Bonanza Broker Research reports

Mphasis reported a miss in revenue, which fell 3.5% QoQ in cc terms, -3.4% QoQ / -8.4% YoY. The revenue decline was due to weakness in banking and capital markets (BCM, -8.8% QoQ, -14.8% YoY). BCM ex-mortgage was down 8.7% QoQ given delayed decision-making across large banks and weakness in regional banks.

ICICI Bank reported Q1FY24 PAT at ? 96.5 bn (+40% YoY) led by strong operating profit growth of 35% YoY. The business growth momentum was also strong during the quarter with 18% YoY and 5% QoQ growth led by both advances and deposits.

Uno Minda is a leading supplier of Proprietary Automotive Solutions to Original Equipment Manufacturers (OEMs). The company was incorporated in 1958, where the group has a turnover of more than US$ 1bn.

Coforge reported decent set of results. Growth was strong (up 2.7% QoQ cc) - with all verticals growing QoQ. Order intake was highest ever at US$ 531mn with sixth consecutive quarter of US$ 300mn+ TCV.

Infosys posted an in-line quarter. Revenue grew 1% in cc terms QoQ. EBITDA margin declined by 70bps QoQ to 20.8%. Infosys sharply cut its FY24 revenue growth guidance to 1-3.5% cc YoY (earlier 4-7%), implying 0.2-1.8% CQGR over Q2-Q4, on lower than expected volumes due to ramp-downs in discretionary spend, coupled with mega-deal volumes decreasing on delayed signings and longer ramp-up time due to regulatory approvals and transitions.

Zensar reported a strong EBITDA margin expansion of c.425bps QoQ, while the revenue growth was soft (+1.3% QoQ in cc terms). The strong margin improvement for the second consecutive quarter was on account of SG&A rationalization, higher utilization, better productivity & business mix and a c.100bps one-time benefit.

Newgen Software reported revenue of ? 2.5bn, up 34% YoY in Q1FY24. Strong revenue growth in a seasonally weak quarter was driven by high growth in license revenue (up 185% YoY) and annuity revenue (up 26.3% YoY). Growth was strong across all markets - APAC grew 45.7% YoY, EMEA grew 38.4%, US grew 35.8% and India grew 24.5%.

KVB reported a strong earnings performance in Q1FY24 despite NIM compression. KVB’s 57% YoY PAT growth was led by a strong PPOP growth driven by strong business growth and traction in treasury income.

Century Plyboards Ltd. has fared well as a leading plywood producer and supplier having a market share of 25% in the organized market on the back of excellence across product segments and winning innovations, driven by technological inducements. Century has shown robust sales recovery (Sales grew at 12% CAGR in past 5 years) and profitability growth (PAT grew at 18% CAGR in past 5 years) maintaining its market leader position on the back of continuous expansion across product segments.

Federal Bank’s Q1FY24 net profit was 42.1% in-line with our estimates driven mainly by a 35% YoY growth in operating profit. However, the stock evoked a strong negative reaction driven by continuous decline in margin by 16bps QoQ to 3.16%.