*Stock in Action*
*HUL:* HUL reported better than expected Q4FY22 numbers. It delivered double digit domestic consumer growth but domestic volume growth is lower than estimated. Performance was broad based with all 3 divisions growing competitively. The company continued to grow significantly ahead of the market, gaining value and volume market shares. Revenue during the quarter grew by 10.7% YoY and 2.4% QoQ at Rs. 13767.0 crore. EBITDA Margin for Q4FY21 was at 24.5% declined sequentially due to high commodity inflation. Despite challenges of low volume growth, significant reduction in discretionary consumption and ongoing integration issue of GSK distribution with HUL system, mgmt. stated it has gained market share across categories /price segments / markets. Management highlighted demand in rural areas has significantly moderated; whereas urban demand continues to recover owing to improving mobility. Management expects near term revenue growth to be pre-dominantly price led and volume growth is expected to remain muted owing to rural slowdown, customers downtrading to economy brands in wake of hyperinflation and sustained inflationary trends in key RM, which will put further pressure on units sold as HUL takes calibrated price hikes. *Positive on HUL as it is believed that the current concern are likely to abate over a period of time.*
*KPIT Technologies:* KPIT Tech reported a better set of numbers for Q4FY21 on all front. The demand environment in the Mobility Industry continues to be robust. Company has achieved all around growth in revenue, EBITDA and PAT. Revenue grew by 21% YoY and 5.2% QoQ on constant currency basis. Net profit grew by 50% Yoy and 12.7% QoQ. Company has closed the quarter with TCV of EURO 70+ million. There has been 10% shift to offshoring, resulted in higher volume growth of 28%. Q4FY22 was another good quarter in terms of deal closures. In last 7 quarters company's EBITDA margin improved from 13.4% to 18.7%. During the quarter, EBITDA margin improved from 10 bps despite supply side constraints and fresher additions. Management has provided a decent growth outlook for FY23. As per the management, Mobility Industry is investing heavily in CASE and architectural changes to make Software Defined Vehicle a reality, giving the company a healthy growth visibility for the next 4-5 years. Company expects CC revenue growth in the range of 18% to 21% with EBITDA margin to be in the range of 18% to 19%. Company expects volume growth in the range of 25%. *Positive on KPIT Technologies given the healthy set of Q4FY22 growth and management's optimistic demand outlook.*
*Indian Hotels Company:* Despite Omicron woes in the beginning of the quarter, the company reported healthy 57%/60% occupancy and Rs14,554/Rs7,226 ADR in leisure/non-leisure segment in domestic market. It has delivered industry leading recovery in rates and occupancies the average rates. As per management demand is driven by domestic customers. Company has witnessed strong demand from corporates, social events. 60-70% demand has come in last 6-8 weeks. March, April and May are trending higher than 2019. In Mumbai demand is aided by IPL. Management expects high occupancy to continue in Mumbai in April & May. Cost reduction was continued by the company the total expenses were lower by 24%, total fixed cost was lower by 18% and corporate overheads was lower by 28%. Post right issue and QIP its debt has reduced substantially. Indian Hotels Company will remain focused on inventory addition through management contracts, growth in new businesses and cost optimization measures in near term. *Positive on Indian Hotels Company given its dominant positioning in leisure space, robust inventory addition through management contract, deleveraging of balance sheet post fund raising and sustainable margin expansion owing to cost optimization.