Tata Power Company reported another strong quarterly performance in Q2 buoyed by higher profits from coal Mundra businesses, recovery in profits of Tata Power Solar Systems Tata Projects, and strong performance of distribution businesses.
On consolidated basis, Tata Power’s reported revenue for quarter, at Rs 141.5 bn mainly due to higher power sales across discoms higher revenue from coal businesses. performance of coal and Mundra businesses recovery in bottomline for Tata Projects was negated by a similar amount of deferred tax provision.
Tata Chemicals Ltd.’s Q2 FY23 consolidated Ebitda missed our estimate due to planned plant shutdown taken by the company in Tata Chemicals North America (U.S.) and the India region, resulting in a total volume loss of ~60 thousand tonne.
Barring that, operating performance in Tata Chemicals Europe Holdings Ltd. and in Kenya were strong with higher soda ash realisation and improved Ebitda/million tonne.
Globally, demand-supply scenario for soda ash has been buoyant and is expected to remain favorable in the near term.
HCL Tech Ltd. - HCL Tech posted better-than-estimated growth and a slightly higher margin in Q2 FY23. Revenue growth, at 3.8% QoQ constant currency and 15.8% YoY CC, is tracking better than last year’s, led by 5% plus sequential growth in both IT and business services as well as engineering research and development segments.
Wipro Ltd. - Wipro’s revenue growth came in line with consensus while margin was slightly lower (adjusted for Europe restructuring cost) in Q2 FY23.
Domestic coal production reached 205.6 mt in Q1 FY23, registering a 32% growth over the same period in FY22 on account of the low base effect
The global benchmark (South African thermal coal) had crossed its all-time high price of around $200 per tonne (which was seen in October 2021) and peaked at around $300 per tonne in April 2022 before settling at $285 per ton in June 2022.
During FY23 (up to May), the total coal imports declined by 1.8% over the same period in FY22, which is mainly on account of high international coal prices.
Godrej Consumer Products Ltd. reported a soft quarter both on growth and margin fronts led by a 4% decline in India-home care business, continued sluggishness in Indonesia business and sharp margin fall in international business especially in Latin America and SAARC.
Soft growth in Godrej Consumer key household insecticide and 12% constant currency decline in Indonesia business dragged topline price hikes taken by the company. Key positives were strong performance in home care, air freshener and hair care.
We expect Africa margin to improve