Menu

Business

L&T Technology Services Ltd Q1 Results Update.
Business, Equities, Market News, Markets, Research, Result Updates - July 25, 2022

L&T Technology Services Ltd Q1 Results Update.

 

L&T Technology Services Ltd Q1 Results Update.

 

L&T Tech Services reported net profit of Rs 274 crore for the June quarter, up 27% year-on-year. Sequentially the profit was up 4.7% from Rs.262 crores, driven primarily by revenue growth and operational execution.

Revenue for the company grew at 23% YoY at Rs 1,873 crore, and 6.7% QoQ sequentially from Rs. 1,756 crores, fuelled by healthy revenue growth in top clients and a demand uptick in its transportation vertical.
The firm’s dollar revenue grew 3.2% at $239.5 million, and came in at 4.7% in constant currency. Growth was led by plant engineering and industrial products, benefitting from spending on digital manufacturing, energy transition, and smart & connected products.

Transportation led the verticals with a 23.8% growth due to demand from the aerospace and rail segments. The plant engineering vertical clocked 20.3%. Medical devices grew 13.9% and industrial products was up 13.6%.

India’s business grew 19.6% on year and North America rose 17.6%. Operating margins stood at 18.3%, down 30 basis points sequentially but up 100 bps YoY.

During the quarter, LTTS won a $50 million plus deal, four $15 million deals and two deals with TCV of $10 million.

For the June quarter, EBIDTA margins stood at 21.4%. However, margins were better managed despite higher attrition. The company reported attrition of 23.2% for the Q1 FY23, up from 20.4% in Q4 FY22. The total headcount now stands at 21,433. The company added 572 employees sequentially

EBIT stands at Rs. 3,43.4 crores for the quarter as compared to 2623 crores YoY and Rs. 3,274 crores QoQ. EBIT margin is at 18.3% as against 17.3 in the previous quarter, driven by operational efficiencies. During the quarter, the company had gains from currency depreciation which were offset by higher employee benefit costs.

Other income was at Rs. 34 crores, slightly higher on a sequential basis due to higher Income from Investment. At the end of Q1FY23, the patent portfolio of LTTS stood at 913, out of which 625 are co-authored with its customers and the rest are filed by LTTS. 

Currently, the shares of the company are trading at Rs. 3440.35, up by 18.10 points or by 0.53%. On 25th July 2022, the stock opened at Rs. 3417.80 and previously closed at Rs. 3422.25. The stock hit an intraday high of Rs. 3478.55 and an intraday low of Rs. 3401.20. The market cap is Rs. 36,315 crores.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tata Metaliks Q1 net profit falls sharply to Rs 1.22 crores.

 

Jindal Steel & Power Ltd Q1 FY23 Result Update: Net profit jumps to Rs. 2,771 crores.

 

 

Oberoi Realty reported a decline in Book Value.

 

 

 

 

 

, 0 Comment
Read More
Global Equity Funds Face Record $38.66 Billion Outflows Amid Market Valuation Concerns
Business, Equities, Markets - July 22, 2022

Equity valuation: Definition, Importance and Process.

Equity Valuation

 

What is Equity valuation?

Equity Valuation is a process conducted by financial experts to determine the fair market value of a particular company’s assets or equity securities. Usually, investors evaluate the company’s true value of its equity before investing. They evaluate using various techniques by looking at their business management, capital structure and their performance, expected future earnings, and current market value of their assets. Commonly, there are two types of equity valuation methods. The first is the absolute valuation method. It finds the true value of a stock based on fundamental analysis. The second is the relative valuation method which uses comparison techniques. It compares the company with peer company ratios such as the P/E ratio to derive the equity value of a particular stock.

 

Significance of Equity Valuation:

Systematic – The stock market is largely dependent on equity valuation. The stock market includes varieties of stocks from all sectors and industries. So, the market value fluctuates every minute due to the change in information that the market receives on the basic equity valuation. Valuation is the backbone of the whole financial system. It allows companies to operate with strong business models. Only those who are fundamentally strong are in top valuations. 

Individual – Along with the micro-level, equity valuation helps at an individual level also. Due to the equity valuation, the stock’s market value fluctuates every minute. This is due to the change in information that the market receives. So, a person evaluates varying effects and comes up with different results. 

Process of equity valuation:

Understanding various factors in macro environments – Firstly, it is important to understand the industry in which the company operates as its performance is highly influenced by the economic factors, their factors, and their operations. Economic parameters create a strong base for any equity valuation.

Forecasting – Investors forecast performance after considering not only currently trending but after evaluating all the past performances as a strong evaluation and analyzing technique is needed for coming to a final forecast. Cost and sales are important factors too in any forecasting for which investors need strong intricate knowledge base and experience.

Choosing the appropriate equity valuation model – As there are multiple valuation techniques and models available for investors they need to choose after understanding the sector, industry, and company’s business model. It is the responsibility of an analyst to select appropriate techniques.

Valuation Figure – After applying the valuation model, the next step is the final valuation. Analysts can come up with a single figure or range. However, investors prefer figures which have ranges. Different analysts may come up with different values because of using different models or considering different factors.

Final decision – It is based on all the factors and considering all the possible uncertainties. Finally, analysts come up with the final decision for a particular stock whether to buy, sell or hold depending on the current market price and intrinsic value.

 

Various Methods of Equity Valuation:

Based on different factors such as liquidity value, book value, replacement value, discounting factor, earnings ratios, price to book value, and profitability ratio, different equity valuation methods are broadly classified.

Balance sheet techniques – It utilizes all the information available on the balance sheet. It considers all the standards of accounting. Some of the major techniques in the Balance sheet method are Book value Method, liquidation method, and replacement method.

Discounted cash flow method – This model first evaluates the present value of future dividends for getting the present value of equity. They have different assumptions in different models like the single growth model, multi-period model, constant growth model, free cash flow model, two-stage model, H model, and zero growth model. One of the known methods is the dividend discount method.

Earnings multiple technique or Relative valuation – It is also known as the comparable method. It uses peers’ and competitors’ values to determine the value of equity. Earnings or relative valuation includes ratios such as price-to-earnings ratio, price-to-book value ratio, and price-to-sales value ratio.

"<yoastmark

 

What are Gold funds and what are the benefits?

 

 

 

, , , , 0 Comment
Read More
Bharti Airtel Stock Hits Fresh 52-Week High on Strong Market Momentum
Business, Result Updates - July 22, 2022

CANF net profit at Rs.162.21Cr. in Q1FY23.

CANF net profit at Rs.162.21Cr. in Q1FY23.

Can Fin Homes Ltd. (CANF) declared its result on July 21st, 2022 for Q1 FY23. The company reported total revenue of Rs. 611.58 Cr. compared to Rs. 561.29 Cr. in the previous quarter. The net profit jumped to Rs. 162.21 Cr. for Q1 FY23, up by 31.96% QoQ.

The loan book reached Rs. 27538 Cr. with a clientele base of 2.15 lakhs, up by 24% in the current quarter YOY. The disbursements in Q1 stood at Rs. 1722 Cr. compared to Rs. 2705 Cr. in March 2022. In the June quarter, NII increased by 5.5% to Rs. 250.40 cr. The Net Interest Margin (NIM) decreased to 3.60% in June 2022 from 4.07% in the previous quarter. The average business was reduced by 0.63 bps to Rs. 146.48 crores per branch (vs. 147.11 crores on March 22). The cost/income ratio tanked from 19.84% to 15.84% in Q1 FY23 QOQ. The asset quality declined as GNPA increased by 5.39% and was recorded at Rs. 179.78Cr. this was Rs. 170.59Cr. on March 22. The NNPA was at Rs. 81.94 crores, or 0.30%. An increase in the cost of borrowing was witnessed at 5.80% on June 22 versus 5.66% in June 2021 and 5.56% in March 22, due to the hike in the interest rates by the RBI. The EPS was at Rs. 12.18 on June 22, compared to Rs. 9.23 on March 22 and Rs. 8.17 on June 21.
The average ticket size for incremental housing loans was Rs. 21 lakhs and for non-housing loans was Rs. 9 lakhs. The salaried and professional segments constitute around 74% of the O/S loan book. Housing loans were 90%, while non-housing loans were 10%.

CANF has better-quality assets among its peers, but we remain observant of seasonality in the portfolio that could lead to higher credit costs. They have achieved strong growth in the loan book and we expect a minimal spread/margin compression over the next few years. Though housing companies continue to face headwinds because of current macroeconomic situations, the NBFCs’ ability to maintain adequate liquidity, control asset quality, and diversification remains the key differentiator. With the continued growth in the loan book, CANF will witness robust growth. But due to the hike in interest rates, the NBFC will have weak demand for housing among the salaried, non-professional and self-employed classes. However, the expenses will go up due to aggressive branch expansion plans and operational costs. The NBFC has consistently increased its reserves and surplus to come out of uncertainty, which amounted to Rs. 3,040 Cr. in March 2022.

The stock is currently trading at Rs. 552, up by 11.25 points or 2.09%. It touched an intraday high of Rs.590 and a low of Rs.540. The 52-week high for the share price was at Rs.722, and the 52-week low was recorded at Rs.407

, , , 0 Comment
Read More
Role of Financial Intermediaries
Business, Markets - July 22, 2022

Role of Financial Intermediaries

Role of Financial Intermediaries.

 

Entities that act as a middleman between two or more individuals for any financial transaction like an investment bank or mutual funds are known as financial intermediaries. The main goal of these intermediaries is to build an efficient market and lower costs for conducting any business. However, intermediaries do not accept any deposits from the public. They provide services like leasing and factoring.

The overall stability of the economy depends on the performance of financial intermediaries and the growth of the financial services industry. They move excess funds from the parties who have excess capital to those parties who need funds. This creates an efficient market with a relatively lower cost of conducting business. 

 

Major financial intermediaries and their Roles:

The main role of any financial intermediary is to take deposits from savers and lend them to borrowers. They also pool small savings and collectively invest those funds in assets like stocks, bonds, or any other financial assets. Further, they provide loans to small consumers and businesses. However, there any many types of intermediaries based on these roles

Insurance Companies – There are different types of insurance companies. Almost all companies work in the same way. First, they try to find customers (in large numbers) who need coverage. It can be for anything such as a car, home, or health policy. After these customers purchase this insurance policy. Then in the future, whenever customers make a claim and request the insurance company a payout, the insurance company will provide it through that pool of money.

Pension Funds – Full-time employees use their savings for their retirement by investing. The pension fund organizations work on certain factors. Such as risk, the period for which investment is made, and matching contributions. Their employer matches that contribution to a certain extent. When the employee retires, they will get all the contributions with interest.

Banks – Banks are the oldest and most trusted financial intermediaries around the world. They provide multiple services to their customers such as saving, investing, and lending with many other customized services to fit specific criteria. For example, when an individual wants to raise a mortgage, then banks may provide money from another person’s deposits into the same bank for saving. Along with small individuals, large companies also prefer banks to help find investors.

Stock exchanges – Before stock exchanges were invented, it was a very tedious process for buying any company’s stocks. But one can use stock exchanges to trade as they facilitate the entire process with transactions.

Benefits of Financial intermediaries:

1. Expertise – Financial intermediaries not only have specialist knowledge but also all resources which are needed to assess the risk. They have the financial expertise to anticipate the profitability of any proposed projects.  
2. Value Transformation – Financial intermediaries can help both small and large borrowers at a time. They collect money from small investors and give them to the borrowers who need a large sum of money.
3. Transaction costs are reduced– Financial intermediaries help to reduce overall transaction cost as they provide facilities to a large number of borrowers through which overall transaction is balanced.
4. Risk Diversification – Financial intermediaries ensure that their entire risk is diversified. In case any borrowers have defaulted, it does not affect the savings of other depositors. 
5. Easy borrowing – Financial intermediaries ease borrowing by giving them various facilities or options to borrowers. So the borrowers do not require to visit a bank every time.

 

Role of Financial Intermediaries

 

 

What Happens when Businesses go Bankrupt.

 

 

 

, , , , , 0 Comment
Read More
Shipa Medicare reported an 85 lakh net profit.
Business, Equities, Market News, Markets, Research, Result Updates - July 22, 2022

Just Dial net loss widens to Rs 48 cr in Q1 FY23.

 

Just Dial net loss widens to Rs 48 cr in Q1 FY23.

On 15th July 2022, Just Dial Dial reported a consolidated net loss of Rs 48.36 crore in Q1 FY23 compared with a net loss of Rs 3.52 crore in Q1 FY22. The loss was driven by negative other income. Other income stood at Rs 60 crore for the quarter due to mark-to-market (MTM) losses on treasury portfolio owing to the significant increase in bond yields (135-150 bps QoQ for 2-3 year AAA bonds). The net profit margin foe the June quarter was -26% as compared to 2-2.1% in June 21 and 13.3% in March 22 quarter.

Net revenue was at Rs 185.60 crore for the June quarter as against Rs 165.41 crore during the same period in the previous year, registering a growth of 12.2%. On a sequential basis, net sales rose 11.4% from Rs. 166.7 crores. The employee expenses were higher during this quarter. This was on account of increase in the  hiring across critical functions such as technology, content, sales and marketing teams. In sales department, headcount was up 4.2% QoQ.

Just Dial reported a pre tax loss of Rs 59.84 crore in June 22 as against a pre tax loss of Rs 4.39 crore recorded in June 21. Total expenditure increased by 3.71% to Rs 185.45 crore in Q1 FY23 as against Q1 FY22.

The company recorded Adjusted operating EBITDA, excluding ESOP expenses, at Rs 11 crore in Q1 FY23 as compared to Rs -10 crore in Q1 FY22 and Rs -8 crore in Q4 FY22.

Deferred Revenue stood at Rs 353.4 crore, up 4.5% QoQ and 15% YoY. The QoQ growth in deferred revenue driven by 12.2% QoQ growth in collections to Rs 200.9 crore.

Cash and Investments stands at Rs 3,739.6 crore as on June 2022 compared to Rs 1,533 crore as on June 2021 and Rs 3,820.1 crore in March quarter.

Total Traffic (unique visitors) for the quarter stood at 147.9 million, up 19.1% YoY and 2.1% QoQ. 84.3% traffic originated on Mobile platforms, 11.3% on Desktop/ PC and 4.4% on our Voice platform.

Total Active Listings stood at 32.8 million as on 30 June 2022, an increase of 7.4% YoY and 2.8% QoQ. During the June quarter 907,228 listings were added  to the database. Active Paid Campaigns at the end of Q1 FY23 was at 483,690, up 10.5% YoY and 4.8% QoQ. Robust paid campaigns addition of 22,195  was due to aggressive focus on selling monthly payment plans.

 

Currently, the shares of Just Dial are trading at Rs.  585.60 as against the previous close of Rs. 591.55, declined by 5.25 points or by 0.89%. The stock opened at Rs. 593.70. The market cap of the company is Rs. 4,940 crores.

 

Just Dial net loss widens to Rs 48 cr in Q1 FY23.
Image shown is for representation only

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tata Metaliks Q1 net profit falls sharply to Rs 1.22 crores.

 

Jindal Steel & Power Ltd Q1 FY23 Result Update: Net profit jumps to Rs. 2,771 crores.

 

 

Oberoi Realty reported a decline in Book Value.

 

 

 

 

 

, 0 Comment
Read More
Contraction in Banking Stocks to around 6 percent due to RBI's repo rate cut
Banking, Business, Markets, Result Updates - July 21, 2022

AU Small Finance Bank Q1 results were up by 32% and down 23% sequentially.

AU Small Finance Bank Q1 results were up by 32% and down 23% sequentially.

 

AU Small Finance Bank, a Jaipur-based lender, reported a net profit of Rs. 268 crores with a jump of 32% from 203 crores YOY but was down by 23% sequentially from Rs. 346 crores in March 2022. This result was achieved on account of an improvement in interest income and a sharp fall in provisions. The bank made provisions of Rs. 38 Cr., lower by 81% from a year ago on account of improvement in the asset quality and COVID-19 related provisions.

The bank’s PPoP was at Rs. 394 Cr, down by 18% as other incomes fell and operating expenses rose. The other income fell to Rs. 159 Cr. and was down by 26% due to losses of Rs. 55 Cr. in the treasury operations. The net interest income was reported to have increased by 35% from Rs.924Cr. to Rs.976Cr. The quarterly net interest margin (NIM) was lower by 1 bib from 6% to 5.9% YOY. It intends to maintain the NIM in the current fiscal year due to the rise in floating rates, which is 25% of the book. The asset quality for the bank also improved. Net NPS was at 0.56% on 30 June, down from 2.26% in Q1 FY23. The provision coverage ratio rose from 49% earlier to 72% by June 30. The AUM grew to Rs. 50161 Cr. with a jump of 37% YOY. The deposits witnessed a growth of 48% to Rs. 54,631 Cr. in the June quarter. The company’s market share is only 3% in the banking system and is optimistic about its growth. Almost 90% of the portfolio is secured, which is a good sign.

The banks’ (CAR) stood at 19.4% versus 23.1% in June 2021. The EPS was recorded at Rs. 4.25, which was down from Rs. 11.02 in the previous quarter. The key risks for the bank are surging inflation, resulting in widening losses; exposure to the informal sector; regional dependence on one state; and a slowdown in the economy. However, since the bank primarily serves the underserved category like farmers, low-wage earners, and the informal sector, it provides them with pricing power. As the monsoon was on time, it is likely to be favorable for the bank, since the farmers will be in a better position to repay the debt.

The script gave a 3-year return of 75.01% as compared to the 44.23% return given by the Nifty 100. The market cap for the company is Rs. 37,4111Cr. The stock is currently trading at Rs. 593.65, up by 16 points, or 2.84%, and has touched an intraday high of Rs. 601 and a low of Rs. 570. The 52-week high was at Rs. 732.98 and the 52-week low was at Rs. 462.

 

 

 

Mindtree Q1 FY23 Result Update: Net Profit jumps 37% YoY to Rs. 472 crores.

Tata Motors, Jaguar Land Rover Q1 sale at 78825 units down by 37%.

 

, , 0 Comment
Read More
HDFC Bank Q1 Result Update: Profit rises 19% YoY to Rs 9,196 crore; NII up 15%
Business, Equities, Market News, Markets, Research, Result Updates - July 21, 2022

HDFC Bank Q1 Result Update: Profit rises 19% YoY to Rs 9,196 crore; NII up 15%

HDFC Bank Q1 Result Update: Profit rises 19% YoY to Rs 9,196 crore; NII up 15%

On 16th July 2022, HDFC Bank reported a net profit of Rs. 9,196 crores, up by 19% YoY from Rs. 7,729.64 crores. Lower provisions and improvement in the asset quality led to an increase in the overall earnings. Also, there was a sharp decline the credit cost. For the June quarter, provisions worth Rs 3,187.7 crore was recorded, down 34% YoY from Rs. 4830.8 crores. Provisions in the Q4 FY22 stood at Rs 3,312.35 crore.
However, the net profit dropped by 8.9 % QoQ from Rs. 10,055.18 crores. The company recorded revenue growth of 13% YoY to Rs. 41,560.27 crores during the June quarter as compared to the Rs. 36,771.47 crores in Q1 FY22.

HDFC Bank posted a net interest income (NII) of Rs. 19,481.4 crores, up by 14.5% from ₹17,009 crores in June 2021 on account of strong growth momentum. The increase in NII was driven by advances and deposits that recorded growth of 22.5% and 19.2% respectively. The total balance sheet grew by 20.3%. NIMs for the June quarter stood at 4.0%, which is stable QoQ & YoY. The total credit cost ratio was at 0.91% as compared to 1.67% for June 21.

Similarly, non-interest income increased to Rs 9,011.6 crore from Rs 6,288.6 crore YoY. Pre-provision operating profit of the bank rose by 14.7 % YoY to Rs 15,367.8 crores for Q1 FY23. Gross nonperforming assets (GNPA) were lower in Q1FY23 at 1.28% compared with 1.47% in Q1 FY22. However, it was higher than 0.32% reported in Q4FY22. Net non-performing assets (NNPA) of the lender dropped to 0.35% in Q1 FY23 as against 0.48% in Q1 FY22.

HDFC Bank registered a profit before tax (PBT) of ₹12,180.1 crores in the June quarter rising by 18.2% YoY. The bank reported total revenue growth of 13% to Rs 41,560.27 crore in June 2022 quarter as against Rs 36,771.47 crore in June 2021 quarter.

PPoP grew 1.5% YoY while declined by 6.0% QoQ at Rs. 15367.8 crores. Fee income for Q1FY23 stood at Rs. 53,30.4 crores while the loss on sale of investment stood at Rs. 1311.7 crores. Advances as of June 30, 2022, were reported at Rs. 1,39,5067.7 crores. The deposit growth for the quarter by 19.2% at Rs. 1,60,47,60 crores with a CASA ratio of 45.8%. Strong growth in advances was led by retail & commercial segments. There was a sequential deterioration in asset quality because of seasonal Agri NPAs.

The fee & commission segment grew 38.0% YoY and fell 4.8% QoQ. The sequential fall was owing to a high base of seasonally strong Q4FY22. The bank reported an MTM loss of Rs. 1311.7 crores due to a spike in the benchmark bond yields during the quarter. Excluding the MTM loss, the other income for the quarter grew 35.4% YoY. The operating expenses for the quarter grew 28.7% YoY due to the low base of last year on the back of lower activities during Covid-19.

 

Currently, the shares of HDFC Bank are trading at Rs. 1361.60 as compared to the previous close of Rs. 1365.05. The stock opened at Rs. 1360.55. The share price is down by 3.40 points or by 0.24%. The market cap is Rs. 756,409 crores.

 

 

 

 

 

HDFC Bank Q1 Result Update: Profit rises 19% YoY to Rs 9,196 crore; NII up 15%
Image shown is for representation only.

 

 

 

 

 

 

 

 

 

 

 

 

Tata Metaliks Q1 net profit falls sharply to Rs 1.22 crores.

 

Jindal Steel & Power Ltd Q1 FY23 Result Update: Net profit jumps to Rs. 2,771 crores.

 

 

Oberoi Realty reported a decline in Book Value.

 

 

 

 

 

, 0 Comment
Read More
Vakrangee Q1 FY@3 Result Update
Business, Equities, Market News, Markets, Research, Result Updates - July 21, 2022

Vakrangee Q1 FY23 Result Update.

Vakrangee Q1 FY23 Result Update.

Vakrangee reported a net profit of Rs. 4.52 crores, down by 80.6% from Rs. 23.33 crores in June 2021. Near Term profitability has been impacted as the company is re-investing the operational cash flows for enhancing franchisee incentives. The net profit decreased from Rs. 30.12 crores, by 85% QoQ basis.

Gross Margins have been impacted mainly because of the launch of Additional Franchisee incentive schemes. The gross margin for the June quarter was 9.5% as compared to 22.1% in the previous quarter. The gross profit stood at Rs. 21.38 crores from Rs. 46.14 crores in the March quarter.

Revenue from Operations stands at Rs. 226.03 crores in Q1 FY23 as against  Rs. 154.02 crores for Q1 FY22, up by 8.25% QoQ. The revenue increased by 46.75% YoY from Rs. 154.02 crores. Strong growth was witnessed in revenues due to an increase in number of outlets as well as services becoming normalized and operational post-pandemic.

Quarterly Gross Transaction Value (GTV) crossed Rs. 134.37 Billion registering a growth of 25.58% on a YOY basis and 6.16% on a QOQ basis. The quarterly no. of transactions crossed 34.82 Million registering a growth of 28.96% on a YOY basis and 5.78% on a QOQ basis.

 

Total expenses the quarter ended nearly doubled to Rs 221.3 crore from Rs 124 crore on a YoY basis, increased by 78% YoY and by 77% QoQ from Rs. 124.8 crores. The total comprehensive income of the company as of Q1 FY23 was at Rs 4 crore as against Q1 FY22 of Rs 23.29 crore.

EBITDA stands at Rs. 10.43 crore in June 2022 down 69.4% from Rs. 34.08 crores in June 2021.

Profit before tax is Rs. 6.49 crore in June 2022 as compared to Rs. 30.54 crores in June 2021. The PBT for the March quarter was Rs. 37.75 crores.

EPS has decreased to Rs. 0.04 in June 2022 from Rs. 0.22 in June 2021 and 0.28 in the previous quarter.

 

On  20th July 2022, the stock is trading at Rs. 29.80 as compared to the previous close of Rs. 29.75, up by 0.05 points or by 0.17%. The stock opened at Rs. 29.95. The market cap of the company is Rs. 3,157 crores. The stock hit the intraday high and low of Rs. 30.15 and Rs. 29.65 respectively.

 

 

Tata Metaliks Q1 net profit falls sharply to Rs 1.22 crores.

 

Jindal Steel & Power Ltd Q1 FY23 Result Update: Net profit jumps to Rs. 2,771 crores.

 

 

Oberoi Realty reported a decline in Book Value.

 

 

 

 

 

0 Comment
Read More
IndiQube Q2 FY26: Scaling Workspace Portfolio as Core Metrics Improve
Business, Equities, Market News, Markets, Research, Result Updates - July 20, 2022

Tata Metaliks Q1 net profit falls sharply to Rs 1.22 crores.

Tata Metaliks Q1 net profit falls sharply to Rs 1.22 crores.

Tata Metaliks Ltd reported a net profit of Rs 1.22 crores in Q1 FY23. The net profit fell by 98.71% YoY from Rs. 94.72 crores and down by 97.67% QoQ from Rs. 52.46 crores. The decline in the net profit for the June quarter was on account of higher expenses.

During the June quarter, the expenses climbed up to Rs 667.72 crore from Rs 471.62 crore, up by 41.58% on yearly basis.

The expenses increased due to higher input costs. DIP business has delivered close to its planned volumes, the pig iron business got adversely impacted due to lower production and higher cost arising out of the annual maintenance shutdowns and also on account of operational issues in one of the blast furnaces for much of April and May. Sales Volume of Pig Iron & DI Pipe were lower by 23% & 8% respectively on a y-o-y basis owing primarily to softening of the market sentiment of Pig Iron from mid-May onwards. Pig Iron prices also dropped in market prices after the imposition of export duty by the Govt on 22nd May 2022. On the Raw materials front, coal and coke prices moved up significantly (coke price was up 30% over Q4). Profitability was severely impacted in the quarter owing to the above factors.

 

However, the total revenue increased by 10.37%  YoY, from Rs. 606.45 crores to Rs. 669.35 crores due to increased realization of both Pig Iron and DI Pipe by ~36 to 40%.  The revenue slipped by 17.84% QoQ from Rs. 814.65 crores. During the quarter there was an increase in the prices of coal, coke and other consumables. Another factor for the decline in profitability is the continuing drag of old DIP orders booked in FY21. Moreover, a sharp drop in pig iron prices post imposition of a 15% export duty severely affected the profitability in the June quarter.

 

EBITDA stands at Rs. 27.11 crores in the June quarter. It declined by 82.73% from Rs. 156.99 crores in Q1 FY22. The profit before tax stood at Rs. 1.73 crores, down by 97.64 % QoQ from Rs. 73.19 crores and 98.72 % YoY from Rs. 134.83 crores. The EPS has also decreased to Rs. 0.39 in June 2022 from Rs. 29.99 in June 2021 i.e. by 98.70%. The EPS fell by 97.65% QoQ from Rs. 16.61

 

Currently, the shares of Tata Metaliks are trading at Rs. 706.70 as compared to the previous close of Rs. 700.90, up by 5.05 points or by 0.86%. The shares opened at Rs. 701.50. The market cap of the company is Rs. 2,232 crores.

 

Tata Metaliks Q1 net profit falls sharply to Rs 1.22 crores.
Image shown is for representation only.

 

Jindal Steel & Power Ltd Q1 FY23 Result Update: Net profit jumps to Rs. 2,771 crores.

 

 

Oberoi Realty reported a decline in Book Value.

 

 

 

 

 

, 0 Comment
Read More
BEML Surges by 7.86% on Likely Upgrade to Navratna Status
Business, Editorials, Market News, Markets, Result Updates - July 19, 2022

Jindal Steel & Power Ltd Q1 FY23 Result Update: Net profit jumps to Rs. 2,771 crores.

Jindal Steel & Power Ltd Q1 FY23 Result Update: Net profit jumps to Rs. 2,771 crores.

On 15th July 2022, JSPL reported a net profit of Rs. 2770.88 crores as against the net profit of Q1 FY22 at Rs. 14.25 crores. The net profit increased on account of higher income. The total revenue increased from Rs. 10,643.17 crores in the March quarter to Rs. 13,069.17 in the June quarter. The revenue was up by 23% YoY.

The output of steel remained almost flat at 1.99 million tonnes (MT) as compared to 2.01 MT in April-June 2021. However, there was a fall by 6% QoQ . The sale of steel stood at 1.74 MT against 1.61 MT a year ago and was down by 16% QoQ. The key divers foe the fall of the sale was the challenging marketing conditions and the imposition of export duty. Due to the imposition of the export duty, the domestic volume fell by 12% and export volume slipped by 28%. During the June quarter, the realization was higher by 10% QoQ.

Expenses were also higher at Rs 10,566.64 crore as against Rs 7,233.55 in Q1 FY22. The costs grew by 10% due to the increase in the prices of coking coal by 33% and thermal coal by 27%.

The EBITDA margin during this quarter is 42.8% as compared to the previous quarter at 26.4%

In Mozambique, the company’s Chirodzi mine produced 0.93 MT ROM (run of mine) and sold 197 KT (kilo tonne) coking coal. Mozambique operations have reported an EBITDA (earnings before interest, taxes, depreciation, and amortization) of Rs. 334 crores for 1QFY23, driven by higher sales volumes and realisations. During April-June, Kiepersol mine in South Africa reported production of 146 KT ROM, and sales of 74 KT. The mine reported EBITDA of Rs. 84 crores. for the quarter. The company’s Russel Vale mine located in Australia produced 138 KT ROM, and dispatched 79 KT coking coal. The mine reported EBITDA of Rs. 24 crores for the quarter.

JSP’s 1QFY23 standalone Gross revenues of Rs. 14,541Cr declined by 7% Q-o-Q and up by 27% YoY as lower volumes more than offset the benefit from higher realisations. Notwithstanding higher input costs, 1QFY23 Adjusted EBITDA of INR 2,865Cr was 8% higher Q-o-Q and fell by 35% Y-o-Y. Q1FY23 Adjusted Profit after tax (PAT) of INR 2,072Cr (Adjusted for exceptional) increased 44% Q-o-Q and slipped by -22% Y-o-Y on higher operating profit and lower finance costs. Pellet production of 1.92mt declined 11 % Y-o-Y (-3% Q-o-Q) due to negligible external sales (30KT vs. 400KT in 1QFY21)

Consolidated Gross Revenues fell 8% Q-o-Q to INR 14,738Cr (+26% Y-o-Y), driven by lower steel and pellet sales partially offset by higher realisations. Adjusted EBITDA of INR 2,993Cr was higher by 3% Q-o-Q but declined 32% Y-o-Y due to rise in input costs and unfavourable base in the prior year (low cost iron ore inventory available in 1QFY22). 1QFY23 Adjusted Profit after tax declined by 23% Y-o-Y (+5% Q-o-Q) to INR 1,929Cr on the back of lower operating profit, partially offset by lower finance costs. Funds from JPL divestment has further strengthened JSP’s balance sheet with Consolidated Net Debt declining further by INR 1,149Cr in 1QFY23 to end the quarter at INR7,727Cr. Net Debt to EBITDA has improved to 0.54x from 0.57x in Q4 FY22.

 

On 18th July 2022, the shares of the company are trading at Rs. 351.50 , up by 6 points or by 1.74%. The shares previously closed at Rs. 345.50 and opened today at Rs. 349.05. The market cap of JSPL is Rs. 35,856 crores. The stock hit an intraday high of Rs. 353 and intraday low of Rs. 341.95.

 

 

 

 

 

 

Mindtree Q1 FY23 Result Update: Net Profit jumps 37% YoY to Rs. 472 crores.

 

 

 

 

 

 

 

 

 

 

 

 

 

, 0 Comment
Read More