News Wrap: Asian Markets, Trending Stocks; Q3 Earnings; Jan PV Retail Sales; Ujjivan SFB Fund Raise Plans; India’s Vaccination Drive & More…
February 2, 2022:
Indian benchmark indices Sensex and Nifty50 ended the day in the red.
The 30-Scrip BSE Sensex ended at 1,023.63 points or 1.75% lower at 57,621.19.
The NSE Nifty slipped 302.70 points or 1.73% to close at 17,516.30.
On the sectoral front, except for PSU bank, metal and power, all other sectoral indices bled red with consumer durable, healthcare, reality pharma, media, FMCG, IT, auto falling 1-2 percent. Financial services and private bank indices shed more than 2 percent.
BSE Midcap and smallcap indices tumbled 1.25% and 0.75% each.
India VIX rose 8.15%.
Japan’s Nikkei 225 closed 191.12 points or 0.70% lower at 27,248.87.
Australia’s ASX 200 fell 0.13% to 7,110.80.
KOSPI, the major stock market index of South Korea, closed 0.19% lower at 2,745.06.
Hong Kong’s Hang Seng index jumped 0.025% to close at 24,579.55.
China’s SZSE Component Index and the Shanghai Composite closed 0.96% and 2.03% higher.
Earnings In Focus:
Indian Bank Q3 Standalone Net Profit Rises 34% YoY To Rs 689.73 Cr
Indian Bank posted a 34% rise in standalone net profit at Rs 689.73 crore for the December 2022 quarter from Rs 514.28 crore in a year-ago period.
Total income in the third quarter jumped to Rs 11,481.80 crore as against Rs 11,167.86 crore a year ago.
Net interest income (NII), the difference between the interest revenue and interest expenditure, jumped 2% year-over-year to Rs 4,395 crore from Rs 4,314 crore a year ago.
On the asset quality front, the gross non-performing assets (NPAs) ratio stood at 9.13% at the end of December, lower than 9.56% in the September quarter. Net NPA was also down at 2.72% in Q3FY22 compared with 3.26% in Q2FY22.
The bank's consolidated net profit rose to Rs 731.58 crore in Q3FY22 against Rs 534.91 crore in Q3FY21.
Total income came higher at Rs 11,645.82 crore in Q3FY22 compared with Rs 11,317.86 crore in Q3FY21.
Union Bank Reports Jump In Net Profit, NII In Q3
Union Bank of India saw a 49.3% year-over-year (YoY) jump in its net profit at Rs 1,085 crore for the quarter ended December 2021 (Q3FY22) as against Rs 726 crore a year ago. Sequentially, profit declined from Rs 1,526 crore in Q2FY22.
The bank's Net Interest Income (NII) increased 8.9% YoY to Rs 7,174 crore, from Rs 6,590 crore in Q3FY21.
The net interest margins improved to 3.0% in Q3FY22 from 2.94% in Q3FY21 and 2.95 per cent in Q2FY22.
The non-interest income declined 15.01% YoY to Rs 2,524 crore in Q3FY22 compared with Rs 2,970 crore in Q3FY21.
On the asset quality front, gross NPAs fell to 11.62% in Q3FY22 from 13.49% in Q3FY21. Sequentially, Gross NPAs fell from 12.64% in Q2FY22.
The net NPAs stood at 4.09 per cent in the December-end quarter, up from 3.27% in the prior-year quarter. Sequentially, net NPAs fell from 4.61% in Q2FY22.
TVS Motor Post Increase In Net Profit, Revenue, EBITDA
TVS Motor Company posted a 9% year-over-year (YoY) rise in net profit at Rs 288.8 crore for the quarter ended December 31, 2021, below analysts' estimate of Rs 246.7 crore.
The company reported a 5.8% YoY increase in revenues to Rs 5,706.4 crore, beating the Street's estimate of Rs 5,488 crore.
TVS Motor reported a weak demand in the third quarter, with only 8.35 lakh units sold compared with 9.52 lakh units a year ago. Two-wheeler export sales, however, rose by 12% compared to Q3 FY21.
4.46 lakh units of Motorcycles were sold in Q3FY22 as against sales of 4.26 lakh units in Q3FY21.
2.56 lakh units of scooters were sold in Q3FY22 compared with 3.11 lakh units in Q3FY21.
The company reported its highest ever EBITDA (earnings before interest, tax, depreciation and amortization) at ₹568 crore in Q3FY22 as against ₹511 crore in Q3FY21.
The EBITDA margin was 10% in Q3FY22 versus 9.5% in Q3FY21.
NALCO Q3 Consolidated Profit Increased Three-Fold To Rs 830.67 Cr
National Aluminum Company Ltd (Nalco) in the December-ended quarter reported over three times rise in consolidated profit to Rs 830.67 crore from Rs 239.71 crore a year ago.
Income in Q3FY22 increased to Rs 3,845.25 crore from Rs 2,414.95 crore in Q3FY21.
On a standalone basis, net sales came in at Rs 3,773.26 crore in Q3FY22, up 58.62% from Rs. 2,378.79 crore in Q3FY21.
Net profit rose 246.47% to Rs. 830.86 crore in December 2021 from Rs. 239.81 crore in December 2020.
EBITDA stood at Rs. 1,262.51 crore in Q3FY21, up 168.6% from Rs. 470.03 crore in Q3FY22.
Stocks In News:
State Bank of India (SBI) share price hit a fresh 52-week high of Rs 549.05 apiece, post strong third-quarter earnings.
Lupin Ltd share price dragged to a 52-week-low of Rs 801.55 apiece over weak third-quarter earnings.
IndiGo shares closed at Rs 2170.10, with more than a 9% gain in intraday post Q3 results.
Bank Of Baroda gained more than 6% to close at Rs 112.85.
PV Retail Sales See Slump Amidst Chip Shortage In Q3
Passenger Vehicle (PV) retail sales in Jan 2022 fell 10.12% to 2,58,329 units from 2,87,424 units in Jan 2021, as per the Federation of Automobile Dealers Associations (FADA) data.
The report cited the semiconductor shortage behind the fall.
Sales Across Categories:
Ujjivan SFB Plans To Raise ₹600 Cr From Institutional Investors
Ujjivan Small Finance Bank (USFB) is seeking to raise fresh capital of ₹600 crore from institutional investors for expanding their public shareholding to 25% and boosting business growth.
The bank’s Capital Adequacy Ratio, as of December 31, 2021, stood at 19.5 with Tier-1 capital at 17.7%.
Ittira Davis, managing director and chief executive officer of Ujjivan SFB, said there is a regulatory mandate that listed entities should have 25% public holding. Ujjivan currently has about 18% of public holdings. Therefore, it requires to go for another seven percent stake of the public in the bank.
Sriram Srinivasan To Lead Ujjivan SFM Digital Banking Business
Ujjivan Small Finance Bank appointed industry veteran Sriram Srinivasan as its new Head of Digital Banking.
Srinivasan will be responsible for speeding up digital adoption across the bank and its services.
Srinivasan has experience of over 26 years and has worked extensively in Japan, India, Singapore, Hong Kong, Vietnam and China markets at the global, country, and regional levels.
More To Know:
Thyrocare Technologies Ltd has appointed Rahul Guha as its new managing director and chief executive officer, effective from May 2022.
Minda Industries is mulling to increase its stake in its subsidiary ‘Minda Kosei Aluminum Wheels (MKA)’ to 77.35% from 70% at present.
Pfizer India appointed Pradip Shah, ex-managing director and founding member of CRISIL, as the chairman of its board after R A Shah resigned on Feb 3.
India administered more than 170 crore total doses of the Covid-19 vaccine, with over 95 crore first doses, over 73 crore second jab and more than 1.45 crore precaution doses.
According to a report by the Pakistan Institute of Development Economics (PIDE), 31% of Pak’s youth population is unemployed, of which 51% are females, and 16% are males, with many of them possessing professional degrees.
Almost 60% of Pakistan's population is younger than 30 years old. The report said the unemployment rate in the country is 6.9%.
Turkey’s automotive industry exports, which have been the export champion of the Turkish economy for 16 straight years, fell 1.6% to $2.2 billion (TL 29.85 billion) in January, according to the data of the Uludağ Automotive Industry Exporters' Association (OIB).
Indonesia’s economy grew 5.02 percent on-year in the fourth quarter of 2021 compared with 3.51 percent growth in the previous quarter, as per the data from Statistics Indonesia.
In 2021, GDP expanded to 3.69%, compared with a contraction of 2.07% the year before.