Daily Equities Bottom-Up: Avanti Feeds- Q2 FY18 Results Update and more

In this briefing:

1. Avanti Feeds- Q2 FY18 Results Update
2. Aarti Industries-Q2FY19 Results Update
3. Wonderla- Q2FY19 Results Update

1. Avanti Feeds- Q2 FY18 Results Update

Avanti Feeds (AVNT IN)  Q2 FY19 results were significantly below our expectations. While revenues declined by 14% YoY due to low shrimp cultivation as well as low demand particularly in US , the net profit declined by 68% YoY due to increase in raw material prices in the same period. We analyze the results.

2. Aarti Industries-Q2FY19 Results Update

Aarti Industries (ARTO IN) Q2 FY19 results were beyond our expectations, as the revenues grew by 46% YoY and net profit increased by 57% YoY against our expectation of 15% and 20% YoY growth in sales and PAT. This robust result was due to improving capacity utilization, rupee depreciation and expanding contribution of higher value products.

Based on the recent developments we have revised our estimates wherein we expect sales and PAT CAGR of 18% and 22% from FY18-20e.

We analyze the results.

3. Wonderla- Q2FY19 Results Update

Wonderla Holidays (WONH IN) Q2 FY19 results were below our expectations. While revenues declined by 16% YoY, EBITDA decreased by 18% YoY in Q2 FY19. The impact was primarily from its Kerala based amusement park that got affected by the devastating flood that the state has witnessed after a gap of near 100 years. We analyze the result.