Query Board
JYOTHY LABS LTD.
Jyothy Laboratories Limited is a Mumbai-based fast-moving consumer goods company established in 1983. Looking at the quarterly consolidated numbers, net sales and other operating income for Q3FY21 was at Rs476.62 crore, increasing by 13.27 per cent as compared to net sales and operating income of Rs420.79 crore for Q3FY20. The operating profit for Q3FY21 was at Rs86.14 crore, increasing by 20.73 per cent as against Rs71.35 crore reported for the corresponding quarter of the previous fiscal year. The net profit for Q3FY21 was at Rs53.23 crore as compared to Rs45.02 crore for the third quarter of the previous fiscal year, an increase of 18.24 per cent. In terms of the annual trend, net sales and other operating income were reported at Rs1,711.17 crore for FY20, decreasing by 5.65 per cent as compared to Rs1,813.58 crore for FY19. In FY20, operating profit dipped by 12.22 per cent to reach Rs271.08 crore as against Rs308.83 crore for FY19. The company reported net profit of Rs162.58 crore in FY20 as against net profit of Rs197.60 crore in FY19, declining by 17.72 per cent. The company’s core portfolio of hygiene-related products, supported by the management’s focus on consumer-driven brand innovation and investment, technology and distribution, will make it capable of capturing larger market share. Hence, we recommend ACCUMULATE.
QUESS CORP LTD.
Quess Corporation Limited is known as India’s leading business services’ provider that offers a wide range of products to cater to the needs of organisations to manage their non-core activities. As for its quarterly consolidated numbers, net sales and other operating income for Q3FY21 was at Rs2,807.89 crore, a dip of 4.82 per cent as compared to net sales and operating income of Rs2,950.02 crore for Q3FY20. The operating profit for Q3FY21 was reported to be Rs160.69 crore, declining by 15.02 per cent as against Rs189.09 crore reported for the corresponding quarter of the previous fiscal year. The net profit for Q3FY21 was Rs45.51 crore as compared to Rs75.86 crore for the third quarter of the previous fiscal year, decreasing by 40.02 per cent. In terms of the annual trend, net sales and other operating income were at Rs10,991.48 crore for FY20, increasing by 28.90 per cent as compared to Rs8,526.99 crore for FY19. In FY20, operating profit increased by 32.3 per cent to reach Rs708.89 crore as against Rs535.80 crore for FY19. The company reported net loss of Rs418.05 crore in FY20 as against net profit of Rs265.36 crore in FY19. However, in spite of a weak performance in Q3FY21, the company has displayed healthy improvement in customer acquisition and retention metrics. Hence, with the company aiming to keep improving its business model, we recommend HOLD
MARICO LTD
Marico Ltd. is a consumer products’ company engaged in the beauty and wellness space. Its principal products company include edible oils and valueadded hair oils. The company operates in India as well as internationally with primary focus on the Middle East, South Asian Association for Regional Cooperation (SAARC) countries, Egypt, Myanmar, Malaysia, South Africa and Vietnam. Various brands are offered by the company in the categories of healthcare hair care, skin care, health foods, male grooming and fabric care.
On the quarterly consolidated financial front, the net sales and other operating income for Q4FY21 were Rs2012 crore, an increase of 34.49 per cent as compared to net sales of Rs1496 crore for Q4FY20. The operating profit for Q4FY21 was reported to be Rs348 crore which increased by 10.83 per cent as against Rs314 crore reported for the same quarter of the previous fiscal year. The net profit for Q4FY21 was at Rs227 crore as compared to Rs200 crore for the fourth quarter of the previous fiscal year, an increase of 13.5 per cent.
Taking into account the annual trend, the net sales and other operating income were reported to be Rs8,048 crore for FY21 surging up by 10.02 per cent as compared to Rs7,315 crore for FY20. In FY21, operating profit increased by 5.78 per cent to Rs1,685 crore as against Rs1,593 crore for FY20. The company reported net profit of Rs1,201 crore in FY21 as against net profit of Rs1,043 crore in FY19, registering gain of 15.15 per cent. Marico mainly focuses on maximisation of shareholder value. The dividend payout has been increasing over the years due to higher cash generation.
The company’s volume growth is expected to be 8-10 per cent in the medium term. In favour is the fact that rural consumption has increased led by combination of increasing income and higher aspiration levels. Hence, due to the predicted rise in demand for FMCG products we recommend BUY.
TANLA PLATFORMS LTD
Tanla Platforms Ltd., previously known as Tanla Solutions Ltd., is an India-based cloud communication provider company. It connects businesses with their customers, stakeholders and intended recipients. The products offered by the company include messaging, voice and Internet of Things (IoT). Tanla Platforms serves various sectors, including banking, financial services, insurance, social media, e-commerce, government agencies and aggregators via multi-year contracts which contain an automatic renewal clause.
On the consolidated financial front, the net sales and other operating income for Q3FY21 were Rs654.11 crore, an increase of 21.35 per cent as compared to net sales of Rs539.04 crore for Q3FY20. The operating profit for Q3FY21 was reported to be Rs129.31 crore, a substantial increase of 96.17 per cent as against Rs65.92 crore reported for the same quarter of the previous fiscal year. There was massive increase in the net profit for Q3FY21 at Rs93.52 crore as compared to Rs0.68 crore for the third quarter of the previous fiscal year.
Taking into account the annual trend, net sales and other operating income were reported to be Rs1,942.84 crore for FY20, jumping up by 93.52 per cent as compared to Rs1,003.96 crore for FY19. In FY20, operating profit increased by 83.9 per cent to Rs197.39 crore as against Rs107.33 crore for FY19. On the contrary, the company reported net loss of Rs209.47 crore in FY20 as against net profit of Rs30.13 crore in FY19. This can be traced to the substantial increase in current taxes. In the third quarter of FY21, Tanla Platforms reported its status to be debt-free along with its subsidiaries.
The company has acquired a healthy mix of customers from leading verticals. The company has depicted an attractive financial performance and the predicted growth in the IT sector would give a further boost to the company’s growth and performance. Hence, we recommend HOLD.
BRITANNIA INDUSTRIES LTD.
Britannia Industries is known as one of India’s leading food companies, possessing a century-old legacy and annual revenues reported in excess of Rs9,000 crore. The company is considered as one of the most trusted food producing entities and manufactures some of India’s favourite brands like Good Day, Tiger, Milk Bikis and Marie Gold, found in almost every household across the country. The product portfolio of the business includes biscuits, breads, cakes, rusk, and dairy products such as cheese, beverages, milk and yoghurt. These products are available pan-India in about 5 million retail outlets and cater to the needs of over 50 per cent of Indian homes.
On the quarterly consolidated financial front, the net sales and other operating income for Q4FY21 was Rs3,130.75 crore, an increase of 9.17 per cent as compared to net sales of Rs2,867.70 crore for Q4FY20. The operating profit for Q4FY21 was reported at Rs568.58 crore, increasing by 6.7 per cent as against Rs532.90 crore reported for the same quarter of the previous fiscal year. The net profit for Q4FY21 was Rs359.49 crore as compared to Rs372.24 crore for the third quarter of the previous fiscal year, a dip of 3.43 per cent. In terms of the annual trend, net sales and other operating income were reported at Rs13,136.14 crore for FY21, increasing by 13.25 per cent as compared to Rs11,599.55 crore for FY20. In FY21 the operating profit increased by 32.96 per cent to Rs2,822.16 crore as against Rs2,122.58 crore for FY20.
The company reported net profit of Rs1,849.78 crore in FY21 as against net profit of Rs1,393.16 crore in FY20, an increase of 32.78 per cent. Emerging from the worst period of the lockdowns, the company is set to resume its marketing activities. It has also launched new products in the quarter. It has witnessed healthy growth in the Middle East region and Africa. It also follows sustainable practices to reduce plastic, conserve energy and improve nutrition. Hence, we recommend HOLD.
TITAN COMPANY LTD.
Titan Company Limited is a joint venture between Tata Group and the Tamil Nadu Industrial Development Corporation (TIDCO) which initiated its operations in 1984 under the name Titan Watches Limited. It is known as the fifth-largest integrated brand watch manufacturer in the world. . It owns brands like Tanishq, Raga, Titan, Fastrack and Sonata. Titan Company owns 12 manufacturing and assembly facilities along with state-of-the-art artisan centres for making jewellery. The components are also exported to Swiss watchmakers.
On the quarterly consolidated financial front, net sales and other operating income for Q4FY21 was Rs 7,494 crore, an increase of 59.07 per cent as compared to net sales and operating income of Rs4,711 crore for Q4FY20. The operating profit for Q4FY21 was reported at Rs874 crore, increasing by 33.64 per cent as against Rs654 crore reported for the same quarter of the previous fiscal year. The net profit for Q4FY21 was Rs568 crore as compared to Rs343 crore for the fourth quarter of the previous fiscal year, an increase of 65.6 per cent. In terms of the annual trend, net sales and other operating income were reported at Rs21,644 crore for FY21, increasing by 2.81 per cent as compared to 21,052 crore for FY20. In FY21, operating profit declined by 27.1 per cent to Rs1,910 crore as against Rs2,620 crore for FY20.
The company reported net profit of Rs979 crore in FY21 as against net profit of Rs1,497 crore in FY20, a decrease of 34.6 per cent. Through the past three decades, Titan Company has strengthened its footprint in underpenetrated markets and created lifestyle brands across various product categories. The company witnessed good consumer demand during the recent festive season and recorded revenue of Rs6,947 crore excluding bullion sale with growth of 12 per cent. It posted strong growth of 16 per cent in its jewellery division. Its other two divisions have also moved closer to full recovery. Hence, we recommend BUY.
(Closing price as of May 03, 2021)