Anand Rathi Broker Research reports

With 2% y/y consolidated revenue growth (vs. the Street’s estimated 1%) and Rs7.6bn EBITDA (Rs7.5bn), Godrej Consumer’s Q2 was broadly in line with expectations.

The good growth momentum from Q1 continued for Dixon in Q2, largely from the cell-phone category. Backward integration in mobiles via screen manufacturing is underway while tie-ups for camera modules and mechanicals is being explored.

Exceeding our estimated Rs966m, Gabriel’s Q2 consolidated EBITDA surged 34% y/y to Rs987m. On the change in strategy, the company’s entry into the high growth “sunroof” product line is positive and would be a major value driver.

De-growth in NII (lower margins) and less non-interest income (lower fees) led to 19% q/q decline in core operating profits for Karnataka Bank. Modest provisions supported profitability.

Healthy growth in its consumer durables and electronics drove Amber’s strong Q2 growth. With its expanded portfolio and client added, it expects to outdo industry growth in RAC.

In line with ARe, Kajaria Ceramics’ Q2 revenue grew 5% y/y to Rs11.8bn. EBITDA/PAT fell 12%/22% y/y to Rs1.6bn/Rs843m, below our estimated Rs1.7bn/Rs940m.

Healthy, 29% y/y, AUM growth, was offset by high, Rs19.1bn, provisions leading to Bajaj Finance’s muted 13% y/y consol PAT growth.

Strong non-interest income (treasury and recovery) counterbalanced lower margins (due to penal charges reclassification), resulting in Union Bank of India’s decent operating performance and better RoA.

We expect it is likely to deliver 18%/22%/25% revenue/EBITDA/PAT CAGRs over FY25-27 due to swelling demand, capacity expansion and mounting exports.

Despite the unexpectedly weak, ~5.6% y/y, collections growth to Rs3.6bn, IndiaMart’s Q2 revenue rose ~18% y/y, in line with our estimate.