Stocks in Focus on February 11: Hero MotoCorp, GSPL, Tata Chemicals, Cummins India, Burger King and many more

The domestic equity barometers ended with strong gains on Thursday, February 10, 2022. RBI's decision to keep the policy rates unchanged and positive global cues boosted sentiment. The barometer index, S&P BSE Sensex advanced 460.06 points or 0.79% to 58,926.03.

The Nifty 50 index gained 142.05 points or 0.81% to end at 17,605.85. But certain stocks came in the news after the market was closed. These stocks can impact the indices when it reopens on Friday, February 11, 2022. List of such stocks:

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Q3FY22 Earnings

Nifty Stocks Result

Hero MotoCorp: The country’s largest two-wheeler manufacturer Hero MotoCorp on Thursday reported a 36.7% YoY decline in standalone net profit at Rs 686 crore for the quarter ended December 31, 2021, on the back of lower sales and a rise in commodity prices. It had posted a net profit of Rs 1,084 crore in the corresponding quarter of the last fiscal year. The company's revenue from operations fell 19.4% YoY to Rs 7,883 crore against Rs 9,776 crore posted last year. The EBITDA stood at Rs 960 crore, down 32.1% YoY from Rs 1,414 crore posted in the year-ago quarter. The margin contracted to 12.2% in December 2021 quarter against 14.5% posted in December 2020 quarter. Besides, the company has declared an interim dividend of Rs 60/share and fixed February 22, 2022, as the record date for the purpose.

Management Commentary 

- Commodity cost pressures are expected to ease, as supply imbalances get corrected gradually

- The recently announced Union Budget, with its focus on growth through increased capital expenditure, as well as continued support to rural and MSME sector augurs well for FY '23 demand scenario in general and two-wheeler industry in particular.

F&O Stocks Results

Sun TV: The Indian Tamil-language general entertainment pay channel has reported a 5.6% YoY rise in the consolidated profit at Rs 471 crore for the quarter ended December 31, 2021. It had posted a profit of Rs 446 crore in the corresponding quarter of the last fiscal. The company's revenue from operations grew 6.6% YoY to Rs 1,060 crore against Rs 994 crore posted last year. EBITDA stood at Rs 734 crore, up 20.7% YoY from Rs Rs 608 crore posted last year. The margin improved to 69.2% in Q3FY22 against 61.2% posted in Q3FY21. Besides, the company has declared an interim dividend of Rs 2.5 per share.

Gujarat State Petronet Ltd. (GSPL): The natural gas transmission company has reported a 24.3% QoQ decline in the standalone net profit at Rs 248 crore for the quarter ended December 31, 2021. It had posted a profit of Rs 327.7 crore in the previous quarter ended September 30, 2021. Revenue from operations fell 19.9% QoQ to Rs 471.2 crore in the period under consideration against Rs 588.5 crore posted in the September 2022 quarter. EBITDA stood at Rs 336.5 crore, down 11.6% QoQ from Rs 380.6 crore posted in the previous quarter. However, the margin has improved to 71.4% in Q3FY22 against 64.7% posted in Q2FY22.

Tata Chemicals: The chemicals company has reported an 87% YoY rise in the consolidated profit at Rs 301 crore for the quarter ended December 31, 2021. It had posted a profit of Rs 161 crore in the corresponding quarter of the last fiscal. The company's revenue from operations grew 21% to Rs 3,142 crore against Rs 2,606 crore posted last year. EBITDA stood at Rs 546 crore, up 16% YoY from Rs 472 crore posted last year. The margin fell marginally to 17.4% in Q3FY22 from 18.11% posted in Q3FY21. The company in a statement said the increase is mainly due to higher Soda Ash Volumes and the better realisations from the market. Globally, demand remained firm across segments viz Glass, Detergent and Chemicals, as all sectors of the economy opened. Demand reached pre-pandemic levels.

Trent Ltd.: Tata group retail firm Trent Ltd has reported a 66.8% YoY rise in the standalone net profit at Rs 132.9 crore for the quarter ended December 31, 2021. It had posted a profit of Rs 79.7 crore in the corresponding quarter of the last fiscal. The company's revenue from operations rose 85.8% YoY to Rs 1,347.8 crore against Rs 725.4 crore posted last year. EBITDA stood at Rs 291.7 crore, up 62% YoY from Rs 180 crore posted last year. The margins contracted to 21.6% in Q3FY22 from 24.8% posted in Q3FY21. The company in a statement said that Westside has registered revenues of over Rs 1,000 crore for the quarter with LFL growth of 9% and 49% vis-à-vis FY20 (pre-COVID) and FY21 respectively.

Cummins India: The company that designs, manufactures, distributes and services diesel and alternative fuel engines have reported a 3.8% YoY rise in the consolidated profit at Rs 249.5 crore for the quarter ended December 31, 2021. It had posted a profit of Rs 240.3 crore in the corresponding quarter last fiscal. The company's revenue from operations grew 21.8% YoY to Rs 1,743.7 crore against Rs 1,431 crore posted last year. EBITDA stood at Rs 272.5 crore, up 12.6% from Rs 242.1 crore posted last year. The margins fell to 15.6% in Q3FY22 against 16.9% posted in Q3FY21. Besides, the board has recommended an interim dividend of Rs 8 per share.

Cash Stocks Results

SJVN Ltd: The state-owned hydroelectric power generation company has reported a 19.2% YoY rise in the consolidated profit at Rs 235.5 crore for the quarter ended December 31, 2021, against Rs 197.6 crore posted in the year-ago quarter. Revenue from operations grew 11.2% YoY to Rs 549.1 crore against Rs 493.9 crore posted last year. EBITDA stood at Rs 383.4 crore, up 17.5% YoY from Rs 326.3 crore posted last year. The margin has improved to 69.8% in Q3FY22 from 66% posted in Q3FY21. Besides, the board of directors has approved an interim dividend of Rs 1.15 per equity share (of face value Rs 10 each) for 2021-22 and fixed February 22, 2022, as the record date for the purpose.

Speciality Restaurants Ltd: The Indian restaurant company that owns multiple chains of fine and casual dining restaurants has reported a consolidated profit of Rs 11.2 crore for the quarter ended December 31, 2021, against a consolidated loss of Rs 3.7 crore posted in the corresponding quarter last year. Revenue from operations grew 56.7% YoY to Rs 89 crore against Rs 56.8 crore posted last year. EBITDA stood at Rs 23.9 crore, up 3.9 times against Rs 6.1 crore posted last year. The margins improved to 26.8% in Q3FY22 against 10.7% posted in Q3FY21.

Titagarh Wagons Ltd.: The railway company has reported a consolidated profit of Rs 1.5 crore for the quarter ended December 31, 2021, against a consolidated loss of Rs 81 lakhs the company incurred in the corresponding quarter last year. Revenue from operation grew 7.4% YoY to Rs 482.6 crore against Rs 449.4 crore posted last year. EBITDA stood at Rs 38.3 crore, up 47.9% from Rs 25.9 crore posted last year. The margins have improved to 7.9% in Q3FY22 against 5.8% posted in Q3FY21. 

Zomato Ltd: The Indian online restaurant guide and food ordering platform has narrowed its consolidated losses to Rs 67.2 crore for the quarter ended December 31, 2021, against a loss of Rs 351.3 crore posted in the corresponding quarter last year. Revenue from operations grew 82.5% YoY to Rs 1,112 crore in the reported quarter against Rs 609.4 crore posted last year. EBITDA loss stood at Rs 489 crore against an EBITDA loss of Rs 110.7 crore posted last year. The company has reported an exceptional profit of Rs 315.8 crore against an exceptional loss of Rs 233 crore posted last year. Adjusted EBITDA loss stands at Rs 270 crore against a loss of Rs 310 crore posted in the previous quarter. Besides, the company in a statement said, "We are in the process of setting up our own non-banking financial company (NBFC) which will allow us to extend short term credit to our ecosystem – our delivery partners, customers and restaurant partners.

HP Adhesives: The adhesives and sealants company has reported a 32.3% YoY decline in the standalone profit at Rs 2.1 crore for the quarter ended December 31, 2021, against a profit of Rs 3.1 crore posted in the corresponding quarter last year. Revenue from operations grew 26.3% YoY to Rs 43.7 crore against Rs 34.6 crore posted last year. EBIDTA stood at Rs 4.2 crore, up 16.7% YoY from Rs 3.6 crore posted last year. The margin fell to 9.6% in Q3FY22 against 10.4% posted in Q3FY21.

MTAR Technologies: The precision engineering solutions company has reported a 51% YoY rise in the consolidated profit at Rs 13.3 crore for the quarter ended December 31, 2021, against Rs 8.8 crore posted in the year-ago quarter. Its revenue from operations grew 41.8% YoY to Rs 78 crore against Rs 55 crore posted last year. EBITDA stood at Rs 22.7 crore, up 32% from Rs 17.2 crore posted last year. The margin dropped to 29.10% in Q3FY22 against 31.27% posted in Q3FY21.

Stocks in News

Burger King: Burger King India announced the launch of its qualified institutional placement (QIP) of equity shares of Rs 10 face value on Thursday, February 10, 2022. The company has set the floor price at Rs 136.05 per share. The indicative offer size is for the base deal size of Rs 1,275 crore with an option to upsize to Rs 1,425 crore million. The indicative offer price has been set at Rs 129.25 per equity, with a maximum of 5% discount.

Torrent Power / Balrampur Chini: Torrent Power Ltd on Thursday announced a Rs 163 crore acquisition of 25 Mw solar power plants operated by a special purpose vehicle (SPV) of Blue Diamond Properties Private Limited and Balrampur Chini Mills Limited.

JSPL: The company has won the bid for Utkal C Block at a 45% premium.