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Q4 revenues grew 5.3% YoY to | 4606 crore. Domestic sales grew 4.5% YoY to | 1807 crore. US grew 17.1% YoY to | 1002 crore on the back of continued Albuterol ramp-up. RoW markets business de-grew 4.8% YoY to | 674 crore. South Africa business grew 13.9% YoY to | 606 crore tracking strong private business momentum. EBITDA margins expanded 281 bps YoY (down 653 bps QoQ) to 17.3% mainly due to significantly lower other expenditure partially offset by lower gross margins. Subsequently, EBITDA grew 25.7%...
Vardhman Special Steel (VSSL) reported a healthy set of Q4FY21 numbers on the back of strong demand from the automobile sector. Sales volume for the quarter was at 47828 tonnes, up 34% YoY, 4% QoQ. Topline came in at | 334.5 crore, up 63% YoY, 16% QoQ. Topline growth was on the back of higher sales volume and price increase, which came into effect from January 2021. Ensuing EBITDA came in at | 52.3 crore, up 231% YoY, 32% QoQ. EBITDA margin for the quarter was healthy at 15.6% (13.7% in Q3FY21, 7.7% in Q4FY20). The robust EBITDA performance was primarily on the back...
Q4 revenues grew 5.3% YoY to | 4606 crore. Domestic sales grew 4.5% YoY to | 1807 crore. US grew 17.1% YoY to | 1002 crore on the back of continued Albuterol ramp-up. RoW markets business de-grew 4.8% YoY to | 674 crore. South Africa business grew 13.9% YoY to | 606 crore tracking strong private business momentum. EBITDA margins expanded 281 bps YoY (down 653 bps QoQ) to 17.3% mainly due to significantly lower other expenditure partially offset by lower gross margins. Subsequently, EBITDA grew 25.7%...
HG Infra Engineering (HG Infra) reported a robust set of Q4FY21 numbers. Standalone revenue improved 65% YoY to | 1,027.8 crore, clearly reflecting the sharp pickup in execution aided by healthy order book position and normalisation of labour availability/raw material supply chain post Covid-19 related disruptions. Also, operating profit margin was at an elevated 16.2%, down 8 bps YoY, on account of better project mix. At PAT level, robust operating performance translated into 90.5% YoY growth (to | 97.7 crore)....
With expected exports, DWL would be able to substantially reduce its sugar inventory in the next one year. Further, increasing distillery volumes through B-heavy & sugarcane juice route would drive growth in operating profit. We expect | 485 crore of operating cash flow generation in the next two years, which would fund capex for new distillery and also result in debt repayment to the tune of | 260 crore. We expect 30% earnings CAGR on the back of strong operating profit growth & interest cost reduction. We change our...
The company is aiming to reach 10 MT capacity by FY25E. In the first phase, Sagar Cement is adding 2.5 MT capacity (1 MT in MP and 1.5 MT in Odisha) for capex of | 800 crore. These capacities will get commissioned by the end of Q2FY22E. Post these expansions the total capacity will increase to 8.25 MT. Having already spent | 545 crore, we expect debt levels to peak around...
We reiterate our buy on Tata Power factoring in the growth in EPC business, higher regulated capex, debt reduction and merger benefits. We assign a SoTP TP of INR127 (+ 17% from the CMP) Tata Power reported consolidated revenue at INR 101.3bn (+53%/+33% YoY/QoQ) in Q4FY21. The numbers are not comparable to our estimates due to the acquisition of Odisha distribution circle. The growth was also aided by strong execution of solar EPC projects. However, EBITDA declined 8.5% yoy to INR14.5bn due to increased losses in Mundra project from the rise in coal prices. The deleveraging exercise helped the company in lowering its interest expenses, which along with a deferred tax credit led to a 38.6% yoy rise in its APAT to INR3.9bn. Solar EPC order backlog stood strong at INR 87.4bn. While InvIT transaction missed the FY21 end target, the management has indicated a much better alternative for monetisation of its renewable assets which could fetch a higher valuation. We have revised our earnings estimates factoring the inclusion of Odisha discoms and exclusion of renewable business in our estimates.
Mahindra Lifespaces: Mahindra Lifespaces Developers Ltd (MLDL) reported operationally strong quarter with pre-sales value/volume growing 77%/67% sequentially to Rs 3.5bn, driven by four new launches. For FY21, MLDL registered de-growth in pre-sales value/volume of 15%/25% as 1HFY21 was impacted due to COVID-19. Labour availability has reduced to 60% and is expected to ramp up by 1QFY22 end as COVID-19 impact reduces. Over last 9M, MLDL has added 3 land parcels with ~Rs 15bn presales potential and is in advance stages of negotiation on land parcels with preslaes potential of Rs 45bn. Residential presales/IC business leasing guidance of ~Rs 25/5bn annually by FY25 remains intact. Given strong growth trajectory, robust balance sheet, trustworthy brand and tailwinds for organized players, we remain constructive on MLDL. We maintain BUY with SOTP valuation of Rs 773/sh. KEC International: KEC reported robust execution with revenue at Rs 43.6bn (10% beat), driven by non-T&D; segments. However, margin contracted by 197/95 bps to 8.1% due to SAE EBIDTA loss of ~Rs 0.7bn (higher commodity prices and overhead/idling costs). Margins could deteriorate further if commodity prices inches up further. FY21 order inflow stood at Rs 119bn, taking the order book (OB) to Rs 191bn (Rs 250bn with L1). Despite the lockdown, all sites are operating. With robust prequalification in domestic/international markets and across sectors, KEC is well-placed for a re-rating. However, sustained higher commodity prices could impact the margins. We maintain BUY on KEC with reduced target price of Rs 452/sh (Rs 476 earlier), 14x Mar-23 EPS. Sonata Software: Sonata posted better-than-expected growth in...
We maintain BUY with SOTP valuation of Rs 773/sh. Mahindra Lifespaces Developers Ltd (MLDL) reported operationally strong quarter with pre-sales value/volume growing 77%/67% sequentially to Rs 3.5bn, driven by four new launches. For FY21, MLDL registered de-growth in pre-sales value/volume of 15%/25% as 1HFY21 was impacted due to COVID-19. Labour availability has reduced to 60% and is expected to ramp up by 1QFY22 end as COVID-19 impact reduces. Over last 9M, MLDL has added 3 land parcels with ~Rs 15bn presales potential and is in advance stages of negotiation on land parcels with presales potential of Rs 45bn. Residential presales/IC business leasing guidance of ~Rs 25/5bn annually by FY25 remains intact. Given strong growth trajectory, robust balance sheet, trustworthy brand and tailwinds for organized players, we remain constructive on MLDL
We revise our rating to BUY (HOLD earlier) given the long term structural growth drivers like ,clear focus on driving volumes and profitability, improved traction in other business segments
We roll over our estimate to FY23E valuing the company at 7x of FY23E EV/EBITDA to arrive at target price of Rs, 1230 implying an upside of 18% from CMP.
revenues growing by 33% YoY to Rs.799cr in Q4FY21. All segments saw strong growth mainly on the back of of successful new launches, increase in market share of finished dosages, as well as customer additions for APIs and PFIs. Disruption in supply of key raw materials from China will impact operating performance in the short term The company has guided a Capex of ~Rs.1,000cr over the next 3 years as it looks to expand capacities for its key products...
Headwinds in the very near term; Drivers in place for medium term UPGRADE TO BUY Westlife Development's (WDL) 4QFY21 topline performance was higher than our estimates led by 10.5% Same Store Sales growth (SSSG) versus our estimate of 0.5%. During the quarter, the company reached a recovery rate of 105-110% on YoY basis. Growth was led by strong recovery in dine-in and convenience platform which stood at ~90% and ~140% YoY, respectively. Overall topline grew by 6.3% YoY to Rs3.6bn versus our estimate of Rs3.4bn. EBITDA (including impact of INDAS 116) grew by 35.7% to Rs493mn (vs our est. 26.9% growth R461mn) with margins up by 300bps YoY to 13.8% (vs. our est. of 13.7%). At recurring PAT level, the Company reported a loss of Rs65mn (vs our est. loss of Rs84mn). Gross margins were back...
UPL's 4QFY21 result beat NBIE/street estimates with consolidated adjusted PAT coming in at Rs11.43bn excluding exceptional item vs our/Bloomberg estimate of Rs9.73bn/Rs10.78bn. The beat was mainly driven by the 5.9% beat on revenue, led by the beat in LatAm sales. Gross/EBITDA Margins came in a tad higher. Management expects improved pricing power in FY22, reversing the FY21 trend, which depended on volume growth to drive topline. We raise UPL TP by 43.3% to Rs808, on higher FY23E PE of 12.5x vs. old PE of 10x and upgrade the stock from Accumulate to Buy based on upside of 16.9% from CMP. This revision follows the increase in FY22E/FY23E EPS estimates by 7.25%/14.57%, based on higher growth and margin assumptions. The key catalysts for the upgrade are: 1) The shift in UPL's product mix...
Apollo Tyres' (APTY's) consolidated revenue came ahead of our estimate (+9.4%) led by sustained volume momentum in India business and the recovery in demand in Europe. Consolidated EBITDA margin at 16.2% was a beat (+70bps) on robust margin performance in European operations (+500bps QoQ) led by better sales mix and successful execution of Dutch plant specialization. Standalone EBITDA margin was affected by commodity cost headwinds (impact of 460bps QoQ on gross margins). APTY absorbed part of the commodity cost inflation with ~4.5% price hike in 2HFY21 and contemplates a further price hike in near term as the commodity costs pressure is expected to increase further in 1QFY22. We do see some serious pressure on gross margins over the next few quarters as the price...
Headwinds in the very near term; Drivers in place for medium term UPGRADE TO BUY Westlife Development's (WDL) 4QFY21 topline performance was higher than our estimates led by 10.5% Same Store Sales growth (SSSG) versus our estimate of 0.5%. During the quarter, the company reached a recovery rate of 105-110% on YoY basis. Growth was led by strong recovery in dine-in and convenience platform which stood at ~90% and ~140% YoY, respectively. Overall topline grew by 6.3% YoY to Rs3.6bn versus our estimate of Rs3.4bn. EBITDA (including impact of INDAS 116) grew by 35.7% to Rs493mn (vs our est. 26.9% growth R461mn) with margins up by 300bps YoY to 13.8% (vs. our est. of 13.7%). At recurring PAT level, the Company reported a loss of Rs65mn (vs our est. loss of Rs84mn). Gross margins were back...
UPL's 4QFY21 result beat NBIE/street estimates with consolidated adjusted PAT coming in at Rs11.43bn excluding exceptional item vs our/Bloomberg estimate of Rs9.73bn/Rs10.78bn. The beat was mainly driven by the 5.9% beat on revenue, led by the beat in LatAm sales. Gross/EBITDA Margins came in a tad higher. Management expects improved pricing power in FY22, reversing the FY21 trend, which depended on volume growth to drive topline. We raise UPL TP by 43.3% to Rs808, on higher FY23E PE of 12.5x vs. old PE of 10x and upgrade the stock from Accumulate to Buy based on upside of 16.9% from CMP. This revision follows the increase in FY22E/FY23E EPS estimates by 7.25%/14.57%, based on higher growth and margin assumptions. The key catalysts for the upgrade are: 1) The shift in UPL's product mix...
