Our portfolio companies’ reported fundamentals in 2QFY24 continue to demonstrate strength and consistency – portfolio’s revenue growth was 22% YoY and EPS growth was 28% YoY in the quarter ending 30th September 2023. Several of our portfolio companies’ reported revenue growth rates, significantly healthier than other players in the same industry. For instance, Nestle’s 10% YoY revenue growth in 2QFY24 was one of the best across all large FMCG players, Dr. Lal Pathlab’s non-Covid revenue growth of 15% was higher than that of SRL, Metropolis, Thyrocare etc. Aberrations in EBITDA margins created over the last 18 months by volatility in input costs and global supply chains normalized considerably in 2QFY24 for several portfolio companies.

Furthermore, dislocations between share prices and fundamentals continue to provide opportunities to rebalance position sizes for potential benefits in future. For CCP stocks that are proactively strengthening their moats and defending their territory vs continuous waves of competition, we consider any temporary dislocation in market price vs. intrinsic value as an opportunity to increase our exposure in such businesses.

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