Author: Raghuveer

Fitch Ratings, the global rating agency, downgraded the United States’ long-term foreign currency issuer default rating from AAA to AA+ with a ‘stable’ outlook on Tuesday. The downgrade was prompted by the expected fiscal deterioration over the next three years, along with a high and growing government debt burden. Fitch also noted a decline in governance compared to ‘AA’ and ‘AAA’ rated peers over the past two decades, leading to repeated debt limit standoffs and last-minute resolutions.

This is not the first time the US credit rating has been downgraded. In 2011, S&P downgraded it from AAA to AA+ for the first time in 70 years, citing insufficient measures to address the gloomy outlook for US finances.

Different rating agencies have their own criteria for assigning ratings regarding creditworthiness. Fitch Ratings considers an AAA rating as the best, while an AA+ rating represents high quality. Despite the downgrade, the US creditworthiness remains strong, but the event has the potential to impact global markets.

The US benchmark equity index, Dow Jones, saw a 0.20 per cent increase, whereas the BSE Sensex tumbled over 1% on weak global cues. Other Asian markets, fell up to 2 per cent following the downgrade, with technology stocks particularly affected due to their reliance on the US and western markets for business.

Experts commented that Fitch’s downgrade is a sentiment negative for global markets, with US 10-year bond yields spiking above 4% and the dollar index rising to 102, presenting near-term challenges for emerging markets.

Some analysts expect the gold market to continue to benefit under these circumstances. However, it’s worth noting that the negative knee-jerk reaction is expected to be temporary on Indian Markets.

For Indian markets, other fundamental factors such as earnings, crude prices, RBI policy, and fund flows are likely to remain the primary focus for investors.

Godrej Agrovet Ltd, an Indian company which operates in the animal feed and agribusiness sectors, reported a notable 27.3% increase in its first-quarter profit on Tuesday. This growth was primarily driven by cost reductions and expansion in its animal feed and crop protection divisions.

During the April-June period, the company’s consolidated net profit surged to 1.05 billion rupees ($12.8 million), compared to 827.1 million rupees from the previous year. The company benefited from the decline in retail food inflation and the recovery of demand in the agriculture sector, which led to lower raw material expenses and enhanced profitability.

Godrej Agrovet managed to decrease its input costs by 5% YoY, and total expenses were reduced by 0.6%. This helped mitigate the impact of stagnant total revenue, which remained at 25.10 billion rupees.

The animal feed business experienced an impressive performance, with profit before interest and tax more than doubling during the quarter. Additionally, the crop protection business saw significant growth, achieving a 78.5% increase in profits. While the animal feed division contributes about half of the total revenue, the crop protection segment is a major profit generator, accounting for roughly 41%.

In contrast, the vegetable oils business saw a decline of 67% in profit for the quarter. This was due to falling selling prices, which more than offset the higher sales volumes, as stated by the Godrej Group-owned firm.

Following the positive financial results, the company’s shares rose by 0.4% on Tuesday. They settled at Rs. 487.50, 0.26% higher than previous close on NSE.

Escorts Kubota, an Indian tractor giant, witnessed a remarkable surge in first-quarter profit, reporting an impressive 93% increase on Tuesday. This outstanding performance was primarily fuelled by the rising demand for their construction and railway equipment.

During the quarter ending on June 30, the company’s net profit reached 2.83 billion rupees ($34.4 million), a significant growth compared to the 1.47 billion rupees achieved in the corresponding period last year.

Escorts reported a 15.5% increase in revenue from operations, reaching 23.28 billion rupees.

Its management expressed optimism about the construction business, citing strong government support and a focus on expediting infrastructure projects, paving the way for further growth.

The management also anticipates that the steady growth momentum in the railways business to continue, driven by increased requirements for rail transport, both domestically and internationally.

Following the positive earnings report, the shares of Escorts rose by as much as 2.8%. However, they closed at Rs.2563.55 apiece 0.95% higher on NSE.

TTK Healthcare recorded a net profit of ₹16 crore in the first quarter of the current fiscal year, compared to ₹601 crore in the same quarter of the previous fiscal year. However, it’s important to note that the results of these two periods are not directly comparable due to the inclusion of a one-time gain from the sale of a business unit in the previous year’s figures.

In the first quarter of FY22, the company sold its human pharma business to BSV Pharma for ₹805 crore, resulting in a gain of ₹776 crore from the sale. This one-time gain significantly impacted the net profit figures for that quarter.

Excluding the one-time gain, the company’s “profits from continued operations” saw a remarkable four-fold increase, amounting to ₹16 crore in the latest quarter, compared to ₹4 crore in the year-ago quarter. The total revenue from operations for the first quarter of FY24 grew by 5% YoY, reaching ₹202 crore, compared to ₹193 crore in the same quarter of the previous year.

TTK Healthcare operates across various business segments, including animal welfare products, consumer products (FMCG), medical devices, protective devices (male contraceptives), and foods business.

On Tuesday, shares of TTK Healthcare reached an intraday high of ₹1,271.95 on NSE before closing at ₹1,236.85.

Maruti Suzuki India, the leading passenger car manufacturer in India, posted a standalone net profit of ₹2,485.1 crore in the quarter ending June 2023, witnessing a substantial 145% increase compared to ₹1,012.8 crore in the same quarter last year. This remarkable growth can be attributed to higher sales volume, improved realization, cost reduction efforts, and increased non-operating income.

However, the company’s net profit declined sequentially from ₹2,623.6 crore in the March quarter. Despite this, their standalone revenue in Q1FY24 saw a notable 22% growth, reaching ₹32,326.9 crore from ₹26,499 crore in the previous year.

Maruti Suzuki India sold a total of 498,030 vehicles during the quarter, marking a 6.4% increase over the same period last year. The domestic market accounted for 434,812 units, showing a 9.1% growth over Q1FY23, while the export sales stood at 63,218 units, down from 69,437 units in Q1FY23. The company faced challenges due to a shortage of electronic components, resulting in the non-production of over 28,000 vehicles. Consequently, pending customer orders reached approximately 355,000 vehicles by the end of the quarter.

On a positive note, the operational performance of the company improved, with EBITDA rising by 56% to ₹2,983.1 crore and EBITDA margin expanding by 200 bps to 9.2% YoY.

The Board of Directors of Maruti Suzuki India approved the termination of the contract manufacturing agreement and decided to acquire 100% shares of Suzuki Motor Gujarat Pvt Ltd (SMG) from Suzuki Motor Corporation (SMC).

Considering the growth of the Indian car market and export potential, Maruti Suzuki India Ltd (MSIL) intends to increase its production capacity to about 4 million cars per annum by 2030-31, almost double its current levels.

The shares, on Tuesday, Maruti Suzuki’s share price closed 1.06% lower at ₹9,716.75 apiece on the NSE.

In Q1FY24, the state-owned company, Bharat Electronics Limited (BEL), witnessed impressive financial performance. It achieved a remarkable 12.5% (YoY) revenue growth, reaching Rs 3,446 crore.

Following the strong financial results, BEL’s shares surged by 3 per cent, touching an all-time high of Rs 131 per share during Friday’s intra-day trade. The net profit for the April-June quarter of fiscal year 2023-24 (Q1FY24) saw a significant jump of 23% YoY, reaching Rs 530.8 crore.

So far in CY23, BEL’s shares have outperformed the market, soaring over 32%, in comparison to the 9% surge in the S&P BSE Sensex.

The company’s EBITDA also demonstrated robust growth, rising by 29.4% YoY to Rs 664.4 crore. Consequently, the EBITDA margin expanded to 18.9% in the June quarter, up from 16.5% in the same period the previous year.

BEL’s order book position as of July 1, 2023, stood at an impressive Rs 65,356 crore, signifying a positive outlook for future growth.

Analysts at Prabhudas Lilladher maintain a positive stance on BEL’s strong order book, diversification into newer business verticals such as medical equipment, hydrogen fuel cells, EV batteries, product indigenisation, and its focus on export markets as key drivers of future growth.

On the other hand, ICICI Securities believe that BEL’s strategy of diversifying into non-defence sectors, increasing exports, and focusing on services is expected to aid long-term growth and de-risk its business. They maintain a ‘buy’ recommendation on the stock with a target price of Rs 160 per share.

However, analysts caution that BEL’s primary dependence on the ministry of defence, delays in customer advances, and heavy reliance on foreign supplies for sub-systems could potentially hinder its growth prospects.

Marico, the indigenous FMCG major, experienced a decline of over 2% in its share price on Monday following the release of its Q1 results.

For the first quarter ending June 30, 2023, Marico Ltd reported a consolidated net profit of ₹436 crore, reflecting a 15% increase compared to ₹377 crore in the corresponding quarter of the previous year. However, the revenue from operations dipped by 3.16% to ₹2,477 crore in Q1FY24 from ₹2,558 crore in the same period last year.

On a positive note, the FMCG major experienced an expansion in gross margin, growing by 494 bps YoY and 257 bps sequentially, mainly due to softer input costs. The EBITDA for the quarter showed growth of 9% to ₹574, and the EBITDA margin expanded by 253 bps YoY, reaching 23.2%.

The Q1 results of Marico were in line with brokerages’ estimates. As a result, various brokerages have given their recommendations on the Marico stock:

ICICI Securities maintained its ‘Add’ rating on the stock and raised the target price to ₹610 per share from ₹560 earlier.

Motilal Oswal Financial Services reiterated its ‘Buy’ rating on the stock and set a target price of ₹690 per share (based on 52xFY25E EPS).

Kotak Institutional Equities maintained a ‘Reduce’ call but raised the target price to ₹550 per share from ₹525 earlier.

Anand Rathi retained its ‘Hold’ rating and increased the 12-month target price to ₹590 per share from ₹545 earlier.

Prabhudas Lilladher raised the target price to ₹581 per share from ₹550 earlier.

The shares of Marico closed at ₹560.55 each on NSE, showing a decline of 2.40% compared to the previous day’s closing price.

Piramal Enterprises, a non-banking financial company (NBFC), experienced a significant drop of 8.1% in trade, with its shares falling to Rs 985.45 each. This decline was a result of the market’s reaction to the disappointing first fiscal quarter earnings reported by the financial services company. Later on the shares recovered and settled at Rs. 1,011.75 with 5.70% drop on NSE today.

During this quarter, Piramal Enterprises posted a consolidated net profit of Rs 509 crore. However, it’s important to note that this figure was mainly influenced by the stake-sale of Shriram Finance, amounting to Rs 855 crore. Without this one-time gain, the company’s bottom line would have shown a substantial loss.

Comparing it to the same period in the previous year, the net profit plummeted by a staggering 94%, dropping from Rs 8,155 crore. Nonetheless, when compared to the preceding quarter (Q4FY23) where the company faced a loss of Rs 196 crore, Piramal Enterprises managed to turn a profit.

The net profit in this quarter also included a gain of Rs 8.6 billion from the stake sale in Shriram Finance, along with a goodwill write-off of Rs 2.8 billion.

In light of these developments, Piramal Enterprises announced a stock buyback plan. The company plans to buy back 1.4 crore shares, accounting for 5.87% of its equity share capital, at Rs 1,250 per share, with a total value of Rs 1,750 crore.

This buyback decision has provided reassurance to investors about capital allocation and the long-term commitment of the promoter group to the company’s growth. Brokerage firm Emkay expressed their confidence in this move.

Following SEBI rules, 15% of the total tender offer is reserved for the small shareholder category, which includes investors holding investments of not more than Rs 2 lakh in the company as of the record date. Currently, the company’s public holding stands at 56.03%, with small shareholders owning 12.19% or 2.9 crore shares, while the promoter group holds 43.48% or 10.3 crore shares.

Therefore, out of the 1.4 crore shares subject to the buyback offer, 15% (equivalent to 21 lakh shares) would be reserved for small shareholders. As a result, the Minimum Acceptance Ratio for the General category stands at 6%, while the Acceptance Ratio for the Small shareholder category would be 7%.

Route Mobile, an enterprise communications firm, reported a noteworthy 29% surge in its consolidated net profit, reaching Rs 91.69 crore during the June quarter. Comparatively, in the corresponding period last year, the company had registered a profit of Rs 71 crore.

Additionally, the company’s consolidated revenue from operations witnessed a robust growth of around 32%, soaring to Rs 961.34 crore in the first quarter of the current fiscal year, compared to Rs 729 crore in the previous year.

Route Mobile’s managemant, expressed confidence in achieving their revenue growth targets for 2023-24. The company’s CPaaS (Communications platform as a service) and Firewall business experienced substantial growth due to the signing of significant contracts.

It further revealed that the company has set an ambitious objective of becoming a billion-dollar revenue company within the next 3-4 years. Additionally, Route Mobile aims to expand its market share considerably within the country.

TCS announced a significant organizational restructuring under the leadership of its new Chief Executive and Managing Director, K Krithivasan. The company will now be divided into business groups based on industry sectors and geographies.

As part of the changes, Harrick Vin has been promoted to the role of Chief Technology Officer, while Abhinav Kumar will take on the position of interim head for marketing.

The decision to revamp the organizational structure comes after TCS adopted a different approach under the former Chief Executive and Managing Director, Rajesh Gopinathan, back in April 2022. During that time, clients were organized based on their revenue size, leading to some discontent within the company, particularly among senior staff.

Krithivasan’s memo to colleagues revealed that the new structure was the result of extensive meetings with staff and clients over the past two months. The goal is to leverage TCS’s domain and contextual knowledge across units to provide the best value to customers.

This marks the fourth reorganization in the company over the last few years. Gopinathan implemented two of these changes during his tenure, while his predecessor, N Chandrasekaran, also introduced one.

Officials confirmed that within each business group, clients will now be divided according to their respective revenue sizes under the new structure, indicating some retention of the previous organizational setup.

Pharma company Laurus Labs faced a 3% decline in share price during Friday’s trading session, following their weak Q1FY24 results. The company’s performance was negatively impacted by reduced sales, operational deleverage, and higher expenses. At the end of trading, Laurus Labs shares experienced a significant drop of 1.93%, reaching ₹337.25 per share on the NSE.

During Q1 of FY24, Laurus Labs’ consolidated net profit plummeted by 88.8% to ₹28.40 crore, down from ₹252.5 crore in the same period of the previous year. Moreover, the company’s revenue for the first quarter of FY24 saw a decline of 23.2%, reaching ₹1,181.8 crore, compared to ₹1,539 crore in the previous year.

The earnings before interest, taxes, depreciation, and amortization (EBITDA) for Q1FY24 also took a hit, decreasing by 63.2% to ₹166.8 crore from ₹454 crore in the corresponding period of the previous year. Consequently, the EBITDA margin contracted by 154 basis points (bps) to 14.1% from 29.5% YoY.

The management of Laurus Labs, attributed the performance challenges to operational deleverage, a substantial drop in the CDMO business, and price declines in the ARV portfolio compared to the previous year. CDMO stands for contract development and manufacturing organization.

Despite the challenging situation, Laurus Labs is optimistic about a rebound in the second half of the year. The company expects a recovering revenue trend, benefits from cost improvement initiatives, and stabilization of raw material prices. Moreover, the company is progressing with future capex projects to strengthen the CDMO and Bio division, while maintaining a comfortable debt leverage position.

However, various brokerage houses expressed concerns about Laurus Labs’ performance. Global brokerage maintained an ‘Underperform’ rating on the stock, setting a target price of ₹250 per share.

Domestic brokerage Motilal Oswal Financial Services reported that Laurus Labs’ earnings for Q1FY24 were lower than expected, mainly due to reduced traction in the formulation segment. They lowered their earnings estimate for FY24 and FY25 but maintained a ‘Buy’ rating on the stock with a price target of ₹410 per share.

Kotak Institutional Equities retained a ‘Reduce’ call on the stock with a target price of ₹300 per share.

Antique Stock Broking also maintained a ‘Hold’ rating on the stock while reducing the target price to ₹277 from ₹294, valuing the company at 23x P/E on FY25 earnings.

In Q1FY24, Nazara Technologies exhibited an impressive financial performance, experiencing substantial growth in key metrics. The company’s revenue surged by 14% YoY, reaching Rs.254.4 crores, demonstrating its consistent ability to expand its top line. Additionally, the company’s EBITDA grew by a healthy 10% YoY, amounting to Rs.33.1 crores, indicating efficient operational management and profitability.

The Q1FY24 results also revealed a remarkable 31% YoY increase in the company’s Profit After Tax (PAT), reaching Rs.20.9 crores.

Nazara Technologies’ strong performance is further underscored by its key financial ratios. The company achieved an EBITDA margin of 13.0% in Q1FY24, showcasing its ability to generate healthy operating profits relative to its revenue.

With 10 consecutive quarters of YoY growth in both revenue and profits since its IPO, Nazara Technologies continues to establish itself as a leader in the gaming and sports media industry.

The company’s sustained growth in revenue and profits demonstrates its resilience and ability to thrive in the dynamic and competitive market landscape. Sportskeeda, a part of Nazara Technologies, delivered an outstanding performance with a strong 52% YoY growth in revenues and 55% in EBITDA.

As Nazara Technologies remains dedicated to its vision of building a well-diversified gaming platform that evolves with the gaming industry, the company continues to solidify its position as a leading gaming and sports media platform.

SBI Cards and Payment Services declared its Q1FY24 financial results on July 28. The company’s consolidated net profit showed a modest increase of 5%, reaching ₹593 crore, as compared to ₹626.9 crore in the same period last year. This growth was attributed to a combination of deteriorating asset quality and a reduction in net interest margins.

The revenue from the company’s credit card operations experienced a substantial surge of 24%, amounting to ₹4,046 crore, as opposed to ₹3,263 crore in the corresponding period of the previous year. Moreover, the interest income saw a significant YoY rise of 30%, reaching ₹1,804 crore in Q1FY24, compared to ₹1,387 crore in Q1FY23.

However, the company’s net interest margins decreased to 11.5%, reflecting a decline of 176 basis points (bps). On the bright side, fees and commission income witnessed a healthy YoY increase of 23%, reaching ₹1,898 crore in Q1FY24, compared to ₹1,538 crore in Q1FY23.

During the April-June quarter, the company’s asset quality suffered, as gross non-performing assets (NPA) increased to 2.41% of gross advances as of June 30, 2023, compared to 2.24% as of June 30, 2022. Similarly, the net non-performing assets stood at 0.89% as of June 30, 2023, compared to 0.79% as of June 30, 2022. The provision coverage ratio for the quarter-ended June 30, 2023, was reported at 63.8%.

Moreover, the impairment losses and bad debt expenses surged by 60%, making ₹719 crore in the June quarter, in contrast to ₹450 crore in the same period last year.

In the first quarter of this financial year, Sonata Software, a small-cap IT company, demonstrated strong financial performance. Their net profit increased by 5.6% QoQ, reaching Rs.120.1 crore compared to the previous quarter’s Rs.113.7 crore. Additionally, the company’s revenue witnessed a growth of 5.3% QoQ, reaching INR 2,015.3 crore from the previous quarter.

Comparing the net income to the previous year, it showed significant improvement, amounting to Rs.1,201.2 million, whereas a year ago, it was Rs.1,077.6 million.

On the downside, the company’s QoQ EBIT experienced a decline of 25.5%, settling at Rs.147 crore, and the margin dropped to 7.3 percent from the previous quarter’s 10.3 percent.

In terms of earnings per share from continuing operations, basic earnings per share were Rs.8.66, an increase from Rs.7.78 a year ago, while diluted earnings per share from continuing operations were Rs.8.65, also higher than the Rs.7.78 a year ago.

On the Bombay Stock Exchange (BSE), the company’s stock ended the day with a nearly 0.9 percent increase, trading at Rs 1,061.8 per share on Friday, July 28.

Moreover, the company is well on track to achieve a significant milestone of USD 500 million in revenue by FY26. The company has been proactive while emphasizing on large deals and is witnessing a surge in data and artificial intelligence (AI) related engagements.

IDFC First Bank released its Q1 results on Saturday, reporting a substantial net consolidated profit of ₹765 crore. This figure reflects an impressive 61% YoY increase compared to the ₹474 crore profit recorded during the same quarter in the previous fiscal year. The bank’s net interest income (NII) also experienced significant YoY growth, rising 36% from Rs. 2,751 crore in Q1FY23 to Rs. 3,745 crore in Q1FY24.

Throughout the April-June quarter, IDFC First Bank’s core operating profit surged by 45% to ₹1427 crore, showing a considerable improvement from ₹987 crore in Q1FY23. The net interest margin demonstrated a positive YoY growth from 5.77% in Q1FY23 to 6.3% in Q1FY24. However, it slightly declined from the 6.4% recorded in the previous quarter.

In terms of asset quality, there was a notable reduction in Gross Non-Performing Assets (GNPA), which declined to 2.17% as of June 30, 2023, compared to 3.36% on June 30, 2022, and 2.51% on March 31, 2023. Similarly, the Net Non-Performing Assets (NNPA) also saw significant improvement, dropping from 1.30% in June 2022 to 0.70% in June 2023. In the previous quarter, NNPA stood at 0.86%.

The bank’s collection efficiency for urban retail business (excluding prepayments and EMI arrears) remained impressively high at 99.5%. Moreover, the provision coverage ratio increased to 83.12% as of June 30, 2023, compared to 73.13% on June 30, 2022.

The management expressed its satisfaction with the performance of the company. It reiterated that the bank’s focus is on building a strong franchise, highlighted by a high CASA (Current Account Savings Account) Ratio of 46.5%.

The top official expressed gratitude to the shareholders and customers for their unwavering support during the bank’s transformative phase in the past four years. Looking ahead, IDFC First Bank is confident in further enhancing its performance.

Auto component maker Sona BLW Precision Forgings, also known as Sona Comstar, reported a significant surge in its consolidated net profit for the June quarter, registering a remarkable 47% increase to reach Rs 112 crore from Rs 76 crore recorded during the same April-June period in the previous fiscal year.

The company’s revenue from operations also witnessed significant growth, climbing to Rs 731 crore in the current fiscal’s first quarter, from Rs 584 crore in the corresponding period last year.

The company also decided to invest Rs 99.7 crore for expansion of its Chennai plant’s capacity, specifically increasing the production of electric vehicle traction motors from 4 lakh units to 6 lakh units. Furthermore, the board decided to introduce an additional capacity of 5 lakh units of printed circuit board assembly by the fiscal year 2024-2025.

This company has been playing a crucial role as prime ancillary player of EV industry.

The management of the company, expressed satisfaction with the progress made on their key strategic priorities. The company achieved four new Battery Electric Vehicle (BEV) program wins, leading to a remarkable net order book growth of Rs 22,000 crore, with EVs contributing significantly at 78% to this overall value.

The shares of the company closed at Rs.565.10, 4.47% lower than previous day’s close on NSE on Friday.

NBFC player Shriram Transport Finance Company Limited has released its Consolidated financial results for Q1FY24.

During the quarter ended June 30, 2023, the company recorded a total income of Rs. 8292.53 crores, showing QoQ growth of 3.92% compared to Rs. 7979.75 crores reported in the previous quarter ended March 31, 2023.

The net profit for the quarter ended June 30, 2023, stood at Rs. 1705.24 crores, representing a 32.68% QoQ increase from Rs. 1285.19 crores in the quarter ended March 31, 2023.

The Earnings Per Share (EPS) for the quarter ended June 30, 2023, came in at Rs. 45.34, which is higher than the EPS of Rs. 33.82 reported for the previous quarter ended March 31, 2023.

Comparing the same quarter of the previous year, the company’s total income for the period ended June 30, 2023, amounted to Rs. 8292.53 crores, showing a 16.17% YoY growth compared to Rs. 7138.25 crores reported for the period ended June 30, 2022.

The net profit for the period ended June 30, 2023, was Rs. 1705.24 crores, also showing a 26.24 YoY increase from Rs. 1350.83 crores reported for the period ended June 30, 2022.

The Earnings Per Share (EPS) for the period ended June 30, 2023, came in at Rs. 45.34, compared to Rs. 36.06 reported for the period ended June 30, 2022.

Shriram Transport Finance Company Limited’s shares closed at Rs.1817.85 on the NSE.

Financial platform software and solution provider Intellect Design Arena’s share price witnessed an impressive surge of almost 20% to hit the upper circuit during Friday’s trading session, reaching close to its 52-week high level. This substantial increase came in the wake of the software company’s robust financial performance in Q1FY24, as reported on Thursday.

The total revenue for the first quarter of fiscal year 2024 experienced a significant YoY growth of 19%, rising from ₹540 crore to ₹644 crore rupees. The PAT also demonstrated a substantial improvement, leaping by 36% YoY, reaching ₹93 crore in Q1 FY24 compared to ₹69 crore in Q1 FY23.

In addition to the strong financial results, Intellect Design Arena achieved remarkable business milestones in Q1FY24, closing 11 noteworthy deals.

Intellect Design Arena has been offering various technologies. The innovative Turmeric Technology, and the Fabric Technology brings are some of them. The company’s “Platform First” strategy in technology development is driving remarkable efficiencies across various sectors, including Insurance, Wealth, Retail, Risk, and Corporate.

The management of Intellect Design Arena, expressed his satisfaction with the company’s achievements, stating that they have reached an extremely high point in building commercial IPs through their strategic approach to technology development.

Birlasoft, a CK Birla group global IT services provider, announced a remarkable YoY growth of 14% in net profit, reaching ₹137.5 crore for the quarter ending June 30, 2023.

The revenue from operations witnessed a positive trend as well, reaching ₹1,263 crore, reflecting a YoY growth of 9%.

In a sequential comparison, the company’s net profit for the reviewed period showed a significant QoQ increase of 23%.

The management of Birlasoft, expressed satisfaction with the company’s performance, highlighting that their quarterly revenue has exceeded the USD 150 million milestone for the first time. During Q1FY24, their revenue increased by 3.1 percent QoQ, reaching USD 153.6 million.

Birlasoft attributed part of its revenue and earnings for the June quarter to the receipt of USD 2 million resulting from the disengagement of Birlasoft Solutions Inc and Invacare.

However, the company also experienced an 18.8% attrition rate with 12,235 employees, as stated in the official statement.

The stock surged more than 3% and closed at Rs.415.90 on NSE on Friday.

Midcap Pharma player Ajanta Pharma’s shares witnessed a robust surge of nearly 9 percent, reaching a fresh 52-week high of ₹1,735.00 during the morning trade on the NSE on Friday, July 28. This surge came just a day after the company released its financial results for the June quarter. The stock closed at Rs.1615.75.

Over the past year, Ajanta Pharma’s stock has exhibited remarkable growth, gaining approximately 31 percent.

For Q1FY24, Ajanta Pharma reported commendable financial figures, with revenue from operations amounting to ₹1,021 crore and EBITDA reaching ₹271 crore. The company’s Profit After Tax (PAT) for this quarter stood at ₹208 crore, showing a notable improvement from ₹175 crore in the corresponding period.

In response to the June quarter results, several brokerage firms expressed optimism about Ajanta Pharma’s future prospects and predicted a significant upside in the stock’s price going forward.

Motilal Oswal Financial Services, one of the brokerage firms, maintained a ‘buy’ call on the stock with a target price set at ₹1,800, citing a positive earnings outlook and attractive valuation.

Similarly, ICICI Direct, another brokerage firm, also recommended a ‘buy’ call on the stock, projecting a target price of ₹1,950.

It’s worth noting that the brokerage firm highlighted Ajanta Pharma’s increased capital allocation towards the branded generics segment, which accounted for 72 percent of the company’s revenues. This strategic move may have contributed to the positive sentiment surrounding the stock.

Pharma giant Dr. Reddy’s Laboratories Ltd declared its financial results for the quarter ended June 2023. It had a robust quarter. The company reported a Profit After Tax (PAT) of ₹1402.5 crore, showing an impressive growth of 46% sequentially (QoQ) and 18% year-on-year (YoY). Simultaneously, the total revenues of the firm experienced a rise of 7% QoQ and an impressive 29% YoY, amounting to ₹6,738.3 crore.

The company’s EBITDA for Q1FY24 reached ₹2,137.2 crore, representing a good 31.7% margin of the revenues, compared to ₹1,778.9 crore during the corresponding quarter of the previous year.

Additionally, the free cash-flow for Q1 FY24 stood at ₹670 crore (before acquisition payout), while the net cash surplus for the company reached ₹4,980 crore as of June 30, 2023.

Following these robust Q1 results, Dr. Reddy’s share price reached a 52-week high during Thursday’s session. The stock continued its rally on Friday. The stock closed at Rs.5583 on NSE.

Dr. Reddy attributed the impressive 36% increase in global generics’ Q1 sales to regions like North America, emerging countries, and Europe. Notably, revenue from North America saw a significant 79% rise, reaching ₹3,200 crore, while Europe’s revenue reached ₹510 crore. However, the revenue from India experienced a decline of 14%, settling at ₹1,150 crore.

The management further highlighted that revenue from emerging markets reached ₹1,160 crore for the quarter, with a 28% YoY growth . Its revenue from Russia witnessed a huge 75% increase, reaching ₹560 crore.

On Thursday, FMCG giant Nestle reported a net profit of ₹698.3 crore for Q2CY24, with a substantial growth of 35.6% compared to ₹515 crore in the same quarter of the previous year.

The company’s revenue during Q2CY24 experienced a healthy growth of 15.4%, reaching ₹4,658.5 crore from ₹4,036.6 crore, YoY. Its domestic sales grew by 14.6%.

However, on a sequential basis, the net profit declined by 5.1%, and revenue saw a 3.56% drop, QoQ. Reports indicate that Nestle India’s Q2 underlying volume growth was at 4-5%, which fell below analysts’ expectations.

During the April-June quarter, EBITDA rose by 24.7% to ₹1,058.8 crore from ₹849.1 crore, YoY. The EBITDA margin also saw improvement, increasing by 170 basis points (bps) to 22.7% from 21% compared to the previous year.

As per Company sources, MAGGI Noodles and its Milk Products and Nutrition business were the key players in the revenue growth. The Confectionery segment also experienced double-digit growth.

The company’s board of directors approved changing the Financial Year of the company to “April – March” from “January – December,” subject to approvals. Consequently, the current Financial Year of the company would be extended until March 31, 2024, covering a period of 15 months from January 1, 2023, to March 31, 2024. Subsequent Financial Years of the Company would begin from April 1 each year and end on March 31 of the subsequent year.

Following the announcement of Q2 results with lower volume growth than expected, Nestle India’s share price dropped more than 2%. The stock fell as much as 2.08% to at ₹22,325.30 apiece on the NSE.

The engineering and construction giant, L&T, reported an impressive consolidated net profit of ₹2,493 crore in the first quarter of FY24, marking a substantial 46% increase compared to ₹1,702 crore in the corresponding quarter of the previous fiscal year.

L&T’s consolidated revenues also seen a substantial growth, with a by 34% YoY rise to ₹47,882 crore from ₹35,853 crore, with international revenues contributing 40% to the overall figures.

In Q1FY24, L&T successfully secured orders worth ₹65,520 crore, reflecting a robust year-on-year growth of 57%.

The company’s EBITDA has shown a signifiacant 23% surge in Q1FY24, reaching ₹4,869 crore from ₹3,953 crore during the same quarter of the previous year. Although the EBITDA margin experienced a slight YoY decline to 10.2% from 11%.

Highlight of the day was the announcement of its first-ever buy-back decision. L&T shared its ₹10,000 crore worth buyback plan. L&T is looking to buy back a 2.4% stake, approximately 33.33 million shares, from public shareholders through a book building process on the stock exchange, offering up to ₹3,000 per share to willing shareholders.

Several brokerage agencies came with their views. While Morgan Stanley maintained an ‘Overweight’ rating with a target price of ₹2,850 per share, Prabhudas Lilladher upheld a ‘Buy’ rating by raising the target price to ₹2,955.

Pharmaceutical major Cipla delivered a remarkable performance in the first quarter of FY24. Their consolidated net profit surged by 45.1%, reaching ₹995.7 crore compared to ₹696.4 crore in the same quarter last year.

The company’s revenue in Q1FY24 also seen significant YoY growth, rising by 17.7% to ₹6,328.9 crore from ₹5,375.2 crore in the previous year. This increase was primarily driven by strong performance in India, the US, and South Africa. Especially, its US business achieved an all-time high revenue of $222 million, marking a staggering 43% YoY growth.

In a statement, Cipla credited its pipeline and execution for contributing significantly to this growth.

The South Africa Private Market business achieved 13% YoY growth in local currency terms. Both the prescription and OTC (over-the-counter) segments contributed to this double-digit expansion.

The quarter’s Operating income or EBITDA showed a substantial increase of 30.7%, reaching ₹1,493.9 crore from ₹1,143.4 crore in the previous year. This led to an improvement in the EBITDA margin, rising by 230 basis points (bps) to 23.6% from 21.3% YoY.

Cipla continued to invest in Research & Development, with a 27% YoY increase, amounting to ₹349 crore or 5.5% of sales. This investment focused on progressing clinical trials for key pipeline assets and other developmental efforts.

All of its business segments performed well in the Q1.

Ever since the results were out, the stock has been performing well. On Thursday, Cipla’s share price closed 9.63% higher at ₹1,171.45 apiece on the NSE.

Overall, Cipla demonstrated a strong financial performance and promising growth across its various business segments.

Financial results of Colgate-Palmolive (India) Limited for Q1FY24 were out on Wednesday. The company reported a net consolidated profit of ₹273.7 crore, marking a significant YoY increase of 31%. During the quarter ending in June 2023, Colgate’s sales showed a robust growth of 10.8%, reaching ₹1314.7 crore.

The company’s revenue also experienced a positive surge, rising from ₹1,208.3 crore in Q1FY23 to ₹1,338.6 crore in the quarter ending June 2023. Moreover, the Earnings Per Share (EPS) of Colgate improved to ₹10.6 in Q1FY24 from ₹7.71 in the same quarter of the previous fiscal year.

The management of the company has expressed satisfaction with the quarterly results, highlighting the strong sales growth and enhanced profitability ratios. It attributed this success to their well-executed strategy focused on expanding the oral care category. Notably, domestic sales saw a substantial growth of 12.3% compared to the same quarter last year, with toothpaste sales recording high double-digit growth. Moreover, rural markets are looking promising.

The stock reacted positively to the result. It closed with 6.30% gains at Rs.2002.00 apiece on NSE on Thursday.

NBFC major Bajaj Finance Ltd reported strong financial results for the first quarter of FY24, showcasing significant growth across various key metrics. The company’s consolidated net profit reached ₹3,437 crore, marking an impressive 32% increase from the ₹2,596.3 crore recorded in the corresponding quarter of the previous year.

The net interest income (NII) of the company (NBFC) witnessed substantial growth, rising by 26% to ₹8,398 crore in Q1FY24 from ₹6,640 crore in the same period last year.

Bajaj Finance also experienced remarkable expansion in its assets under management (AUM), which surged by 32% YoY to ₹270,097 crore. Notably, the company achieved its highest-ever quarterly increase in AUM, adding ₹22,718 crore in Q1FY24. The AUM mix remained stable during the quarter.

The number of new loans booked during the quarter soared by 34% YoY to 9.94 million, the highest ever recorded in a quarter.

However, despite these positive developments, the cost of funds rose to 7.61% YoY in Q1FY24, an increase of 22 bps over Q4 FY23, impacting the net interest income. The company anticipates a gradual moderation in NII to persist throughout FY24.

On the asset quality front, Bajaj Finance demonstrated improvement as the gross non-performing assets (NPA) ratio declined to 0.87% in the April-June quarter, down from 0.94% in the previous quarter, and 1.25% in the same period the previous year. The net NPA ratio also improved, reaching 0.31% in Q1FY24, a decrease from 0.34% sequentially and 0.51% YoY. The company provided long-term guidance for gross NPA at 1.2-1.4% and net NPA at 0.4-0.5%.

Bajaj Finance’s long-term guidance for Return on Assets (RoA) increased to 4.6-4.8% from the earlier guidance of 4-4.5%, while the Return on Equity (RoE) long-term guidance rose to 21-23% compared to 19-21% earlier.

The company’s customer franchise expanded significantly, reaching 72.98 million, a 21% YoY growth. In Q1FY24, Bajaj Finance witnessed its highest-ever quarterly increase in customer franchise, adding 3.84 million customers.

The deposits book showed remarkable growth, rising by 46% YoY to ₹49,944 crore.

Bajaj Finance maintained a provisioning coverage ratio of 65% on stage 3 assets as of June 2023. Additionally, the capital adequacy ratio (including Tier-II capital) in Q1FY24 was at 24.61%, with Tier-I capital at 23.01%.

Despite these strong financials, the announcement of Q1 results resulted in a sharp drop in Bajaj Finance’s share price. However, the stock has seen a strong comeback on Thursday. The shares of Bajaj Finance are trading with 1.74% gains at Rs.7,555.85 apiece on NSE.

Private lending major Axis Bank posted its Q1 financial results on Wednesday, showcasing robust performance with a consolidated net profit of ₹5,797 crore. This impressive figure marked a substantial 41% increase compared to the ₹4,125 crore reported in the corresponding quarter of the previous fiscal year. The bank’s net interest income (NII) also demonstrated remarkable growth, surging by 27% from ₹9,384 crore in Q1FY23 to ₹11,958 crore in the quarter ending June 2023. Furthermore, the net interest margin (NIM) for Q1FY24 stood at 4.10%, exhibiting a noteworthy 50 basis points (YoY) improvement.

During the April-June quarter, Axis Bank witnessed a significant 36% jump in interest income, reaching ₹25,556.77 crore YoY. Conversely, the interest expenses incurred by the bank during the reporting quarter amounted to ₹13,598 crore, displaying a substantial YoY growth of over 45%.

In terms of asset quality, Axis Bank’s Gross Non-Performing Assets (GNPA) during Q1 were reported at 1.96%, a slight improvement from 2.02% in the corresponding quarter of the previous fiscal year. The Net Non-Performing Assets (NNPA) stood at 0.41% compared to 0.39% in Q1FY23. The bank also managed to recover ₹554 crore from written-off accounts, as stated in the release.

Following the release of the Q1 results, Axis Bank’s shares settled 1.37% higher at ₹975.70 apiece on Wednesday. Overall, the bank exhibited strong performance across various financial indicators, reinforcing its position in the market.

Mid-cap IT firm Cyient released its Q1FY24 financial results on July 25. The company reported a consolidated net profit of ₹168.10 crore, marking an impressive 45% increase from ₹116.10 crore in the same period last year. However, the engineering and IT services firm fell just short of analysts’ expectations due to the impact of rising expenses, despite a strong order pipeline and recovery in some sectors.

In terms of revenue, Cyient’s revenue from operations during the Q1FY24 saw significant growth, with ₹1,686.50 crore, a substantial 35 per cent rise from ₹1,250.10 crore in the corresponding period of the previous year.

Looking ahead, Cyient expressed its outlook for fiscal year 2023-24, expecting the revenue growth in their Digital, Engineering & Technology (DET) segment to be in the range of 15-20% YoY in constant currency terms. Furthermore, they anticipate a YoY improvement of 150-250 bps in normalized EBIT margins for the DET segment.

According to their the Executive Vice-Chairman and Managing Director of Cyient, the company’s positive Q1 FY24 results were highlighted by a quarterly group revenue of $205.30 million, showing a remarkable 28.60% YoY growth in constant currency. The DET business of Cyient encompasses the former Services business (including core services and acquisitions) and a portion of the Engineering Parts business that was formerly classified under DLM.

During the quarter, Cyient secured 6 major deals in the DET segment, with a total contract potential of $48.8 million. The order intake for the quarter reached $193.2 million, a significant 32.5% increase YoY. With a strong pipeline for the year ahead, Cyient remains optimistic about its future prospects.

Lately, the stock price has been seeing nice traction.

IT firm Tech Mahindra reported weak Q1FY24 numbers as expected, with a decline in both profit and EBITDA. Although revenue showed a modest YoY growth, it faced significant headwinds, impacting profitability. Despite the challenging quarter, the company remains confident in delivering long-term value to its customers and shareholders.

During Q1FY24, Tech Mahindra’s revenue fell 4.1% QoQ but rose 3.5% YoY to ₹13,159 crore. The company’s consolidated PAT for the quarter was ₹693 crore, representing a 38% decline QoQ and 38.8% YoY.

EBITDA for Q1FY24 stood at ₹1,338 crore, showing a decline of 33.8% QoQ and 28.8% YoY. Earnings per share (EPS) were at ₹7.82.

Tech Mahindra highlighted that it secured a net new deal worth $359 million during Q1FY24, compared to $802 million in the same quarter last year and $592 million in Q4FY23.

The company witnessed a decrease in its total headcount both on a yearly and quarterly basis. As of June 30, 2023, the total headcount was 1,48,297, down 6.2% YoY and 2.7% QoQ.

When it comes to segments, the CME (communications, media, and entertainment) segment exhibited a poor performance, experiencing an 8.2% YoY and 9.4% QoQ revenue decline. The BFSI (banking, financial services, and insurance) segment saw a 5.4% YoY and 3.2% QoQ revenue decline, while the retail, transport, and logistics segment faced a 2% YoY and 0.3% QoQ revenue decline.

There is a silver-lining. On a positive note, the manufacturing segment’s revenue rose by 8.6% YoY and 1.8% QoQ. Similarly, the technology segment witnessed an 8% YoY and 0.1% QoQ rise in revenue.

In terms of geographical performance, except for the Americas, both Europe and ‘rest of the world’ saw declining revenues. Revenue in the Americas rose by 1.4% YoY but declined by 0.5% QoQ. Europe revenue fell by 5.4% YoY and 6.7% QoQ. The ‘rest of the world’ market segment also experienced a decline, with revenue falling by 5.2% YoY and 8.2% QoQ.

The stock has seen significant drop. The shares are trading 4.40% lower at Rs.1092.90 apiece on Thursday.