News Wrap: Asian Markets, Q3 Earnings; RBI Monetary Policy, RBI Gov On Crypto; RIL Investments, Zomato's NBFC Plan & More...
February 10, 2022:
Indian benchmark indices Sensex and Nifty50 closed higher in the green territory.
The 30-Scrip BSE Sensex ended 460.06 points or 0.79% higher at 58,926.03.
The NSE Nifty climbed 142.05 or 0.81% to close at 17,605.85.
Apart from auto and PSU bank indices, all other sectoral indices ended in the green territory, with IT, media, metal, bank, financial services indices rising more than 1%.
BSE Smallcap and Midcap indices inched up 0.044% and 0.30% each.
Japan’s Nikkei 225 closed 116.21 or 0.42% higher at 27,696.08.
Australia’s ASX 200 rose 20.20 points or 0.28% to 7,288.50.
KOSPI, the major stock market index of South Korea, closed 0.11% higher at 2,771.93.
Hong Kong’s Hang Seng index climbed 0.38% to close at 24,924.35.
China’s SZSE Component Index fell 0.73%, while Shanghai Composite rose 0.17%.
Top Stocks On Encome.io Dashboard:
Earnings In Focus:
Hindalco Q3 Consolidated Net Profit Jumps 96% YoY To Rs 3,675 Cr
Hindalco Industries saw a 96% year-on-year (YoY) rise in consolidated net profit at Rs 3,675 crore for the quarter ended 31 December 2022.
The company reported a 44% YoY rise in consolidated revenue from operations at Rs 50,272 crore in Q3FY22.
The company’s consolidated operating profit rose 38% YoY to Rs 7,624 crore on the back of aluminium business growth in India.
Hindalco's domestic aluminium business posted its highest quarterly operating profit of Rs 3,376 crore, up 131% YoY.
Its domestic copper business revenue rose 67% YoY to Rs 10,255 crore.
The company's subsidiary Novelis Corporation reported a 33% YoY increase in revenues to $4.3 billion and a record-high operating profit of $506 million.
Hindalco’s overall consolidated operating margins in Q3FY22 trimmed to 15.16%, compared with 15.79% a year ago.
Mahindra & Mahindra Saw 150% In Standalone Net Profit In Q3
Automotive manufacturer Mahindra & Mahindra posted a 150% increase in standalone net profit at ₹1,350.93 crore for the quarter ended 31 December 2021, compared with ₹540.86 crore a year ago.
Revenue from operations came in at ₹15,238.82 crore at the standalone level in Q3FY22, up 8.4% from ₹14,056.54 crore posted a year ago.
The automotive manufacturer claims to have a booking pipeline of 155,000 units.
Piramal Enterprises Net Profit Surges 11% YoY In Q3
Piramal Enterprises posted an 11% growth in its consolidated net profit at Rs 888 crore for the quarter ended December 31, 2021, compared with a net profit of Rs 799 crore posted a year ago.
Consolidated net sales came in at Rs 3,816 crore in Q3FY22, compared with Rs 3,169 crore a year ago.
The pharmaceuticals vertical reported a revenue of Rs 1,578.05 crore in Q3FY22 as against Rs 1,373.64 crore a year ago.
The financial services unit clocked a revenue of Rs 2,238.11 crore versus Rs 1,794.97 crore a year ago.
Bharat Forge Q3 Net Profit Jumps To ₹422 Cr From A Loss Of ₹ 210.4 Cr A Year Ago
Forging company Bharat Forge for the quarter ended December 2021 reported a consolidated net profit of ₹422 crore, compared with a net loss of ₹ 210.4 crore a year ago.
There were 'exceptional gains' of ₹ 167.18 crore in Q3FY22, whereas, in Q3FY21, the company reported 'exceptional losses' of ₹299.45 crore.
Revenue from operations grew 39% YoY to ₹2,394 crore in Q3FY22, compared with ₹ 1,723 crore clocked in Q3FY22.
Total expenses increased by 28% to ₹ 2,093 crore from ₹ 1,633 crore a year ago.
Kalyani Powertrain (KPL), a fully-owned subsidiary of Bharat Forge, converted its investment in Zero Coupon Optionally Convertible Debentures of Tork Motors (TPML) into equity shares, aggregating to ₹40 crore.
KPL's interest in TMPL's equity shares has grown to 60.66% as a result of this conversion (on a fully diluted basis). In the consolidated financial results for the quarter and period ended December 31, 2021, a gain of Rs. 27 crore on the fair valuation of TMPL shares was reported as an exceptional item.
MRF Net Profit Declines 71% YoY In Q3
Tyre manufacturing company MRF saw a 71% on-year decline in net profit for the quarter ended December 2021 to Rs 149 crore from Rs 521 crore posted a year ago.
The company's revenue from operations surged 6% YoY to Rs 4,920 crore in Q3FY22 from Rs 4,642 crore in Q3FY21.
The cost of materials consumed surged by 14% to ₹2,989 crore. Changes in inventories of finished goods bore a loss of ₹106 crore in Q3FY22 versus a gain of ₹224 crore in Q3FY21.
For the trailing nine months, net profit declined 47% to ₹491 crore, while revenue from operations leapt to ₹13,789 crore from ₹11,184 crore.
Revenue from operations for the quarter and nine months period consists of an industrial incentive of ₹80.37 crore received from the Telangana Government.
The board also approved the re-appointment of Rahul Mammen Mappillai as MD for a span of five years w.e.f May 4, 2022.
The company also announced a second interim dividend of ₹3 apiece.
Zomato Narrowed Down Losses To Rs 63.2 Cr From Rs 352.6 Cr A Year Ago
Zomato’s consolidated loss narrowed to Rs 63.2 crore in the quarter ended 31 December 2021, compared with a loss of Rs 352.6 crore posted a year ago.
Revenue from the operations stood at Rs 1,112 crore, up 82.7% YoY from Rs 609.4 crore logged a year ago.
The company’s Gross Order Value (GOV) surged by 84.5% YoY and 1.7 percent QoQ to Rs 55 billion or 5,500 crore ($733 million) in Q3FY22.
"The number of orders grew 93 percent YoY and 5 percent QoQ. Average order value (AOV, which includes customer delivery charges) shrunk by ~3% QoQ, mostly on account of a reduction in customer delivery charges," the company said in its earnings report.
Adjusted EBITDA loss in Q3FY22 shrank to Rs 2.7 billion ($36 million) as against Rs 3.1 billion ($41 million) in Q2FY22.
RBI Monetary Policy:
The Marginal Standing Facility (MSF) rate and the bank rate remains the same as before at 4.25%.
The Reverse repo rate also remains unaltered at 3.35%.
RBI projects retail inflation at 4.5% in FY 22-23.
The inflation forecast for FY 21-22 remains unchanged at 5.3%, with Q4 at 5.7%.
RBI projects real GDP growth rate for FY 22-23 at 7.8%.
RBI increased the cap under E-Rupi Prepaid Digital Vouchers from Rs10,000 To Rs1 lakh a voucher. It can be used more than once until the amount of the voucher gets fully redeemed.
RBI increased the investment ceiling in the debt market for foreign portfolio investors (FPIs) from Rs 1,50,000 crore to Rs 2,50,000 crore under the voluntary retention route (VRR).
RBI increased the National Automated Clearing House (NACH) mandate limit from Rs 1 crore to Rs 3 crore for settlements regarding the invoice discounting mechanism for MSMEs — Trade Receivables Discounting System (TReDS).
RBI extended the on-tap liquidity window for Emergency Health Services and Contact-intensive Sectors till June 30, 2022, from March 31, 2022.
RBI Governor On Cryptocurrencies:
“Investors in cryptocurrency should keep in mind that they are investing at their own risk. They should also keep in mind that the cryptocurrency has no underlying, not even a tulip,” the Reserve Bank of India Governor on Cryptocurrencies. RBI Governor, here, referred to the Dutch tulip bulb market bubble, also known as 'tulipmania', which occurred in Holland during the early 1600s.
More To Know:
Reliance Industries' Wholly-Owned Subsidiary Reliance New Energy (RNEL) To Pick A Stake In EV Technology Company Altigreen Propulsion Labs For A Consideration Of Rs 50.16 Cr.
Online travel services provider Cleartrip plans to hire 400 persons to take the total employee count to 700 by December 2022.
Reliance Industries Ltd (RIL) acquired another 10.37% in Sterling and Wilson Renewable Energy Ltd (SWREL) via an off-market purchase of shares. RIL's arm - Reliance New Energy Limited (RNEL), now owns a 40% stake in SWREL.
Torrent Power Ltd signs a deal with Blue Daimond Properties Private Limited and Balrampur Chini Mills Limited to acquire 25 Mw solar power plants for Rs 163 crore.
Food tech giant Zomato will invest $400 million over the next two years in the quick commerce segment. It said it is in the process of setting up an NBFC, which will help it disburse loans to customers, restaurants and delivery partners.
The Hydrocarbon business of Larsen & Toubro (L&T) has bagged two offshore projects from a prestigious overseas client, which is reportedly worth between Rs 1000 crore to Rs 2500 crore.