Stocks in Focus on June 2: Auto Stocks, Tata Power to Kotak Mahindra Bank; here are expected newsmakers of the day
Stocks in Focus on June 2: Kotak Mahindra Bank, Tata Power, Reliance Industries or RIL, Atul Auto, etc. are expected to remain newsmakers throughout the intraday trade session.
Stocks in Focus on June 2: Rising for the fourth straight session on Monday, June 1, 2020, the domestic shares ended with robust gains. Easing of lockdown, better-than-expected GDP numbers and positive global cues boosted market sentiment. The barometer S&P BSE Sensex jumped 879.42 points or 2.71% at 33,303.52. The Nifty 50 index gained 245.85 points or 2.57% at 9,826.15. But certain stocks came in news after the market was closed. These stocks can impact the indices when it reopens on Tuesday, June 1, 2020. List of such five stocks:
V-guard/ Orient Electric/ Welspun Industries/ Vindhya Telelinks/ Universal Cables: These are some companies that reported their financial results of March quarter FY20 after the market hours on Monday, June 1, 2020. Find details:
V-Guard Industries Limited: V-Guard Industries on Monday reported 50.7% year-on-year decline in March quarter consolidated net profit at Rs 29.9 crore due to the impact of lockdown. It clocked a profit of Rs 60.7 crore in the January-March period of the financial year 2018-19. Revenue from operations was down 27.4% to Rs 541.1 crore during the period under review as against Rs 745.8 crore in the year-ago period. EBITDA was 45.6 crore, down 43.3%, from Rs 80.4 crore. Margins stood at 8.4% against 109.8% of last year. Lockdown led to a revenue loss about Rs 250 crore in FY 20, with an attendant impact on the bottom-line of about Rs 70 crore. Sales during April were near zero. With partial opening of business in May, the revenues for the month were about 70% of the corresponding month of the previous year.
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Orient Electric: Orient Electric on Monday posted the financial results for the quarter ended on March 31, 2020, and reported a 7.3% year-on-year decline in net profit at Rs 35.8 crore as against Rs 38.6 crore posted during the previous quarter ended in March 2019. Revenue from operations declined 11.7% to Rs 563.1 crore from Rs 637.7 crore posted a year ago. EBITDA was down 7.8% to Rs 65.2 crore from Rs 70.7 crore, while the margin was 11.58% against 11.9%.
Welspun Industries: Welspun on Monday posted financial results for the period ended March 31, 2020, and reported a three times year-on-year rise in the consolidated profit of Rs 89.1 crore against Rs 29.6 crore posted a year ago in the same quarter. But, its revenue from operations declined 35.1% to Rs 470.7 crore against Rs 725.1 crore posted last year. EBITDA declined 27.4% to Rs 65.2 crore against 89.8 crore, while margin was 13.9% against 12.4%.
Vindhya Telelinks: Consolidated net profit of Vindhya Telelinks declined 57% to Rs 38.3 crore in the quarter ended March 2020 as against Rs 89 crore posted during the previous quarter ended March 2019. Revenue from operations declined 23.7% to Rs 459.1 crore in the quarter ended March 2020 as against Rs 601.6 crore during the previous quarter ended March 2019. The companies EBITDA declined 30% to Rs 62.7 crore against Rs 89.5 crore posted in the previous year. Margin reduced to 13.7% against 14.9% posted a year ago.
Universal Cables: The company on Monday posted the financial results for the period ended on March 31, 2020, and reported a year-on-year loss of Rs 0.5 crore against a profit of Rs 41.5 crore posted a year ago in the same quarter. Revenue from operations reduced 9.4% to Rs 371.8 crore from Rs 410.4 crore posted a year ago in the same quarter. EBITDA was Rs 40.1 crore, down 24.1%, from Rs 52.8 crore, while margin was 10.8% against 12.9%.
Auto Stocks in Focus: Auto companies on Monday reported the sales number of May 2020 and said demand is returning in the sector but the pace is tepid due to the nationwide lockdown on account of the COVID-19 pandemic. Although vehicle sales in May were just a part of what the sector reported in the year-ago period they were better than the near-zero numbers reported in April.
TVS Motor: Mumbai: TVS Motor Company Ltd has posted its total May sales numbers and reported 78.9% decline in sales at 58,906 units that include wholesales of two and three-wheelers and also the affordable mopeds. The company sold 3,07,106 units in the same month a year ago. The company said that its total two-wheeler sales stood at 56,218 units that included domestic sales of 41,067 units for the last month. It sold 2,688 three-wheelers last month. TVS Motor says resumed operations in India across all units in Hosur, Mysuru, Nalagarh plants from May 6. Seeing progressive opening of dealerships in India & overseas in the last 2 weeks of May & increasing further into June; witnessing a steady pick-up in customer retail since the last few days.
Hero MotoCorp: The country's largest two-wheeler maker Hero MotoCorp on Monday reported an 82.7% decline in monthly sales to 1,12,682 units in May 2020. It sold about 6,52,028 units in May 2019. The domestic sales declined 82.9% to 1,08,848 units against 6,37,319 units sold last year. In terms of exports, the two-wheeler major exported 3434 units in May 2020 against 14,709 units sold a year ago.
Eicher Motor: Eicher Motors Ltd has announced the sales figures of Royal Enfield motorcycles for May 2020. The company has sold 19,113 motorcycles during May 2020, as compared to 62,371 units in May 2019, a drop of 69% YoY. The export also saw a steep decline of 68% at 684 units compared to 2160 units in May 2019. VECV sales declined 85.7% to 686 units against 4,801 units posted a year ago.
Ashok Leyland: Ashok Leyland, a Hinduja flagship firm, on Monday reported an 89% decline in total commercial vehicle sales at 1,420 units in May 2020. The company had sold 13,172 in the same month last year. Domestic sales declined 90% at 1,277 units as against 12,778 units in the year-ago month.
Atul Auto: Atul Auto Limited has announced the sales figures for May 2020. The company has sold 410 units during May 2020, as against 3,464 units during May 2019, a drop of 88.2% YoY.
SML Isuzu: The automaker on Monday reported the sales figures of May 2020 and reported a 99% decline in monthly sales to 16 units in May 2020 against 1,689 units sold a year ago in the same month. It sold just 16 units in April and May against 3,068 units of both months.
Kotak Mahindra Bank: Uday Kotak will be selling 5.6 crore shares or 2.83% stake worth over Rs 6,800 crore of the lender on Tuesday through the block deal. The stake sale would help bring down his stake in the country’s fourth-largest private sector lender to the RBI-mandated 26.10% from 28.93% now. The price band for the share sale has been fixed at Rs 1,215 to Rs 1,240 a piece. Uday Kotak has to reduce his stake in the private lender to 26% till August 17, 2020.
Tata Power: The company on Monday said that it has completed the acquisition of 51% stake in TP Central Odisha Distribution (TPCODL) for Rs 178.5 crore. Government of Odisha will hold the remaining stake in the venture. Company will manage power distribution business of Central Electricity Supply Utility of Odisha (CESU) from June 1. Besides, the company aims at raising Rs 3,000 crore by selling some non-core operations and restructuring its renewable energy business. The funds will be raised to pare debt and consolidate its India operations. The company seeks to reduce its debt from Rs 44,000 crore to Rs 25,000 crore by the end of this fiscal.
Reliance Industries: The mega Rs 53,125 crore rights issue of Reliance Industries Ltd (RIL) was completely subscribed on Monday, two days ahead of the last day of the share sale. The rights offering were subscribed 1.1 times. The company is offering 1 share for every 15 held as of record date, which was May 14, 2020.
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