Tata Steel Q3 profit jumps 54% YoY to Rs 1,753 crore, misses Street estimates

Q3 Results: Tata Steel’s Profit Surges As Acquisitions Start Paying Off

  • Revenue rose 23.2 percent to Rs.41,220 crore.
  • Operating profit increased 18 percent to Rs.6,723.4 crore.
  • Margin narrowed 70 basis points to 16.3 percent.

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Economictimes: Tata Steel Q3 profit jumps 54% YoY to Rs.1,753 crore, misses Street estimates

Consolidated revenue for December quarter jumped 23 per cent YoY to Rs.41,220 crore.

Tata Steel on Friday reported 54.31 per cent year-on-year (YoY) rise in profit at Rs.1,753 crore for December quarter, which fell short of Rs.2,289 crore net estimated by analysts in an ET Now poll.

The company had posted Rs.1,136 crore profit in the similar period last year.

Consolidated revenue for the quarter jumped 23 per cent YoY to Rs.41,220 crore, with India sales rising 41 per cent to Rs.22,063 crore, the company said in a regulatory filing.

Consolidated adjusted Ebitda rose 27 per cent to Rs.7,225 crore compared with Rs.5,671 crore in the corresponding quarter last year.

The liquidity position of the group remained robust at Rs.19,320 crore comprising of Rs.8,549 crore in cash and cash equivalents and Rs.10,771 crore in undrawn bank lines, the company added.

Commenting on the results, CEO & Managing Director TV Narendran said: “Despite a sharp drop in international steel prices, we were able to maintain our overall realisations and increase our volumes significantly in India. The integration of Tata Steel BSL continues and our 5 MTPA expansion at Kalinganagar is also making good progress. We are also looking forward to enhancing our long products and downstream capability through the acquisition of the 1 mtpa steel business of Usha Martin.”

In line with our strategy of divesting non-core assets and focusing on India, we have announced a divestment of a 70% stake in our SEA business and we continue to work on exploring similar opportunities across our portfolio, he added

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Commodities: The worst week this year; Chinese traders in focus on their return

Safe-haven buying pushed the dollar to levels above 96 after the U.S. president told reporters he would not meet Chinese President Xi before 1st March, reducing the likelihood of ending the trade war.

By Ravindra Rao – Head of Commodity Research & Advisory, Anand Rathi Commodities

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In the week gone by, commodities fell sharply due to the rising dollar. The yellow metal, although range-bound, skidded as traders bought the US dollar to safeguard their investments. Holdings of the SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell for a fifth straight session. The greenback rose sharply in the week gone by for a couple of reasons.

The US reported a sharp rise in non-farm payrolls on February 8, and a narrowed trade deficit this week. Moreover, the European Commission slashed its growth forecasts for the euro area’s big economies and warned that Brexit and the slowdown in China could worsen the outlook for crude oil.

Safe-haven buying pushed the dollar to levels above 96, after the US president told reporters he would not meet Chinese President Xi before 1st March, reducing the likelihood of ending the trade war.

Crude oil prices dipped after US inventories rose and as production levels in the country held at record levels, but OPEC-led supply cuts and the crisis in Venezuela supported markets.

Countering the rising US crude output and inventories are voluntary supply cuts led by the Organization of the Petroleum Exporting Countries (OPEC) aimed at tightening the market and propping up prices. Meanwhile, US sanctions against Venezuela’s oil industry are expected to knock out at least 500,000 barrels a day of crude exports.

Next week, Chinese markets will resume trading after celebrating the Lunar New year. Industrial metals may be weak due to the appreciating dollar. WTI Crude oil is poised to challenge the $50 psychological support on the lower side as US inventories have hit an all-time high once again.

Moreover, the Trump administration is confident that key ally Saudi Arabia will fill any oil-supply gap caused by US sanctions on Venezuela, with refineries along the Gulf Coast told not to expect any crude release from the Strategic Petroleum Reserve.

But Saudi officials have indicated no such plans, with OPEC in the midst of a production-cut accord aimed at boosting oil prices. The kingdom slashed its output to 10.21 million bpd in January, down almost 400,000 bpd from December’s levels.

Saudi Energy Minister Khalid al-Falih has said February?s output would fall even lower. Lastly, the yellow metal may experience profit-booking due to the rising dollar? nevertheless, $1,300 is a strong short-term support.

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Datamatics and AEP Ticketing win automated fare collection contract for Mumbai Metro

Datamatics Wins Automated Fare Collection Contract for Mumbai Metro Line 2A, 2B and 7

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The Consortium led by Datamatics Global Services Limited (DGSL) and AEP Ticketing solutions S.R.L, Italy (AEP), have been issued the Letter of Acceptance (LOA) for implementing Automatic Fare Collection (AFC) system for 52 stations of Mumbai Metro Line 2A (Dahisar to DN Nagar Metro), 2B (DN Nagar to Mankhurd Metro) and 7 (Andheri (E) to Dahisar) of the Mumbai Metro Rail project. The LOA was issued by Mumbai Metropolitan Region Development Authority (MMRDA) to the Consortium for approximately Rs. 160 crores.

The LOA between the Consortium and MMRDA was signed in the presence of Shri. R. A. Rajeev, IAS, Metropolitan Commissioner, MMRDA; Shri. Sanjay Waghmare Director(Systems), Metro PIU, MMRDA, Mr. O. P. Nebhnani, Officer on Special Duty(S&T), Metro PIU MMRDA, Dr. Lalit Kanodia, Chairman, DGSL, Shri Rahul Kanodia, Vice Chairman & CEO – DGSL; Shri Sanjeev Subhedar, EVP and Global Head Engineering Services and other top officials from MMRDA and DGSL.

On the occasion, Shri. R. A. Rajeev, IAS, Metropolitan Commissioner, MMRDA, said, “The ticketing system for the Mumbai Metro should be implemented taking into consideration ease of use for the commuters of the city of Mumbai. At the same time it should be state of art supporting future of the growing metro network and supporting upcoming fare media technologies.”

Commenting on the occasion, Dr. Lalit S. Kanodia, Chairman, Datamatics, said, “Over the years, Datamatics has invested and built expertise in Automated Fare Collection technology and has been a part of large global AFC mandates. We are headquartered in Mumbai and therefore winning Mumbai Metro project is special and a very proud moment for us.”

Automated Fare Collection (AFC) has been a focus area for Datamatics and over the last 25 years, the company has been instrumental in successfully executing over 25 marquee projects in the tier 1 metropolitan cities across the globe including Sydney, Hong Kong, London, Chicago, Melbourne, etc.

Rahul L. Kanodia, Vice Chairman & Chief Executive Officer, Datamatics, said, “Datamatics is the only Indian company to have AFC solution. We have put in our best efforts for making the Lucknow Metro a successful project and we are delighted to be a part of prestigious Mumbai Metro Line 2 and 7 projects.”

In India, Datamatics is also implementing AFC system for Lucknow Metro Project which includes design, supply, installation and end-to-end testing of the ticketing, gates, servers, hardware networks and software components. The first phase of this project has already gone live with 8 stations. This is the fastest rolled-out AFC system in India till date.

Sanjeev Subhedar, EVP & Head – Engineering Solutions, Datamatics, said, “Datamatics is committed to Indian customers to provide most advanced AFC solution suitable for Indian conditions within project timelines. Datamatics assures its customer of continued upgrades and long term support to protect the investment made by our customers.”

About Datamatics Global Services

Datamatics ( BSE: 532528) (NSE: DATAMATICS) provides Intelligent Solutions for data driven businesses to increase productivity and enhance customer experience. The company’s portfolio of service offerings spans across Information Technology Services, Business Process Management, Engineering Services and Big Data & Analytics all powered by Artificial Intelligence. It has established products in Robotics Process Automation, Advanced Analytics, Business Intelligence and Automated Fare Collection. Datamatics services over 500 customers globally across Banking & Financial Services, Insurance, Healthcare, Manufacturing, International Organizations and Media & Publishing. Headquartered in Mumbai, the Company has presence across 4 continents with major delivery centers in the USA, India and Philippines with an employee base of 10,000.

Safe Harbour

Some of the statements in this update that are not historical facts are forward-looking statements. These forward-looking statements include our financial and growth projections as well as statements concerning our plans, strategies, intentions and beliefs concerning our business and the markets in which we operate. These statements are based on information currently available to us, and we assume no obligation to update these statements as circumstances change. There are risks and uncertainties that could cause actual events to differ materially from these forward-looking statements. These risks include, but are not limited to, the level of market demand for our services, the highly-competitive market for the types of services that we offer, market conditions that could cause our customers to reduce their spending for our services, our ability to create, acquire and build new businesses and to grow our existing businesses, our ability to attract and retain qualified personnel, currency fluctuations and market conditions in India and elsewhere around the world, and other risks not specifically mentioned herein but those that are common to industry.

Source: Datamatics Global Services Ltd. PWR

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AIA Engg reports Q3FY19 net profit rose by 11% yoy

AIA Engineering Ltd’s Q3FY19 consolidated net profit rises 11% yoy to Rs.128.96cr : In-line with Estimates

  • Net profit rose by 11% y-o-y to Rs.128.96 crore from Rs.116.2 crore.
  • Revenue surged by 27% y-o-y to Rs.726.4 crore from Rs.572.2 crore.
  • EBITDA rose by 30.2% y-o-y to Rs.165.2 crore from Rs.126.9 crore.

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AIA Engineering Ltd’s Q3FY19 consolidated net profit rises 11% yoy to Rs.128.96cr : In-line with Estimates

The company’s consolidated revenue stood at Rs.726.44cr, up 26.96% yoy.

AIA Engineering Ltd reported Q3FY19 results almost in line with the estimates. Revenue grew by 27% yoy to Rs.726.44cr against Rs.572.16cr in Q3FY18. EBITDA for the quarter grew by 30.2% yoy to Rs.165.23cr against Rs.126.86cr, in line with the estimate of Rs.165cr. EBITDA margin grew by 58bps yoy to 22.8%. Net profit for the quarter grew by 11% yoy to Rs128.96cr against Rs.116.15cr last year, almost in line with the estimate of Rs.125cr.

• Mining segment sales grew by 23.9% yoy to 40,084 MT in Q3FY19 against 32346 MT in Q3FY18.
• The present installed capacity stands at 340,000 TPA.
• The company has planned to set up manufacturing plant of Mining Liner with estimated capex of Rs.250cr, which will add liner capacity of 50,000 MT per year.

Technical View:

AIA Engineering Ltd is currently trading at Rs.1,742.15, up by 82.95 points or 5% from its previous closing of Rs.1,659.20 on the BSE.
The scrip opened at Rs.1,742.15 and has touched a high and low of Rs.1,742.15 and Rs.1,742.15 respectively. So far 5 (NSE+BSE) shares were traded on the counter. The stock is currently trading below its 100 DMA.

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Phoenix Mills Q3 FY19 revenue rises by 6% y-o-y

Phoenix Mills Q3FY19 result, revenue up by 6%, margin stable

  • Revenue from operations at Rs.440.43 crore, up 6% y-o-y
  • EBITDA at Rs.222.47 crore, up 8% y-o-y with a corresponding margin expansion of 89 bps

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The Phoenix Mills Limited (PML), India’s largest retail-led mixed-use asset developer and operator, today reported its unaudited financial results for the third quarter and nine months ended on December 31, 2018 as approved by its Board of Directors.

“The Phoenix Mills Limited, India’s largest Retail mall developer and operator, has once again delivered a robust Q3 and 9M FY2019 performance, with our portfolio of Retail malls continuing to set a high benchmark. Consumption was up 10% in Q3FY19 to INR 18,879 mn and Retail Rental Income was up 16% at INR 2,565 million. Our Commercial and Hospitality businesses also had strong performance in Q3FY19.

We have commenced work at all three our under-development assets – at Hebbal Bengaluru and Pune & Palladium at Ahmedabad in Q3FY19. Work at Lucknow is going on in full swing while work at Indore should commence in Q4FY19.

We are well placed to achieve our target of 11-12 msft of operational retail portfolio by FY23. We continue to scout for opportunities in select Tier-1 under-served retail markets.” Mr. Shishir Shrivastava, Joint Managing Director, The Phoenix Mills Limited.

“We remain focused on creating long-term shareholder value through superior financial performance, maintaining a strong balance sheet, and efficiently allocating capital. Favourable consumption trends across our retail assets and our efforts to bring more operational efficiencies across the portfolio are visible in our financial performance and this augurs well for the company going ahead. We had strong EBITDA and PAT performance for Q3 and 9M; Cash flows from operations remained strong, and our blended cost of borrowing was at 9.29%.

We have very modest debt maturities of Rs. 2-3 bn per year over the next 3 years, which are backed by strong cash flows from our annuity-type assets.” said Mr. Pradumna Kanodia, Director – Finance, The Phoenix Mills Limited.

Shares of The Phoenix Mills Ltd was last trading in BSE at Rs.587.05 as compared to the previous close of Rs.571.25. The total number of shares traded during the day was 508 in over 108 trades.

The stock hit an intraday high of Rs.592 and intraday low of Rs.576.55. The net turnover during the day was Rs.297806.

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VIP Industries net profit falls by 11.4% y-o-y

vip-world-exclusive-bag-store-bapunagar-ahmedabad-bag-dealers-d2p3w.jpgV I P Industries Ltd’s Q3FY19 consolidated net profit declines 11.4% yoy to Rs.24cr

  • Net profit fell by 11.4% to Rs. 23.8 crore from Rs. 26.9 crore.
  • Revenue rose by 27.2% to Rs. 430 crore from Rs. 338 crore.
  • EBITDA dipped by 8.2% to Rs. 37.8 crore from Rs. 41.2 crore.

The company’s consolidated revenue stood at Rs.430cr, up 27.2% yoy and 7.0% qoq.

Consolidated Results Q3FY19: (Rs. in cr)

Q3FY19 YoY (%)
Revenue 430.09 27.2
EBITDA 37.81 [8.2]
EBITDA Margin (%) 8.8 [339]
Net Profit (adjusted) 23.83 [11.4]

***EBITDA margin change is bps

VIP Industries reported a disappointing set of numbers for Q3FY19 on EBITDA and PAT fronts. The consolidated revenue for the quarter, grew by 27.2% yoy and 7% qoq to Rs430cr. EBITDA came in at Rs38cr, down 8.2% yoy and down 26% qoq. EBITDA margin contracted by 339bps yoy and 392bps qoq to 8.8%. Consolidated PAT for the quarter declined by 11.4% yoy and by 27.4% qoq to Rs24cr.

  • Gross margins declined by 430bps yoy and 305bps qoq to 46.7%. The average polymer prices during the quarter have been declining, which is likely to have impacted the margins.
  • On yoy basis, other expenses declined by 143bps yoy but the same was higher by 66bps qoq. Employee cost was higher by 51bps yoy and 21bps qoq.
  • Depreciation expense increased by 30.2% yoy and 13.1% qoq to Rs.4cr. Interest expense increased from Rs0.1cr in Q3FY18 to Rs.0.7cr in Q3FY19.
  • Other income increased by 42.7% yoy and 34.3% qoq to Rs.2.7cr.

IIFL Technical View:

V I P Industries Ltd is currently trading at Rs.492.50, down by 22.25 points or 4.32% from its previous closing of Rs.514.75 on the BSE.
The scrip opened at Rs.512.05 and has touched a high and low of Rs.514 and Rs.479.35 respectively. So far 6,30,226 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 50 DMA.

Zydus gets approval from USFDA for seizure drug Carbamazepine

Zydus Cadila gets USFDA nod for drug to treat seizures

Carbamazepine is an anticonvulsant agent. It works by reducing excessive nerve signals in the brain and restoring the normal balance of nerve activity.

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Zydus Cadila on Friday said it has received final approval from the US health regulator to market Carbamazepine extended-release tablets, used to treat certain types of seizures.

Carbamazepine is an anticonvulsant agent. It works by reducing excessive nerve signals in the brain and restoring the normal balance of nerve activity.

Zydus Cadila has received the final approval from the United States Food and Drug Administration (USFDA) to market Carbamazepine extended-release tablets USP in the strengths of 100 mg, 200 mg, and 400 mg, the company said in a BSE filing.

Zydus Cadila said the drug will be produced at the group’s formulations manufacturing facility at Moraiya, Ahmedabad.

The group has more than 248 drug approvals, and so far filed over 350 abbreviated new drug applications (ANDAs) since it started filings in 2003-04.

Shares of Cadila Healthcare, the listed entity of the group, were trading 0.54 per cent up at Rs 323.60 apiece on BSE.

SPARC (Sun Pharma) gets GST notice for ₹46.04 crore

Sun Pharma Advanced Research Company (SPARC) has received an order from the Office of the Commissioner of GST & Central Excise demanding payment of service tax along with penalty and interest aggregating to 46.04 crore

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Sun Pharma Advanced Research Company (SPARC) has received an order from the Office of the Commissioner of GST & Central Excise demanding payment of service tax along with penalty and interest aggregating to 46.04 crore. However, the company will contest the demand and file an appeal against the order within the stipulated time, it said in a notice to the stock exchanges. Shareholders of SPARC will closely monitor the development.

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Britannia Q3 net profit rises by 14% yoy to Rs.300cr

Britannia Industries Ltd’s Q3FY19 consolidated net profit rises 13.8% yoy to Rs300.1cr : Misses Estimates

Consolidated Results Q3FY19: (Rs. in cr)

Q3FY19 YoY (%)
Revenue 2,842.4 10.7
EBITDA 451.8 13.4
EBITDA Margin (%) 15.9 38
Net Profit (adjusted) 300.1 13.8

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The company’s consolidated revenue stood at Rs.2,842.4cr, up 10.7% yoy but flat sequentially

Britannia Industries reported healthy set of numbers for the quarter, marginally below the estimates. Company reported revenue growth of 10.7% yoy to Rs.2,842.4cr, broadly in-line with estimates. Gross margin for the quarter expanded by 261bps yoy to 41.3%, primarily aided by premiumisation. EBITDA grew by 13.4% yoy to Rs.451.8cr (5% below estimates) and EBITDA margin expanded marginally by 38bps yoy to 15.9% (estimate 16.5%). PAT was up 13.8% yoy to Rs.300.1cr, 5% lower than estimates.

  • Company reported healthy revenue growth for the quarter primarily led by widening of distribution network (through focus on direct reach, rural market and weak states) and product innovation.
  • Company continued its premiumisation and innovation journey and launched Whole Wheat Vita MarieGold, Good Day Cashew Almond and renovation of 50-50 & Tiger Creams. Company also filled gaps in Cakes business with launch of Swiss Rolls and Layer Cakes.
  • Greenfield unit in Nepal is progressing on time and is expected to be commissioned in Q4FY19E.
  • Depreciation and interest costs were up by 28.9% and 16.9% yoy respectively.
  • Other income for the quarter was up by 66.9% yoy to Rs60cr.
  • Tax rate for the quarter stood at 35.5%, 160bps higher than the base quarter.

IIFL Technical View:

Britannia Industries Ltd is currently trading at Rs.3,133.95, down by 78.85 points or 2.45% from its previous closing of Rs.3,212.80 on the BSE.
The scrip opened at Rs.3,185.10 and has touched a high and low of Rs.3,202 and Rs.3,103 respectively. So far 5,00,942 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 50 DMA.

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Grasim Q3 net profit rises by 28% y-o-y

Grasim Q3 net profit rises by 28% y-o-y

  • Net profit rose by 28.3% y-o-y to Rs.608 crore from Rs.474 crore.
  • Revenue surged by 20.9% y-o-y to Rs.5,293 crore from Rs.4,377 crore.
  • EBITDA advanced by 19.3% y-o-y to Rs.1,053 crore from Rs.882 crore.

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Grasim Industries Ltd’s Q3FY19 standalone net profit rises 28.3% yoy to Rs.608.2cr : In-line with Estimates.

The company’s standalone revenue stood at Rs5,292.9cr, up 20.9% yoy and 3.4% qoq.

Grasim Industries Ltd Q3FY19

Standalone Results Q3FY19: (Rs. in cr)

Q3FY19 YoY (%)
Revenue 5,292.9 20.9
EBITDA 1,052.6 19.3
EBITDA Margin (%) 19.9 [27]
Net Profit 608.2 28.3

Grasim (Standalone) reported a healthy set of numbers for the quarter, broadly in-line with the estimates. Revenue for the quarter was up 20.9% yoy to Rs.5,292.9cr, in-line with consensus estimates. EBITDA grew 19.3% yoy to Rs.1,052.6cr, with a marginal contraction of 27bps yoy in EBITDA margin, which stood at 19.9%. Aided by higher other income and lower tax outgo, the PAT was up 28.3% yoy to Rs.608.2cr.

  • Consolidated revenue and EBITDA were up 21.5% and 45.4% on yoy basis respectively.
  • The VSF business reported net revenue of Rs.2,616.7cr, up 19.6% yoy with EBITDA at Rs.477cr, up 3% yoy. The share of domestic sales volume in the overall sales volume improved to 89% in Q3FY19 from 77% in Q3FY18.
  • The VSF business reported sales volume of 134KT, up 1% yoy in Q3FY19. The 7% increase in VSF realization on yoy basis was offset by higher input costs. The prices of key inputs, pulp, sulphur and coal were up by 12%, 28% and 9% yoy respectively. Company launched Livaeco, an eco-enhanced variant of brand Liva.
  • Chemical segment’s net revenue for the quarter grew 18.6% yoy to Rs.1,558.5cr with a 23% yoy jump in EBITDA to Rs441cr. The strong growth was driven by better realization and higher sales volume (10% yoy growth to 250KT). The phosphoric acid plant of 29KTPA at Vilayat (Gujarat) has been commissioned in last quarter and the ramp up from that is expected by Q4FY19E.
  • Pulp segment’s revenue was up 23% yoy to Rs.912cr, however, EBITDA declined by 4% yoy to Rs.92cr on account of rise in input costs.
  • UltraTech had reported a growth 18.9 yoy in consolidated sales to Rs.9389.6cr driven by 14% yoy volume growth. However, PAT was down by 14.5% yoy.
  • ABCL reported a robust financial performance in Q2FY19 with a consolidated revenue of Rs.3,780cr and PAT (after minority interest) of Rs.206cr. The lending book (including housing) grew 29% yoy to Rs.60,129cr in Q3FY19 and AUM grew 8% yoy.

IIFL Technical View:

Grasim Industries Ltd is currently trading at Rs.714.50, down by 38.7 points or 5.14% from its previous closing of Rs.753.20 on the BSE.
The scrip opened at Rs.756 and has touched a high and low of Rs.764.80 and Rs.709.60 respectively. So far 41,78,831 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 200 DMA.

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Bajaj Electricals reports Q3FY19 results

Bajaj Electricals Q3 profit soars 73% to Rs 64 crore

  • Net profit rose by 73.6% y-o-y to Rs. 64 crore from Rs. 37 crore.
  • Revenue surged by 88.8% y-o-y to Rs. 2,162 crore from Rs. 1,145 crore.
  • EBITDA increased by 96% y-o-y to Rs. 138 crore from Rs. 70 crore.

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Total income was also up at Rs 2,161.83 crore during the quarter under review, from Rs 1,145.13 crore in the year-ago period.

Bajaj Electricals on Thursday posted 73.55 per cent rise in standalone net profit at Rs 63.92 crore for October-December 2018 led by a robust performance in consumer products and EPC segments. It reported a profit of Rs 36.83 crore in the same period a year ago, Bajaj Electricals said in a BSE filing.

Total income was also up at Rs 2,161.83 crore during the quarter under review, from Rs 1,145.13 crore in the year-ago period.

“The current quarter has been extremely good for the company, with both business segments – Consumer Products (CP) and EPC – registering a robust performance,” Chairman and Managing Director Shekhar Bajaj said.

Total expenses were at Rs 2,067.33 crore as against Rs 1,097.51 crore in the year-ago period.

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Revenue from CP segment was at Rs 760.58 crore as against Rs 600.18 crore earlier.

Engineering, procurement and construction (EPC) segment stood at Rs 1,401.18 crore in the latest quarter against Rs 544.91 crore in the year-ago period.

“EPC segment performance is driven by fast execution of UP power distribution projects, which have resulted in top line growth of over 157 per cent against the corresponding quarter of the previous year,” he said.

According to Bajaj, the current order book of EPC segment stands at Rs 5,787 crore, comprising Rs 1,004 crore for transmission line towers, Rs 4,657 crore for power distribution and Rs 126 crore for illumination projects.

The company also informed BSE that its board has approved a proposal to raise Rs 200 crore by issuing unsecured listed redeemable non-convertible debentures (NCDs) on private placement basis.

Shares of Bajaj Electricals on Thursday settled at Rs 518.80 per scrip on BSE, up 9.44 per cent from the previous close.

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Cadila Healthcare Q3 profit falls 6% to Rs 511 crore

Cadila Healthcare on Thursday reported 6% dip in consolidated net profit to Rs.510.7 crore for December quarter 2018

  • Revenue up 10% to Rs. 3,578 crore.
  • Net profit down by 6% to Rs. 511 crore.
  • Ebitda down by 1% to Rs. 841 crore.
  • Margin at 23.5% versus 26.3%.

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Total revenue, however, rose to Rs.3,608.9 crore for the latest quarter as against Rs.3,285.6 crore in the same period of 2017-18.

Cadila Healthcare on Thursday reported 6% dip in consolidated net profit to Rs 510.7 crore for December quarter 2018, mainly on account of rise in expenses. It had posted a net profit of Rs 543.3 crore in the corresponding period of the previous fiscal, the drug firm said in a filing to BSE.

Total revenue, however, rose to Rs.3,608.9 crore for the latest quarter as against Rs.3,285.6 crore in the same period of 2017-18.

Stock of Cadila Healthcare settled at Rs.323 on BSE, up 1.46 per cent from the previous close.

 

MRF Ltd’s Q3FY19 standalone net profit declines 18% yoy to Rs.279cr: Misses Estimates

  • Net profit fell by 18% to Rs. 279.3 crore from Rs. 340.5 crore.
  • Revenue rose by 6.2% to Rs. 4,034 crore from Rs. 3,799 crore.
  • EBITDA dipped by 21.5% to Rs. 552 crore from Rs. 703 crore.

MRF.jpg

MRF Shares dipped 1% after India’s largest tyre manufacturer reported lower-than-expected numbers on revenue, PAT, EBITDA margin, and EBITDA fronts.

MRF Ltd Q3FY19

Standalone Results Q3FY19: (Rs. in cr)

Q3FY19 YoY (%)
Revenue 4,033.76 6.2
EBITDA 551.85 [21.5]
EBITDA Margin (%) 13.7 [483]
Net Profit (adjusted) 279.26 [18.0]

Shares of MRF fell 1% in intraday trade on Thursday after the tyre major posted Q3 numbers below street estimates. Shares dipped below the Rs.60,000 mark after it posted a net profit decline of 18%.

India’s largest tyre manufacturer MRF Limited (MRF) reported lower-than-expected numbers in Q3FY19. Standalone revenue was up 6.2% yoy (4% qoq) at Rs.4,034cr, lower than the consensus estimate of Rs.4,179cr. EBITDA was down 21.5% yoy (up 1% qoq) at Rs.552cr. EBITDA margin contracted 483bps yoy and 35bps qoq to 13.7%. Read more.

MRF Ltd is currently trading at Rs.59,150 down by Rs.902.65 or 1.5% from its previous closing of Rs.60,052.65 on the BSE.

The scrip opened at Rs.60,060 and has touched a high and low of Rs.60,812.90 and Rs.59,090 respectively. So far 23,627 (NSE+BSE) shares were traded on the counter.

IIFL Technical View:

MRF Ltd is currently trading at Rs.60,019.10, down by 33.55 points or 0.06% from its previous closing of Rs.60,052.65 on the BSE.
The scrip opened at Rs.60,060 and has touched a high and low of Rs.60,812.90 and Rs.59,090 respectively. So far 19,338 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 200 DMA.

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Arvind Q3 net profit rises by 49.2% y-o-y

Textile and apparel player Arvind Ltd today reported 13.32% increase in consolidated net profit to Rs 64.31 crore

  • Revenue down by 0.6% y-o-y to Rs. 1,680.3 crore.
  • Net profit down by 49.2% y-o-y to Rs. 40.1 crore.
  • Ebitda down by 12% y-o-y to Rs. 149.6 crore.

Arvind.png

Its total income during the quarter under review stood at Rs 2,874.59 crore. It was Rs 2,608.28 crore in the year-ago quarter, Arvind Ltd said in a BSE filing.

Textile and apparel player Arvind Ltd today reported 13.32% increase in consolidated net profit to Rs.64.31 crore for the first quarter ended June 30, 2018-19. The company had posted a net profit of Rs.56.75 crore in the April-June quarter of 2017-18.

Its total income during the quarter under review stood at Rs.2,874.59 crore. It was Rs.2,608.28 crore in the year-ago quarter, Arvind Ltd said in a BSE filing.

It said revenue from operations, part of total income, for the first quarter of the current fiscal is not comparable with that of the year-ago period.

“Post implementation of Goods and Service Tax (GST) with effect from July 1, 2017, revenue from operations is disclosed net of GST. Revenue from operations for the quarter ended June 30, 2017 included excise duty which is now subsumed in the GST. Revenue from operations for the year ended March 31,2018 includes excise duty up to June 30, 2017,” it added.

The company stock was trading 0.79 per cent up at Rs.423.45 on BSE in the afternoon.

MoneyControl: Q3 earnings scorecard: 10 stocks where global brokerages raised target price post results

earnings_-770x433.jpgThe December quarter results reported by India Inc. were a mixed bag, but largely on the positive side and that is one reason we have not seen any major knee-jerk reaction in equity market as well.

Of the 34 Nifty companies that have announced their earnings, 25 have either met or exceeded consensus estimates on both the PAT and EBITDA front. The earnings upgrade/downgrade ratio is over 1, Motilal Oswal said in a report.

“The December quarter earnings have been a mixed bag. We believe banks (both private and PSU banks) delivered yet another strong QoQ performance with improved asset quality and strong credit growth,” Jayant Manglik, President Religare Broking told Moneycontrol.

“Further, sectors like FMCG, IT and Capital Goods performed largely in-line with estimates with margin pressure witnessed across these sectors. However, the Auto companies’ results so far, have disappointed with pressure witnessed on volume growth as well as on margins,” he said.

Weak margins have impacted earnings for the 52/100 BSE-100 companies that have reported their results for the quarter ended December, Citigroup highlighted in a report.

Earnings expectations for FY19E have seen downgrades on a year-to-date (YTD) and now stand at 12-14% YoY for NIFTY. The global investment bank maintains its Sensex target at 39,000 (16x Mar-20 P/E).

Significantly more companies ‘beat’ earnings than ‘missed’. As many as 28 out of 52 ‘beats’ expectations compared to 14 out of 52 which ‘missed’. Similar trends across Revenue/EBITDA performance as well.

Among sectors, materials (cement, base metals) and energy (better than expected refining performance) sector positively surprised expectations while consumer discretionary (auto) and utilities have disappointed the most, said the Citi report.

Here is a list of 10 stocks where global brokerage firms raised their target price post December quarter results:

IGL: Buy| Target raised to Rs 330 from Rs 315

Deutsche Bank maintained a buy rating on IGL post December quarter results but raised its target price to Rs 330 from Rs 315 earlier.

The global investment bank also increased FY20-21 earnings estimates by 3 percent. It forecast 18 percent CAGR for FY18-20 EPS, driven by a 14 percent CAGR rise in volumes. The company is well placed to benefit from expansion in new areas.

Tech Mahindra: Outperform| Raised target to Rs 950 from Rs 925

Credit Suisse maintained its outperform rating on Tech Mahindra and raised its target price to Rs 950 from Rs 925 earlier.

The IT major reported a 13 percent sequential rise in Q3 profit at Rs 1,203 crore. The company reported 27.5 percent year-on-year (YoY) rise in consolidated net profit.

After many quarters of sluggishness, the mainstay of telecom and communications vertical reported a 2.6 percent growth in revenues during the reporting quarter over the preceding one, while the enterprise segment grew 4 percent.

The telecom story has started to pan out. It is a well-placed stock despite good performance, said the note. The valuations look reasonable at current levels.

Marico: Outperform| Raised target to Rs 400 from Rs 380 earlier.

Credit Suisse maintained its outperform rating on Marico post December quarter results and raised its target price to Rs 400 from Rs 380 earlier.

The FMCG major reported a steady Q3 and looks poised for a strong margin expansion in FY20.In terms of products, Parachute leads growth despite not dropping prices. The gross margin is poised to see a Year-on-year (YoY) expansion in FY20.

Aditya Birla Fashion: Buy| Target raised to Rs 265 from Rs 240 earlier

CLSA maintained its buy on Aditya Birla Fashion but raised target price to Rs 265 from Rs 240 earlier.

Strong Pantaloons same-store-sales (SSS) growth came as a surprise. The Q3 revenue was up 23 percent driven by strong SSS growth. Margin expanded even with a contraction in gross margin and higher A&P spend, said the note. The innerwear business continues to grow rapidly. The global investment bank raised FY19 PAT estimates to Rs 1,73.6 crore from Rs 114.6 crore.

Titan Company Ltd: Outperform| Target raised to Rs 1,175 from Rs 935

Credit Suisse upgraded Titan to outperform from neutral post the earnings and raised target price to Rs 1,175 from Rs 935 earlier.

The global investment bank also raised earnings estimates by 3-10 percent. It sees tailwinds for the stock from a strong wedding season. Higher gold prices aid an already strong growth trajectory, said the note.

State Bank of India: Buy| Target raised to Rs 380 from Rs 370 earlier

CLSA retained its buy call but raised the target price to Rs 380 from Rs 370 earlier.

SBI is the preferred pick among PSUs, said the note from CLSA. The profit was ahead of estimates which was aided by higher treasury gains. The key positive was the decline in slippages.

Dr. Reddy’s Laboratories Ltd: Outperform| Target raised to Rs 3200 from Rs 2850

CLSA retained outperform rating on the company and raised target price to Rs 3,200 from Rs 2,850 earlier.

The cost controls continue to deliver, and a revival in the US growth in FY20 will be a key catalyst. The earnings beat was largely driven by cost-control initiatives.

The US sales improved by 4 percent on a quarter-on-quarter (QoQ) basis and US pricing dynamics remained stable. The global investment bank increased FY19-21 EPS estimates by 2-9 percent.

ICICI Bank: Outperform| Target raised to Rs 460 from Rs 416

Macquarie maintained outperform rating on ICICI Bank and raised the target price to Rs 460 from Rs 416 earlier.

The private sector lender displayed a strong asset quality performance, while other operational parameters were stable. The management foresees FY20 credit costs between 85 bps and 125 bps. It is a preferred play on the ‘normalisation of credit costs’ theme, said the report.

Asian Paints: Outperform| Target raised to Rs 1580 from Rs 1180 earlier

Macquarie upgraded the stock to outperform from neutral earlier and also raised its target to Rs 1,580.

The volume growth picks up significantly, and the volume growth outlook has also improved which is a big positive. The recent price increases with falling input costs will improve margins.

The global investment bank raised FY19-21 EPS estimates by 7-16 percent. However, the full effect of lower GST rates yet to play out.

Havells India: Outperform| Raised target to Rs 775 from Rs 720 earlier

CLSA maintained an outperform rating on Havells India but raised its target price to Rs 775.

The revenue growth surprised across categories. Large channel inventory in the AC industry remains a concern. Revenue from switchgear division was Rs 416.2 crore as against Rs 344.3 crore in the third quarter of the financial year 2017-18.

The cable division revenue grew to Rs 820.3 crore as compared to Rs 625.6 crore in the year-ago period.

Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.