HUL, ICICI Lombard, Heidelberg Cement Q1, Ambuja Cements Q2 Review: HDFC Securities

HDFC Securities Institutional Equities

Hindustan Unilever Ltd. - HUL reported higher-than-expected revenue and volume growth; however, volume growth saw sequential deceleration on three-year compound annual growth rate. Domestic revenue (excluding GlaxoSmithKline Consumer HealthCare Ltd.) was up 9% on a three-year CAGR (8% in Q4), with volume CAGR seeing slight deceleration at 1.7% (6% YoY) versus ~3% CAGR in the previous three quarters.

Ambuja Cements Ltd. - Ambuja Cements reported decent performance, led by 15% YoY volume uptick (94% utilisation). In a high-cost environment, it reported a healthy Ebitda margin of Rs 926/million tonne (though 38% down YoY).

ICICI Lombard General Insurance Company Ltd. - ICICI Lombard reported an in-line revenue; however, reinvestments in retail health resulted in higher-than-expected opex ratios (30.4%, up 320 bps versus estimate), dragging calculated combined ratios to 105% and adjusted profit after tax to Rs 3.5 billion (8% below estimates).

Heidelberg Cement India Ltd. - Heidelberg Cement reported weak results due to continuous volume decline and sharp fuel cost inflation, which pulled profitability down. Reported Ebitda came in below ours and consensus estimates on higher-than estimated costs. Volume declined 6% YoY, while adjusted net sales realisation improved 10% QoQ.

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