Results: Bajaj Finance’s March quarter earnings were strong as profit grew by 61 percent year-on-year to Rs 720.9 crore and net interest income rose 40 percent to Rs 2,365 crore.
Earnings: Farm equipment maker Escorts has reported stellar earnings growth for the March quarter as it has been firing on all cylinders.
Net profit during the quarter grew by 89 percent year-on-year to Rs 112.5 crore from Rs 59.5 crore and revenue increased 40.5 percent to Rs 1,436.1 crore from Rs 1,022.3 crore.
Operating profit more than doubled to Rs 173.7 crore from Rs 74.3 crore and margin improved to 12.1 percent from 7.3 percent YoY.
Market Update: The market continued to trade lower for the second consecutive session, with the Sensex falling more than 100 points after the crude oil prices inches up towards $80 a barrel as supplies tighten while demand remains strong.
Hindalco Industries, Tata Steel, Bharti Airtel, BPCL and HDFC are top losers while Coal India, Sun Pharma, Tata Motors, Bharti Infratel and Wipro are top gainers among Nifty50 stocks.
The rupee trimmed its gains, trading 5 paise higher at 67.74 a dollar against 67.57 a dollar in morning.
The 30-share BSE Sensex was down 137.95 points at 35,249.93 and the 50-share NSE Nifty fell 38.80 points to 10,702.30.
Buzzing: Manali Petrochemicals share price is locked at 20 percent upper circuit at Rs 41.55 after reporting healthy earnings growth for March quarter.
The petrochemical company has reported a massive 55 percent jump quarter-on-quarter in profit at Rs 26.6 crore, backed by strong operational growth.
Profit in the previous quarter stood at Rs 17.2 crore.
Revenue from operations grew by 17 percent sequentially to Rs 190 crore for the quarter ended March 2018.
Operational numbers were very strong as operating profit (EBITDA – earnings before interest, tax, depreciation and amortisation) shot up 40 percent to Rs 43.5 crore and margin expanded 390 basis points to 22.9 percent compared to previous quarter.
Here are the top headlines from Moneycontrol News’ Sakshi Batra
Bhushan Steel in focus: The National Company Law Appellate Tribunal (NCLAT) will next week hear Bhushan Steel promotor Neeraj Singal’s plea against acquisition of the company by Tata Steel.
Singal has sought a stay on the National Company Law Tribunal (NCLT) order approving Tata Steel’s bid for the debt-ridden Bhushan Steel under corporate insolvency resolution process.
The petition was mentioned before an NCLAT bench headed by Chairman Justice S J Mukhopadhaya, which directed it to be listed on Monday for hearing.
Singal has also requested the appellate tribunal to maintain status quo over the company’s shareholding. Singal holds around 22 per cent stake in Bhushan Steel, reports PTI.
Market Capitalisation: PNB Housing Finance is now more valuable than its parent company PNB which has seen its market capitalisation more than halve since being hit by a massive banking fraud allegedly carried out by diamantaire Nirav Modi and his uncle Mehul Choksi.
The market capitalisation of PNB Housing Finance stood at Rs 21,199.07 crore. The m-cap of Punjab National Bank was at Rs 20,842.33 crore.
PNB had m-cap of Rs 44,624.67 crore before the lender was hit by a nearly USD 2 billion fraud in which the billionaire jeweller Modi allegedly acquired fraudulent letters of undertaking (LoU) from one of its branches for raising overseas credit.
For the quarter ended March 31, PNB held 5,49,14,840 shares amounting to 60.33 per cent stake in PNB Housing Finance.
Crude Outlook: For the week ahead, Choice Broking expects Brent Crude Oil & WTI Crude oil futures to remain in the positive zone as the global demand for crude is estimated to be higher.
As per OPEC Monthly Oil Market Report, world oil demand growth for 2018 is forecasted to increase by 1.65 mb/d (million barrels per day) to average 98.85 mb/d. Growth was revised higher by 25 tb/d (Thousand barrels per day) compared with last month’s assessment. Oil demand growth in the non-OECD region was also revised upward, primarily on the back of better-than-expected data from other Asia, including India, and Latin America. China is projected to lead oil demand growth in 2018, followed by other Asian countries and OECD Americas.
Results today: Voltas, Bajaj Finance, Bajaj Finserv, Balkrishna Industries, Central Bank of India, Escorts, Coffee Day, 21st Century Management, Advani Hotels, Alembic, Bliss GVS, Dolat Investment, Gujarat Pipavav, ICRA, Indian Toners, JK Tyre & Ind, JMG Corporation, JTL Infra, KEI Industries, Kirloskar Industries, Lux Industries, Man Infra, Max Ventures, McDowell Holdings, Mirc Electronic, Newgen Software, Orient Refractories, Paushak Ltd, Quess Corp, Shree Ajit Pulp, Siti Networks, Skipper, SPIC, Spice Mobility, SRF, Star Cement, Taj GVK Hotels, Take Solutions, Trigyn Tech, VLS Finance and WABCO India will announce their March quarter earnings today.
Here are the top headlines from Moneycontrol News’ Anchal Pathak
Union Finance Minister Piyush Goyal said the banking sector is plagued by reckless lending under the previous government.
The RBI is diligently supervising to ensure orderly growth of banking industry and is trying to get banking system on its feet.
Market Update: The market is reeling under pressure with the Sensex falling 100 points as investors after digesting Karnataka election outcome started monitoring earnings, and movement in rupee and crude oil prices.
Brent crude oil prices inch up towards USD 80 a barrel as supplies tighten while demand remains strong.
Depreciating rupee to pse challenges to economical solar tariffs: India Ratings and Research believes depreciating rupee, if unhedged, will impact investor returns in bid solar power projects in the event of a significant exchange rate variation between the time of bidding (bid assumptions) and finalisation of module supply agreement. The exchange rate deteriorated 5 percent YoY in May 2018, when the bids were hovering around INR2.5 per unit.
However, post module supply agreements, the developer may opt to hedge the exchange rate risk evaluating the costs involved.
As per the agency’s calculations, an Re 1 increase in USD/INR exchange rate leads to a 2 paisa/unit increase in tariff. For instance, if the rupee depreciates to Rs 67 from Rs 65 between the time of tariff bidding and finalisation of terms of payment for module supply (which can easily extend to six to eight months), the solar power developer (SPD) will suffer an overall 4 paisa/unit reduction in margin, which is significant considering the modest margins for SPDs, the rating agency said.
Buzzing: Banks are under pressure after the Karnataka CM B S Yeddyurappa announced farm waiver for one lakh farmers.
Banks, which are already bearing the burnt of asset quality concerns, are getting more pressure by such farm loan waiver.
Product Patents: Suven Life Sciences announced that the grant of two product patents from Australia and one product patent from Singapore corresponding to the New Chemical Entities (NCEs) for the treatment of disorders associated with Neurodegenerative diseases.
These patents are valid through 2034.
The granted claims of the patents include the class of selective H3 Inverse agonists and 5HT6 compounds respectively and are being developed as therapeutic agents for major depressive disorders and for the treatment of cognitive impairment associated with neurodegenerative disorders like Alzheimer’s disease, attention deficient hyperactivity disorder (ADHD), Huntington’s disease, Narcolepsy, Parkinson and Schizophrenia respectively, the company said.
Here are the top headlines from Moneycontrol News’ Anchal Pathak
Market Update: Benchmark indices remained under pressure amid consolidation, as investors monitor corporate earnings, and rupee and crude movement.
The 30-share BSE Sensex was down 91.02 points at 35,296.86 and the 50-share NSE Nifty fell 28.10 points to 10,713.
About 1,186 shares advanced against 945 declining shares on the BSE.
Crude Update: Oil prices firmed, with Brent crude creeping ever closer to USD 80 per barrel, a level it has not seen since November 2014, as supplies tighten while demand remains strong.
Brent crude futures were at USD 79.34 per barrel, up 0.08 percent from their last close.
US West Texas Intermediate (WTI) crude futures were at USD 71.68 a barrel, up 0.27 percent, from their last settlement, reports CNBC.
Order Win: The power transmission & distribution business of L&T Construction has bagged EPC orders worth Rs 2,440 crore which include a major order is received under the Saubhagya scheme.
The scope of these packages involves electrification works in urban and rural areas, augmentation of 33/11kV substations and replacement of conductors with aerial bunched cables, L&T said.
An order secured from the Department of Disaster Management for the construction of underground power cable network on turnkey basis in the eastern region of India, it added.
Market Update: The market erased opening gains to trade mildly lower, dragged by HDFC, Reliance Industries, Infosys and metals stocks. The Nifty50 is trading below 10,750 levels.
Hindalco, Cipla, Tata Steel, BPCL are top losers among Nifty50, down up to 4 percent while Titan Company and Bharti Infratel gained more than a percent.
Buzzing: Tata Steel saw profit booking after opening higher as it reported a consolidated net profit of Rs 14,688 crore for the March quarter, as against a loss of Rs 1,168 crore in the same quarter last year, benefiting from a one-time gain of Rs 11,376.14 crore from the restructuring of its UK business’ pension scheme.
The Jamshedpur-based company’s consolidated revenue from operations for the reporting quarter grew to Rs 36,132 crore, up from the Rs 35,304.89 crore reported last year.
The company’s total expenses rose to Rs 32,626.42 crore, around 5 percent higher than in the corresponding quarter last year. Cost of raw material, which accounts for the lion’s share of overall expenses, rose only 4 percent on year to Rs 10,369.77 crore.
Market Update: The market consolidates, trading mildly higher as all sectoral indices are in the green barring metals.
The Nifty50 is hovering around 10,750 levels while the Nifty Midcap index is up fourth of a percent.
The market breadth remains strong as about two shares gained for every share falling on the BSE.
Tata Steel and Hindalco are top losers among Nifty50, down 2 percent each while TCS, HDFC Bank and ICICI Bank continue to support the market.
USFDA Inspection: Shares of Divis Laboratories added 4 percent as USFDA completed inspection with no 483 observations.
The company’s unit-I at Choutuppal, Telangana had an inspection by USFDA from May 14-16.
This was a general cGMP inspection by the FDA and it has been concluded with no 483 observations.
The company’s board meeting is scheduled to be held on May 26, 2018, to consider and approve standalone and consolidated audited financial results for the year ended March 31, 2018 and to recommend dividend, if any, on equity shares for the financial year 2017-18.
Buzzing: Shares of Granules India rose 2.3 percent as the company received USFDA approval for Methylergonovine tablets.
The USFDA has approved company’s abbreviated new drug applications (ANDA) for Methylergonovine 0.2 mg tablets.
The ANDA was filed by Granules Pharmaceuticals Inc., a wholly owned subsidiary of Granules India. The approved ANDA is the bioequivalent to the reference listed drug product, Methergine 0.2 MG.
Methylergonovine is a semi-synthetic ergot alkaloid used for the prevention and control of postpartum haemorrhage.
TVS Motor Company to pump in Rs 700 crore on new products, BSVI upgrade
The two-wheeler maker will use the funds on new products, enhancing production capacity, on new technology and for on-going works at Bharat Stage VI.
Rupee Update: The Indian rupee extended opening gains, trading 18 paise higher at 67.61 against the US dollar.
The 30-share BSE Sensex is off its opening high, rising 51.85 points to 35,439.73 while the 50-share NSE Nifty gained 18.70 points at 10,759.80.
The market breadth was positive as about two shares gained for every share falling on the BSE.
Market Opening: Benchmark indices rebounded following confirmation that BJP is forming government in Karnataka.
The 30-share BSE Sensex was up 112.77 points at 35,500.65 and the 50-share NSE Nifty gained 29.90 points at 10,771.
Tata Steel, Vedanta, TCS, Wipro, Tata Motors, ITC and SBI were early gainers while Cipla, HPCL, BPCL and Lupin were losers.
Nifty Midcap was up 0.3 percent.
Divis Labs, Transport Corporation, Future Consumer, Future Enterprises, Colgate, Parag Milk Foods, JK Lakshmi Cement, BEML, Jyothy Labs, HEG and Delta Corp gained up to 5 percent.
TVS Motor, Muthoot Finance, Brigade Enterprises, Punjab & Sind Bank, Muthoot Finance, Century Plyboards and Career Point fell up to 10 percent.
Karnataka Election Results 2018 LIVE: Yeddyurappa sworn-in as Karnataka chief minister
BS Yeddyurappa will be sworn-in as the chief minister of Karnataka at 9.00 am today after the Supreme Court refused to stay Governor’s decision. However, the top court has kept it subject to the case outcome.
Capex: Sajjan Jindal-led JSW Steel today said the company has decided to invest an additional Rs 17,600 crore for increasing its steel capacity to 24.7 million tonne per annum (mtpa) by 2020.
“Looking at the domestic demand growth, we see a shortage of steel if we don’t expand in the next two years,” JSW Steel joint managing director and group chief financial officer Seshagiri Rao told reporters here while announcing almost two-fold rise in consolidated net profit to Rs 2,879 crore in the March quarter, against Rs 1,008 crore in the year-ago quarter.
“We have decided to expand our capacity from 18 mt (million tonne) to 24.7 mt, which includes addition of one mt at Vijaynagar and 0.67 mt at Dolvi unit, and also expand our downstream projects by 2020,” he said.
The overall estimated capex plan of Rs 26,815 crore announced last year is expected to be enhanced by Rs 17,600 crore to implement new projects, Rao said, adding, “Overall, the company is now implementing a cumulative capex pipeline of Rs 44,415 crore by March 2020.”