IOCL, Godrej Consumer, Star Health, ACC, Indian Hotels, SRF And More Q3 Results Review: HDFC Securities

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .HDFC Securities Institutional Equities.Indian Oil Corporation Ltd. - Weak earningsIOCL’s reported Ebitda stood at Rs 36 billion (down 64% YoY, up 83% QoQ), while the adjusted profit after tax stood at Rs 4.5 billion, coming in well below our estimate. The weaker than-expected performance from the marketing segment and likely higher inventory losses drove the weakness, partially offset by the better-than expected reported gross refining margin of $12.9/barrel of oil (our estimate: $9.5/bbl)..Godrej Consumers Products Ltd. - Margin recovery to sustain Godrej Consumers’ consolidated revenue grew 9% YoY, with domestic/international clocking 11/7% YoY growth (10/8% three-year compound annual growth rate). The India business continued to be led by a high share of price hike (8% YoY), with volume growth coming in at 3% YoY. Home care growth was at 10/3% YoY for Q3/nine months-FY23; the company is focusing on expanding the market through new launches/formats. Personal care growth was at 14/19% YoY during Q3/9MFY23 and the price hike in personal wash supported the growth..Star Health and Allied Insurance Company Ltd. - On track to achieve a 95% combined ratioStar Health printed a soft net premiums written growth (up 15% YoY, in line with estimates), impacted by the unwinding of the high claims-ratio group business. Loss ratios clocked a positive surprise at 63.7% (down 445 bps QoQ, down 285 bps versus estimate), driving combined ratio to 94.8%. With a 25% price hike in its flagship Family Health Optima (50% of the retail mix) and tighter underwriting and claims review process, we expect a structural improvement in loss ratios (~64-65% over the next three years). .ACC Ltd. - Margin recovered strongly, expansion delayedACC margin recovered Rs 460/metric tonne QoQ to Rs 479 per mt due to realisation recovery (Rs 100 per mt) and opex cool-off (Rs 360 per mt). The integrated plant at Ametha in Madhya Pradesh is delayed by a year to Q2 FY24. The upcoming expansion in the central market will boost its volume growth visibility from H2 FY24 onwards. ACC is also increasing its green power/fuel mix to mitigate the impact of rising fuel costs..The Indian Hotels Company Ltd. - Quality of earnings at its best; upcycle continues Indian Hotels’ Q3 FY23 numbers beat expectations on all fronts, registering record earnings. Q3 revenue grew 58% YoY to Rs 16.9 billion, led by increased occupancy (68%) and average room rate (up 30% versus Q3 FY20) leading to strong revenue per available room growth (up 29% versus Q3 FY20). The increase in ARR was driven by strong demand, aided by the ongoing wedding season, vacation travel, increased corporate and meetings, incentives, conferences, and exhibitions-driven travel and the G-20 presidency..SRF Ltd. - Continued investments in capex Our optimism on SRF is premised on the back of-the continued healthy performance of the speciality chemicals business;a strong balance sheet; anddeployment of capex for high-growth speciality chemicals business over the next three-four years to tap opportunities emerging from the agrochemical and pharma industries. Ebitda/adjusted profit after tax were 6/6% below our estimates, owing to a 13% fall in revenue, higher-than-expected other expenses and finance costs, offset by lower-than-expected raw material costs and lower-than-expected tax outgo..Click on the attachment to read the full report:.IOCL Q3 Results Review - Lower-Than-Expected GRM, Marketing Margin Lead To Miss: Motilal Oswal.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

IOCL, Godrej Consumer, Star Health, ACC, Indian Hotels, SRF And More Q3 Results Review: HDFC Securities

IOCL’s reported Ebitda stood at Rs 36 bn (down 64% YoY, up 83% QoQ), while the adjusted profit after tax stood at Rs 4.5 billion.

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