Stocks on Focus: UltraTech Cement, Tata Chemicals, Linde India, Trent, IOC, BSE

The domestic markets will be guided by trends across global markets and stock-specific action back home on Tuesday, April 30, 2024, amid the announcement of March quarter (Q4FY24) results. At 7:40 AM, the Gift Nifty was up 36 points, reaching the 22,787 level.

UltraTech Cement: The company announced on Monday that it had recorded a consolidated profit after tax of Rs 2,258 crore in Q4FY24, which was an increase of 36 percent YoY. This exceeded the expected results as fuel costs were reduced and there was a double-digit increase in volume. In comparison, in Q4FY23, the company had posted a net profit of Rs 1,666 crore. The consolidated revenue from operations for the quarter ending March 2024 rose by 9.4 percent YoY to Rs 20,419 crore. Bloomberg had projected a PAT of Rs 2,123 crore and revenue of Rs 20,084 crore for the quarter. The company's EBITDA was at Rs 4,250 crore, with a margin of 20.81 percent. The effective capacity utilization for the quarter was 98 percent and for the full year was 85 percent. For the fiscal year ending 31 March, UltraTech reported a consolidated net profit of Rs 7,005 crore, marking a 38 percent increase. Revenue climbed by 12 percent to Rs 70,908 crore, with an EBITDA of Rs 13,586 crore. The EBITDA margin was 19.16 percent.

Tata Chemicals: A Tata group company has reported a net loss of Rs 850 crore for the quarter ending March FY24. This is a significant shift from the profit of Rs 709 crore it made during the same period last year. The company has acknowledged a non-cash asset write-down of Rs 963 crore related to the UK's Lostock Plant, which has been reported as an exceptional loss. The company's revenue from operations for the quarter has decreased by 21.1 percent YoY, amounting to Rs 3,475 crore.

Linde India: The market regulator has directed the National Stock Exchange (NSE) to appoint a valuer to evaluate the business opportunities that were given up by Linde India, and acquired by its related party, Praxair India, as a result of the execution of a joint-venture and shareholders agreement. In 2018, Linde AG, the parent company of LIL, and Praxair AG, the parent company of PIPL, merged to form the NASDAQ-listed Linde Plc. The regulator has issued an interim order stating that the allocation of business opportunities by the listed LIL to a related party must be scrutinized in the same manner as regular Related Party Transactions (RPTs), which involve a direct exchange of assets or services. Additionally, the regulator has instructed LIL to cover the expenses incurred by NSE during the valuation process.

Trent: The company has reported a dramatic increase in its consolidated net profit for the quarter ending in March. The net profit rose thirteenfold, amounting to Rs 704.2 crore. The significant increase was due to an exceptional gain of Rs 576 crore, which resulted from a reassessment of the company's lease liabilities and right-of-use assets. The company's revenue for the quarter also surged by 51 percent to Rs 3297.7 crore, following the opening of 104 new stores. By the end of the year, the retailer had a total of 811 stores, including 232 Westside stores, 545 Zudio stores, and 34 stores across other lifestyle concepts. The company expanded its presence by adding 12 Westside and 86 Zudio stores across 65 cities, including 25 new cities. The operating EBIT margin was 8.2 percent in Q4, which is a significant increase from the 2.8 percent margin reported in the same period last year.

Indian Oil Corporation: Indian Oil Corporation (IOC) is set to release its financial results for the quarter ending on March 31, 2024, on Tuesday, April 30. Analysts predict a 5 percent increase in revenues to reach Rs 2.09 lakh crore, compared to the previous quarter. However, despite the expected revenue growth, there is an anticipated 5 percent decrease in EBITDA to Rs 14,700 crore, down from the Rs 15,488 crore reported in the previous quarter. Additionally, the margin is also forecasted to decline by 70 basis points to 7.1 percent. Analysts expect the quarterly profit after tax to drop by 6 percent to Rs 7,571 crore, a decrease from Rs 8,064 crore in Q3FY24.

BSE: Investec has recently reported that the market regulator SEBI has directed BSE to pay regulatory fees based on notional turnover instead of premium. This could result in a cash outflow of Rs 120 crore for past dues on the exchange. Due to the uncertain impact on earnings and the high valuation of the stock following its recent surge, Investec has placed their 'buy' rating and target price under review. Investec has further explained that BSE would need to pay Rs 96.3 crore instead of Rs 6 lakh for FY24, based on the total derivative volumes in FY24. BSE could make a one-time provision of Rs 96.3 crore for the FY24 payment, while the cumulative impact of past volumes from FY07-24 could be around Rs 120 crore, assuming past derivative volumes are options for BSE.

Nestle India: Nestle India has affirmed that Cerelac, its infant cereal brand, complies with local food regulations. The company has stated that the amount of added sugars in baby food is lower than the limit set by India's food regulator. Suresh Narayanan, chairman and managing director, explained that various methods and ingredients could be used to achieve the nutritional profile. He added that the inclusion of sugar in the product is necessary for India, but at levels significantly lower than what the local regulator permits. He emphasized the importance of trusting and having confidence in the local regulator's decisions. He confirmed that, even though there is added sugar in the product, its content is clearly stated on the packaging.

UCO Bank: The bank's financial report for the quarter ending March FY24 showed a net profit of Rs 525.8 crore, which is a 9.5 percent reduction from the previous year. The decline was partially attributed to increased provisions for bad loans and a lower pre-provision operating profit. However, the bank's net interest income increased by 10.9 percent year over year, reaching Rs 2,187.4 crore for the quarter. The bank also reported an improvement in asset quality during the quarter. The gross Non-Performing Assets (NPA) decreased by 39 basis points QoQ to 3.46 percent, while the net NPA dropped by 9 basis points quarter on quarter to 0.89 percent.

Mahindra & Mahindra: The carmaker has just launched its latest model of subcompact SUV, called the XUV 3XO. The base MX1 variant is priced at Rs 7.49 lakh, while the high-end AX7L model is available for Rs 13.99 lakh. The SUV will be competing in a highly competitive market segment, facing popular models such as the Tata Nexon and the Hyundai Venue. Customers can start making bookings from May 15 and deliveries are scheduled to start on May 26.

Jana Small Finance Bank: The small finance bank has reported a net profit of Rs 321.7 crore for the fourth quarter of the fiscal year 2023-24, which is almost four times higher than the Rs 81 crore reported during the same period last year. This growth was largely due to tax write-backs and reduced provisions. The bank's net interest income for the quarter increased by 26.5 percent YoY, totaling Rs 591 crore. The bank also experienced an improvement in asset quality during the quarter. The gross Non-Performing Assets (NPA) fell by 8 basis points sequentially to 2.11 percent, while the net NPA dropped by 15 basis points to 0.56 percent.

Spandana Sphoorty Financial: The microfinance institution recorded a net profit of Rs 122.2 crore in the quarter ending March FY24, indicating a 5.2 percent increase as compared to the corresponding period in the previous year. The company's net interest income for the quarter surged by 21.2 percent YoY, reaching a total of Rs 399 crore.

Vedanta: On Monday, Mines Secretary V L Kantha Rao confirmed that the government plans to divest its shares in Hindustan Zinc, a company belonging to the Vedanta group, through an offer for sale (OFS). The decision to proceed with the OFS will be based on an assessment of market conditions. As the largest minority shareholder in Hindustan Zinc, the government holds a 29.54 percent stake in the company. During an event, Rao stated that the government is committed to the OFS. This announcement comes after the mines ministry rejected Hindustan Zinc Ltd's proposal for demerger.

RITES: The company has announced that it has been granted a letter of acceptance from Bangladesh Railway for the provision of 200 Broad Gauge (BG) passenger carriages. The contract is valued at $111.26 million and is expected to be fulfilled within a period of 36 months.

Birlasoft: The software company has reported a consolidated net profit of Rs 180 crore for the quarter ending March FY24, which is a 60.5 percent increase compared to the same period in the previous fiscal year. This growth was driven by strong operational performance. The company's revenue from operations for the quarter rose by 11.1 percent year over year, reaching Rs 1,362.6 crore. Additionally, for FY24, the board has proposed a final dividend of Rs 4 per share.

KFin Technologies: The financial services company that uses technology has announced their consolidated net profit of Rs 74.5 crore for the quarter ending on March 31. This marks a 30.6 percent increase compared to the same period in the previous fiscal year. The company's revenue from operations for the quarter has increased by 24.7 percent YoY, reaching Rs 228.3 crore. The board has proposed a final dividend of Rs 5.75 per share for FY24.

Shoppers Stop: The company has reported a significant YoY increase in its consolidated net profit, which has reached Rs 23.2 crore for the quarter ending March 31. One of the reasons behind this growth is a strong topline and additional income. The revenue from operations for the quarter has increased by 13.3 percent YoY, totaling Rs 1,046.3 crore. In a separate development, the board has promoted Kavindra Mishra to the position of managing director and CEO of the company.

Gillette India: The personal care company has reported a net profit of Rs 99.1 crore for the quarter ending March 31, which marks a 3.5 percent decrease compared to the same period in the previous fiscal year. However, the company has demonstrated strong operational figures, and the decrease in profit is partially due to lower other income. The revenue from operations for the quarter rose nearly 10 percent YoY to Rs 680.7 crore.