Stocks in Focus on May 14: Godrej Consumers, RIL to Maruti Suzuki; here are the 5 Newsmakers of the Day
Godrej Consumer, Siemens, ABB India, Reliance Industries and Maruti Suzuki stocks are expected to remain newsmakers throughout the intraday trade session today
Key equity indices ended with strong gains on Wednesday, May 13, 2020, as PM Modi's Rs 20 lakh crore economic stimulus package boosted investor sentiment. Gains in banks and auto stocks pushed the indices higher. The barometer S&P BSE Sensex jumped 637.49 points or 2.03% at 32,008.61. The Nifty 50 index gained 187 points or 2.03% at 9,383.55. But certain stocks came in news after the market was closed. These stocks can impact the indices when it reopens on Thursday, May 14, 2020. List of such five stocks:
Godrej Consumer/ Siemens/ ABB India: These are major companies that released their March quarter numbers on Wednesday after the market was closed for trading purposes.
Godrej Consumer: FMCG major Godrej Consumer Products Ltd (GCPL) on Wednesday reported an over 75% Year-on-Year (YoY) drop in its consolidated net profit at Rs229.90 crore in Q4FY20. The company had posted a net profit of Rs 935.24 crore in the January-March quarter a year ago. Its revenue from operations was down 12.22% to Rs 2,153.8 during the quarter under review as against Rs 2,452.58 crore in the corresponding period of the last fiscal. EBITDA was 17% down to Rs 476.54 crore in Q4FY20 against Rs 577.92 crore a year ago. Margin fell to 22% against 23.5% reported a year ago.
Siemens: SIEMENS Ltd on Wednesday posted financial results for the period ended March 31, 2020, and reported a 38% year-on-year (YoY) decline in net profit at Rs 175.7 crore against Rs 284.2 crore reported in the corresponding quarter last year. Revenue from operations stood at Rs 2,837.9 crore, down 20.7%, against Rs 3,577.8 crore of last year. EBITDA for Q4FY20 stood at Rs 319.5 crore, down 35.9%, against Rs 498.8 crore, while the margin declined to 11.3% from 13.9% a year ago.
ABB India: ABB India Limited has posted financial results for the period ended March 31, 2020, and reported a 25.8% Year-on-Year (YoY) decline in net profit at Rs 66 crore Q4FY20 against Rs 89 crore reported in the corresponding quarter last year. Revenue from operations stood at Rs 1,522.2 crore, down 17,7%, from Rs 1850.25 crore reported last year. EBITDA was 63.1% down to Rs 60.8 crore from Rs 164.6 crore reported last year. Margin contracted to 4% from 8.9%.
Reliance Industries Ltd (RIL): Today is the record date for India’s biggest rights issue of Rs 53,125 crore. This is Mukesh Ambani-led RIL's first such issue in nearly three decades. RIL, which had on April 30 announced its fundraising plan of Rs 53,125 crore through a 1:15 rights issue, will offer shares at Rs 1,257, a 14% discount to the stock's closing price on April 30 of Rs 1,467.05.
Maruti Suzuki India (MSIL): The country’s largest carmaker Maruti on Wednesday decided to acquire Delhi-based JJ Impex. In a filing to the BSE, the company said the board has approved acquiring 39.13 per cent equity stake held by Sumitomo Corporation, Japan and 10 per cent held by Sumitomo Corporation India Pvt Ltd in JJ Impex (Delhi) Pvt Ltd, a company engaged in automobile service and repair business. The cost of acquisition is fixed at Rs 21.73 crore. Besides, the automaker has reduced capital expenditure (CapEx) by 16% for the second year in a row in FY21. The board of directors of the company approved CapEx of Rs 2,700 crore for FY21. This is after spending 18% less in FY-20 at Rs 3,248 crore as against the guided CapEx of Rs 4,000 crore at the beginning of the last financial year.
PFC/ REC/ NTPC + Real Estate in focus: The government on Wednesday announced a Rs 90,000 crore liquidity injection into fund-starved electricity distribution companies (Discoms) as part of a stimulus package to revive the country’s battered economy. State-owned Power Finance Corp. (PFC) and Rural Electrification Corp. (REC) will infuse the liquidity by raising Rs 90,000 crore from the markets against the receivables of Discoms. Besides, real estate sector will also be in focus as the government yesterday said that all real estate projects registered under the Real Estate Regulatory Authority (RERA) expiring on or after March 25 will get a six-month extension as the lockdown to contain the COVID-19 pandemic stalled work.
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Sequent Scientific: TIMF Holdings and BNP Paribas Arbitrage offloaded their stakes in Sequent Scientific on Wednesday. TIMF Holdings offloaded 25.3 lakh (1%) shares of Sequent at Rs 80 per share. BNP Paribas also offloaded 34.7 lakh shares at the same price of Rs 80 per share.
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