Weekend Ka Vaar

Earnings Roundup 

Reliance Industries (-1%) Q3 results were mixed. The conglomerate has three main verticals: oil-to-chemical (O2C), Jio and Retail. O2C topline dropped 2% YoY as oil prices became more expensive in late 2023. But, Jio (profit up 12% YoY) and Reliance Retail (revenue up 28% YoY) continued to be the bright spots for RIL overall. 💯

The only other sour note was that Jio’s average revenue per user (APRU) was flat QoQ at Rs 181.7. A better subscriber mix lifted the top and bottom line, but the much-awaited tariff hikes can’t come soon enough! ☎️

Here is RIL’s Q3 report card:

• Revenue: Rs 2.28 lakh cr; +3.6% YoY (vs Est: Rs 2.54 lakh cr)
• EBITDA: Rs 44,768 cr; +17% YoY
• EBITDA Margin: 18.06% vs 15.9%
• PAT: Rs 17,265 cr; +9% YoY

RIL is up +11% over the past year. While okay, it mostly missed out on the 2023 bull rally. Expectations are high, but experts say Reliance will have to deliver. 💪

Paytm’s (+4%) Q3 results beat Street estimates! A strong festive season helped gross merchandise value (GMV) surge 47% YoY to hit Rs 5.10 lakh cr. It also distributed loans worth Rs 15,535 cr; a healthy 56% bump YoY. Also, the company’s ‘average monthly transacting users’ — the number of unique users with at least one successful payment transaction in a month —  hit 100 million, a new high! 🚀

Here are its key stats:

• Revenue: Rs 2,850 cr; +38% YoY
• EBITDA: Rs 219 cr
• Loss: Rs 222 cr vs Rs 392 cr YoY

Big Picture: How badly did the RBI’s move on unsecured personal loans hurt Paytm? Well, the value of what the firm calls ‘postpaid loans’ (another word for ‘buy now, pay later’) dropped 17% QoQ. And while the total value of loans distributed in Q3 was higher YoY, it took a dip QoQ (R 15,535 cr vs Rs 16,211 cr in Q2). ✅

FWIW – CLSA feels Paytm will be able to offset the bulk of its BNPL loss by finding new revenue streams and cutting costs. The brokerage has hiked its target price on the stock to Rs 960 p/sh vs Rs 925 p/sh earlier. 😍

Stocktwits Specials

In our recent video, we walk you through some of the companies that can benefit from the inauguration of Ram Mandir in Ayodhya. In less than 5 minutes, we cover these stocks, what SEBI RAs think about them and key fundamental, technical and news events surrounding these. 🛕

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EPACK Durable IPO Review

Epack Durable IPO is open for subscription this week! The price band is fixed at Rs 218 p/sh – Rs 230 p/sh. The company aims to raise Rs 640 cr from the IPO. 💸

For the unaware, Epack is India’s second-biggest manufacturer of room air conditioners as of FY23. It supplies units to big brands like Blue Star, Daikin, and Voltas. In the last few years, it’s started to move up the value chain by also making key components like cross-flow flans, PCB (printed circuit boards), sheet metal and even injection-moulded parts. 🏭

It currently has 3 manufacturing plants with a capacity of 3.7 million units; it plans to increase this by another 2.4 million by FY26, for which it will invest Rs 400 cr. The company has also forayed into new products like blenders, fans, coolers and even kitchen chimneys. It’s done this to help bolster its topline during seasonally weak periods. 📊

FYI – the IPO’s fresh issue of shares amounts to Rs 400 cr; the remaining Rs 240 cr is via an Offer for Sale. The majority of the money raised (Rs 200 cr) will go into setting up its new plants, while a smaller chunk (Rs 80 cr) will go into paying debt. 👍

FY23 snapshot:

• Revenue: Rs 1,539 cr; +67% YoY
• EBITDA: Rs 103 cr; +49% YoY
• EBITDA Margin: 6.7% vs 7.3% YoY
• PAT: Rs 32 cr; +78% YoY

Big Picture: Business is booming, but its margins are not great, even compared to peers. Epack hopes that its value-chain addition will start paying off from FY25. Key positive triggers include its participation in the PLI scheme. While the IPO is on the pricey side, current grey market data suggests it may list at a decent 14% premium. FYI – it was subscribed 82% on Day 1 of bidding. 😇

Stocktwits Spotlight

Orient Paper is +15% in the past week! That deserves a huge round of applause! Follow Ticker Tales for more awesome trading insights and add $ORIENTPPR.NSE to your watchlist and track the latest from our community.

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Disclaimer: Ticker Tales is not a SEBI registered advisor and you should not construe any information discussed herein to constitute investment advice. Consult your financial advisor prior to making any actual investment or trading decisions.

Earnings Highlights 

• HUL: Revenue: Rs 15,567 crore vs Rs 15,597 crore, -0.2% | Net profit: Rs 2,508 crore vs Rs 2,481 crore, +1%
• Kotak Mahindra Bank: Net interest income: Rs 6,554 crore vs Rs 5,653 crore, +16% | Net Profit: Rs 3,005 crore vs 2,792 cr +8%
• Tejas Networks: Revenue: Rs 600 crore vs Rs 275 crore, +2x | Net loss: Rs 45 crore vs loss of Rs 15 crore
• CESC: Revenue: Rs 3,244 crore vs Rs 3,129 crore, +4% | Net profit: Rs 301 crore vs Rs 336 crore, -10%
• Sigachi Industries: Revenue: Rs 111 crore vs Rs 69 crore, +61% | Net Profit: Rs 16 crore vs 10 crore, +60%

Earnings Calendar