Stocks in Focus on July 16: Wipro, LTI, Cyient, Zomato IPO to Tatva Chintan IPO; here are the 5 Newsmakers of the Day
On Monday, the S&P BSE Sensex gained 254.80 points or 0.48 per cent to end at a new closing high of 53,158.85, while the Nifty 50 index gained 70.25 points or 0.44 per cent to close at 15,924.20.
Domestic stock markets gained more than 0.40 per cent on Thursday, July 15, 2021, to hit new record highs. The S&P BSE Sensex gained 254.80 points or 0.48 per cent to end at a new closing high of 53,158.85. The Nifty 50 index gained 70.25 points or 0.44 per cent to close at 15,924.20. But certain stocks came in the news after the market was closed. These stocks can impact the indices, when it reopens on Friday, July 16, 2021. List of such five stocks:
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Wipro + L&T Infotech (LTI)
Wipro: The IT services major Wipro has reported a 9.1% QoQ rise in the consolidated profit at Rs 3,243 crore for the quarter ended June 30, 2021 (Q1FY22). It had posted a profit of Rs 2,972 crore in the previous quarter ended March 31, 2021 (Q4FY21). Consolidated revenue from operations grew 12.4% QoQ to Rs 18,252 crore for the reported quarter compared to Rs 16,245 crore posted in the previous quarter. In dollar terms, the revenue rose 12.2% to $241.45 crore compared to $215.2 crore posted in the previous quarter. Consolidated EBIT stood at Rs 3,154 crore, down 5.2% compared to Rs 3,328 crore posted in the previous quarter ended March 31, 2021. The consolidated margin contracted to 17.3% in Q1FY22 compared to 20.5% posted in Q4FY21. Takeaways:>best-ever quarter
>CC revenue growth: 12% QoQ
>Organic Revenue Growth (ex-Capco) is 4.9% QoQ
>IT Services Margin: 18.8% vs 21%
>Other operating income of Rs 215 crore
>Q2FY22 revenue growth guidance of 5%-7%
>Attrition: 15.5% vs 12.1% (QoQ)
Commentary
>Highest organic sequential revenue growth in the last 38 quarters (CC terms)
>Ampion acquisition is expected to be closed by Q2FY22
>All set for good double-digit growth in FY 22
Region %rev QoQ CC growth
Americas 1 (27.6%) 5.40%
Americas 2 (30.5%) 16.40%
Europe (30.2%) 19%
APMEA (11.2%) 1.30%
Sectors %rev QoQ CC growth
BFSI (33.4%) 22.40%
Consumer (17.3%) 14.10%
Health (11.9%) 2.60%
L&T Infotech: The information technology solutions and services provider L&T Infotech has reported a 9% QoQ decline in the consolidated profit at Rs 497 crore for the quarter ended June 30, 2021. It had posted a profit of Rs 546 crore in the previous quarter ended March 31, 2021. Revenue from operations grew 5.9% QoQ to Rs 3,462 crore compared to Rs 3,269 crore posted in the previous quarter. In dollar terms, the revenue was 5.1% higher QoQ to $47.02 crore compared to $44.74 crore posted in the previous quarter. The EBIT fell 10.3% to Rs 568 crore in the period under consideration compared to Rs 633 crore posted in the previous quarter. The EBIT margin contracted to 16.4% in Q1FY22 compared to 19.4% posted in Q4FY21. Other income grew 18.4% QoQ to Rs 122 crore compared to Rs 103 crore posted in the previous quarter. Takeaways:
>CC revenue growth: 4.8% QoQ
>Best ever Q1 sequential growth of 5.1%
>Attrition: 15.2% vs 12.3% (QoQ)
>Utilisation 84.1% vs 82.2% QoQ
>special dividend: 10/share on 5 years of listing
Sectors %rev QoQ CC growth
BFSI 32.10% 8.80%
Manufacturing 15% -6.70%
Insurance 14.50% 5.00%
Hi-tech, Media and Ent 12.70% 13.20%
Service %rev QoQ CC growth
ADM and testing 34.00% 7.10%
Enterprise Solutions 30.7% -0.50%
Cloud Infra 14.90% 2.80%
Analytics, AI 11.70% 10.30%
Geography %rev QoQ CC growth
North America 67.00% 6.20%
Europe 16.6% 4.90%
RoW 9.60% 19.10%
India 6.70% -19.90%
Cyient + Tata Elxsi + Angel Broking + Tata Steel Long Products
Cyient: The engineering and technology solutions provider Cyient has reported an 11.5% QoQ rise in the consolidated profit at Rs 115 crore for the quarter ended June 30, 2021. It has posted a profit of Rs 103.1 crore posted in the previous quarter ended March 31, 2021. Consolidated revenue from operations dropped 3.1% QoQ to Rs 1,058 crore in the reported quarter compared to Rs 1,093 crore posted in the previous quarter. In dollar terms, the revenue fell 4.2% QoQ to $14.35 crore compared to $14.98 crore posted in the previous quarter. EBIT stood at Rs 137.6 crore, up 30.8% QoQ from Rs 105.2 crore posted in the previous quarter. The EBIT margin improved to 13% in Q1FY22 compared to 9.6% posted in Q4FY21.
Tata Elxsi: Design and technology services providers across industries Tata Elxsi has reported a 1.7% QoQ decline in the consolidated profit at Rs 113 crore for the quarter ended June 30, 2021. It had posted a profit of Rs 115 crore in the previous quarter ended March 31, 2021. Consolidated revenue from operations grew 9.7% to Rs 576 crore compared to Rs 525 crore posted in the previous quarter. The EBIT fell 5.1% to Rs 155.6 crore in the reported quarter against Rs 163.9 crore posted in the previous quarter. The EBIT margin contracted to 27% in Q1FY22 compared to 31.2% posted in Q4FY21. The growth was led by the Americas with 17.5% QoQ growth and Europe grew by 5.4% QoQ.
Angel Broking: The stockbroker firm Angel Broking has reported a 152.1% YoY rise in the consolidated profit at Rs 121 crore for the quarter ended June 30, 2021. It had posted a profit of Rs 48 crore in the corresponding quarter of the previous financial year ended June 30, 2020. Sequentially, the profit grew 18.9% QoQ from Rs 102 crore posted in the quarter ended March 31, 2021. Consolidated revenue from operations grew 94.5% YoY to Rs 463 crore in the reported quarter compared to Rs 238 crore posted last year. Sequentially, the revenue grew 13.2% QoQ from Rs 409 crore posted in the previous quarter. The EBITDA grew 147.8% to Rs 171 crore from Rs 69 crore posted last year. Sequentially, the EBITDA grew 15.5% from Rs 148 crore. The EBITDA margin improved YoY to 36.9% in Q1FY22 compared to 29% posted in Q1FY21. The margin stood at 36.2% in Q4FY21. Besides, the board also approved the change of name of the Company from 'Angel Broking Limited' to 'Angel One Limited' or 'Angel One Fintech Limited' or any other name as may be approved by the Central Registration Center ("CRC') of Ministry of Corporate Affairs ("MCA"). It also approved the first interim dividend of Rs 5.15 per share.
Tata Steel Long Products: The manufacturer of high alloy steel Tata Steel Long Products has reported a 2.4% QoQ decline in the consolidated profit at Rs 332 crore for the quarter ended June 30, 2021. It had posted a profit of Rs 340 crore in the previous quarter ended March 31, 2021. The company reported a net loss of Rs 131 crore in the corresponding quarter of the previous financial year. Consolidated revenue from operations grew 9.1% QoQ to Rs 1,688 crore in the reported quarter compared to Rs 1,547 crore posted in the previous quarter. Revenue grew 158.5% YoY to Rs 1,688 crore compared to Rs 653 crore posted last year. EBITDA grew 4.4% QoQ to Rs 520 crore from Rs 498 crore posted in the previous quarter. The EBITDA grew 6400% YoY from Rs 8 crore posted last year. The EBITDA margin declined to 30.8% in Q1FY22 compared to 32.2% posted in Q4FY21. The company’s EBITDA margin stood at 1.2% in Q1FY21.
IPOs of Zomato + Tatva Chintan
Zomato IPO: The initial public offering of the online food delivery platform Zomato was subscribed 4.80 times on the second day of subscription. The QIB quota was subscribed 7.07 times, while the NII and RII portions were subscribed 0.45 times and 4.73 times respectively. Today is the last day for a subscription. The price band of Zomato IPO is fixed at Rs 72-76 per share. The company aims to raise Rs 9,375 crore through the offer. The IPO comprises a fresh issue of equity shares worth Rs 9,000 crore and an offer for sale (OFS) worth Rs 375 crore by existing investor Info Edge (India). Post-IPO, the valuation of Zomato will be Rs 59,600 crore.
Tatva Chintan Pharma IPO: Speciality chemicals manufacturing company Tatva Chintan Pharma Chem’s Initial Public Offering will be open for subscription today, i.e. on Friday, July 16, 2021. The public issue will end on Tuesday, July 20, 2021. The company in consultation with merchant bankers has fixed a price band at Rs 1,073-Rs 1,083 per equity share. Investors can put in bids for a minimum of 13 equity shares, in a single lot, and in multiples of 13 equity shares thereafter. Thus, the minimum investment can be done by a retail investor is Rs 14,079 (at the upper band). The company is planning to raise Rs 500 crore through the offer. It comprises a fresh issue of Rs 225 crore and an offer for sale of up to Rs 275 crore by existing selling shareholders. Besides, the company has raised Rs 150 crore from anchor investors ahead of the IPO opening by offering stocks at Rs 1,083 per share. Some Foreign Investors in the list of anchor investors include Goldman Sachs (6.67%), HSBC Global (6.67%), Nomura (6.67%), Abu Dhabi Inv Authority (6.67%).
BPCL + ONGC + BEML
BPCL: Company's disinvestment will be completed by September end: Petroleum Secretary.
ONGC: Petroleum Secretary has said that the company has applied for revision of gas price. The government is considering a proposal to change the APM formula.
BEML: The mining company has incorporated a WoS in the name and style of BEML Land Assets Limited This is being done for the demerger of surplus land and assets of the Company as part of a strategic disinvestment process undertaken by the Government of India.
Bandhan Bank - Q1FY22 business update
Loans & Advances: 80128 vs 74331, +8% yoy (-8% QoQ)
Total Deposits: 77336 vs 60610, +28% YoY (-1% QoQ)
CASA Ratio: 42.9% vs 37.1% YoY (43.4% last quarter)
Bank Collection efficiency for June was ~80%
08:15 AM IST