Cholamandalam Finance, Jubilant FoodWorks, Shriram Finance, KEC International Q3 Review: HDFC Securities

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .HDFC Securities Institutional Equities.Cholamandalam Investment and Finance Company Ltd. - Growth accelerated; switching to the fast lane Cholamandalam’s Q3 FY23 earnings were ahead of estimates on the back of better-than expected assets under management growth (up 31% YoY), steady net interest margins (7.6%), and improving asset quality. Cholamandalam further pushed the accelerator on business growth with strong disbursal growth (up 68% YoY). The management remains upbeat about growth prospects across segments—buoyant vehicle financing cycle, strong home loans demand and growing traction in new businesses (~21% of disbursals, and 7% of AUM) driven by expanding distribution network..Shriram Finance Ltd. - Steady operating performance; plenty of moving parts Shriram Finance reported its first quarterly operating performance as a merged entity. While the profit and loss metrics are not comparable on a YoY basis, the balance sheet and asset quality outcomes indicate a healthy quarter. AUM grew up 13.2% YoY on the back of strong disbursals (up 26% YoY, up 13% QoQ), with strong growth in passenger vehicles and personal loans. Asset quality improved sequentially with gross stage-III/NS-III at 6.3%/3.3%, better than pre-Covid levels..Jubilant FoodWorks Ltd. - Miss on all fronts Jubilant FoodWorks’ Q3 performance was a miss on all fronts. Revenue and like-for-like YoY growth was at 10% and 0.3% versus the expectation of 12% and 4.5%. We were building up a weak consumption trend, but it came sharper than expected. Gross margin was down 200/78 basis points YoY/QoQ to 75.5% (coming off from 78% in FY21). Inflationary headwinds with weaker offtake have been pressurising the margin..KEC International Ltd. - Margin recovery awaited KEC reported a weak quarter, with consolidated/standalone margins at multiyear low levels. Revenue: at Rs 43.7 billion, driven by transmission and distribution segments. Ebitda: Rs 2 billion (down 16.4/up 12.3% YoY/QoQ, a miss of 4.2%, owing to higher input prices; partly offset by better absorption of overheads and lower employee benefit expenses). Ebitda margin: 4.6% (down 259/up 19 bps YoY/QoQ, versus our estimate of 5.2%). Adjsuted profit after tax: Rs 176 million (down 81.2/down 10.5% YoY/QoQ, a 40.2% miss owing to higher finance cost and lower non-operating income)..Click on the attachment to read the full report:.Cholamandalam Investment Q3 Results Review - Strong AUM Growth; NIMs Stable: IDBI Capital.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Cholamandalam Finance, Jubilant FoodWorks, Shriram Finance, KEC International Q3 Review: HDFC Securities

Chola’s Q3 earnings were ahead of estimates on back of better-than expected AuM growth, steady NIMs, and improving asset quality.

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