Stocks in Focus on August 9: NALCO, Tata Power, Zee Entertainment, Rolex Rings to Nuvoco Vistas IPO; here are the 5 Newsmakers of the Day

The domestic stock markets snapped their four-session winning run and closed in a red on Friday, August 6, 2021. The S&P BSE Sensex lost 215.12 points or 0.35 per cent to close at 54,277.72. The Nifty 50 closed 56.40 points or 0.35 per cent lower at 16,238.20. But certain stocks came in the news after the market was closed. These stocks can impact the indices when it reopens on Monday, August 9, 2021. List of such five stocks:

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NALCO + SAIL + Bharat Electronics + Bank of Baroda

NALCO: State-owned mining company has reported a 20x YoY jump in the consolidated profit at Rs 248 crore for the quarter ended June 30, 2021, as against Rs 17 crore posted in the same quarter last year. Revenue from operations on the consolidated basis rose 79% to Rs 2,475 crore as against Rs 1,381 crore posted last year. EBITDA grew 348% to Rs 581 crore as against Rs 130 crore posted last year. The Margins improved to 23.4% in Q1FY22 as against 9.4% posted in Q1FY21. 
SAIL: State-owned steel production company has reported a profit of Rs 3,850 crore on a standalone basis for the quarter ended June 30, 2021, as against a loss of Rs 1,270 crore posted in the same quarter last year. Revenue from operations grew 128% to Rs 20,642 crore as against Rs 9,067 crore posted last year. The company has posted a positive EBITDA of Rs 6,564 crore for the quarter under review as against an EBITDA loss of Rs 404 crore posted last year. Adjusted EBITDA stood at Rs 6,849 crore in Q1FY22. The company has posted a margin of 31% in Q1FY22. Other highlights:

- EBITA/Ton Rs 20,250 Vs Rs 14,161.

- Full FY21 Profit was Rs 3,850 Crs Vs Same amount in Q1FY22.

- Oxygen supply and lockdown had an impact during the first quarter.

- Gross Debt reduced by Rs 5,063 crore.

- Rs 285 crore impact of wage revision.  

Bharat Electronics: State-owned aerospace and defence electronics company has reported a 79.4% YoY decline in the profits at Rs 11.2 crore for the quarter ended June 30, 2021. It had posted a profit of Rs 54.1 crore posted in the same quarter last year. Revenue from operations fell 2.2% YoY to Rs 1,634.6 crore in the quarter under review as against Rs 1,670.5 crore posted last year. The EBITDA dropped 57.2% YoY to Rs 62.9 crore in the reported quarter as against Rs 146.7 crore posted last year. Margins contracted to 3.8% in Q1FY22 as against 8.8% posted in Q1FY21. 

- Total order book at Rs 54,489 crore

- Weak execution drags performance 

- Rise in Raw Material costs hurt operationally 

Bank of Baroda: The public sector lender has reported a profit YoY of Rs 4,112 crore for the quarter ended June 30, 2021, as against a loss of Rs 864 crore posted in the same quarter last year. Net interest income (NII) rose 16% YoY to Rs 7,892 crore as against Rs 6,816 crore posted last year. Provisions and contingencies for the reporting quarter stood at Rs 4,111 crore, down 23 per cent from Rs 5,349 crore in the last year period. It has made provisions of Rs 3,586 crore in the previous quarter ended March 31, 2021 (Q4FY21). The net interest margin (NIM) of the lender stood at 3.1% YoY against 2.59% posted last year. The Bank’s gross non-performing assets (NPAs) stayed flat sequentially at 8.86% in Q1FY22 as against 8.87% posted in Q4FY21. Meanwhile, net NPAs stood at 3.03 per cent in the reported quarter against 3.09% posted in the previous quarter Q4FY21. The state-owned lender has reported a fresh slippage of Rs 4901 in Q1FY22 as against Rs 10,968 crore posted in Q4FY21. Telecom exposure stood at Rs 11,373 crore in the period under review and its MSME Slippage stood at Rs 2,180 crore in the reported quarter as against Rs 2,846 crore posted in Q4FY21. 

Divi’s Laboratories + City Union Bank + Aarti Industries

Divi’s Laboratories: The Hyderabad-based pharmaceuticals company and producer of active pharmaceutical ingredients and intermediates have reported a 12% YoY rise in the consolidated profit at Rs 557 crore for the quarter ended June 30, 2021. It had posted a profit of Rs 492 crore in the same quarter last year. Revenue from operations on a consolidated basis rose 13% YoY to Rs 1,961 crore as against Rs 1,730 crore posted last year. The EBITDA rose 22% YoY to Rs 852 crore as against Rs 700 crore posted last year. Margins improved to 43% in Q1FY22 as against 40% posted in Q1FY21. 

- PAT better due to lower expenses 

- US & Europe account for 71% of revenue

- Exports: 89% of revenue

- Mgt guided for 10-15% growth ahead 

- CapEx Rs 100 crore for Kakinada Project 

City Union Bank: Private sector City Union Bank has reported an over 12% rise in its net profit at Rs 173 crore in the first quarter ended June 30, 2021. The bank had posted a net profit of Rs 154 crore in the same quarter a year ago. Net interest income (NII) rose 2.4% YoY to Rs 447.6 crore as against Rs 437 crore posted last year. Provisions and contingencies for the reporting quarter stood at Rs 170 crore as against Rs 157 crore in the last year period. The bank’s gross non-performing assets grew to 5.6% in Q1FY22 as against 5.1% posted in Q4FY21, while the net NPAs grew to 3.5% in Q1FY22 as against 3% posted in Q1FY21. 

Aarti Industries: The manufacturer of speciality chemicals has reported a 98.7% YoY rise in the consolidated profit at Rs 165 crore for the quarter ended June 30, 2021, as against a profit of Rs 83 crore posted in the same quarter last year. Sequentially, the profit grew 21.32% as compared to Rs 136 crore posted in the previous quarter ended March 31, 2021. Revenue from operations on the consolidated basis grew 41% YoY to Rs 1,317 crore as against Rs 937 crore posted last year. The revenue grew 8.93% QoQ as compared to a revenue of Rs 1,209 crore posted in the previous quarter. The EBITDA grew 73% YoY to Rs 314 crore as against Rs 182 crore posted last year. EBITDA grew 20.76% QOQ as compared to Rs 260 posted in Q4FY21. Margins improved to 23.85% in Q1FY22 as against 19.4% posted in Q1FY21 and 22% posted in Q4FY22. 

Tata Power + Torrent Power + Zee Entertainment + Astral Ltd 

Tata Power: The electric power distribution company had reported an 89.25% YoY rise in the consolidated profit at Rs 391 crore for the quarter ended June 30, 2021, as against Rs 206.6 crore posted in the same quarter last year. Sequentially, the profits dropped 0.5% as compared to a profit of Rs 393 crore posted in the previous quarter ended March 31, 2021. The revenue from operations grew 54.5% YoY to Rs 9,968 crore as compared to Rs 6,453 crore posted last year. Sequentially, revenue dropped 1.6% as compared to a revenue of Rs 10,127 crore earned in the previous March quarter. The EBITDA grew 34.3% to Rs 2,324.5 crore as against Rs 1,731 crore posted last year. EBITDA grew 60.7% QoQ from Rs 1,446 crore posted in the previous quarter. Margins contracted to 23.3% in Q1FY22 as against 26.8% posted in Q1FY21. Tata Power’s margins stood at 14.3% in Q4FY21. 

-Power generation revenue at Rs 2,844 crore, down 14% (YoY) 

- Renewables revenue at Rs 1,586 crore, up 86.7% 

- Transmission & Distribution revenue at Rs 6,309 crore, up 95.3% 

- Big jump in solar and T&D Revenue 

- T&D revenue doubles due to integration of Odisha distribution business 

- Solar EPC Orderbook at Rs 7,257 crore

Torrent Power: The energy and power company has reported a 44.6% YoY decline in the consolidated profit at Rs 206.6 crore for the quarter ended June 30, 2021, as against Rs 372.7 crore posted in the same quarter last year. Sequentially, profit declined 52% as compared to Rs 397 crore posted in the previous quarter ended March 31, 2021. Revenue from operations on a consolidated basis grew 3.1% YoY to Rs 3,099 crore as against Rs 3,007 crore posted last year. Revenue grew 3.1% QoQ from Rs 3,084 crore posted in the previous quarter. EBITDA fell 25% YoY to Rs 728 crore as against Rs 969.4 crore posted last year. EBITDA declined 64% QoQ from Rs 915 crore posted last year. Highlights:  

- Rise in expenses hurts earnings 

- To acquire a 50 MW solar power project at Maharashtra for Rs 317 crore 

- To raise Rs 2,000 crore via NCDs 

Zee Entertainment: Indian media conglomerate owned by Essel Group has reported a 7x YoY jump in the consolidated profit at Rs 214 crore for the quarter ended June 30, 2021. It had posted a profit of Rs 30 crore in the same quarter of the previous financial year. The revenue from operations on a consolidated basis grew 35.3% to Rs 1,775 crore as against Rs 1,312 crore posted last year. EBITDA grew 56.4% to Rs 344 crore as against Rs 220 crore posted last year. The company has reported a margin of 19.5% in Q1FY22 as against 16.8% posted in Q1FY21. 

Astral Ltd: The plastics pipe company has reported a 270% rise in the consolidated profit at Rs 75.1 crore for the quarter ended June 30, 2021, as against Rs 20.3 crore posted in the same quarter last year. The Revenue from operations grew 73.3% to Rs 700 crore as against Rs 403.9 crore posted last year. EBITDA grew 138.3% YoY to Rs 129.4 crore as against Rs 129.4 crore posted last year. The margins improved to 18.5% in Q1FY22 as against 13.4% posted in Q1FY21. The company in a statement said, the demand scenario of pipe, as well as adhesives, was affected heavily in May and the first half of June. But from last week of June onwards, both businesses have gained very fast momentum and we are seeing very encouraging sales numbers in both segments’ pipes and adhesives.  

Rolex Listing + 2 New IPOs opening (Nuvoco Vistas IPO + CarTrade Tech IPO)

Rollex Rings: Shares of Rolex Rings is scheduled to be listed on the Indian bourses today. The issue price was fixed at Rs 900 per share and the IPO was subscribed 130.4 times. 
Nuvoco Vistas IPO: Cement major Nuvoco Vistas Corporation’s initial public offering (IPO) will open today for subscription. The issue will close on August 11, 2021. The price band for the offer has been fixed at Rs 560-570 per equity share. The company plans to raise Rs 5,000 crore through its public offer which comprises fresh issuance of Rs 1,500 crore and an offer for sale of Rs 3,500 crore by promoter Niyogi Enterprise. Besides, the company has already raised Rs 1,500 crore from anchor investors on August 6, 2021, by allocating shares at Rs 570 per share. Few of the anchor investors include HDFC Life, ICICI Prudential Mutual Fund, SBI Mutual Fund, SBI Life, Nippon Mutual Fund, Axis Mutual Fund, Franklin Templeton Mutual Fund, Mirae Mutual Fund. 

CarTrade Tech IPO: Multi-channel auto platform CarTrade Tech’s initial public offering (IPO) will open for subscription today. The issue will close on August 11, 2021. The price band for the offer has been fixed at Rs 1,585–1,618 per equity share. The company plans to raise Rs 2,998.51 crore through its offer, at the upper end of the price band of Rs 1,618 per share. The IPO is a complete offer for sale of 1,85,32,216 equity shares by the selling shareholders — CMDB II, Highdell Investment, Macritchie Investments, Springfield Venture International, Bina Vinod Sanghi (Jointly Held with Vinay Vinod Sanghi), Daniel Edward Neary, Shree Krishna Trust, Victor Anthony Perry III, Vinay Vinod Sanghi (jointly held with Seena Vinay Sanghi). Besides, the company has already raised Rs 900 crore from anchor investors by allocating shares at Rs 1,618 per share ahead of its initial public offering. Few of the anchor investors are Nomura, HSBC, Goldman Sachs, Aditya Birla Sun Life Insurance Company, Axis Mutual Fund, HDFC Mutual Fund and Kotak Mutual Fund among others. 

AllCargo Logistics + JSPL 

Allcargo Logistics: The company has fixed a delisting price at Rs 148.01 per share (a discount of 23% on CMP of Rs 192.45). 
JSPL: Jindal Steel and Power Limited's Board accepted the revised binding offer from Worldone Private Limited (acquirer) to divest its 96.42% stake in Jindal Power Limited (JPL), a material subsidiary of JSPL. Worldone will acquire the Equity Shares and Redeemable Preference Shares of JPL held by JSPL for a total consideration of approximately Rs 7,401 cr of which (i) Rs 3,015 crore will be payable by cash, and (ii) the balance Rs 4,386 Cr (approximately) will be payable by way of assumption and takeover of liabilities and obligations of JSPL in relation to inter-corporate deposits and the capital advances paid by JPL to JSPL.