TGIF!

Earnings Roundup

Tata Steel’s (-1%) results were mixed. Strong show in Europe boosted topline growth. But, weak India business and higher costs weighed on its operating income. The company repaid Rs 5,100 cr in debt in Q2. 👍 Here’s its report card: 

• Revenue: Rs 60,282 cr; +55% YoY (vs Est:Rs 59,034 cr)
• EBITDA: Rs 16,456 cr; +1.6X YoY (vs Est: Rs 19,025 cr)
• EBITDA Margin: 27.3% (vs Est: 32.2%) 
• Net Profit: Rs 11,918 cr; +6.6X YoY (vs Est: Rs 11,199 cr)

Going forward, the company expects steel prices to remain steady. Investors will watch out for improvement in profitability and debt reduction. 

Tata Steel has 2x YTD. 💰

Hindalco’s (+3%) Q2 results blew past estimates. Strong demand coupled with increased sales of high-margin products drove the outperformance. 😍 Here are its key stats:

• Revenue: Rs 47,665 cr; +53% YoY (vs Est: Rs 44,424 cr)
• EBITDA: Rs 8,048 cr; +56% YoY (vs Est: Rs 6,157 cr)
• EBITDA Margin: 16.9%; (vs Est: 13.8%)
• Net Profit: Rs 3,417 cr; +7.8X YoY (vs Est: Rs 2,779 cr)

Satish Pai, MD at Hindalco Industries said:

Our product-rich portfolio strategy continues to deliver results across diverse market scenarios. It encourages us to keep building the downstream asset base and expand our market footprint. The recent Ryker copper rod unit acquisition is in keeping with our downstream capex plans announced earlier this year. 

Hindalco Industries is +96% YTD.

Vodafone Idea jumped +5% on strong Q2 results. Healthy 4G subscriber additions and tariff hikes boosted overall performance. The company added 3.3 million 4G users in Q2. 📱 Here’s more details: 

• Revenue: Rs 9,406 cr; -13% YoY (vs Est: Rs 9,322 cr)
• EBITDA: Rs 3,862 cr; -7% YoY (vs Est: Rs 3,844 cr)
• EBITDA Margin: 41.1%; (vs Est: 41.2%)
• Net Loss: Rs 7,132 cr; (vs Est: Rs 7,293 cr)
• Average Revenue Per User (ARPU): Rs 109

Ravinder Takkar, CEO at Vodafone Idea said:

During the last quarter, we witnessed a recovery in our operating momentum as the economy gradually opens up. We continue to improve our 4G subscriber base on the back of superior data and voice experience. We continue to focus on executing our strategy to improve our competitive position and win in the marketplace.

Meanwhile, Vodafone Idea is in talks with the country’s largest lender SBI on restructuring its huge debt. This will give a big boost to the company in its battle with Jio and Airtel. 💪

Vodafone Idea is -8% YTD.

Coming Soon

Tarsons Products IPO will open on Nov 15. The price band is fixed at Rs 635-662 per share. The company plans to raise Rs 1,020 cr from the markets. 💸

Tarsons Products is a leading manufacturer of labware products. It has a diversified product portfolio with over 1,700 SKUs across 300 products. The company has many reputed institutes, medical labs, and hospitals as its key clients. Tarsons Products has five manufacturing facilities in West Bengal and it supplies products to +40 countries. The company will use the IPO money to set up a new manufacturing unit and repay debts. 📊

Financial Snapshot: 

• FY21 Revenue: Rs 234 cr: +30% YoY
• FY21 Net Profit: Rs 69 cr; +69% YoY

As we all know, health-related segments have seen strong growth post the pandemic. The Indian plastic labware market is estimated to grow 16% by 2025. Tarsons’ robust fundamentals and market leadership will cheer investors. But high import dependence and risk of a plastic ban are key negatives. 🤓

No Festive Boom?

Auto industry body, Society of Indian Automobile Manufacturers (SIAM) released the October retail sales data. And the numbers don’t look good. 😢 Passenger vehicle sales are down 27% YoY. 

Yet again, it’s the global semiconductor issue that continues to haunt the industry. Additionally, automakers were also hit by a steep increase in raw material costs. Several models including Hyundai Creta and Mahindra XUV 700 have over 7 month waiting period. ⌚

The festive season is the most crucial time for auto companies. The 45-day period, which started from October 7, makes up nearly a third of the annual sales. 

However, the semiconductor situation is set to improve gradually. Home auto giants, Tata Motors and M&M are in talks with their vendors to overcome the supply chain issues. 🤞🏻

Markets have reacted positively to these comments. The general belief is that the worst may be over and that’s starting to reflect in share prices. M&M is +5% while Eicher Motors and TVS Motor have advanced 10% in November. 🤗

Movers and Shakers

Here’s a look at this week’s top movers from the Nifty 500. KPIT Tech took the pole position after rallying +23%. 🥇 Minda Industries (+17%) posted its highest weekly gain since Jan 2021. Balaji Amines (-14%) closed down for an 8th consecutive week. IndusInd Bank dropped 13% following a whistle-blower complaint. 📉 Check out their charts below: 

Earnings Highlights

Bharat Forge: Revenue: Rs 2,385 cr; (73% YoY) | Net Profit: Rs 270 cr; (vs Net Loss: 1.3 cr YoY)

Avanti Feeds: Revenue: Rs 1,226 cr; (-8% YoY) | Net Profit: Rs 24 cr; (-78% YoY)

Mrs Bector: Revenue: Rs 246 cr; (+8% YoY) | Net Profit: Rs 18 cr; (-21% YoY)

Amara Raja: Revenue: Rs 2,264 cr; (+17% YoY) | Net Profit: Rs 144 cr; (-28% YoY)

Burger King: Revenue: Rs 245 cr; (+1.5X YoY) | Net Loss: Rs 20 cr