The fall in R R Kabel share price came after the company announced weak September quarter of financial year 2025 (Q2FY25) results.
R R Kabel share price down 6% after Q2 PAT plunges 33% YoY (25-10-2024)
The fall in R R Kabel share price came after the company announced weak September quarter of financial year 2025 (Q2FY25) results.
VIP Industries : Luggage (25-10-2024)
Q2 FY25 Concall Summary
Business Updates
- In past six months the inventory has reduced by Rs 174 crores and market share has improved from 36% to 40%
- Volume growth was at 18% yoy for Q2 FY25
- Ecommerce continues to perform well with over 50% growth while traditional offline channel continues to under perform
- Hard luggage continues to be the fastest growing category with over 60% of overall revenues contributed from this category
- The Bangladesh factory is running well and should come in profit from Q3 onwards
Participants
Avendus SPARK
PL Capital
Centrum Broking
Investec
Sunidhi Sec
B&K Sec
QnA
- The inventory was liquidated at a lower cost because it was old inventory
- Going forward will focus disproportionately on brand VIP which has 800 bps higher gross margin than Aristocrat
- There are a lot of new D2C players entering the industry and they have a lot of money to burn which incumbents don’t have
- One more quarter of inventory woes remain post which will return back to normal
- For offline channels will give additional warranties and especially for VIP brand will keep pricing discipline even on online portals
- The quantum of slow moving inventory in soft luggage along with back packs and duffel bags is around 7 lakh units with value of around Rs 180 crores
- Modern trade has seen some de growth while ecommerce channel has grown much faster
- In H1 volume growth is 8% while value growth is 0% and this difference will narrow quite a lot in H2
- For FY25 clean up of the inventory is a must otherwise it will entail additional warehousing costs and also lead to a risk of inventory write off
- Once inventory liquidation is complete will focus more on profitability
- The BCG project is a 15-month project and two waves are over and currently in the third wave and the additional two waves will happen post the current one. This project should lead to a benefit of Rs 250 crore to the bottom line
- The insurance companies have not yet indicated anything much on the Bangladesh claim and small amounts are coming every quarter with Rs 5 crore expected in Q3 as well
Share price of Vedanta falls as Sensex drops 778.86 points (25-10-2024)
Promoters held 0.0 per cent stake in the company as of 30-Sep-2024, while FII and DII ownership stood at 11.45 per cent and 7.62 per cent, respectively.
BEL Q2 Results: PAT jumps 34% YoY to Rs 1,091 crore, beats estimates (25-10-2024)
BEL Q2 Results: The profit after tax (PAT) surpassed Street estimates of Rs 843 crore. In Q2, revenue from operations reached Rs 4,583 crore, marking a 15% increase from Rs 3,993 crore reported in the same quarter of the previous financial year.
West Life Development- McDonal Restaurant Franchise (25-10-2024)
WFL’s Q2 FY25 Financial Performance
Here is a summary of the key figures reported:
- Total Revenue: ₹618.48 crores
- Sales Growth (YoY): 0.6%
- Gross Profit: ₹431.08 crores
- Restaurant Operating Margin (ROM): ₹114.97 crores
Key Observations:
- The total revenue for Q2 FY25 shows a marginal year-over-year increase, indicating slow but steady growth.
- The gross profit remains relatively stable compared to the same quarter last year.
- The Restaurant Operating Margin (ROM) stands at ₹114.97 crores, showing profitability at the operational level.
Weaknesses:
- Continued Negative SSSG: Despite improvement, Q2 FY25 SSSG remained negative at -6.5%, indicating ongoing challenges in fully recovering to pre-pandemic same-store sales.
- Impact of External Issues: External community-related issues continued to impact some stores, affecting on-premise sales in specific locations. While WFL is actively addressing these issues, their extended duration presents a potential risk.
- Exposure to Macroeconomic Factors: WFL acknowledges the impact of macroeconomic factors, particularly higher inflation and subdued consumer spending, on its business.
Quality of Earnings:
- WFL’s gross margin and cost optimization efforts suggest no relative improvement in earnings quality.
- The continuing negative SSSG and the effect of external issues on on-premise sales raise questions about the sustainability of earnings growth.
- Overall, WFL’s Q2 FY25 results reflect a mixed performance.
Disclaimer: Invested and Biased. Less than 4% of PF. No transactions in the last 30 days. Post purely for study purposes. Consult your advisor before any transactions
Colgate-Palmolive shares down 3.88% as Sensex falls (25-10-2024)
A total of 18,766 shares changed hands on the counter till 01:44PM (IST)
Modi’s AI Mission Set To Take Off (25-10-2024)
Under the India AI mission, supercomputing, comprising over 10,000 GPUs, will be made available to various stakeholders for creating an AI ecosystem.
VST Inds slides after Q2 PAT slumps 37% YoY to Rs 47 cr (25-10-2024)
VST Industries declined 8.69% to Rs 314.10 after the company’s standalone net profit fell 37.38% to Rs 47.56 crore on 3.12% increase in revenue from operations (excluding excise duty) to Rs 358.95 crore in Q2 FY25 over Q2 FY24.
VST Inds slides after Q2 PAT slumps 37% YoY to Rs 47 cr (25-10-2024)
VST Industries declined 8.69% to Rs 314.10 after the company’s standalone net profit fell 37.38% to Rs 47.56 crore on 3.12% increase in revenue from operations (excluding excise duty) to Rs 358.95 crore in Q2 FY25 over Q2 FY24.