Stocks in Focus on May 12: UPL, JSPL, TATA Power, SPARC to PowerGrid InvIT; here are the 5 Newsmakers of the Day
At the stock markets, the Sensex at the Bombay Stock Exchange declined 471 points, or one per cent, to close at 48,691, on Wednesday, May 12, 2021.
At the stock markets, the Sensex at the Bombay Stock Exchange declined 471 points, or one per cent, to close at 48,691, on Wednesday, May 12, 2021. The Nifty at the National Stock Exchange slipped 154 points, or one per cent, to 14,697. But certain stocks came in the news after the market was closed. These stocks can impact the indices, when it reopens on Friday, May 14, 2021. List of such five stocks:
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UPL + Pidilite + Lupin + Piramal Enterprises
UPL: The producer of crop protection products, intermediates, specialty chemicals and other industrial chemicals has reported a 74% YoY rise in the consolidated profit at Rs 1,361 crore for the quarter ended March 31, 2021. It had reported a profit of Rs 784 crore in the same quarter of the previous financial year. Consolidated revenue grew 15% to Rs 12,796 crore as against Rs 11,141 crore posted last year. EBITDA stood at Rs 2,839 crore, up 31% from Rs 2,169 crore posted last year. The margin improved to 22% in Q4FY21 against 19.5% posted in Q4FY20. Besides, the company has reduced net debt by 14% YoY in FY21 and currently stands at Rs 18,922 crore. It has increased its guidance and provided FY22 guidance and said revenue growth is expected to be in the 7-10% range, EBITDA growth likely to be in the range of 12-15%. FY21 Guidance for revenue growth was 6-8% and EBITDA growth was at 8-10%. Geographical revenue growth
8% Latin America
1% North America
3% rest of the world
Pidilite: The adhesives manufacturing company has reported a 96.4% rise in consolidated profit at Rs 307.4 crore for the quarter ended March 31, 2021. It had posted a profit of Rs 156.5 crore in the same quarter last year. Consolidated revenue from operations grew 44.7% to Rs 2,235.5 crore as against Rs 1,544.7 crore posted last year. EBITDA stood at Rs 460.8 crore, up 53.1% from Rs 300.9 crore posted last year. The EBITDA Margins improved to 20.6% against 19.5% posted last year. The Board of Directors has recommended a Dividend of Rs 8.50 per share.
Sales Up 54.6% to Rs 1730.3 crore v/s Rs 1119.4 crore
EBIT Up to Rs 68.1% to Rs 469 crore v/s Rs 279.1 crore
EBIT 27.1% v/s 25%
Business to Business
Sales Up 21.3% to Rs 535 crore v/s Rs 441.1 crore
EBIT down 27.9% to Rs 52.4 crore v/s Rs 72.7 crore
EBIT Margins down to 9.8% v/s 16.5%
Overall Volume & Mix growth of 40%
Volume & Mix growth of 45% on Consumer business
Volume & Mix growth of 26% in B to B
Lupin: The pharmaceutical company has reported an 18.6% YoY rise in the consolidated profit at Rs 464.4 crore for the quarter ended March 31, 2021. It had reported a profit of Rs 391.3 crore in the same quarter last year. Consolidated revenue fell 1.6% to Rs 3,783.1 crore in the reported quarter against Rs 3,845.7 crore posted last year. EBITDA stood at Rs 707.5 crore, up 34.7% against Rs 525 crore posted last year. Margins improved to 18.7% in Q4FY21 against 13.7% in Q4FY20. Tax expenditure fell 48.6% to Rs 54 crore in the period in consideration against Rs 105 crore posted last year. Media Brief Highlights:
North America sales decline 5.3% YoY
Albuetrol Market share currently at 8% in the US
Low Flu season Impacted US sales
India Sales up 7.9% YoY (8-10% Est)
Growth Markets up 8.3%
API sales down 22% YoY (Double-digit growth was expected)
Optimistic on gSpiriva to get approval and launch expected in FY22 for US Market
Nothing to report on remote inspection happening by USFDA
15 Launches planned in the US this fiscal
Hoping for Fostair Q1 Approval in Europe
Have applied for Voluntary license approval for remdesivir and still waiting to hear about that
Trying to partner for Fill and Finish with partners to use the Injectable facility for COVID vaccination ramp-up
Piramal Enterprises: The diversified global business conglomerate has reported a consolidated loss of Rs 510 crore for the quarter ended March 31, 2021, against a profit of Rs 1,703 crore posted in the same quarter of the last financial year. Consolidated revenue grew 1.8% to Rs 3,401 crore in Q4FY21 as against Rs 3,341 crore posted in Q4FY20. Gross Non-performing Assets (NPA) grew to 4.5% in Q4FY21 against 3.7% posted in Q3FY21. The Net NPA went up to 2.4% in the reported quarter against 1.8% posted in the previous quarter. About the proposed DHFL acquisition, the company said Piramal Capital & Housing Finance Ltd's (PCHFL) resolution plan has received approvals from RBI in February 2021 and the Competition Commission of India (CCI) in April 2021. The RBI approved the bid of Rs 34,250 crore in February 2021.
JSPL + Vedanta + Hindalco
JSPL: The steel and energy company has reported a 600% YoY rise in the consolidated profit at Rs 2,139 crore for the quarter ended March 31, 2021. It had reported a profit of Rs 306 crore for the same quarter of the last financial year. Consolidated revenue grew 75% to Rs 11,881 crore as against Rs 6,795 crore posted last year. EBITDA stood at Rs 5,288 crore, up 206% YoY from Rs 1,730 crore posted last year. Margin improved to 44.5% in Q4FY21 against 25.5% posted in Q4FY20. The company has reported a differed tax expenditure of Rs 1,030 crore. Standalone JSPL reported all-time high EBITDA/T at Rs 25568/t up by 129% YoY and 23% QoQ.
VEDANTA: The mining company has reported YoY consolidated profit of Rs 6,432 crore for the quarter ended March 31, 2021, as against a loss of Rs 12,521 crore posted last year in the same quarter. Consolidated revenue grew 43% to Rs 28,206 crore as against Rs 19,755 crore posted last year. EBITDA stood at Rs 9,037 crore, up 99% from Rs 4,552 crore posted last year. The margin improved to 32% in Q4FY21 against 23% posted in Q4FY20. Q4FY20 had an impairment expense of Rs 17,132 crore. Revenue growth
Zinc international 9% QoQ & 23% YoY
Oil & Gas 37% QoQ & 8% YoY
Aluminium 19% QoQ & 38% YoY
Copper 48% QoQ & 75% YoY
Iron ore 35% QoQ & 61% YoY
Other decisions taken by the board includes
Capex investment of $35.1 crore towards infill wells and exploration
120 KTPA Billet capacity expansion at cost of Rs 194 crore, which will improve Jharsuguda location VAP capacity to 67%
100 KTPA smelter expansion at cost of Rs 1052 crore which is required to run operation at 100% pot capacity at Jharsuguda
Rolled Product Capacity Expansion at Balco from existing 50 KTPA to 130 KTPA at a cost of Rs 348 crore
Capacity Expansion of Lanjigarh Alumina Refinery from 2 MTPA to 5 MTPA at a revised cost of Rs 4,681 crore approx
Hindalco Industries: Subsidiary Novelis has reported a 186% rise in profit at $18 crore for the quarter ended March 31, 2021, against $6.3 crore posted last year in the same quarter. Net Sales grew 33% to $363 crore against $273 crore posted last year. EBITDA grew 104% to $506 crore against $25 crore reported last year. Margins improved to 13.9% in Q4FY21 against 9.15% reported last year.
Tata Power + IEX + Borosil Renewables
Tata Power: The electric power distribution company has reported a 1.4% YoY rise in the consolidated profit at Rs 481 crore for the quarter ended March 31, 2021. It had posted a profit of Rs 475 crore in the same quarter of the last financial year. Consolidated revenue from operations grew 53% YoY to Rs 10,127 crore in the reported quarter against Rs 6,621 crore posted last year. EBITDA stood at Rs 1,446 crore, down 8.4% from Rs 1,580 crore posted last year. The margins declined to 14.3% in Q4FY21 against 23.8% reported in Q4FY20. Other income dropped 45% YoY to Rs 95 crore against Rs 173 crore posted last year. The board approved a dividend of Rs 1.55/share.
Revenue rises due to the acquisition of Odisha Distribution Business. (Not comparable YoY)
T&D Revenue at 5022 crore, up 57%
Generation Revenue at 3238 crore, down 10%
Renewables Revenue at 2692 crore, up 178%
EPC order book at 8742 crore
Company to raise upto Rs 5500 crore via NDCs
Reduced net debt by over Rs 7000 crore last year
Interest cost down to 7.4% vs 8.3%
Debt to equity at 1.4x
IEX: Strong (NAKK stock) Reported a 34.9% YoY rise in the consolidated profit at Rs 61.5 crore for the quarter ended March 31, 2021, against Rs 45.6 crore posted in the same quarter last year. Consolidated revenue grew 35.2% to Rs 93.8 crore in the reported quarter as against Rs 69.4 crore posted last year. EBITDA stood at Rs 77.4 crore, up 47.7% from Rs 52.4 crore posted last year. The EBITDA margin improved to 82.5% in Q4FY21 as against 75.5% posted in Q4FY20.
Borosil Renewable: Reported 16.5 times YoY jump in the consolidated profit at Rs 66.9 crore for the quarter ended March 31, 2021, against Rs 4.1 crore posted last year in the same quarter. Consolidated revenue grew 105.7% to Rs 194 crore in the reported quarter against Rs 94.3 crore posted last year. EBITDA stood at Rs 103.7 crore, up 5.1 times from Rs 20.2 crore posted last year. Margin improved to 53.5% in Q4FY21 against 21.4% posted in Q4FY20. Board has approved the raising of capital by issuance of equity shares for an amount not exceeding Rs. 100 Crore by way of a rights issue. The amount will be used for part financing the installation of the first phase of the expansion plan in the form of an additional manufacturing facility (SG – 4) with a capacity upto 500 Tonnes Per Day (TPD) at its existing location in Bharuch, Gujarat
SPARC + Dr Reddy’s
SPARC (CMP: 241) Board has allowed the promoter to issue up to 6.74 crore warrants - each convertible into, or exchangeable for, one equity share within the period of 18 months - worth Rs 1,200.96 crore at a price of Rs 178 per warrant. Upon issue of Warrants in accordance herewith, an amount equivalent to 25% of the total issue size shall be called upfront from the proposed allottees.
Dr Reddy: Health Ministry has said that the COVID-19 vaccine Sputnik has arrived in India and is likely to be available in the Indian market by next week. Currently, there will be a limited supply of the vaccine and it is expected that around 156 million doses will be available in India from August-September.
PowerGrid InvIT Listing + PNB QIP
Power Grid InvIT: The PowerGrid InvIT is scheduled to list on the bourses today. The issue price is Rs 100 per unit and the market lot size is 100 units. The IPO offer of Power Grid InvIT ran between April 29 and May 3, 2021, included a fresh issue of shares worth Rs 4,993.48 crore and an offer for sale (OFS) to the tune of Rs 2,741.50 crore by selling shareholders.
PNB: The board is scheduled to meet today to finalise the final price and size of the QIP. It may offer a 5% discount on the current market price.
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