Show Me The Money

Earnings Roundup 

ITC legit killed it in Q1. The company beat Street estimates on all counts. Cigarette volumes grew 26% over the previous year vs the expectation of 14%-15% growth. The Agri business was the star for ITC, led by a sharp rise in global prices of wheat, rice, and leaf tobacco exports. The Hotels business witnessed a major turnaround driven by increased travel demand. Other businesses like FMCG and paper also reported record growth. Here are its key stats: 📊

• Revenue: Rs 17,290 cr; +42% YoY (vs Est: Rs 14,950 cr)
• EBITDA: Rs 5,647 cr; +42% YoY (vs Est: Rs 5,150 cr) 
• EBITDA Margin: 32.7 % (vs Est: 34.4%) 
• PAT: Rs 4,169 cr; +38% YoY (vs Est: Rs 4,050 cr)

Robust cigarette volumes, pickup in FMCG business, and higher exports impressed Dalal Street. At just 17x price-to-earnings, valuations remain reasonable despite the recent runup, said experts. 👍 

ITC is up 42% YTD. 📈

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Has Zomato Bottomed?

Zomato was locked in a 20% upper circuit, the highest single-day gain since listing, after its core food delivery business turned breakeven aka no profit no loss in Q1. ✌️

Zomato has consistently shown improvement in its operating metrics. Gross Order Value (+10% QoQ) rose for the eighth straight quarter. Increased online food ordering plus higher average order value (AOV) drove the growth. Zomato’s cash burn rate (-11% QoQ) also improved for a third straight quarter. Average monthly transacting users hit a new all-time high of 16.7 million, +36% over the previous year. But, concerns over recent investments (Blinkit), lack of communication from top management, and regulatory troubles overshadowed improving business performance. 🙈

Zomato co-founder Deepinder Goyal assured investors that the startup will not pursue any more acquisitions. Goyal also informed that Zomato is in cash conservation mode but would not compromise growth in favor of profitability. Zomato will also undergo internal restructuring and have CEOs for each business. ✅

Zomato rebounded sharply on a robust business outlook, cool off in valuations, and pullback in tech stocks. The key question now is: has Zomato bottomed out? Only time will tell. 🙏

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Earnings Highlights 

• Escorts Kubota: Revenue: Rs 2,068 cr; (+18% YoY) | Net Profit: Rs 141 cr; (-21% YoY)
• Kansai Nerolac Paints: Revenue: Rs 2,056 cr (+45% YoY) | Net Profit: Rs 156 cr; (+37% YoY)
• Godrej Properties: Revenue: Rs 426 cr; (+63% YoY) | Net Profit: Rs 46 cr; (+1.6X YoY)
• Jubilant Pharmova: Revenue: Rs 1,463 cr; (-11% YoY) | Net Profit: Rs 47 cr; (-71% YoY)

Calendar

Be sure to know when your stocks report earnings. Here’s the results calendar: