Stocks in the news:
1. United Spirits: United Spirits reported strong set of numbers. Net revenues more than doubled QoQ, which led to mere 7% YoY decline to | 2146 crore. EBITDA Margins contracted 553 bps YoY to 12.6% mainly due to 280 bps contraction in GMs led by one-time inventory provision in AP (110 bps impact) and decline in South franchisee business. Subsequently, PAT de-grew 43% to | 129 crore but came above I-direct estimate of | 58 crore, as strong operational performance was further supported by higher other income and lower depreciation
2.Lupin: Q2 revenues declined 12.0% YoY to | 3835 crore (I-direct estimate: | 3714 crore) mainly due to Kyowa divestment. US revenues grew 5.6% YoY to | 1398 crore, whereas domestic formulations remained subdued de-growing 0.7% YoY to | 1332 crore. ROW markets remained flat at | 351 crore. However, API segment grew a robust 22.5% YoY to | 374 crore. EBITDA margins contracted 164 bps YoY to 15.2% (I-direct estimate: 15.5%) due to lower gross margins and higher other expenses. EBITDA de-grew 20.6% YoY to | 581 crore (I-direct estimate: | 576 crore). Adjusted net profit stood at | 211 crore, down 49.7% YoY (I-direct estimate: | 249 crore) in-line with lower operational performance, lower other income and higher tax rate.
3. Pidilite Ind: Pidilite Ind reported a strong Q2FY21 performance led by a notable expansion in EBITDA margin and better than expected growth in bottom-line. The consolidated topline and bottomline increased by 4% and ~10% YoY to | 1880 crore and | 356 crore respectively, led by ~688 bps YoY expansion in EBITDA margin to 27%
4. SBI: SBI’s NII surged by 14.6% YoY due to QoQ improvement in NIM. Other income declined by 29% YoY QoQ as a result of higher base due to stake sale. Provisions declined by 19% QoQ and 23% YoY owing to lesser Covid provisions. PAT for Q2FY21 jumped by 51.9% YoY to |4575 crore. SBI has estimated loans worth |60000 crore come under stress by FY21 end , this is 2.5% of the loans. Total Covid-19 provision stand at |3247 crore. Decent asset quality performance with GNPA and NNPA declining by 16 bps and 27 bps QoQ to 5.28% and 1.59%. Loan growth near industry average as gross advances were up by 6.02% YoY
5. Apollo Tyres:ATL reported healthy Q2FY21 performance, with net sales rising 7.4% YoY to | 4,283 crore while margins came in at a four year high of 16.2%. PAT rose 1.4x YoY to | 200 crore.
6. Trent: For Trent, Overall 90% of Westside and Zudio stores have re-opened. While in June, the recovery rate was 32% of pre-Covid levels, the management indicated that EOSS, which began from August saw healthy offtake leading to 55% recovery rate. We expect revenues to decline 47% YoY to | 433.5 crore in Q2FY21. PBT losses are expected to narrow down to | 73.0 crore vs. loss of | 182.2 crore sequentially.
7. Berger Paint: Berger Paint's consolidated sales likely to increase by 7% YoY to | 1715 crore led by ~8% YoY volume growth in Q2FY21. Volume growth would be largely driven by pent up demand in the eastern and southern regions where the impact of lockdown was limited. Further, lower raw material prices and improved utilisation would lead EBITDA margin expansion by 120 bps YoY at 16.9%. Company is likely to record ~11% YoY growth in PBT to | 233 crore while PAT may see a decline of 11% YoY to ~| 173 crore
1. United Spirits: United Spirits reported strong set of numbers. Net revenues more than doubled QoQ, which led to mere 7% YoY decline to | 2146 crore. EBITDA Margins contracted 553 bps YoY to 12.6% mainly due to 280 bps contraction in GMs led by one-time inventory provision in AP (110 bps impact) and decline in South franchisee business. Subsequently, PAT de-grew 43% to | 129 crore but came above I-direct estimate of | 58 crore, as strong operational performance was further supported by higher other income and lower depreciation
2.Lupin: Q2 revenues declined 12.0% YoY to | 3835 crore (I-direct estimate: | 3714 crore) mainly due to Kyowa divestment. US revenues grew 5.6% YoY to | 1398 crore, whereas domestic formulations remained subdued de-growing 0.7% YoY to | 1332 crore. ROW markets remained flat at | 351 crore. However, API segment grew a robust 22.5% YoY to | 374 crore. EBITDA margins contracted 164 bps YoY to 15.2% (I-direct estimate: 15.5%) due to lower gross margins and higher other expenses. EBITDA de-grew 20.6% YoY to | 581 crore (I-direct estimate: | 576 crore). Adjusted net profit stood at | 211 crore, down 49.7% YoY (I-direct estimate: | 249 crore) in-line with lower operational performance, lower other income and higher tax rate.
3. Pidilite Ind: Pidilite Ind reported a strong Q2FY21 performance led by a notable expansion in EBITDA margin and better than expected growth in bottom-line. The consolidated topline and bottomline increased by 4% and ~10% YoY to | 1880 crore and | 356 crore respectively, led by ~688 bps YoY expansion in EBITDA margin to 27%
4. SBI: SBI’s NII surged by 14.6% YoY due to QoQ improvement in NIM. Other income declined by 29% YoY QoQ as a result of higher base due to stake sale. Provisions declined by 19% QoQ and 23% YoY owing to lesser Covid provisions. PAT for Q2FY21 jumped by 51.9% YoY to |4575 crore. SBI has estimated loans worth |60000 crore come under stress by FY21 end , this is 2.5% of the loans. Total Covid-19 provision stand at |3247 crore. Decent asset quality performance with GNPA and NNPA declining by 16 bps and 27 bps QoQ to 5.28% and 1.59%. Loan growth near industry average as gross advances were up by 6.02% YoY
5. Apollo Tyres:ATL reported healthy Q2FY21 performance, with net sales rising 7.4% YoY to | 4,283 crore while margins came in at a four year high of 16.2%. PAT rose 1.4x YoY to | 200 crore.
6. Trent: For Trent, Overall 90% of Westside and Zudio stores have re-opened. While in June, the recovery rate was 32% of pre-Covid levels, the management indicated that EOSS, which began from August saw healthy offtake leading to 55% recovery rate. We expect revenues to decline 47% YoY to | 433.5 crore in Q2FY21. PBT losses are expected to narrow down to | 73.0 crore vs. loss of | 182.2 crore sequentially.
7. Berger Paint: Berger Paint's consolidated sales likely to increase by 7% YoY to | 1715 crore led by ~8% YoY volume growth in Q2FY21. Volume growth would be largely driven by pent up demand in the eastern and southern regions where the impact of lockdown was limited. Further, lower raw material prices and improved utilisation would lead EBITDA margin expansion by 120 bps YoY at 16.9%. Company is likely to record ~11% YoY growth in PBT to | 233 crore while PAT may see a decline of 11% YoY to ~| 173 crore