Sell

AJP reported in-line earnings, sales were 3.6% below estimates, while EBITDA/PAT reported 1%/3% above our estimates

TATVA revenue missed our estimates due to significant decline in SDA segment. EBITDA beat our estimates due to lower-than-expected cost of goods sold and operating expenses. However, Adj PAT missed our estimates significantly due to higher-than-expected depreciation, lower than expected other income.

For Q3FY25, the revenue increased to 4.7% YoY (-9.7% QoQ) to INR 14,618 Mn, which missed our estimate by 3.9%. The company YoY growth, driven by toothpaste sales which showed mid-single digit volume growth.

• Company Q3FY25’s earnings performance exceeds our estimates across the board.
• For Q3FY25, BIL reported revenue of INR 25,603 Mn (+12.6% YoY/ +5.8% QoQ), which outperformed our estimates by 4.3%.

Sluggish Growth

Revenue/EBITDA/PAT exceeded our estimates by 10.5%/46.6%/227%. EBITDA margin surpassed our estimate by 500bps

AU SFB logged a muted performance with a 5% miss on PAT at Rs5.3bn/RoA at 1.5%, mainly on lower other income and elevated provisions owing to ongoing stress in unsecured loans (MFI, Cards, PL) and seasonality impact on the agri and wheels book.

3QFY25 has yet again proven the volatility in Mphasis's business compared to its Tier-2 peers like Persistent & Coforge