Stocks in Focus on August 13: Hero MotoCorp, Eicher Motors, Tata Steel, Auto Stocks to Aviation Stocks; here are the 5 Newsmakers of the Day

The Indian stock markets closed with robust gains on Thursday, August 12, 2021, the day of weekly F&O expiry amid solid buying in IT, PSU Banks and realty stocks. The S&P BSE Sensex advanced 318.05 points or 0.58 per cent to end at 54,843.98. The Nifty 50 index gained 82.15 points or 0.50 per cent at 16,364.40. But certain stocks came in the news after the market was closed. These stocks can impact the indices when it reopens on Friday, August 13, 2021. List of such five stocks:

See Zee Business Live TV Streaming Below:

Hero MotoCorp + Eicher + Ashok Leyland

Hero MotoCorp: The two-wheeler company has reported a standalone profit of Rs 365 crore for the quarter ended June 30, 2021. It had posted a profit of Rs 62 crore in the year-ago quarter. Revenue from operations grew to Rs 5,487 crore in the quarter under review as compared to Rs 2,972 crore posted last year. EBITDA grew to Rs 515 crore compared to Rs 108 crore posted last year. Margin has improved to 9.4% in Q1FY22 as compared to 3.6% posted in Q1FY21. Highlights:

 - The company remains optimistic about demand over the coming months with the start of the festive season and also a healthy monsoon and encouraging farm activity. 

 - The commodity costs continued to rise, thereby impacting the industry margins 

Eicher Motors: Royal Enfield-maker Eicher Motors has reported a consolidated profit of Rs 237 crore for the quarter ended June 30, 2021. It had posted a loss of Rs 55 crore in the year-ago quarter. Revenue from operations grew to Rs 1,974 crore in the quarter under review as compared to Rs 818 crore posted last year. EBITDA grew to Rs 363 crore as compared to Rs 3 crore posted last year. The margin has improved to 18.4% in Q1FY22 as compared to 0.4% posted in Q1FY21. Highlights:

- Mr. Vinod K Dasari, CEO RE and Whole Time Director of the company has resigned. (Vinod’s decision to move is intending to dedicate time and energy to pursue his personal passion and ambition in affordable healthcare) 

- Mr. B Govindarajan has been appointed as Executive Director – RE (Whole Time, Additional Director) , effective August 18. (Govind has been the Chief Operating Officer at Royal Enfield since 2013)   

Siddharth Lal to Zee Business 

- Chip shortage to impact Festive season  

- Have demand already  

- Currently holding an order book and expect it to roll on to the festive season 

- Will was not able to deliver everything in the order book  

- Working hard to get supplies 

- Do see improvement in production 

- CV demand uptick but not up to our level  

- CV upcycle should kick in 

- Seeing good demand after 2 years in CV 

- It will be a strong festive season for CV 

Ashok Leyland: The automotive manufacturer has reported a standalone loss of Rs 282 crore for the quarter ended June 30, 2021, as compared to a loss of Rs 389 crore posted in the year-ago quarter. Revenue from operations grew 353.3% YoY to Rs 2,951 crore as compared to Rs 651 crore. EBITDA loss stands at Rs 140 crore in Q1FY22 as compared to an EBITDA loss of Rs 333 crore posted in Q1FY21. Highlights:

- The company expect volume recovery trend to continue going forward 

- The supply of Electronic Control Units (ECUs), continues to be a concern, owing to the limited availability of Semiconductors 

- Saw strong demand for the AVTR range – India’s first modular truck platform, and this demand is expected to further improve 

Tata Steel + Aurobindo Pharma

Tata Steel: The steel marker Tata Steel has reported a consolidated profit of Rs 9,768 crore for the quarter ended June 30, 2021, as compared to a consolidated loss of Rs 4,648 crore posted in the year-ago quarter. Sequentially, the profit grew 42.50% from Rs 6,644 crore posted in the previous quarter ended March 31, 2021. Revenue from operations jumper 110% YoY to Rs 53,372 crore as compared to Rs 25,475 crore posted last year. Sequentially, the revenue grew 6.79% from Rs 49,977 crore posted in the previous quarter. EBITDA grew 2,884% in the quarter under review at Rs 16,111 crore as compared to Rs 540 crore reported last year. Sequentially, the company had posted an EBITDA of Rs 14,184 crore in the previous quarter. The company has posted a margin of 30.18% in Q1FY22 as compared to 2.12% posted in Q1FY21 and 28% posted in Q4FY21. The company has posted a standalone EBITDA/ton at Rs 35,808 as against 5,904 posted last year and Rs 27,800 in the previous quarter. 

Aurobindo Pharma: The pharmaceutical company has reported a 2% YoY decline in the consolidated profit at Rs 770 crore for the quarter ended June 30, 2021, as compared to Rs 783 crore posted in the year-ago period. Sequentially, the profit dropped 3.87% from Rs 801 crore posted in the previous quarter ended March 31, 2021. Revenue from operations grew 7.68% YoY to Rs 5,702 crore as compared to Rs 5,295 crore posted last year. Sequentially, the revenue dropped 5% from Rs 6,007 crore posted in the previous quarter. The EBITDA dropped 3.81% to Rs 1,209 crore as compared to Rs 1,257 crore posted last year. EBITDA fell 5% QoQ from Rs 1,274 crore posted in the previous quarter. The company’s margin remained flat on YoY & QoQ basis at 21.2%. Highlights:

- Below Estimates due to Natrol Divestment 

- US revenue in Q1FY22 declined by 1.5% YoY 

- The company will subscribe to fresh equity shares in Cronus Pharma Specialities India Private Ltd amounting to Rs 420 Crores. Post investment the Company will own 51% of the equity share capital of Cronus. 

- The acquisition will provide the Company a foothold in the US$48 Billion global animal health market. 

- Cronus has 67 products in its pipeline, of which 22 have been filed and 6 have been approved by the Centre for Veterinary Medicine, USFDA. 

- Board Approved the amalgamation of its wholly owned subsidiaries viz. Auronext Pharma Private Limited and Mviyes Pharma Ventures Private Limited with Aurobindo Pharma Limited. 

Auto Scrappage + Tata Motors 

Auto Stocks: PM Modi to launch national automobile scrappage policy at 10:45 am. Being Organized to Invite Investment for setting up vehicle scrapping infrastructure. 
Tata Motors: Tata Motors Ltd, India’s largest vehicle maker is preparing to raise funds of up to $100 crore (Rs 7,500 crore) for its new electric vehicle (EV) business. The total EV business values at nearly $700 crore (Rs 35,000 crore). Reportedly, the company is in talks to raise funds with Global Funds and has approached companies like Blackstone, TPG Capital, KKR. The company may transfer EV business to Step Down subsidiary. In March, shareholders approved the demerger of the PV business. 

Interglobe Aviation/ Spice Jet: The Ministry of Civil Aviation (MoCA) on Thursday issued an order allowing domestic airlines to increase flight capacity to 72.5% from 65% with immediate effect. It has increased the cap on special flights that operate between India and the U.K. from 30 to 60 flights per week. The new rules will come into effect from August 16, 2021. 

Pharma Companies in Focus: US President Biden has called for a penalty for raising drug prices more than inflation.