Stocks in Focus April 28: Britannia, Axis Bank, TVS Motor, Info Edge to NBFCs; here are the 5 Newsmakers of the Day
Equity indices rallied for the second session on Tuesday, April 27, 2021. The S&P BSE Sensex jumped 557.63 points or 1.15 per cent and closed at 48,944.92.
Equity indices rallied for the second session on Tuesday, April 27, 2021. The S&P BSE Sensex jumped 557.63 points or 1.15 per cent and closed at 48,944.92. The Nifty 50 index added 168.05 points or 1.16 per cent to settle at 14,653.10. The Nifty Bank rose 460.20 points or 1.43 per cent to 32,735.35. But certain stocks came in the news after the market was closed. These stocks can impact the indices, when it reopens on Wednesday, April 28, 2021. List of such five stocks:
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Nifty Earnings Review
Britannia Industries: The food and beverage company has reported a 3.3% year-on-year decline in the consolidated profit at Rs 360 crore for the quarter ended March 31, 2021. It had reported a net profit of Rs 372.4 crore in the same quarter in the previous financial year. Consolidated revenue grew 9.2% to Rs 3,130.8 crore as compared to Rs 2,867.7 crore posted last year. EBITDA stood at Rs 505.4 crore, up 11.25% from Rs 454.4 crore posted in the same period last year. The margins improved to 16.1% in Q4FY21 as compared to 15.8% posted in Q4FY20. Input cost or the cost of raw material grew by 17.2% to Rs 1,532.4 crore in the reported quarter as compared to Rs 1,308 crore of last year.
Bajaj Finance: Non-banking finance company Bajaj Finance reported a 42% YoY rise in profits at Rs 1,347 crore for the quarter ended March 31, 2021. It had posted a net profit of Rs 948 crore in the same period last year. Net Interest Income (NII) declined 0.5% to Rs 4,659 crore from Rs 4,684 crore posted in Q4FY20. Gross non-performing assets (NPA) declined to 1.79% as of March 2021 from 2.86% in the previous quarter. The net NPA dropped to 0.75% from 1.22% in the same period. The company said that provisions of Rs 1,231 crore were made in Q4FY21 as compared to Rs 1,352 crore of Q4FY20. It made write-offs of around Rs 1,530 crore in the reported quarter as against Rs 3,734 crore. The board has declared a dividend of Rs 10 per share.
Axis Bank: The private lender has reported a profit of Rs 2,677 crore for the quarter ended March 31, 2021, as against a net loss of Rs 1,387 crore posted in a year-ago quarter. The bank’s net interest income in the quarter grew 11% year-on-year to Rs 7,555 crore as compared to Rs 6,808 crore posted last year. Net Interest margins remained unchanged at 3.5%. The Gross NPA dropped to 3.7% QoQ from 4.6% reported in the December quarter. The net NPA dropped to 1.05% in Q4FY21 as compared to 1.2% reported in Q3FY21. Provisions and contingencies in the quarter stood at Rs 3,295 crore down 28% from Rs 4,604 crore. Slippages in the quarter stood at Rs 5,285 crore and write-offs of Rs 5,553 crore were made. Retail loans grew 10% YoY while corporate loans grew 16% YoY.
F&O Earnings Review
TVS Motor: The third-largest motorcycle company TVS Motor has reported a 290.5% YoY rise in profits at Rs 289 crore for the quarter ended March 31, 2021, as compared to Rs 74 crore posted last year in the same quarter. Sequentially, the profit grew 8.6% from Rs 266 crore posted in the December quarter. Sales grew 52.8% YoY to Rs 5,322 crore as compared to Rs 3,481 crore posted in Q4FY21. Sequentially, the sales dropped 1.27% from Rs 5,391 crore. The EBITDA grew 120% YoY to Rs 537 crore as compared to Rs 244 crore posted last year. Sequentially, the EBITDA grew 5% from Rs 511 crore. The margins improved to 10% YoY from 7%, sequentially, the margin stood at 9% in the December quarter of the same financial year.
HDFC AMC: HDFC Asset Management Company on Tuesday reported a 26% YoY rise in profit at Rs 316 crore for the quarter ended March 31, 2021. It had reported a net profit of Rs 250 crore in the same quarter of the last financial year. Revenue from operations grew 5.6% to Rs 502.9 crore in Q4FY21 as compared to Rs 476 crore posted in Q4FY20. EBITDA stood at Rs 395.9 crore, up 6.7% from Rs 371 crore posted last year. The margin improved to 78.7% in Q4FY21 from 77.9% posted in Q4FY20. The board has recommended a dividend of Rs 34 per share subject to the approval of shareholders at the AGM.
Nippon Life India: Nippon Life India Asset Management (NAM India) on Tuesday reported a year-on-year profit of Rs 166.7 crore for the quarter ended March 31, 2021. It had posted a profit of Rs 3.7 crore in the same quarter last year. Revenue from operations grew 9.9% to Rs 301.9 crore from Rs 274.5 crore posted last year. The board has recommended a final dividend of Rs 5 per equity share.
UBL: The company has reported a 133.33% YoY rise in consolidated profit at Rs 98 crore for the quarter ended March 31, 2021. It had posted a net profit of Rs 42 crore in the same quarter last year. Sales grew 16.7% to Rs 3,618 crore as compared to Rs 3,099 crore posted in Q4FY20. EBITDA stood at Rs 262 crore, up 98.48% from Rs 132 crore while the margin improved to 7.2% in Q4FY21 from 4.25% posted in Q4FY20. The board has recommended a dividend of Re. 0.5/equity share.
Shalby: Offer for sale by the promoter Shah Family Trust has closed with a 3.19 times subscription. The retail portion was subscribed 1.03 times and the non-retail portion was subscribed 1.93 times. Promoters had plans to sell 58.1 lakh shares or 5.38% stakes at a floor price of Rs 111 per share.
Federal-Mogul Goetze India: Offer for sale by promoter IEH FMGI Holdings LLC has closed with a 5.76 times subscription. The retail portion was subscribed 11.51 times, while the non-retail portion was subscribed 3.95 times. The promoter had plans to sell 55.4 lakh equity shares or 9.95% stakes. It also had an oversubscription option of another 9.95% stakes, at a floor price of Rs 250 per share.
Hathway Cable: The offer for sale by three promoters closed with a 3.37 times subscription. The retail portion was subscribed 1.39 times while the non-retail portion was subscribed 1.51 times. The promoters, namely Jio Content Distribution Holdings, Jio Internet Distribution Holdings and Jio Cable and Broadband Holdings, had plans to sell 20.5 crore equity shares representing 11.6% stakes of the company, at a floor price of Rs 21.50 per share.
Info Edge: Its board on Tuesday approved sales of stakes worth Rs 750 crore in the investee company Zomato Limited via offer for sale (OFS) in the upcoming initial public offering (IPO) of the food delivery company. The company has 18.4% stakes in Zomato.
NBFCs: Non-banking financial companies in a letter to the Reserve Bank of India Governor has asked to allow a fresh round of loan restructuring for retail loans who are undergoing stress. In its letter to RBI, NBFCS has said that the second wave of CORONA has had a bad effect on the self-employed borrowers. It asked that small NBFCs should be granted a loan restructuring facility. It said that the restructuring facility should be extended till March 2022 and restructuring should be allowed to the accounts which remained standard till March 31, 2021. It also asked to provide liquidity support to the NBFCs. It also requested to increase the overall support outlay to All Indian Financial Institution (AIFIs) to at least Rs 75,000 crore from Rs 50,000 crore. The additional Rs 25,000 crore may be made available exclusively to medium and small NBFCs.
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