Stocks in Focus on February 8: Punjab National Bank, BHEL, Britannia Industries, Divi's Laboratories to NTPC; here are the 5 Newsmakers of the Day

Benchmark indices advanced for fifth, February 5, 2021, trading session on Friday, follow Reserve Bank of India (RBI)'s decision to keep repo rates unchanged. The S&P BSE Sensex added 117.34 points or 0.23% to 50,731.63. The Nifty 50 gained 8.60 points or 0.19% to 14,924.25. Both the indices attained record closing high levels. The indices have surged about 9.5% in five consecutive sessions. But certain stocks came in news after the market was closed. These stocks can impact the indices when it reopens on Monday, February 8, 2021. List of such five stocks:

Punjab National Bank + BHEL + SCI + RCF

Punjab National Bank (PNB): The public sector bank on Friday reported a consolidated profit to Rs 506 crore for the quarter ended December 31, 2020, against a loss of Rs 177 crore reported in the same quarter last year. The lender’s net interest income (NII) also grew 28% to Rs 8,313 crore in the reported quarter against Rs 6,497 crore posted last year.

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Net interest margin (NIM) grew to 3.09% in Q3FY21 against 2.50% posted in Q3FY20. The bank’s net NPA ratio was at 4.03% as compared to 5.40%. Sequentially, the NNPA was at 4.03% against 4.8% reported in the September quarter. The gross NPA was 12.90% against 14.10% YOY. Sequentially, the GNPA stood at 12.90% against 13,40% reported in the previous quarter. The bank’s provisions for NPA (bad loans) stood at Rs 3,118 crore against Rs 6,169 crore. The proforma GNPA was 14.70% and proforma NPA was 5.65%. This includes Rs 446.04 crore on account of COVID-19 Regulatory Package Provision. PNB expects Rs 3,800 crore recovery from Bhushan Power resolution. The recovery will help it achieve the target of Rs 8,000 crore cash recoveries.

BHEL: State-run engineering firm BHEL on Saturday reported a standalone net loss of Rs 231 crore for the October-December quarter due to lower revenues. It had posted a net profit of Rs 159 crore last year in the same period. Revenue from operations fell, 21.7% to Rs 4,451.4 crore from Rs 5,679.4 crore reported last year. The company has reported an EBITDA loss of Rs 179.6 crore against an EBITDA of Rs 328.7 crore posted last year. The company said other income stood at Rs 85 crore, down 44% (YoY). The deferred tax gain of Rs 71.3 crore limits losses. Power segment revenue down 27% and industry segment revenue down 12%. Total order book stands near Rs 1.07 lakh crore. Management has said that operations at have resumed to pre-COVID levels and it expects to recover carrying value of assets.
Shipping Corporation of India (SCI): The shipping company has reported a 55.4% year-on-year fall in consolidated profit at Rs 131.6 crore for the quarter ended December 31, 2020. It had reported a net profit of Rs 295 crore in the corresponding quarter last year. Revenue from operations fell 31% to Rs 841 crore against Rs 1,218 crore reported last year. EBITDA stood at Rs 226.4 crore, down 54.2%, against Rs 494 crore. Margins contracted to 26.9% in Q3FY21 against 40.6% reported in Q3FY20. 

Rashtriya Chemicals & Fertilizers (RCF): The chemical company has reported a 25.9% year-on-year rise in the consolidated profit at Rs 98.7 crore for the quarter ended December 31, 2020. It had posted a net profit of Rs 78.4 crore in the corresponding quarter last year. Revenue from operations fell 8% to Rs 2,048 crore against Rs 2,226 crore posted last year. EBITDA stood at Rs 202.3 crore, up 151.6%, from Rs 80.4 crore posted last year. The margins advanced to 9.9% in Q3FY21 against 3.6% reported in Q3FY20. 

Britannia Industries + Divi's Laboratories 

Britannia Industries: The food company on Friday posted a 22.3% year-on-year increase in consolidated net profit at Rs 452.6 crore for the third quarter ended December from a year earlier. It had posted a net profit of Rs 370 crore in the same quarter last year. Revenue from operations grew 6.2% YoY to Rs 3,165.6 crore in the reported quarter against Rs 2,982 crore posted last year. EBITDA stood at Rs 611.4 crore, up 21.9%, from Rs 501.4 crore posted last year. Margins grew to 19.3% in Q3FY21 against 16.8% reported in Q3FY20. The company in a statement said, General Trade, which is the largest channel for us, continues to grow at a healthy pace on the back of buoyancy in rural economy and recovery in urban markets. The other channels such as Modern Trade, Institutional business etc continue to face challenges with lower footfalls. On the cost front, we witnessed moderate inflation in the prices of the materials except for Palm oil where we witnessed a significant increase 

Divi's Laboratories: Drug firm Divi's Laboratories reported a 31% year-on-year rise in consolidated profit at Rs 470/6 crore for the quarter ended December 31, 2020. It had reported a net profit of Rs 359.1 crore in the same quarter last year. Consolidated revenue from operations grew 21.8% to Rs 1,701 crore against Rs 1,396.3 crore posted last year. EBITDA stood at Rs 690.8, up 39.7%, from Rs 494.6 crore posted in a year-ago period. The margin grew to 40.6% in Q3FY21 against 35.4% posted in Q3FY20. The company in a statement said, expects steady sales in Q4 & strong sales in FY22. Expects Margins to sustain going forward. Capex plan on Track – Expects Rs 600-700 crore CapEx to complete soon. 

Affle India + AB Capital + Mrs. Bectors Food Specialities Ltd + VRL Logistics + Tanla Platform

Affle India: The company has reported a 13.7% quarter-on-quarter rise in consolidated profit at Rs 30.7 crore for the quarter ended December 31, 2020. It had reported a profit of Rs 27 crore in the previous quarter. Revenue from operations rose 11.5% to Rs 150.5 crore against Rs 135 crore posted in the previous quarter. EBIT stood at Rs 33.4 crore, up 13.5%, from Rs 29.4 crore reported in September quarter this year. The margin remained almost flat at 28.4% in Q3FY21 against 28.5% reported in Q2FY21. 

Aditya Birla Capital: The life insurance company has reported a 15.6% year-on-year rise in standalone profit at Rs 289 crore for the quarter ended December 31, 2020. It had reported a net profit of Rs 250 crore reported in the same quarter last year. Revenue grew 15.2% to Rs 5,346 crore in the reported quarter against Rs 4,645 crore reported last year. The company in a statement said, strong growth across businesses and cost optimisation leading to delivery of highest ever quarterly consolidated profit. 

Mrs Bectors Food Specialities Ltd: The company has reported an 85.6% year-on-year rise in the consolidated profit at Rs 20.6 crore for the quarter ended December 31, 2020. It had reported a profit of Rs 11.1 crore in the corresponding quarter last year. Revenue from operations grew 11.3% to Rs 226 crore in the reported quarter against Rs 203 crore posted last year. EBITDA stood at Rs 40.1 crore, up 42.7%, from Rs 28.1 crore reported last year. Margins grew to 17.7% in Q3FY21 against 13.8% reported in Q3FY20. 

VRL Logistics: The company has reported a 53.9% year-on-year rise in consolidated profit at Rs 39.7 crore for the quarter ended December 31, 2020. It had posted a net profit of Rs 25.8 crore in the same quarter last year. Revenue from operations grew 1.1% YoY to Rs 563.4 crore from Rs 557.3 crore reported last year. EBITDA stood at Rs 98.8 crore, up 23.9%, against Rs 79.7 crore posted last year. The margin grew to 17.5% in Q3FY21 from 14.3% reported in Q3FY20. The board of the company has approved buyback (Buyback at 47% Premium) of the fully paid-up equity shares at Rs 300 per share exceeding for an aggregate amount not exceeding Rs 60 crores. The Maximum Buyback Size represents 9.73% of the aggregate of the total paid-up capital and free reserves of the company. 

Tanla Platform: Cloud communication technology firm Tanla Platforms on Saturday posted a 14.7% quarter-on-quarter rise in the consolidated profit at Rs 93.5 crore for the quarter ended on December 31, 2020. The company had posted a profit of Rs 81.5 crore in the previous quarter. Revenue from operations grew 12.2% to Rs 654.1 crore against Rs 583.2 crore reported in September quarter this year. EBIT stood at Rs 118 crore, up 34.7%, to Rs 87.6 crore. The margin grew to 18% in Q3FY21 against 15% reported in Q2FY21. 

NTPC: The stocks of the company will remain in focus today as the Sunday's flash flood in Rishiganaga river triggered by a glacier burst in the state's Chamoli district has an impact on the state-run NTPC's 520-MW Tapovan-Vishnugad hydel project on Dhauliganga river in Uttarakhand. Around 150 workers feared missing. 

Brookfield REIT IPO Update: The Rs 3,800 crore initial public offering (IPO) of Brookfield India Real Estate Trust (REIT) was subscribed 7.9 times on the last day of subscription, i.e. on February 5, 2021. The institutional investors' quota was subscribed 4.8 times and the retail portion was subscribed 11.7 times. The company has fixed a price band of Rs 274-275 per equity share. Investors were able to bid for a minimum 200 units and in multiples of 200 units thereafter, hence, the minimum application size by retail investors would be Rs 55,000 at higher price band.