- #AdaniWilmar achieves second best Ebitda till date
- #SunPharma Q3 profit rises 17%
Tune in to 'The Reporter' for these and more top news of the day. #NDTVProfitLive
- #SunPharma Q3 profit rises 17%
Tune in to 'The Reporter' for these and more top news of the day. #NDTVProfitLive
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TVTranscript
00:00 India's third quarter profit rises 33% beats analyst estimates on the back of higher sales
00:06 and an increasing share of sports utility vehicles.
00:12 Ambuja Cements' third quarter stand-alone results miss estimates on lower volumes.
00:18 Profit grows by 39%, margins expand by 368 basis points.
00:27 Two companies to file IPOs. Northern Ark Capital plans to raise Rs 2,000 crore through the
00:32 offer while Blackstone backed Aadhaar Housing to refile IPO papers with reduced size. The
00:39 company plans to raise Rs 4,000 to 6,000 crore. These are NDTV exclusives.
00:54 Hello and welcome. You are watching the Reporter on NDTV Profit. I am your host Smriti Chaudhary.
00:59 As always we bring to you the market headlines along with national and international news
01:03 makers. Now, before we move on to the show, let's see how the markets fair today. I have
01:08 my colleague Neeraj Shah who is joining for a quick market wrap. Neeraj, how did the markets
01:13 fair today ahead of the budget tomorrow?
01:15 Well, strong day for the bulls ahead of the budget, ahead of the FOMC, I must say. A very
01:24 strong move, one that was unexpected, much as yesterday's fall was unexpected. But and
01:29 banks leading the way, 1.4% up, courtesy HDFC Bank. But the Nifty and the Sensex were today
01:36 punctuated by gains to the AutoPAC and the PharmaPAC. Frankly, that was it. Bring up
01:40 the mid-cap and the small-cap indices once and just see what's happened there. Look at
01:44 the market breadth. The advance decline ratio was solid. It was looking very, very strong
01:48 for a better part of the day. And this explains why. 1.6% gains for the mid-cap index and
01:54 over 2% for the small-cap index. This shows you the kind of gains that happened today.
01:58 Bring up the market breadth very quickly before we get to the individual movers. And you can
02:02 see how strong it stayed throughout the trading day. Good, solid show. Bring up the heat map,
02:08 a peppering of green, very little red. I'll start off with the red because there's only
02:12 one stock we're talking about, Larsen and Toubro, down 4% after the results. This might
02:17 also get corrected at some point of time because frankly, the numbers were not so bad as well.
02:21 Let's wait and watch what happens going ahead. But Pharma and Auto, look at the top list.
02:26 And there is Dr. Reddy's, there is Sun Pharma, there is Divi's and there is Cipla from the
02:31 PharmaPAC. And then there was Auto. So Aishwarya Motors, Tata Motors amongst the gainers. There
02:37 was Mahindra and Mahindra. There is Maruti up 2% after the numbers. So strong showing
02:41 today. Dr. Reddy's, Maruti as well as Sun Pharma were all result reactions. So very,
02:47 very solid moves there. Then if you just look at the individual movers within that index
02:51 beyond like, for example, Nifty Pharma, if we can pull up and just show you what happened
02:55 there. Just one index that I want to show, the Nifty Pharma gainers. Look at that. Dr.
02:59 Reddy's, Glant, Biocon, Loras Labs, Lupin, everything had a great move. So just goes
03:05 to show how strong the moves were. And even at the broader end of the spectrum, just quickly
03:09 the last thing I want to mark are some of the stocks that would have done well at the
03:12 mid cap and small cap end of the market. So if we can get up the BSE 500 gainers, the
03:17 top three movers on either the BSE mid cap, BSE small cap, what have you, you will see
03:22 what I'm talking about. Some pretty strong moves at a lot of broader end of the spectrum
03:26 stocks. Voltas, not so bad numbers. The market had gone into the results short and that stock
03:33 recovered. PNB on the fund raise recovered. Gujarat Gas about 4.8% higher as also M&M
03:39 financial result reaction and Concord about 2.5%. So strong showing for a clutch of names
03:44 in the session today. All in all, just the kind of data the bulls would have wanted ahead
03:48 of the budget. Thank you, Neeraj for that. We saw Maruti
03:54 closing 2% higher today and that's on the back of profit beating estimates and it surged
04:01 by 33%. Revenue also grew and margins expanded. My colleague, Vinay joins us to give a snapshot
04:07 of the earnings. Vinay, tell us the key highlights from the results.
04:10 Yeah, so Maruti Suzuki's profit beat estimates with a 30% rise due to higher sales and increased
04:18 share of SUVs. Sales rose 7.6% to 5.01 lakh units in the quarter. And within those sales,
04:26 if you see, the utility vehicle sales rose 60%, 1.5 lakh units. So you can see that clearly
04:32 the utility vehicle shares have risen in the overall sales and it is clearly benefiting
04:37 the company. And if you look at the combination of higher volumes and rise in average ticket
04:42 prices has also aided the company's performance in the quarter. Revenue rose 15% in the quarter
04:48 and that is also driven by the SUV sales and margin expanded to 11.7% compared with 9.7%
04:55 by last year. So this margin expansion has been aided by lower commodity costs. And if
05:02 you look at the highest ever quarterly exports, that has also aided the margins of the company.
05:08 If you look at the lower commodity costs, how they have impacted the company's financials,
05:12 the material cost as a percentage of sales fell 170 basis points to 74%. So that is how
05:20 the companies have fared in the quarter and much better looking future for the Maruti
05:24 Suzuki Company. Thanks Vinay for that. That was the results
05:29 of Maruti Suzuki. But big day for results, Ambuja Cements also came out with its third
05:35 quarter numbers and it missed estimates on lower volumes. Standalone profit rose 39%
05:41 year on year. Let's listen in to what CEO Ajay Kapoor has to say about the earnings.
05:49 Ambuja has achieved stellar financial results marked by revenue growth and operational efficiency.
05:55 Our net profit has witnessed a remarkable surge reflecting the company's resilience
06:00 and strategic initiatives in a dynamic market environment. The year on year consolidated
06:06 performance for the quarter reflects a revenue increase by 2.8% of Rs. 8,129 crores. The
06:15 operating cost went down by 9.8% at Rs. 4,526 per tonne, a reduction of Rs. 491 per tonne.
06:24 This is mainly on account of 21% decrease in energy costs driven by efficient fuel management.
06:31 We achieved a 25% reduction in kill fuel cost, now at Rs. 1.84 per 1000 Kcal down from previous
06:38 2.45. With these improvements in revenue and cost, our EBITDA is Rs. 1,732 crores, a jump
06:48 of 70% YOY. The EBITDA per tonne has increased by 65% to Rs. 1,225 and margin expanded by
06:59 8.4% at points to Rs. 21.3. We achieved 125% growth in profit after tax at Rs. 1,090.
07:08 Crores up from Rs. 488 crores, a jump of Rs. 602 crores.
07:14 Well, that was the CEO of Ambu Justice Events talking about the results. Revenue, profit,
07:20 EBITDA all rose but missed estimates. Now, let's move on to Sun Pharma that also came
07:26 out with its third quarter results and that was above estimates driven by strong sales
07:30 in key markets such as United States. Monal Sanghvi joins in with more on this. Monal,
07:37 tell us a little bit more about the results of Sun Pharma.
07:40 Thanks Smriti. Yes, the results were a beat. Net profit came in higher at around 17% in
07:48 line with estimates. Margin was around 27.07% which again was slightly higher than the same
07:55 quarter last year and it also beat estimates. So overall good. Like you said, yes, it was
08:01 aided by a great performance across geographies. So both US and India that make up for around
08:08 65% of Sun Pharma's revenue recorded a double digit growth with India revenue up 11% and
08:14 US revenue up 13%. A slight weakness on the emerging market sales but the rest of the
08:20 world made up for it and it was up 13%. Now, the CEO in the filing did hint at a new product
08:29 called Nidlaji and they are looking forward to that approval in Europe in the coming months.
08:36 So that's one thing to look out for on how it develops. All in all, quite a positive
08:41 for Sun Pharma. Alright, thank you Monal for that. Let's now
08:48 move on to Piramal Enterprises. A weak set of numbers coming in on that. Profit converted
08:54 to a loss of Rs 2,378 crore. Meanwhile, NPAs improved marginally. My colleague Vishwanath
09:02 Nair caught up with Jayaram Sridharan, the Managing Director at Piramal Finance. Listen
09:08 in. On December 19th, RBI had come out with a
09:13 circular that said that any financial institution that has exposure to alternative investment
09:20 funds, if you also happen to have exposure to one of the underlying clients of the AIF,
09:27 then you should go ahead and make provisions. We had made a stock exchange disclosure two
09:33 days after that, mentioning that we had a little over 3,000 crores worth of exposure
09:38 in AIFs. That's what we have dealt with during the course of the quarter. We had 3,500 crores
09:45 of total exposure into AIFs. Of that, about 1,700 crores was linked to some sort of assets
09:54 or accounts where we had exposure. We had a lot of debate internally, but then we decided
09:59 eventually to write down the entire 3,500 crores just to be very safe and fully compliant.
10:07 So we've gone ahead and taken a full 3,500 crore write down on our AIF portfolio. And
10:14 that on a post-tax basis has resulted in about 2,700 crores of hit. That 2,700 crores, against
10:21 that we have roughly 300 crores of regular profits, which is what gets netted off and
10:27 you end up with roughly 2,400 crores of reported losses that you mentioned in your opening
10:33 remarks. So that's broadly what has happened. These AIFs, the 3,400 crores worth of write
10:38 downs that we have taken, good quality assets, capital has been coming in from these assets.
10:43 And so the accounting action that we have taken now of taking full provisions doesn't
10:48 change the economic value of these assets at all. The economic value continues to be
10:52 what it was before we did the action. We have already received 1,100 crores of cash flow
11:00 from these assets in the prior periods. Just in this financial year, in the last three
11:06 quarters, we have received 700 crores of cash flow from these AIF instruments. We expect
11:12 that to continue in the quarters ahead as well. And now that we have written down that
11:18 entire exposure to zero, all the future cash flows that come in from those AIF instruments
11:25 will accrue to us directly through P&L. And we do expect almost all of that AIF investment
11:35 to be recouped over the next two years. That was the management of Pyramid Finance
11:40 talking about an exception provision that they had to make this time of over 3,500 crores
11:46 after RBI came out with its AIF regulations. Moving on to Darbar, that has also come out
11:52 with a positive set of third quarter numbers with revenue growing 7% and expansion of margins.
11:58 Sesha joins in with a qualitative view on this. Sesha, what were the highlights of this
12:02 quarter for the company? Right. So largely the numbers were in line
12:07 with the analyst estimates. Our revenue was up 7% at 3,255 crores. EBITDA was also up
12:14 9.5%. Margin at 20.5% versus 20% was exactly in line with the estimates. And net profit
12:24 again is up 6.2% over the previous year. Now the key takeaway during this quarter was that
12:31 the rural demand grew 200 basis points ahead of urban. This is at the time when the rural
12:37 demand is lagging urban demand for the entire industry. Moderating inflation, investments
12:43 in distribution, footprint, expansion are some of the key reasons, the key factors that
12:50 helped demand from hinterland bounce back. Now coming to the volume growth, domestic
12:55 volumes, X of the Badshah Masala acquisition grew 4% versus a minus 3% decline. I mean
13:05 the 3% decline in the previous year. However, including Badshah, the domestic volumes grew
13:12 6%. If we look at the categories, domestic food and beverages category led the overall
13:18 growth. It grew 6.7% under which the food businesses, including Badshah grew 22% while
13:25 the beverage segment grew 7%. Home and personal care also grew handsomely 6.6% growth there.
13:33 However, delayed winter hurt the healthcare segment which grew just 3% over the previous
13:40 year. Dabur has also said that 90% of the portfolio has witnessed market share gains
13:46 during the quarter. All right. Thank you, Sesha for that comprehensive
13:52 highlights of the results. Let's move on to Adani Wilma that also came out with its
13:58 third quarter results. As I said, big day for results. In the third quarter for Adani
14:02 Wilma, volumes rose steadily aided by stable rural demand and distribution expansion. But
14:08 the revenue fell due to lower edible oil prices putting profitability under pressure. Volume
14:14 grew by 13% in the nine months of fiscal 2024 with broad-based growth across segments. MD
14:19 and CEO, Anshu Malik told NGV Profit that the company has turned its losses into profit
14:26 and are back to normal when it comes to EBITDA and PAT. Listen in.
14:29 From the quarter point of view, one, we have turned around from the loss to profit. So
14:36 we are back in our normal EBITDA and PAT. One. Two is that the food business continues
14:45 to grow at around 18, 19%, but the domestic market is growing at around 40% plus. It's
14:52 the export of rice that has taken a little bit in, otherwise the volumes would have been
14:57 even more. Third is that PAT, edible oil has been showing a good growth and up to this
15:05 December, nine months, edible oil PAT is growing at around 16%, which is quite good. Market
15:12 share has gone up from 19.5 to 19.8 in oil. In mustard oil, let me tell you, we have been
15:18 growing at 20% CAGR for two years and that is the biggest domestic oil. So their fortune
15:26 remains the number one mustard oil brand in the country. Wheat flour has been growing
15:30 and market share has grown to 5.2%. So all in all, all the products have been growing.
15:36 So Q3 has been very good.
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18:40 Welcome back. You're watching the Reporter on NDTV Profit. Let's talk about Vodafone
18:44 Idea. The results were muted, but the management said that it plans to launch 5G in the next
18:52 five to six months. Now, this is obviously on the back of the funding that has not yet
18:57 come, but the company keeps saying that they are in conversation with the investors. The
19:02 management refused to take any questions in the earnings call on the matter of funding.
19:07 However, said that they'll roll out 5G, but it also said that it'll prioritize vendor
19:13 payments over Capex for that matter. So any revenue or the money that the company makes
19:19 will first go towards vendors. Now, the positive is for Industars here, which is one of the
19:25 biggest vendors of Vodafone Idea. And as per its third quarter results, Industars overdue
19:31 as on 31st to 5,700 crores. Now talking about the 5G as well, Akshay Mhunjra, the CEO of
19:38 the company said that they'll take five to six months to roll out 5G after they receive
19:43 the funding. And by the time he said there'll be clarity on monetization of 5G as well.
19:49 Currently, as you know, Jio and Bharti Airtel, the competitors have rolled out 5G, but they're
19:55 not exactly monetizing it. That creates a stress on the 4G side of it as well, because
20:01 there is no quantitative way to tell how much 5G is being used. And Akshay Mhunjra also
20:10 talked about promoters funding. Now, this Vodafone Idea said earlier, a couple of months
20:16 ago, actually last year, that the promoter of the company, one of the promoters of the
20:20 company is willing to commit 2000 crore rupees, which in comparison to the debt is nothing.
20:28 If you look at the net debt of the company that stands at 2.14 lakh crore. And the company
20:35 also gave out figures for FY25 and FY26. Now, FY25, the debt payable will be around 5400
20:44 crore, apologies. However, in FY26, when the moratorium for AGR payment lifts, the debt
20:52 will be around 30,000 crore. Of that 30,000 crore, 28,000 crore will be in AGR dues. So
20:59 we're yet to see how Vodafone manages all this. We're yet to hear from Vodafone Idea
21:04 about their funding plans and how they plan to repay this debt in the next two years.
21:11 So we'll keep a lookout on how Vodafone Idea fares and if they come out with any more funding
21:19 announcements, we'll keep you updated on that. But as promised earlier, let me bring you
21:24 an NDTV exclusive. Northern Ark Capital plans to file for an initial public offering in
21:29 the next 10 to 15 days to raise 2000 crore rupees. This is the company's second attempt
21:35 at listing as it had filed its draft papers with SEBI in July 2021, but did not go through
21:41 with the process. On the other hand, Blackstone-backed Aadhaar Housing Finance aims to refile for
21:48 IPO according to sources to NDTV Profits. Saloni Kothari joins in with more on this.
21:53 Saloni, what are you picking up on this? Right, Smriti. So obviously two financial
22:00 services companies planning to hit the market in February, planning to raise, combining
22:05 if you say like 4000, 4000 to 6000 crore from, for Aadhaar Housing Finance Company and about
22:12 2000 crore for Northern Ark. So that way, you know, we'll see about like 8000 crore
22:16 worth of IPO filings by next month. Talking about Northern Ark for that matter, it's an
22:22 IFC and they are planning to file it in the next two weeks and they aim to raise about
22:27 rupees 2000 crore. Now the number might differ because based on the OFS that they plan to
22:32 come up with, the company does not have a promoter as it's owned by multiple private
22:36 equity players such as Leapfrog, IIFL, 8Roads among others. And the other IPO is going to
22:43 have a mix of Fresh Issue as well as OFS by these private equity investors. Now I want
22:47 to mention that this is at the time another example of many private equity players taking
22:52 this IPO route to exit at least partially when we are seeing this market positive momentum
22:58 this year and also last year that we saw. And ICICI Securities, Axis Capital and Citi
23:02 are appointed as managers of the issue. Now talking about Blackstone, Blackstone backed
23:07 Aadhaar Housing Finance Company, they are planning to raise about 4000 to 6000 crore
23:13 with a mix of OFS and Fresh Issue. Now that is also like a second attempt of the company
23:18 to go for the IPO as they had planned to come up with it in January of 2021 and they had
23:25 got in SEBI not in May of 2022. But they did not go through it last year because they said
23:32 the market conditions were not right. So now they have planned to raise about 7000 crore
23:37 that way when they had filed and now it's about 4 to 6000 crore. So obviously a reduction
23:42 in the size that they are planning to do. So lots to watch and how many companies are
23:45 planning to tap the markets. Well yes, thank you Saloni for that. Two more IPOs in the
23:51 pipeline. That's all we have lined up for you on this edition of The Reporter. But stay
23:56 tuned to NTV Profit, lots more coming up.
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