Stocks in Focus on June 4: BPCL, HDFC Life to Pharma Companies; here are expected newsmakers of the day

Stocks in Focus on June 4: Domestic shares extended their winning streak to the sixth straight session on Wednesday, June 3, 2020. Global cues were supportive as hopes of more stimulus and a further easing in social restrictions around the world surpassed coronavirus fears. The barometer S&P BSE Sensex jumped 284.01 points or 0.84% at 34,109.54. The Nifty 50 index soared 82.45 points or 0.83% at 10,061.55. Both these indices rose over 11% in six trading sessions. But certain stocks came in news after the market was closed. These stocks can impact the indices when it reopens on Thursday, June 4, 2020. List of such five stocks:

BPCL/ Aurobindo pharma/ Chola Investment/ Dishman/ DCM Shriram: These are some companies that reported their financial results of March quarter FY20 after the market hours on Tuesday, June 2, 2020. Find details: 

BPCL: The state-owned refiner BPCL on Wednesday posted a quarter-on-quarter loss of Rs 1,361 crore for the quarter ended on March 31, 2020. The refiner posted a profit of Rs 1,260.6 crore in the December quarter. The second-largest fuel retailer’s net sales in the review period declined 7.7% to Rs 68,991.4 crore from Rs 74,732.8 crore posted in the previous quarter.

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Aurobindo Pharma: The drug maker’s consolidated net profit after JV share and minority interest was up by 45% year-on-year to Rs 849 crore for the quarter ended March 31, 2020, against Rs 585.4 crore during the same quarter in FY '19. Its consolidated revenue from operations grew by 16.4% to Rs 6,158.4 crore during the quarter under review against Rs 5,292.2 crore reported in the same quarter last year. EBITDA stood at Rs 1,316.2 crore, up 24.5% from Rs 1,057.5 crore posted last year. EBITDA margin stood at 21.3% against 20% of last year. The US market revenue grew by 20.5% YoY. The company has filed 17 abbreviated new drug application (ANDAs) with the USFDA, including 10 injectables in Q4FY20 and 55 ANDAs, including 19 injectables in FY20. The company has launched four products during the quarter. 

Cholamandalam Investment & Finance Company Ltd (CIFCL): The diversified financial services company on Wednesday reported an 85% decline in net profit to Rs 43 crore in the fourth quarter ended March, due to higher provision of Rs 504 crore related to the COVID-19 pandemic and the possible macroeconomic threats. The company had reported a net profit of Rs 292 crore in the corresponding period last year. Total income grew 14% to Rs 2,151 crore in March 2020 quarter as against Rs 1,885 crore posted during the previous quarter ended March 2019. The company made provisions of Rs 557 crore, up 894%, against provisions of Rs 56 crore made in March quarter of last year. Gross NPA quarter-on-quarter grew to 3.8% against 3.5%. One time provisioning of Rs 504 crore impacted profit. The company’s PAT (profit after tax) before provisions would have been around Rs418 crore. Covid-19 shutdown impacts disbursements on March 20 – Disbursements down by 36% in Q4 due to shut down and pulls down FY disbursement growth to -4%.

Dishman Carbogen Amcis: The company on Wednesday posted financial results of the quarter that ended on March 31, 2020, and reported a 5.2% year-on-year decline in consolidated profit at Rs 71.9 crore. The company posted a profit of Rs 75.8 crore in the same quarter last year. Revenue from operations declined 21.2% to Rs 512.1 crore against Rs 649.7 crore reported last year. EBITDA stood at Rs 131.9 crore, down 22.2% against Rs 169.4 crore of Q4FY19, while margin contracted to 25.8% against 26.1%.
  
DCM Shriram Limited: The company has posted the financial results for the period ended March 31, 2020, and reported a 28.9% year-on-year decline in consolidated profit at Rs 207.4 crore. Its net profit stood at Rs 292.1 crore in the same period last year. Revenue from operations grew by 1.6% to Rs 1,917.2 crore against Rs 1,887.9 crore. EBITDA declined 13.8% to Rs 343.2 crore against Rs 298.2 crore, while margin compacted to 17.9% against 21.1%.

Reliance Industries: The Rs 53,124 crore rights issue of oil-to-digital major Reliance Industries (RIL) that closed on Wednesday was subscribed 1.59 times.

Cadila/IPCA Labs: The World Health Organisation said on Wednesday that clinical trials of the drug hydroxychloroquine will resume, after having been suspended pending a safety review in the search for coronavirus (COVID-19) treatments. 

HDFC Life: Standard Life is likely to sell 2% stakes (4 crore shares) in HDFC Life through block deals today to raise Rs 2,005 crore. The shares will be sold in the price band of Rs 490-501.35 apiece. Offer size of Rs1960 crore, BOFA securities is the sole book runner. Standard Life is the UK-based joint venture partner of HDFC Life Insurance and after the selloff, it will hold about 10.25% in the private life insurer.

Sun Pharma/Zydus Cadila/ Pharma companies: NPPA, India’s drug pricing regulator, has capped the prices of 40 formulations, including statins and some other popular cardiovascular and diabetes drugs. The revised prices will have an impact on the manufacturers of these formulations, including Sun Pharma, and Zydus Healthcare.