Overall the earnings season was mixed to positive where expectations were low. Consumption basket did better than expected as there was fear of a slowdown in retail consumption, says Amit Gupta, Co-Founders and CEO at TradingBells.
The Indian market witnessed profit booking at higher levels triggered by Moody’s Investors Services outlook change on India. The global rating agency slashed India’s rating outlook to “negative” from “stable”, citing increasing risks to growth.
In reply to Moody’s outlook change, the Finance Ministry, in a statement said that the fundamentals of the Indian economy remain robust with inflation under check and bond yields low.
Nomura Research also lowered its gross domestic production (GDP) growth projections to 4.9 percent from 5.7 percent in 2019 and to 6 percent from 6.9 percent for 2020.
For the week, the Nifty rose 0.15 percent, and the Sensex gained 0.4 percent.
Sectorally, the action was seen in Realty, Bankex and Consumer Durable indices. Nifty Bank which reclaimed 31,000 closed with gains of 116 points to 30,749.
Overall the earnings season was mixed to positive where expectations were low. Consumption basket did better than expected as there was fear of a slowdown in retail consumption.
Most of the private banks posted inline or better than expected results while among public bank basket only big boy State Bank of India came with strong earnings, Amit Gupta, Co-Founders and CEO at TradingBells felt.
In the IT pack Infosys, HCL Tech and Tech Mahindra did well while TCS's earnings were below expectations. Most of the mainline auto companies posted inline or better than expected results, Gupta added.
Below are top 10 companies which declared their September quarter numbers this week:
Eicher Motors: Q2 net profit jumps 18.5% YoY to Rs 570.5 crore
Eicher Motors posted an 18.5 percent year-on-year (YoY) jump in its July-September quarter (second quarter) net profit at Rs 570.5 crore. Revenue fell 9.2 percent to Rs 2,181.9 crore.Earnings before interest, tax, depreciation and amortisation (EBITDA) fell 25.8 percent to Rs 546.1 crore, while EBITDA margin dipped 550 bps to 25.1
percent. Other income stood at Rs 145 crore versus Rs 95.3 crore. Tax expense in Q2 stood at Rs 28.8 crore versus Rs 260 crore YoY.
Mahindra & Mahindra: Q2 net profit dips 23.8% to Rs 1,355 crore
Mahindra and Mahindra (M&M + MVML) reported 23.8 percent fall in its September quarter net profit at Rs 1,355 crore against Rs 1,778.8 crore in a year-ago period. However, the company beat the street estimates on the profit front.
The revenue of the company was down 14.5 percent at Rs 10,935 crore versus Rs 12,790 crore YoY. The tax expense for the quarter stood at Rs 403.4 crore versus Rs 519.4 crore YoY.
EBITDA was down 16.7 percent at Rs 1,541 crore versus Rs 1,849.3 crore while the EBITDA margin was down marginally at 14.1 percent.
Its automotive business revenue fell 18.4 percent at Rs 6,892.8 crore while the earnings before tax (EBIT) margin was down at 5.8 percent YoY. The farm equipment business revenue declined 9.8 percent at Rs 3,631.5 crore versus Rs 4,028 crore, and the EBIT was down 13.7 percent at Rs 702 crore versus Rs 803 crore YoY.
Sun Pharma: Q2 profit at Rs 1,065 crore
Healthcare major Sun Pharmaceutical Industries on November 7 reported consolidated profit at Rs 1,065 crore during the July-September period, against loss of Rs 269.6 crore in the same period last fiscal. The company had reported one-time loss of Rs 1,214.4 crore in Q2FY19 with respect to Modafinil antitrust litigation.
Consolidated revenue during the quarter grew by 17.1 percent YoY to Rs 8,123.3 crore, backed by sales in India and the rest of the world. India sales increased 35 percent to Rs 2,515 crore and the rest of the world sales jumped 49 percent to $161 million compared to the year-ago period.
Titan Company: Q2 misses estimates, profit rises 1.8% on weak jewellery business
Titan Company reported muted numbers for the September quarter. Profit grew 1.8 percent at Rs 320.2 crore on the back of subdued growth in the jewellery business which contributes 80 percent to revenue. Profit in September quarter 2018 stood at Rs 314.4 crore.
Revenue during the quarter grew by 0.6 percent YoY to Rs 4,435 crore, the company said in its BSE filing.
Jewellery business revenue fell 1.5 percent to Rs 3,528 crore compared to the year-ago period and its EBIT declined 2 percent and margin contracted 5 bps YoY.
Tech Mahindra: Q2 net profit up 17% at Rs 1,124 croreTech Mahindra reported 17.2 percent jump in its September quarter net profit at Rs 1,124 crore against Rs 959.4 crore in the previous quarter. The IT
company’s rupee revenue rose 4.8 percent at Rs 9,070 crore against Rs 8,653 crore.
EBIT was up 16.8 percent at Rs 1,159.4 crore, while EBIT margin was up at 12.8 percent, QoQ. The company's attrition rate remained unchanged at 21 percent, while the digital revenue was up 11.8 percent, QoQ.
PNB: Q2 profit at Rs 507.1 crore
Public sector lender Punjab National Bank on November 5 reported a profit at Rs 507.1 crore in Q2FY20, though asset quality weakened sequentially. Other income, PPoP and lower provisions compared to the year-ago period helped the lender report a profit during the quarter.
The numbers were better than expected. An analysts' poll conducted by CNBC-TV18 had expected the bank to report a loss of Rs 1,521.5 crore. The bank had reported a loss of Rs 4,532.35 crore in the year-ago period due to a spike in provisions.
Net interest income (NII) during the September quarter increased 7.3 percent YoY to Rs 4,263.8 crore, with credit de-growth of 0.7 percent YoY. Deposits in Q2FY20 increased 7 percent YoY.
HDFC: Q2 net profit surges 60% YoY to Rs 3,961.5 crore
Housing Development Finance Corporation (HDFC) registered a 60.5 percent YoY jump in its standalone Q2 FY20 net profit at Rs 3,961.53 crore on the back of better operating performance. The company had reported a profit of Rs 2,467.08 crore in the same quarter last year.
Revenue of the company rose 19.9 percent YoY to Rs 13,487.44 crore. Tax expense stood at Rs 568.9 crore versus Rs 1,022 crore in the year-ago period. Dividend income increased to Rs 1,073.8 crore. Loan growth stood at 12 percent YoY.
Gross non-performing assets (NPAs) was marginally higher at 1.33 percent versus 1.29 percent. NII rose 16.2 percent YoY to Rs 3,077.7 crore. Net interest margin was unchanged at 3.3 percent quarter-on-quarter (QoQ).
UPL: Q2 profit plunges 67% to Rs 89 crore on one-time loss
Agrochemical company UPL's second-quarter consolidated net profit fell sharply by 67 percent due to one-time exceptional loss. Profit during the quarter declined to Rs 89 crore, against Rs 270 crore reported in the same period last year.
The company reported a one-time loss of Rs 305 crore during the quarter against a loss of Rs 57 crore in corresponding quarter previous fiscal.
"Exceptional items for the period reported majorly included cost related to Agrofresh litigation in the USA and severance and integration costs due to acquisition of Arvsta group and LATAM restructuring expenses," the company said in its BSE filing.
HPCL: Q2 profit rises 30% to Rs 1,052 cr QoQ
Oil marketing company Hindustan Petroleum Corporation (HPCL) reported a massive 29.8 percent QoQ growth in the September quarter, but it was lower than analyst expectations due to lower revenue. The profit increased to Rs 1,052.3 crore in the quarter ended in September against Rs 811 crore in the June quarter.
The revenue from operations fell 14.3 percent sequentially to Rs 60,862 crore during the July-September period.The calculated gross refining margin for the quarter stood at $2.60 a barrel, which was lower than a poll of analysts conducted by CNBC-TV18 which was
pegged at $4.40 per barrel.
Tata Steel: Q2 profit rises 6% on tax writeback
Tata Steel on November 6 reported a 6 percent YoY increase in the second quarter consolidated profit at Rs 3,302.31 crore, largely driven by tax writeback due to recent cut in the corporate tax rate. Its profit stood at Rs 3,116.2 crore in the corresponding period of the last fiscal.
Consolidated revenue from operations in Q2FY20 fell 15.44 percent to Rs 34,579.2 crore, the company said in its BSE filing. Tata Steel received a tax credit of Rs 4,050 crore during the quarter against tax expenses of Rs 2,316.8 crore in the same period last fiscal.
Lupin: Q2 earnings in red on the one-time loss of Rs 546 crore
Lupin reported a consolidated net loss of Rs 127.1 crore in the quarter ended September as against a profit of Rs 266 crore in the same period last fiscal and Rs 303 crore in Q1 FY20. The pharma company posted a one-time loss of Rs 546.5 crore. However, profit before one-time loss stood at Rs 457.3 crore.
Other income stood at Rs 133.3 crore versus Rs 230.7 crore YoY. Consolidated revenue increased 10.3 percent YoY to Rs 4,359.7 crore.
Godrej Consumer Products: Q2 profit falls 28%
FMCG company Godrej Consumer Products reported a steep 28.4 percent YoY decline in the second quarter consolidated profit at Rs 413.88 crore, meeting analyst expectations. Its profit in the corresponding period last fiscal stood at Rs 577.73 crore.
Revenue during the quarter fell 1.14 percent to Rs 2,630.2 crore compared to year-ago, with domestic volume growth at 7 percent. "Volume growth was led by new product launches, effective marketing campaigns and consumer offers," company said in its BSE filing.
MRF: Q2 net down 18% at Rs 229 crore
MRF reported 17.73 percent decline in consolidated net profit at Rs 228.96 crore for the quarter ended September 30, 2019. The company posted a profit of Rs 278.29 crore for the year-ago period, MRF said in a regulatory filing. Revenue from operations stood at Rs 4,007.63 crore as against Rs 3,946.77 crore in the same period a year ago, a growth of 1.57 percent.
Total expenses during the second quarter were higher at Rs 3,760.80 crore as compared to Rs 3,649.87 crore in the year-ago period, it added. The company's board has declared an interim dividend of Rs 3 per equity share for the financial year ending March 31, 2020.
Bharat Forge: Q2 profit rises 7.6% to Rs 245 crore
Auto components major Bharat Forge registered a 7.6 percent YoY growth in the second-quarter profit, driven by lower tax and higher other income. Profit during the quarter increased to Rs 245 crore from Rs 227.5 crore in the same period last year.
Revenue fell sharply by 25 percent YoY to Rs 1,259.4 crore, as domestic business de-grew 35.6 percent YoY. Exports, which contributed 61 percent to the topline, also dropped 18.1 percent YoY to Rs 772.5 crore in the September quarter due to lower oil and gas revenues.
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