Stocks in Focus on April 20: ACC, L&T Infotech, NBFCs, Telecom Stocks, Fortis Healthcare and many more

The Indian stock markets declined for the fifth session in a row on Tuesday, April 19, 2022, amid weak cues from global share markets. The barometer index, S&P BSE Sensex tumbled 703.59 points or 1.23% at 56,463.15. The Nifty 50 index declined 215 points or 1.25% at 16,958.65. But certain stocks came in the news after the market was closed. These stocks can impact the indices when it reopens on Wednesday, April 20, 2022. List of such Stocks:

Q4FY22 Result + OFS Update

ACC: One of the largest producers of cement in India ACC limited has reported a 29.7% YoY decline in the standalone net profit at Rs 391.8 crore for the quarter ended March 31, 2022. It had posted a profit of Rs 557.4 crore in the corresponding quarter of the previous financial year. Revenue from operations on a standalone basis grew 3.1% YoY to Rs 4,426 crore in the reported quarter as compared to Rs 4,291.9 crore posted last year. EBITDA fell 26.3% YoY to Rs 633.7 crore compared to Rs 859.4 crore posted last year. The margin dropped to 14.3% in Q4FY22 against 20% posted in Q4FY21. Highlights

Realisation/Ton 5112 vs 4876 up 4.9%
Volume (mn Ton) 7.7 vs 8 down 3.8%                    

Larsen & Toubro Infotech: L&T's Technology consulting and digital solutions division on Tuesday reported a 4.1% QoQ rise in the consolidated profit at Rs 637 crore for the quarter ended March 31, 2022. It had posted a profit of Rs 612 crore in the previous quarter ended December 31, 2022. Revenue from operations grew 4% QoQ to Rs 4,302 crore as compared to Rs 4,137 crore posted in the previous quarter. In dollar terms, the revenue grew 3.1% to $57 crore as compared to $55.3 crore posted in December 2021 quarter. EBIT stood at Rs 745 crore, up 0.4% QoQ compared to Rs 742 crore posted in December 2021 quarter. Margin dropped marginally to 17.3% in Q4FY22 as against 17.9% posted in Q3FY22. Constant Currency revenue grew by 3.6%. Besides, the Board of the Company has recommended a final dividend of Rs 30 per equity share (Face value of Re 1) for the financial year 2021-22. The company's attrition level stood at 24% in the reported quarter against 22.5% in the previous quarter. The IT firm's other income increased by Rs 34 crore. The company in a statement said, the year has seen the highest new client openings and net headcount additions and the deal pipeline continues to be robust.

Tata Steel Long Products: The manufacturer of high alloy steel, primarily for the auto sector and wire rope industry, has reported an 82.4% YoY decline in net profit at Rs 60 crore for the quarter ended March 31, 2022. It had posted a profit of Rs 340 crore in the corresponding quarter of the previous financial year. Revenue from operations grew 16.3% YoY to Rs 1,799 crore in the reported quarter as against Rs 1,547 crore posted last year. EBITDA stood at Rs 164 crore, down 67% YoY from Rs 498 crore posted last year. The margin dropped to 9% in Q4FY22 from 32% reported in Q4FY21. Besides, the Board of Directors of the company has recommended a dividend of Rs 12.5 per share for the financial year ended March 31, 2022.

See Zee Business Live TV Streaming Below:

Mastek: The IT firm has reported a 9% QoQ rise in the consolidated profit at Rs 79.9 crore for the quarter ended March 31, 2022. It had posted a profit of Rs 73.64 crore in the previous quarter ended December 2021. Revenue from operations grew 5.4% QoQ to Rs 581.53 crore compared to Rs 551.91 crore posted in the previous quarter. EBIT grew 3% to Rs 108.53 crore against Rs 105.68 crore posted in December 2021 quarter. Margin fell to 18.66% in Q4FY22 against 19.15% posted in Q3FY22. Besides, the board has declared a dividend of Rs 12 per share for the financial year ended March 31, 2022.

INEOS Styrolution India OFS Update: The non-retail investors' portion of the offer for sale (OFS) was subscribed to 95.42% on the first day of the opening. The OFS has a base offer of 25,32,330 equity shares having a face value of Rs 10 each or 14.40% stakes of INEOS Styrolution. It has also kept an option to additionally sell 16,88,220 equity shares (9.60% stake) via the OFS. The floor price for the Sale shall be Rs 800 per Equity Share. Today is the second and last day for bidding for the issue. 

Stocks in News

NBFCs: The Reserve Bank of India (RBI) on Tuesday revised the Regulatory Framework for non-banking finance companies (NBFCs) which mandates exposure limits for the non-banking finance companies. In the large exposure framework, the regulator has capped aggregate exposure of NBFCs which are in the upper layer toward one entity at 20% of the capital base. The limit can only be extended by another 5% with the board’s approval. For a particular borrower group, the cap is at 25%, with an additional 10% if exposure is towards infrastructure. Besides, the RBI has also tightened norms for (NBFCs) and barred them from lending to businesses that their senior executives and directors are interested in. The new restrictions on the lending state that, unless sanctioned by the board, mid-layer and upper layer NBFCs shall not lend more than Rs 5 crore to directors, CEO or relatives of directors. They also cannot lend to any firm in which any of their directors or their relatives are interested as a partner, manager, employee or guarantor.

Telecom Stocks: Telecom stocks will be in focus today as the February subscriber data released by Telecom Regulatory Authority of India (Trai) on Tuesday said that the market leader Reliance Jio has lost 36.6 lakh users in February while Vodafone Idea shed another 15.3 lakh users in the month. However, Bharti Airtel has added 15.9 lakh users in the reported month. 

Escorts: Escorts Agri Machinery (EAM), a division of Escorts Limited, shall be increasing the prices of its tractors effective April 20, 2022 There has been a steady rise in commodity prices necessitating a price hike to offset the impact of the continuing inflation. The increase in prices would vary across models and variants.

Indian Hotels: The largest hospitality company on Tuesday announced the signing of an agreement to set up a new Taj Hotel in Chennai. The proposed Taj Hotel will come upon over 3.5 acres of land and would house four restaurants and a bar, besides 235 rooms and 123 Taj branded residences. This would be the fourth hotel of Taj in Chennai. 

Fortis Healthcare: Markets regulator SEBI on Tuesday imposed penalties totalling Rs 24 crore on nine entities, including businessmen Malvinder Mohan Singh and Shivinder Mohan Singh, in connection with violations in the Fortis Healthcare matter. Passing a 109-page final order, the watchdog has slapped a fine of Rs 5 crore each on the two Singh brothers besides Rs 2.5 crore on RHC Holding Pvt Ltd. A penalty of Rs 1 crore has been imposed on Fortis Healthcare and Rs 50 lakh on Fortis Hospitals. Others who have been penalised are Malav Holdings Pvt Ltd (Rs 2.5 crore), Shivi Holdings Pvt Ltd (Rs 2.5 crore), and Gagandeep Singh Bedi (Rs 2.5 crore) and Bhavdeep Singh (Rs 2.5 crore). In addition, the regulator has also barred the Singh brothers from the securities market for three years.

Mahindra Lifespace: Mahindra World City Developers Limited (MWCDL), a subsidiary of the Company and an 89:11 joint venture between the Company and Tamil Nadu Industrial Development Corporation Ltd (TIDCO) (a Government of Tamil Nadu Enterprise) have received notices under the Income Tax Act, 1961 (“Act”) for an aggregate sum of Rs. 102 crore. 

Asian Granito: High Court of Gujarat has quashed the Department of Revenue Intelligence (DRI) show-cause notices issued to the Company with respect to the alleged evasion of customs duty, against which the Company had deposited Rs 3.50 Crores under protest. Accordingly, the Company shall be applying for the refund of the duty, deposited under protest. 

Insecticides India: This is to inform you that the Patent Office has granted the Patent for an invention entitled Novel Granules And its Pesticidal Compositions for the term of 20 years from July 11, 2019 (date of filing).

VRL Logistics: The Company has signed a Memorandum of Understanding (MoU) with Ratna Cements (Yadwad) Limited (RCL) for the transfer of the Wind Power (Sale of Power) undertaking along with all underlying assets and liabilities as a going concern on a slump sale basis. The total consideration for the said Slump Sale is Rs 48 crore. Windmill division recorded revenue of Rs 17.57 crore (0.99% of the standalone revenue of the company, with an EBIT of Rs 80.83 Lakhs). 

BULK DEALS  

Eveready Industries: Rajasthan global securities bought 4 lakh shares at Rs 319.89 per share.
HBL power systems: Banyantree growth capital sells 2.55% stakes or 70 lakhs shares. After selling, a pending stake of 5.90%.
Ansal Housing: HDFC sells 5.74 lakh shares at Rs 8.47 per share.