Emkay Broker Research reports

ICICI Bank reported a resilient performance, with limited margin compression at 7bps QoQ to 4.34% (vs peers’ over 15bps drop) and nearly stable asset quality with headline GNPA ratio at 1.7%.

HDFC Bank is gradually stepping up credit growth, although margin slipped by 23bps QoQ from a higher base in 4Q due to swift rate cuts and lower interest on IT refund.

Following the slump in FY23, DLPL has registered revenue/EBITDA/PAT CAGR of 10%/19%/43%, respectively, over the last two years.

CEAT logged a healthy Q1 with 10.5% revenue growth led by 9%/1.5% volume/realization growth; overall vol growth was driven by a mid-20s/singledigit growth in OEM/replacement; realization was mostly muted due to headwinds for international business.

Route Mobile posted a mixed operating performance in Q1 – revenue missed expectations, while margin came ahead of estimates. Revenue declined 10.6%/4.8% QoQ/YoY, below our estimates.

The in-line NII and higher treasury income notwithstanding, Axis Bank reported a 10% miss on PAT (at Rs58bn) and 1.5% RoA, primarily due to significantly higher provisions as it tweaked its stress recognition policy on cash credit/overdraft (CC/OD) facility and owing to one-time settlement accounts.

Wipro reported steady operating performance in Q1, though one-off restructuring costs led to a miss on reported EBITM. IT Services revenue declined 0.3% QoQ to USD2.59bn (down 2% CC), in line with our expectations.

We maintain our long-term positive view on Marico with Jun-26E TP of Rs810 (on 50x P/E), given improved execution. However, the company’s near-term performance is likely to be impacted by the inflationary copra prices in both, India and Indonesia.

TechM’s 1Q operating performance was slightly below expectations. Revenue grew 1.0% QoQ to USD1.56bn (down 1.4% CC), marginally missing estimates.

TTAN saw growth moderation in Q1 with 17% growth in the jewelry business vs recent trends of ~25% growth. Also, LTL growth for TTAN in the early double digits is weaker vs 18-19% for peers.