News Wrap: Earnings Of L&T, Dr Reddy’s, Kotak Bank, Vedanta, TATA Coffee; Airtel-Google Deal; PhonePe Approaching SEBI & More…
January 28, 2022:
The benchmark indices Sensex and Nifty50 ended a volatile session lower on Friday.
BSE Sensex fell 76 points or 0.13% to close at 57,200.23.
The NSE Nifty closed 8 points, or 0.048% lower at 17,101.95.
On the sectoral front, auto and banking indices bled red while gains in IT and Pharma indices lent some support.
On Broad market indices, Nifty Midcap100 and Nifty Smallcap100 rose 1.5 percent and 1.38 percent each.
Japan’s Nikkei 225 closed 2.09% or 547 points higher at 26,717.34.
South Korea’s KOSPI gained 1.87% or 48.85 points to 2,663.34.
Hong Kong’s Hang Seng index plunged over 1% to 23,550.08.
Australia’s ASX 200 ended 2.19% higher to 6,988.10.
China’s SZSE Component Index closed 0.53% lower, and the Shanghai Composite dipped 0.97%.
Earnings In Focus:
L&T Q3 Consolidated Net Profit Declines 17% YoY To Rs 2,055 Cr
Larsen & Toubro reported a 17 percent year-over-year decline in consolidated net profit to Rs 2,055 crore for the quarter ended December 2021.
However, revenues saw an 11 percent on-year jump to Rs 39,563 crore.
In the third quarter, the company bagged new orders worth Rs 50,359 crore, far above the analysts' expectations of Rs 45,000 crore, but down 31 percent YoY.
The infrastructure division reported a 15.9 percent YoY increase in sales to Rs 18,345 crore.
The power segment’s revenue jumped 19 percent YoY to Rs 1,066 crore.
The hydrocarbon segment reported an 11 percent on-year jump in revenues to Rs. 4,880 crore.
Dr Reddy’s Q3 Net profit Jumps Nearly 3500% YoY, But Falls 29% QoQ
Generic drugmaker Dr Reddy’s Laboratories reported a 3,468% increase in net profit at Rs 707 crore for the quarter ended 31, December 2021 as against Rs 20 crore a year ago.
However, sequentially, consolidated net profit declined by 29 percent from ₹992 crore in Q2FY22.
Consolidated revenues increased 8 percent to ₹5320 crore in Q3FY22, as against ₹4930 crore Q3FY21. Sequentially, it reduced 8 percent from ₹5763 crore during Q2 FY22.
Earnings before interest, taxes, depreciation and amortization (EBITDA) stood at Rs 1,266 crore, up 7percent YoY. EBITDA margin was 23.8 percent in Q3FY22 as against 24 percent in Q2FY21.
Kotak Bank Q3 Net Profit Increases; NII Improves
Kotak Mahindra Bank’s standalone profit for the quarter ended December 31, 2021, stood at ₹2,131 crore, up 15 percent from ₹1,854 crore in the same period a year ago.
The bank’s net interest income (NII), the difference between interest revenues and interest expenses, improved 12 percent to ₹4,334 crore against ₹3,876 crore a year ago.
Net Interest Margin (NIM) stood at 4.62 per cent.
Other income grew 5.6 percent YoY to ₹1,363.66 crore in Q3FY22.
Asset quality improved sequentially. Gross non-performing assets stood at ₹6,982.80 crore or 2.71 per cent of gross advances in Q3FY22 against 3.19 percent in Q2FY22 and 2.26 percent in Q3FY21.
Net NPAs stood at 0.79 percent of net advances at the Q3FY22 end, whereas it was 1.06 percent at the end of Q2FY22 and 0.50 per cent at the end of Q3FY21.
Vedanta Q3 Profit Rises 26.75%, Revenue Jumps Nearly 50%
Vedanta Ltd reported a 26.75 percent increase in consolidated net profit at Rs 5,354 crore in Q3FY22 against Rs 4,224 crore Q3FY21.
Consolidated revenues stood at Rs 33,697 crore, up 49.77 percent, versus Rs 22,735 crore reported a year ago.
The second quarter's revenues stood at Rs 30,048 crore.
EBITDA stood at Rs 10,938 crore in Q3FY22.
EBITDA margin fell to 37 percent in Q3FY22 against 38 percent Q3FY21 and 40 percent Q2FY22.
Tata Coffee Q3 Net Profit Rises 39% YoY To Rs 69.46 Cr
Tata Coffee Ltd reported a 38.42 percent increase in consolidated net profit at Rs 69.46 crore in the third quarter of fiscal’22.
In Q3FY21, the company posted a net profit of Rs 50.18 crore, according to a BSE filing.
Net revenue rose 17.51 percent YoY to Rs 626.07 crore in Q3FY22 as against Rs 532.76 crore in Q3FY21.
The company’s expenses climbed to Rs 541.36 crore in Q3FY22 as against Rs 470.21 crore a year ago.
Google Extending Support To Indian Telecoms: After Jio, Invests In Bharti Airtel
Alphabet Inc’s Google is investing up to $1 billion in Bharti Airtel as part of its “Google for India Digitization Fund”.
The deal consists of Google pouring in $700 million for acquiring a 1.28% stake in India’s second-largest telecom operator Bharti Airtel, besides infusing up to $300 million towards potential multi-year commercial agreements.
The deal, announced jointly by the two companies, aims to build a strong India’s digital ecosystem.
"Deal includes an investment of $700 million to acquire 1.28 per cent ownership in Airtel at a price per share of ₹ 734 and up to $300 million toward potential multi-year commercial agreements," Airtel stated.
The deal is subject to necessary regulatory approvals.
More To Know:
V Anantha Nageswaran assumes the charge as the new chief economic advisor, ahead of Budget 2022. The term of former Chief Economic Advisor Krishnamurthy Subramanian expired in December.
According to an exclusive report by Business Today, OYO IPO expects listing on Indian bourses in March, ahead of the beginning of the next financial year.
Digital payments company PhonePe has become the latest fintech company to apply for a mutual fund (MF) license from market regulator Securities and Exchange Board of India (SEBI).
Drug Controller General of India ( DCGI) has okayed vaccine manufacturer Bharat Biotech to conduct Phase-III clinical trials of an intranasal booster on people who have received both doses of Covaxin.