Stocks in Focus on January 25: Reliance, HDFC Life, UltraTech Cement, Grasim to Tata Power; here are the 5 Newsmakers of the Day
Domestic shares slumped on Friday, January 22, 2021, led by steep selling in banks stocks. The Nifty closed below the crucial 14,400 mark. The S&P BSE Sensex, tumbled 746.22 points or 1.50% at 48,878.54. The Nifty 50 index dropped 218.45 points or 1.50% at 14,371.90. But certain stocks came in news after the market was closed. These stocks can impact the indices when it reopens on Monday
Domestic shares slumped on Friday, January 22, 2021, led by steep selling in banks stocks. The Nifty closed below the crucial 14,400 mark. The S&P BSE Sensex, tumbled 746.22 points or 1.50% at 48,878.54. The Nifty 50 index dropped 218.45 points or 1.50% at 14,371.90. But certain stocks came in news after the market was closed. These stocks can impact the indices when it reopens on Monday, January 25, 2021. List of such five stocks:
Results: Reliance + HDFC Life + UltraTech Cement + JSW Steel
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Reliance: Reliance Industries on Friday announced its earnings and reported a 40.5% QoQ rise in profit at Rs 14,894 crore for the quarter ended December 31, 2020. The oil-to-telecom conglomerate posted a net profit of Rs 10,602 crore in the quarter ended September 30, 2020. Revenues from operations grew 6% QoQ to Rs 1,17,860 crore against Rs 1,11,236 crore posted in previous quarter. EBITDA stood at Rs 21,566 crore in December quarter, up 13.8% from Rs 18,945 crore posted in the September quarter. The EBITDA margin grew to 18.3% in Q3FY21 against 17% posted in Q2FY21. Segmental Earnings
Oil to chemicals: The segment's revenues grew 10% QoQ to Rs 83,838 crore against Rs 76,184 crore. EBIT boosted by 10.4% QoQ to Rs 9756 crore against Rs 8,841 crore. EBIT Margins remains flat at 11.6%.
Oil & Gas: Revenue grew 21.4% QoQ to Rs 431 crore against Rs 355 crore. EBIT Profit of Rs 4 crore against a loss of Rs 194 crore.
Retail: Revenues down 5.9% QoQ to Rs 36,887 against Rs 39,199 crore. EBIT Up 52.9% to Rs 3,102 against Rs 2,029 crore. EBIT Margins Up to 8.4% against 5.2%.
Digital Service: Revenues Up 4.4% QoQ to Rs 23,678 cr against Rs 22,679 crore posted in September quarter. EBIT Up 7.2% to Rs 8,942 crore against Rs 8,345 crore. EBIT Margins Up to 37.8% against 36.8%.
Financial Services: Revenues Up 4.8% to Rs 641 against Rs 612 crore. EBIT down 42.8% to Rs 303 against Rs 530 crore. EBIT margins down to 47.3% against 86.6%.
Others: Revenues up 29.5% to Rs 10,967 crore against Rs 8,472 crore. EBIT Up 39% to Rs 1,494 against Rs 1,075 crore. EBIT Margins Up to 13.6% against 12.7% .
Jio: Revenues up 5.3% QoQ to Rs 19,475 against Rs 18,496 crore. EBITDA Up 6.4% to Rs 8,483 against Rs 7971 crore. EBITDA Margins Up to 43.6% against 43.1%. Profit Up 15.5% to Rs 3489 crore against Rs 3,020 crore. ARPU up to Rs 151 against Rs 145.
Management Says: 96% of retail stores are now open. Stores in smaller towns are recovering faster. Overall footfalls remained at similar levels to last quarter but still lower than pre-COVID levels. The Grocery business and Electronics stores sustained double-digit growth while the Fashion and Lifestyle business delivered a strong rebound, surpassing pre-COVID levels. In Fashion & Lifestyle, Digital commerce revenues grew 3X over last year In Oil & Gas Transportation fuel markets continued to remain challenging with excess supply and second COVID-19 wave hurting the demand from European and US markets. Domestic demand in India continued to improve with oil product demand growth at 19% Q-o-Q. Oil demand for December was at 99% of a pre-COVID level. Demand growth for polymers, polyester and elastomers was robust on a Q-o-Q basis led by FMCG, Health & Hygiene, Pipes, Auto, Paint and Apparels Refining throughput was 16.7 MMT an increase of 9.2% over 2Q FY21.
HDFC Life: HDFC Life Insurance Company Limited on Friday reported earnings of the quarter ended December 31, 2020, and reported a 5% YoY rise in consolidated profit at Rs 263 crore against Rs 251 crore posted in the corresponding quarter of the last financial year. Net premium income grew 21% to Rs 9,489 crore in the reported quarter against Rs 7,854 crore posted last year. Gross written premium up 16%.
Solvency ratio is healthy at 202%. New business margins at 25.6% (increasing). Increased market share stands at 16.4%. 17% growth in protection & 42% in annuity business.
UltraTech Cement: The Aditya Birla group's UltraTech Cement on Saturday, reported 141% YoY jump in profit at Rs 1550 crore for the third quarter of the financial year. The cement manufacturer has posted a net profit of Rs 643 crore in the corresponding quarter last year. Revenues from operations grew 19% to Rs 11,831 crore in the reported quarter against Rs 1,786 crore. The company's EBITDA stood at Rs 2945 crore, up 65%, during the October-December quarter under review as compared to Rs 1,786 crore in the corresponding period of the last fiscal year. The margin grew to 24.9% in Q3Fy21 against 17.9% posted in Q3FY20. Capacity utilization increased to approx. 80% (up 11% YoY). Production cost decreased by 1%. Rural Market penetration increased by approx. 3.5% and Increased sales network (approx. 4%).
JSW Steel: The company has reported a net profit of Rs 2,681 crore in the quarter ended December 31, 2020, against Rs 18,055 crore posted in the corresponding quarter last year. Revenue from operations grew by 21.1% at Rs 21,859 crore in the reported quarter against Rs 18,055 crore posted last year. EBITDA stood at Rs 5,946 crore against Rs 2451 crore posted last year. EBITDA Margins grew to 27.2% in Q3FY21 against 13.5% posted in Q3FY20.
Results: Yes Bank + Oberoi Realty + Polycab
Yes Bank: The private lender on Friday reported a profit of Rs 151 crore for the quarter ended December 31, 2020, against a net loss of Rs 18,560 core posted in the corresponding quarter last year. The bank's net interest income (NII), the difference between interest earned and interest, expended 140.4% year-on-year to Rs 2,560 crore in the quarter under review. It was Rs 1,065 crore last year. NIM stood at 3.40% in Q3FY21 against 1.40% posted in Q3FY20.
Oberoi Realty Limited: The company has reported a 93.5% YoY rise in profit at Rs 286.7 crore for the quarter ended December 31, 2020, against Rs 148.2 crore posted last year in the same period. Revenue from operations grew 57.1% to Rs 828.4 crore against Rs 527.4 crore reported last year. EBITDA stood at Rs 3,82.9 crore, up 66.5%, from Rs 230 crore. The margin grew to 46.2% in Q3FY21 against 43.6% posted in Q3FY20. Real Estate business grew 67.1% YoY.
Polycab: The company has reported a 19% YoY rise in the consolidated profit at Rs 263.6 for the period ended December 31, 2020, as compared to Rs 221.4 crore posted in the corresponding quarter last year. Revenue from operations grew 11.6% to Rs 2,798.8 in the reported quarter against Rs 2,507.3 crore posted last year. EBITDA stood at Rs 375.8, up 10.8%, against Rs 339.1 crore posted last year. The margin remained almost flat at 13.4% in Q3FY21 against 13.5% posted in Q3FY20.
IPO updates: Indigo Paints + Home First Finance + Stove Kraft Ltd.
Indigo Paints IPO: The Rs 1,170 crore initial public offering (IPO) of Indigo Paints closed on Friday after being subscribed 117 times. The retail quota was subscribed 15.9 times, the NII and employee quota were subscribed 263 times and 2.5 times, respectively. The Qualified Institutional Buyers (QIB) portion saw 190 times subscription. Indigo Paints has fixed the price band of the share sale at Rs 1,488-1,490 a share.
Home First Finance IPO: The Rs 1,154 crore initial public offering (IPO) of Home First Finance was subscribed 2.2 times on the second day of subscription today, i.e. January 22, 2021. The retail quota was subscribed 3.4 times, while the QIB portion was subscribed 1.35 times and NII portion saw subscription of 61%. The IPO comprises a fresh issue of Rs 265 crore and an offer for sale of Rs 889 crore by promoters and existing shareholders. Investors can bid for a minimum one lot of 28 equity shares and in multiples up to 13 lots, in the price band of Rs 517-518 per share. The company has raised Rs 346 crore from 25 anchor investors at Rs 518 per share and anchor book was opened on January 20, 2021. . Today is the last day for the subscription of the offer.
Stove Kraft Ltd: The Rs 413 crore IPO of Stove Kraft Ltd, a manufacturer of kitchen appliances, will open for subscription on Monday, January 25, 2021, and close on January 28, 2021. The company has fixed a price band of Rs 384 to Rs 385 per equity share. Stove Kraft's initial share-sale offer comprises a fresh issue of equity shares aggregating up to Rs 95 crore and an offer for sale of up to 82.50 lakh equity shares. Bids can be made for a minimum of 38 equity shares and in multiples of 38 equity shares thereafter. The company has raised Rs 186 crore to form the anchor investors at Rs 385 per share.
Grasim: The company has announced foray into the paints business. The company's board has approved an investment of up to Rs 5,000 crore over the next three years, primarily towards CapEx.
Tata Power + NTPC: Wholly-owned subsidiary gets EPC order worth Rs 1,200 crore from NTPC to set up a 320 MW ground-mounted solar PV project. Commercial operation date for the project is set for May 2022.
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