Stocks Radar: Nucleus Software, Zensar Tech, Zee Learn
One-off costs hurt Zensar Technologies’ fourth quarter net profit
Indian shares extended their winning streak to the third day tracking a strong rally in global equity markets. Benchmark indices opened at fresh record highs with the S&P BSE Sensex index opening above the 30,000-mark for the first time in two years.
Here are the stocks that are moving the market:
Wipro: Q4 Impresses Street Despite Muted Guidance
Shares of the information technology firm rose as much as 3.78 percent, the most since January 19, 2015, after its fourth quarter earnings
Net profit rose 7 percent sequentially to Rs 2,267 crore, according to its stock exchange filing.
Revenue climbed 5.1 percent to Rs 14,470 crore, while operating profit margins remained flat at 21 percent. Revenue in dollar terms stood at $1,954.6 crore, higher than what the company had forecast in December.
Uncertainty in the U.S. healthcare sector will make the April-June quarter challenging.Abidali Neemuchwala, Chief Executive Officer, Wipro
The board decided to issue one free share for every share held in the company. The bonus shares will be issued out of the company's free reserves.
Zensar Technologies: Earnings Reaction
Shares of the company fell as much as 11.39 percent, the most since August 24, 2015, after its consolidated net profit for the January-March quarter fell 86 percent to Rs 10.73 crore compared to Rs 80.15 crore on a sequential basis.
Client ramp ups in the traditional business in the United States led to a slow down in the recent quarter, the company said in an exchange filing.
It has been a significant year for Zensar with several strategic investments into core digital areas. The profits for the quarter were impacted due to strong currency fluctuations and few one-time costs.Manoj Jaiswal, Chief Financial Officer, Zensar Technologies
Zee Learn: Volume Spurt
A surge in volumes saw Zee Learn gaining as much as 6.51 percent to Rs 49.90 in trade. The company also reported its earnings for the January-March quarter that saw its net profit jump by 88 percent to Rs 14.65 crore compared to Rs 7.8 crore year-on-year.
Earnings before interest, tax, depreciation and amortization for the company was at Rs 12.5 crore compared to Rs 11.4 crore in the year-ago period, a growth of 10 percent. EBITDA margins fell to 20.8 percent from 22.7 percent.
Volumes for the counter traded yesterday was 2.2 times that of its 30-day average volumes.
Zee Learn trades at 43 times trailing 12-month earnings per share. Its Bloomberg peers are priced at an average of 42.2 times trailing per-share earnings.
Nucleus Software: Announces Buyback
Shares of the company rose as much as 16 percent, the most since November 30, 2016, to Rs 329.50 after its net profit for the fourth quarter grew 14.4 percent to Rs 22.3 crore from Rs 19.5 crore in the previous quarter.
Revenue for the company remained flat at Rs 93.7 crore from Rs 93.1 crore sequentially.
The company approved a final dividend of Rs 5 per share and also proposed a buyback of shares at an offer price of Rs 350 per share, subject to shareholder approval.
IDFC Bank: Asset Quality, Provisioning Improves
The private lender sold 14 large corporate loans worth Rs 2,000 crore to Asset Reconstruction Companies during the January-March quarter, resulting in a significant improvement in its asset quality.
Gross non-performing assets during the January-March period declined 57 percent sequentially to Rs 1,542.1 crore as against Rs 3,586.7 crore during the previous quarter, the bank said in its stock exchange filing. In percentage terms, the asset quality improved to 2.99 percent for the fourth quarter compared to 7.03 percent during the October-December period.
Net NPAs too improved from 2.57 percent to 1.14 percent sequentially.
Shares gained as much as 6.9 percent, the most since December 27, 2016 to Rs 63.50.