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ITC’s Net Profit Rises 12% YoY in Q4 – Top Indian Market NEws

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ITC Q4 Results: Net profit rises 12% YoY to Rs 4,190 crore

ITC Limited reported an 11.8% YoY increase in net profit to Rs 4,190.96 crore for the quarter ended March (Q4 FY22). Its revenue from operations rose 16% YoY to Rs 16,426 crore during the same period. Revenue from ITC’s cigarette business grew 9.96% YoY to Rs 6,443.37 crore in Q4. Non-cigarette FMCG revenue stood at Rs 4,141.97 crore, up 12.32% YoY. ITC’s board has declared a final dividend of Rs 6.25 per share.

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Ruchi Soya to acquire Patanjali’s food retail business for Rs 690 crore

Ruchi Soya Industries Ltd (RSIL) will acquire Patanjali Ayurved’s food retail business for Rs 690 crore. The business comprises of 21 major products, including ghee, honey, spices, juices, and atta. The company will also get manufacturing plants located at Padartha (Uttarakhand) and Newasa (Maharashtra). RSIL’s board has also approved the change in the name of the firm to Patanjali Foods Ltd.

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Route Mobile Q4 Results: Net profit rises 29% YoY to Rs 45.68 crore

Route Mobile Ltd reported a 29.15% YoY increase in consolidated net profit to Rs 45.68 crore for the quarter ended March (Q4 FY22). Net profit rose 2.61% when compared to the previous quarter. Its total income grew 75.35% YoY (or 11.80% QoQ) to Rs 634.48 crore during the same period. Route Mobile’s board has declared a final dividend of Rs 2 per share.

Sun Pharma to launch first-in-class oral lipid-lowering drug in India

Sun Pharmaceutical Industries Ltd is planning to launch an oral drug, Bempedoic Acid, to reduce low-density lipoprotein (LDL) cholesterol. The pharma company will launch the drug under the brand name Brillo. The drug is indicated for people who have an inherited genetic disorder that causes high cholesterol levels or established heart disease where cholesterol levels remain high.

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ABFRL Q4 Results: Net profit at Rs 43.6 crore

Aditya Birla Fashion & Retail Ltd (ABFRL) reported a consolidated net profit of Rs 43.59 crore for the quarter ended March (Q4 FY22). It had posted a net loss of Rs 137.64 crore in the corresponding quarter last year (Q4 FY21). Its total income grew 25.57% YoY to Rs 2,309.55 crore during the same period. EBITDA stood at Rs 401 crore in Q4, up 58% YoY.

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TVS Motor launches electric scooter iQube

TVS Motor Company Ltd rolled out its latest electric scooter, iQube, equipped with a host of features, including a best-in-class range of 140 km on a single charge. The Chennai-based company has unveiled three variants of the electric scooter. It will have a seven-inch touchscreen, voice assist, iQube Alexa skillset, and Bluetooth connectivity. TVS iQube and TVS iQube S will be available at Rs 98,564 and Rs 1,08,690, respectively.

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IGL Q4 Results: Net profit rises 9% YoY to Rs 361 crore

Indraprastha Gas Ltd (IGL) reported a 9% YoY increase in net profit to Rs 361.6 crore for the quarter ended March (Q4 FY22). Its revenue from operations rose 54.9% YoY to Rs 2,649.77 crore during the same period. EBITDA rose 2% YoY to Rs 500 crore in Q4. Total volumes grew 14% YoY to 697 million standard cubic meters (mscm) in Q4. IGL’s board has declared a dividend of Rs 5.5 per share.

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Manappuram Finance Q4 Results: Net profit falls 44% YoY to Rs 261 crore

Manappuram Finance Ltd reported a 44% YoY decline in net profit to Rs 261 crore for the quarter ended March (Q4 FY22). Its net interest income (NII) fell 10.2% YoY to Rs 986.5 crore during the same period. [NII is the difference between the interest income earned on loans and the interest paid to depositors.] The gold loan financier’s assets under management (AUM) stood at Rs 30,300 crore in Q4, up 11.2% YoY.

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Union Cabinet amends biofuels policy, advances ethanol blending target to 2025-26

The Union Cabinet approved advancing the target of blending 20% ethanol in petrol by five years to 2025-26. Currently, ~10% of ethanol is blended in petrol. The Cabinet has also approved a proposal to allow more feedstocks for the production of biofuels. These decisions will help India cut its reliance on oil imports.

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Passenger Vehicle Dispatches Dip 4% in April – Top Indian Market News

Passenger vehicle dispatches dip 4% in April: SIAM

Passenger vehicle (PV) dispatches from factories to dealers in the domestic market fell 4% YoY to 2,51,581 units in April. Two-wheeler sales increased by 15% YoY to 11.48 lakh units in April. Automakers are working hard to manage the supplier ecosystem with agility as supply-side challenges continue. The data was released by the Society of Indian Automobile Manufacturers (SIAM).

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Dr. Reddy’s Labs to commercialise Tegoprazan in India

Dr. Reddy’s Laboratories Ltd. has entered into an exclusive partnership with South Korea-based HK inno.N Corporation for the supply and commercialisation of its patented novel molecule Tegoprazan. The drug is used to treat gastrointestinal diseases. Under this partnership, Dr. Reddy’s Labs will be responsible for local clinical development, registration, marketing, and sales of Tegoprazan in licensed territories.

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Relaxo Footwear Q4 Results: Net profit falls 38% YoY to Rs 63 crore

Relaxo Footwear Ltd reported a 38.41% YoY decline in net profit to Rs 62.93 crore for the quarter ended March (Q4 FY22). Net profit fell 10.2% when compared to the previous quarter. Its revenue from operations fell 7% YoY to Rs 698 crore during the same period. EBITDA stood at Rs 111 crore in Q4, down 32% YoY. Relaxo Footwear’s board has declared a final dividend of Rs 2.5 per share.

LTI launches Innovation Studio for SAP Business Tech Platform

Larsen & Toubro Infotech (LTI) has launched its LTI Innovation Studio for SAP (System Applications & Products in Data Processing) Business Technology Platform. It helps global organizations accelerate their transformation journeys. The platform supports businesses in realizing the vision of an intelligent enterprise and enables them to amplify value from their digital core investments.

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Orient Cement Q4 Results: Net profit falls 26% YoY to Rs 73 crore

Orient Cement Ltd reported a 26.67% YoY decline in net profit to Rs 73.23 crore for the quarter ended March (Q4 FY22). Net profit rose 67.7% when compared to the previous quarter. Its revenue from operations fell 3.34% YoY to Rs 803.86 crore during the same period. EBITDA stood at Rs 153 crore in Q4, down 24% YoY. The cement manufacturer’s board has declared a final dividend of Rs 1.75 per share.

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Alembic Pharma gets final USFDA approval for Arformoterol Tartrate inhalation solution

Alembic Pharmaceuticals Ltd has received final approval from the US Food & Drug Administration (USFDA) for its generic version of Arformoterol Tartrate inhalation solution. The drug is indicated for long-term treatment of bronchoconstriction in patients with chronic obstructive pulmonary disease. As per IQVIA data, the inhalation solution had an estimated market size of $251 million for the 12 months ended December 2021.

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Balaji Amines Q4 Results: Net profit rises 28% YoY to Rs 108 crore

Balaji Amines Ltd reported a 28.67% YoY increase in consolidated net profit to Rs 108.72 crore for the quarter ended March (Q4 FY22). Net profit rose 21.4% when compared to the previous quarter. Its total income rose 87% YoY (or 38% QoQ) to Rs 781.15 crore during the same period. The chemical manufacturer’s board has declared a final dividend of Rs 6 per share.

Texmaco Rail secures order worth Rs 6,450 crore

Texmaco Rail & Engineering Ltd received an order worth Rs 6,450 crore from the Indian Railways. The order entails the delivery of 20,067 wagons to be executed over a period of 39 months. Texmaco Rail is a multi-discipline, multi-unit engineering and infrastructure company based in Kolkata.

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Kalyan Jewellers Q4 Results: Net profit falls 2.55% YoY to Rs 72 crore

Kalyan Jewellers Ltd reported a 2.55% YoY decline in consolidated net profit to Rs 72.29 crore for the quarter ended March (Q4 FY22). Net profit fell 46.2% when compared to the previous quarter. Its revenue from operations fell 6.53% YoY to Rs 2,857.06 crore during the same period. EBITDA stood at Rs 218 crore, down 4.39% YoY. The company’s e-commerce division Candere reported revenue of Rs 39 crore in Q4, registering a growth of 77% YoY.

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BSE Q4 Results: Net profit jumps two-fold to Rs 71.5 crore

BSE Limited reported a two-fold YoY jump in net profit to Rs 71.52 crore for the quarter ended March (Q4 FY22). The exchange’s revenue from operations rose 34.4% YoY to Rs 204.59 crore during the same period. The company posted a 73% YoY increase in net profit to Rs 244.93 crore for FY 2021-22. Revenue stood at Rs 743.14 crore in FY22, up 48% YoY. BSE’s board has declared a final dividend of Rs 13.5 per share. 

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OMCs sign purchase agreement for upcoming dedicated ethanol plants

Leading oil marketing companies (OMCs), including Bharat Petroleum Corporation Ltd, Indian Oil Corp Ltd, and Hindustan Petroleum Corp Ltd, have entered into a long-term purchase agreement (LTPA) for upcoming dedicated ethanol plants across India. Ethanol produced by these plants will be sold to OMCs for blending with petrol as per the Centre’s Ethanol Blended Petrol (EBP) program.

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OIL Reports 111% YoY Jump in Net Profit in Q2 – Top Indian Market News

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Oil India Q2 Results: Net profit jumps 111% YoY to Rs 504.46 crore

Oil India Limited (OIL) reported a 111% YoY jump in net profit to Rs 504.46 crore for the quarter ended September (Q2 FY22). Its turnover rose 52.8% YoY to Rs 3,311.18 crore during the same period. EBITDA stood at Rs 1,290.99 crore in Q2, an increase of 50.9% YoY. Crude oil price realisation for Q2 FY22 rose to $71.35 per barrel, compared to $42.74 per barrel in the corresponding period last year. OIL’s board has recommended an interim dividend of Rs 3.5 per share.

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Bank of Baroda Q2 Results: Net profit rises 24% YoY to Rs 2,088 crore

Bank of Baroda reported a 24.4% YoY increase in net profit to Rs 2,087.9 crore for the quarter ended September (Q2 FY22). Its net interest income (NII) rose 2.11% YoY to Rs 7,566 crore during the same period. The gross non-performing assets (GNPA) ratio stood at 8.11% in Q2, compared to 8.9% in the previous quarter. The bank’s provisions fell 2% YoY to Rs 2,754 crore.

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LTTS partners with Microsoft to offer industrial Io-based smart solutions

L&T Technology Services Ltd (LTTS) has partnered with Microsoft Corp. to offer its Energy & Sustainability Manager (ESM) solution on Microsoft Azure to digitally transform and create sustainable factories of the future. LTTS’ ESM is a comprehensive compliance and standard-driven solution that tracks energy losses across plants. It helps to reduce wastage sustainably throughout a business and provides visibility into utilities and plant equipment.

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Berger Paints Q2 Results: Net profit falls 1% YoY to Rs 219 crore

Berger Paints Ltd reported a 1% YoY decline in consolidated net profit to Rs 219.21 crore for the quarter ended September (Q2 FY22). Its revenue from operations rose 27.68% YoY to Rs 2,225.01 crore during the same period. The paint manufacturer’s total expenses stood at Rs 1,939.59 crore in Q2, an increase of 31.7% YoY.

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DLF to add 2.3 million sq. ft. in retail portfolio

DLF Limited will add 2.3 million square feet to its existing 4.2 million sq. ft. of retail portfolio with six new properties as part of its expansion plans. The realty company is introducing a new line of growth with the introduction of premium neighborhood plazas in Gurugram, Chennai, and Delhi. In addition to this, DLF Retail will be entering the Goa market with Patto Plaza, a 0.3 million sq. ft. premium offering at one of the most prime localities in the city. 

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Alembic Pharma Q2 Results: Net profit falls 50% YoY to Rs 169 crore

Alembic Pharmaceuticals Ltd reported a 50% YoY decline in net profit to Rs 169.29 crore for the quarter ended September (Q2 FY22). Its revenue from operations fell 11% YoY to Rs 1,292.32 crore during the same period. The US generics business posted a 40% YoY fall in sales to Rs 348 crore in Q2. Revenue from its domestic formulations business stood at Rs 509 crore, registering a growth of 23% YoY. 

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UCO Bank enters co-lending agreement with Aadhar Housing Finance

UCO Bank has entered into a co-lending agreement with Aadhar Housing Finance to offer home loans at competitive rates. The partnership aims at providing easy and convenient home finance solutions to customers from the economically weaker sections of society. The co-lending framework of the Reserve Bank of India (RBI) provides a tool for banks and non-banks to collaborate, leverage on their respective strengths to give an affordable solution to the unserved and underserved sections.

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Cadila Healthcare gets USFDA approval for pre-surgery injection

Cadila Healthcare has received final approval from the US Food & Drug Administration (USFDA) for Glycopyrrolate injection. The drug is used before surgery to decrease the volume of secretions from the mouth, lungs, and stomach. It will be manufactured at the group’s injectables manufacturing facility at CHL-Jarod, near Vadodara in Gujarat.

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Cabinet approves ethanol price hike by up to Rs 1.4 per litre for blending in petrol

The Union Cabinet has hiked the price of ethanol extracted from sugarcane for blending in petrol by up to Rs 1.47 per litre for the 2021-22 marketing year, starting December. It is part of the government’s target to achieve 20% doping by 2025. Higher mixing of ethanol in petrol will help India cut its oil import bill and also benefit sugar cane farmers and sugar mills.

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Bharti Airtel, Oracle enter into a data centre and cloud deal in India

Bharti Airtel and Oracle have extended their partnership to support the growth of India’s digital economy by bringing a range of industry-leading cloud solutions to more than 10 lakh enterprise customers. Oracle will expand its India West (Mumbai) region capacity with Nxtra by Airtel to support the increasing demand for cloud services in India. Nxtra by Airtel operates India’s largest data centre network of 10 hyper data centres and 120 edge data centres.

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India to Target 20% Ethanol Blending in Petrol by 2025, says PM Modi – Top Indian Market News

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India advances 20% ethanol blending in petrol to 2025: PM Modi

Prime Minister Narendra Modi, on Saturday, said the target date for achieving 20% ethanol-blending with petrol has been advanced by five years to 2025 to cut pollution and reduce import dependence. The E100 pilot project related to the production and distribution of ethanol was also launched in Pune today. Ethanol extracted from sugarcane and damaged food grains is less polluting and its use will also provide farmers with an alternate source of income. 

Last year, the Central government had set a target of reaching 10% ethanol blending in petrol (10% ethanol mixed with 90% diesel) by 2022 and 20% doping in 2030.

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VA Tech Wabag Q4 Results: Net profit at Rs 32 crore

VA Tech Wabag Ltd reported a standalone net profit of Rs 32.82 crore for the quarter ended March 2021 (Q4 FY21). It had posted a net profit of Rs 1.38 crore in the corresponding quarter last year (Q4 FY20). Total income rose 39.2% YoY to Rs 701.09 crore in Q4 FY21. For the financial year ended March 31, 2021 (FY21), net profit rose 24.3% YoY to Rs 73.03 crore. VA Tech Wabag is a water treatment company based in Chennai.

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IOL Chemicals Q4 Results: Net profit declines 16% YoY to Rs 75 crore

IOL Chemicals and Pharmaceuticals Ltd reported a 16.63% YoY decline in net profit to Rs 75.25 crore for the quarter ended March (Q4). Net profit has declined by 35.5% when compared to the previous quarter. Its revenue from operations rose 4% YoY to Rs 467 crore during the same period. Net profit for the financial year ended March 31, 2021 (FY21) rose 23.05% YoY to Rs 444.46 crore. The company’s board has recommended a final dividend of Rs 2 per share.

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GST collection declines in May; still holds above Rs 1 lakh crore mark 

The gross Goods and Services Tax (GST) revenue collected in May 2021 stood at Rs 1,02,709 crore, as per data released by the Ministry of Finance. This marks the eighth month in a row that GST revenue has stayed above the Rs 1 lakh crore mark. GST collection took a severe hit in May due to lockdowns and other restrictions imposed by states to curb the second wave of Covid-19 infections. The total GST revenue in May 2021 stands 65% higher than the corresponding month last year. GST collections in April 2021 stood at a record high of Rs 1.41 lakh crore.

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PNB targes 3-fold rise in profit at nearly Rs 6,000 crore in FY22 

Punjab National Bank (PNB) announced that it is expecting a nearly three-fold jump in net profit to Rs 6,000 crore during the current financial year (FY22). The lender said this target will depend on credit growth and overall demand in the economy. It projects a loan growth of 8-10% for the banking industry on the assumption that the economy will grow at 9.5% in 2021-22. PNB has also identified bad loans (NPAs) worth Rs 8,000 crore, which will be transferred to the National Asset Reconstruction Company Ltd (NARCL).

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REC subsidiary transfers two project specific SPVs to PowerGrid

REC Power Distribution Company Ltd, a wholly-owned subsidiary of REC Limited, has handed over two project-specific Special Purpose Vehicles (SPVs) to Power Grid Corporation of India. The SPVs include Fatehgarh Bhadla Transco Ltd and Sikar New Transmission Ltd. The selection of PowerGrid was carried out through Tariff Based Competitive Bidding (TBCB) conducted by the Ministry of Power, Government of India.

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Dynemic Products Q4 Results: Net profit declines 27% YoY to Rs 5.8 crore

Dynemic Products Ltd reported a 27.72% YoY decline in consolidated net profit to Rs 5.79 crore for the quarter ended March (Q4). Net profit has declined by 30% when compared to the previous quarter. Its revenue from operations rose 29.43% YoY to Rs 56.56 crore during the same period. Net profit for the financial year ended March 31, 2021 (FY21) rose 17.87% YoY to Rs 28.49 crore. Dynemic Products is a leading manufacturer of food colours.

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IPO-bound Paytm reports loss of Rs 1,701 crore in FY21

One97 Communications Ltd, the parent company of Paytm, reported a consolidated loss of Rs 1,701 crore for the financial year ended March 31, 2021 (FY21). It had posted a loss of Rs 2,942 crore in FY20. Its total revenue declined by 10% YoY to Rs 3,186 crore. Expenses fell 22% YoY to Rs 4,782.95 crore. Last week, Bloomberg reported that Paytm is planning to raise ~Rs 21,800 crore via an initial public offering (IPO). The digital payments provider is targeting a valuation of $25 billion to $30 billion.

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NHPC to lease electric vehicles, fast charging devices from EESL

NHPC Limited has signed an agreement with Energy Efficiency Services Ltd (EESL) for leasing 25 electric vehicles (EVs) and three fast-charging devices to be used by its officials. With the induction of these EVs, NHPC will have the biggest fleet of zero-emission cars among all major public sector undertakings (PSUs). EESL has been procuring EVs from automakers such as Tata Motors and Mahindra & Mahindra (M&M) and supplying them to different ministries and PSUs.

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IFGL Refractories Q4 Results: Net loss at Rs 2.53 crore

IFGL Refractories Ltd reported a consolidated net loss of Rs 2.53 crore for the quarter ended March 2021 (Q4 FY21). It had posted a net loss of Rs 13.93 crore in the corresponding quarter last year (Q4 FY20). Its revenue from operations rose 27.66% YoY to Rs 283.52 crore in Q4 FY21. For the financial year ended March 31, 2021 (FY21), net profit jumped 237.22% YoY to Rs 65.59 crore. The company’s board has approved a total dividend of Rs 10 per share.

IFGL Refractories is a manufacturer of specialised refractories (materials that can withstand very high temperatures) used in steel plants.

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Sugar Stocks Rally to Continue?

Last Year in November, we at marketfeed talked about why sugar companies continued to churn high profits despite low production and consumption in wake of the COVID-19 pandemic. The reason was simple. Sugar companies turned towards producing ethanol(a byproduct of sugarcane), used in hand sanitizers and to mix with petrol. You can read in detail about the article over here.

In February 2021, had you invested in sugar stocks like Rana Sugars Ltd., Dalmia Bharat Sugar and Industries Ltd., Balrampur Chini Mills Ltd., your investment would have doubled in three months’ time. Sugar stocks have constantly been rallying ever since we talked about them in November last year. Traders and Investors suggest that Indian sugar companies have a bright opportunity when it comes to sugar export. This is because of a global sugar shortage across the world and in major exporting countries like Brazil, Thailand, and the European Union. In this piece, we explore why sugar stocks are rallying and how India’s sugar industry is likely to gain from the current global sugar market scenario. 

Source: Company Results And Stock Market Data

Sugar Stocks Continue To Rally

In the table given below, we can clearly see that sugar stocks have given MASSIVE returns. Some stocks like Dalmia Bharat Sugar have given returns close to 300%. In the last 1 month, the sugar sector has outperformed the NIFTY50 and SENSEX. While both the benchmark indices had their ups and downs last month, the sugar stocks gave some really positive and consistent returns. While the Q4 results for the past financial year have started pouring in, analysts are positive about profits in the quarter. This is mainly due to the global shortage of sugar, surging international prices and domestic prices, and India’s ethanol blending program. 

Ethanol Blending Program In India

The Ethanol Blending Program in India was started in 2003 to mix bioethanol(produced from wheat or sugarcane) with petrol. This reduces the burden of importing crude petroleum from other countries which is a burden on the Indian Government’s pockets. Moreover, the environment-friendly factor, additional income for sugarcane producers, and cost-efficiency are an added plus. The government has set a goal of 10% ethanol blending with petrol for 2022 and 20% ethanol blending with petroleum by 2025. Almost a month ago India hit a record of 7.2% ethanol blending from 4.3% in 2020 for the first time.

Global Sugar Shortage To Benefit India?

  • Indian has an excess or a glut of sugar/sugarcane supply. However, this excess sugar cannot be exported for economic reasons. The reason being that international prices of sugar were much lower than the cost of production in India. So if sugar companies were to actually export sugar, they would have to do so at a loss. The sugarcane farmers kept supplying sugarcane to mills, but mills were not able to maximize their profits since domestic, as well as international prices, were low. This made a backlog of payments to be given to the farmers by the sugar mills. The backlog is estimated to be Rs 25000 crores as of January 2021. 
  • Considering the above, the government is trying to ‘subsidize’ exports. The government provided a subsidy of Rs 6268 crore in FY19-20. This year, the government has already approved a subsidy of Rs 3500 crore in December 2020. The proceeds of the subsidy will be used to enhance transportation, marketing, packaging, etc. The government has set a target of exporting 60 lakh tonnes of sugar for the current financial year. 
  • Crude oil prices all across the world have increased by more than ~150% in a year’s time. Brazil and Thailand are the largest exporters of sugar in the world. In Brazil, the average ethanol blend in petrol is about 48%, much higher than India’s 7.2%. Brazil has now started diverting its sugarcane harvest to produce ethanol to blend it with petroleum. Moreover, Thailand and the European Union have had lower production of sugar this time. The uncertainty of Brazil’s diversion of sugarcane toward the production of ethanol combined with lower production in Thailand and the European Union has sent international prices skyrocketing. 
  • Over a year, international sugar prices have increased by ~50%. Combine this with the export subsidy and it could mean some really good profits for Indian sugar co-operatives. This way, the farmers too could have their backlog of payment complete.  

What Lies Ahead? 

India has always maintained an excess of sugar. Despite producing the most amount of sugar in the world, it is not able to get a fair value in the international markets. This adds to the sugar surplus, pushing sugar prices further down. India needs to improve efficiency, technology, and marketing in order to improve its exports. India’s domestic sugar prices have stagnated for the past 2 years and have remained consolidated for quite some time now. The only way to improve India’s domestic prices would be to export in the international markets while the prices remain high and drive up the Ethanol Blending program. This would eventually utilize the domestic surplus and eventually drive up prices. The government needs to take the necessary steps in order to fully utilize the current price surge across the world.