Posted 2nd consecutive quarter of outperformance, margins surpassed all estimates driven majorly by good management of RMC, better product mix (higher sales of refreshed products), price increases, higher export contribution to 14% in Q4FY22 from ~7% in Q4FY21 & lower A&P spends. Management confirmed FY23 is the year of big bang launches & the team is very enthusiastic to get back its lost glory. 1) 1.5+ months of order book in hand, 2) expectation of gradual resolution of supply challenges, 3) driving CNG in the fast lane and 4) new launches to drive growth & margin improvement ahead. It is getting back its mojo back, strongly recommend BUY for a Target of 9,248. Vehicle laddering, CNG and promising new launches in FY23/24 to improve market share ü On ground demand momentum is healthy, driven by CNG model. Maruti is an undisputed leader with 85% share in CNG with multiple products offering is working really well. ü FY23 will be a year of big bang launches, which will plug the gaps to recover its lost market share and will be the answer to the competition. Industry outlook is also promising for 34-35 lakh units. ü Vehicle laddering strategy (placing products at every price point) worked well in hatchback segment, and our interaction with dealers indicates similar action will be fruitful in SUVs. International market is icing on the cake, reported triple digit growth in FY22 ü Reported highest ever exports of ~238K units, a growth of 148% in FY22 driven by usage of Toyota’s international network, introduction of more products, expanding reach & implementing innovative selling practices. The opportunity is good & renewed efforts are working very well. Margin improvement trajectory continued for a 3rd consecutive quarter, near term hiccups likely ü EBITDA Margin moved up from 4.2% in Q2FY22 to 6.7% in Q3FY22 & touched 9.1% in Q4FY22. ü We believe with 1) operating leverage, 2) better product mix (higher sales of refreshed products & high margin upcoming SUVs), 3) geographic mix (higher exports), 4) lower discounts/royalty, 5) price increase & cost initiatives to lift margins back to double-digit. ü Q1FY23 margins will be lower QoQ due to rise in steel, aluminium & copper prices. Negotiation is ongoing, and with higher production & price increase, Maruti can negate most of this impact. Other key highlights ü 1) FY23e capex of Rs 50bn announced majorly on new model launches, 2) Average discounts fall further to Rs 11,130 in Q4FY22 from Rs 15,200 in Q3FY22, 3) Inventory lowest at just 40K units. Valuations & recommendation ü We continue to remain positive on Maruti Suzuki on account of upcoming product launches and possible market share gains. Exports/CNG doing phenomenal, improvement in chip supplies is real. Expect an all-around improvement & a few ‘Swift’ kind of epic SUV launches can turn the tables completely. Recommend BUY, valuing at 27x to arrive at a target price of Rs 9,248 apiece.

Paradeep Phosphates Ltd (PPL) is the second largest private sector manufacturer of non-urea fertilizers in India

Net Interest Income (NII) for Q4FY22 increased by 15.3% YoY (+1.7% QoQ) at INR 3,11,979 Mn. NIMs stood at 3.4% in Q4FY22 vs 3.11% in Q4FY21.

Revenue exceeded estimates for Q4FY22 due to higher volumes at 77,119 Mt (+13.4% YoY). Revenue for Q4FY22 stood at INR 23,742 Mn (+35.4% YoY). For the FY22, revenue stood at INR 82,951 Mn (+43.4% YoY).

Net Interest income reported at INR 25,398Mn (+44.6% yoy / +19.5% qoq) and NIM improved at 8.7% in Q4FY22 as against 6.8% in Q4FY21.

In Q4FY22, VOL’s consolidated revenue grew by 73.73% YoY and by 31.77% QoQ to INR 4,861 Mn. For FY22 revenue was up by 69.29% to INR 16,155. Overall demand growth was led by ATBS segment.

Nitin Spinners Ltd (NSPL) came out with a good set of numbers in-line with estimates for Q4FY22 as demand remained strong with rising yarn prices (led by rising cotton prices). Supported by a well-diversified geographical reach the company registered a sales growth of 50.3% YoY to Rs7.7 Bn on account of strong growth across all segments, well supported by strong realization growth. Adjusted to higher base effect on margin, the company maintained its good margin profile despite continuous rise in cotton price. However, further rise in cotton prices looks difficult to pass on entirely, so moderation in margins in future is expected. And we have factored in the same in our projection. The company has already announced a capex of Rs9.5bn which will support strong growth during FY24 & FY25. We continue to maintain our BUY rating on the stock of the company with a target price of Rs451 per share, 8xFY24e EPS. A good performance, FY22 ended with higher even sales and PAT  During the quarter, the company posted growth of 8.4% YoY at Yarn sales volume front. Knitted fabric sales volume was lower by 7.6% YoY.  Woven fabric sales grew by 3.2% YoY. The company has some scope to increase business from fabric division.  Realization was higher 49.9% YoY/15.6% QoQ in yarn business whereas it was up by 27.2% YoY/flat QoQ in knitted fabric as the company continues to pass on higher cotton prices. Textile demand should be on track, capacity addition to propel medium term growth  The industry is getting several kinds of encouragement from the government.  Due to some geopolitical issues long term order booking is slow but short-term order booking on track. The strong demand should come back as situation normalizes.  Not much capacity is getting added in spinning industry and hence pricing comfort should be there.  The company has announced a capex of Rs9.5bn. With this capex, the company would be adding 1.5 lakhs spindles, 2500 MT/PA knitted fabrics and 10 mn Metres woven fabric over the next 15 months time. This is around 35-40% addition in the company's existing capacities. Valuation and risks  With announcement of new capex, Nitin Spinners growth path is clear from here till FY25.  Increasing share of processed woven fabric will further support the company’s overall sales growth and margin profile.  We assign 8x PE multiple to FY24E earnings and arrive at a target price Rs451 per share, offering 105% upside from current levels. Hence, we maintain our Buy rating.  Risk to our call is rise of cotton price, along with stagnation in yarn prices.

Net Interest Income (NII) for Q4FY22 increased by 23.1% YoY to INR 4,613Mn. For the full year FY22, NII stood at 15,833Mn, an increase of 16.3% YoY.

For Q4F2Y2, consolidated revenue de-grew by 11.5% YoY, JLR Revenue was down 27.1% and in FY22, revenues grew by 11.5% YoY.

During the quarter GFL’s revenue came at INR 10,738 Mn (+27.78% YoY / +6.87% QoQ). The growth was mainly led by robust demand for its fluoropolymers(PTFE), followed by volumes and prices of Ref gas which has marginally improved during the quarter. For FY22, the consolidated revenue stood at INR 39,536 (+49.16% YoY).