Tag: AI

The Acrysil Group was founded in India in 1989, by Ashwin M. Parekh. We produced our first kitchen sink with a technical collaboration with Schock & Co., Germany – an established world leader. 30 years later his son, CMD Chirag A. Parekh, has led Acrysil into becoming one of the largest producers of quartz kitchen sinks in the world, under its brand Carysil.

The ‘CARYSIL’ brand represents a remarkable combination of innovative design, distinctive style, and aesthetic appeal. It aims to capture customers with its unique and eye-catching appearance, while also instilling pride and prestige in those who own its products. The brand’s ultimate goal is to establish Acrysil as an unrivaled leader and the ultimate destination for all your kitchen product needs.
CARYSIL Quartz Sinks have loyal customers in more than 30 countries worldwide. This includes prominent markets such as the USA, UK, Germany, France, Canada, China, the Far East, and Gulf Countries. To further solidify its presence in European markets, Acrysil has established a wholly owned subsidiary called Acrysil GmbH in Germany.
Building upon the success of CARYSIL Quartz Sinks, Acrysil has ventured into other product categories. These include Stainless Steel Sinks, Faucets, Food Waste Disposers, and a range of Kitchen Appliances including Hobs & CookTops, Ovens, Wine Chillers, and Dishwashers. This expansion demonstrates Acrysil’s commitment to diversification and meeting diverse customer needs.
Result Highlights

Carysil Ltd. reported a revenue growth of 5.6% quarter-on-quarter (QoQ) and 4.8% year-on-year (YoY) to Rs. 145.6 crores in Q4FY23, slightly beating market expectations of Rs. 141.8 crores. However, the quartz sink business revenue declined by 29.0% in FY23 due to a 20.9% decrease in volume caused by inventory destocking. The EBITDA stood at Rs. 26.2 crores in Q4FY23, up 4.9% QoQ but down 7.0% YoY, surpassing street estimates of Rs. 25.6 crores. The EBITDA margin contracted to 18.0% in Q4FY23, down 13 basis points (bps) QoQ and 228 bps YoY, but was in line with market expectations. The company’s net profit after tax (PAT) declined to Rs. 12.1 crores in Q4FY23 compared to Rs. 16.5 crores in Q4FY22, with a PAT margin of 8.3% compared to 11.9% in Q4FY22. The company recommended a final dividend of Rs. 2.0 per share.

Valuation and Outlook

Carysil Ltd. reported a solid revenue growth of 22.7% YoY to Rs. 593.9 crores in FY23, surpassing its target of Rs. 500 crores. However, the longer destocking period for quartz sinks affected the company’s EBITDA margins. The company remains positive about restoring its margins to around 20% through revenue growth, product mix improvement, lower freight costs, and stable foreign exchange rates. The ongoing destocking process and increased marketing expenses for the domestic business will be monitored closely. Carysil expects strong demand for quartz sinks and healthy order inflow for its export business in FY24. Expansion of steel sink capacity, doubling orders for quartz sinks from IKEA, and acquiring new customers will drive revenue growth and help achieve the target of Rs. 1,000 crores in FY25.

Key Concall Highlights

1. Carysil Ltd. aims to surpass Rs. 1,000 crores in revenue in FY25, with domestic business contributing 25-30%.
2. The company renewed a $68 million order with Karran Inc for quartz kitchen sinks in the USA.
3. Demand is recovering in the US and UK markets, but slower in Europe.
4. Carysil expanded its domestic dealership network from 1,500+ to 3,100+.
5. Steel sink manufacturing capacity doubled to 180,000 units per year, generating Rs. 80-90 crores.
6. The greenfield project for the Appliances division experienced delays, with commercial production expected in September 2023.
7. A subsidiary, Carysil FZ-LLC, was incorporated in the UAE to cater to the GCC market.
8. The company acquired a 70% equity share of Tap Factory Ltd. in the UK to strengthen its position in the Kitchen and Bathroom Brassware market.
9. April revenue was impacted by SAP implementation, but the company expects 15-20% revenue growth in FY24.
10. Capex for FY23 was Rs. 60 crores, and gross debt stood at Rs. 222 crores.
11. Sales volume: 5.14 lakh units (Quartz Sink), 1.08 lakh units (Stainless Steel sink), and 28,895 units (Kitchen Appliances).
12. Destocking of quartz sinks affected sales volume this quarter.
13. The company expects to reach a 20% EBITDA margin with reduced freight costs, stable foreign exchange rates, and a change in product mix.

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Devyani International Limited (DIL) is among the most trusted Chain Quick Service Restaurant (QSR) operators in the country and is the largest franchisee for Yum Brands (KFC & Pizza Hut) in India. Devyani International Limited is also the sole franchise for Costa Coffee Brand and stores in India. In addition, DIL caters to South Indian vegetarian food lovers with Vaango, a company that was launched almost a decade ago that is now a prominent brand in the Food Retail Business (FRB) category with its Food Courts. DIL has a strong presence across airports in India where it serves a variety of F&B offerings.

Quarterly Highlights

Devyani International Ltd. reported a revenue growth of 27.8% compared to the same period last year, reaching Rs. 755.0 crores in the fourth quarter of FY23. The growth was driven by the addition of new stores. However, the company fell short of market expectations of Rs. 740.8 crores.

In the same quarter, the EBITDA (earnings before interest, taxes, depreciation, and amortization) increased to Rs. 150.6 crores, showing a decrease of 13.4% compared to the previous quarter but an increase of 7.8% compared to the same period last year. The EBITDA margin, which indicates profitability, narrowed to 20.0% from 23.6% in the corresponding quarter. This was mainly due to higher employment expenses, slower growth in same-store sales, and the absence of price adjustments in the Pizza Hut category.

The company’s net profit after taxes (PAT) declined by 15.7% compared to the previous quarter and 21.2% compared to the same period last year, amounting to Rs. 59.9 crores in the fourth quarter of FY23. The PAT margin, representing net profit as a percentage of revenue, stood at 7.9% in Q4FY23, a decrease of 105 basis points compared to the previous quarter and 492 basis points compared to the same period last year.
Valuation and Outlook

Devyani International Ltd. achieved good revenue growth due to the addition of new stores.when? However, increased competition in the pizza category and higher dairy prices impacted their profit margins. The company’s overall brand contribution margin was also affected by one-time statutory bonus recognition and an unfavorable product mix. The expansion of stores in FY23, combined with lower average daily sales and slower same-store sales growth, suggests a slow recovery in consumer demand. In the long term, the company’s Costa Coffee and KFC portfolios show promise for growth. The performance of their Pizza Hut business remains a focus.
Key Concall Highlights

1. Devyani International added 66 net new stores in Q4 FY23 and 305 stores in FY23. They plan to add 300 more stores in FY24, focusing on non-metro cities and towns for growth.
2. Higher input costs led to a contraction in the company’s gross profit margin to 70% in FY23 from 71.2% in FY22.
3. Increased spending on local store promotions and statutory bonus recognition affected brand contribution, which declined to 16.4% in
   Q4FY23 from 18.3% in Q3FY23.
4. KFC experienced a contraction in gross profit and brand contribution margins due to sustained inflation in raw chicken prices. In Q4 FY23, lower average daily sales and higher operating costs resulted in a 17.5% brand contribution margin. The company raised prices in April 2023.
5. Pizza Hut faced challenges such as changes in product mix, high dairy prices, and no price adjustments in H2FY23, affecting gross profit and brand contribution margins. However, the introduction of a value layer is expected to drive volume growth in the medium to long term.
6. Costa Coffee saw lower gross margins due to increased milk and coffee prices, and brand contribution dilution due to higher investments.
7. The company plans to add 60-70 stores in FY24.

8. The company maintains its medium- to long-term outlook of 5-6% SSSG growth for KFC and 7-8% SSSG growth for Pizza Hut.

9. Other income increased to Rs. 33 crores in FY23 compared to Rs. 16 crores in FY22 due to accounting adjustments.

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Originally known as The Kumbakonam Bank Limited, City Union Bank was incorporated as a limited company on 31 October 1904. The bank was initially a regional bank in the Thanjavur District, Tamil Nadu.

Currently, City Union Bank has a strong network of 496 computerized branches and 1292+ ATMs which are spread across India.

In December 2006, Larsen & Toubro bought 10% of the bank. The bank celebrated its 110 years of service on 31st October 2014.

The entire introduction is a little broken. There needs to be a better flow going forward.

Results Highlight:

CUBK’s Net Interest Income (NII) for Q4FY23 was Rs. 514.3 crores, a slight increase over Q4FY22. For FY23, the NII increased by 13% to reach Rs. 2,163.0 crores. However, the Net Interest Margin (NIM) declined to 3.65% in Q4 FY23, mainly due to rising interest rates.

The bank’s Pre-Provision Operating Profit (PPOP) also declined in Q4FY23, primarily due to higher operating expenses. PPOP stood at Rs. 417.0 crores, down 16.2% QoQ and 5.2% YoY. On the positive side, the bank managed to control provisions, indicating asset quality improvement. Provisions decreased to Rs. 159.0 crores, down 29.2% QoQ and 7.0% YoY.

Net profit improved slightly to Rs. 218.0 crores, up 0.1% QoQ and 4.4% YoY. CUBK maintained its asset quality, with Gross Non-Performing Assets (GNPA) and Net Non-Performing Assets (NNPA) declining in Q4FY23 compared to the previous quarters.

However, the bank faced challenges in deposits and advanced growth. Total Deposits increased by 4.8% QoQ and 9.9% YoY, while Total Advances grew by 2.2% QoQ and 6.8% YoY. The Current Account and Savings Account (CASA) ratio also showed weakness, falling below the bank’s 30% target.

Return on Assets (RoA) improved to 1.46% in FY23 compared to 1.35% in FY22, and Return on Equity (RoE) increased to 13.42% in FY23 from 12.31% in FY22.

Valuation and Outlook

City Union Bank (CUBK), the oldest private-sector bank in the country, reported weak results in Q4FY23. Despite the interest rate hike by the central bank, CUBK couldn’t capitalize on the opportunity like its peers. The bank’s profitability relied on recoveries from NCLT proceedings and Treasury gains in the first half of FY23.

The management expects growth in Advances and business in the second half of FY24, but they are currently more focused on recoveries than business expansion. Unlike peers targeting the retail segment for improved NIMs, CUBK plans no change in Advances composition in FY24.

There are indications of an elevated Cost-to-Income ratio in FY24 due to increased deposit costs and higher operating expenses. Non-Interest Income growth is not expected to be significant in FY24. The bank has appointed BCG consultancy for digital lending process enhancement.

Cautious view for CUBK in FY24 due to focus on MSME and gold loans, absence of new products, and other factors.

Key Concall Highlights

1. The bank has made its underwriting process stricter in recent years.
2. The approval rate for new customers decreased from 45-50% to 25% in FY23 but is expected to increase in the coming quarters.
3. The bank’s loan composition remains unchanged, with the majority in the MSME segment (43%) and gold loans (25%).
4. Management expects credit growth of 12-15% in FY24, skewed towards year-end.
5. Slippages in FY23 were around 2.5-3% of total advances, resulting in a slippage ratio of 3.02%. The bank anticipates a reduction in the
6. slippage ratio and a return to pre-COVID levels of non-performing assets (NPAs) in the next 4-5 quarters.
7. Net interest margins (NIMs) may face pressure due to deposit repricing, potentially resulting in a cost-to-income ratio of 40%-42% in FY24.
8. The bank aims to maintain a return on assets (RoA) of 1.5% in FY24.
9. Profit growth challenges are expected in FY24 but will be compensated for by business growth and improved NPA recovery in the second half.
10. The bank is not focusing on retail loan growth like its peers and will maintain its existing loan composition.
11. NIMs are expected to decline by 10-15bps in FY24 due to deposit repricing.
12. The bank had significant profits in FY23 from Treasury gains and NCLT recoveries. These profits may not be replicated in FY24. However, the bank expects compensation in the second half.

Click here to view the detailed report.

Thousands of employees may be impacted by Meta’s upcoming round of layoffs, according to a Monday night Bloomberg News article.

The job losses, which might begin this week, would add to the 13% of Meta employees who had already lost their jobs as a result of a significant cost-cutting initiative launched in November.

The CEO of Meta, Mark Zuckerberg, had stated that this year would be focused on initiatives aimed at reducing the company’s expenditures, promoting 2023 as the “Year of Efficiency.” In February, he informed analysts that Meta would be concentrating on “reducing initiatives that aren’t performing or might not be necessary” and that it intended to “remove layers of middle management to make choices faster.”

The consumer technology company’s cost-cutting initiatives come at a difficult time, as it reported that during the fourth quarter, costs and expenses increased 22% year over year to $25.8 billion, while overall sales decreased 4% to $32 billion.

Due to challenges in the digital advertising industry, the lasting repercussions of Apple’s 2021 iOS privacy update, and rising competition from ByteDance-owned TikTok, Meta’s main online advertising business continues to face obstacles.

The corporation is still making significant investments in the metaverse’s development, which Meta believes might be the emerging field of mainstream computing. A $4.28 billion operating loss was incurred during the fourth quarter by the company’s Reality Labs division, which is in charge of developing the virtual reality and augmented reality systems required for the metaverse.

While stating that he regards layoffs “as a last resort,” Zuckerberg has stated that he will “take ownership” for the company’s previously disclosed cost-cutting efforts.

Zuckerberg stated last fall when Meta announced layoffs, “We’re restructuring teams to boost our efficiency. Yet these steps won’t be enough to bring our spending into line with our income growth, so I’ve also had to make the difficult choice to let employees go.