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The shares of Devyani International Ltd. were trading at Rs.140.15, up by 2.0% in today’s trading session.
The share price of Devyani International has increased by 21.03% in the last one month.
The stock of the quick service restaurant (QSR) company has been rallying since it reported a consolidated profit after tax (PAT) of Rs 46.6 crore in the September quarter of FY22. It had posted a net loss of Rs 65.5 crore in Q2FY21.
On the back of a strong business recovery following Covid’s second wave, the company’s revenue from operations more than doubled or increased 124% year on year (YoY) to Rs 516 crore in Q2FY22. EBITDA increased 175% year on year to Rs 123 crore, with margins improving to 23.9% from 19.49% in Q2FY21.
In the six months ended September 30, 2021, the company opened 111 net new stores across core brands, with 68 net new stores added in Q2FY22. The management stated that there has been a significant recovery in demand as the Covid 19 restrictions ease and vaccination coverage improves.
Devyani International is the largest Yum Brands franchisee in India and one of the leading operators of chain quick-service restaurants (QSRs). It works with Yum on various aspects of its operations for KFC and Pizza Hut to protect and manage the franchisor’s brand, including product innovation and development, brand strategy, and technology initiatives. Devyani also has a franchisee for the Costa Coffee brand as well as stores in India.
The shares of Trent Ltd. were trading at Rs.1092.65, up by 5.3% in today’s trading session.
The share price of Trent Ltd. has increased by 16.37% in the last three months.
The stock rallied after the company reported strong September quarter (Q2FY22) earnings, with a standalone profit after tax (PAT) of Rs 126 crore on the back of healthy revenue. In the previous quarter, the Tata Group company lost Rs 48 crore (Q1FY22).
In Q2FY22, the company’s standalone revenues more than doubled, or increased 126%, to Rs 1,020 crore from Rs 452 crore in the previous fiscal quarter. Furthermore, the company reported strong EBITDA margins of 21.7% in Q2FY21, up from 1.4% in Q2FY21.
Trent stated that the revenue recovery, combined with various cost-cutting measures, including property-related pay-outs, resulted in improved operating profitability. Beginning in the middle of June 2021, the company saw a rapid recovery in customer offtake as businesses reopened in many markets.
The shares of KPIT Technologies Ltd. were trading at Rs.345.00, up by 5.4% in today’s trading session.
The share price of KPIT Technologies Ltd. has increased by 13.15% in the last three months.
The stock has been rallying after the company posted a strong performance in the July-September quarter (Q2FY22).
The revenue growth outlook for FY2022 has been raised to 18% to 20%. The EBITDA margin outlook for FY2022 has been raised to 17.5% or higher. EBITDA was 17.6% in Q2FY22, compared to 17.3% the previous quarter after the full-quarter impact of wage increases.
Net profit for the quarter was Rs.651 million, up from Rs 602 million in the previous quarter, representing a 134% year-on-year increase and an 8.1% quarter-on-quarter increase. The company reported revenue of USD 80.36 million in Q2FY22, a 4.8% increase year on year.
Sequential CC growth of 4.8% across the commercial vehicle and passenger car verticals, across geographies. Despite the full-quarter impact of wage increases and newer additions, the Electric Powertrain and Diagnostics practices led to the growth in EBITDA. Margin expansion was aided by higher per-person productivity, lower subcontractor costs, pyramid improvement, and revenue growth.
Sequential net profit growth was aided by higher operating margins, in-line depreciation, and a higher cash yield, despite lower other income due to unfavorable currency movements.
After the dividend payout, the high cash conversion rate persisted, and the DSO was reduced by two days to 48 days. Net cash increased for the 11th consecutive quarter.
Kishor Patil, Co-founder, CEO, and MD of KPIT, commented on the performance of Q2 FY22 results, saying, “We are witnessing a robust demand environment, resulting in strong order inflow and pipeline.” We have increased our revenue and profit forecast for the year as a result of improved business visibility. Our strategic partnership with ZF will strengthen our position and allow us to better serve the upcoming high-spend areas of mobility companies.
Despite higher-than-average increments during the quarter, Q2FY22 was the fifth consecutive quarter of margin expansion. We will continue to focus on productivity enhancement, employee retention and development, and front-end strengthening in order to improve our overall performance on an ongoing basis.”
The shares of Allcargo Logistics Ltd. were trading at Rs.338.45, down by 2.9% in today’s trading session.
The share price of Allcargo Logistics Ltd. has increased by 65.18% in the last three months.
The shares of Allcargo Logistics Ltd. have been rising since the company reported a 355% year-on-year (YoY) increase in consolidated net profit at Rs 264 crore in the September quarter (Q2FY22). In the previous quarter, the logistics company earned Rs 58 crore in profit.
The company’s revenue from operations more than doubled to Rs 4,978 crore in Q2FY22, up from Rs 2,337 crore in the previous fiscal’s corresponding quarter. EBITDA margins rose 36 basis points to 7.29%, up from 6.93%.
The exceptional leadership of the management team across businesses has resulted in a record performance. According to Allcargo Logistics, the international supply chain business (MTO segment) has seen sustained growth as a result of volume growth and market share expansion in favorable market conditions.
Sales acceleration is being driven by transformation, and digital initiatives such as data projects, automation, ECU EDI, ECU click, and other apps to improve customer experience and service delivery are being implemented. According to the company, ECU360 is now a mature digital platform with a cloud-based front end.
The management expects the tailwinds from the liner business to continue. The industry has been suffering from low rates for several years and has now turned around the following consolidation, with no plans to return to earlier levels in the near future, according to management.
The shares of Sobha Ltd. were trading at Rs.951.90, up by 9.8% in today’s trading session.
The share price of Sobha Ltd. has increased by 47.72% in the last three months.
The stock has been rallying after the real estate developer announced a fundraising plan through the issue of unlisted secured redeemable non-convertible debentures on a private placement basis.
On Monday, November 8, 2021, the company’s board of directors will meet to discuss the company’s financial results for the quarter and half year ended September 30, 2021. Sobha said in an exchange filing that the board will also consider and approve the proposal to issue unlisted secured redeemable non-convertible debentures on a private placement basis.
Sobha achieved its highest-ever sales volume of 1.35 million sq ft valued at Rs 1,030.2 crore during the July-September quarter (Q2FY22). In Q1FY22, the company reported total sales of Rs 682.90 crore and Rs 689.90 crore in Q2FY21.
According to Sobha’s Q2FY22 operational update, structural changes in the real estate sector have created never-before-seen opportunities for established, financially strong, and multi-location-based developers to capitalize on the gradual but consistent pickup in housing demand.
The majority of experts in this sector agree that work from home, low-interest rates, increased affordability, significant improvement in the prospects of the IT sector and raises in salaries, etc., and the banking sector’s focus on assisting home buyers bode well for the sustainability of demand, according to the company.
“A steady reduction in unsold inventory and a resurgence in demand are lifting the housing market out of its slump.” Prices are rising. This, combined with potential market share gains, puts organized developers in a favorable position,” it added.
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Disclaimer: This document and the process of identifying the potential of a company have been produced for only learning purposes. Since equity involves individual judgments, this analysis should be used for only learning enhancements and cannot be considered to be a recommendation on any stock or sector.