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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)

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

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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