Stocks in Focus on February 4: Vedant Fashions IPO, ITC, Torrent Power, Pfizer, Route Mobile and many more

Snapping three days of gains, the stock markets ended with deep cuts on Thursday, February 3, 2022. The S&P BSE Sensex dropped 770.31 points or 1.29% at 58,788.02. The Nifty 50 index lost 219.80 points or 1.24% to settle at 17,560.20. But certain stocks came in the news after the market was closed. These stocks can impact the indices when it reopens on Friday, February 4, 2022. List of such stocks:

Vedant Fashions IPO: The Rs 3,150 crore initial public offering (IPO) of Vedant Fashions Limited, owner of ethnic wear brand Manyawar, will open for subscription today, i.e., on Friday, February 4, 2022, and will conclude on Tuesday, February 8, 2022. The company has fixed a price band of the issue at Rs 824-866 per equity share. A retail investor will be able to apply for the IPO in lots and one lot will comprise 17 shares of the company. The issue is complete an offer for sale (OFS) in which the company’s promoter and existing shareholders will sell 3.64 crore shares. The company will not receive any proceeds from the IPO. Besides, ahead of the launch of the IPO, the company has on Thursday mobilised Rs 945 crore from 75 anchor investors. Marquee investors who participated in the offer include the Government of Singapore, Abu Dhabi Investment Authority, Fidelity, Nomura, SBI MF, Kotak MF, Axis MF, ICICI Prudential MF, HDFC Life and UTI MF among others.

Q3FY22 Earnings

ITC: FMCG major ITC on Thursday reported a 12.7% YoY rise in the standalone net profit at Rs 4,156.20 crore for the quarter ended December 31, 2021. It had posted a profit of Rs 3,687.9 crore in the same quarter last year. Revenue from operations grew 33.5% to Rs 15862.3 crore against Rs 11879 crore posted last year. EBITDA stood at Rs 5102 crore, up 18.25% from Rs 4314.7 crore posted last year. Margins declined to 32.2% in Q3FY22 against 36.3% posted in Q3FY21.  

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Segmental performance  

- Cigarette: The revenues grew 13.6% YoY to Rs 6244.1 crore in the period under consideration against Rs 5498.4 crore posted last year. EBIT stood at Rs 3950.7 crore, up 14.4% from Rs 3452.8 crore posted last year. The margins improved to 63.3% in Q3FY22 from 62.8% posted in Q3FY21.

- FMCG: The revenues grew 9.3% YoY to Rs 4090.6 crore in the period under consideration against Rs 3743.7 crore posted last year. EBIT stood at Rs 241.9 crore, up 1% from Rs 239.3 crore posted last year. The margins fell to 5.9% in Q3FY22 from 6.4% posted in Q3FY21.

- Hotel: The revenues grew 101% YoY to Rs 473.4 crore in the period under consideration against Rs 235.2 crore posted last year. It posted an EBIT profit of Rs 50.6 crore against an EBIT loss of Rs 67.4 crore posted last year. The margins stood at 10.7% in Q3FY22.

- Agriculture: The revenues grew 100% YoY to Rs 4962.4 crore in the period under consideration against Rs 2481.8 crore posted last year. EBIT stood at Rs 295.3 crore, up 50.6% from Rs 196.1 crore posted last year. The margins fell to 6% in Q3FY22 from 7.9% posted in Q3FY21. 

- Paperboard: The revenues grew 38.5% YoY to Rs 2046.5 crore in the period under consideration against Rs 1477.5 crore posted last year. EBIT stood at Rs 448.5 crore, up 57.3% from Rs 285 crore posted last year. The margins fell to 21.9% in Q3FY22 from 19.3% posted in Q3FY21. 

Besides, the board has approved an interim dividend of Rs 5.25 per share. The company has fixed February 15, 2022, as the record date and the dividend will be credited by March 4, 2022. 

Torrent Power: The company engaged in the generation, transmission and distribution of power has reported a 15% YoY rise in the consolidated profit at Rs 368.1 crore for the quarter ended December 31, 2021. It had posted a profit of Rs 321 crore in the same quarter last year. Revenue from operations grew 27.6% to Rs 3767.4 crore against Rs 2952.7 crore posted last year. EBITDA stood at Rs 934 crore, up 7.3% from Rs 870.7 crore posted last year. Margins declined to 24.8% in Q3FY22 against 29% posted in Q3FY21. Besides, the board has approved an interim dividend of Rs 9 per share and fixed February 11, 202, as the record date. 

Pfizer: The drug firm Pfizer has reported a profit of Rs 144 crore for the quarter ended December 31, 2021, against a profit of Rs 141 crore posted in the same quarter last year. Revenue from operations grew 14% to Rs 676 crore against Rs 593 crore posted last year. EBITDA stood at Rs 195 crore against Rs 196 crore posted last year. Margins contracted to 28.8% in Q3FY22 against 33% posted in Q3FY21. 

Lupin: Drug firm Lupin has reported a 24% YoY rise in the profits at Rs 545 crore for the quarter ended December 31, 2021, against a profit of Rs 438 crore posted in the same quarter last year. Revenue from operations grew 3.5% YoY to Rs 4,161 crore against Rs 4,017 crore posted last year. EBITDA stood at Rs 370 crore, down 52% YoY from Rs 778 crore posted last year. Margin contracted to 8.9% in Q3FY22 from 19.4% posted in Q3FY21. 

PI Industries: Chemical industry company PI Industries has reported a 14% YoY rise in the consolidated profit at Rs 223 crore for the quarter ended December 31, 2021, against a profit of Rs 195crore posted in the same quarter last year. Revenue from operations grew 17% YoY to Rs 1,356 crore against Rs 1,162 crore posted last year. EBITDA stood at Rs 296 crore, up 8% YoY from Rs 275 crore posted last year. Margin contracted to 22% in Q3FY22 from 24% posted in Q3FY21.

AB Capital: The financial services company Aditya Birla Capital has reported a 100% YoY rise in the consolidated profit at Rs 577 crore for the quarter ended December 31, 2021, against a profit of Rs 289 crore posted in the same quarter last year. Revenue from operations grew 13.45% YoY to Rs 5,795 crore against Rs 5,032crore posted last year.

Jubilant Industries: Chemical manufacturing company Jubilant Industries has reported a 29.7% YoY decline in the consolidated profit at Rs 5.2 crore for the quarter ended December 31, 2021, against a profit of Rs 7.4 crore posted in the same quarter last year. Revenue from operations grew 88.6% YoY to Rs 298 crore against Rs 158 crore posted last year. EBITDA remained flat at Rs 14.8 crore while the margin contracted to 5% in Q3FY22 against 9.4% posted in Q3FY21. The company in a statement said that its cost of material went up by 123% to Rs 199 crore. 

Lux Industries: Hosiery maker Lux Industries has reported a 34.6% YoY rise in the consolidated profit at Rs 101.2 crore for the quarter ended December 31, 2021, against a profit of Rs 75.2 crore posted in the same quarter last year. Revenue from operations grew 23.6% YoY to Rs 664.3 crore against Rs 537.6 crore posted last year. EBITDA stood at Rs 141.5, up 32.5% from Rs 106.8 crore posted last year. Margins improved to 21.3% in Q3FY22 against 19.9% posted in Q3FY21. 

Tribhovandas Bhimji Zaveri: The company has reported a 52% YoY decline in the profits at Rs 19 crore for the quarter ended December 31, 2021, against a profit of Rs 40 crore posted in the same quarter last year. Revenue from operations grew 23% YoY to Rs 763 crore against Rs 622 crore posted last year. EBITDA stood at Rs 39 crore, down 40% YoY from Rs 65.5 crore posted last year. Margin contracted to 5.1% in Q3FY22 against 10.5% posted in Q3FY21. 

Hawkins Cookers: The manufacturer of pressure cookers and cookware Hawkins Cookers has reported a 20.8% YoY decline in the consolidated profit at Rs 19 crore for the quarter ended December 31, 2021, against a profit of Rs 24 crore posted in the same quarter last year. Revenue from operations grew 16.5% YoY to Rs 269 crore against Rs 231 crore posted last year. EBITDA stood at Rs 27.8 crore, down 14.7% YoY from Rs 32.6 crore posted last year. Margin contracted to 10.3% in Q3FY22 against 14.1% posted in Q3FY21. 

H.G. Infra Engineering: The construction engineering company has reported a 48.5% YoY rise in the consolidated profit at Rs 101 crore for the quarter ended December 31, 2021, against a profit of Rs 68 crore posted in the same quarter last year. Revenue from operation grew 26.6% YoY to Rs 951 crore against Rs 751 crore posted last year. EBITDA stood at Rs 177 crore, up 34.1% from Rs 132 crore posted last year. The margin grew to 18.6% in Q3FY22 from 17.6% posted in Q3FY21.

Sumitomo Chemicals: The chemical industry company has reported a 64.8% YoY rise in the consolidated profit at Rs 89 crore for the quarter ended December 31, 2021, against a profit of Rs 54 crore posted in the same quarter last year. Revenue from operation grew 26% YoY to Rs 707 crore against Rs 561 crore posted last year. EBITDA stood at Rs 126 crore, up 60.5% from Rs 78.5 crore posted last year. The margin grew to 17.8% in Q3FY22 from 14% posted in Q3FY21.

GMM Pfaudler: The leading supplier of engineered equipment and systems to chemical and pharma markets GMM Pfaudler has reported a 39.1% YoY rise in the consolidated profit at Rs 32 crore for the quarter ended December 31, 2021, against a profit of Rs 23 crore posted in the same quarter last year. Revenue from operation grew 217.8% YoY to Rs 642 crore against Rs 202 crore posted last year. EBITDA stood at Rs 82 crore, up 90.7% from Rs 43 crore posted last year. Margin contracted to 12.8% in Q3FY22 from 21.3% posted in Q3FY21. Besides, the Board of Directors of GMM Pfaudler Limited approved payment of the 3rd Interim dividend of Rs 1 per share and fixed February 11, 2022, as the record date for it. 

Sigachi Industries: The manufacturer of chlorinated paraffin and hydrochloric acid has reported a 33.8% YoY rise in the consolidated profit at Rs 9.5 crore for the quarter ended December 31, 2021, against a profit of Rs 7.1 crore posted in the same quarter last year. Revenue from operation grew 35.6% YoY to Rs 65.5 crore against Rs 48.3 crore posted last year. EBITDA stood at Rs 12.5 crore, up 42% from Rs 8.8 crore posted last year. The margin grew to 19.1% in Q3FY22 from 18.2% posted in Q3FY21.

Brigade Enterprises: The real estate and property development company has reported a consolidated profit of Rs 78 crore for the quarter ended December 31, 2021, against a consolidated loss of Rs 16 crore posted in the same quarter last year. Revenue from operation grew 42.8% YoY to Rs 921 crore against Rs 645 crore posted last year. EBITDA stood at Rs 257 crore, up 72.5% from Rs 149 crore posted last year. The margin grew to 27.9% in Q3FY22 from 23.1% posted in Q3FY21.

IG Petrochemicals: Chemical manufacturing company has reported a 14.3% QoQ rise in the consolidated profit at Rs 74.3 crore for the quarter ended December 31, 2021, against a profit of Rs 65 crore posted in the previous quarter ended September 30, 2021. Revenue from operation grew 7.7% YoY to Rs 507 crore against Rs 471 crore posted in September 2021 quarter. EBITDA stood at Rs 112.1 crore, up 15% from Rs 97.5 crore posted in the previous quarter. Margin improved to 22.1% in Q3FY22 from 20.7% posted in Q2FY22.

JK Tyre: The tyre manufacturer has reported a 74.6% YoY decline in the consolidated profit at Rs 57 crore for the quarter ended December 31, 2021, against a profit of Rs 224 crore posted in the same quarter last year. Revenue from operation grew 11.1% YoY to Rs 3,076 crore against Rs 2,769 crore posted last year. EBITDA stood at Rs 274 crore, down 45.3% YoY from Rs 501 crore posted last year. Margin contracted to 8.9% in Q3FY22 against 18.1% posted in Q3FY21. 

Thomas Cook India: Travel agency company has reported a consolidated loss of Rs 23 crore for the quarter ended December 31, 2021, against a consolidated loss of Rs 59 crore posted in the same quarter last year. Revenue from operation grew 216.9% YoY to Rs 748 crore against Rs 236 crore posted last year. EBITDA stood at Rs 11 crore in the reported quarter against an EBITDA loss of Rs 74.5 crore posted last year. It has posited a positive margin of 1.5% in Q3FY22 against a negative margin posted in Q3FY21. 

Stocks in News

Route Mobile: Routesms Solutions FZE ('RSL FZE'), a wholly-owned subsidiary of Route Mobile Limited, has entered into a Share Purchase Agreement ('SPA') with the existing shareholders of M.R Messaging FZC to acquire 100% of the equity shares for Euro 3.8 crore (approx Rs 325 crore). The acquisition will be done in phases in the next 3 years. 

OnMobile Global: OnMobile, the global leader in mobile entertainment, has partnered with Dialog Axiata PLC to launch its mobile cloud gaming platform ONMO.

IPCA Laboratories: One plant out of the two plants being set up for manufacturing of Drug Intermediates / Active Pharmaceuticals Ingredients (APIs) at the Company's new greenfield manufacturing unit being set up at Dewas (Madhya Pradesh) with a capital outlay of about Rs 250 crores has commenced trial production on February 2, 2022.

Dhani Services: Nomura Singapore buys 1 crore shares of the company at Rs 153 per share. Tamarind Capital PTE has sold 4 crore shares at Rs 139.62 per share.