Stocks in the news:
1. Ashok Leyland: Ashok Leyland reported healthy operational performance in Q2FY21 with positive EBITDA prints for the quarter – a key highlight. Revenues came in at | 2,837 crore, down 28% YoY. EBITDA for the quarter came in at ₹ 80.4 crore with corresponding EBITDA margins at 2.8%. Consequent reported loss at the PAT level was limited to | 147 crore.
2. Divis Lab: Q2 revenues grew 21.0% YoY to | 1749 crore (I-direct estimate: | 1679 crore). Generic segment grew 25.9% YoY to | 883 crore. Custom synthesis grew 18.1% YoY to | 700 crore. Carotenoids grew 9.9% YoY to | 167 crore. EBITDA margins expanded 843 bps YoY to 42.4% (I-direct estimate: 36.5%) due to significantly better gross margin performance and lower other expenditure. Subsequently, EBITDA grew 51.1% YoY to | 741 crore (I-direct estimate: | 613 crore). Net profit grew 45.6% YoY to | 520 crore (I-direct estimate: | 448 crore) in-line with strong operational performance. Delta vis-a-vis EBITDA was due to lower other income and higher depreciation
3. United Breweries: United Breweries’ reported lower than expected performance on the topline front, but higher on the profitability front, mainly due to higher other income. Net revenues grew 78% QoQ, but continued to lag behind its YoY comparable (down 43% YoY) to | 901 crore. Gross margins grew 730 bps QoQ and 70 bps YoY to 55.3% due to a better state mix and coupled with price increases to cover cost, which led to EBITDA margin of 4.5%. Subsequently, absolute EBITDA came at | 40 crore vs a loss of | 96 crore in Q1FY21. The company reported a PAT of | 4 crore and came above I-direct estimate of a loss of | 26 crore, as operational performance was further boosted by other income of | 33 crore
4.Bharat Electronics (BEL) reported revenues at | 3189 crore, strong growth of 16.3% YoY, above our estimate of | 2502 crore on the back of normalising supply chain, Ventilator order and business operations leading to execution pick-up. Absolute EBITDA for the quarter was at | 623.4 crore (vs. our estimate of | 329.4 crore) up 14.4% YoY. EBITDA margin was better than estimated at 19.6% (above our estimate of 13.2%) down marginally by ~30 bps YoY, owing to controlled operating expenses, better than expected execution. Hence, PAT came in at | 397 crore, up 16.9% owing to better execution, higher other income, which grew 82% to | 27 crore on a YoY basis.
5. Affle: Affle reported healthy set of Q2FY21 numbers. The company’s revenues increased 59.3% YoY to | 135 crore mainly led by healthy organic and inorganic growth (acquisition of Appnext & Mediasmart). Geographywise the company’s India revenues increased 43.4% YoY and Outside India grew by 78.8%. The company’s EBITDA margins were flat YoY at 25.5%. The company’s PAT increased by 73% YoY to | 27 crore mainly led by lower tax expenses and higher other income.
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6. Voltas: Voltas’s reported a healthy Q2FY21 performance with topline beating our estimates. Voltas’ consolidated topline grew by ~13% YoY to ~ | 1613 crore (Vs I-direct estimate: -11% YoY to ~| 1261 crore) led by revenue growth in all three segments. Despite a weak season, company’s UCP division sales increased by ~9% YoY to | 572 crore (Vs I-direct estimate: | 473 crore) led by pent up demand and rising work from home culture. UCP segment EBIT margin increased by ~223 bps YoY at 11% mainly due to various cost optimisation initiatives taken by the company amid period of lockdown. However, lower EBITDA margin (down by 140 bps YoY to 6.1%) is attributable to lower profitability from project business. PAT declined by ~26% YoY to ~| 80 crore (Vs I-direct estimate: | 91 crore) mainly due to lower margin and ~47% YoY decline in other income to | 38 crore.
7.Biocon: Goldman Sachs to invest | 1125 crore (~US$150 million) in Biocon Biologics. As per the proposed agreement Goldman Sachs will be issued optionally convertible debentures at a post money equity valuation of US$3.94 billion
8.NTPC: NTPC has informed the exchanges that Unit 2 of 800 MW of Lara Super thermal power station has started commercia
1. Ashok Leyland: Ashok Leyland reported healthy operational performance in Q2FY21 with positive EBITDA prints for the quarter – a key highlight. Revenues came in at | 2,837 crore, down 28% YoY. EBITDA for the quarter came in at ₹ 80.4 crore with corresponding EBITDA margins at 2.8%. Consequent reported loss at the PAT level was limited to | 147 crore.
2. Divis Lab: Q2 revenues grew 21.0% YoY to | 1749 crore (I-direct estimate: | 1679 crore). Generic segment grew 25.9% YoY to | 883 crore. Custom synthesis grew 18.1% YoY to | 700 crore. Carotenoids grew 9.9% YoY to | 167 crore. EBITDA margins expanded 843 bps YoY to 42.4% (I-direct estimate: 36.5%) due to significantly better gross margin performance and lower other expenditure. Subsequently, EBITDA grew 51.1% YoY to | 741 crore (I-direct estimate: | 613 crore). Net profit grew 45.6% YoY to | 520 crore (I-direct estimate: | 448 crore) in-line with strong operational performance. Delta vis-a-vis EBITDA was due to lower other income and higher depreciation
3. United Breweries: United Breweries’ reported lower than expected performance on the topline front, but higher on the profitability front, mainly due to higher other income. Net revenues grew 78% QoQ, but continued to lag behind its YoY comparable (down 43% YoY) to | 901 crore. Gross margins grew 730 bps QoQ and 70 bps YoY to 55.3% due to a better state mix and coupled with price increases to cover cost, which led to EBITDA margin of 4.5%. Subsequently, absolute EBITDA came at | 40 crore vs a loss of | 96 crore in Q1FY21. The company reported a PAT of | 4 crore and came above I-direct estimate of a loss of | 26 crore, as operational performance was further boosted by other income of | 33 crore
4.Bharat Electronics (BEL) reported revenues at | 3189 crore, strong growth of 16.3% YoY, above our estimate of | 2502 crore on the back of normalising supply chain, Ventilator order and business operations leading to execution pick-up. Absolute EBITDA for the quarter was at | 623.4 crore (vs. our estimate of | 329.4 crore) up 14.4% YoY. EBITDA margin was better than estimated at 19.6% (above our estimate of 13.2%) down marginally by ~30 bps YoY, owing to controlled operating expenses, better than expected execution. Hence, PAT came in at | 397 crore, up 16.9% owing to better execution, higher other income, which grew 82% to | 27 crore on a YoY basis.
5. Affle: Affle reported healthy set of Q2FY21 numbers. The company’s revenues increased 59.3% YoY to | 135 crore mainly led by healthy organic and inorganic growth (acquisition of Appnext & Mediasmart). Geographywise the company’s India revenues increased 43.4% YoY and Outside India grew by 78.8%. The company’s EBITDA margins were flat YoY at 25.5%. The company’s PAT increased by 73% YoY to | 27 crore mainly led by lower tax expenses and higher other income.
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6. Voltas: Voltas’s reported a healthy Q2FY21 performance with topline beating our estimates. Voltas’ consolidated topline grew by ~13% YoY to ~ | 1613 crore (Vs I-direct estimate: -11% YoY to ~| 1261 crore) led by revenue growth in all three segments. Despite a weak season, company’s UCP division sales increased by ~9% YoY to | 572 crore (Vs I-direct estimate: | 473 crore) led by pent up demand and rising work from home culture. UCP segment EBIT margin increased by ~223 bps YoY at 11% mainly due to various cost optimisation initiatives taken by the company amid period of lockdown. However, lower EBITDA margin (down by 140 bps YoY to 6.1%) is attributable to lower profitability from project business. PAT declined by ~26% YoY to ~| 80 crore (Vs I-direct estimate: | 91 crore) mainly due to lower margin and ~47% YoY decline in other income to | 38 crore.
7.Biocon: Goldman Sachs to invest | 1125 crore (~US$150 million) in Biocon Biologics. As per the proposed agreement Goldman Sachs will be issued optionally convertible debentures at a post money equity valuation of US$3.94 billion
8.NTPC: NTPC has informed the exchanges that Unit 2 of 800 MW of Lara Super thermal power station has started commercia