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Being the most trusted provider of ICT services globally, Bharti Airtel is a leading telecommunication company. As per subscribers, it is one of the top three mobile service providers in the world and has a global network that spans the US, Europe, Africa, the Middle East, Asia Pacific and India. Taking into account the company’s financial performance, on a consolidated basis it reported growth of 21.89 per cent from ₹28,326.40 crore registered in Q2FY22, recording total revenue of ₹34,526.80 crore in Q2FY23. It has reported strong EBITDA growth of 27.39 per cent. Comparing the net profit for the second quarter of FY23 to the same quarter last year, it soared 87.39 per cent from ₹1,399.30 crore to ₹2,622.20 crore.
Considering the company’s yearly performance, its net profit soared to ₹5,882 crore as against loss of ₹12,271 crore during the previous year. Also, net sales rose by 15.83 per cent to ₹116,546.90 crore as against ₹100,615.80 crore during the previous year ended on March 2021. The company recently announced the deployment of its cutting-edge Airtel 5G Plus service at the Lal Bahadur Shastri International Airport (Varanasi) and Dr. Babasaheb Ambedkar International Airport (Nagpur). Airtel 5G Plus is also available at the new airport terminals of Bengaluru and Pune. It has also launched 5G services in Guwahati.
Customers will be able to access Airtel 5G Plus services in phases as the business builds up its network and completes the roll out. Recently, Airtel conducted a market-testing price hike in the states of Haryana and Odisha. Tariff hikes and 5G rollout are among the company’s strategic moves. The shares of Bharti Airtel have experienced a significant upswing and are currently trading close to their 52-week high with additional room for growth in the near term. Given the bright future prospects in the telecommunication sector brought on by 5G and the company’s line-up opportunities, we recommend BUY.
Incorporated in 2011, Delhivery Ltd. is an Indian logistics and supply-chain company that offers a broad variety of logistics services, including express parcel and heavy cargo delivery, freight services, warehousing, supply chain solutions, cross-border express delivery and supply chain software. The company also provides value-added services such as e-commerce return services, payment collecting and processing, installation and assembly services and fraud detection. Since its inception, it has successfully fulfilled over 1 billion orders across India. In order to service more than 18,000 pin codes, the company has established a nationwide network with a presence in every state.
The organisation is able to deliver 24 hours a day, seven days a week and 365 days a year thanks to 21 automated sort centres, 96 gateways, 93 fulfilment centres, 2,948 direct delivery centres and a team of over 58,000 individuals. The company’s full-year financials reveal that its net loss climbed to ₹1,007 crore in FY22 from ₹415 crore in FY21 whereas revenue surged by 88.74 per cent to ₹6,882 crore. Taking into account the company’s quarterly performance, on a consolidated basis it reported growth of 19.92 per cent from ₹1,497.76 crore registered in Q2FY22, recording total revenue of ₹1,796.10 crore in Q2FY23.
When comparing the net earnings for the second quarter of FY23 to the same quarter last year, the loss was reduced from ₹635.04 crore to ₹262.28 crore. Despite the fact that shares of Delhivery have dropped more than 35 per cent due to worries about the sustainability of revenue growth and profitability, the stock has witnessed a surge in volume with a favourable bias in recent sessions. The pandemic caused a disruption in the business. However, after battling this crisis the company is now able to properly conduct its operations and is attempting to recover all losses with each passing quarter. As a result, with an optimistic future for the logistics sector and the company’s position within it, as well as its potential for a recovery, we recommend HOLD.
Timken India is engaged in the manufacturing, distribution and sale of anti-friction bearings, components, accessories and mechanical power transmission products for a wide customer base across different sectors. It also provides maintenance contracts, refurbishment services and industrial services. The company has one primary segment such as bearings and allied goods and services for the automotive sector and the railway industry. It has a revenue breakup of 75 per cent from domestic sales and 25 per cent from export. The company clocked revenue from operations at ₹695.4 crore in the September 2022 quarter, which is 25 per cent higher than the corresponding quarter last year.
It reported a more than 23 per cent rise in the net profit of ₹97.6 crore on a YoY basis. Recently, the company announced that it would be setting up a new facility at Bharuch in Gujarat to manufacture spherical roller bearings and cylindrical roller bearings and components thereof which will enhance the manufacturing capacity of the company. This new facility will incur a cost of ₹600 crore which will be funded by internal accruals. The company at present does not manufacture these special bearings in India as they are imported from Timken’s group companies across the world and sold in India.
The company believes that these bearings have the prospect of a good market in and outside India. Timken India has a strong balance-sheet coupled with decent growth prospects led by strong growth in railways, wind and exports. Its business mix outperforms its peers due to low competition arising from a high share of exports and railways, the lowest threat of electric vehicle disruption due to the absence of two-wheelers and passenger vehicles and a dominant share in their niche segment. The stock has shown some positive traction as it surged 84.57 per cent in the last six months. Hence, we recommend BUY.
ONGC Limited is the largest crude oil and natural gas company in India with a market capitalisation of ₹175,307 crore, contributing around 70 per cent to Indian domestic production. ONGC has an in-house capability in all aspects of the exploration and production business and has discovered seven of the eight hydrocarbon-producing basins of India. With a structured and holistic approach to the energy business, it is well-poised to play a progressively important role as India’s energy anchor, with an increasing thrust on sustainability and social responsibility.
Promoters held 58.89 per cent stake in the company as of September 30, 2022 while FIIs owned 9.97 per cent and DIIs 18.52 per cent. The company earned a net profit of ₹12,826 crore during Q2FY23 as against ₹18,348 crore during Q2FY22, a decrease of ₹5,522 crore i.e. 30.1 per cent. The profit after tax for H1FY23 has increased by ₹5,350 crore which is 23.6 per cent from profit after tax of ₹22,682 crore in H1FY22 to ₹28,032 crore in H1FY23. The increase in net profit during H1FY23 is on account of higher sales revenue, mainly due to higher crude oil, natural gas and VAT price realisations and higher other income in the form of interest and dividend income.
The sales revenue for Q2FY23 and H1FY23 has increased by ₹13,908 crore (57.3 per cent) and by `33,092 crore (70.1 per cent) as against the corresponding quarter and H1 of the previous year. ONGC is now investing ₹5,900 crore in 20 major projects, including production of oil and gas reserves found in deep sea block KG DWN 98|2 (KG D5) and the fourth phase redevelopment of mainstay Mumbai High fields. This year, ONGC will reverse years of decline in production and gradually raise output, thereafter after raising billions of dollars to produce from the new discoveries. Hence, we recommend BUY.