Stocks in Focus on April 22: HCL Technologies, LTTS, TVS Motor, NBFCs, MEP Infrastructure and many more

Domestic headline indices ended with robust gains on Thursday, April 21, 2022, rising for the second trading session. Positive global cues boosted sentiment. The barometer index, S&P BSE Sensex rallied 874.18 points or 1.53% at 57,911.68. The Nifty 50 index advanced 256.05 points or 1.49% at 17,392.60. The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, dropped 4.39% to 17.85. But certain stocks came in the news after the market was closed. These stocks can impact the indices when it reopens on Friday, April 22, 2022. List of such Stocks:

Q4FY22 Result 

HCL Technologies: The IT services provider on Thursday reported a 4.4% QoQ rise in the consolidated profit at Rs 3,593 crore for the quarter ended March 31, 2022, as compared to a profit of Rs 3,442 crore posted in the previous quarter ended December 31, 2021. Revenue from operations grew 1.2% QoQ to Rs 22,597 crore as compared to Rs 22,331 crore posted in December 2021 quarter. In dollar terms, the revenue grew 0.5% to $299.3 crore as compared to $297.7 crore posted in the previous quarter. EBIT declined 3.4% to Rs 4,112 crore compared to Rs 4,257 crore posted in the previous quarter. Margin dropped to 18.2% in Q4FY22 against 19.1% posted in Q3FY22. The current tax has been reduced by Rs 270 crore and other income has gone up by Rs 62 crore. Besides, HCL Technologies has declared an interim dividend of Rs 18 per equity share of Rs 2 each with a record date of April 29, 2022. The said dividend will be paid on May 11, 2022. Other Highlights:

- CC revenue growth of 1.1% (1.5% est) 

- FY23 Revenue Guidance: 12-14% CC (as per est) 

- FY23 Margin Guidance: 18-20% (as per est) 

- Attrition: 21.9% vs 19.8% (QoQ) 

- Product & platform business fell by 24% CC (QoQ)  

- TCV of New Deal wins at US$ 2,260 million for Q4, registering 6% QoQ growth 

- 10 Net New deal wins in Q4 

- Growth momentum led by Telecom, Media, Publishing & Entertainment (20.2%), Lifesciences & Healthcare (18.5%), Manufacturing (16.6%), Technology & Services (14.3%), and Financial Services (10.2%). 

- Geography growth is powered by Europe (13.6%), Americas (13.0%) and ROW (15.0%) 

LTTS: Engineering Services Company L&T Technology Services (LTTS) on Thursday declared a 5.2% QoQ rise in the consolidated profit at Rs 262 crore for the quarter ended March 31, 2022, as compared to a profit of Rs 249 crore posted in the previous quarter ended December 31, 2022. Revenue from operations grew 4.1% QoQ to Rs 1,756 crore as compared to Rs 1,687 crore posted in the previous quarter. In dollar terms, the revenue grew 3.1% QoQ to $23.3 crore as compared to $22.51 crore posted in the December 2021 quarter. EBIT grew 4.5% QoQ to Rs 328 crore compared to Rs 314 crore posted in the previous quarter. The margin remained almost flat as it stood at 18.7% in Q4FY22 as against 18.6% posted in Q3FY22. Besides, the board also recommended a dividend of Rs 15 per share. Other Highlights: 

- CC revenue growth: 3.6% (4.5% est) 

- Attrition: 20.4% vs 17.5% 

- In FY22 – a dollar revenue growth of 20% in constant currency, record-high operating margins, and a more than three-fold increase in patents filed by our engineers. 

- Board has approved the scheme of amalgamation of the following wholly-owned subsidiaries of LTTS with the Company: 1. Esencia Technologies India Private Limited (Esencia) 2. Graphene Semiconductor Services Private Limited (Graphene) 3. Seastar Labs Private Limited (Seastar).

ICICI Lombard: ICICI Lombard General Insurance has reported a 9.6% YoY drop in its net profit at Rs 312.5 crore for the quarter ended March 2022 as compared to Rs 345.7 crore posted a year ago due to higher expenses even as claims paid fell versus December 2021. Net premium earned in the quarter grew 26.8% YoY to Rs 3,317.8 crore as compared to Rs 2,616.22 crore posted last year. The claim ratio increased to 72% in the reported quarter compared to 71.7% last year. The expenses ratio stood at 31.5% in Q4FY22 compared to 29.8% posted in Q4FY21. The combined ratio was 103.2 in March 2022 quarter compared to 101.8% in March 2021 quarter. The solvency ratio stood at 2.46X against 2.9 X. The company has proposed a final dividend of Rs 5 per share for FY22.

Tata Communication: The telecommunications company on Thursday reported a 7.6% QoQ decline in the consolidated profit at Rs 365 crore for the quarter ended March 31, 2022, as compared to Rs 395 crore posted in the previous quarter ended December 31, 2022. Revenue from the operations grew 1.9% QoQ to Rs 4,263 crore compared to Rs 4,185 crore posted in the previous quarter. EBITDA fell 3.3% QoQ to Rs 1,046 crore compared to Rs 1,082 crore posted in December 2021 quarter. The EBITDA margin also fell to 24.5% in Q4FY22 from 25.9% posted in Q3FY22. Other income shot up from Rs 19 crore to Rs 263 crore. The company has reported an exceptional loss of Rs 21 crore. 

CRISIL: The company providing ratings, research, and risk and policy advisory services have reported a 45% YoY rise in the consolidated profit at Rs 122 crore for the quarter ended March 31, 2022, as compared to Rs 84 crore posted in the corresponding quarter of the previous financial year. Consolidated revenue from operations grew 20% YoY to Rs 595 crore compared to Rs 495 crore posted last year. EBITDA grew 38% YoY to Rs 176 crore compared to Rs 127 crore posted last year. The margin grew to 30% in Q4FY22 from 26% posted in Q4FY21. Besides, the Board of Directors of the Company has approved the payment of an Interim dividend of Rs 7 per equity share of the face value of Re 1 each, for the financial year ending December 31, 2022, which will be paid on May 19, 2022.

Rallis India: The chemicals company has reported a consolidated loss of Rs 14 crore for the quarter ended March 31, 2022, compared to Rs 8 crore posted in the corresponding quarter of the previous financial year. Revenue from operations on the consolidated basis grew 8% YoY to Rs 507 crore compared to Rs 471 crore posted last year. It posted a negative EBITDA of Rs 3 crore against a positive EBITDA of Rs 18 crore. Besides, the Board has recommended a dividend of Rs 3 per share. 

Cyient: Technology solutions player Cyient has reported a 17% QoQ rise in the consolidated profit at Rs 154 crore for the quarter ended March 31, 2022, as compared to Rs 132 crore posted in the previous quarter ended December 31, 2022. Revenue from operations was almost flat and stood at Rs 1,181 crore in the reported quarter as compared to a revenue of Rs 1,183 crore posted in the previous quarter. The EBIT grew 4% to Rs 169 crore as against Rs 163 crore posted in December 2021 quarter. The margin grew to 14.4% in Q4FY22 as against 13.80% posted in Q3FY22. Besides, the board of directors of the company have declared a final dividend of Rs 14 per equity share. 

Sasken Technologies: The Telecommunications company has reported a 10% QoQ decline in the consolidated profit at Rs 27 crore for the quarter ended March 31, 2022, as compared to Rs 30 crore posted in the previous quarter ended December 31, 2022. Revenue from operations grew 3% QoQ to Rs 109 crore in the reported quarter as compared to Rs 106 crore posted in the previous quarter. The EBIT fell 2% to Rs 29 crore as against Rs 30 crore posted in December 2021 quarter. Margin declined to 27% in Q4FY22 as against 28% posted in Q3FY22. Besides, the board of directors of the company have declared a final dividend of Rs 13 per equity share/ 

Stocks in News

TVS Motor Company: The two-wheeler and three-wheeler company has announced an additional investment of £100 million in Norton Motorcycles, which was acquired in April 2020. Norton Motorcycles is Britain's most iconic sporting motorcycle brand. This investment will be towards electrification, cutting edge technology, world-class vehicles, manufacturing, sustainability & the future of mobility. The investments, spread over the next few years, will result in an exciting range of products for the global market. 

Auto Companies: Road Transport and Highways Minister Nitin Gadkari had said that the government can ask companies to take back defective EVs. He added, that if any company is found negligent in their processes, a heavy penalty will be imposed and a recall of all defective vehicles will also be ordered.

NBFCs: The Reserve Bank of India (RBI) has issued Master Direction for the issuance of credit cards and debit cards for the Non-Banking Financial Companies (NBFCs). NBFCs registered with the Reserve Bank shall not undertake credit card business without prior approval of the Reserve Bank. Any company including a non-deposit taking company intending to engage in this activity shall require a Certificate of Registration, apart from specific permission to enter into this business, the pre-requisite for which is a minimum net owned fund of Rs 100 crore. Without obtaining prior approval from the Reserve Bank, NBFCs shall not issue debit cards, credit cards, charge cards, or similar products virtually or physically. RRBs are permitted to issue credit cards in collaboration with their sponsor bank or other banks.

Railtel Corporation:  The Company has received a work order from National Informatics Centre Services Incorporated in relation to the assignment of work of Immigration Visa and Foreigner Registration & Tracking at a total cost of Rs 29.75 Crore (All-Inclusive).

JSW Energy: JSW Neo Energy Limited ('JSWNEL'), a 100% subsidiary of the Company, has entered into a Memorandum of Understanding with the Government of Telangana for setting up a 1,500 MW capacity Hydro Pumped Storage Project viz. Komoram Bheem Pumped Storage Project, in the State of Telangana.

MEP Infrastructure Developers: The board of the company has approved the proposal of issuance of up to one crore equity shares of the face value of 10 each on a preferential basis at Rs 25 per Equity Share aggregating to Rs 25 crore. Besides, it also approved the issuance of securities by way of 90 lakh Share Warrants on a preferential basis at Rs 25 per Equity Share aggregating to Rs. 22.50 crore to the Promoter Group.

HPCL: The company will be investing Rs 8,000 crore in city gas distribution and CNG station infrastructure in West Bengal. 

GAIL: The company Bengal Gas will jointly invest Rs 9,000 crore to set up a CNG pipeline in West Bengal. 

Bulk Deal

Barbeque Nations: Ashish Kacholia bought 2.53 lakh shares at Rs 1,163 per share. Everest Finance and Investment Company acquired 2.52 lakh shares at Rs 1163 per share. Menu Private Limited sold 5.05 lakh shares at Rs 1163 per share. 

Stocks in focus, stocks to buy, shares to buy, share to buy, top 5 stocks to buy, stocks to buy, stocks to buy today, stocks to buy today india, best nse stocks to buy today, best stocks to buy in india for short term, Stocks in focus, shares to buy, shares to buy today, ANil Singhvi, Anil Singhvi tips, stock markets today, share market today, share bazaar, share bazaar today, sensex today, nifty today