Sell

of Covid, diversion of oxygen cylinders for medical usage and lower labor availability. During 1Q, withdrawal of provision worth Rs1.8bn resulted in EBITDA loss narrowing down to Rs4.7bn (vs Rs11bn in Q1FY21 and Rs12.6bn...

interest costs (up 5%QoQ albeit decline in CoF), one-off employee costs (Rs1.2bn) and elevated provisioning (143bps credit costs). While second wave restricted loan book expansion (0.2%QoQ), we reckon trajectory should only remain tepid for FY22 in light of surmounting asset quality challenges. Against this backdrop, we tweak our NPA estimates to 6%/4% (earlier 5%/3.5%) but maintain growth estimates at 11%/15% over FY22-23. Consequently, our EPS estimates stand down by 16%/3% over FY22/23. Shrinkage in return profile, erratic asset quality behavior and tepid growth...

EBITDA margin remained under pressure declining to 7.9% (as against 14.4% in Q4FY21) owing to higher input costs during the quarter. On the other hand, recovery could be seen in the bottom-line, as the reported net loss declined to Rs. 4,451cr (vs. Rs. 8,438cr loss in Q1FY21...

Commodity cost impact and margins: The commodity cost impact in 1QFY22 was offset by a favorable product mix, cost-saving initiatives, and product price hikes. During the quarter & subsequently beginning Q2'FY22 the company undertook a price hike of 1.1% in Apr'21 and 2.4% in Jul'21. The management is confident of normalizing EBITDA margins, and recovery in volumes...

Q1 revenue met our estimate but EBITDA margin fell short at 7% and adj. PAT declined 70% QoQ to Rs 833mn

We maintain SELL on the stock with a target of Rs 50/share (~0.25x FY23E ABV).

Havells India Ltd (HAVL) is a leading player in electrical consumer goods in India. Its key verticals include switchgears, cables & wires, lighting fixtures and consumer appliances. Q1FY22 Revenue & PAT grew by 76% & 270% YoY, led by strong...

Exploring options on group simplification with Zuari Cement, a fellow subsidiary estimates by 5% due to higher volumes. Contrary to expansion in margins reported by peers, HEIM's margins fell 15% YoY/0.5% QoQ. HEIM's EBITDA/EPS grew at a CAGR of 18%/49% over FY16-FY21, predominantly led by revival in prices post consolidation in the central...

BJAUT's Q1 revenue declined 14% QoQ on lower volumes (-14%) and flat ASP. High RM cost further pulled down profitability