Stocks in the news:
1. M&M : M&M is seen reporting steady Q2FY22 results. Total volumes for the quarter were at 1.9 lakh units, up 2% QoQ (automotive volumes up 17% to 1.01 lakh units, tractor volumes down 11% to 88,920 units). Net sales are seen rising by 6.2% sequentially to | 12,493 crore with automotive ASPs seen at | 7.14 lakh/unit (up 2.5% QoQ) and tractor ASPs expected to increase 2% QoQ to |5.43 lakh/unit. Standalone margins for Q2FY22 are expected to dip slightly to 13.7% with consequent standalone PAT seen at | 1,073 crore, up 25.4% QoQ.
2. NCC Ltd : NCC Ltd to report its Q2 FY22 results today. We expect topline to grow 39.5% YoY to | 2150 crore, on a depressed base (~11% decline in Q2FY21), with improved execution during the quarter. Margins are expected at 10.5%, down 300 bps YoY as base quarter had lower costs. Reported PAT is expected to grow ~26% YoY to | 73.5 crore, driven by a strong operating performance. Key Monitorable: Management commentary on order inflows, execution ahead, status on Andhra Pradesh orders, receivables and net debt.
3. Indraprastha Gas : Indraprastha Gas' volumes are expected to increase 23.2% YoY (and 27.4% QoQ) in Q2FY22 as Covid-19 led restrictions affected demand in the base quarter. Total volumes are expected at 6.8 mmscmd (CNG: 4.9 mmscmd, PNG: 1.9 mmscmd). We expect marginal dip YoY in gross margins to | 13.4/scm. Margins may decline | 0.8/scm QoQ due to higher gas costs. EBITDA/scm is expected at | 7.8 per scm, marginally lower YoY. Consequently, PAT is estimated at | 331.4 crore, up 7.6% YoY and 35.6% QoQ
4. Petronet LNG : We expect Petronet LNG's topline to increase 60.4% YoY to | 9999.2 crore in Q2FY22. Total volumes are expected to decline 10% YoY to 228.7 trillion British thermal units (tbtu) (~4.4 MMT) on account of llower regas volume. On a QoQ basis, volumes are expected to improve 9.4%. Blended margins are expected at | 55.3/mmbtu, down 7.4% YoY and 8.2% QoQ. PAT is expected to decline 31.7% YoY (and flat QoQ) to | 633 crore
5. Action Construction : Action Construction reported a decent set of numbers amid a challenging quarter. Revenues grew handsomely both on yearly and sequential basis. Revenue for the quarter came in at | 360.9 crore, up 35% YoY & 12% QoQ. Gross margins increased by ~ 10 bps YoY & ~ 135 bps QoQ. EBIDTA margins came in at 9.6% vs 9.4% QoQ and 9.0% YoY. Absolute EBIDTA came in at | 34.8 crore, up 15.2% QoQ and 43.8% YoY. Ensuing PAT came in at | 23 crore vs 14.6 crore in Q2FY21 & | 19.3 crore in Q1FY22
6. 3i InfoTech : 3i InfoTech reported weak set of numbers on profitability. Revenue grew by 10.8% QoQ to |177.1 crore, aided by 10.8% QoQ in IT services (91% of the mix) to |161 crore. However the company reported EBITDA loss of |18.3 crore vs EBITDA of |1.5 crore in the last quarter due to sharp rise ( 80% QoQ) in other expenses. Consequently the company reported net loss of |23 crore for the quarter
7. Sundaram Finance : Sundaram Finance reported subdued numbers on overall basis, while NII growth was healthy at 28.9% YoY to |447.2 crore the net profit growth was limited to 9.7% YoY to |211 crore as a result of higher provisions. Gross NPA and Net NPA stood at 3.85% and 2.48% respectively when compared to 4.59% and 3.38% QoQ. Disbursements for Q2 FY22 recorded a growth of 14% YoY to |3,621cr while the assets under management stood at |29,811cr as against Rs29,823cr QoQ, representing a flattish growth sequentially and down 2.5% YoY.
8. Automotive Axles (AUA) : In Q2FY22, AUA's net sales rose by 21.1% QoQ to | 309 crore. Margins expanded by 110 bps sequentially to 7.2% with consequent PAT placed at | 10.1 crore vs. | 5.6 crore in Q1FY22. On B/S front, company posted CFO of | 19.1 crore for H1FY22 vs. | 61.3 crore last year on the back of lower payables.
9. MM Forging (MMF) : MMF's standalone revenues increased by 9.2% sequentially in Q2FY22 to | 261.3 crore with margins placed at 18.2%, up 10 bps QoQ. Consequently, consolidated profit at | 27.7 crore was higher by 16.2% QoQ.
