Maruti, Dr Reddy's, SBI Life, BPCL Q2 Results: Key Highlights To Know Before Trade Opens On Monday

Four stocks in the segment of auto, pharma, life insurance and oil & gas will be in focus on Monday. These are Maruti Suzuki, BPCL, Dr Reddy's Laboratoties and SBI Life Insurance. The companies have announced their September 2023 quarter earnings and accordingly the stocks will witness movement in the coming days.

Here's what investors need to know about these four companies financial performance in the quarter ending September 30, 2023, period:

Maruti Suzuki:

On October 27th, Maruti shares settled at Rs 10,552.90 apiece, up by 1.21% on BSE. This is after the company hit a new 52-week high of Rs 10,846.10 apiece during trading hours of the day.

In Q2FY24, auto giant Maruti Suzuki registered a net profit og Rs 3,716.5 crore, rising by 80.3% from Rs 2,061.5 crore in Q2 of FY22. This was on account of higher Net Sales, softening of commodity prices, cost reduction efforts and higher non-operating income. During the quarter, net sales grew to Rs 35,535.1 crore as against Rs 28,543.5 crore in Q2FY23 on account of higher Net Sales, softening of commodity prices, cost reduction efforts and higher non-operating income.

During the quarter, Maruti said, 552,055 vehicles were sold. Sales in the domestic market were 482,731 units while 69,324 cars were exported. The same period in the previous year had seen total sales of 517,395 units comprising 454,200 units in domestic and 63,195 units in export markets.

Dhruv Mudaraddi, Research Analyst, StoxBox said, "n Q2FY24, Maruti Suzuki reported a stellar performance, especially on the profitability front. The company posted its highest-ever quarterly sales volume supported by robust SUV sales, better traction in their newer models, and significant discounts for entry-level cars which led to its highest-ever quarterly revenue in the second quarter. As expected, strategic price hikes in their popular offerings (SUV segment and mid-level hatchbacks) and a better sales mix in the quarter led to a 16.7% YoY growth in ASP."

Owing to softening commodity prices, higher realizations, and better operating leverage, Mudaraddi added, "MSIL was able to expand its EBITDA margin by ~370bps and achieve an impressive EBITDA growth of 72% YoY. Benefits from cost reduction and a recurring shift in the sales mix are clearly reflected in the impressive 80% YoY growth in PAT. This is the seventh consecutive quarter where MSIL has reported improving EBITDA margins which is a major positive for the company as the margins seem to be normalizing to the earlier band of 13-15% in FY14-16."

A significant reason for this is a somewhat permanent change in the sales mix where SUVs (more expensive models) form ~35% of the overall sales, he said.

Looking forward, Mudaraddi said, "The addition of CNG options to the mix, and improved rural and semi-urban sentiments in the latter half of the festive period will aid volume growth going forward. The management commentary on the progress of capex plans and the outlook on domestic demand across segments and price hikes going forward will be crucial."

SBI Life Insurance:

SBI Life's share price ended at Rs 1,302.55 apiece, down by 0.28% on BSE.

This SBI-backed life insurance subsidiary reported a net profit of Rs 380 crore, up by 0.8% from Rs 376.4 crore in Q2 of FY23. In the first half of FY24, the company posted new business premium of Rs 16,260 crore, rising by 20% YoY, while it maintained leadership position in indiviual rated premium to Rs 70,600 cror, registering a growth of 24.6% YoY in H1FY24.

The company's AUM grew by y 22% from Rs 2,82,632 crore as on September 30, 2022 to Rs 3,45,147 crore as on September 30, 2023 with debt-equity mix of 68:32. Over 95% of the debt investments are in AAA and Sovereign
instruments.

Amit Goel, Co-Founder & Chief Global Strategist , Pace 360 said, "The Top line increased by 4% to ₹ 28,569 crore, compared to ₹ 27,426 crore in the corresponding period last year and above the market expectation of ₹ 23,344 crore," adding, "The bottom line remained almost unchanged with an increase of just 0.9% to ₹380 crore compared to ₹377 crore in the corresponding period last year and below the market expectation of ₹ 443 crore."

Goel added, "Net premium income during the second quarter increased 22% (YoY) to Rs 20,050 crore. It was Rs 16,477 crore in the corresponding quarter of the previous year."

For the stock price, Goel said, "The Stock has remained flat in the last three month. It has gained just over 5% year-to-date (YTD) and is up by just 4% in the past one year. We expect the stock to remain largely sideways with no major drivers for a big move in the near term."

Dr Reddy's Laboratories:

Also, selling trend, Dr Reddy's share price settled at Rs 5,385.55 apiece on BSE, down by 0.72% on Friday.

This pharma giant earned a consolidated net profit of Rs 1,480 crore in the second quarter of FY24, registering a growth of 33% YoY and 6% QoQ. Revenue from operations stood at Rs 6,880.2 crore, up by 9% YoY and 2% QoQ, driven by North America and Europe.

During the quarter, the company filed 2 new Abbreviated New Drug Applications (ANDAs) with the US Food and
Drug Administration (USFDA). As of 30th Sep 2023, cumulatively 79 generic filings are pending for approval with the USFDA (75 ANDAs and 4 NDAs under 505(b)(2) route). Out of the pending 79 ANDAs, 41 are Para IVs, and we believe 20 have 'Firstto File' status.

Another research analyst at StoxBox, Prathamesh Masdekar said that the company has delivered another quarter of strong results with the highest-ever sales and profits, driven by market share gains and momentum in the US generics business and robust growth in Europe. During the quarter, the company launched four new products and completed Mayne Pharma integration which will partly offset the expected price erosion in the US market.

Meanwhile, he added, "the muted demand due to weak acute season will impact the domestic business for a short-term period. Further, the company continues to strengthen the pipeline organically and through business development to drive growth and create differentiation."

According to the analyst, the company will also actively look for other new investment avenues for growth across all the business segments. He further said, "Dr. Reddy's long-term growth outlook remains intact, and we expect the company to continue to deliver robust performance in the upcoming quarters."

BPCL:

Meanwhile, BPCL shares also ended broadly flat but in red at Rs 334.50 apiece on BSE after market hours of Friday.

Govt-owned oil marketing company, BPCL posted a net profit of Rs 8,243.55 crore on a consolidated basis in Q2FY24, as against a loss of Rs 338.49 crore in Q2 of FY23, however, bottom-line was lower from a profit of Rs 10,644.30 crore posted in Q1FY24. Revenue stood at Rs 1,16,657.34 crore, declining compared to Rs 1,28,355.72 crore in Q2FY23 and Rs 1,28,263.56 crore in Q1FY24.

As per Shreyansh Shah, Research Analyst at StoxBox, Oil refining giant Bharat Petroleum Corp. Ltd. reported a weak operational performance in Q2FY24 due to a sharp fall in the marketing margins of petrol and diesel after the rise in benchmark crude oil prices. However, the company has still partly recovered the losses reported in the last financial year.

Shah added, "We believe better marketing margins and higher GRM will improve the future performance of the company, and the ramp-up in utilization at the Kochi refinery and capacity addition at the Bina site will drive strong growth in refinery throughput going forward. With elections around the corner and crude oil prices firming up due to the Middle East conflict, we would closely watch for any moves by the government which may strain the financial performance of the company in the short to medium term."

Disclaimer:

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