India's April-June Quarterly Update: Pandemic Impact Not as Bad as Expected
As per the latest media reports, both Sensex and Nifty rallied over 1 percent gain in the Second Quarter of the financial year 2020 from April to June. Despite the Coronavirus Pandemic in its full ravaging mode in India, the net gain can be primarily attributed to the stocks of Pharma, Banking, metallurgical, and the IT sector.
A total of 186 Indian companies have announced their Quarterly Earnings on Tuesday i.e., July 28. It includes the likes of Ultratech Cement, Nestle India, TCS, Tata Motors, Castrol India, IDBI Bank, IDFC Bank, Yes Bank, Religare Enterprises, NIIT Technologies, Kotak Mahindra Bank, ICICI Bank, ONGC, Asian Paints among many others.
On Tuesday, the Sensex closed at 558.22 points or 1.47 percent higher at 38492.95 points and Nifty close at 168.70 points or 1.52 percent higher at 11300.50 points.
Let us look at the companies that performed relatively well in the second financial Quarter of the year, minimizing the financial impact of the Coronavirus Pandemic to some extent.
IDBI Bank announced its quarterly earnings results on July 28. The bank's net profit surged by 103.8 percent to Rs 144.43 Crores. The stocks of IDBI Bank closed at Rs 38.25 on BSE with a 3.66 percent gain on Tuesday.
IndusInd Bank Ltd was trading at Rs522.10 on Tuesday, up by Rs15.7 or 3.1%, from its previous closing of Rs506.40 on the BSE.
ICICI Bank – an Indian multinational bank, announced its quarterly update on July 25, 2020. Profit stood at Rs 2599.15 Crores, an increase of 36,2 percent from its previous year quarterly reports.
Sanofi India Ltd., formerly known as Aventis Pharma, posted a net profit of Rs 136.3 Crores for the Second Quarter, which is an increase of 39.94 percent compared to the same financial Quarter in the previous year.
On the other hand, in the automobile sector, Tech Mahindra reported an increase of 1.4 percent in Quarterly profits from a year ago. Profit for the June quarter stood at Rs 972 Crores, while revenue increased by 5.3 percent. During the Second Quarter (April-June 2020), Tech Mahindra signed many comprehensive new deals worth $300 million in enterprise services and $100 million in communications.
Tata Coffee Ltd. on Tuesday reported a staggering 77 percent year-on-year increase in its consolidated net profit in its June quarterly report, Consolidating a net profit of Rs 62 crores. Improved performances in the value-added businesses have mainly driven the profits.
On the IT sector front, Hexaware Technologies reported a net profit of 152.5 crores for the June quarter, 0.7 percent higher on year.
The Indian FMGG sector fared quite well with FMGG major Colgate-Palmolive India Ltd. (CPIL) reporting a 17.18 per cent increase in net profit at Rs 198 crores for the April-June Quarter. "Our toothpaste business delivered positive sales growth for the quarter reflecting the strengthening brand attributes and portfolio performance," says CPIL Managing Director, Ram Raghavan.
India's largest multinational food & beverage company Nestle consolidated a net profit of 486.6 Crores for the Second Quarter of the financial year 2020. – a growth by 11.15 percent. The growth can be attributed mainly to the performance of Nestle's e-commerce channels, which grew by 122 percent this summer, contributing 3.6 percent towards domestic sales.