Trent, NHPC, Astral, Emami, Torrent Power, Deccan Cement, HG Infra And More Q2 Results Review: HDFC Securities

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<div class="paragraphs"><p>A man checking the stock chart on his smart phone and laptop. (Photo: Austin Distel/Source: Unsplash</p></div>
A man checking the stock chart on his smart phone and laptop. (Photo: Austin Distel/Source: Unsplash

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

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.

Click on the attachment to read the full report:

HDFC Securities Institutional Equities Q2FY23 Results Reviews.pdf


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