Stocks on Focus: Oil India, BEL, RVNL, Whirlpool, SAIL, ONGC, NHPC

On May 21, Indian stock markets may open with slight gains on Tuesday, following a mixed performance in US and Asian markets. Although tech shares drove the Nasdaq Composite to record highs, most Asia-Pacific markets experienced declines. Specifically, Hong Kong’s Hang Seng dropped nearly 1 percent, Korea’s Kospi was down 0.33 percent, while Japan’s Nikkei traded 0.23 percent higher. Conversely, European markets ended the day on a positive note, with Germany’s DAX soaring 0.35 percent and the UK’s FTSE advancing 0.05 percent.

Oil India: In the fourth quarter of the fiscal year 2024, Oil India reported a 10 percent sequential decline in consolidated net profit to Rs 2332.94 crore, but a 17 percent year-over-year increase. The company’s revenue from operations rose by approximately 16 percent year-over-year to Rs 10,166 crore. Oil India's board recommended a 1:2 bonus share issue and a final dividend of Rs 2.50 per equity share (post-bonus) for FY24, in addition to the interim dividends already paid. The company’s EBITDA for Q4 rose to Rs 3838 crore, with an 18 percent year-over-year increase in crude oil EBIT to Rs 1,744.75 crore. Oil India achieved its highest-ever EBIDTA of Rs 11,643.30 crore for FY24, driven by record oil and gas production of 6.54 MMTOE. Crude oil production increased by 5.76 percent to 3.359 MMT in FY24, and natural gas production also grew. The company drilled a record 61 wells during the year.

Bharat Electronics: BEL's Q4 consolidated net profit jumped by 30 percent to Rs 1,797 crore. Revenue from operations increased by 32 percent to Rs 8,564 crore from Rs 6,479 crore in the same quarter last fiscal.

Rail Vikas Nigam: RVNL reported a 33.2 percent year-on-year jump in Q4 net profit at Rs 478.6 crore. The company’s revenue from operations increased by 17.4 percent to Rs 6,714 crore, compared to Rs 5,719.8 crore in the corresponding period of the previous fiscal year. Additionally, the state-run railway company received a Letter of Acceptance for a Rs 148.3 crore project from SER HQELECTRICAL/South Eastern Railway. The project involves the upgrade of the electric traction system in the Kharagpur division of South Eastern Railway.

Whirlpool: The company reported a 24.7 percent increase in Q4 net profit to Rs 79.4 crore and a 3.7 percent revenue growth to Rs 1,734 crore.

Oil and Natural Gas Corporation: ONGC recorded a 78 percent increase in consolidated net profit at Rs 11,526.53 crore in Q4 FY24. The board of directors recommended a final dividend of Rs 2.50 per equity share for FY24.

Shipping Corporation of India: The company reported a 19 percent YoY decline in its Q4 net profit at Rs 307.3 crore. The company’s revenue from operations fell 0.4 percent YoY to Rs 1,412 crore as against Rs 1,418 crore in the corresponding period of the preceding fiscal.

NHPC: The company recorded a 16.3 percent year-on-year decline in Q4 net profit, amounting to Rs 549.8 crore. Additionally, the company’s revenue from operations decreased by 6.9 percent to Rs 1,888.1 crore, in comparison to Rs 2,028.8 crore in the same period of the previous fiscal year.

RITES: The company signed a contract with Bangladesh Railways on Monday to supply 200 broad-gauge passenger carriages to the neighboring country. The contract includes a 36-month supply and commissioning period, followed by a 24-month warranty period.

Astral: The company's Q4 net profit dropped by 11.7 percent YoY to Rs 181.6 crore, while its revenue from operations rose by 8 percent YoY to Rs 1,625 crore, compared to Rs 1,506.2 crore in the same period of the previous fiscal year.

Solara Active Pharma Sciences: The API manufacturing facility of Solara, located in Visakhapatnam, was inspected by the US FDA, which declared it to be in an "Acceptable State of Compliance" with no Form 483 observations. The inspection period was from May 14 to May 17, 2024.

Tata Motors, Bajaj Finance: Tata Motors' subsidiaries, Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility, have partnered with Bajaj Finance to offer a financing program for authorized passenger and electric vehicle dealers. Earlier this month, Tata Motors reported an 11.5 percent year-over-year increase in total wholesales, totaling 77,521 units last month compared to 69,599 units in April 2023. Additionally, total passenger vehicle sales rose 2 percent to 47,983 units last month from 47,107 units in April 2023.

Radico Khaitan: According to a regulatory filing on 20 May, the company announced that it sold a record 6 million cases of its vodka brand Magic Moments, generating sales worth Rs 1,000 crore in FY24.

Dr Reddy’s Laboratories, Sun Pharma, and Aurobindo: The three companies are recalling their products in the US market due to manufacturing issues. Dr. Reddy’s Laboratories is recalling Javygtor (sapropterin dihydrochloride) Powder for Oral Solution (100mg) due to it being a "Sub-potent Drug." Sun Pharma is recalling 11,016 vials of Amphotericin B Liposome for Injection, used to treat fungal infections, in the US market. Aurobindo Pharma is recalling 13,605 bottles of Clorazepate Dipotassium Tablets (3.75 mg and 7.5 mg), used to treat anxiety, in the American market. FDC Ltd is recalling 382,104 units of Timolol Maleate Ophthalmic Solution, used to treat glaucoma, in the American market due to "Defective Container."

JSW Steel: The company’s consolidated net profit for the March quarter dropped by 64.54 percent to Rs 1,299 crore, mainly due to increased coking coal prices. Its consolidated revenue also decreased by 1.5 percent year-on-year to Rs 46,269 crore.

Delhivery: The logistics company experienced growth in its Q4 revenue, driven by strong volumes in express parcel, part truckload freight, and truckload services. Its revenue increased to Rs 2,076 crore from Rs 1,860 crore a year ago, and its loss decreased to Rs 69 crore from Rs 159 crore a year ago.

Wipro: Srinivas Pallia has taken over as CEO and is relying on his trusted lieutenants to steer the company. The COO, Amit Choudhary, has resigned to pursue opportunities outside the organization. This marks the second departure of former CEO Thierry Delaporte’s trusted men in less than two months of Pallia taking over. Sanjeev Jain, who joined Wipro as its global head of business operations in August 2023, has been promoted to the position of COO.

IDFC First Bank: The shareholders have given their approval for the merger of IDFC Limited with the bank. The National Company Law Tribunal (NCLT) held a meeting on May 17 to review and ratify the comprehensive scheme of amalgamation for IDFC FIRST Bank. The resolution endorsing the Scheme was passed by the necessary majority of the equity shareholders. In December 2023, the Reserve Bank of India approved the reverse merger of IDFC Ltd with its banking subsidiary, IDFC First Bank.

Zee Entertainment Enterprises: The company reported a net profit of Rs 13.35 crore for the March quarter, compared to a loss of Rs 196 crore in the same period last year. Its total income increased by 3 percent to Rs 2,185 crore. The company also plans to lay off an estimated 15 percent of its staff to implement a leaner management structure and reduce costs.

Indian Railway Finance Corporation: IRFC reported a 33.6 percent year-over-year rise in its net profit to Rs 1,717 crore for the quarter ended March 31, 2024. Its total revenue from operations for the March quarter also rose by 1.73 percent to Rs 6,473 crore from Rs 6,193 crore last year. The company’s net profit for FY24 was Rs 6,412 crore, compared to Rs 6,167 crore in FY23. The company has recommended a final dividend of Rs 0.70 per equity share of Rs 10 for FY24.

Zydus Lifesciences: The pharmaceutical company saw a nearly fourfold increase in net profit for the March quarter, reaching Rs 11.82 billion, attributed to growth in its U.S. business and the domestic market. Total revenue from operations also rose by 10.4 percent to Rs 55.34 billion.

Ujjivan Small Finance Bank: The bank reported a 6.5 percent rise in net profit to Rs 329.6 crore for Q4 FY24, compared to Rs 309.5 crore in the same period last year. Its net interest income increased by 26.4 percent to Rs 933 crore, compared to Rs 738 crore in the year-ago period. The bank’s gross NPA in the March quarter was 2.23 percent, compared to 2.18 percent in the preceding December quarter. The net NPA was 0.28 percent compared to 0.17 percent on a sequential basis.

JB Chemicals & Pharmaceuticals: The company announced a 43 percent increase in net profit to Rs 126 crore for the March quarter, attributed to strong sales. Revenue for the fourth quarter climbed to Rs 862 crore, up from Rs 762 crore the previous year.

Vodafone Idea: The telecom company is in advanced talks with its suppliers to launch 5G services within the next six months. The company has met the minimum rollout requirements mandated by the government in four circles.

LT Foods: The FMCG company reported a 14 percent increase in consolidated net profit to Rs 150.24 crore for the fourth quarter of FY24, driven by strong sales. The company’s total income during the quarter was Rs 2,091.73 crore, compared to Rs 1,834.95 crore in the same period a year ago. Its expenses increased to Rs 1,898.46 crore from Rs 1,685.92 crore a year earlier.

Electrotherm: The company's net sales in March 2024 were Rs 1,217.57 crore, marking a 17.85 percent increase from the previous year's Rs 1,033.16 crore. The quarterly net profit for Q4FY24 was Rs 104.98 crore, a substantial 440.02 percent rise from Q4FY23's Rs 19.44 crore.

Power Mech Projects: The company reported a 13.1 percent year-over-year increase in net profit, reaching Rs 84.4 crore for the fourth quarter ending on March 31, 2024. Additionally, the company's revenue from operations rose by 10.9 percent to Rs 1,301.5 crore, compared to Rs 1,174.1 crore in the same period of the previous fiscal year.

Patel Engineering: The company's net profit for Q4FY24 surged by 83 percent year-over-year to Rs 141 crore, while revenue from operations also increased by 11.5 percent to Rs 1,343 crore, compared to Rs 1,205 crore in the previous fiscal year.