63%.

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

dalmia-bharat-posted-a-net-profit-of-rs-280-cr-in-the-june-quarter

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.