Tata Motors, Godrej Properties, Ramco Cements, APL Apollo, NCC And More Q2 Results Review: HDFC Securities

HDFC Securities Institutional Equities

Tata Motors Ltd. - Tata Motors posted weak performance in Q2, both at Jaguar Land Rover and in the India business. While JLR margin lagged expectations, domestic passenger vehicle and commercial vehicle margins also declined QoQ due to high input costs. Despite management’s best efforts, JLR debt has further increased to £8.2 billion, from £7.6 billion in Q4.

Godrej Properties Ltd. - Godrej Properties reported presales of 2.7 million square feet (down 25%/down 4%, YoY/QoQ) d at Rs 24 billion (down 6.4%/down 4.4% YoY/QoQ), with the launch of four new projects in Bengaluru, Pune, and NCR contributing Rs 8.9 billion to sales.

The Ramco Cements Ltd. - The company delivered robust 22% YoY volume growth (capacity increase plus higher utilisation) in Q2 FY23. Unitary Ebitda fell 64/43% YoY/QoQ to Rs 492 per million tonne (mainly led by a sharp rise in energy costs). In Q2, The Ramco Cements commissioned the Kurnool integrated plant. Weak profits, elevated working capital, and ongoing expansions spiked net debt/Ebitda to 4.7 times (versus 2.9 times in March 22).

APL Apollo Tubes Ltd. - APL Apollo Tubes’ Q2 FY23 revenue increased 28.7% YoY to Rs 39.7 billion, led by strong volume growth (up 40.9% YoY). Blended realisation, however, declined 8.4% YoY due to greater contribution of low margin general structure products in the mix (46% in Q2 FY23 versus 38% YoY) and heavy discounts offered across products to prevent destocking by channel partners as domestic steel prices saw a very steep correction during this time.

NCC Ltd. - NCC’s Q2 FY23 revenue/Ebitda came in at Rs 30/2.9 billion, missing our estimates by 0.5/3.5%. Adjusted profit after tax came in at Rs 1.2 billion beating our estimates by 4.1% due to tax expenses at a lower rate.

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