Bonanza Broker Research reports

SBI reported strong earnings growth of 2.7x YoY led by 100% growth in operating profit driven by treasury gain and low base. However, bank’s miss on NIM guidance and reported decline in margin by 27 bps QoQ led to sequential drag on NII by 3.7%.

Easy Trip Planners (EMT) is a pioneering Indian Online Travel Agency (OTA) that sets itself apart by eliminating hidden fees. It's the country's fastest-growing and most profitable OTA, surpassing competitors with a 47% CAGR in gross booking revenues from FY20-23. FY23 witnessed robust growth in air travel (62% YoY), hotels (121% YoY), and other segments (10% YoY), boosting Gross Booking Revenue by 42.6% to ?23,710 Mn with 14 million customers by June 30, 2023.

Aavas Financiers Ltd (AAVAS) is a fundamentally strong HFC with best-in-class asset quality, a well-capitalized balance sheet, a healthy growth trajectory and consistently delivering ROAs >3.5%. AAVAS has demonstrated an execution track record by generating strong risk-adjusted returns despite a large self-employed asset mix.

Post de-merger of Masjeco in FY15, MAST was predominantly UK focused with ~95% revenue from the geography where it was working with government agencies. Over the next 7 years, the company worked on (1) Adding presence in the largest growth market - the US (2) Expanding service areas (3) Professionalizing / institutionalizing the company. Its Revenue/EPS (incl. inorganic) has compounded at 25% / 48% CAGR over the last 7 years.

Prince Pipes’s Q1FY24 numbers failed to impress with Revenue declining by 8.3% YoY at ? 554 Cr (as against ? 604 Cr Q1FY23), although, the Volumes increased by 19% YoY at 37,155 MT as compared to 31,250 MT in Q1FY23. The EBITDA was flat, improving by 200bps YoY at ? 45 crore versus ? 44 crore in Q1FY23, with enhanced margins by 80bps YoY to 8.1%.

eClerx posted weak operating performance in Q1. Revenue fell 2% QoQ, hit by budget cuts, drop in project renewals and unanticipated project cancellations particularly among large clients in the digital and financial markets. OPM declined by 530bps QoQ. Management expects revenue to rebound in Q2 and log closer to Q4FY23 levels, further improving in H2.

Trent has outperformed yet again with strong beat in a difficult quarter in terms of demand and lower discretionary spending. Trent has registered a stellar consolidated revenue growth of 46% YoY to ? 2,628 Cr, a 25% EBITDA growth and 45% PAT growth on YoY basis.

CAMS posted in-line revenue at ? 261.3 Cr (up by 10.4% YoY) and the share of non-MF business in revenue rose to 12.6% in Q1FY24. We are bullish on CAMS due to Market leadership in the duopoly RTA market, four out of the five largest MFs as well as 10 of the 15 largest MFs based on AAUM are their clients.

Century reported a weak Q1 performance owing to muted demand in Plywood and Laminates segments. The rise in timber prices hurting the margins across segments, along with a one-off expense in laminates segment for new catalogue launch. We remain positive on Century on account of its strong franchise presence, wide distribution network and wide array of SKUs, leadership position in most business segments and healthy return ratios.

Cera Sanitaryware reported a muted performance, slightly missing our estimates. It registered a Revenue growth of 8% to ? 428.9 Cr led by healthy replacement demand, with Sanitaryware / Faucetware / Tiles divisions growing at 6% / 11% / 8% respectively. The EBITDA / PAT witnessed a robust growth by 38% / 42% respectively, with EBITDA / PAT margins expanding by 431bps / 318bps at 20% / 13.2% respectively owing to the easing prices of Raw materials.

Varun Beverages maintains its growth trajectory and shows strong signs of sustained profitability. VBL delivered a robust performance with growth in Revenue by 13.3% and EBITDA by 23.2% YoY. The softening in key raw material prices further catalysed the Gross margin expansion by 196bps to 52.5% (primarily due to softening of PET chips prices) and EBITDA margins expansion by 210bps to 26.9% (driven by higher gross margins and operational efficiencies) in Q2CY23.

CIFC PAT grew by 28% YoY led by 26% YoY growth in operating profit. NII grew by 24% YoY despite NIM pressure during the quarter. Elevated credit cost drags the earnings however it is seasonal in nature.

Titan witnessed a strong demand in terms of Jewellery in June after a slack month in May. In the Jewellery segment the Total Income saw a growth of 19% YoY with domestic operations growing at ~20% YoY.

DCBB reported a weak performance led by sequential decline in NII and PAT. Margins were declined sharply by 35 bps QoQ, Slippages was elevated for the quarter leading to higher credit cost during the quarter. However, bank continued its business momentum by registering strong loan growth of 19% YoY and deposit growth of 23% YoY.

BOI reported core revenue on expected line however one-off income has helped bank to deliver strong growth in earnings. Loan book and deposits have grown strongly on sequential basis. We believe bank is moving in right direction by growing high yielding retail loans faster and on deposit side low yielding demand deposits have grown faster would help bank to deliver on NIM guidance.

Home First Finance (HFFC) reported another set of steady numbers for the quarter, with strong AUM growth (33% YoY and 8% QoQ), and sequential rise in disbursements (35% YoY and 3% QoQ at ? 8,952mn). There has been a positive uptick in the spreads by 20bps QoQ at 5.7% as against 5.5% in the previous quarter.

Birlasoft’s revenue grew 3.1% QoQ (2.7% in cc terms) to US$ 153.6mn. Adjusted for receipt of US$ 2mn for disengagement services pertaining to settlement with Invacare, revenue grew 1.7% QoQ (1.4% in cc terms). OPM stood at 15.3%, aided by better gross margin, lower SG&A expenses, better utilization, automation and lower attrition.

Jubilant Foodworks reported a sales growth of 6.3% YoY at ? 13,345mn during Q1FY24 over ? 12,523mn on the back of continuous store addition. Although, the LFL came in weak at (1.3)% YoY leading to a declined EBITDA / PAT margins by 370bps / 680bps. The Dine-in channels reported flat revenue and green shoots in Delivery Channel with 8.4% growth.

TechM’s revenue declined 4% QoQ (4.2% in cc terms) to US$ 1.6bn. EBIT margin declined by 440bps QoQ to 6.8% even after adjusting for one-offs. The sharp decline in CME (down 9.4% QoQ), owing to cut in discretionary spending / closure of network services projects. Deal wins remain weak - stood at US$ 359mn (down c.25% YoY on TTM basis).

Cyient reported an in-line quarter. Its Services segment (DET) declined 0.2% QoQ in cc terms (excluding Engineering Parts which was a part of Cyient DLM). Normalised EBIT margins in DET came at 16.1%, up 93bps QoQ helped by G&A optimization.