Sharekhan Broker Research reports

ICICI Bank reported yet another steady quarter with stable return ratio amidst challenging environment. Net interest income (NII) at Rs. 20,371 crore (in line) grew by 9 y-o-y/2% q-o-q. Net interest margins (NIMs) were broadly stable, declined by 2 bps q-o-q to 4.25%.

UltraTech Cement (UltraTech) reported broadly in-line standalone revenue at Rs. 16,328 crore (up 1.2% y-o-y) for Q3FY2025, led by strong volume growth of 10.6% y-o-y, while blended realizations were lower 8.5% y-o-y. Blended standalone EBITDA/tonne stood at Rs. 965, down 20.2% y-o-y while a good improvement of 31.9% q-o-q.

GCPL’s Q3FY25 performance was weak as domestic business posted muted 3.6% y-o-y revenue growth (flat volume growth) and a sharp 672 bps y-o-y decline in OPM, which dragged PAT down by 27.7% y-o-y. Multiple headwinds such as a slowdown in urban consumption, surge in palm oil prices and poor season for household insecticides affected domestic performance in Q3.

Over the past 3-4 years, Amber has diversified business from standalone RAC segment to electronics and railway segments which is now reaping fruits for the company. Each segment will contribute meaningfully to revenues and bottomline in 2-3 years. Q3FY25 revenues rose 65% led by robust growth across segments

Pidilite’s Q3FY25 performance was good with the company delivering volume-led revenue growth amid a soft demand environment. Consolidated revenues grew by 7.6% y-o-y to Rs. 3,369 crore driven by investments in brand building, distribution expansion, a better supply chain network and innovation. Standalone revenues grew by 9.3% y-o-y driven by 9.7% volume growth.

Reported revenue stood at Rs. 419 crores, up 5% q-o-q/ 7% y-o-y, beating our estimates of Rs.410 crores. Revenue growth in CC terms rose 5%q-o-q / 7% y-o-y, respectively. EBITDA margin fell 15 bps q-o-q/115 bps y-o-y to 21.9% and was below our estimates of 22.9%.

ICICI Prudential Life Insurance (IPRU) reported a 28% y-o-y growth in APE in Q3FY25 although it lagged estimates. For 9MFY25, APE grew 27% y-o-y. Value of New Business (VNB) grew by 19% y-o-y in Q3 (~7% below estimates).

HUL’s Q3FY25 performance was in line with expectations, with revenues growing by 1.4% y-o-y to Rs. 15,408 crore (versus expectation of Rs. 15,682 crore) with underlying volumes flat y-o-y. Homecare revenues grew by 5.4% y-o-y (high single-digit volume growth), beauty & well-being revenues grew by 1.4% y-o-y (low single-digit volume decline), personal care revenue declined by 3% y-o-y (mid single-digit volume decline), while foods & refreshments revenue stood flat y-o-y (mid single-digit volume decline).

Q3FY2025 numbers were broadly in line given the transition period. NII at Rs. 30,653 crore (up 8% y-o-y/2% q-o-q) in line with estimates, led by stable NIM of ~3.4% (marginally declined by 3 bps q-o-q led by interest income reversals on NPA agri portfolio) and net loan growth of ~1% q-o-q.

Revenue growth of 117% was impressive backed by strong performance in the Mobiles & EMS segment (up 190% y-o-y). Management expects to clock a volume of 30 million phones in FY25 and 60 million phones by 2027. Mobile & EMS segments would be significant growth drivers.