Jamna Auto Industries (JAI) reported mixed set of numbers in Q2FY19. While revenue growth was strong 42.4% YoY, contraction in operating margin and higher interest cost restricted net profit growth to 20.6% YoY during the quarter. The strong revenue growth was on account of 35.8% YoY increase total CV production and 100bps market share gains. However, operating margins contracted 66bps mainly due to higher raw material cost.
APL Apollo tubes (APT) reported its Q2FY19 numbers which came in below our expectations. Net revenue grew at a healthy pace of 25.7% YoY on the back of 14-15% increase in realizations and a muted volume growth of 7% YoY. The operating profit disappointed registering a degrowth of 8.7% YoY due to lower share of high margin products. Poor operational performance, lower other income and higher interest cost impacted profitability as net profit declined 34.4% YoY.
Castrol India Ltd (CIL) reported in-line revenue growth of 7.6% YoY in Q3CY18, which was both volume and price led. However, the company disappointed on the profit front with 10.3% & 5.8% YoY de-growth in its EBITDA and PAT respectively. Impacted by higher input cost and INR depreciation (vs USD), the EBITDA margins contracted sharply by 491bps YoY to 24.5%.
Voltas Ltd's Q2FY19 numbers were largely in line with our estimates. Consolidated net revenue growth stood healthy at 37.1% YoY, driven by strong performance from projects business ( 61.7%). Further, unitary cooling products segment reported decent growth of 8.2% after two quarters of muted performance. However, growth in EBITDA was relatively lower at 24.8%, while EBITDA margins contracted 76bps YoY to 7.6%, led by a sharp margin erosion of 616bps in unitary cooling products.
Britannia Industries Ltd (BRIT) reported in-line numbers for Q2FY19. Its revenue grew by 12.7% yoy driven by double digit volume growth. The company's EBITDA margins improved by 100bps on back of premiumization and cost cutting initiatives. However, its PAT margin improvement was restricted to 30 bps yoy due to increase in depreciation, interest, tax expense and decrease in other income.
Godrej Consumer Products Ltd's (GCPL) Q2FY19 numbers were muted, especially on the profit front. Net revenue increased by 6.1% YoY, driven by healthy growth of 10% in domestic business. However, poor performance from international business (IB) impacted the overall revenue growth. Consolidated EBITDA de-grew 7.7%, while EBITDA margins contracted 273bps YoY, led by a sharp margin erosion of 430bps in IB.
Capacit'e Infraprojects (Capacit'e) reported strong set of numbers led by robust execution. Its net revenue and EBITDA grew by 37.5% and 34.8% YoY respectively. The operating margin for the quarter stood at 14.6%, 30bps lower on a YoY basis due to rise in construction and other expense. PAT growth came in marginally lower at 30.9% YoY on account of contraction in operating margin, higher depreciation and tax rate during the quarter.
Godrej Agrovet Ltd (GAVL)'s Q2FY19 revenue was in-line with estimates, while higher expenses impacted operating profit. Its revenue grew by 11.4% yoy to Rs1,588cr, while EBITDA declined by 3.7% yoy to Rs141cr during the quarter due to lower operating leverage in animal feed (in Aqua) and palm oil segments. Net profit was up by 16.7% yoy to Rs94.2cr led by increase in other income.
Minda Corp reported decent set of numbers, which were only marginally lower than our estimates. Its Net Sales grew at a healthy pace of 18.1% YoY led by strong growth witnessed in the domestic business which grew by 26% YoY. Despite margin improvement in its two segments namely, SSR and DIS, the overall operating margin contracted by 82bps during the quarter mainly on account of lower revenue in the Interior system (IS) business.
Cummins India reported a robust Q2FY19 result, beating street estimates by a wide margin. Its revenue increased by 28.9% yoy to Rs1,487cr driven by strong domestic and export sales. EBITDA increased by 49.8% yoy to Rs251cr during the quarter led by strong sales, better product mix and favorable currency movement.
