Stocks to Focus: Hindalco, Nykaa, NBCC, Hero MotoCorp, Voltas, IRCTC, GMR Airports Infra
The domestic stock market indices BSE Sensex and NSE Nifty50 are expected to open positively on Wednesday, August 14, 2024, following positive global indicators. At 7:50 AM, GIFT Nifty futures were trading more than 45 points higher at 24,206 levels. In Asia, Japan's Nikkei rose by 1.07 percent, the Asia Dow went up by 1.07 percent, and South Korea's Kospi increased by 0.96 percent. However, the Shanghai Composite was down by 0.35 percent, and Hong Kong's Hang Seng declined by 0.25 percent on Wednesday morning.
Hindalco Industries: The company expects high demand for its main copper and aluminum products within the domestic market, despite falling short of market expectations in the first quarter. The consolidated net profit for the fiscal first quarter increased by 25.26% year-on-year to Rs 3,074 crore, while revenue from operations grew by 7.59% to Rs 57,013 crore. The company is keen on acquiring state-run Hindustan Copper Ltd’s mines in Jharkhand and also intends to establish a copper foil plant for lithium-ion batteries.
FSN E-Commerce Ventures: Nykaa reported a net profit of Rs 13.6 crore in the quarter ended June 30, 2024, which is a 152% increase from the Rs 5.4 crore recorded in the same period last year. The company also reported an operating revenue of Rs 1,746 crore, marking a 23% increase from Rs 1,422 crore in the corresponding period of last year.
NBCC: The state-owned company reported a 38% surge in its consolidated net profit, reaching Rs 107.19 crore for the quarter ended June 2024 (Q1FY25), compared to Rs 77.41 crore in the same period last year. The company’s total income grew to Rs 2,197.83 crore in the April-June quarter of this fiscal year, up from Rs 1,974.03 crore in the corresponding quarter of the previous year.
Hero MotoCorp: The company announced a standalone net profit of Rs 1,123 crore for the quarter ending June 30, 2024, a 36% increase from the Rs 825 crore reported in the same period last year. The company’s revenue from operations for the quarter was Rs 10,144 crore, up 16% from Rs 8,767 crore in the corresponding quarter of the previous fiscal year.
Voltas, Life Insurance Corporation of India: LIC has reduced its equity stake in Voltas from 22,685,279 shares to 15,731,283 shares, decreasing from 6.856% of the company’s paid-up capital to 4.754%—a drop of 2.102%. The stake reduction occurred between June 12, 2024, and August 12, 2024. The transaction was carried out as an open market purchase at an average cost of Rs 1,502.931 per share in Voltas.
Indian Railway Catering and Tourism Corporation: IRCTC reported a 32.51% increase in net profit to Rs 307.71 crore in the April to June quarter of the financial year 2024-25, up from Rs 232.21 crore in the same quarter of the previous year. The company’s revenue from operations also increased by 11.81% to Rs 1,120.15 crore for the April to June quarter of the financial year 2024-25, compared to Rs 1,001.78 crore in the same quarter of the previous year.
Apollo Hospitals Enterprise: The healthcare services company reported an 83% increase in consolidated net profit to Rs 305 crore for the first quarter of the financial year 2024-2025. The company's revenue from operations rose by 15% to Rs 5,086 crore in the quarter under review, up from Rs 4,418 crore in the previous fiscal year.
Nazara Technologies: In the quarter ending June 30, 2024, the gaming and sports media company posted a net profit of Rs 23.6 crore, marking a 12.9% increase from the Rs 20.9 crore profit in the same quarter last year. Although revenue from operations dropped slightly to Rs 250 crore, it was a 1.7% decrease from the Rs 254.4 crore reported in the corresponding quarter the previous year.
Piramal Enterprises: The company's net profit for the June quarter declined by 64% to Rs 181 crore. This decline was due to a higher base last year caused by a one-off item. However, the core net interest income grew by 18% to Rs 807 crore, driven by a 10% increase in the overall assets under management to Rs 70,576 crore.
SpiceJet: The airline is set to declare its Q1FY25 results on August 14, 2024, marking a return to timely reporting after a year of delays. Despite facing operational challenges and financial issues, SpiceJet managed to report a profit of Rs 197.64 crore in Q1FY24, although it closed FY24 with a loss of Rs 409 crore. The airline is now focusing on resolving its ongoing crisis and raising Rs 3,000 crore to stay afloat.
EaseMyTrip Planners: The travel booking platform reported a 31% increase in its consolidated profit after tax to Rs 33.93 crore in the June 2024 quarter. The company's total income increased to Rs 156.22 crore in the April-June period, up from Rs 126.64 crore a year ago.
Emcure Pharmaceuticals: The company recorded an 8.2% year-over-year increase in consolidated Q1 net profit to Rs 152.6 crore from Rs 141 crore in the previous year. Additionally, the revenue grew by 16.6% year-over-year to Rs 1,815.1 crore from Rs 1,556.2 crore.
Muthoot Finance: The company's standalone Q1 net profit increased by 10.6% YoY to Rs 1,078.7 crore from Rs 975.1 crore in the previous year, while its revenue grew by 21.6% to Rs 2,352.7 crore from Rs 1,934.9 crore in the corresponding quarter of the previous year.
PTC India: The power trading solutions provider reported a 33% increase in its consolidated net profit to Rs 189 crore in the June quarter, mainly due to lower expenses. The company’s total expenses decreased to Rs 4,486.14 crore in the quarter from Rs 4,603.93 crore a year ago. The earnings per share (EPS) of the company rose to Rs 5.87 in Q1FY25 compared to Rs 4.39 in Q1FY24.
GMR Airports Infrastructure: The company recorded a net loss of Rs 258.2 crore in the first quarter ending on June 30. Revenue from operations rose by 19.06% to Rs 2,402.20 crore compared to Rs 2,017.63 crore in the same period of the previous fiscal year.
Mahindra and Mahindra: The company recorded a 2.1% year-on-year increase in total sales for July, reaching 64,929 units. However, production decreased by 1.2% to 69,138 units, and exports plunged by 40.4% to 1,515 units.
SJVN: In the first quarter, the company's consolidated net profit increased by 31.4% to Rs 357.1 crore from Rs 271.8 crore in the previous year. Revenue also saw a 29% growth, reaching Rs 870.4 crore from Rs 674.8 crore. The board approved the monetization of partial future revenue/return on equity of the Nathpa Jhakri Hydro Power Station (NJHPS) through securitization. Additionally, the board granted principle approval for the dilution of stake in its subsidiary, SJVN Green Energy.
Manappuram Finance: The gold-loan provider reported a 12% jump in first-quarter consolidated net profit at Rs 555 crore, helped by strong gold-loan growth. The company’s gold loan and other businesses rose 23.5% to Rs 1,737 crore, while its microfinance arm posted a near 18% revenue growth to Rs 775 crore.
Bajaj Finance: India's biggest non-banking finance company, ranked by market value, is making plans to borrow up to $500 million from overseas. The company is currently in negotiations with a group of at least four foreign banks to finalize the terms of the loan facility. The duration of the debt could be anywhere between three to five years, and the interest rates will be tied to the Secured Overnight Financing Rate, which is a widely used benchmark for transactions in Asia. These funds will be raised through the Reserve Bank of India's external commercial borrowing route, which sets a maximum interest rate of 500 basis points above the benchmark rate.
State Bank of India: The country’s largest lender aims to strike a deal by end-March for the sale of its 24% stake worth Rs 18,420 crore or $2.2 billion currently in smaller rival Yes Bank. Japanese lender Sumitomo Mitsui Banking Corp and Dubai-based Emirates NBD are in advanced talks to acquire a majority stake in Yes Bank.
Vedanta: The mining and natural resources company has announced an offer for sale (OFS) to offload a 2.6% shareholding of Hindustan Zinc, representing 11 crore shares. This comes after Hindustan Zinc recently reported its first profit growth after six consecutive quarters of decline, riding on higher prices and growing demand.
Honasa Consumer: The parent company of Mamaearth is expected to experience slow growth in the second quarter of fiscal year 2025 as it transitions from a super stockist to a direct-to-customer (D2C) company. This transition will require inventory correction. The company's CFO, Ramanpreet Sohi, mentioned that this accelerated transition in Q2 will have an impact of 150 to 200 basis points on the company's annual growth.
LTIMindtree: The IT services major has received an order from the Department of Goods and Service Tax (GST) - Office of the Deputy Commissioner of State Tax in Mumbai to pay Rs 62.4 crore. This follows the denial of zero-rated supply provision. The company has deemed this order unjustified and will take appropriate legal action against it in consultation with its advisors.
Tata Motors: Tata Motors-owned Jaguar Land Rover announced the commencement of the locally-produced Range Rover Sport in the domestic market. With this, the complete Range Rover portfolio is now made-in-India.
