Emkay Broker Research reports

ABCAP delivered a decent performance across its key businesses during
Q4FY24.

Aarti’s Q4 EBITDA at Rs2.8bn (+9% QoQ; +12% YoY) was in line with our
estimates. Management maintained FY25 EBITDA guidance at Rs14.5-17bn and
increased volume guidance to 20-30% from 20-25% on better demand
visibility.

EIM’s results were in line with estimates; revenues/EBITDA/PAT were up
12%/21%/18% YoY with margins up 43bps QoQ to 26.5% on lower RM.

Union Bank reported an 11% miss on PAT at Rs33bn (vs Emkay est.: Rs37bn)
owing to impact of wage revision (Rs13.3bn) and tax expenses, which overrode
the benefits from higher treasury income and reversal of NPI provisions.

TTMT’s Q4 results were muted with limited margin expansion across businesses
despite higher volumes.

MGL’s Q4FY24 SA EBITDA/PAT of Rs3.9bn/Rs2.7bn was 6%/10% lower than
our expectation, mainly due to lower realization (higher industrial volume
share) affecting gross margin and on slightly higher opex.

HPCL’s Q4FY24 SA EBITDA was 11% lower than expected at Rs48.7bn, mainly
due to lower cracks & discounts, MR shutdown, and intermediate stock generation impact (USD1-1.5/bbl), as reported GRM was USD7/bbl vs our
estimate of USD13.5/bbl.

BPCL clocked Q4FY24 EBITDA/APAT of Rs92.7/55.7bn – a sizable 17-18% beat each, driven by higher-than-expected implied marketing margin of ~Rs7/kg (at a 16% beat).

DLPL posted a robust quarter, with revenue growing 11% YoY on the back of
sample volume increasing 9% YoY and Swasthfit contributing 24% to the
topline.

We interacted with industry participants to get a better understanding of the
Quick Commerce (QC) business. Key takeaways: a) QC companies have found
good product market fit in metros and large cities.