Stocks in Focus on May 10: UltraTech Cement, Navin Fluorine, Avenue Supermarts, IDFC First Bank to Dr Reddy’s; here are the 5 Newsmakers of the Day
Domestic indices ended with decent gains on Friday, May 7, 2021, amid positive global cues. The S&P BSES Sensex climbed 257 points, or 0.52 per cent, to close at 49,206.
Domestic indices ended with decent gains on Friday, May 7, 2021, amid positive global cues. The S&P BSES Sensex climbed 257 points, or 0.52 per cent, to close at 49,206. The Nifty at the National Stock Exchange advanced 98 points, or 0.67 per cent, to 14,823. But certain stocks came in the news after the market was closed. These stocks can impact the indices, when it reopens on Monday, May 10, 2021. List of such five stocks:
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UltraTech Cement + Navin Flourine + Avenue Supermarts
UltraTech Cement: The cement company UktraTech has reported a 38.8% YoY decline in profit at Rs 1,777.5 crore for the quarter ended March 31, 2021 (Q4FY21). It had reported a net profit of Rs 2,906 crore in the same quarter of the previous financial year. Adjusted profit after tax (removing last year’s exceptional gain) grew 61% to Rs 1,777.5 crore against Rs 1,103 crore posted last year. Sales grew 34.8% YoY to Rs 13,965.5 crore as against Rs 10,360 crore posted last year. The EBITDA stood at Rs 3,512.4 crore, up 55.3% YoY, from Rs 2,261.9 crore. The margin improved to 25.2% in Q4FY21 against 21.8% posted in Q4FY20. Besides, the board has approved a dividend of Rs 37 per share for FY21, which is subject to approval in the upcoming AGM. Last year, an exceptional gain of Rs 1,803 crore was a part of the profit. Mr Atul Daga has been reappointed as the Whole-time Director for a further period of 3 years w.e.f. June 9, 2021.
Navin Fluorine: The chemical company has reported a 72.9% YoY decline in the consolidated profit at Rs 73.2 crore for the quarter ended March 31, 2021. It had posted a profit of Rs 270 crore in the same period of the previous financial year. Revenue from operations grew 21.6% to Rs 336.4 crore against Rs 276.6 crore posted last year. The EBITDA stood at Rs 336.4 crore, up 22.5%, from Rs 68.79 crore posted last year. Margins remained almost flat at 25% in the reported quarter against 24.9% posted last year. The company said that investing Rs. 195 crore will help commercialize new products in life science and crop science sectors in the specialty chemicals business. It expects peak annual revenue between Rs 260 and Rs 280 crores with margins and return ratios at company levels. Capacity is expected to come on stream during H1 of FY23.
Avenue Supermarts: The owner and operator of the retail chain D-Mart have reported a 52.6% YoY rise in the consolidated profit at Rs 413.9 crore for the quarter ended March 31, 2021. It had reported a profit of Rs 271.3 crore in the same period of the previous financial year. Revenue from operations grew to 18.5% to Rs 7,411.9 crore in the reported quarter against Rs 6,255.9 crore posted last year. EBITDA stood at Rs 612.7 crore, up 46.8%, from Rs 417.3 crore posted last year. The EBITDA margin improved to 8.3% in Q4FY21 from 6.7% posted in Q4FY20. Besides, the company said significant disruptions have been seen from March 2021 onwards in its store operations as restrictions and local level enforcements have become much stricter. The shutdowns are having an adverse and severe impact on our revenues.
IDFC First Bank + Bandhan Bank + DCB Bank + CSB Bank
IDFC First Bank: The private lender has reported a 78% YoY jump in the net profit at Rs 128 crore for the quarter ended March 31, 2021. It had posted a profit of Rs 72 crore during the corresponding January-March quarter a year ago. Net interest income (NII) grew 15% to Rs 1,960 crore in the reported quarter against Rs 1,700 crore posted last year. Provisions and contingencies rose to Rs 603 crore QoQ from Rs 482 crore made in the December quarter and Rs 412 crore in the same quarter last year. On the asset front, the gross non-performing assets (NPAs) or bad loans as a percentage of gross loans as of March 31, 2021, declined to 4.15% from 4.18% in the December quarter. At the same time, net NPAs too declined to 1.86% as against 2.04% in December 2020.
Bandhan Bank: The private lender's profit fell 80% to Rs 103 crore for the quarter ended March 31, 2021. It had reported a profit of Rs 517 crore in the same quarter of the last financial year. The Kolkata-based lender’s net interest income (NII) grew 4.5% to Rs 1,757 crore in the reported period against Rs 1,680 crore posted last year. Provisions rose sharply to Rs 1,594 crore in the March quarter against Rs 1,069 crore made in the previous quarter ended December 31, 2020. The bank’s gross non-performing asset (NPAs) ratio fell to 6.8% in the March quarter against 7.12% posted in the December quarter. Net NPA rose to 3.5% in the March quarter against 2.36% posted in the December quarter. Assam Collection efficiency stood at 83% in Mar’21 vs 88% as of Dec’20.
DCB Bank: The private lender has reported a 19% YoY rise in the profit at Rs 78 crore for the quarter ended March 31, 2021, against a profit of Rs 69 crore posted in the same quarter of the previous financial year. Net interest income (NII) fell 4% to Rs 311 crore in the reported quarter against Rs 324 crore posted last year. Provisions declined QoQ to Rs 101 crore in March quarter against Rs 148 crore posted in December quarter. Gross non-performing assets (NPAs) rose to 4.09% QoQ from 1.96% reported in the previous quarter. Net NPA grew to 2.29% in the reported period from 0.59% posted in the December quarter.
CSB Bank: The private lender has reported a profit of Rs 43 crore for the quarter ended March 31, 2021, as against a loss of Rs 60 crore posted in the same quarter of the last financial year. The net interest income grew 75% to Rs 276 crore in the reported quarter against Rs 158 crore reported last year. Provisions fell to Rs 72 crore in the March quarter against Rs 112 crore made in the previous quarter ended December 2020. The gross net-performing assets (NPAs) rose 2.68% QoQ from 1.77%, while the Net NPA rose to 1.17% QoQ from 0.68%.
Dr Reddy’s + Jubilant Pharmova
Dr Reddy's Lab: In a major breakthrough against the coronavirus infection, a drug developed by the Defence Research and Development Organization (DRDO) got approval for emergency use by the Drugs Controller General of India (DCGI). Amid the second wave of COVID-19 pandemic, this drug will prove to be beneficial for the patients who are suffering from COVID-19. The drug 2-deoxy-D-glucose comes in powder form in a sachet, which needs to be taken orally by dissolving it in water. The drug has been developed by one of the DRDO labs, the Institute of Nuclear Medicine and Allied Sciences (INMAS) in collaboration with Dr. Reddy’s Laboratories. Dr Reddy’s will produce the drug and has plans to launch it in the market in one month.
Jubilant Pharmova: Subsidiary Jubilant Pharma Limited has received a favourable and unanimous judgment from the United States Court of Appeals summarily affirming Jubilant's earlier favourable rulings from the US Patent Office ("PTAB") and the US International Trade Commission ("ITC"). These two rulings by the Appellate Court denied the appeals filed by Bracco Diagnostics, Inc ("Bracco"). Besides, CRISIL Ratings has removed Long Term Bank Facilities and Non-Convertible Debentures of the Company from ''Rating Watch with Developing Implications'' and has assigned a 'Positive' outlook for the long-term rating. CRISIL Ratings has also withdrawn the rating on the bank facilities on receipt of a ''No Objection Certificate' from the banker and on debt instruments of the Company, as the bank facilities and debt instruments have been transferred to Jubilant Ingrevia Limited, post demerger of the Life Science Ingredients Business of the Company. The rating withdrawal is based on the Company's request and in line with CRISIL Rating's policy on withdrawal of ratings.
COVID Shutdown – Maruti + Hero MotoCorp + TTKK = delta
Maruti Suzuki India: The maintenance shutdown, which was scheduled to end on May 9, has been extended till May 16, 2021 keeping in view the current pandemic situation.
Hero MotoCorp: In view of the prevailing COVID-19 situation across the country, Hero MotoCorp decided to extend the shutdown at its manufacturing facilities across India, its Global Parts Center (GPC) in Neemrana and its R&D facility – the Centre of Innovation and Technology (CIT) in Jaipur – by another week, till May 16, 2021.
TTK Prestige: As per the Tamil Nadu Government order dated 08/05/21, to curtail COVID-19 Spread, all industries are restricted from functioning. Hence, TTK Prestige Limited's Hosur and Coimbatore factories would not be functioning from May 10, 2021, to May 24, 2021.
Tata Metaliks + Welspun Corporation
Tata Metaliks: Decided to operate at 50% capacity on the orders of the West Bengal government.
Welspun India: The board is scheduled to meet on May 14, 2021, to consider and approve financial results and buyback, if any.
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