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Last Updated : May 30, 2016 11:03 AM IST | Source: Moneycontrol.com

Sensex, Nifty marginally higher; Hindalco soars 11%, IT leads

Hindalco shot up 11 percent after stellar performance in Q4. Profit more than doubled to Rs 356.3 crore during the quarter from Rs 159.5 crore YoY with operating profit margin rising 450 basis points at 13.5 percent.


Moneycontrol Bureau

10:58 am Market Update
: Equity benchmarks continued to trade higher. The Sensex rose 67.28 points to 26720.88 and the Nifty advanced 21.65 points to 8178.30.

10:50 am Interview:
A one-time employee stock ownership plan (ESOP) impacted margins slightly in the fourth quarter of FY16, says Dilip Bidani, CFO of Dr Lal PathLabs. The company’s margins contracted 110 basis points (bps) for the full year.

Dr Lal PathLabs reported strong fourth quarter numbers with 15.1 percent jump in revenue to Rs 1197.7 crore and 23.6 percent rise in operational efficiency (EBITDA) to Rs 54.13 crore. Margins in Q4 expanded by 200 bps.

Bidani expects margins to further dilute by 200-300 bps in coming two to three years. However, growth of the company will be better than the expected industry growth of 16-17 percent in FY17, he says.

The debt-free company has a cash balance of Rs 294 crore in its books as of March 31, 2016 and hence, is no hurry to raise cash in the near-term. 

10:35 am Earnings Estimates:
NTPC's fourth quarter earnings are expected to be tepid as profit is seen falling 15 percent year-on-year to Rs 2,490 crore and revenue may decline 5 percent to Rs 18,322 crore, according to average of estimates of analysts polled by CNBC-TV18.


Operating profit (EBITDA - earnings before interest, tax, depreciation and amortisation) is likely to increase 5 percent to Rs 4,895 crore and margin may expand 263 basis points to 26.7 percent compared to year-ago period.


Adjusted profit may decline on lower efficiency gains and other income. Year-ago period base was higher due to Q4 fixed cost recovery being higher.

Close

Other income is expected to be plunge 33 percent YoY as change in CERC's regulations has reduced incentives earned by NTPC.


10:20 am Market Expert: The Indian markets have a lot of things going for it from the macro perspective but valuations may not be cheap once a stock investor gets done to researching ideas, says Sanjeev Prasad, Senior Executive Director and Co-Head Strategy, Kotak Institutional Equities.

In an interview with CNBC-TV18, Prasad said earnings are likely to pick up going forward, thanks to an expected economic recovery in the second half of the fiscal and low base, but said cheap valuations were difficult to come across stocks and sectors.

Also read -
Tata Motors Q4 profit seen up 109%, standalone loss may narrow

10:00 am Market Check


Equity benchmarks were marginally higher in morning trade with the Nifty reclaiming 8200, supported by technology, select banks and auto stocks.


The 30-share BSE Sensex rose 72.40 points to 26726 and the 50-share NSE Nifty advanced 21.30 points to 8177.95. The market breadth remained positive as about 1060 shares advanced against 762 declining shares on Bombay Stock Exchange.


Hindalco shot up 11 percent after stellar performance in Q4. Profit more than doubled to Rs 356.3 crore during the quarter from Rs 159.5 crore YoY with operating profit margin rising 450 basis points at 13.5 percent.


Coal India also gained 4.5 percent as the board of directors approved revision of coal prices by approximately 6.29 percent over current price.



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First Published on May 30, 2016 10:00 am
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