Quarterly Business Bytes – Q2FY23
Investing is all about reading, analyzing and connecting the dots through multiple layers of thinking. From 70+ conference calls we read this quarter, we bring 10 most interesting insights for you
Attrition in Indian IT sector has peaked out and abnormal salary increase is history
Source: HCL Technologies
Source: TCS
Though IT says all is well all is well in Europe, other industries have a different point of view
Source: TCS
Source: L&T Technology Services
Source: BKT Tyres
Source: Sudarshan Chemicals
USA mortgage market is in a poor state due to aggressive interest stand by fed to counter inflation
Source: Firstsource
API, Pigment, Chemical and surfactant driven companies by raw material or revenue going through various issues impacting business growth
Source: Galaxy Surfactants
Source: Supreme Industries
Inventory destocking and margin pressure across API and pigment companies leading to margin compression. Situation may bottom out in 1-3 quarters as per various managements
Source: Jubilant Ingrevia
Source: Aarti Drugs
As they say, “good news and good prices do not come together”. The best time to study a sector is when it is going through a temporary headwinds though structural tailwinds impact providing scope for margin of safety. At SOIC and Scientific Investing, we think it could be a good time to study API and Chemical sector. Something interesting coming up with dear friend Ishmohit (we had teamed up together earlier to simplify understanding of insurance sector)
However, not everything is gloom. Green shoots of high growth opportunity in electronics manufacturing industry
Source: Syrma
How EV adoption is expected to shapeup
Source: Gabriel
What it takes to generate higher margins in EV industry
Source: Sterling Tools
Freight costs may have topped out
Source: Sudarshan Chemicals
When you get insights about automotive sector trends in a banking sector conference call through lending linkages – lesser channel inventory in higher end car models
Source: Kotak Mahindra Bank
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We hope that these pointed 10 insights helped you to gain useful business knowledge.
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See you soon with another informative bite