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 Energy, Dr Reddy’s Laboratories, IRB Infrastructure, Indraprastha Gas, IDFC, Kajaria Ceramics, Delta Corp, Pidilite Industries, United Breweries, Voltas, and Sonata Software among others. Meanwhile, the street was also keeping 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 Canara Bank, Hero MotoCorp, Bharat Forge, L&T, TVS Motors among many others.
Q4 results today: JSW Energy, Dr Redy's Lab, United Breweries, and many other companies released earnings
JSW Energy's revenue from operations grew to Rs 2,755.87 crore in Q4 of FY24 from Rs 2,669.97 crore in Q4 of FY23.
The company reported a net profit of Rs 345.27 crore in Q4 FY24, in comparison to Rs 282.03 crore it posted in the corresponding period a year ago.
The company announced a dividend of Rs 2 per equity share while declaring its Q4 earnings of FY24. "In terms of Regulation 30 of the Listing Regulations, please note that the dividend recommended as above, if declared by the Members of the company at the forthcoming 30th Annual General Meeting, shall be paid within 30 days from the date of the Annual General Meeting, subject to deduction of tax at source as applicable," said JSW Energy in an exchange filing.
Sonata Software board recommended a Final Dividend of Rs 4.40/- per equity share for FY24
Indraprastha Gas' revenue from operations declined to Rs 3,964.42 crore in the quarter ending March of FY24, against Rs 4,056.44 crore it reported in Q4 of FY23.
-In FY24, crossed $1 billion in Revenue Run-rate & $2 billion in market cap
-Won 67 large deals under pursuit; 52% of large deals pipeline with Fortune 500 clients
The company's profit for the period grew to Rs 433.29 crore in Q4 of FY24, compared to Rs 397.51 crore it reported in Q4 FY23.
The board also recommended a final dividend @ 250% i.e. Rs.5 per share (face value of Rs.2/- each) for the financial year 2023-24, subject to the approval of shareholders in the ensuing Annual General Meeting.
Net Profit at Rs 110 crore
Net Revenue at Rs 2192 crore
EBITDA at Rs 144.12 crore
EBITDA Margin at 6.6%
G V Prasad Co-Chairman & MD, Dr Reddy's on Q4 Earnings
“Our growth and profitability in FY2024 has been driven by our performance in the US. We have also made significant progress on future growth drivers through licensing, collaboration and pipeline building. We will continue to strengthen our core businesses through superior execution as we invest and build the future growth drivers.”
The company recorded a revenue of Rs 7,083 crore in Q4 of FY24, compared to Rs 6,296.8 crore it posted in the same period a year ago.
Dr Reddy reported a net profit of Rs 1,307 crore for the quarter ending March FY24, against Rs 959.2 crore in Q4 of FY23.
The company has recommended a final dividend of Rs 40/- (800%) per equity share of Rs. 5/- each for the financial year 2023-24. "The dividend will be paid on or after five days from the date of declaration of the final dividend by the shareholders at the ensuing 40th Annual General Meeting (AGM) of the company," said Dr Reddy's Laboratories.
The company's net profit in Q4 FY24 grew to Rs 188.9 crore from Rs 130.15 crore it reported in the same period a year ago.
The company has declared 3rd interim dividend of rupee 0.10/- per equity share of the face value of Rs 1/- each (@10% of face value of share) for financial year 2023-24. "The record date for the purpose of payment of dividends is Wednesday, May 15, 2024. The 3rd Interim dividend shall be paid within stipulated timelines as prescribed under law," said the company in an exchange filing.
"Raymond has created three distinct vectors, i.e., Lifestyle, Real Estate, and an engineering unit Newco (by acquiring MPPL), with each segment reenergizing growth. Raymond maintains its net cash position at the group level and has the ability to scale up each segment with internal accruals. We expect its consolidated revenue/PAT to grow at 15%/20% over FY24-26," said Motilal Oswal on Raymond after it released its Q4 earnings results. Reiterate the Buy rating.
"We expect Mahindra & Mahindra Financial Services to use the levers on product mix and fee income to deliver a 25 basis points YoY improvement in net interest margin. Benefits from the ECL provision release and a decline in write-offs will also result in improvement in credit costs. We estimate a CAGR of 16%/40% in AUM/PAT over FY24-FY26, with FY26E RoA/RoE of 2.4%/17%. Retain "Buy" with a revised target price of Rs 325 (based on 1.8x FY26E BVPS)," said Motilal Oswal on the company's results.
Gross margin hit a 28-quarter high of 51.6%, driven by softer input costs. EBITDA margin expanded 190bp YoY to 19.4%. EBITDA grew 12% (est. 14%). "We reiterate our "Buy" rating on the stock with a target price of Rs 625 (45x FY26E EPS). We believe that Marico is a good play on volume recovery," said Motilal Oswal on Marico.
"We believe gross margins are near peak and expect moderation in 2H25 as 1) wheat prices are expected to firm up post-harvest season 2) Palmoil prices are up 15% from the bottom and 3) packaging material prices are likely to firm up from 2H25. In addition higher spends on brand building and RTM 2.0 will result in 47bps decline in FY25 margins with 15bps recovery in FY26. We estimate 9.4%/11.6% sales and PAT CAGR over FY24-26. We value the stock at 48x FY26EPS and assign a target price of Rs5315 (Rs5157 earlier). We remain positive in long term, but the stock offers limited upside post sharp upmove," said Prabhudas Lilladher on Britannia Industries. Retain "Hold" rating.
Fresh slippages moderated to Rs 12.7 billion (1.1%). Healthy recoveries/ upgrades and higher write-offs, along with healthy growth, resulted in a 52bp/10bp QoQ decline in GNPA/NNPA to 4.0%/0.4%. SMA book stood at 0.5% of loans during the quarter. "We raise our earnings estimates by 7% each for FY25/26 and expect the bank to deliver an RoA/RoE of 1.3%/17.7%. Reiterate "Buy" with a revised target price of Rs 625 (premised on 1.1x FY26E ABV)," said Motilal Oswal on Indian Bank.
Seeing the gradual pickup in rural and the company's focus on growing its core, favourable mix, premiumization along with cost management and also the plan to continue gaining market share from addressable markets bodes well for the growth. "On the financial front, we expect its Revenue/EBITDA/PAT to grow by 10.5%/14.4%/14.9% CAGR over FY24-26E and maintain our "Buy" rating and a target price of Rs 666," said Religare Broking on Marico.
Management of Britannia Industries has guided double-digit volume growth in FY25 along with 2- 3% price hikes. The commentary appears quite promising for BRIT and the staple companies, which were reeling under pressure after weak revenue growth during the last 12-18 months. The volume recovery in FY25 will be in line with our opinion for staple companies (mentioned in our consumer thematic). "We raise our EPS by 2% for FY25-26E. Reiterate "Neutral" with a target price of Rs 5,250 (premised on 45x FY26E EPS)," said Motilal Oswal on Britannia Industries.
"Britannia will aggressively focus on driving volume growth - looking at mid-single digit in the near term & targeting a double-digit volume growth post-elections; aided by likely normal monsoons, RTM/distribution led initiatives and scale up in adjacencies. Moreover, the commodity outlook for FY25 is likely to be inflationary (post-elections) but manageable at c.3-4%, hence negative pricing (c.3% in 2HFY24) is now largely behind; which should also aid overall revenue growth," said JM Financial Services on Britannia Industries post Q4.
"With a robust volume outlook, healthy e-auction premiums, and lower costs, the outlook for Coal India remains positive. We maintain our revenue/EBITDA estimates for FY25 and FY26. The stock is trading at 4.4x FY26E EV/EBTIDA. We reiterate our "Buy" rating with a revised target price of Rs 530 per share, valuing the stock at 5.3x FY26E EV/EBITDA. Coal India remains our top pick in the metals and mining sector," said Motilal Oswal on Coal India.