Shares of Bharat Electronics Ltd (BEL) surged over 9% on May 21, 2023, after the company reported better-than-expected Q4 earnings. The company’s gross profit margin has remained strong over the past three quarters, averaging 48.5%. This, coupled with a 225% year-over-year increase in other income, led to a 17% to 21% beat on PAT (profit after tax) estimates.
In a mark of respect for the late Iranian President Ebrahim Raisi, India has declared a one-day state mourning on May 21st. Meanwhile, Prime Minister Narendra Modi is scheduled to engage with 25,000 women in Kashi during a conference. Several listed companies, including BHEL and JKTyres, will be announcing their Q4 earnings today. To combat the intense heatwave, Punjab schools will remain closed from May 21st to June 30th. Additionally, Riyadh is preparing to host the World Annual General Assembly of aviation leaders from May 21st to 23rd.
Tata Motors shares witnessed a steep decline of 8-9% following the announcement of disappointing March quarter earnings. The company’s market capitalization dropped significantly, impacting both BSE Sensex and NSE Nifty firms. Tata Motors’ weak sales outlook for commercial vehicles and Jaguar’s contracting order book further contributed to investor concerns.
Dr Reddy’s Laboratories reported a 36% year-over-year increase in net profit for Q4, but the share price dropped 5% today. The company saw a 3% sequential decrease in net profit, and brokerages attributed the strong gross margin and operational performance to Revlimid sales. Analysts project that upcoming R&D costs and a weak US launch pipeline may impact the company’s earnings growth and EBITDA margin in the coming fiscal year.
ICICI Bank’s shares experienced a significant rise of over 2% on Monday after the company announced an 18.5% growth in its consolidated net profit for the March quarter, which stood at ₹ 11,672 crore. This increase was primarily driven by a reduction in provisions.
For the fiscal year 2023-24, the bank’s standalone net profit grew from ₹ 31,896 crore to ₹ 40,888 crore. The stock reached its 52-week high on both the BSE and NSE, climbing by 2.51% and 2.44% respectively to ₹ 1,135.
The bank’s core net interest income also showed an increase of 8.1% to ₹ 19,093 crore, driven by a 16.8% growth in loans. However, this growth was partially offset by a compression in net interest margin.
Furthermore, the bank reported a notable reduction in provisions, which fell by more than half to ₹ 718 crore for the quarter. The gross non-performing assets ratio also improved from 2.30% in December 2023 to 2.16%.
Indian Hotels share price witnessed a significant drop of over 4% on Thursday following the release of its March quarter results. Despite reporting a 29.36% increase in consolidated profit to 438.33 crore, the hospitality chain’s total expenses also rose, leading to a decline in share value. The company’s revenue increased to 1,951.46 crore from 1,654.54 crore in the same quarter last year. analysts remain cautious, with Angel One suggesting immediate support at 580 and predicting further selloffs if that level is breached. Nuvama Institutional Equities maintains a “hold” rating but raises its target price to 578, valuing Indian Hotels at 26x FY26E EBITDA. Antique Stock Broking also maintains a “hold” rating and a target price of 500, valuing the company at 24x EV/EBITDA on FY26E EBITDA.
Shares of Tata Consumer Products dropped over 5% on Wednesday following the release of its March quarter earnings. The company’s net profit fell 22.5% to Rs 267.7 crore, while revenue rose 8.5% to Rs 3,927 crore. Tata Consumer’s EBITDA grew 23% to Rs 629.6 crore. Despite the decline, several brokerage firms maintained their positive outlook on the stock, citing the company’s strong growth prospects and recent acquisitions.
Axis Bank is expected to report a 4-6% decline in net profit for the March quarter, despite an 8-10% rise in net interest income (NII). Provisions are anticipated to drop substantially compared to the previous quarter due to a high base, according to analysts. Margins are expected to narrow sequentially. Analysts predict a 5.9% year-over-year (YoY) decrease in profit to Rs 6,233 crore, with NII rising 8.5% to Rs 12,741 crore.
On April 23rd, several significant events unfolded across different sectors, including business, law, and politics. The Supreme Court expressed its concerns over deceptive advertisements by FMCG companies and sought action from relevant ministries. Additionally, JNK India’s IPO garnered substantial interest on its first day of subscription. Furthermore, Tata Consumer Products and ICICI Prudential Life, among others, announced their Q4 financial results. Prime Minister Modi made controversial remarks about Muslim quotas, further escalating political tensions ahead of the 2024 elections.
Reliance share price saw a positive trend after a modest start on Tuesday, April 23, a day after the company announced its March quarter results. The stock opened at 2,958, slightly below its previous close of 2,959.70. Despite an initial dip to 2,952.50, it quickly recovered and was trading 0.35% higher at 2,969.95 around 9:25 am. Reliance’s share price has climbed about 39% over the past year, outperforming the Nifty 50 benchmark.
