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Orient Electric Ltd.
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CMP: 189
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Relative Rating: Overweight (Under Review)
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Absolute Rating: LONG (Under Review)
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Industry: Consumer Durables
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Last Target Price: 274 (Mar’27) (Under Review)
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Standalone Revenues of Rs 9.5bn, +10% yoy, +5% qoq, in-line with EE of Rs. 9.5bn.
Standalone EBIDTA came at Rs 774mn, +16% yoy, +14% qoq, 18% above EE of Rs. 653mn.
- Gross Margins at 31%, -47 bps yoy, +115 bps qoq, above EE of 30.4%.
- EBIDTAM stood at 8.2%, +41 bps yoy, +69 bps qoq, above EE of 6.9%.
Recurring PAT came at Rs 418mn, +34% yoy, +21% qoq, 32% above EE of Rs. 317mn.
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Segmental Performance
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Segmental Sales – In mn
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4QFY24
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1QFY25
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2QFY25
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3QFY25
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4QFY25
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1QFY26
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2QFY26
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3QFY26
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4QFY26
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4QFY26E
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Actual vs. EE
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yoy
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ECD
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5,691
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5,449
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4,395
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5,743
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6,142
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5,450
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4,409
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6,467
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6,611
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6,894
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-4.1%
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7.6%
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L&S
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2,186
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2,100
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2,206
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2,425
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2,476
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2,241
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2,617
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2,597
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2,871
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2,596
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10.6%
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16.0%
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Total
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7,877
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7,549
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6,602
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8,168
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8,619
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7,691
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7,026
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9,065
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9,483
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27,283
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-65.2%
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10.0%
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Segmental EBIT – In mn
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4QFY24
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1QFY25
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2QFY25
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3QFY25
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4QFY25
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1QFY26
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2QFY26
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3QFY26
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4QFY26
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ECD
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465
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494
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389
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643
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678
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369
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363
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766
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754
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EBIT margin
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8.2%
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9.1%
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8.8%
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11.2%
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11.0%
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6.8%
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8.2%
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11.8%
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11.4%
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L&S
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281
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390
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300
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322
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308
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390
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342
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248
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404
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EBIT margin
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12.8%
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18.6%
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13.6%
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13.3%
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12.5%
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17.4%
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13.1%
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9.5%
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14.1%
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Total
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746
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884
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688
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965
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986
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759
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705
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1,013
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1,158
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Peer Comparison:
ECD Revenues:
Orient ECD: Rs 6.6bn (+8% yoy)
Polycab FMEG: Rs 6.6bn (+39% yoy)
RR Kabel FMEG: Rs 3bn (+14% yoy)
Havells ECD: Rs 9.8bn (-2% yoy)
ECD Margins:
Orient ECD: 11.4% (+37bps yoy)
Polycab FMEG: 4.4% (+401bps yoy)
RR Kabel FMEG: EBIT loss stood at Rs 93mn vs loss of Rs 91mn in the base quarter.
Havells ECD: 10.3% (-225bps yoy)
Lighting Revenue:
Orient Lighting: Rs 2.9bn (+16% yoy)
Havells Lighting: Rs 4.4bn (+1% yoy)
Lighting EBITM:
Orient Lighting: 14.1% (+161bps yoy)
Havells Lighting: 21.6% (+447bps yoy)
Equirus View:
OEL’s 4Q topline of Rs 9.5bn (+10% yoy) came in-line with EE, with ECD growing 8% yoy and L&S delivering a strong 16% yoy growth. While GM contracted 47bps yoy to 31%, EBITDAM still expanded 41bps yoy to 8.2% (vs EE of 6.9%) aided by timely pricing actions to mitigate cost pressures, supported by focused cost optimisation. ECD EBIT margin expanded 37bps yoy to 11.4%, and L&S EBIT margin expanded a sharp 161bps yoy to 14.1%, reflecting recovery after continuous decline in past 5 quarters. Overall, all-round quarter with in-line growth and margin beat across both segments.
Valuation: At CMP of Rs 189, stock trades at FY27E/FY28E P/E of 30/23.
Con-call: We will come up with a detailed note post earnings call scheduled today at 4:00 PM.
Last Published Financials:
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Consolidated (Rs mn)
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FY27E
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FY28E
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Sales
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37,646
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41,764
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EBITDA
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2,754
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3,275
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EBITDAM
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7.3%
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7.8%
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PAT
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1,365
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1,771
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EPS
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6.4
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8.3
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Balance Sheet Details:
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Rs Mn
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FY26
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FY25
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Cash & cash equivalents
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922
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664
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Other bank balance
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8
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25
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Inventories
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4,256
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4,297
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Receivables
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6,194
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5,128
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Payables
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6,007
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6,001
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CFO
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1,100
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859
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Quarterly Estimates Table (Standalone)
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Rs Mn
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4QFY26
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4QFY26E
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3QFY26
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4QFY25
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% Change
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EE
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QoQ
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YoY
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Net Sales
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9,483
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9,490
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9,065
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8,619
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0%
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5%
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10%
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Cost of raw materials consumed
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2,799
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2,666
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1,924
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2,429
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5%
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45%
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15%
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Purchase of traded goods
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3,633
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4,095
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4,111
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3,616
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-11%
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-12%
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0%
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(Inc)/ Dec in inv. of finished goods, WIP and traded goods
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114
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-161
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326
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-137
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nm
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nm
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nm
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Employee Benefits Expenses
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789
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862
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770
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759
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-8%
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2%
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4%
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Other expenses
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1,374
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1,374
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1,257
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1,283
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0%
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9%
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7%
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Total Expenditures
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8,709
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8,837
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8,388
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7,950
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-1%
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4%
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10%
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EBITDA
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774
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653
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677
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668
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18%
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14%
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16%
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Depreciation
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196
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195
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189
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218
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0%
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4%
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-10%
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EBIT
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578
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458
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488
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451
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26%
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18%
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28%
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Interest Expenses
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53
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52
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68
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64
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3%
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-21%
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-17%
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Other Income
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35
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18
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16
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35
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94%
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122%
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-1%
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PBT
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559
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424
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436
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421
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32%
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28%
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33%
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Tax
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141
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107
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90
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109
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32%
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57%
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30%
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Recurring PAT
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418
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317
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346
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313
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32%
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21%
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34%
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Extraordinaries
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16
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0
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85
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-3
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Reported PAT
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402
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317
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261
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316
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27%
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54%
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27%
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EPS (Rs)
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2.0
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1.5
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1.6
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1.5
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32%
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21%
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34%
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EBITDA Margin
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8.2%
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6.9%
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7.5%
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7.8%
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128 bps
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69 bps
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41 bps
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EBIT Margin
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6.1%
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4.8%
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5.4%
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5.2%
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127 bps
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71 bps
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86 bps
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PBT Margin
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5.9%
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4.5%
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4.8%
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4.9%
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143 bps
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109 bps
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101 bps
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PAT Margin
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4.2%
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3.3%
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2.9%
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3.7%
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90 bps
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136 bps
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58 bps
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Tax Rate
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25.2%
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25.2%
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25.2%
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25.8%
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4 bps
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4 bps
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-58 bps
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