United Sprits, JSW Steel, TCI Express, Jindal Steel, Welspun

Stocks to watch in trade for May 30, 2022: United Sprits, JSW Steel, TCI Express, Jindal Steel, Welspun

UNITED SPIRITS LTD (Results + Strategic Review)

Fourth quarter results

Net Sales `2435cr vs `2885cr QoQ (down 16%) vs 2224 cr YoY (up 9.5%)

PAT `136cr vs `291cr QoQ (53% drop) vs 167 cr YoY (18.5% drop)

EBITDA `427cr vs `490cr (down 13%) vs 412cr YoY (up 3.5%)

EBITDA margin 17.5% vs 17% QoQ vs 18.5% YoY

Objective

-To enable a more precise focus on the ‘Prestige & Above’ segment (focus on premiumisation)

-To help achieve the growth mission (sustainable double-digit growth)

SALE OF 32 BRANDS TO INBREW BEVERAGES

Consideration: Rs 828 cr

The transaction is expected to close by September 30, 2022

FRANCHISE CONTRACT FOR 11 OTHER BRANDS

Period: 5 years

During these 5 years, Inbrew can

either a) convert a fixed-term contract into a perpetual contract and/or b) buy the brands

JSW Steel

JSW Steel reported strong fourth quarter results.

Turnover amounted to 44,568 cr, up 71% over one year and 21% over one quarter

PAT at 3343 cr; impacted by an exceptional loss of 741 cr

Marketable steel sales for the quarter were 5.99 million tonnes, up 47% year-on-year and 29% quarter-on-quarter

Debt

During the quarter, net debt was reduced by approximately 9,662 crore

Net debt to equity: 0.83x and Net debt to EBITDA: 1.45x

Capex

The company’s capital expenditure was approximately 3,845 crore in the fourth quarter of fiscal 2022

Capex of ~14,198 crores in FY22

Planned capital expenditure of around 18,240 crore for FY2022

Tips

Management forecast a sales volume of 24 million tonnes in FY23 (vs 18.18 MT in FY22)

TCI-Express (Annual)

Ops Rev `300cr vs `282cr; up 6%

PAT `36cr versus `42cr; down 14%

EBITDA `52cr vs `57cr; down 9%

EBITDA margin 17.4% vs. 20.3%

Redemption approved by the board of directors for an amount of ~Rs. 75 Crores via an open offer at an indicative price of Rs. 2050/sh –

CMP:1620; 28% bonus to CMP

Meghmani Finechem

Forays into green energy, to set up a solar hybrid wind energy project

Form SPV with Renew Green Energy Solutions Pvt. ltd. will set up an 18.34 MW hybrid power plant

MFL will hold a 26% stake in the SPV for a contribution of Rs 20.54 crore

ReNew Green Energy Solutions Pvt Ltd will contribute Rs. 58.46 crore for a 74% stake

The power plant is expected to be commissioned in Q3FY23

PG Electroplast (Consumed YoY)

A solid quarter thanks to the Products business with a gain in market share

The product business remains the company’s area of ​​focus and growth engine in the years to come.

Rev at 500Cr versus 329.6Cr; up 51%

EBITDA at 52.5 Cr against 25.3 Cr; up 107%

Margins at 10.5% versus 7.6%; expansion of 350 basis points

PAT at 27.6Cr versus 10.4Cr

FY23 Product Business Backlog Strong and Company Remains Confident About Outlook

Welspun Corp.

Approved Fundraising through private placement up to Rs. 500 crores

To buy a 26% stake in the Renewable SPV project in Gujarat for 40 cr

Jindal Steel

Set up rail wheel manufacturing plant in Chattisgarh

Initial capacity of 25,000 axles

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