Stocks in News: Rallis India, DCM Shriram, KPIT, Havells announce Q2FY23 Results - highlights

Q2FY23 Results: DCM Shriram on Wednesday reported a 19 per cent decline in its net profit to Rs 128.12 crore for the quarter ending September on higher tax outgo

Havells Q2 net profit dips 38% to Rs 187.01cr, revenue up 13.6% to Rs 3,679.5 cr. Source: Reuters

Q2 Results FY23: Several listed companies announced their July-September quarter results on Wednesday. Among them were, Rallis India, DCM Shriram, Havells India and KPIT. There could be stock specific action in these companies when markets reopen on Thursday. Here are key highlights of these results.

Rallis India's quarterly profit rises 26% to Rs 71 crore

Rallis India on Wednesday reported a 25.88 per cent growth in profit after tax at Rs 71.05 crore in the September quarter compared to the year-ago period.

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Its profit after tax stood at Rs 56.44 crore during the corresponding period of the previous fiscal, it said in a regulatory filing.

These figures are after taking into account the exceptional items.

The company's revenue from operations rose 30.69 per cent to Rs 951.18 crore in the second quarter of the current financial year. In the year-ago period, it stood at Rs 727.80 crore.

"Our second quarter revenues grew over 31 per cent over last year on the back of 31 per cent growth in the Crop Care business and 12 per cent growth in Seeds.

"Within our Crop Care, exports grew by 67 per cent and the domestic formulation business grew by 13 per cent. Despite the uneven distribution of monsoon, domestic business leveraged our geographic and portfolio diversity to achieve growth," Rallis India Managing Director and CEO Sanjiv Lal said.

While margins were satisfactory in the domestic business, international business margins were lower compared to the second quarter of the previous financial year.

Shares of the company on Wednesday closed at Rs 216.50, down 1.05 per cent on BSE.

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DCM Shriram Q2 profit down 19% to Rs 128cr; total income up 32%

DCM Shriram on Wednesday reported a 19 per cent decline in its net profit to Rs 128.12 crore for the quarter ending September on higher tax outgo.

Its net profit stood at Rs 157.87 crore in the year-ago period.

Total income rose to Rs 2,907.79 crore in the second quarter of the current fiscal from Rs 2,198.61 crore in the corresponding period of the previous year, according to a regulatory filing.

DCM Shriram is primarily into sugar, fertiliser and chloro-vinyl businesses.

Commenting on the result, Ajay Shriram, Chairman & Senior Managing Director, and Vikram Shriram, Vice Chairman & Managing Director, said the company reported a good overall performance during the second quarter of the fiscal.

The businesses continue to operate in a very volatile economic environment given the geo-political uncertainties, climate change, monetary tightening and fears of recession around the corner. India is better placed with strong GDP growth but is not immune to above factors, they said.

The company also gets impacted by these factors but has inherent strength in its business model and financials to manage the tough operating environment, said Ajay and Vikram Shriram.

The chemical business has performed well with reasonably firm product prices, a result of global supply chain imbalance. Vinyl business is facing headwinds of lower product prices with global decline in demand and higher sourcing from China. The major concern today for Chloro-Vinyl business is high energy prices which continue to be firm given the geo political instability, they said.

The company is taking steps to reduce our energy costs by setting up additional 120 MW energy efficient captive coal based power plant and tying up for 50 MW renewable power. It plans to take more such steps to reduce our costs as well as increase our green footprint.

"Sugar industry is poised for growth with favorable dynamics with respect to ethanol as well as Sugar. For the state of UP there is a need for better policy support to push exports as well as cane juice based ethanol," Ajay Shriram said.

The company is exploring opportunities to build multiple revenue streams beyond sugar and ethanol through circular economy.

Havells Q2 net profit dips 38% to Rs 187.01cr, revenue up 13.6% to Rs 3,679.5 cr

Havells India Ltd on Wednesday reported a 38.15 per cent decline in its consolidated net profit to Rs 187.01 crore for the second quarter ended on September 30, 2022, as commodity inflation hit its margins.

The consumer electrical goods maker company had posted a consolidated net profit of Rs 302.39 crore in the July-September quarter a year ago, Havells said in a regulatory filing.

Havells' revenue from operations rose by 13.63 per cent to Rs 3,679.49 crore during the period under review as against Rs 3,238.04 crore in the corresponding period last fiscal.

Its total expenses were at Rs 3,471.57 crore, up 21.10 per cent during the second quarter of FY 2022-23 as against Rs 2,866.54 crore.

Havells India Chairman and Managing Director Anil Rai Gupta said: "Decent revenue growth considering the inflationary environment. Margins adversely impacted due to commodity cost fluctuation."

"We believe that margins have hit the trough and are expected to improve hereon. The demand outlook remains positive,? he added.

Revenue from the Switchgears segment was Rs 487.90 crore and Rs 1,359.39 crore from the cables segment.

Havells' revenue from lighting and fixtures in the second quarter of FY23 was at Rs 401.75 crore. Its revenue from Electrical Consumer Durables was at Rs 773.47 crore.

Revenue from Lloyd Consumer, a company which Havells had acquired in 2017, was at Rs 419.79 crore.

Shares of Havells India Ltd on Wednesday settled at Rs 1,248.35 apiece on BSE, down 0.69 per cent.

KPIT Q2 net profit rises 28%, ups FY23 revenue guidance

Auto industry-focused engineering services company KPIT on Wednesday reported a 28 per cent jump in its September quarter net profit at Rs 83.56 crore, helped by a strong revenue growth.

The Pune-headquartered company also upped its revenue growth guidance for FY23 to 31-32 per cent, saying it does not see a major impact of the current set of macro challenges playing out into its business.

It reported a 17.2 per cent growth on the overall revenues during the reporting quarter at Rs 754.32 crore as against Rs 599.81 crore in the preceding year.

The operating profit margin came at 18.5 per cent as against 17.6 per cent in the year-ago period, and 19.4 per cent in the preceding June quarter. The company said an industry-leading double digit salary hike during the quarter impacted the margin by a couple of percentage points.

It is more confident on the margins front going ahead and narrowing the outlook to 18.5 per cent to 19 per cent for FY23, as against earlier target of 18-19 per cent, its co-founder, chief executive and managing director Kishor Patil told reporters.

Patil said a recent 80 million euro acquisition of Technica, which will start reflecting in the second half, will help take the overall revenue growth to up to 32 per cent, and added that without the acquired company's performance, the same would have been 23 per cent, which is still higher than the earlier revenue growth guidance of 18-21 per cent.

The company reported a total contract value of new deals signed during the quarter at USD 142 million, and added that it has a very strong pipeline which includes two deals of USD 100 million and above.

Patil acknowledged that the overall economic conditions continue to be uncertain at present, but motown continues to invest in software defined vehicles and other aspects where the company has offerings, due to which it is more optimistic.

To a specific question on European business, which contributes nearly 40 per cent of the revenues, KPIT's joint managing director Sachin Tikekar said that it is bullish about the market despite the ongoing geopolitical tensions.

Its overall employee base grew to 9,916 at the end of September as against 9,183 three months ago, and Patil said it now possesses the capacity to hire 1,000 people per quarter.

It is expanding its centre in Kochi, and has opened a new facility in Egypt, he said.

The company's scrip closed 1.63 per cent down at Rs 649.50 apiece on the BSE on Wednesday as against gains of 0.25 per cent on the benchmark.

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