In today’s briefing:
- Nesco: BEC Business Is Back to Pre-COVID Level
- Kolte Patil: Temporary Blip in Q2FY23 Earnings; On Track for a Strong FY23
- HCG: All Set for a Stellar FY24
Nesco: BEC Business Is Back to Pre-COVID Level
- Bombay Exhibition Center (BEC) business has recovered sooner than expected and is now back to pre-COVID level with INR 50cr+ revenues in Q2FY23.
- Demand for exhibitions could grow structurally post-COVID, suggesting that the BEC business is now likely to be even stronger than pre-COVID.
- Office Leasing (IT Parks) business showed QoQ growth suggesting that the occupancy level showed marginal improvement.
Kolte Patil: Temporary Blip in Q2FY23 Earnings; On Track for a Strong FY23
- Q2FY23 results were subdued due to delay in launch of a few new projects.
- Lower proportion of sales from Mumbai led to decline in realization by 9% QoQ, however, this has quarterly variation and was also impacted by delay in new project launches.
- The current quarter sales seem to be a temporary blip as most of the new projects are on track to launch in Q3FY23.
HCG: All Set for a Stellar FY24
- HCG posted decent revenue growth in Q2FY23. Its new centers also saw improved profitability with scale.
- HCG has been rolling out price increase across its network which alone should help it to expand margins by 100-150bp in FY24.
- With new centers maturing, HCG is gearing up for a stellar FY24 and FY25. As per our estimates, HCG is on track to post FY25 PAT of INR 170cr+.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
