HUL, SBI Life, Ambuja Cements, Mphasis, IndiaMart, IRB Infra & More Q2 Results Review: HDFC Securities
HUL, SBI Life, Ambuja Cement, Mphasis, IndiaMart, IRB Infra, Mastek, Tanla Platform, Zensar Tech, Shriram Transport Karur Vysya Q2
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HDFC Securities Institutional Equities
Hindustan Unilever Ltd. - HUL reported marginally better revenue growth at 16% (our estimate: 14%), with volume growth of 4% (our estimate: 3%). Three-year revenue and volume compound annual growth rates stand at 10% and 3%. Home care remained the showstopper, with 34% and 15% YoY/three-year CAGR. Beauty and personal care too marginally improved, with 11/7% YoY/three-year CAGR.
SBI Life Insurance Company Ltd. - SBI Life reported an all-time high adjusted value of new business margin at 31.4% (up 634 bps YoY) on the back of a healthy non-participating savings mix at 24% alongside rejigging within NPAR annual premium equivalent mix towards longer-tenor policies, driving adjusted VNB to Rs 12.3 billion (up 23% YoY, up 12% versus estimates).
Ambuja Cements Ltd. - Ambuja Cements reported poor performance, as unitary Ebitda slumped 60/51% YoY/QoQ to Rs 452 per million tonne due to a sharp spike in energy cost (up ~Rs 320/860 per million tonne QoQ/YoY) and high other expenses. At the consolidated level, Ambuja Cements has an ambitious plan to double its capacity to 140 million metric tonne in the next five years.
Mphasis Ltd. - Mphasis posted soft Q2 FY23 performance with direct international revenue impacted by mortgage business decline and client specific furlough.
IndiaMart Intermesh Ltd. - IndiaMart posted an in-line quarter; revenue growth remained strong at up 7.1% QoQ while margins continued to remain under pressure.
IRB Infrastructure Developers Ltd. - IRB reported revenue/Ebitda of Rs 13.4/6.7 billion, ahead of our estimates by 6.2/3.9%. Ebitda margin came in at 49.5%, missing our estimate of 50.6%.
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