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Eternal Q2 FY26: Revenue Explodes, But Profit Takes a Hit As Costs Surge
Business, Currency - July 27, 2022

Forex Trading vs. Regular Trading.

Forex Trading Vs. Stock Trading.

 

The Forex Trading and Stock Trading market:

Forex Trading vs Stocks Trading will allow you to choose the best market suitable for an investor to trade. Traders frequently compare Forex versus Stock to see which market is better for trading. Even though it is interconnected, the forex market and the stock market differ greatly. In the minds of others, the forex market has specific features that make it much more appealing to trade. If you want to trade in the market, it is important to know which trading style is the best for you. But understanding the stock and expected market variations and similarities, often helps traders to make informed trade decisions. It is based on factors such as market conditions, liquidity in the market, and size.

 

Comparison between Forex and Stock Market:

 Both the Forex market vs. the Stock market, have advantages and disadvantages. It comes down to the importance of these features for you personally. Let us first look at an overview of each market, and then logically deduce about Forex Market trading Vs. Stock Market trading. There is no regulator body in the Forex market and is decentralized. Forex Market represents an international trading network of members all over the globe. Well-known Investment banks, several central banks, and commercial companies are the main players in the Forex market.

The stock market has a mixed group of buyers and sellers of stocks which includes individual investors to big companies. As the name suggests, shares of a company are offered in a share market in terms of ownership. These transactions are typical, through stock exchanges. Most corporations choose to float their stock shares to raise capital. The stock exchanges provide the buyers and sellers with a clear, transparent, controlled, and convenient marketplace to trade.

Trading on such exchanges has traditionally been carried out by “open outcry”. But the trend toward electronic trading is high in recent years. However, it is not larger than the Forex market, which is the world’s largest financial market. When the Forex market is weighed against the stock market, the Forex market has more weightage. Why are we interested in the size? The most important factor is, that the bigger the Forex market, the higher its liquidity.

 

The volume comparison:

The size of the Forex market is one of the main disparities between Forex and Stocks. It is a focused trade on pairs like AUD-USD, USD-JPY, EUR-USD, and GBP-USD. The stock market value including all the world’s financial markets is about 200 billion dollars a day on average. A large amount of trading will offer traders many advantages. High volume means that traders can typically make their orders faster and nearer to their desired rates. Although, all markets are vulnerable to shortages, at any price point more liquidity. Allowing traders to enter and leave the market.

 

The Liquidity comparison:

A high-volume market normally has high liquidity. Liquidity results in narrower spreads and lowered costs in transactions. In contrast to stocks on the stock exchange, large Forex pairs typically have relatively small spreads and small transaction costs, which are one of the key benefits of dealing in the Forex market over the equity markets.

 

The trading timing comparison:

The Forex market is a 24-hour market and has no central location. There is always a part of the globe which has the market open and is during business hours. The trading of a listed stock is limited and has specific timings. Stock traders have to stick to stock exchange hours. Several major exchanges have however implemented some form of extended business hours. Stock traders may participate during times of pre-market and post-market trading. This was once only the area of institutional investors. The development of electronic trading has also made retail investors more accessible. Extended trading hours remain significantly low and non-liquid. When contrasting volumes over 24 hours, Forex is again winning. If you want to trade at any given time, it’s easy to compare the Forex market vs. the Stock market and the Forex market is the clear winner.

 

The No commission Forex market:

The main advantage of the Forex market is that it does not involve brokers and does not have any commissions. Spread is the difference between the purchase and sells price which is income to the Forex intermediaries. There is no broker’s charge in the Forex market. Even Forex intermediaries get benefits if they bear risks.

 

The Market focus comparison:

Perhaps a significant difference in Forex markets vs. Stocks markets is the aim of the trader. When you look at a single share in the stock market, you can focus on a relatively small selection of variables. While you may be aware of broader trends in the market, factors affecting the company will be the major look outlook out along with market forces in its specific sector will be more important. Relatively small factors will be of major importance such as the business debt levels, cash flows of the firm and earnings outlook, etc.

The focus is broader with the Forex market. A currency represents the entire economy’s aggregate performance. Consequently, Forex traders are more involved in macroeconomics. The emphasis will be more on general indicators such as unemployment in the country, inflation, and GDP than on the output of the particular sector. If you exchange a Forex pair, you trade two currencies simultaneously. A fundamental trader, therefore, contributes not only to the output of one country but also to two.

 

The conclusion:

The fact of the matter is that of trade is, always stick to what works and go for what fits best for you. If you understand more about one business than the other and have good knowledge about one business then, of course, you are more interested in individual firms and trading stocks will make sense for you. When you think more about macroeconomics, Forex market trading can be better for you. If you don’t have a specific habit but are conscious of transaction fees, Forex market trading might be the way to go.

 

 

Delta Corp – Chances of jackpot for investors increasing

 

 

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Editorials, Equities, Markets - July 27, 2022

Government allows Indian public companies to directly list shares overseas.

Government allows Indian public companies to directly list shares overseas.

 

Government’s vision for betterment of Indian companies:

In late January 2020 Government of India communicated to media that they are planning to allow direct listing of Indian companies in foreign markets. This will help Indian companies to not only rely on domestic markets but they can also raise capital on large scale from various foreign markets which will help companies in diversification and growth. This move can directly help Indian companies in increasing their turnover and profits.

Till now Indian companies go for the depository receipts to attract investors globally but this is bit unfamiliar amongst the investors globally and been less attractive in recent years. A minimum of 15 Indian companies currently attract foreign investors via ADR’s and GDR’s. These companies includes Reliance Industry, HDFC Bank, Infosys and many others.

 

Green signal by Indian Government:

Finance Minister Nirmala Sitharaman had announced an economic package of ₹ 20 lakh crore under government’s Atma Nirbhar Bharat Abhiyan. This is done for the revival of Indian Economy. It is an umbrella of massive ₹ 20 lakh crore economic booster package. The government ensured to provide some relaxation in all the sectors.

To improve “ease of doing business” in India, government allowed Indian public companies to list their shares in foreign markets. This provision will help Indian companies for better valuations, rapid growth and expand their businesses on a large scale. This move will help Indian companies to get funds at a cheaper rate from various foreign markets. This will directly help Indian economy to recuperate in a speedy way.

Government noted private companies that listed Non-convertible debentures (NCDs) on Indian stock exchanges not to be considered as listed companies. It is also expected that this provision is to prevent Indian companies to register themselves in foreign markets like Singapore and London for raising a fund and going global.

 

Existing vs proposed rule:

The existing rule states that companies which are listed on Indian stock markets can only list their company in foreign markets. Whereas, new proposed rule states that there is no compulsion for it. Indian companies can list themselves directly in various foreign markets to raise capital.

Until now, only American Depository Receipt (ADR’s) and Global Depository Receipt (GDR’s) can collect capital from foreign market sources. At least 15 Indian companies follow this mechanism to raise capital from foreign markets. However, this is not much familiar amongst the global investors. To eradicate this the new provision will allow Indian companies to a fresh new issue of shares or sale of existing holdings.

 

Rules and regulation:

All the required rules and regulation for listing an Indian company at abroad will be notified soon by the government. Once the provisions to the Foreign Exchange Management Act (FEMA) and Company Law Regulations are passed. Media noted Indian foreign exchange control laws do not require free capital convertibility, and there are other regulatory limits on capital account transactions.

Nevertheless, this proposal has been under discussion for a couple of years between stakeholders and regulators, especially regarding the selection of foreign jurisdiction. SEBI had indicated in 2018 that this route would be open only to the financially sound companies, so that the mechanism could not be used for exploitation. Sources indicated that final rules in this respect would probably be based on the Financial Action Task Force’s recommendations.

Finance Minister Nirmala Sitharaman noted, this provision of direct listing. If Indian public companies are not available over the globe but will be allowed in permissible jurisdictions.

 

Precautionary measures:

However, the approval will not come without any protections. The Indian government is likely to go along with the recommendations raised by SEBI in 2018. This requires a direct listing of Indian companies in abroad. It had suggested 10 overseas jurisdictions, including the US, UK, Japan, China, Hong Kong and South Korea for Indian companies to list. The selection was based on the fact that these jurisdictions are part of the Financial Action Task Force (FATF), The Anti-Money Laundering Global Task Force (GTF-AML) and IOSCO.

SEBI also suggested that this provision should be available only for financially stable . This will aid  to minimize frauds and manipulation. The firms with a  paid-up capital of 10% will be allowed to list in the foreign market.

The provision of capital raising in an overseas market can also have an impact on the Indian currency market. Since the flow of overseas capital can put pressure on the Indian currency and may lead to volatility. RBI and SEBI can be jointly involved to check this.

 

 

 

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Dalmia Bharat Reports Disappointing Q3 Results, Sees Limited Short-Term Growth
Business, Equities, Market News, Markets, Research, Result Updates - July 27, 2022

UltraTech Cement Q1 Results: Profit falls 7% YoY to Rs 1,582 crore but beats estimates.

 

UltraTech Cement Q1 Results: Profit falls 7% YoY to Rs 1,582 crore but beats estimates.

 

UltraTech Cement reported net profit of Rs 1,582 crore for Q1FY23, 7.45% YoY lower than Rs 1,700 crores. However, the net profit managed to beat analyst expectations of Rs 1,214 crore. The bottom line fell by 35.6% QoQ from Rs. 2460.5 crores.

UltraTech’s revenue was higher by 28.2% YoY in the June quarter at Rs 15,163.98 crore as against Rs 11,829.84 crore reported in Q1 FY22. Revenue figure also managed to beat the Street as an ET NOW poll had estimated the figure at Rs 14,238 crores. The top line was down by 3.8% on a QoQ basis.

The company achieved capacity utilisation of 83% as compared to 73% during the quarter. Domestic sales volume increased by 19% YoY basis. The demand for cement was affected due to overall inflationary trends and lower labour availability in May 2022. However, the demand for cement grew in June 2022 on pre-monsoon construction activity.

The June quarter witnessed volume growth of 17% YoY and revenue growth of 34% YoY. The raw material cost increased 13% YoY. Domestic sales volume improved by 19% on a year-on-year basis.

The volumes saw strong traction over the low base of last year and the price hikes taken by the company enabled improvement in realizations which increased revenue growth. The profitability is affected by the rise in power and fuel costs.

Ultratech’s consolidated cement sales volume grew by 16.3% YoY to 25.04 MT in Q1FY23 led by healthy demand across segments like road infrastructure, realty and metro projects. Capacity utilization stood at 83% in Q1FY23 against 90% in Q4FY22. Blended realisations grew 10.2% YoY/6.4% QoQ to INR 6,056/ton as company took price hikes in key markets. Prices in Q1FY23 has gone up in double digits in Central/North, 5-6% in East/West and was flat in South.

The other income for the quarter slipped by 47% at Rs 108.7 crores as compared to Rs 205 crores in Q1 FY22. The other income during the March quarter was lower at Rs 92.4 crore.

The rise in the pet coke and crude prices resulted in a significant surge in the power & fuel cost for the company which jumped 595 bps compared to 26.5% as percentage of revenue in Q1 FY22. Compared to the March quarter, the cost of power & fuel is higher by 130 bps.

Other expenses increased by 24 bps to 12.2 percent of total revenue. The company saved on the costs of employees and freight & forwarding costs which decreased 74 bps and 69 bps respectively in Q1 FY22. The employee cost as percent of revenue increased by 22 bps while freight fell by 36 bps OoQ.

EBITDA declined by 6.4% YoY to Rs. 30,94.9 crores due to higher input cost. Though on QoQ basis EBITDA saw a marginal growth of 0.7%. EBITDA margin contracted by 755 bps YoY to 20.4%, though on QoQ basis margin expanded by 92 bps. Margin contraction on YoY basis was mainly due to 65.3% YoY rise in Power & Fuel costs along with 57.4% YoY higher raw material costs and 24.3% YoY higher logistics costs.

EBITDA margin contracted by 755 bps YoY to 20.4%, though on QoQ basis margin expanded by 92 bps. Margin contraction on YoY basis was mainly due to 65.3% YoY rise in Power & Fuel costs along with 57.4% YoY higher raw material costs and 24.3% YoY higher logistics costs. EBITDA/ton saw a decline of 19.6% YoY to INR 1,236, though on QoQ basis it grew by 11.4% as pet coke and fuel prices started softening from their peak.

The shares of the company are currently trading at Rs. 6539.90, up by 141.20 points or by 2.27% as compared to the previous closed at Rs. 6399.35. The stock opened at Rs. 6390.30. The market cap of the company is Rs. 189,000 crores.

 

 

 

 

 

 

 

Infosys reports a net profit of Rs.5,350Cr. in Q1 FY23. 

 

L&T Technology Services Ltd Q1 Results Update.

 

HUL Q1 FY23 Result Update: HUL beats estimates with Rs 2,381-cr net profit in Q1; revenue up 19.6%

 

 

 

 

 

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Liquidity is a major concern in the Indian Banking Sector
Business, Markets, Result Updates - July 27, 2022

Axis Bank’s net profit was up by 91% in Q1 FY23.

Axis Bank’s net profit was up by 91% in Q1 FY23.

Axis Bank reported a net profit of Rs. 4,125 Cr. in the June 2022 quarter, a jump of 91% from the June 2021 quarter at Rs. 2160 Cr. The advances stood at Rs. 7.01 lakh crore, up by 17% from June 2021. However, the advances were down by about 7.07 lakh crores from March 2022.

In Q1 FY23, NII increased by 20.9% year on year to Rs. 938 Cr. NIM stood at 3.6%, improved by 11 bps QoQ and by 14 bps YOY. The PPOP was at Rs. 588 Cr., with a decline of 8.2% YOY. The fee income was at Rs. 357 Cr. in June 2022, up by 34% YOY. The provisions for the quarter stood at Rs. 359 Cr. The street is disappointed with the loan growth for the June 2022 quarter, down by 7.5% QOQ and 43.5% YOY at Rs. 368 Cr. The gross slippage ratio was at 2.05%, declining by 20 bps YOY and 33 bps QOQ. 45% of the gross slippages were contributed by borrowers’ linked accounts, which were standard. The GNPA and NNPA ratios improved and stood at 2.7% and 0.64%, respectively.

The PCR ratio was at 77% for the quarter. We believe that the asset quality will be constant and improve in the near future. The cost to income ratio stood at 52.5% for the June 2022 quarter at Rs. 357 Cr. and we expect the ratio to increase due to investments in technology. While income growth is expected to improve, The bank is focused on the three core areas: deepening performance culture, strengthening the core and building for the future. It continues to invest in the SME space, extending its distribution and service across India. On Citibank customer business integration, Axis Bank is waiting for CCI approvals and expects to close transactions. 69% of the bank’s loan book is floating rates, which will rise in the policy tightening environment.

The stock price closed at Rs.719.05 and touched an intraday high of Rs.707 and a low of Rs.703. The market capitalization for the bank is Rs. 2.21 lakh cr. The 52-week high was at Rs. 866 and the 52-week low was at Rs. 618.25.

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Happiest Minds Technologies' net profit jumps by 57% in Q1 FY23.
Markets, Result Updates - July 26, 2022

Happiest Minds Technologies' net profit jumps by 57% in Q1 FY23.

Happiest Minds Technologies’ net profit jumps by 57% in Q1 FY23.

Happiest Minds recorded net sales of Rs. 328.92 crores in June 2022 compared to Rs. 244.61 crores in June 2021. The net profit stood at Rs. 56.34 crores in Q1 FY23, up by 57.68% sequentially at Rs. 35.73 crore because of lower other income. The free cash flows were recorded at Rs. 86.39 cr. The service business was driven primarily by Edu-tech, contributing 23.7%, BFSI, contributing 13.7%, and industrials, at 8.2%. Digital infrastructure/Cloud, AI/Analytics and SaaS had a contribution of 45%, 11.6%, and 21.5%, respectively.

EPS stood at Rs. 3.96 in June 2022, up from Rs. 2.51 in June 2021. EBITDA stands at Rs. 87.75 crore, up 32.65% from Rs. 66.15 crore YOY. The reported operating margin stood at 22.7% QoQ, down by 30bps due to lower utilization. 97% of the total revenue comes from digital business, and 93% is contributed by Agile. Europe and the USA witnessed positive growth on a QOQ basis, with healthy pipelines in digital services. 90% of the total revenue was repeat business. The IT tech added 5 new clients and now has 211 active clients in total. The smaller accounts of non-top 10 clients did well and contributed approximately 57.1% of the total revenue. The firm was able to increase business from existing clients while also adding two new clients to the Fortune 2000/Forbes 200 billion dollar corporation.

In the concall, the IT firm mentioned that 15% of the total revenue was from the new business and the remaining came from the existing operations. One of the large clients was cautious in the last quarter but has shown interest in investing more in its new features in the product platform. The firm intends to hire more than 500+ freshers and around 300+ will be joining by August 2022. Happiest Minds will continue to invest in new technology and maintain an EBITDA of 22% to 24% in the coming period. The management believes that they will maintain a CAGR of 25% over the next five years. They are optimistic about their future opportunities and focus on the annuity business. The management expects a multi-year tail wind in digital technologies, multi-hybrid cloud and automation.

We believe that the recent intake of freshers, constant investments in skill addition, currency depreciation, along with supply side challenges, wage hikes, increasing subcontracting costs, and higher intake will keep margins under check in the near term. The stock is currently trading at Rs.974.55, down by 24.05 points, or 2.41%. The stock touched a 52-week high of Rs.1568.00 and a 52-week low of Rs.785.60. The Bangalore-based firm’s market cap is at Rs.14258 crores.

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Kia India Posts 14.43% Yearly Sales Growth in May 2025
Business, Equities, Market News, Markets, Research, Result Updates - July 26, 2022

Wipro Q1 FY23 Result Update: Profit falls 21% YoY to Rs 2,563 crores.

 

Wipro Q1 FY23 Result Update: Profit falls 21% YoY to Rs 2,563 crores.

On 15th July 2022, Wipro reported its profit at Rs 2,563 crore, down by 20.9% year-on-year from Rs. 3,243 crores on account of higher employee-related costs pushed up the information technology services firm’s overall expenses. Total expenses for the June quarter increased by 22.9% to Rs 18,648 crore, with voluntary IT services attrition at 23.3%. On a sequential basis, the company’s net profit fell 16.96% from ₹3,083.7 crores in the March quarter.
The operating margin for Q1 FY23 is 15% as compared to 17.2% in Q1 FY22 and 17.2% in Q4 FY22. The low operating margin is because the company is investing in solutions and capabilities to strengthen its position as a strategic partner for its clients. In constant currency (CC) terms, IT services segment revenue increased by 2.1% QoQ and 17.2% YoY.
Revenue from operations grew by 18% to Rs 21,529 crore as against Rs 18,048 crore in Q1FY22. The revenue increased by 3.2% QoQ from Rs. 20860 crores.
The Earnings before interest and tax stood at Rs. 3085.6 crores, fell by 9.3% QoQ from Rs. 3402.9 crores and by 1.8% YoY from Rs. 3141 crores. EBIT margin fell 200bp QoQ to 15% due to lower utilization and higher investments in employees.
The total number of employees increased to 2.58 lakh with the addition of 15,446 employees during Q1 FY23. Wipro’s attrition rate stood at 2.3%.The closing strength of employees for IT Services was at 258,574, an increase of 15,446 QoQ.
Dollar Revenue was up 0.5% QoQ in CC term to USD 2,736mn. Rupee revenue grew by 3.2% QoQ to INR 215,286Mn, supported by growth in consulting and engineering services. Sequential growth performance was led by the consumer (+5% QoQ CC) & BFSI verticals (+2.4% QoQ CC), which grew above the company average, while manufacturing declined sequentially. Digital engineering and application grew faster (+3.5% QoQ) than iCORE. In IT Services. Organic growth witnessed softness in deal wins; BFSI, Consumer and Telecom Verticals are the key revenue drivers for the quarter. Wipro won 18 large deals in Q1FY23.Overall TCV of deals grew 32% YoY and ACV grew by 18% YoY. Deals were across verticals/geographies and the proportion of the deal wins are mostly new deals. The company’s order bookings grew 32% YoY in total contract value terms, powered by large transformation deals, and the pipeline today is at an all-time high. In terms of sector mix, Wipro earns 35.4% of its revenue from banking, financial services, and insurance, 18.5% in consumer, and 11.5% in health.

The Earnings Per Share for the June quarter was Rs. 4.69.
The shares of Wipro are currently trading at Rs. 414.80, up by 1 point or by 0.96% as compared to the previous close of Rs. 410.85. The shares opened at Rs. 410.50. The market cap of Wipro is Rs. 227,381 crores. The stock hit intraday high and low of Rs. 415.65 and Rs. 408.55 respectively.

 

 

Infosys reports a net profit of Rs.5,350Cr. in Q1 FY23. 

 

L&T Technology Services Ltd Q1 Results Update.

 

HUL Q1 FY23 Result Update: HUL beats estimates with Rs 2,381-cr net profit in Q1; revenue up 19.6%

 

 

 

 

 

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HUL Q1 FY23 Result Update
Business, Equities, Market News, Markets, Research, Result Updates - July 26, 2022

HUL Q1 FY23 Result Update: HUL beats estimates with Rs 2,381-cr net profit in Q1; revenue up 19.6%

 

HUL Q1 FY23 Result Update: HUL beats estimates with Rs 2,381-cr net profit in Q1; revenue up 19.6%

 

HUL reported a net income of Rs. 2,381 crores, up by 13.5% YoY from Rs. 2,097 crores. The net income increased by 3.4% QoQ from Rs. 30,640 crores. The company’s performance in the June quarter was led by market share gains in various categories and a jump in sales by volume even as reduced the weight of some packaged products.

The company’s revenue increased by 19.6% YoY to Rs. 14,357 crores in Q1 FY23 as against Rs 12,004 crores in Q1 FY22. The company reported 6.2% QoQ growth in revenue from Rs. 13,767 crores. The underlying volume growth was 6.0% YoY. The YoY revenue growth has been robust across segments. Home Care, Beauty & Personal Care (BPC), Foods & Refreshment (F&R) segments have seen YoY growth of 29.8%, 17.9%, 9.3%  respectively. BPC segment growth was ahead of market growth with premium segments seeing strong growth. Within the F&R segment, ice-creams had a strong quarter while coffee and foods performed well, and tea portfolio performance was stable.

EBITDA stood at Rs. 34,02 crores (+16.5% YoY/ +3.1% QoQ). EBITDA margins were at 23.3%, a decline of 69 bps YoY and 71 bps QoQ. The decline in gross margins was partly offset by pricing actions and optimizing all non-consumer costs.

Other income was higher in Q1FY23 due to higher commission from GSK and government grants. Employee costs declined on a YoY basis due to growth leverage and high base of Q1FY22 which had covid related expenses.

For the June quarter the EBIT stood at Rs. 3121 crores, up by 17.3% YoY and 3.2% QoQ. EBIT margins were flat YoY as the cost inflation was offset by cost savings, operating leverage from high growth and price increases. BPC EBIT margins declined 167 bps YoY impacted by the high inflation. F&R segment EBIT margins declined by 214 bps YoY due to adverse mix as ice-creams which is a lower margin category had a strong quarter.

HUL’s performance is a result of market outperformance, which in turn is a result of large players benefitting from inflation in commodity-sensitive categories and, continued work on category development (both formats and premiumisation). HUL gained market share in over 75%  of its portfolio during the quarter. Sales volumes jumped 6% YoY even as it reduced weights of of several of its packaged products to protect margins given the steep inflation in commodities.

During the quarter, the company took a 12 %  price increase across its portfolioThe company’s volume growth stood at 6% in the April-June quarter (on a high base of last year) as against a contraction of 5% for the industry. In the June quarter last year, the company’s volume growth was 9%.

HUL’s foods and refreshments category grew 9% in Q1, driven by performance in ice-cream, coffee and food solutions. The FMCG major logged a 6% volume growth for the quarter. The company’s Home Care segment delivered 30% growth driven by strong performance in Fabric Wash and Household Care and effective market development actions.  The Beauty & Personal Care segment reported growth of 17%. Hair Care increased in high double-digits, led by strong performance in the premium portfolio.

The EPS for the quarter is Rs. 10.1, up by 13.5% YoY and 3.4% QoQ.

The shares of the company are currently trading at Rs. 2,555, down by 68.6 points or by 2.61% as compared to the previous close of Rs. 2623.60. The shares opened at Rs. 2,625. The market cap of the company is Rs. 600,320 crores. The stock hit an intraday high and intraday low of Rs. 2,625 and Rs. 2,553 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.

 

 

 

 

 

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Markets, Result Updates - July 25, 2022

Infosys reports a net profit of Rs.5,350Cr. in Q1 FY23. 

Infosys reports a net profit of Rs.5,350Cr. in Q1 FY23. 

IT leader, Infosys reported a net profit of Rs. 5,360 crores. compared to Rs.5,195 in June 2021. The firm missed the street estimation of Rs.5,550 crores.
Total revenue for India’s second-largest firm was at Rs. 34,470 crores
a jump of 23.6% YOY. The operating margin was at 20.1%, down by
1.4% QOQ. It managed to beat the revenue estimates but disappointed PAT and margin. The EBIT margin declined to 20.1% by 150 bps onshore and offshore wake hikes were higher resulting in lower PAT because of constrained talent supply. Though the quarterly attribution was down and jumped from 27.7% in March 2022 to 28.4% in the June quarter, the
attribution elevated by 70 bps. Infosys was double-digit across
business segments in constant currency. Digital technologies grow by 37.5% CC. The total free cash flow during the June quarter was at 5,106 crores and improvement in ROE to 31%. Large-deal TCV for the quarter was at 170 crores down by 25% QOQ and 34% YOY. They have updated earning guidance from 13% YOY to 14%- 16% YOY giving a strong demand.
The net addition stood at 21,171 employees VS 13,599 in last 4 quarter.
The company is on track to hire 50,000 fresher in FY23. The company got 19 new deals. Management said that they have a healthy pipeline for the near future. The total number of active clients was at 1778 clients compared to 1741 clients in March 2022 and 1195 in June 2021. The top 10 clients contribute 13% of total revenue and the top 10 clients contribute around 20% of the revenue. Revenue per employee was down by 1.4% QOQ to US$56.9K due to investments in fresher and the total employees were recorded at 3,35,186.
We consider the margins to be under pressure due to an increase in travel, wage hikes in senior management, and supply side-cost in Q2 FY23. The management mentioned in the concall that the pricing is stable, thus we expect 21% to 25% in the near future. The scrip closed at Rs.1,503 down by
0.81 %. The stock touched a 52-week high of Rs. 1953.90 and a 52-week low of Rs.1,367.15. The Bangalore-based firm’s market cap is at Rs. 6.30 lakh crores.

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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.

 

 

 

 

 

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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.

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