Monitoring Stocks: Tech Mahindra, Bajaj Auto, Tata Steel, TVS Motor, DLF

On Wednesday, the benchmark Sensex surged by 689 points, closing at 71,060. Simultaneously, the Nifty experienced a gain of 215 points, reaching 21,453. Today, the focus is on the quarterly earnings of several companies, including JSW Steel, Punjab National Bank, ACC, Adani Power, SBI Cards and Payment Services, SBI Life Insurance Company, Tata Technologies, Vedanta, Hindustan Petroleum Corporation, AU Small Finance Bank, Cholamandalam Investment and Finance Company, Cyient, Equitas Small Finance Bank, Indian Energy Exchange, Indraprastha Gas, and Syngene International.

Tech Mahindra: Tech Mahindra, the IT major, has reported a 61 percent decline in net profits YoY, which fell to Rs 510.4 crore in the December 2023 quarter from Rs 1,296.6 crore in the same period last year. Revenue from operations also fell 4 percent YoY from Rs 13,734.6 crore in Q3FY23 to Rs 13,101.3 crore in the latest quarter. However, the Q3 earnings for Tech Mahindra are in line with expectations. In the previous quarter, which ended in September 2023, Tech Mahindra reported a 3 percent increase in net profits at Rs 494 crore. Additionally, the company saw a 2 percent QoQ increase in revenue, which rose from Rs 12,864 crore in Q2FY24.

Bajaj Auto: Bajaj Auto, a leading automobile manufacturer, has reported a 37 percent increase in standalone net profit for the year, with profits reaching Rs 2,042 crore. This surpasses estimates from top brokerage firms, who predicted a 33 percent YoY rise to Rs 1,987 crore. This year's net profit is a significant increase from last year's Rs 1,491 crore. Bajaj Auto's revenue from operations has also increased by 30.1 percent to Rs 12,114 crore, compared to Rs 9,315 crore in the same period last year.

Tata Steel: The company reported a consolidated net profit of Rs 522 crore in Q3FY24, compared to a net loss of Rs 2,501.95 crore in the corresponding quarter of the previous year. The company had also registered a net loss of Rs 6,511.16 crore in Q2FY24, primarily attributed to impairment charges. Tata Steel's year-on-year (YoY) comparison reveals a 3 percent decrease in revenue from operations, amounting to Rs 55,312 crore. This marks a slight dip from the Rs 57,084 crore recorded in the corresponding quarter of the previous year.

Indian Oil Corporation (IOC): The company has recently reported a significant increase in its net profit for the third quarter of the year, compared to the same period from the previous year. According to a company filing on the stock exchange, the standalone net profit for the December 2023-24 quarter was Rs 8,063.39 crore, which is higher than the Rs 448.01 crore profit in the same period a year ago. However, it's lower than the Rs 12,967.32 crore earned in the preceding three months, which ended on September 30, 2023. The company's revenue from operations was slightly lower at Rs 2.23 lakh crore in October-December compared to Rs 2.28 lakh crore a year ago, attributed to lower oil prices.

TVS Motor: The two-wheeler maker reported a 68 percent YoY rise in standalone net profit at Rs 593.35 crore in Q3FY24, compared to a net profit of Rs 352.75 crore during the year-ago period. TVS reported a 26 percent YoY rise in its net standalone revenue to Rs 8,245 crore during the quarter under review compared to the Rs 6,551 crore it had earned in the year-ago period. The company's operating revenue increased by 26 percent YoY to Rs 8,245 crores for the quarter ended December 2023, compared to Rs 6,545 crores reported in Q3FY23.

Dalmia Bharat: The cement manufacturer has reported a 22 percent year-on-year increase in its consolidated net profit for Q3FY24, amounting to Rs 266 crore. This growth can be attributed to the easing of commodity prices along with subdued fuel costs. The net profit is in line with the estimates of analysts polled by Bloomberg. Furthermore, the consolidated revenue of Rs 3,600 crore increased by 7.3 percent year-on-year, with an 8.1 percent increase in sales volumes being the major contributing factor. Additionally, the earnings before interest, tax, depreciation, and amortization (EBITDA) for the December ended quarter stood at Rs 775 crore, with Ebitda margin of 21.5 percent.

Canara Bank: The state-owned lender reported a net profit of Rs 3,656 crore for Q3FY24, registering a growth of 26.87 percent from Rs 2,881.5 crore in the corresponding period last year. The bank’s net interest income (NII) during the quarter rose 9.5 percent YoY to Rs 9,417 crore, from Rs 8,600 crore. Net interest margin (NIM) improved by 9 bps to 3.02 percent but was flat sequentially. The bank’s loan growth in Q3FY24 stood at 12.6 percent YoY. Its gross non-performing assets (GNPA) fell 5.1 percent to Rs 41,722 crore from Rs 43.955.6 crore, while net-non performing assets (NNPA) dropped 3 percent QoQ to Rs 12,176 crore from Rs 12,554 crore.

DLF Ltd: The realty major reported a 27 percent increase in consolidated net profit at Rs 655.71 crore in the December quarter on higher income and fewer expenses. Its net profit stood at Rs 517.94 crore in the year-ago period. Total consolidated income rose to Rs 1,643.51 crore in the October-December quarter of the 2023-24 fiscal from Rs 1,559.66 crore in the corresponding period of the previous year. On a standalone basis, DLF's net profit rose 57 percent to Rs 463.66 crore Q3FY24 from Rs 294.86 crore in the year-ago period. Total standalone income rose to Rs 1,117.40 crore in the latest December quarter from Rs 973.89 crore in the year-ago period, according to a regulatory filing.

Indian Overseas Bank (IOB): The state-owned bank has recently reported a 30 percent increase in its net profit at Rs 723 crore for Q3FY24. This was due to an improvement in core income and a reduction in bad loans. For comparison, the bank had earned a net profit of Rs 555 crore in the same quarter a year ago. Furthermore, the bank's operating profit also improved to Rs 1,780 crore, compared to Rs 1,540 crore in December 2022. According to IOB's regulatory filing, the total income increased to Rs 7,437 crore during the quarter under review from Rs 6,006 crore in the same period last year.

UCO Bank: The state-owned bank, UCO Bank, has reported a decline of 23 percent in net profit, which stands at Rs 503 crore in Q3FY24 as compared to Rs 653 crore in the same quarter of the previous year. However, the operating profit remained almost unchanged at Rs 1,119 crore in comparison to Rs 1,354 crore in the December 2022 quarter. The bank's total income increased to Rs 6,413 crore from Rs 5,451 crore in the same period last year, according to a regulatory filing by UCO Bank. Additionally, the bank's interest income has also risen to Rs 5,552 crore, up from Rs 4,627 crore in the same period last year.