Stocks in Focus on May 4: Auto Stocks, RIL to OMCs; here are the 5 Newsmakers of the Day
Maruti Suzuki, Escorts, Eicher Motors, TVS Motors and reliance Industries are expected to remain newsmakers throughout the intraday trade session today
Tracking positive global cues, the domestic shares extended gains for the fourth straight session on Thursday, April 30, 2020. The barometer S&P BSE Sensex gained 997.46 points or 3.05% at 33,717.62. The Nifty 50 index added 306.55 points or 3.21% at 9,859.90. But certain stocks came in news after the market was closed. These stocks can impact the indices when it reopens on Monday, May 4, 2020. List of such five stocks:
Auto Stocks in Focus: Indian automakers have reported zero local sales in April 2020 as factories and retail showrooms remained shut to comply with a stringent lockdown.
Maruti Suzuki: India’s largest car manufacturer has reported zero sales in the domestic market in April 2020. However, it exported 632 units. The company exported the units from the Mundra port while exercising all the safety and social distancing norms of the government.
Mahindra & Mahindra (M&M): M&M’s domestic sales in April stood at zero, while it exported 733 units in the month. Tractor sales (Domestic + Exports) during April 2020 declined 82.8% to 4,716 units against 27,495 units for the same period last year.
Escorts: Total tractor sales in April 2020 declined by 87.7% to 705 units from 4,986 units of the same month of the corresponding year. Export sales stood at 92 against 278, a decline of 67%. Most of the sales were recorded in the last few days of the month after the exemption of sale of Agri Machinery was announced by the Union Government on April 20, 2020. The company expects that the tractor industry will recover faster as compared to some other sectors.
Eicher Motors (VECV & RE): Total sales (VECV) in April dropped 97.9% to 85 units from 3,961 units reported in April 2019. Total sales (RE) declined by 99.9% to 91 units against 62,879 units of last year.
TVS Motor: The homegrown two and three-wheeler manufacturer has registered zero sales in the domestic market in April 2020. However, it exported 8,134 units of two-wheelers against 57,377 units of the corresponding year, a decline of 85.8%. It exported 1,506 units of three-wheelers in April 2020.
Atul Auto: Sold 23 three-wheeler automobiles in April 2020.
RIL/ HUL/ Tech Mahindra: These companies have declared their March quarter results.
Reliance Industries (RIL): RIL on Thursday reported 46.4% quarter-on-quarter (QOQ) fall in consolidated net profit at Rs 6,348 crore against Rs11,841 crore. Adjusted profit declined 11.7% to 10,615 crore from 12,018 crore. Ebitda fell 2.7% (QoQ) to Rs 21,782 crore against Rs 22,386 crore. Ebitda Margins expand to 16% from 14.63%. Gross Refining Margin stood at $8.9 per barrel versus $9.2 per barrel. Other income stood at Rs 4,133 crore against Rs 3,405 crore. The company in its release said the exceptional loss happened on account of COVID and crude prices.
Hindustan Unilever (HUL): FMCG major HUL on Thursday reported 1% year-on-year (YoY) drop in net profit at Rs 1,519 crore for March quarter, compared with Rs 1,538 crore in the same quarter last year. Revenue for the quarter fell 9% to Rs 9,011 crore from Rs 9,945 crore in the year-ago quarter. EBITDA fell 11% to Rs 2,065 crore Vs Rs 2,321. The company in its commentary said the spread of COVID 19 impacted the business from mid-March. Demand patterns are changing, and we are likely to see an upswing in categories like health, hygiene and nutrition. In the near term, we are also likely to see some adverse impact on discretionary categories and out of the home channel.
Tech Mahindra: Tech Mahindra on Thursday reported March quarter numbers and posted 29.8% year-on-year (YoY) fall in consolidated profit at Rs 804 crore against Rs 1,146 crore. Revenue declined by 1.7% to Rs 9,490 crore against Rs 9.655 crore, while dollar revenue fell by 4.3% to $129.5 crore from $135.3 crore. EBIT declined by 19.5% to Rs 949 crore against Rs 1,179 crore. The board also recommended a dividend of Rs 5 per share on the par value of Rs 5 for the financial year ended March 2020.
Coal India/ NMDC: These two companies have provided production updates of April 2020.
Coal India: State-owned Coal India Ltd (CIL) on Friday reported a 10.9% decline in production to 40.38 million tonnes in April. The company had posted a total production of 45.30 million tonnes (MT) in the corresponding month of the previous financial year.
NMDC: Reported its production declined to 1.8 MT in April 2020 from 2.9 MT reported in the corresponding month of the previous financial year.
OMCs in Focus: The price of LPG cylinders was reduced by Rs 162.50 a unit. In Delhi, the price of a 14.2 kg non-subsidised LPG (liquified petroleum gas) cylinder has been reduced from Rs 744 to Rs 581.50 with effect from May 1, 2020. Oil marketing companies have enforced similar rate cuts in other parts of the country.
Bajaj Hindustan: The company has defaulted on payment of interest/ repayment of the principal amount for loans including revolving facilities like cash credit from banks / financial institutions on March 31, 2020. It defaults Rs 93.82 crores of repayment of the principal amount for loans and Rs 17.7 crore of payment of interest. Bank Exposure of the company:
See Zee Business Live TV Streaming Below:
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.