News Wrap: Trending Stocks, Q3 Earnings; CRISIL GDP Growth Forecast; Fin Sec On Cryptos, NFTs & More…
February 2, 2022:
The benchmark indices Sensex and Nifty50 snap gaining streak on Wednesday.
BSE Sensex ended 695.76 points or 1.18% higher at 59,558.33.
The NSE Nifty gained 203.15 points or 1.16% to close at 17,780.00.
All the sectoral indices marched higher, with financial services, media, pharma, FMCG, IT and healthcare gaining up to 2 percent. Bank, Private Bank indices rose 2.14 and 2.33 percent each while PSU Bank ended 3.13% higher.
BSE midcap and smallcap indices gained 1-1.5 percent.
Japan’s Nikkei 225 closed 455 points or 1.68% higher at 27,533.6.
Australia’s ASX 200 rose 1.17% to 7,087.70.
KOSPI, the major stock market index of South Korea, was closed on account of the Korean New Year.
Hong Kong’s Hang Seng index, China’s SZSE Component Index and the Shanghai Composite were closed on account of the Chinese New Year.
China’s SZSE Component Index and the Shanghai Composite were closed on account of the Chinese New Year.
Earnings In Focus:
Tata Consumer Posts 22% YoY Jump In Net Profit
Tata Consumer Products posted a 22% year-on-year jump in its consolidated net profit for the quarter ended December 31, 2021, at Rs 290 crore, topping analysts' estimates of Rs 275 crore.
The company's revenue from operations rose 5% YoY to Rs 3,208.4 crore, exceeding the expectation of Rs 3,205 crore, according to the analysts polled by CNBC-TV18.
The earnings before interest, tax, depreciation and amortization (EBITDA) jumped 28 per cent to Rs 461.6 crore.
Jubilant FoodWorks Net Profit Increases; Company Opens Record Domino's Stores In Q3
Jubilant FoodWorks Ltd, which operates franchises of Domino’s Pizza and Dunkin’ Donuts in India, posted a 7.5% jump in net profit at Rs 133.20 crore in the quarter ended December 2021, against Rs 123.92 crore a year ago.
Revenue from operations surged 13.2% to Rs 1,210.77 crore from Rs 1,069.28 crore a year ago. Total expenditure also climbed 13.07% to Rs 1,040.24 crore in the reporting quarter.
Ebitda margin improved 24 basis points to 26.6% as against 26.4% a year ago.
The firm opened a record 75 new Domino's stores in Q3FY22, the highest ever openings done by any franchisee in any quarter in any market.
Besides, it opened one restaurant for Dunkin’ and one for Hong’s Kitchen in Q3.
It expanded to 17 cities in Q3, with a current total reach of 322 cities across India.
The company’s board approved a stock split of 5:1.
HDFC Q3 Net Profit Increases 11% YoY; NII Rises 7% YoY
Private sector bank Housing Development Finance Corporation posted an 11% increase in net profit to Rs 3,261 crore in the third quarter of fiscal’22, topping Street estimates.
Analysts at Bloomberg have been expecting a net profit of Rs 3,099 crore in the quarter ended.
Net interest income (NII), the difference between the interest revenue and interest expenditure, rose by 7% to Rs 4,283.8 crore in Q3FY22 versus Rs 4,004.74 crore in Q3FY21.
Net interest margin stood at 3.6% at the end of the third quarter.
On the asset quality front, the gross non-performing assets (GNPA) ratio was at 2.32 percent at the end of the Q3FY22, against 2 percent in Q2FY22.
The lender’s gross bad loans increased to Rs 12,149 crore from Rs 10,341 crore from the fiscal’s second quarter.
Adani Green Energy Reports 20% Jump In Q3 Net Profits
Adani Green Energy reported a nearly 20% jump in consolidated net profit at Rs 49 crore in the third quarter of FY22, against Rs 41 crore posted a year ago.
The company reported a total income of Rs 1,471 crore in Q3FY22 from Rs 843 crore in Q3FY21.
The Indian renewable energy company sold 2,504 million units of electricity in Q3FY22 as against 1,273 MU in Q3FY21.
In the first three quarters, it sold 6,456 MU, higher than 3,857 MU sold in the first three-quarters of FY21.
CRISIL Forecasts India’s GDP To Grow 7.8% In FY23
Domestic rating agency CRISIL has projected FY23 real GDP growth at 7.8 percent, below the projection of 8.5% by the Indian government in the Economic Survey.
“All said, risks to India’s economic outlook are still skewed towards the downside,” it said, expecting the growth rate to decelerate 7.8 per cent in FY23 as against 9.2% in FY22.
The agency said global growth might slacken this year as significant economies could withdraw monetary and fiscal stimulus.
It will directly impact India's growth prospects as exports have been integral to domestic growth during the pandemic.
Energy prices, esp. of Crude oil, are likely to rise further, owing to geopolitical tensions, and Brent crude will average up to $85/bbl versus $70.44 in 2021, resulting in shrinking growth, adding fuel to inflation and widening the current account deficit.
The agency said even if global supply chain disruptions ease this year, critical raw material shortages like semiconductors shortages could take time to resolve.
The agency said India’s nominal growth for FY23 may come at 12-13% higher than the 11.1 per cent Budget Estimate, and the headline inflation to average 5.2%.
Bitcoin, Ethereum Or NFT Not A Legal Tender & Will Never Be: Fin Sec
Finance Secretary TV Somanathan said making Bitcoin, Ethereum or non-fungible tokens (NFT) a legal tender is unlikely.
Further, on Digital currency, he said RBI-issued digital currency, which FM Nirmala Sitharaman informed about in the budget, will be a legal tender as it will be the money of RBI, but of digital nature.
“Bitcoin, Ethereum or NFT will never become legal tender. Crypto assets are assets whose value will be determined between two people. You can buy gold, diamond, crypto, but that will not have the value authorized by the government,” ANI reported quoting Somanathan.
“Digital rupee issued by RBI will be a legal tender. Rest all aren’t legal tender, will not, will never become legal tender,” he further said.
More To Know
US-based Mission 1 Investments LLC has infused Rs 35 crore in Shriram Asset Management Company Limited (Shriram AMC), to buy a 23% stake.
The Kerala government announced the country's first Graphene Innovation Center. It is a joint venture of the Digital University of Kerala, Center for Materials for Electronics Technology (C-MET) and Tata Steel Limited.
Swedish retailer H&M is set to launch its home decor and accessories product range in India next month. H&M HOME’s products will be available on its website and Myntra. At a later date, the company will launch home decor products at its existing store in Delhi.
Zydus Cadila informed that it has started supplying its needle-free anti-Covid vaccine ZyCoV-D to the government. The vaccine will cost ₹265 per dose, and the applicator ₹93 per dose excluding GST.
The company has entered into a contract with Shilpa Medicare Limited to produce doses of ZyCoV-D. Also, it has inked a pact with Enzychem Lifesciences of the Republic of Korea for the manufacturing license and technology transfer for the vaccine.
The Competition Commission of India (CCI) has imposed a monetary penalty on five major tyre manufacturers for "indulging in cartelisation".
The companies have to pay penalties as follows:
Apollo Tyres- Rs 425.53 crore
MRF Ltd- Rs 622.09 crore
CEAT Ltd- Rs 252.16 crore
JK Tyre- Rs 309.95 crore
Birla Tyres- Rs 178.33 crore