Key Q4 Results Updates: With the likes of Maruti Suzuki, Wipro, Bajaj Finserv Infosys, TCS, HCL Technologies, HDFC Bank, Jio Financial, Reliance Industries, Tata Consumer Products, HUL, Axis Bank, Tech Mahindra, M&M, Vodafone Idea, Biocon, Godrej Industries, ONGC, having already released their earnings for the quarter ended March 31, 2024, the Q4 earnings season is now full swing. Market Participants are today keen on the performance of players like NMDC, BHEL, Ircon International, Hitachi Energy India, GE T&D India, JK Tyre and Industries, Metropolis Healthcare, Religare Enterprises, Arvind Fashions Limited, Welspun Enterprises, Dollar Industries, among others. Meanwhile, the street is also keeping a watch on how stocks are performing for the companies that have already released their earnings for the period.
The week will witness announcements from the likes of Grasim Industries, Nykaa, Jubilant Foodworks, ITC, Page Industries, Hindalco Industries, Ashok Leyland, Hindalco Industries, among others.
The company board recommended a final dividend of Rs 4.00 per equity share (i.e. 200 per cent) of face value of Rs 2 each.
Hitachi Energy India Limited reported a profit of Rs 113.66 crore during the fourth quarter of FY24, up 123.7 per cent in comparison to Rs 50.81 crore during the corresponding quarter of previous year. It posted revenue from operations at Rs 1,695.28 crore, up 27.1 per cent as against Rs 1,334.01 crore during the fourth quarter of FY23. The company EBITDA stood at Rs 182 crore, up 91.4 per cent on-year.
Ameera Shah, Managing Director, Metropolis Healthcare Ltd, said, “We have consistently surpassed industry volume growth for the past eight quarters and remain optimistic about continuing this trend. Despite significant network expansion over the last two years, we achieved EBITDA margins of 25.5 per cent in Q4 FY24. Looking ahead, we expect additional revenue from both existing and new networks, coupled with improved operational efficiency, to sustain our current margin levels in FY25 and further enhance our margin profile beyond FY25.”
Metropolis Healthcare recorded fiscal fourth quarter profit at Rs 36.53 crore, up 9.1 per cent in comparison to Rs 33.49 crore during the corresponding quarter of previous fiscal year. It posted revenue from operations at Rs 331.00 crore, up 17.1 per cent as against Rs 282.55 reported during the fourth quarter of FY23. The company EBITDA stood at Rs 80 crore, up 14 per cent on-year.
The Board of the company recommended a final dividend of Rs 3.50 per equity share of Rs 2 each (175 per cent) for the financial year ended 31st March, 2024, in addition to interim dividend of Re 1.0 per equity share of Rs 2 each (50 per cent) which has already been paid, i.e., total dividend of Rs 4.50 per equity share (225 per cent) for the said financial year.
JK Tyre & Industries Ltd recorded a profit growth of 56.2 per cent on-year to Rs 169.33 crore in comparison to Rs 108.38 crore during the fourth quarter of FY23. It posted revenue from operations at Rs 3698.45 crore, up 1.8 per cent as against Rs 3632.47 crore during the corresponding quarter of previous fiscal year. The company EBITDA was up 28 per cent at Rs 481.1 crore.
The company board recommended a final dividend at 12.5 per cent (Rs 0.25 per share of Rs 2 each) on the paid up share capital of the company for FY 2023-24. “Final Dividend, if declared by the Company in the Annual General Meeting shall be paid/ dispatched within 30 days from the date of Ammal General Meeting,” the company said in a regulatory filing.
State-owned Bharat Heavy Electricals Ltd (BHEL) posted its fiscal fourth quarter profit at Rs 489.62 crore, down 25.6 per cent on-year in comparison to Rs 658.02 crore during the corresponding quarter of FY23. It posted revenue from operations at Rs 8260.25 crore, marginally above the Rs 8226.99 crore recorded during the fourth quarter of the previous fiscal year.
“Within India Hospital space, four companies have reported Q4FY24 earnings so far. And the numbers seem to further confirm our view over the past 2-3 quarters that profitability and growth for the Hospitals sector are peaking out / have peaked out. We continue to foresee a long-drawn sectoral down-cycle that may start sooner than later, likely shattering common investor fads such as ‘structural one-way growth story’, ‘case-mix-driven ARPOB growth’, ‘year-after-year occupancy improvement’ and ‘profitability of new beds within a year’.”
Arvind Fashions reported profit for the quarter ended March 31, 2024 at Rs 24.32 crore, recording a growth of 122.9 per cent from Rs 10.91 crore during the fourth quarter of FY23. It posted revenue from operations at Rs 1093.85 crore, up 3.7 per cent as against Rs 1055.20 crore during the corresponding quarter of previous fiscal year.
Vascon Engineers Limited recorded profit of Rs 16.82 crore, down 66.1 per cent on-year in comparison to Rs 49.61 crore during the corresponding quarter of FY23. It posted revenue from operations at Rs 335.42 crore, up 2.5 per cent as against Rs 327.34 crore during the same period last year.
Welspun Enterprises on Tuesday recorded its fiscal fourth quarter profit at Rs 77.35 crore, posting a fall of 50.3 per cent on-year in comparison to Rs 155.60 crore during the corresponding quarter of FY23. It posted revenue from operations at Rs 821.11 crore, down 2.8 per cent as against Rs 845.08 crore during the same period last year. The company EBITDA stood at Rs 111 crore, up 17 per cent on-year.
Aether Industries reported a loss of Rs 1.43 crore during the fourth quarter of FY24 in comparison to a profit of Rs 37.56 crore during the corresponding quarter of previous year. It posted revenue from operations at Rs 117.53 crore, down 36.0 per cent on-year as against Rs 183.78 crore during the same period of the previous fiscal year.
Honda India Power Products Limited posted its fiscal fourth quarter profit at Rs 15.80 crore, recording a rise of 171.9 per cent in comparison to Rs 5.81 crore during the corresponding quarter of FY23. It posted revenue from operations at Rs 231.16 crore, down 26.2 per cent on-year as against Rs 313.30 crore during the same period last year.
The Board of Directors also recommended a dividend of Rs 17.50 per equity share of the company for the Financial Year ended March 31, 2024. The said dividend shall be paid to the shareholders on September 26, 2024, it said.
Tracxn Technologies recorded a fiscal fourth quarter profit decline of 94.2 per cent on-year to Rs 1.43 crore as against Rs 24.50 crore during the fourth quarter of FY23. It posted revenue from operations at Rs Rs 20.32 crore, slightly lower than Rs 20.34 crore during the corresponding quarter of previous year.
Steel Authority of India Limited (SAIL) reported fiscal fourth quarter profit at Rs 1126.68 crore, down 3.6 per cent on-year in comparison to Rs 1169.21 crore during the corresponding quarter of FY23. It posted revenue from operations at Rs 27,958.52 crore, down 4.0 per cent as against Rs 29,130.66 crore during the same period last year.
The company board also recommended a final dividend @ Re 1 per equity share of Rs 10 each for the financial year 2023-24 (i.e.10 per cent of the paid up equity share capital of the Company). The final dividend is in addition to the interim dividend of Re 1 per equity share of Rs 10 each, declared in February, 2024.
"Zydus Lifesciences showed revenue growth of 10% YoY to Rs 55 bn in line with our estimate. Domestic formulation delivered growth of 7% YoY; against our estimate of 10% growth. Consumer business grew by 10% YoY; above our estimated US sales came in at $304mn (our est. of $300mn) vs USD 221mn in Q3FY24.The quarter had sales from gRevlimid as expected. Emerging markets were up by 13% YoY driven by most of its key markets. API markets witnessed growth of 15% YoY."
- By Param Desai, Senior Research Analyst, Prabhudas Lilladher Pvt Ltd
In Q4FY24, Delhivery’s express parcel revenue declined 16% QoQ (+3% YoY), as e-commerce spends softened post a strong festive season. However, PTL revenue recovery (10% QoQ) and sustained profitability improvement (~400bps QoQ) helped the company deliver positive adj. EBITDA. This is the first full year of EBITDA profitability for the company. Management guided for 15-20% YoY revenue growth in express parcel segment and reduction in capex from 7.4% of revenue to 6.6-6.9%. Service EBITDA margin for express parcel segment is now in the guided ballpark of 18-20% and further efficiency led margin improvements are likely to be passed on to customers.
We maintain BUY on the stock with a target price of INR 600 valuing it at 40x FY26E EV/EBITDA. Key risks: i) pricing pressure in the express parcel or PTL business and ii) medium-term growth visibility worsens due to global headwinds.
- Analysts at ICICI Securities
- ONGC reported an EBITDA of Rs 174.1bn. PAT came in at Rs 98.7 bn on a standalone basis. Other income came in higher than expected at Rs 36.8bn.
- Oil production rose by 3% QoQ to 5.36mmt, while gas production at 5.1bcm was flat QoQ.
- Net oil realization came in at US$ 80.81/bbl (oil realization from JV fields was US$ 76.84/bbl) while gas realization came in at US$6.5/mmBtu.
- On a YoY basis, oil production grew 2.4% while gas production fell 3%.
- Announced a final dividend of Rs 2.5/share
“Oil India reported an EBITDA of Rs 23.4 bn (+11% QoQ, PLe: Rs 21.5 bn). Adj PAT came in at Rs20.3 bn (+28% QoQ, PLe: Rs13bn) on a standalone basis. Increase in PAT was on account of higher than expected other income and lower depreciation and finance cost. Total oil and gas production fell by 1% and 2% QoQ. The company announced a final dividend of Rs3.75/share and a bonus of 1:2 (1 bonus share for every 2 shares held). The company expects production to reach 4mmt of oil and 5bcm of gas by FY26. If the company achieves this production target, FY26 EPS would come in at Rs 73. However, on a conservative basis, we build in a 5% CAGR in oil and 10% CAGR in gas production over FY24-26E, resulting in EPS of Rs 67.3. We maintain ‘Accumulate’ rating on better visibility of production growth, valuing the standalone business at 9x FY26 adj EPS and adding the value of investments to arrive at our TP of Rs 722.”
- Swarnendu Bhushan, Head - Institutional Equities, Prabhudas Lilladher Pvt Ltd