Tag: StoxBox

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StoxBox: Views on India Gross Domestic Product (GDP) Quarterly YoY data

Jun 1, 2024 by Mansi Praharaj 0 Comments #GDP, #Indian economy, #StoxBox, #YoY data

BY: Manish Chowdhury, Head of Research, StoxBox

The Indian economy grew more-than-expected by 7.8% annually in the fourth quarter of FY24, much ahead of market expectations of a 6.7% growth. The growth momentum in the economy which grew 8.2% in FY24 can be attributed to the strong performance of the manufacturing and mining sectors due to the quality of capex spending in targeted areas and sustained domestic demand. With various high-frequency indicators indicating the sustenance of this growth in the current quarter as well, we believe that the initial groundwork is laid for beating market estimates and an upward revision to forecasts as we move ahead. We are of the view that the capex spending, which has moderated due to elections, would pick-up steam in future, thereby providing further fillip to the growth momentum.

Business

StoxBox: Views on Oil and Natural Gas Ltd. Q4 FY24 Result

May 22, 2024 by Sujata Muguda 0 Comments #D.K. Mudaraddi, #Higher crude production, #Oil and Natural Gas Ltd., #Oil and Natural Gas Ltd. Q4 FY24 Result, #ONGC, #Realization led growth, #StoxBox

By D.K. Mudaraddi, Research Analyst, Stoxbox on Oil and Natural Gas Ltd.

Oil and Natural Gas Ltd. Q4FY24 Result First Cut – Higher crude production and realization led growth.

  • The company reported a rise in its consol. revenue from operations of 1.9% YoY / up 0.1% QoQ to Rs. 1,69,875 crores owing to higher crude oil production of 2.4% YoY to 5.359 MMT. Gas production decreased 3% YoY to 5.101 BCM in Q4FY24.
  • Consol. EBITDA rose 5.3% YoY / up 13.2% QoQ to Rs. 23,225 crores, while EBITDA margin stood at 13.7% (up 50bps YoY / up 160bps QoQ) in Q4FY24. Low EBITDA growth YoY was owing to lower administered price mechanism (APM) gas price and lower oil and gas production by ONGC but partially offset by 5.8% higher crude oil realization at Rs. 6,709/bbl.
  • PAT for the quarter stood at Rs. 11,526 crores (up 77.9% YoY / up 19.6% QoQ) in Q4FY24.
    During the year, ONGC drilled 541 wells, the highest recorded in the past 34 years, comprising 103 exploratory and 438 development wells.
  • ONGC declared a total of 11 discoveries (6 in Onland and 5 in Offshore) during FY24 in its operated acreages. Out of these, 6 are prospects (1 in Onland, 5 in Offshore) and 5 are new pool (onland) discoveries.
    The board has recommended a final dividend of Rs 2.5 per share for the current financial year.
News

Shreyansh V. Shah, Research Analyst, StoxBox views on Bharti Airtel posted tepid results in Q4FY24

May 15, 2024 by Sujata Muguda 0 Comments #Bharti Airtel, #OTT services, #Shreyansh V. Shah, #StoxBox

Impacted by the devaluation of the Nigerian Naira, Bharti Airtel posted tepid results in Q4FY24. However, the company was still able to improve ARPU to Rs. 209, the highest in the industry, owing to their focus on upgrading customer plans, a better mix and the addition of high-value customers. The India business continued its healthy growth trajectory led by higher realizations and strong 4G/5G customer additions during the year. The company has effectively defended its market share of subscribers and gained a larger slice of the revenue pie, all while adopting a more restrained approach to 5G rollout compared to rivals, notably Jio. With a 15-17% price hike expected post elections, Bharti’s ARPU is poised to grow to new highs. Even excluding this hike, the ARPU is forecasted to grow, propelled by factors such as incremental tariff adjustments, ongoing conversions from 2G to 4G, migration from prepaid to post-paid plans, increased data consumption per user, and the allure of bundled offerings inclusive of OTT services. As we advance, the company’s progress on 5G adoption, capex trajectory, prepaid to postpaid conversion trends, and traction in home broadband will be key monitorable.

Bharti Airtel Ltd. Q4FY24 Result First Cut – Devaluation of the Nigerian Naira weighs on financial performance; ARPU growth continues

  •  Company reported revenue of Rs. 36,009 crores, up 4.4% YoY / down 0.8% QoQ in Q4FY24, below market expectations of Rs. 38,607 crores owing to currency devaluation impact in Africa.
  • India revenues for Q4FY24 stood at Rs. 28,513 crores, an increase of 12.9% YoY. Domestic mobile revenues grew 12.9% YoY, led by a rise in 4G/5G customers (28.6 million YoY and 7.8 million customers QoQ) and an increase in ARPU.
  • ARPU for the quarter stood at an industry-leading Rs. 210 in Q4FY24 compared to Rs. 208 in Q3FY24 and Rs. 193 in Q4FY23 on consistent strategy of acquiring high-value customers, improved realizations and pricing strategies.
  • The mobile data consumption was up 25% YoY, with consumption per customer at 22.6 GB per month.
  • Total customer base stood at 562 million in Q3FY24 compared to 551 million in Q3FY24.
  • EBITDA rose 4.2% YoY / down 2.3% YoY to Rs. 19,590.5 crores, while EBITDA margin stood at 52.1% (down 12bps YoY / up 78bps QoQ) in Q4FY24. India’s EBITDA margins improved to 53.6% (up 56 bps YoY) in Q4FY24.
  • Profit after Tax stood at Rs. 2,072 crores (down 31.1% YoY / down 15.2% QoQ) in Q4FY24, missing market expectations of Rs. 3,274 crores owing to higher tax expenses.
  • Net Debt to EBITDA (annualized) stood at 2.61x as on 31 March, 2024 compared to 2.59x in Q3FY24.
News

StoxBox: Views on HDFC Life Insurance Company Ltd. Q4 FY24 Result

Apr 19, 2024 by Sujata Muguda 0 Comments #APE, #HDFC Life Insurance, #StoxBox, #VNB

HDFC Life came out with a stable set of numbers, with consolidated net profit rising 14% in the quarter which beat consensus estimates. However, the business performance came in short of estimates, with APE and VNB margin declining in the quarter. Net premium income for the quarter stood at Rs. 20,533 crores which grew decently in comparison to the same period in the previous quarter. As guided, the company achieved its stated full-year APE double digit growth target by clocking a growth of 11% (on a normalized basis after adjusting for Rs. 1,000 crores one-off business in March 2023) despite the budget changes affecting high ticket business. We expect the company to increase its VNB margin going forward, with the company’s focus to increase share in the Tier-2 and Tier-3 areas which is showcased through its new branch additions largely in the focus market. Also, the company will be leveraging on the Exide Life’s network which will further enable it to penetrate the targeted markets while maintaining the quality of the business. We believe the company’s counter-share in the parent and strong brand will help the company navigate industry headwinds and provide growth visibility going ahead.

HDFC Life Insurance Company Ltd. Q4FY24 Result First Cut – Stable performance; Net profit beats estimates:

  •  Total Annualized Premium Equivalent (APE) was flat at Rs. 13,291 crores for FY24 compared to Rs. 13,336 crores in FY23. For the quarter, the APE stood at Rs. 4,727 crores as against Rs.5,162 crores in the previous year, declining 8.4%.
  • PAT was up by 34.4% QoQ / up 13.7% YoY to Rs. 411.6 crores in Q4FY24. For the full year, the PAT increased 15% to 1,569 crores from 1,360 crores.
  • The company’s Assets under Management (AUM) stood at Rs. 2,92,220 crores for FY24, registering a 22.0% growth compared to the AUM of Rs. 2,38,782 crores for FY23.
  • New Business Margin stood at 26.3% in FY24 which declined from 27.6% in comparison to the previous year.
  • Company’s 13-month persistency ratio increased to 86.2% in Q4FY24 compared to a year ago period of 85.3%, while the 61st-month persistency ratio was marginally down at 52.0%% for Q4FY24 compared to 52.5% in Q4FY23. For the full year, the 13-month/61-month persistency ratios stood at 87% / 53%, respectively.
  • In FY24, the solvency ratio declined to 187% against the solvency ratio of 203% in FY23.
  • In the Individual WRP category, market share marginally declined to 10.4% in FY24 compared to 10.8% in FY23. In its overall new business premium, market share increased to 8.0% in FY24 compared to 7.9% in FY23.