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New capacities buoyed Q2 volumes by 39% YoY but realisations slipped 5%

Vijaya Diagnostic Centre’s (Vijaya) Q2FY24 result was a beat vs our estimates driven by 18.3% YoY growth in non-covid business. Test volume growth remained healthy at 18.7% YoY. In Q2, it commercialised a new hub in Kolkata; the company is witnessing good traction and expects the hub to breakeven in next three quarters.

Q2 topline grew 12% YoY led by ~10% volume growth; realisation flat due to price hikes in eastern region

Indigo’s strategy 2.0 is resulting in industry-leading revenue growth and market share gains. While we are enthused by Indigo’s strong volume-led revenue growth across segments, we believe steep increase in tinting machines (18.1%YoY) is also one of the chief reasons for growth.

Akzo’s reported Q2FY24 was largely in line with peers with a) low-single-digit revenue growth due to erratic monsoon and shift of pre-Diwali sales to Q3FY24 and b) >300bps EBITDA margin expansion led by lower commodity prices. We reckon it continues to gain value market shares in Paints.

Asahi India Glass (AISG)’s Q2FY24 EBITDAM, at 17.1%, slid 290bps QoQ on the back of import volumes intensifying in the architectural segment, which in turn impaired pricing power for domestic manufacturers such as AISG. The auto segment saw a one-off cost escalation stemming from a surge in demand – expected to rebound to the levels of ~13-14% next quarter onwards.