Stocks in Focus on January 20: Bajaj Auto, L&T Infotech, AGS Transact IPO, Aviation and Liquor Stocks and many more

The key equity benchmarks ended with deep cuts on Wednesday, January 19, 2022. The barometer index, S&P BSE Sensex slumped 656.04 points or 1.08% to 60,098.82. The Nifty 50 index tumbled 174.65 points or 0.96% to 17,938.40. But certain stocks came in the news after the market was closed. These stocks can impact the indices when it reopens on Thursday, January 20, 2022. List of such five stocks:

Q3FY22 Earnings: 

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Bajaj Auto: Indian multinational two-wheeler and three-wheeler manufacturer on Wednesday reported a 22% YoY decline in its standalone profit at Rs 1,214 crore for the quarter ended December 31, 2022. It had posted a profit of Rs 1,556 crore in the corresponding quarter last fiscal. The company said that its revenue from operations grew 1.3% YoY to Rs 9,022 crore against Rs 8,910 crore posted last year. Bajaj Auto’s EBITDA declined 20.6% to Rs 1,373 crore against Rs 1,729 crore. The company’s margin contracted to 15.2% in Q3FY22 against 19.4% posted in Q3FY21.

Q3 Volume Update   

Total Sales: 1181361 vs 1306810, -10% 
Total 2W: 1048545 vs 1193867, -12% 
Domestic 2W: 471284 vs 585469, -20% 
Domestic Motorcycle market share: 19.2% vs 18.6% (yoy) 
Export 2W: 577261 vs 608398, -5% 
Total CV: 132816 vs 112943, +18% 
Domestic CV: 52015 vs 34230, +52% 
Domestic market share of 71% 
Export CV: 80801 vs 78713, +3% 
For the calendar year 2021, exports, by volume exceeded 2.5 million units - highest ever. 

L&T Infotech: The Indian IT Service provider has reported a 10.9% QoQ rise in the consolidated profit at Rs 612 crore for the quarter ended December 31, 2021. It had posted a profit of Rs 552 crore posted in the previous quarter ended September 30, 2021. The company said that its revenue from operations grew 9.8% QoQ to Rs 4,137 crore against Rs 3,767 crore posted in the previous quarter. Its revenue in the dollars term also grew 8.6% QoQ to $55.3 crore as against $50.9 crore posted in September 2021 quarter. L&T Infotech’s EBIT grew 14.5% QoQ to Rs 742 crore as against Rs 648 crore posted in the previous quarter. Its margin improved marginally to 17.9% in Q3FY22 against 17.2% posted in Q2FY22. It has reported a 9.2% QoQ revenue growth in Constant Currency.

Best ever quarterly sequential growth since listing 

Verticals CC QoQ growth 

BFS 10.40% 

Insurance 2% 

Manufacturing 19.00% 

Geography CC QoQ growth 

North America 6.30% 

Europe 8.70% 

Attrition 22.5% vs 19.6% (QoQ)

Besides, the Board of Directors of the company has approved a scheme of amalgamation for the merger of three subsidiary companies namely PowerUpCloud Technologies Private Limited, Lymbyc Solutions Private Limited & Cuelogic Technologies Private Limited with itself. 

Oracle Financial Services Software Ltd.: The IT services company has reported a 2.7% QoQ decline in the consolidated profit at Rs 435 crore for the quarter ended December 31, 2021. It had posted a profit of Rs 447 crore in the previous quarter ended September 30, 2021. The company said that its revenue from operations fell 1.2% QoQ to Rs 1,266 crore against Rs 1,281 crore posted in September 2021 quarter. EBIT dropped 7.3% QoQ to Rs 561 crore against Rs 605 crore posted in the previous quarter. The company’s margin contracted to 44.3% in Q3FY22 against 47.2% posted in Q2FY22. Besides, the company in a statement said that its product business grew by 3%, services business de-grew by 4%. The company signed license deals of $15.6 million during this quarter while the attrition stood at 29% vs 25% (QoQ). 

Tata Communication: The telecommunications company has reported a 7.1% QoQ decline in the consolidated profit at Rs 395 crore for the quarter ended December 31, 2021. It has posted a profit of Rs 425 crore in the previous quarter ended September 30, 2021. The company said that its revenue from operations grew 0.3% QoQ to Rs 4,185 crore against Rs 4,174 crore posted in the previous quarter. Its EBITDA fell 2.6% QoQ to Rs 1,083 crore compared to Rs 1,112 crore posted in September 2021 quarter. Margin fell to 25.9% in Q3FY22 against 26.6% posted in Q2FY22. Besides, the company said that its data business revenue (77.3% of revenue) for the quarter came in at Rs 3,233 Crore witnessing a growth of 3.4% YoY and 3.0% sequential growth. Voice business revenue (13.2% of revenue) for the quarter came in at INR 554 Crore witnessing a de-growth of 17.8% YoY and 8.6% sequential de-growth. 

ICICI Lombard: The insurance company has reported a 1.2% YoY rise in the profit at Rs 318 crore for the quarter ended December 31, 2021. It had posted a profit of Rs 314 crore in the corresponding quarter last fiscal. The company’s total income grew 26% YoY to Rs 3,854 crore against Rs 3,058 crore posted last year. The Gross Direct Premium Income (GDPI) of the Company grew 16.5% to Rs 4,699 crore against Rs 4,034 crore posted last year. 

Syngene International: The company has reported a 2% YoY rise in the consolidated profit at Rs 104 crore for the quarter ended December 31, 2021. It had posted a profit of Rs 102 crore in the corresponding quarter of last fiscal. The company’s revenue from operation grew 10% YoY to Rs 641 crore as against Rs 585 crore posted last year. Its EBITDA grew 15% YoY to Rs 203 crore against Rs 177 crore posted last year. Margin improved to 31.65% in Q3FY22 against 30.2% posted in Q3FY21. Besides, the company has updated its revenue guidance from mid-teen to high teen growth while providing margin guidance of above 30%. It said its CapEx for FY22 is expected to be between Rs 5 to 6 billion.

NELCO: Security systems services company has reported a 55% QoQ rise in the consolidated profit at Rs 5.26 crore for the quarter ended December 31, 2021. It had posted a profit of Rs 3.4% in the previous quarter ended September 30, 2021. The company’s revenue from operations grew 18% to Rs 72 crore against Rs 61 crore posted in the previous quarter. Its EBITDA grew 26% QoQ to Rs 14.2 crore against Rs 11.26 crore posted in September 2021 quarter. The company’s margin stood at 19.75% in Q3FY22 against 18.45% posted in Q2FY22. 

CEAT: The tyre manufacturer has reported a consolidated loss of Rs 20 crore for the quarter ended December 31, 2021, compared to a profit of Rs 132 crore posted in the corresponding quarter last year. Its revenue from operations grew 9% to Rs 2,413 crore against Rs 2,221 crore posted last year. The company’s EBITDA declined 59% YoY to Rs 134 crore against Rs 327 crore posted last year. Its margin contracted to 5.54% in Q3FY22 against 14.74% posted in Q3FY21.

Mastek: The technology company has reported a 1.9% QoQ rise in the profits at Rs 73.6 crore for the quarter ended December 31, 2021. It had posted a profit of Rs 72.3 crore posted in the previous quarter ended September 30, 2021. The company’s revenue from operations grew 3.4% QoQ to Rs 552 crore against Rs 534 crore posted last year. EBIT grew 3.2% QoQ to Rs 105.6 crore against Rs 102.4 crore posted in September 2021 quarter. Margins stood at 19.1% in Q3FY22 against 19.2% posted inQ2FY22. Besides, the company added 25 new clients in Q3 and 12 months order backlog stands at Rs 1,271.3 crore. The board had declared an interim dividend of Rs 7 per share. 

AGS Transact Technologies IPO: The Rs 680 crore initial public offering (IPO) of AGS Transact Technologies, a payment solutions provider, was subscribed 0.88 times (88%) on Wednesday, the first day of subscription. The Non Institutional Investors portion was subscribed 1.02 times on the first day while the Retail Individual Investors (RIIs) portion was subscribed 1.32 times. The issue will remain open for subscription till Friday, January 21, 2022. The company has fixed a price band of the IPO at Rs 166-175 per share. The IPO is entirely an offer for sale (OFS) by a promoter and other selling shareholders. Retail investors can bid for a minimum of 85 equity shares and in multiples of 85 shares thereafter.

PTC India Financial: Three independent directors of the company, namely Kamlesh Shivji Vikamsey, Thomas Mathew T and Santosh B. Nayar, has resigned as Independent Directors on the Board of PTC India Financial Services with immediate effect citing instances of alleged serious lapses in corporate governance and compliance. They expressed displeasure about the lack of appropriate information being made available to the board. They raised questions on the loan worth Rs 125 crore sanctioned to NSL Nagapatnam Power. 

Aviation Stocks: Country’s aviation regulator on Wednesday said that domestic air passenger traffic increased 52.9% YoY to 1.12 crore in December 2021. It said, Indigo’s market share increased from 54.3% in November 2021 to 54.8% in December 2021. Its passenger load factor stood at 80.2% in December 2021 against 80.5% in November 2021. There was no change in SpiceJet’s market share which stood at 10.3% MoM while the passenger load factor declined MoM to 86% from 86.7%. Besides, Air India cancelled eight flights on India-US routes from Wednesday onwards due to the deployment of 5G internet in North America which could interfere with aircraft's navigation systems.

AstraZeneca / Panacea Biotech: The Drugs Controller General of India's (DCGI) Subject Expert Committee (SEC) on Wednesday recommended regular market authorisation to COVISHIELD and COVAXIN. This comes a few days after the SEC had sought more data from the COVID vaccine manufacturers- Serum Institute of India and Bharat Biotech for granting them full market approval for their vaccines. The SEC had asked both companies to submit more data to also study the vaccine’s efficacy and safety-related data thoroughly. The DCGI led SEC had held a meeting on Friday, January 14 to analyse the applications of Bharat Biotech and Serum Institute of India for full market approval of their vaccines. 

Piramal Enterprises: Piramal Pharma, part of the Piramal group, reportedly, has plans t to launch a baby care range under the 'Little's' brand. It has the aim to double sales of the consumer healthcare division to Rs 1,000 crores in the next 2-3 years.

Liquor Stocks: The Madhya Pradesh Cabinet has approved a reduction in retail prices of liquor by 20 per cent. It also decided to allow the sale of liquor at all airports in the state and select supermarkets in four big cities. The cabinet also gave its nod to granting home bar licenses to those earning Rs 1 crore or more annually. The home bar license will be issued at an annual fee of Rs 50,000. 

IFCI: The Board of Directors of the Company is scheduled to meet on January 25, 2022, to consider and approve the preferential issue of equity shares to the Government of India. It would raise up to Rs 100 crore through the issue.