Stocks in Focus on January 31: IndusInd Bank, Larsen & Toubro, Britannia, NTPC, AMCs and many more

Stock markets closed with small losses on Friday, January 28, 2022. The barometer index, the S&P BSE Sensex, fell 76.71 points or 0.13% at 57,200.23. The Nifty 50 index slipped 8.20 points or 0.05% at 17,101.95. But certain stocks came in the news after the market was closed. These stocks can impact the indices when it reopens on Monday, January 31, 2022. List of such five stocks:

Q3FY22 Earnings

IndusInd Bank: The private sector lender IndusInd Bank has reported a 50% YoY rise in the profits at Rs 1,242 crore for the quarter ended December 31, 2021. It had posted a profit of Rs 830 crore in the corresponding quarter of the previous fiscal. The bank's net interest income (NII) grew 11% YoY to Rs 3,793 crore compared to Rs 3,406 crore posted last year. Net Interest Margin (NIM), a gauge for profitability, was at 4.10% marginally low of third-quarter 2020-21 when NIM stood at 4.12%. The Gross NPA ratio was at 2.48% as of December 31, 2021, versus 2.77% as of September 30, 2021. The net NPA ratio was at 0.71% as of December 31, 2021, against 0.80% on September 30, 2021. The private lender's slippage fell 8.49% QoQ to Rs 2,598 crore in Q3FY22 from Rs 2,658 crore posted in Q2FY22. 

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Larsen & Toubro (L&T): Engineering and construction giant Larsen & Toubro have reported a 16.7% YoY decline in the consolidated net profit of Rs 2054.74 crore for the quarter ended December 31, 2021. It had posted a profit of Rs 2466.71 crore in the same quarter last year. Profit dip due to large base effect on the sale of E&A business. The revenue from operations came in at Rs 39,5623 crore, up 11.1% against Rs 35,596.4 crore in the corresponding quarter last year. EBITDA grew 5.9% YoY to Rs 4,530.4 crore compared to Rs 4,280 crore posted last year. Margins stood at 11.5% in Q3FY22 against 12% reported in Q3FY21. The Company bagged orders worth Rs 50,359 crore during the quarter, registering a decline of 31% YoY compared to the corresponding period in the previous year. The decline is coming on a much larger base due to the high-speed rail corridor awarded last year. Last year base was high due to a Bullet train order worth Rs 28,300 crore. The consolidated order book of the group was at record levels of Rs 3.40 lakh crore, with international orders having a share of 24 per cent. 

Outlook 

- With improved government finances, expect strong activity levels in Q4 

- Improved macro environment as Indian economy re-integrates back to normal 

- Enhanced Public Capex key to economic revival 

- Return of Private Capex to compliment growth 

- Divestments of non-core businesses a priority 

Britannia: Biscuit maker Britannia Industries has reported an 18.4% YoY decline in the consolidated profit at Rs 369.2 crore for the quarter ended December 31, 2021. It had posted a profit of Rs 452.6 crore in the same quarter last year. Revenue from operations grew 12.9% YoY to Rs 3,575 crore compared to Rs 3,165.6 crore posted last year. EBITDA fell 11.7% YoY to Rs 539.7 crore compared to Rs 611.5 crore posted last year. Margins down to 15.1% in Q3FY22 compared to 19.3% posted in Q3FY21.   

Management Says   

- Volume Growth High single Digit v/s Expectation of 4 to 6% ( It Seems 5 to 6%).

- Rural markets across FMCG witnessed a significant slowdown.

- Commodity prices up 4% sequentially and 20% YoY.

- The company has taken price hikes to mitigate inflation. 

 NTPC: The country’s largest power generator NTPC Ltd has reported a 24.6% YoY rise in the standalone profit at Rs 4,132 crore for the quarter ended December 31, 2022. It had posted a profit of Rs 3,315 crore in the corresponding quarter of last year. Revenue from operations grew 18% to Rs 28,865 crore compared to Rs 24,509 crore posted last year. EBITDA grew 23% YoY to Rs 9,062 crore compared to Rs 7,367 crore posted last year.

- Strong power generation (up 11%) boosts earnings 

- Control on costs helps operational earnings 

- Total capacity rises by 4782 MW to 67,758 MW 

- Plant load factor rises to 57% 

Besides, the company's board of directors has approved an interim dividend of Rs 4 per equity share and fixed February 21, 2022, as the record date for the purpose. In addition to this, the Board has also accorded approval for Asset Monetization Proposal to hive-off the identified Renewable Energy Assets of NTPC along with NTPC Renewable Energy Limited (NTPC REL) to a wholly-owned Company and carry out monetization of the wholly-owned Company through IPO or strategic investment route, subject to requisite approvals/clearances.

BEL: Defence PSU Bharat Electronics Limited (BEL) has reported a 2.2x rise in the standalone profit at Rs 583.4 crore for the quarter ended December 31, 2021. It had posted a profit of Rs 262 crore in the corresponding quarter last year. Revenue from operations grew 61% YoY to Rs 3,693.7 crore compared to Rs 2,296.2 crore posted last year. EBITDA grew 86.7% YoY to Rs 822.1 crore compared to Rs 440.4 crore posted last year. Margins grew to 22.3% in Q3FY22 compared to 19.2% posted in Q3FY21.  

- Strong earnings due to low base of last year 

- Higher other income boosts profit 

- Higher execution drives revenue 

- Total order book stands at Rs 56,568 crore

Furthermore, the board has also declared an interim dividend of Rs 1.50 per equity share for FY2021-22. The board has fixed Thursday, February 1, 2022, as the record date for the purpose of payment of interim dividends on equity shares for the FY2021-22. The board has also approved the increase in the authorised capital of the company to Rs 750 crore from its existing Rs 250 crore.

Marico: FMCG major Marico has reported a 1.6% YoY rise in the consolidated profit at Rs 317 crore for the December 2021 quarter as against a profit of Rs 312 crore posted in the same quarter last year. Revenue from operations came in at Rs 2,407 crore, up 13.4% YoY against Rs 2,122 crore posted last year. EBITDA grew 4.3% YoY to Rs 431 crore compared to Rs 413 crore posted last year. Margins dropped to 17.9% in Q3FY22 from 19.5% posted in Q3FY21.   

India Business   

- Revenues grew 11.7% YoY to Rs 1817crore against Rs 1627 crore posted last year. 

- EBIT down 5.2% to Rs 308 crore against Rs 325 crore posted last year.

- Margins 17% v/s 20%.

International Business 

- Revenues up 19.2 % to Rs 590 crore against Rs 495 crore posted last year.

- EBIT Up 40.6% to Rs 135 crore against Rs 96 crore posted last year.

- Margins 22.9% v/s 19.4%.

- Board Declares Second interim dividend of Rs 6.25 per share. 

Management Commentary  

- Volume growth was flat  

- FMCG market volumes moderated, especially in rural  

- Inflation squeezing consumer wallets  

- Parachute Volume growth 1%, value growth 8%  

- Copra prices correct further from late Dec’21 | soft outlook in Q4  

- In Parachute ~~ 5-7% Medium-term volume growth Aspiration  

- VAHO ~ 3% Value growth  

- Saffola~ Value growth 19%, Saffola foods growth 28% 

UBL: United Breweries Ltd (UBL), majorly owned by Dutch multinational brewing company Heineken NV, has reported a 28% YoY decline in the consolidated profit at Rs 91 crore for the December 2021 quarter against a profit of Rs 127 crore posted in the corresponding quarter last year. However, the company's adjusted profit grew 28% YoY to Rs 91 crore against Rs 71 crore posted last year (exceptional gain of 55 last year). Revenue from operations grew 23% YoY to Rs 1,583 crore compared to Rs 1,291 crore posted last year. EBITDA was flat at Rs 174 crore. Margin contracted to 11% in Q3FY22 compared to 14% posted in Q3FY21. 

- Non-alcoholic segment grew 35% YoY 

- Full recovery, Volumes back to pre-COVID 

- Q3 VOLUMES +19% VS LAST 

Oberoi Realty: Mumbai-based Oberoi Realty has reported a 63% YoY rise in the consolidated profit at Rs 467.5 crore for the December 2021 quarter against a profit of Rs 286.7 crore posted in the corresponding quarter last year. Revenue from operations grew marginally by 0.4% YoY to Rs 832 crore compared to Rs 828.4 crore posted last year. EBITDA fell 13.3% YoY to Rs 331.6 crore in December 2021 quarter against Rs 382.5 crore posted last year. MARGIN contracted to 39.9% in Q3FY22 against 46.2% posted in Q3FY21. Rise in other income, fall in other expenses boost profit.

AU Small Finance Bank: The bank has reported a 68% YoY rise in the profits at Rs 302 crore for the December 2021 quarter against a profit of Rs 180 crore posted in the corresponding quarter last year. Net interest income (NII) grew 30% YoY to Rs 820 crore compared to Rs 633 crore posted last year. Its gross non-performing assets ratio was at 2.6% at the end of December 2021 as against 3.2% posted in September 2021 quarter. Net NPA stood at 1.3% against 1.7% posted in September 2021 quarter. 

- Disbursements increased 33% YoY & 60% QoQ to Rs 8152 crore  

- Collection Efficiency for Q3'FY22 is 106% 

- Write-off: Rs 39 crore Vs Rs 86 crore

- AU Bank welcomes Shri H R Khan, ex-Deputy Governor of RBI, as an Independent Director.

IDFC First Bank: The private sector bank IDFC First Bank has reported a 117% YoY rise in the profits at Rs 281 crore for the December 2021 quarter against Rs 130 crore posted in the corresponding quarter last year. Net interest income (NII) grew by 36% to Rs 2,580 crore in the reported quarter against Rs 1,892 crore posted last year. Net interest margin (NIM) stood at 5.9% in Q3FY22 compared to 5.76% posted in Q3FY21. Provisions other than tax were lower by 32% to Rs 392 crore as against Rs 574 crore in the same quarter a year. The bank’s gross non-performing assets (NPAs) or bad loans declined to 3.96% of the gross advances as of December 31, 2021, as against 4.27% posted in the previous quarter. Net NPA fell to 1.74% in Q3FY22 from 2.09% posted in Q2FY22.

Max Financial: Life insurance company Max Financial Services profit fell 60% YoY to Rs 91 crore for the quarter ended December 31, 2021, as against Rs 227 crore posted in the corresponding quarter last year. Total income declined 22% YoY to Rs 6,954 crore as against Rs 8,990 crore posted last year. 

MCX: Leading commodity bourse MCX on Saturday posted a 52% YoY decline in consolidated net profit to Rs 34.5 crore for the third quarter of 2021-22. It had posted a profit of Rs 71.8 crore in the corresponding quarter last year. Revenue from operations fell 11.2% to Rs 89.5 crore in the period under consideration as against Rs 101 crore posted last year. EBITDA declined to Rs 38.3 crore against Rs 48.7 crore posted last year. Margins dropped to 42.7% in Q3FY22 against 48.2% posted in Q3FY21. Average Daily Turnover down 25% to Rs 24,556 crore.

Info Edge: The leading internet company Info Edge has reported a 96.1% QoQ decline in the standalone profit at Rs 329 crore for the December 2021 quarter against Rs 8,356 crore posted in the previous quarter ended September 2021. Adjusted profit grew 6.9% QoQ to Rs 108 crore compared to Rs 101 crore posted in September 2021 quarter. Revenue from operations grew 14.5% QoQ to Rs 403 crore against Rs 352 crore posted in the previous quarter. EBITDA grew 5.6% QoQ to Rs 112 crore against Rs 106.1 crore posted last year. Margin contracted to 27.8% in Q3FY22 from 30.1% posted in Q2FY22. Exceptional Items fell 97.7% to Rs 218 crore against Rs 9,294 crore. 

Management Commentary 

- Since our IPO 15 years ago, IT Hiring has never been as bullish as it is now and it shows no signs of slowing down. 

- This is the third quarter in a row that has witnessed stellar billing growth and great momentum, particularly in the Recruitment business.

Stocks in News

TCI Express: The company has reported a 4.5% YoY rise in the profits at Rs 35 crore for the December 2021 quarter against a profit of Rs 34 crore posted in the corresponding quarter last year. Revenue from operations grew 9% YoY to Rs 287 crore against Rs 262 crore posted last year. EBITDA grew 4.8% to Rs 49 crore in Q3FY22 against Rs 47 crore posted in Q3FY21.

Shriram City Union: The company has reported a 4.6% YoY rise in the profit at Rs 293 crore for the December 2021 quarter against Rs 280 crore posted in the corresponding quarter last year. Net Interest Income (NII) grew 15% to Rs 1,053 crore against Rs 918 crore posted last year. Net Interest Margin (NIM) grew to 13.4% in Q3FY22 from 13.1% posted in Q3FY21. GNPA grew to 7.3% in the reported quarter against 6.9% posted in the previous September 2021 quarter. NNPA stood at 3.98% in Q3FY22 against 3.47% posted in Q2FY22. Disbursements grew 23% to Rs 7630 crore from Rs 6197 crore posted in the previous quarter. 

Motilal Oswal / AMCs In Focus: A ban on taking investment for making foreign investment imposed on mutual funds industry. The restriction was imposed as an industry investment limit of $7 billion is nearing. SEBI alone cannot raise the limit. RBI and government will decide whether to increase the limit further or not

Hinduja Global Solutions: The company has announced that its subsidiary, HGS International Mauritius, has entered into a definitive agreement to acquire a 100 per cent equity stake (21,980 shares) in Diversify Offshore Staffing Solutions Pty Ltd. (Diversify), Australia for Rs 210 crore. The transaction is expected to close within 30-35 days. Diversify is an Australian enterprise, providing value-added BPM services, with delivery operations in the Philippines. It provides differentiated consumer engagement solutions to its impressive roster of over 50 clients, 70 per cent of whom are in the Australia & New Zealand (ANZ) region and the others in the US.

Century Plyboards: The Company has bagged a contract worth Rs 200 crore to modernise and mechanise a cluster of six berths in Kolkata's Khidderpore Docks on a build-operate-own-transfer basis. Once fully operational, these berths under KPD -1 (West), will create additional port capacity in eastern India by installing mechanised systems to handle containers as well as clean bulk cargo The project will be the first instance of a public-private-partnership in the Kolkata Dock System.

Apollo Hospitals: Apollo Hospital's pharmacy unit sell products on Amazon.

Saregama: The company has plans to invest Rs 750 crore in the music business. It aims for 25-30% growth in income. 

Rolex Rings: ICICI Prudential Mutual Fund has increased its stakes in the company from 4.96% to 5.013%.