Trent, NHPC, Astral, Emami, Torrent Power, Deccan Cement, HG Infra And More Q2 Results Review: HDFC Securities
Kalpataru Power, Sudarshan Chemicals, JMC Projects, Fine Organic, Gujarat State Petronet Q2 Results Reviews
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HDFC Securities Institutional Equities
Trent Ltd. - Trent reported a stellar Q2 top-line print. Standalone revenue grew 30% compound annual growth rate (three-year) to Rs 18.14 billion. We suspect while Westside’s growth remains handsome (our estimate: three year CAGR 17%), Zudio’s blitz-scaling continues to be a big needle-mover.
NHPC Ltd. - NHPC operated at a plant availability factor of nearly 100% in Q2 FY23, versus 99% YoY, which resulted in flat PAF-based incentives and deviation charges in the quarter.
Astral Ltd. - Astral reported 16/19% Ebitda miss versus ours/consensus in Q2 FY23. Lower volume, gross margin compression and inventory losses pulled down plumbing Ebitda by 36% YoY. While the adhesive segment also witnessed margin compression, segmental Ebitda remained flat YoY, owing to contribution from the recently-acquired paints business.
Emami Ltd. - Emami posted a miss on organic domestic revenue and Ebitda performance. Domestic organic revenue was down 3% YoY (our estimate: up 4%), with a volume decline of ~5% (our estimate: flat).
Torrent Power Ltd. - Torrent Power’s Q2 FY23 profit after tax grew 31.1% YoY to Rs 4.8 billion, led by reduction in transmission and distribution losses, improved volume and realisation across franchisee distribution segment; gain from the sturdy sale of LNG as elevated prices of LNG made its commercial sale more favorable than generating electricity; and higher return on equity and incentives across license distribution circle.
Deccan Cements Ltd. - Deccan Cements capacity constraints and energy cost inflation pulled down its Q2 FY23 revenue/Ebitda/adjusted profit after tax by 6/57/72% YoY. While its unitary Ebitda fell 49/54% QoQ/YoY to Rs 404/million tonne, the company delivered better operating margin versus peers.
HG Infra Engineering Ltd. - HG Infra reported an in-line revenue of Rs 7.5 billion with Ebitda/adjusted profit after tax coming in at Rs 1.2/0.6 billion, a beat of 6.9/6.5%. It expects FY23 revenue growth of 25% plus (Rs 46 billion) with an Ebitda margin of 15% plus on the back of a robust order book of Rs 108 billion.
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