Nestle India, SBI Life, TVS Motor, Jubilant FoodWorks, Shree Cement And More Q1 Reviews: HDFC Securities

Nestle India, SBI Life, TVS Motor, Jubilant FoodWorks, Shree Cement And More Q1 Reviews: HDFC Securities

<div class="paragraphs"><p>(Source: freepik)</p></div>
(Source: freepik)

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HDFC Securities Institutional Equities

Nestle India Ltd. - Nestle India reported a beat on revenue, while Ebitda margin was below our expectations. Domestic revenue growth was at 16%, with volume growth of ~8%. Nestle continues to outperform the fmcg peers in volume terms, considering relatively less exposure to raw material inflation.

SBI Life Insurance Company Ltd. - SBI Life reported an all-time high adjusted value of new business margin at 30.4% on the back of a multifold increase in non-par savings mix to 29%, driving adjusted VNB higher 1.3 times YoY to Rs 8.8 billion.

TVS Motor Company Ltd. - TVS Motor’s Q1 profit after tax, at Rs 3.2 billion, was ahead of our estimate of Rs 2.4 billion due to better-than-expected margin (flat QoQ at 10%), higher other income (Rs 222 million versus Rs 71 million in Q1), and lower tax rate of 25.8%.

Jubilant FoodWorks Ltd. - Jubilant FoodWorks' revenue was a slight miss, but the Ebitda margin came in line. Revenue grew 10% on a three-year compound annual growth rate (our etimate: 11%). Its like-for-like growth stood at up 28% YoY (our estimate: up 40%), while the three-year CAGR was a mere 3%.

Shree Cement Ltd. - In Q1 FY23, the benefits of robust cement price increase in north/central regions got negated by ~25% QoQ surge in energy costs and op-lev loss (volume down 7% QoQ). Unitary Ebitd fell 4% QoQ (down 27% YoY) to Rs 1,091 per million tonne. Shree Cement expects energy inflation to continue in Q2 and expects some cool-off in Q3 FY23.

Click on the attachment to read the full report:

HDFC Securities Institutional Equities Q1FY23 Result Updates.pdf


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