Key Q4 Results Updates: With the likes of Maruti Suzuki, Wipro, Bajaj Finserv Infosys, TCS, HCL Technologies, HDFC Bank, Shriram Finance, Jio Financial, Reliance Industries, Tata Consumer Products, HUL, Axis Bank, ‘Vedanta, Tech Mahindra, Bajaj Finance having already released their earnings for the quarter ended March 31, 2024, the Q4 earnings season is now full swing. Market Participants were today keen on the performance of players like JSW Steel, Shipping Corporation of India, NHPC, Godrej Industries, Zydus Industries, Astral, ZEE, Phoenix Mills, Balkrishna Industries, Bandhan Bank, Pfizer, Amber Enterprises India, Balrampur Chini Mills among others. Meanwhile, the street also kept a watch on how stocks were performing for the companies that have already released their earnings for the period.
The week will witness announcements from the likes of Jyoti CNC Automation, Trident, Data Patterns, Ujjivan Small Finance Bank among others
Q4 earnings: Godrej Ind, JSW Steel, ZEE, and 92 others announced results today
Delhivery narrowed its net loss to Rs 249 crore in FY24 from Rs 1,008 crore in FY23. Its revenue from services stood at Rs 8,142 crore in FY24, a growth of 13% Vs Rs 7,224 crore reported in FY23. EBITDA increased to Rs 127 crore on year in FY24 from an EBITDA loss of Rs 452 crore in FY23.
The company’s net profit declined to Rs 203.39 crore in the last quarter of FY24 from Rs 254.45 crore in Q4 of FY23.
“The board of the company recommended payment of an equity dividend of Rs. 1/- per equity share of Re. 1/- each to the Members for the financial year 2023-24, subject to the approval of the Members at the ensuing Annual General Meeting of the Company,” said ZEE in an exchange filing.
Bandhan Bank‘s net profit in Q4 of FY24 came in at Rs 54.63 crore against Rs 808.29 crore in Q4 of FY23.
The Board has also recommended Dividend of Rs. 1.50 (Rupee One and Fifty Paisa Only) per equity share having face value of Rs. 10 each (i.e., 15%) from the profits of the Bank for the Financial Year ended March 31, 2024, subject to approval of Shareholders at the Bank’s ensuing Annual General Meeting (‘AGM’). The Dividend on equity shares will be paid/dispatched after the same is approved by the Shareholders at the ensuing AGM.
“Non-Convertible Debentures with warrants which are convertible into or exchangeable with equity shares of the Company of face value of Rs 1 each (the “Equity Shares”) at a later date, for an amount not exceeding Rs 7,000 crores (Rupees seven thousand crores only), inclusive of such premium as may be decided by the board,” said JSW Steel in an exchange filing.
“We hereby inform that the Board of Directors at its meeting held today has recommended a Final Dividend of Rs. 7.30/- (Seven Rupees and Thirty Paise) (730%) per fully paid-up Equity Share of Re.1/- each for the year ended 31.03.2024. The dividend, if declared by the members at the 30th Annual General Meeting (AGM) of the Company, will be credited/despatched to the members, subject to deduction of tax at source, on or before 30 days from the date of Annual General Meeting,” said JSW Steel.
The company’s total rvenue from operations stood at Rs 5,533.8 crore in Q4 of FY24 in comparison to Rs 5,010.6 crore in Q4 of FY23.
The pharma company’s net profit in Q4 of FY24 grew to Rs 1,182.3 crore from Rs 296.6 crore reported in Q4 of FY23.
The Board of Directors at their meeting held today have recommended final dividend of Rs.3.00/- (@300%) per equity share of Re. 1/- each, subject to approval of the shareholders at the ensuing Annual General Meeting scheduled to be held on August 9, 2024.
“With new refreshes and battery electric vehicle (BEV) model launches, expect M&M to grow ahead of the industry (UV growth at 15% in FY25E). The response to new launches – Thar 5-door, XUV 3X0 and new BEVs – will be keenly monitored. Automotive mix in the near-term may weaken, given higher contribution from XUV 3XO, lower variants of XUV 700 and entry level pricing of new launches. The mid-single digit growth guidance for the tractor segment is encouraging. Monitor the cyclicality in the LCV segment but such dependency has dropped meaningfully for M&M. We expect margin to expand 100bps in FY24-27E. MM’s margin delivery for the auto segment has been impressive. We reiterate Accumulate with a higher SoTP-TP of INR 2,717 from Rs 1,860 as we increase our core EPS by 2-9% over FY25-26E; we roll forward to June 2026E. We value total automotive at ~27x P/E (from 20x) and the farm segment at 26x (from 18x) June 26E P/E with a subsidiary value of Rs 396 (from Rs 400),” said Elara Securities on Mahnidra & Mahindra after it posted Q4 earnings results.
“Cement prices have fallen by Rs 20-30/bag post-Mar’24, and demand and prices would be weak in H1 FY25 due to the elections and the monsoon. Coal prices rose by Rs1,500-2,000 a tonne. The higher cost of wood would be passed on via price hikes whose sustainability is a key monitorable. The 0.66m-tonne Vizag unit expansion was guided to be complete by Sep’25. We expect 6%/7%/14% volume (only cement)/revenue/EBITDA CAGRs over FY24-26. We introduce FY26e and retain our “Buy,” at a lower 12-mth TP of Rs267, 5x FY26e EV/EBITDA,” said Anand Rathi on NCL Industries.
The company’s net profit for the period came in at Rs 193.08 crore in Q4 of FY24, compared to Rs 131.48 crore in Q4 of FY23.
The Board has recommended a dividend of Rs. 32/- per equity share on face value of Rs.10 each for the year ended 31st March 2024, subject to approval of members at 99th Annual General Meeting.
“We continue to remain bullish on M&M as it should benefit from (1) increasing its presence in high growth category, (2) encouraging response from consumers towards new responses to continue to drive order book, (3) Capacity expansion to reduce the waiting period and timely execution of new products, (4) Diversification of powertrains and (5) Recovery in tractor volume along with strong sustainable margin. The management noted that commodity prices should remain benign in the coming period while better operating leverage and cost-cutting initiatives shall keep the margin profile steady. Factoring this, we estimate its Automotive volume/Tractor volume to grow at a CAGR of 10.7%/7% respectively over FY24-FY26E, hence, we forecast its revenue/EBITDA/APAT to grow at a CAGR of 14.3%/19.4%/14.6% over the same period,” said Prabhudas Lilladher on Mahindra & Mahindra after the auto major released its Q4 results.
“We retain our “Buy” with a target price of Rs 2,716 (Rs 2,306) valuing it at 22.5x on FY26E core EPS and Rs 221 for EV business and Rs 362 for listed subsidiaries.”
“We remain positive towards the growth of Indian as well international brands in the coming quarter. Also, the acquisition of Capital Foods and Organic India is expected to increase its revenue share of growth businesses of India sales. We believe the growth trajectory remains intact. Therefore, we assign a “Buy” rating on the stock with a target price of Rs 1,265,” said Anand Rathi in a research report on Tata Consumer Products.
“We cut our EBITDA to 11% for FY25E and 10% for FY26E, primarily to factor in weakness in cement prices. However, we expect Q1FY25 EBITDA/tonne for the cement business to improve as Q4 performance was depressed due to plant shutdown. Further, the TBK segment may benefit from the ramp-up in recently added capacity and RMC from buoyant infrastructure demand and improved operational efficiency,” said Elara Capital on Prism Johnson.
“The impressive hit rate on new SUV products and the better-than-expected tractor demand recovery, we feel, is well captured by stock rerating in the last two months. However, the long waiting period for the compact SUV segment is difficult to sustain, as competition from six global majors in the segment is intense with new refreshes expected from them soon. With the 1-year forward P/E and P/BV valuations adjusted for subsidiaries’ value inching near +2SD above the 10-year mean, we remain cautious and retain a “Hold” rating on the stock with the target P/E raised to 16.5x (15% premium to mean) and subsidiaries’ value of Rs 632,” said InCred Equities on Mahindra & Mahindra post Q4 results.
“Although EVs would ultimately impact Gujarat Gas’ CNG volumes too, due to increased focus on the addition of CNG outlets, the CNG segment is expected to also grow at 15% YoY in the medium term. The gas company is currently trading at 28.3x FY26x. Due to the high growth potential and the likelihood of EPS upgrades, we value the company at 30x FY26 and upgrade the stock to “Accumulate” with a target price of Rs 589,” said Prabhudas Lilladher on Gujarat Gas post Q4 results.
“We believe FY24 will post peak margin for Apollo Tyres and the tyre sector. The likelihood of earnings downgrades going forward is higher for the tyre sector with cost pressures looming which will restrict PAT CAGR for the sector to single digits over FY24-27E; thereby restricting further multiple upgrades. We built in a 4% revenue CAGR during FY24-26E, led by improvement in EU volume and stable domestic replacement demand. With capex intensity behind us, cumulative FCF generation is likely to be at Rs 66 billion during FY24-26E. We expect the margin to dip from 17.5% in FY24 to 16.7% in FY25E and 16.9% in FY26E, given the bottoming of raw material cost, increased competition and factoring in the impact of the EPR regulation. We downgrade to “Reduce” from “Accumulate” with a revised target price of Rs 506 from Rs 558 on 15x (unchanged) FY26E P/E,” said Elara Securities on Apollo Tyres.
