Stocks in Focus on June 18: IGL, Muthoot Finance, to Telecom Companies; here are the 5 Newsmakers of the Day

Key domestic benchmarks ended the volatile session with modest losses on Wednesday, June 17, 2020. The barometer S&P BSE Sensex declined 97.30 points or 0.29% at 33,507.92. The Nifty 50 index fell 32.85 points or 0.33% at 9,881.15. But certain stocks came in news after the market was closed. These stocks can impact the indices when it reopens on Thursday, June 18, 2020. List of such five stocks:

IGL/ Muthoot Finance/ REC/ Cummins India/ Pidilite/ JK Cement/ FDC/ Gulf Oil/ Thirumalai: They are the companies that reported their financial results of the fourth quarter of the financial year 2019-20 (FY20) after the market hours on Wednesday, June 17, 2020. Find details:

Indraprastha Gas Ltd (IGL): The largest CNG distribution company of the country, IGL on Wednesday reported a 10.7% quarter-on-quarter decline in consolidated profit to Rs 253.4 crore in March quarter. It posted a net profit of Rs 283.9 crore in the December quarter. Net sales were down 6.7% to Rs 1,552.5 crore from Rs 1,664.2 crore. EBITDA stood at Rs 376.7 crore, down 3.9% from Rs 391.8 crore posted in last quarter.

Muthoot Finance: The company on Wednesday announced the financial results for the quarter that ended on March 31 2020, and reported a 59% year-on-year rise in profits at Rs 815 crore. It posted a net profit of Rs 512 crore in the corresponding quarter of last fiscal. Net Interest Income (NII) grew 24.6% to Rs 1,580.6 crore against Rs 1,269 crore posted last year. Gross NPA stood at 2.16% against 2.5% of last quarter. 

REC Ltd: State-run non-banking lender REC on Wednesday posted a 65% year-on-year drop in its net standalone profit to Rs 435.7 crore in the January-March quarter. Its net profit was Rs 1,256 crore in the corresponding quarter a year ago. Net Interest Income (NII) grew 17.7% to Rs 2,813 crore against Rs 2,389 crore posted last year. It faced a net translation/transaction exchange loss of Rs 1,333 crore.
Cummins India: Announced its financial results for the quarter ended on March 31, 2020, on Wednesday and reported a 16% year-on-year decline in standalone profits at Rs 118.3 crore as compared to the same quarter last year. The company has reported a profit of Rs 141 crore in the quarter ended on March 31, 2019. Revenue from operations declined 21.4% to Rs 1,052.8 crore when compared to Rs 1,340 crore posted last year. EBITDA stood at Rs 66.7 crore, down 61% from Rs 172 crore. Margins contracted to 6.3% in Q4FY20 from 12.8% in Q4FY19.

 Pidilite Industries: The company on Wednesday announced its financial results for March quarter and reported a 34% year-on-year decline in its consolidated net profit to Rs 156.51 crore. It had posted a net profit of Rs 237 crore for the January-March period of 2018-19. Its revenue from operations declined 5.7% to Rs 1,545 crore from Rs 1,639 crore posted last year. EBITDA stood at Rs 301 crore, up 7.9% from Rs 279 crore posted last year. The margin grew to 19.5% against 17%. 

JK Cement: JK Cement on Wednesday announced the financial results of March quarter of Fiscal 2019-20 (FY20) and reported a 17.8% year-on-year growth in consolidated profit at Rs 169.8 crore. It posted a net profit of Rs 136.5 crore in the same quarter last fiscal. Its sales were down by 1.2% to Rs 1,545.7 crore against Rs 1,564.6 crore posted last year. EBITDA stood at Rs 352.1 crore, up 22.6% from Rs 287.1 crore of last year. The margin grew to 22.8% from 18.6%. Besides, the company’s board has declared an interim dividend of Rs 2.8 per equity share.

FDC Ltd: FDC LTD. on Wednesday posted the financial results for the period ended March 31, 2020, and reported a 59% year-on-year rise in consolidated profit at Rs 55.5 crore. It posted a net profit of Rs 34.9 crore in the corresponding quarter last year. Sales grew 23.3% to Rs 333 crore against Rs 270 crore posted last year. EBITDA stood at Rs 29.2 crore, down 32.3% from Rs 43.1 crore, while margin contracted to 8.7% against 15.6% posted in Q4FY19. 

Gulf Oil Lubricants India Ltd: Gulf Oil on Wednesday posted the financial results for the period ended March 31, 2020, and reported a 25% year-on-year decline in consolidated profit at Rs 36 crore. It posted a net profit of Rs 48 crore in the same quarter last year. Sales dropped 17.5% to Rs 359 crore from Rs 436 crore posted last year. EBITDA stood at Rs 55 crore, down 26% from Rs 74 crore, while margin grew 19% against 12.04%. Besides, the board has recommended an interim dividend of Rs 7 per equity share. 
Thirumalai Chemicals: Thirumalai Chemicals on Wednesday posted the financial results for the period ended March 31, 2020, and reported a 86% year-on-year decline in consolidated profit at Rs 2.4 crore. It posted a net profit of Rs 17.7 crore in the same quarter last fiscal year. Sales dropped 10.9% to Rs 281.4 crore from Rs 315.7 crore. EBITDA stood at Rs 11.4 crore, down 69% from Rs 37 crore, while margin contracted to 4.1% from 11.7%. 

Housing Finance Companies in Focus: The Reserve Bank of India (RBI) on Wednesday proposed to increase the minimum Net Owned Fund size of Housing Finance Companies (HFCs). It proposes to tighten the rules governing home financiers, including putting restrictions on lending to builders and doubling the minimum net owned funds criterion. It wants to categorize big housing finance companies (HFCs) as systematically important institutions. Those with an asset size of Rs 500 crore and above will be tagged as systemically important ones and those below this threshold as non-systemically important HFCs. This is among the proposed changes the central bank wants to bring in HFC regulations. It also proposed to have an inclusive definition of the terms ''providing finance for housing'' or ''housing finance'' as per provisions of the RBI''s master circular on housing finance addressed to banks and NHB''s an illustrative list of housing loans.

Chemical Companies in focus: Government is considering a proposal to impose anti-dumping duty on import of cheap chemical and dye from China. GNFC has petitioned to impose a duty on import of chemicals that are used in manufacturing dye, explosives, plastic and rubber. 

Telecom Companies in Focus: The Telecom Ministry has ordered BSNL, MTNL and other private companies to ban all Chinese deals and equipment. Old tenders will be cancelled and China won't be allowed to participate in new tenders. Besides, the Supreme Court is scheduled to hear the telecom adjusted revenue (AGR) case today and the market will be keenly watching the repayment timeline decision. At the last hearing, the apex court had asked the telcos to provide a roadmap on how it plans to pay up its dues.

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Public Sector Banks in Focus: The finance ministry on Wednesday asked state-owned banks to cut avoidable expenditure, including the purchase of staff cars, spending on decorative items and refurbishment of guest houses, to ensure more productive utilization of financial resources amid the COVID-19 pandemic. It says that the publicity costs should be curtailed by making effective use of social media and press releases.