Supreme Industries Ltd (SIL) reported mix set of numbers for Q2FY19. Its Net Revenue grew by 24.7% YoY, driven largely by higher realizations ( 11.2%) and revenue of Rs 81cr from construction business. Adjusted revenue growth stood at 17.1% YoY. Adjusted EBITDA & PAT grew by 10.7% & 2.6% YoY respectively, while adjusted EBITDA & PAT margins contracted by 74bps & 83bps YoY respectively.
Navneet Education Ltd. (NEL) delivered robust set of numbers in Q2FY19 which came in marginally ahead of our estimates. Its net sales grew by 44.5% yoy led by publication segment which grew by 52.1% yoy. Traditionally Q1 is a strong quarter for NELs publication segment, however delays on account of licensing led to spillover of revenues in Q2. Its stationery segment also registered a robust growth of 29.5% yoy in Q2FY19.
Going forward, November is likely to be another eventful month. A sharp correction in crude oil prices and signs of reversal in the INR against the USD is encouraging news for Indian equities, however, the liquidity woes amongst NBFCs could continue to keep investors on the edge. Further, the upcoming state elections in Chhattisgarh, Madhya Pradesh, Mizoram, Rajasthan and Telangana during the month is expected to increase volatility and nervousness, as the market tries to gain some traction. On the global front, the progress on US-China trade talks, US sanctions on Iran, the comments by the US Fed at the FOMC meeting and the outcome of mid-term elections in US will be on market radar.
Nilkamal Ltd reported mix set of numbers for Q2FY19. Its net revenue grew by 32.1% YoY, which was above our estimates. The plastics business reported strong volume growth of 30%, largely driven by a favourable base. However, EBITDA & PAT de-grew 14.5% & 10.6% YoY, below our projections. EBITDA margins contracted 434bps YoY to 8%.
TeamLease Services Ltd. (TEAM) reported strong set of numbers which were marginally ahead of our estimates. Its Net sales and PAT grew by 24.6% and 43.1% yoy led by strong growth in headcounts and consistent improvement in productivity.
Swaraj Engines Ltd (SEL) reported mixed set of numbers for Q2FY19. Its net revenue grew by 18.4% YoY, which was largely in line, driven by healthy volume growth of 14.3%. However, the profit growth was muted and below our projections. EBITDA grew by 14.4%, while EBITDA margins contracted 57bps YoY to 16.2%.
Wonderla Holidays posted disappointing numbers for Q2FY19, below our expectation. Its net revenue decreased by 16.4%, led by decline in footfalls. Companys EBITDA and PAT declined by 16.5% and 60% yoy respectively due to increase in overall expense and depreciation.
Bharat Electronics Ltd. (BEL) reported strong set of numbers in Q2FY19 which came in above our estimates. Net revenue and PAT registered a growth of 36.7% and 38.5%yoy respectively. The robust growth was led by execution of electronic voting machine (EVM) and better operating leverage during the quarter.
Colgate-Palmolive India Ltd (CPIL) reported decent numbers for Q2FY19, in line with our expectation. Its revenue grew by 7.7% yoy driven by volume growth. Its EBITDA and PAT grew by 9.6% and 10.6% yoy respectively due to decrease in employee expense and cost efficiency.
Kajaria Ceramics Ltd (KCL) reported muted numbers for Q2FY19, below our estimates. Its consolidated net revenue grew by 8.1% YoY. While volume growth stood healthy at 11% YoY, poor realizations in the Tiles segment impacted the overall revenue growth.
