NTPC, DCB Bank, Kajaria Ceramics, Aditya Birla Sun Life AMC, United Spirits Q3 Reviews: 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.NTPC Ltd. - Profit after tax above consensus, strong capex aheadGeneration/sales increased materially by 8.3%/7.7% YoY to 78.6/72.9 billion units in Q3 FY23, led by higher demand. Plant availability factor also improved for both coal/gas in Q3 to 92.7/98.5%, versus 85.9/89.9% YoY, led by better fuel availability. While revenue increased 39.3% YoY to Rs 414 billion, adjusted PAT was up by 17.7% YoY to Rs 44.2 billion, 12% above the consensus estimate. NTPC has a total of 18.2 giga watt under construction segregated into 11.3 mega watt of coal capacity, 2.3 mw of hydro capacity and 4.7 mw of renewable energy capacity. NTPC has targeted to add 5-6 gw of RE capacity per annum. Further, the company plans to venture into the nuclear segment by forming a joint venture with Nuclear Power Corporation of India Ltd., under which it aims to add 4.2 gw capacity by 2035..DCB Bank Ltd. - Opex continues to hold back return on asset accretionDCB Bank’s Q3 FY23 earnings beat our estimates, on the back of strong loan growth (up 19% YoY), net interest margin expansion (14 bps QoQ), and moderate credit costs (60 bps - annualised). While gross slippages remained elevated at 5.3%, healthy upgrades and recoveries led to a 27 bps sequential improvement in gross non performing asset, at 3.6%. Stressed book (net non-performing asset plus restructured book) continues to remain sticky at ~7% of loans; however, management expects it to taper off in the next couple of quarters, led by healthy collection efficiencies and a granular secured loan book (~95%)..Kajaria Ceramics Ltd. - Weak demand impacts margin expansion We continue to like Kajaria Ceramics for its strong brand positioning and distribution, which are driving its market share gains. Kajaria Ceramics delivered weak results in Q3 FY23, led by weak offtake and continued supply pressure from Morbi. This also prevented margin expansion despite a 5% QoQ fall in gas prices..Aditya Birla Sun Life AMC Ltd. - Market share loss remains a drag on growthAditya Birla Sun Life AMC reported a weak quarter, with a sequentially flat top line (4% miss), primarily due to elevated outflows and weak performance in the equity segment. While systematic investment plan flows (up 1% QoQ) are holding up, growth in the SIP book lagged the industry by a mile (up 6% QoQ). We are constructive on Aditya Birla Sun Life AMC’s strong and diversified distribution network; however, given the rising competitive intensity, we are concerned about its inability to arrest the equity market-share loss in the near term..United Spirits Ltd. - Inline revenue, miss on Ebitda margin United Spirits Ltd. delivered an inline net revenue of Rs 27.8 billion versus the expectation of Rs 27.6 billion. Like-for-like revenue growth was 9.7% YoY. Prestige and above revenue was at Rs 23.7 billion (our estimate Rs 23.6 billion), up 12% YoY. Scotch has sustained strong double-digit growth during the quarter. P&A volume growth was at 3% (three-year compound annual growth rate at 4%, our estimate: 9%), impacted by route-to-market changes. P&A realisation was at an all-time high at Rs 1,867/case (up 8% YoY). Popular (on rebased) saw value/volume YoY growth of 2/3%..Click on the attachment to read the full report:.Kajaria Ceramics Q3 Results Review - Subdued Demand, Higher Gas Prices Weighed On Margins: IDBI Capital.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.

NTPC, DCB Bank, Kajaria Ceramics, Aditya Birla Sun Life AMC, United Spirits Q3 Reviews: HDFC Securities

NTPC plans to venture into the nuclear segment by forming a JV with NPCIL, under which it aims to add 4.2 gw capacity by 2035.

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