Sharekhan Broker Research reports

Godrej Consumer Products Limited’s (GCPL’s) Q1FY2025 numbers were below our expectation as currency depreciation hit consolidated sales growth. Revenues decreased by 3% y-o-y; OPM expanded by 203 bps to 21.8%; PAT grew by 14% y-o-y.

Bosch has reported inline operating performance, while bottomline missed the estimates on account of lower-than-expected other income.

The company reported revenue of Rs. 3891 crores, reflecting a 3% increase year-over-year and a 2%
decrease quarter-over-quarter. This performance exceeded our expectations by 8%.

Earnings grew 10% y-o-y mainly driven by a 48% y-o-y fall in provisions, but core operational performance was weak. Overall asset quality was broadly stable.

M&M reported a beat in operating performance in Q1FY25 on account of healthy gross margin expansion, while bottomline missed the estimates on account of lower-than-expected other income.

Maruti Suzuki India Limited (MSIL) reported better-than-expected earnings estimates in Q1FY2025 on account of a strong operating performance in support of healthy gross margin expansion on a y-o-y basis.

Wonderla Holidays’ (WHL’s) Q1FY2025 numbers were weak, as footfalls were hit by extreme heatwave
and elections, leading to 6% y-o-y decline in revenue; adjusted EBITDA margins fell ~700 bps y-o-y

Tata Consumer Products Ltd’ (TCPL’s) operating performance was good with revenues and operating profit growing by 16% and 22% y-o-y respectively; higher interest cost kept adjusted PAT flat at Rs. 368 crore.

Q1FY25 standalone PAT was up 11% y-o-y to Rs. 4,511 crore with the regulated equity base growing
13% y-o-y to Rs. 88,600 crore. Consolidated PAT of Rs. 5,506 crore was up 12% y-o-y.

We retain BUY on TCI with a revised SOTP-based PT of Rs. 1,200, as we roll forward our valuation to
H1FY2027E earnings.