Author: Raghuveer

Oil and Natural Gas Corporation (ONGC) reported a more than 34% decrease in net profit for the June quarter, attributed to lower oil prices and reduced output. The company’s net profit was Rs 10,015 crore in the first quarter of the current fiscal year (2023-24), compared to Rs 15,206 crore during the same period last year. ONGC, India’s leading producer of crude oil and natural gas, earned USD 76.49 per barrel for its produced and sold crude oil, down from USD 108.55 per barrel the previous year. This decline in profit was influenced by the surge in global oil prices during April-June 2022, prompted by uncertainties caused by Russia’s invasion of Ukraine.

The company’s gross revenue also dropped by 20% to Rs 33,814 crore. Crude oil production decreased by 3.2% to 4.6 million tonnes, and gas output declined by 3.3% to 5.04 billion cubic meters. Various factors contributed to this reduction in production, including the commissioning of a new crude oil pipeline, disruptions caused by cyclone Biparjoy, and a pipeline leakage affecting crude oil wells in southern India.

To counter the production decline from mature and marginal fields, ONGC is implementing interventions and new drilling activities. The company made four oil and gas discoveries in the first quarter, including new prospects both offshore and onland. One notable discovery is in the Mid and South Tapti field in Mumbai offshore, named ‘Pukhraj. In the Krishna Godavari basin onland block, a development well encountered a new hydrocarbon-bearing pay zone.

By the end of the week, ONGC’s shares closed at Rs. 177.15 on the BSE, marking a 0.81% decrease.

Iron ore company NMDC released its FY24 June quarter results, revealing a 13% increase in consolidated net profit to ₹1,661.04 crore, driven by higher income. The company’s net profit for the April-June period of FY23 was ₹1,471.24 crore as per regulatory filings.

Total income saw a significant rise to ₹5,688.87 crore from ₹4,913.06 crore in the corresponding period a year ago. Concurrently, total expenses also grew to ₹3,476.55 crore from ₹2,968.94 crore in the previous year.

The EBITDA of NMDC’s iron ore segment reached ₹2,106 crore for the June quarter, up from ₹1,982 crore in the same period the previous year. However, the pellet, other minerals, and services segment reported a loss of ₹36.52 crore, compared to a loss of ₹30.44 crore in FY23.

Shares of NMDC closed 0.18% lower at ₹113.50 on the NSE on Friday.

On Friday, Jindal Steel & Power Ltd reported a 14.37% year-on-year decrease in its consolidated net profit from continuing operations attributed to the company’s owners for the first quarter of the fiscal year 2023-24, amounting to ₹1,686.94 crore. In the corresponding period of the previous year, the company had recorded a profit of ₹1,970.13 crore. On a sequential basis, the consolidated net profit saw a substantial increase of 265% from ₹462.56 crore in the fourth quarter of the fiscal year 2022-23.

The company’s consolidated revenue from operations experienced a 3.5% decline year-on-year, totaling ₹12,588.34 crores for the quarter ending in June, as compared to ₹13,045.41 crore in the same period of the previous fiscal year. The total income for the first quarter was ₹12,643.63 crore, lower than the ₹13,069.17 crore reported in the same quarter last year.

For the first quarter, the EBITDA stood at ₹2,704 crore, reflecting a sequential increase of 21%, but a year-on-year decrease of 17%.

During the quarter, Jindal Steel & Power’s net debt decreased by ₹141 crore, reaching a 15-year low of ₹6,812 crore by the end of June 2023. The net debt to EBITDA ratio was 0.75x, compared to 0.7x as of March 31, 2023.

In terms of production and sales, Q1 production reached 2.04 million metric tons, a 2% increase from the previous year. Sales amounted to 1.84 million metric tons, showing a 6% growth year-on-year, but a 9% sequential decline due to weaker domestic market consumption.

The management expressed achievements, including the successful commissioning of the state-of-the-art pellet plant at Angul and the acquisition of mining leases for two thermal coal mines, Gare Palma IV/6 and Utkal C. These developments are expected to ensure a consistent and cost-effective coal supply for the company’s thermal coal requirements in DRI Kilns, Coal Gasification, and Power Plants.

On the stock market, Jindal Steel & Power’s share price closed 3.38% higher at ₹698.40 per share on the Bombay Stock Exchange.

On Wednesday, Mahindra & Mahindra Ltd (M&M Ltd) introduced a fresh wheel harvester as part of the Swaraj brand’s offerings in the domestic market. The brand’s goal is to secure a 15-20 percent market share in the wheel harvester segment over the long term, according to management statements.

The newly launched ‘Swaraj 8200 Wheel Harvester,’ produced at the company’s modern farm machinery facility in Pithampur near Indore, Madhya Pradesh, will be accessible to customers nationwide through its dealer network from the upcoming crop season.

Management noted that as the tractor industry has experienced unprecedented growth, the agricultural mechanization sector has also witnessed rapid expansion. Farmers are increasingly embracing mechanized techniques.

The ‘Swaraj 8200 Wheel Harvester’ is equipped with an internally developed TREM-IV compliant engine that ensures exceptional fuel efficiency. It boasts technologically advanced features previously unseen in the industry. The harvester’s intelligent system provides real-time information to machine operators, including live location tracking, metrics like harvested acres, distance traveled, and fuel usage. This aids in making informed decisions and enhancing operational efficiency.

Beyond offering alerts for vehicle service and health, the harvester’s system includes indicators for AdBlue levels and engine status. This real-time monitoring ability benefits equipment owners, farmers, and rental entrepreneurs, optimizing machine utilization and profitability, as per the company’s statements.

At the National Stock Exchange (NSE), M&M shares concluded Thursday’s trading at Rs. 1545.40, marking a 0.69% increase.

State-owned electricity producer SJVN Ltd reported a significant decline of over 55% in its consolidated net profit for the June quarter, settling at ₹271.75 crore. This drop can be primarily attributed to reduced revenues. In the corresponding quarter of the previous year, the company had recorded a consolidated net profit of ₹609.23 crore, as indicated in a filing with the Bombay Stock Exchange (BSE).

During the first quarter of the current fiscal year, the total income of the company fell to ₹744.39 crore, down from ₹1,072.23 crore in the same period of the previous year.

Meanwhile, SJVN Ltd has entered into a trade agreement with Sikkim Urja Ltd to procure 180 megawatts (MW) of hydro power. According to a statement issued on Thursday, this power will be supplied to distribution licensees and open access consumers as outlined in the agreement.

SJVN, a public sector entity, is engaged in the generation and transmission of hydroelectric power. The trading day concluded with SJVN’s shares on the National Stock Exchange (NSE) priced at Rs. 54.46, marking a marginal decrease of 0.13%.

Hero MotoCorp, India’s largest manufacturer of motorcycles, fell short of its projected first-quarter profits on Thursday, attributed to a decline in sales volume. Despite a 32% increase from the previous year, the company’s standalone post-tax profit amounted to 8.25 billion rupees ($99.9 million), falling below analysts’ expectations of 8.86 billion rupees.

This outcome contrasts with its competitors Bajaj, Royal Enfield under Eicher ownership, and TVS Motor, all of which exceeded anticipated results. The Indian motorcycle industry has been grappling with challenges in regaining pre-pandemic sales figures. The increased cost of entry-level models has deterred buyers in crucial rural markets from making purchases.

Traditionally, rural India accounted for the majority of two-wheeler sales. However, the company has experienced declining sales volumes in recent years, with sales for the quarter dropping by 2.7% to 1.35 million units compared to the previous year.

Household incomes have also been constrained by ongoing retail inflation, despite some relief from the previous year, with rising food prices attributed to unpredictable monsoon rains. Quarterly revenue showed a 4.5% increase, reaching 87.67 billion rupees, primarily due to a price hike stemming from new emission regulations that increased the production costs of vehicles.

On Thursday, Hero MotoCorp’s shares closed at Rs. 3035.90 on the National Stock Exchange (NSE), reflecting a decrease of 0.78%.

Grasim Industries announced a significant decline of 56.1% in its standalone net profit for Q1FY24, amounting to ₹355.27 crore, as compared to ₹808.56 crore in the same period last year. However, there was a notable sequential improvement, with net profit rising by 280% from ₹93.51 crore in Q4FY23.

During the quarter ending in June, the company’s standalone revenue from operations witnessed a 14% year-on-year drop, reaching ₹6,237.55 crore. This marked a decrease from ₹7,253.04 crore in Q1FY23. The total income for the first quarter was recorded at ₹6,353.41 crore, down from ₹7,296.74 crore in the corresponding period of the previous year.

On a consolidated basis, Grasim Industries experienced an 11% year-on-year increase in revenue, amounting to ₹31,065 crore. This growth was primarily driven by the strong performances of key subsidiaries such as UltraTech Cement, Aditya Birla Capital, and Aditya Birla Renewables. Despite this overall growth, the company noted that lower realizations in standalone businesses and UltraTech Cement had a negative impact on profitability, as stated in an official filing.

On a standalone basis, EBITDA witnessed a significant decline of 42% year-on-year, totaling ₹789 crore. The company’s capital expenditures (capex) for Q1FY24 were reported at ₹1,384 crore.

In the stock market, Grasim Industries’ share price concluded the day 0.7% lower at ₹1,832.25 per share on the BSE.

According to Angel One, the Grasim stock price encountered strong resistance around the 1840 levels, which represents a multi-month resistance point. Despite the recent financial results, there hasn’t been substantial market activity. However, the next upward movement would require the price to surpass the 1840 level with conviction, potentially triggering a rally towards 1900 in the near term. Immediate support levels are seen around 1790 to 1800.

In Q1FY24, the total income amounted to Rs 971.42 crore, showing a year-on-year increase from Rs 952.3 crore.

Bata’s consolidated net profit for Q1FY24 experienced a decline of 10.45%, settling at Rs 106.89 crore in comparison to Rs 119.37 crore in the previous year.

In a sequential analysis, the net profit surged by 62.89%. In the preceding quarter, Q4FY23, the company’s net profit was recorded at Rs 65.62 crore.

The revenue from operations during Q1FY24 was Rs 958.14 crore, marking a 1.6% rise from Rs 943.01 crore in the same period of the previous year.

Considering a quarter-on-quarter perspective, the total income exhibited a substantial growth of 23.19%, ascending from Rs 788.52 crore in Q4FY23.

During the previous year, Bata achieved significant milestones, surpassing 2,000 stores across India.

Throughout FY22-23, Bata introduced its inaugural “Red Label by Bata” store concept, offering exclusive selections for high-end fashion consumers. Additionally, the company opened 25 all-women stores across India during the same period.

On Wednesday, Bata India’s shares experienced a decline of 3.17%, closing at Rs. 1700.30 on the NSE.

Tata Power reported a 22 per cent rise in the net profit in the June quarter aided by a one-time gain of ₹235 crore, while revenue rose 5 per cent mostly due to higher sales across distribution companies and capacity addition in renewables.

The company reported a consolidated net profit of ₹972 crore on revenue of ₹15,213 crore. This is the 15th consecutive quarter of profit growth for the Tata group power energy major.

The company said its EBITDA rose 43 per cent to ₹3,005 crore.

The exceptional gain was on account of a deemed gain on dilution of stake from 47.78 per cent to 30.81 per cent in Tata Projects.

For the current fiscal year, it has planned a capex of ₹12,000 crore

Of the total capacity of 14,294 MW, thermal energy accounts for 8860 MW and over 4,000 MW coming from wind, solar and hybrid sources.

During the quarter under review the company won projects of 1214 MW, while it 184 MW of renewable energy. The rooftop solar business did business worth ₹390 crore in the quarter.

At the end of the quarter its utility scale order book was at 4.2 GW worth ₹17,643 crore while rooftop solar and group captive order book was at ₹2,504 crore.

Its 4GW greenfield solar cell and module manufacturing facility in Tamil Nadu is expected to be operational in the current fiscal year.

The company is implementing a ₹1,744-crore smart metering project in Chhattisgarh. In its Mumbai distribution network, it will be applying a 25-35 per cent lower tariff for consumers.

Tata Power”s shares closed on Wednesday at Rs 234.90, up by 0.43% on NSE.

The real estate firm experienced a substantial 21% year-on-year decline in revenue, amounting to Rs 685 crore in Q1FY24. Conversely, its net sales from residential projects demonstrated a robust 33% year-on-year increase, reaching Rs 991 crore during the same period.

The company’s net profit for the April-to-June quarter plummeted by 65% year-on-year. Brigade Enterprises’ consolidated net profit stood at Rs 38.5 crore in Q1FY24.

The hospitality sector experienced a 5% year-on-year decrease in occupancy levels during Q1FY24. Brigade Enterprises is anticipating that upcoming conferences, trade shows, and events will contribute to an increase in occupancies and subsequent growth.

Brigade Enterprises has established its real estate developments across various regions in South India, encompassing Bengaluru, Mysuru, Hyderabad, Chennai, and Kochi. Their projects span residential spaces, offices, retail outlets, and hotels.

The company’s shares concluded trading at Rs 565.95 on Wednesday, marking a decrease of 3.82% on the NSE.

Coal India Limited announced its Q1 results on Tuesday, revealing a 10% year-on-year decrease in net profit for the quarter ending June 2023. The net profit stood at ₹7,941 crore, down from ₹8,834 crore reported in the corresponding quarter of the previous year. Despite this, the company experienced a slight increase in net sales, reaching ₹33,072.6 crore during the quarter under review, compared to ₹32,497.9 crore in Q1FY23.

In a sequential comparison, Coal India’s net profit saw a significant 43% surge from ₹5,527.6 crore in the quarter ending March 2023. The company’s other operating income also rose by 12.1% to ₹2,910.5 crore, marking an increase from ₹2,594 crore during the same period in the previous fiscal year.

The company’s Earnings Per Share (EPS) experienced a decline, decreasing from ₹14.33 in Q1FY23 to ₹12.93 in the period under review.

As of now, Coal India holds a market capitalization of ₹143,591.57 crore, with its stock reaching a 52-week high of ₹263.3 and a low of ₹205.5. The stock’s trading volume on the BSE was recorded at 244,023 shares.

On the following day, Wednesday, Coal India’s shares concluded trading at Rs 234.70 on the NSE, marking a 1.93% increase.

On August 8th, Hikal announced a consolidated net profit of Rs 6.92 crore in the initial quarter of the current fiscal year. This marks a significant turnaround from the net loss of Rs 8.86 crore reported in the corresponding period of the previous year.

The company’s revenue reached Rs 388.05 crore, indicating a 2.44 percent increase compared to Rs 378.79 crore in the same quarter of the preceding fiscal. Of the total revenue, the pharmaceuticals segment contributed 57.9 percent, amounting to Rs 22,487 lakh.

During the quarter, EBITDA stood at Rs 50 crore, reflecting a remarkable growth of 122 percent in contrast to the figures from the same period a year ago.

In a statement, the company acknowledged that subdued volumes, coupled with pricing challenges and high-cost inventories on the customer side, had an impact on both the topline and overall profitability.

The company’s stock responded positively to this announcement, concluding at Rs 302.70 on the NSE, representing a gain of 2.68 percent compared to the previous closing price.

On Tuesday, Emami’s stock price exhibited a strong opening with substantial trading volume, propelled by robust demand. The company’s shares soared by more than 9% today, buoyed by its impressive Q1 financial results that outperformed market expectations. Commencing at ₹463.75 per share on the Bombay Stock Exchange (BSE), Emami’s share price displayed a noteworthy surge.

In its Q1FY24 report published on Monday, Emami disclosed a remarkable 86.5% year-on-year increase in its consolidated net profit, amounting to ₹137.72 crore, attributable to equityholders of the parent company. This marked a decline of 4.6% in consolidated net profit compared to ₹144.43 crore in the preceding quarter (Q4FY23). Concurrently, the company’s consolidated revenue from operations ascended by 6.8% year-on-year, reaching ₹825.66 crores during the quarter ending in June, as opposed to ₹773.31 crore in Q1FY23.

The company’s exchange filing revealed an elevation of gross margins for the quarter, expanding by 240 basis points to 65.4%, attributed to a reduction in the pressure stemming from escalating raw material costs.

Harsha V Agarwal, Vice Chairman and Managing Director of Emami, expressed satisfaction with a 7% growth in the domestic business despite a challenging operating environment. While adverse weather conditions impacted summer product sales, the non-summer portfolio witnessed a robust 16% growth. The international business segment maintained its growth trajectory with an 11% constant currency increase. With a moderating inflation outlook, the company looks ahead with increased optimism and confidence. Agarwal emphasized the role of the digital ecosystem, stating that both e-commerce and direct-to-consumer (D2C) channels will play a pivotal role in the company’s growth strategy, prompting further investment to bolster an omni-channel presence for enhanced consumer outreach.

Equity Technical and Derivative Analyst at Angel One observed a gap up opening in Emami’s stock price today, accompanied by persistent strong buying momentum and increased trading volume. The analyst anticipates this upward movement to persist, potentially testing the previous high around the 520 level, while noting 470 as an immediate support level. A “buy on dip” approach is advised for traders.

Nuvama Institutional Equities announced an increase in its FY24E/FY25E earnings per share (EPS) estimates by 2% and 1.4% respectively. As a result, the brokerage set a revised Emami share price target of ₹550, up from the previous target of ₹520, while maintaining a ‘Buy’ recommendation.

Motilal Oswal Financial Services underscored the attractive valuation of Emami’s shares, trading at 20 times FY25 EPS, and reaffirmed its ‘Buy’ rating. The brokerage established a target share price of ₹560 for Emami.

Hindalco Industries, a prominent player in the aluminum sector, announced a substantial 58.6% decrease in its standalone net profit for the quarter concluding in June 2023, recording ₹600 crore in contrast to ₹1,448 crore in the corresponding period of the previous year.

Its standalone revenue from operations during Q1FY24, amounting to ₹19,904 crore compared to ₹19,518 crore in the previous year.

From a consolidated perspective, Hindalco Industries encountered a 40.4% decline in net profit year-on-year, totaling ₹2,454 crore, while its revenue from operations witnessed a nearly 9% reduction YoY, reaching ₹52,991 crore.

EBITDA drops to ₹1,561 crore compared to ₹2,927 crore in the previous year. Notably, the EBITDA margin experienced a significant contraction from 15% to 7.8% YoY.

At the close of trading on Tuesday, Hindalco’s shares concluded at Rs 454.75, marking a decline of 2.17%.

Caplin Point Laboratories has reported a notable 21% YoY surge in its consolidated net profit for the first quarter, reaching ₹104 crore. In comparison, during the corresponding quarter of the previous fiscal year, the Chennai-based pharmaceutical company recorded a net profit of ₹86 crore.

Furthermore, the consolidated revenue from operations witnessed a 14 percent year-on-year increase, reaching ₹395 crore for the most recent quarter, as opposed to ₹346 crore in the same quarter of the preceding year.

Caplin Point specializes in the production of pharmaceutical formulations and therapeutic products under both generic and branded categories, with a primary focus on the emerging markets in Latin America and Africa. Their diverse product portfolio includes tablets, softgels, capsules, injections, liquid orals, ointments, and creams.

Of the total revenue, Latin America and the Rest of the World contributed a substantial 88 percent, with the remaining share attributed to the US market.

The company’s EBITDA margin for Q1FY24 improved to 34 percent, a rise from the 32.2 percent recorded in the year-ago quarter.

The shares of Caplin Point closes at Rs.995.60 each, 11.12% higher than previous close. The shares have rallied almost 25 percent within the past month.

Moreover, Caplin Steriles Ltd will establish a wholly-owned subsidiary, Caplin Steriles USA Inc. This subsidiary will be primarily focused on front-end sales, marketing, and distribution in the US market.

Tata Chemicals declared its financial results for the June quarter of FY24, revealing that its net profit decreased by 11.8 percent to ₹523 crore compared to ₹593 croreYoY. According to a regulatory filing, the revenue witnessed a growth of 5.6 percent, reaching ₹4,218 crore in Q1FY24 from ₹3,995 crore YoY. In contrast, the net income for Q4FY23 amounted to ₹4,407 crore, demonstrating a substantial increase compared to the June quarter.

Its EBITDA for Q1FY24 rose by 2.8 percent to ₹1,043 crore, as opposed to ₹1,015 YoY. The EBITDA margin for Q1FY23 stood at 24.7 percent, slightly lower than the 25.4 percent recorded year-on-year.

As of June 30, 2023, the consolidated gross debt of the company decreased to ₹5,873 crore from ₹6,296 crore on March 31, 2023. Additionally, cash and cash equivalents totaled ₹1,544 crore on June 30, 2023, down from ₹2,398 crore on March 31, 2023, as stated by the company. Shares of Tata Chemicals Limited closed at ₹1010.35 on Tuesday, marking a decline of 2.78 percent.

Yatharth Hospital’s shares debuted on the Bombay Stock Exchange (BSE) at a 1% premium over the initial public offering (IPO) price, riding on the wave of a buoyant domestic market. The stock opened at Rs 304 on the BSE, surpassing the issue price of Rs 300. This positive listing was in line with expectations, given that Yatharth Hospital shares had been trading at a premium of Rs 75 in the grey market ahead of their market debut.

The Yatharth Hospital IPO commenced its subscription on July 26, and by the final day of the subscription period, it was oversubscribed an impressive 37.28 times. This robust demand was primarily driven by strong participation from institutional buyers. Among the categories, Qualified Institutional Buyers (QIBs) oversubscribed by a staggering 86.37 times, non-institutional investors subscribed 38.62 times, and Retail Individual Investors (RIIs) witnessed oversubscription by 8.66 times.

The public issue was priced within a range of Rs 285 to Rs 300 per equity share. At the upper limit of this range, the company’s promoters and shareholders aimed to raise Rs 686.55 crore from the IPO. The IPO comprised a fresh issuance of shares amounting to Rs 490 crore and an offer for sale (OFS) component, involving promoters and shareholders divesting 65.5 lakh equity shares. Following the listing, the promoter’s stake would be diluted from 91.34% to 66.32%.

Yatharth Hospital & Trauma Care Services, a private healthcare provider based in North India, operates with a focus on quality medical services. The first hospital was established in Greater Noida in November 2010, marking the beginning of an ongoing expansion journey. Presently, the organization operates four hospitals across the northern region, boasting a total of 1405 beds. As of March 2023, the hospital’s panel included 609 engaged doctors.

India’s largest lender State Bank of India (SBI) has surpassed street estimates by a significant margin, reporting a year-on-year (YoY) decline of 6.7 per cent in net profit, amounting to ₹6,068 crore in Q1FY23, compared to ₹6,504 crore in Q1FY22. Despite the dip in net profit, the country’s largest commercial bank witnessed a notable increase in NII from ₹27,638 crore in Q1FY22 to ₹31,196 crore in Q1FY23, marking a near 12.87 per cent YoY rise.

During the announcement of the Q1FY23 results, SBI shared that the operating profit for Q1FY23 was ₹12,753 crore, down from ₹18,975 crore in Q1FY22, affected by MTM losses on the investment book.

On the asset quality front, SBI reported a Gross NPA ratio of 3.91 per cent in Q1FY23, down by 141 bps YoY, and a Net NPA ratio of 1.00 per cent, down by 77 bps YoY. The Provision Coverage Ratio (PCR) improved significantly by 719 bps YoY, reaching 75.05 per cent, and stands at 90.14 per cent when including AUCA.

SBI’s slippage ratio for Q1FY23 is 1.38 per cent, showing a YoY improvement of 1.09 per cent. The credit cost for the public sector bank in Q1FY23 is 0.61 per cent, approximately 18 bps lower than the credit cost in Q1FY22.

In terms of credit growth, SBI reported a YoY growth of 14.93 per cent, with Domestic Advances growing at 13.66 per cent and Foreign Offices’ Advances growing by 22.39 per cent YoY.

During the Q1FY23 results announcement, SBI announced that its balance sheet size has crossed ₹50 lakh crores, and its Capital Adequacy Ratio (CAR) as of the end of Q1FY23 stands at 13.43 per cent.

On Monday SBI shares closed at Rs 567.90 each, lower by 0.94% on NSE.

Sugar major Balrampur Chini Mills recorded impressive financial results in Q1, with their profit soaring by a staggering 493% to reach ₹73.5 crore in the quarter ending June 2023. In the same period last fiscal year, the company had reported a consolidated net profit of ₹12.38 crore. Additionally, the company’s revenue witnessed a 28% rise, increasing from ₹1,094.59 crore in Q1FY23 to ₹1,401.81 crore in Q2 of June 2023.

This robust growth was primarily driven by the sugar segment’s turnaround, which had incurred a loss of ₹(55.71) crore in Q1FY23. However, during the current April-June quarter, the segment bounced back and achieved a net profit of ₹71.37 crore (figures are pre-tax and finance costs).

The Earnings Per Share (EPS) of the company also experienced substantial growth, surging from ₹0.61 in Q1FY23 to ₹3.64 in the reviewed quarter. On a standalone basis, the Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) witnessed an impressive 267% increase, reaching ₹163.18 crore in the quarter ending June 2023, compared to ₹44.4 crore reported during the same quarter last fiscal.

As per its management, the company aims to achieve a further ~10% increase in sugarcane crushing in the upcoming season, assuming favorable weather conditions.

Overall, Balrampur Chini Mills has shown impressive growth and is optimistic about its future performance, backed by a thriving sugar segment and proactive efforts to enhance productivity and collaborations with farmers.

The shares of the company closed 0.70% higher at Rs.412.70 on NSE.

Auto giant Mahindra and Mahindra reported impressive results for the first quarter, with a remarkable 98% surge in profit, surpassing expectations. This outstanding performance was driven by robust sales of its higher-priced sport-utility vehicles (SUVs). It is the second-largest SUV manufacturer in India in terms of volume.

According to an expert at Prabhudas Lilladher “Mahindra is expected to maintain its positive momentum, supported by increased operating leverage and declining commodity prices, which will further boost profit margins”.

The first quarter profit margin before exceptional items increased to 10.4% from 7.7% compared to the previous year.

Additionally, Mahindra confirmed that its plans to launch a new range of electric SUVs are progressing as scheduled to follow their electric model SUV, the XUV400.

Talking about the funding for its EV division, its management stated that the company is not actively seeking additional funding in the electric vehicle space. The company feels that its strong business and cash flow are sufficient to support its EV initiatives without external funding.

Recently the company secured investment from Singapore’s Temasek for its EV unit – Mahindra Electric Automobile. The EV arm also has British International Investment as an investor. Mahindra has already invested 16 billion rupees ($193.23 million) in its EV arm, out of the planned 100 billion rupees by fiscal 2027.

Following the announcement of the impressive results, the company’s shares closed 0.22% lower at Rs.1465.05 on NSE.

In July 2023, Indian automakers have begun unveiling their monthly sales figures. Notably, Maruti Suzuki, Tata Motors, Hyundai, and various other brands have experienced a noteworthy surge in their sales, ranging from slight to significant growth. Remarkably, Toyota achieved its highest-ever cumulative sales in the preceding month, surpassing its previous record. Below is a comprehensive report detailing the car sales performance for July 2023.

Below is the table summarizing the monthly sales results of the mentioned automakers for July 2023:

Automaker	Total Sales	Domestic Sales	Exports	Electric Vehicle Sales	Growth (%)
Maruti Suzuki	1,52,126	1,50,778	1,348	N/A	6.54%
Tata Motors	47,628	47,628	61	6,329	0.27% (Domestic)
Hyundai	66,701	50,701	16,000	N/A	4.46%
MG	5,012	N/A	N/A	N/A	25%
Toyota Kirloskar	21,911	20,759	1,152	N/A	10% (Domestic)

Note:

• Maruti Suzuki’s total sales include various models such as Alto, S-Presso, Baleno, Celerio, Swift, Dzire, Ignis, Tour S, Wagon R, Brezza, Grand Vitara, Ertiga, Fronx, XL6, Invicto, S-Cross, and Jimny.
• Tata Motors witnessed a marginal growth in domestic sales, but a significant decline in international business and a substantial growth in electric vehicle sales.
• Hyundai experienced a slight increase in domestic sales and a significant rise in exports.
• MG Motor India achieved a notable 25% growth in total sales, despite facing challenges due to severe weather and floods.
• Toyota Kirloskar reported its strongest-ever cumulative sales, witnessing growth in both domestic and export markets.

Eicher Motors posted a remarkable performance in the first quarter of the current fiscal year (Q1FY24), achieving a net profit of ₹918 crore. This represents an impressive 50 percent growth compared to the ₹610 crore profit reported in the same period last year. The company’s revenue from operations also surged to ₹3,986 crore during the first quarter, up from ₹3,397 crore in the corresponding period of the previous year.

This outstanding Q1 performance marks the best ever for the company and continues a streak of record-breaking revenue and profit for the fourth consecutive quarter. Royal Enfield, a division of Eicher Motors, played a significant role in this success, selling 2,25,368 motorcycles during the first quarter, a notable 21 percent increase from the previous year’s 1,86,032 units.

The management of Eicher Motors expressed its satisfaction with the strong performance of both Royal Enfield and VECV (a joint venture with the Volvo Group). Its credited the success to the popularity of models like the Hunter 350 and Super Meteor 650, which have attracted a global customer base.

The EBITDA margin for the reporting quarter stood at 25.6 percent, a slight improvement from the 24.5 percent recorded in the same period of the previous fiscal year. EBITDA, which stands for earnings before interest, tax, depreciation, and amortisation, is a crucial indicator of a company’s operational performance.

Furthermore, the company has allocated around ₹1,000 crore for capital expenditure in the current fiscal year, with a significant portion being utilized to develop products and sales infrastructure for electric vehicles (EVs).

The company plans to have a modular production capacity of 1.5 lakh units for its electric vehicles.

Industry analysts predict a further improvement in demand for two-wheelers during the upcoming festival season, driven by new product launches and increased exports.

On August 4, Eicher Motors’ shares closed at ₹ 3,359.55 apiece on the NSE, marking a 0.6% decrease from the previous trading day.

Zomato’s share price experienced a significant surge of 12% during early trading today, following the company’s announcement of its first-ever quarterly profit. The stock opened at ₹89, climbed to reach a high of ₹98.39, representing a remarkable 12% jump. It closed at Rs.95.40, a 10.23% higher than previous close on NSE.

In its Q1 earnings report for FY24, released on Thursday, the food delivery platform, Zomato, disclosed a net profit of ₹2 crore, a significant improvement compared to a loss of ₹186 crore in the same period the previous year. The company’s revenue also showed a remarkable increase, amounting to ₹2,416 crore as opposed to ₹1,414 crore in the previous year.

Several domestic brokerage firms have expressed a positive outlook on the stock.

Motilal Oswal Financial Services continues to recommend a “buy” call on the stock, with a target price of ₹110, suggesting a potential upside of 28%.

Nuvama Wealth Management also maintains a “buy” call on the stock and has increased its target price from ₹94 to ₹110.

Similarly, Emkay Global Financial Services reiterates its “buy” call on the stock and has raised the target price to ₹110 from ₹90 previously.

Various global brokerage firms also expressed their views.

Jefferies reaffirmed its “buy” call on Zomato and revised the target price to ₹130.

HSBC also raised its target price for Zomato to ₹102 while maintaining a “buy” call.

UBS continued to recommend a “buy” call on Zomato, setting a target price of ₹90.

Additionally, JPMorgan maintained its ‘overweight’ view on the stock and raised the target price to ₹100.

Varun Beverages Ltd, the largest franchise bottler for PepsiCo, reported a significant increase of 25.36 per cent in consolidated net profit, reaching Rs 1,005.42 crore for the quarter ending in June 2023. This growth was driven by increased revenue and improved margins. For the same period last year (April-June quarter), the company recorded a net profit of Rs 802.01 crore.

In the current quarter under review, Varun Beverages Ltd achieved a revenue from operations of Rs 5,699.73 crore, representing a growth of 13.6 per cent compared to the corresponding period in the previous fiscal year, which had a revenue of Rs 5,017.57 crore.

Varun Beverages Ltd’s EBITDA margins also improved, rising by 169 basis points to 26.9 per cent in Q2 CY2023. This improvement was a result of higher gross margins and operational efficiencies.

Consolidated sales volumes for Q2 CY2023 grew by 4.6 per cent to 314 million cases, compared to 300 million cases in Q2 CY2022. This growth was primarily driven by robust performance in international markets. However, sales volume growth in India was impacted by abnormally high unseasonal rains throughout the quarter.

During the first quarter of FY 2023-24, Varun Beverages’ total expenses reached Rs 4,430 crore, representing an 11.68 per cent increase. Total income for the June quarter stood at Rs 5,741.33 crore, showing a growth of 14.18 per cent.

The management expressed satisfaction with the company’s resilient performance in the quarter, despite soft demand in India due to abnormal weather conditions.

It’s worth noting that Varun Beverages Ltd accounts for 90 per cent of PepsiCo’s beverage sales volume in India. The company’s shares closed at Rs 822.05 apiece on the NSE, showing a 1.73 per cent increase from the previous close.

Bharti Airtel Ltd, the second-largest telecom operator in India, reported its first-quarter financial results with a mix of positive and negative outcomes. While the revenue surpassed expectations, the profit fell short of estimates.

During the first quarter of fiscal 2024, the company achieved a flat net profit of ₹1,612.5 crore, slightly higher than ₹1,607 crore in the same period last year. However, the revenue from operations showed a robust growth of 14%, reaching ₹37,440 crore compared to ₹32,804.6 crore in Q1 FY23. The quarter also experienced a one-time loss of ₹3,416.3 crore in Q1 FY24.

The consolidated revenue increased by 4.0% sequentially, and the EBITDA margin expanded to 52.7%, indicating successful execution of their strategic plans.

EBITDA grew by 18.9% to ₹19,746 crore, and the EBITDA margins expanded by 212 basis points to 52.7%. The company added 5.6 million new 4G customers and achieved the highest-ever postpaid customer additions in a single quarter, reaching an industry-leading average revenue per user (ARPU) of ₹200.

The mobile revenues of Bharti Airtel grew by 12.4% YoY due to improved realization and significant additions to their 4G customer base. The company’s revenues saw a substantial increase of 15.8% YoY, driven by strong demand for data and connectivity solutions, along with emerging competencies.

The company reinforced its leadership position in the postpaid segment, adding a record 0.8 million net new customers in the June quarter, resulting in a total base of 40.4 million postpaid customers.

Bharti Airtel also achieved remarkable success in the homes business segment, recording a revenue growth of 25.4% YoY by catering to the rising demand for high-speed and reliable broadband services in India. The digital TV segment maintained a customer base of 15.9 million at the end of the quarter, thanks to market-specific strategies, simplified pricing, and a convergence portfolio.

Despite the mixed financial performance, the company’s shares ended marginally lower at ₹871.70 apiece on the NSE.

MRF, a leading tyre-maker, released its financial results for the first quarter of fiscal year 2023-24 (Q1FY24) on August 3. The company recorded a consolidated net profit of ₹588 crore, a significant increase compared to ₹123.60 crore in the corresponding period of the previous year. The revenue from operations for the first quarter of the current fiscal reached ₹6,440 crore, representing a growth of 13% from ₹5,695 crore in the year-ago period.

On the operating front, MRF’s EBITDA for the June quarter stood at ₹1,129 crore, a remarkable improvement from ₹493 crore in the same quarter last year. The margins also saw a substantial rise, reaching 17% as compared to 8.6% in the previous year’s corresponding quarter.

MRF informed that the present tenure of KM Mammen as Managing Director of the company would expire on 07.02.2024. The Board, during its meeting, approved the re-appointment of KM Mammen as Managing Director with the designation ‘Chairman & Managing Director or such other designation as approved by the Board from time to time’ for a duration of five years, starting from 08.02.2024.

As a result of the positive financial performance and leadership news, the shares of MRF witnessed a notable surge, settling at Rs.106,973.35 each, 4.27% higher than previous close on NSE.

Indigo, the low-cost airline under InterGlobe Aviation Limited, disclosed its financial results for the first quarter of the fiscal year 2023-24 on Wednesday. The company reported a remarkable net profit of ₹3,090 crore, marking its highest-ever quarterly net profit.

In the same quarter of the previous year (Q1FY23), Indigo had faced a net loss of ₹1,064.2 crore.

The current profit surge is noteworthy, with a 236% increase from the profit of ₹919.8 crore reported in the fourth quarter of the fiscal year 2022-23 (Q4FY23).

The rise in net revenue from operations is equally impressive, reaching ₹1,668.3 crore, a substantial 29.7% increase YoY, compared to ₹1285.53 crore in the same period of the previous year (Q1FY23).

The total revenue for Q1FY24 was reported at ₹1,176.09 crore, up by 31.8% from ₹1301.88 crore in Q1FY23. This growth can be attributed to higher ticket prices and weaker competition.

The period also recorded an impressive EBITDA of ₹521.09 crore, indicating a 31.2% EBITDAR margin, in contrast to the EBITDA of ₹71.69 crore with a 5.6% EBITDAR margin in Q1FY23.

Additionally, during this quarter, Indigo placed a new order for 500 aircraft, increasing their outstanding order book to approximately 1,000 aircraft, reinforcing their position for future growth.

The shares of the stock closed at Rs.2447.75 on NSE, 4.58% lower than previous close.

Bikaji Foods International Limited (Bikaji), a prominent manufacturer of ethnic snacks, reported impressive financial results for the fiscal first quarter. The company’s profit soared to Rs 41.41 crore, marking a significant 163.8% increase from the Rs 15.70 crore recorded during the corresponding quarter of FY23. The revenue from operations reached Rs 481.69 crore, showing a notable 15.1% growth compared to Rs 418.51 crore in the quarter ended June 2022. The total income for the quarter stood at Rs 487.72 crore, with total expenses amounting to Rs 431.88 crore.

Bikaji’s strong performance was attributed to several factors, including a remarkable EBITDA margin of 13.6% (a YoY increase of 630 bps and a QoQ increase of 20 bps). This was mainly driven by improved operating efficiency, a favorable product mix, and the positive impact of softened input material prices.

According to its management, the fiscal year FY24 began with robust double-digit value and volume growth in Q1, with positive outcomes across various business segments and markets. The company demonstrated resilience in its EBITDA margin during this period, thanks to its superior mix, operating leverage, and effective cost management strategies.

In terms of revenue distribution, the ethnic snacks category saw a substantial 16.1% YoY growth and accounted for approximately 75% of the overall revenue. Packaged sweets contributed around 7 per cent of the total revenue and recorded a growth of 10.5% YoY. Western snacks witnessed a remarkable 19.3% YoY revenue growth, while the papad segment’s revenue grew by 1.1%.

Despite the good results, the stock came under the over-all market’s selling pressure. It closed at Rs. 472.40, a 2.44% lower than the previous day’s close on NSE on Wednesday.

In the first quarter of the current financial year (Q1YFY24), Strides Pharma reported a standalone net profit of Rs 8 crore, a significant improvement compared to the same quarter in the previous year (Q1FY23) when they incurred a standalone net loss of Rs 66.25 crore. This also indicates a sequential decline of 87.1% in net profit when compared to the last quarter (Q4FY23) when they recorded a net profit of Rs 62.3 crore.

In terms of revenue from operations, Q1FY24 saw an increase of 12.31 per cent, reaching Rs 475.3 crore, compared to Rs 423.19 crore in the same quarter last year (YoY). However, on a QoQ basis, the revenue declined by 15.65 per cent from Rs 563.5 crore in Q4FY23.

The total income for Q1FY24 was Rs 486.9 crore, showing a YoY growth of 13.07 per cent from Rs 430.6 crore.

Overall, Strides Pharma’s financial performance in Q1YFY24 has demonstrated improvement in net profit and total income compared to the same period last year, but there was a decline in net profit and revenue from operations when compared to the previous quarter (Q4FY23).

Over the period from FY20 to Q1FY24, Strides Pharma has the company successfully secured $58 million in MSAs (manufacturing services agreements), with an impressive $25.1 million secured in Q1FY24 alone.

The management of the company has expressed satisfaction with the strong start to FY24. It mentioned that Q1FY24 EBITDA reached historical highs, and the company remains on track to achieve its set targets for FY24 across all financial parameters.

The stock of Strides Pharma closed at Rs.446.00, 7.10% lower than previous close on NSE on Wednesday.