All You Need To Know Going Into Trade On January 25
Asian equities have seen a muted start to the new trading week. Investors look forward to the Federal Reserve policy meeting this week as the pandemic worsens in many parts across the globe.
Markets fluctuate in Japan while those in South Korea and Australia are edging higher.
The U.S. Dollar held Friday's gains, treasury yields were flat while oil prices were steady.
The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, rose 0.9% to 14,486 as of 6:55 a.m.
Short on time? Well, then listen to this podcast for a quick summary of All You Need To Know before the opening bell.
Let’s take a look at the factors that may influence equities in today’s trading session:
- Futures on the Dow Jones are trading 70 points higher. The index fell 0.6% on Friday.
- Slow rollout of the Covid vaccine coupled with sparring over U.S. fiscal stimulus are highlighting risks to an economic recovery.
- Investors are hopeful of Fed Chair Jerome Powell reassuring the markets that the $120 billion of monthly bond purchases will not be tapered anytime soon.
- Microsoft, Apple, Tesla, Facebook, UBS are some of the key companies reporting earnings this week.
- Yield on the 10-year treasuries stood at 1.09%.
- West Texas Intermediate crude stood at $52.25 per barrel.
Get your daily fix of the global markets here.
RIL Q3FY21 (Consolidated, YoY)
- Revenue down 23.1% at Rs 1,17,860 crore Vs Rs 1,53,302 crore (BBG Estimate: Rs 1,20,900 crore)
- Net profit up 12.6% at Rs 13,101 crore Vs Rs 11,640 crore (BBG Estimate: Rs 11,313 crore)
- Ebitda down 5.2% at Rs 21,566 crore Vs Rs 22,749 crore (BBG Estimate: Rs 21,949 crore)
- Ebitda margins at 18.3% vs 14.8% (BBG Estimate: 18.2%)
- Gross Debt at Rs 2,57,413 crore vs Rs 3,36,294 crore at end of March 2020
- 56% of the incremental Ebitda came from Retail and Jio
- Sharp reduction in interest cost with large paydown of debt
Jio Platforms Q3FY21 (Consolidated, QoQ)
- Revenue up 5.3% at Rs 19,475 crore Vs Rs 18,496 crore
- Net profit up 15.5% at Rs 3,489 crore Vs Rs 3,020 crore
- Ebitda up 6.4% at Rs 8,483 crore Vs Rs 7,971 crore
- Ebitda margins at 43.6% Vs 43.1%
- Growth backed by higher ARPU and subscriber addition
- Achieved $10 billion in annualised revenue run rate
- ARPU rose to Rs 151; Gross additions at 25.1 million
- Expect to rollout 5G over the next few quarters
Ultratech Cement Q3FY21 (Consolidated, YoY)
- Revenue up 17.4% at Rs 12,254.12 crore Vs Rs 10,439.3 crore (BBG estimate: Rs 11,451.6 crore)
- Net profit up 2.3 times at Rs 1,584.3 crore Vs Rs 711.8 crore (BBG estimate: Rs 1,274.7 crore)
- Ebitda up 56.4% at Rs 3,094.3 crore Vs Rs 1,978.3 crore (BBG estimate: Rs 2,707.8 crore)
- Ebitda Margins at 25.3% Vs 18.9% (BBG estimate: 23.6%)
- Net debt reduction during the quarter was at Rs 2,696 crore
- Net debt reduction for 9MFY21 was at Rs 7,424 crore
- Consolidated Sales volume up 14% at 23.8 million tons Vs 20.9 million tons
JSW Steel’s Q3FY21 (Consolidated, YoY)
- Revenue up 21.1% at Rs 21,859 crore Vs Rs 18,055 crore (BBG estimate: 20,586 crore)
- Net profit at Rs 2,681 crore Vs Rs 211 crore (BBG estimate: Rs 2,506.8 crore)
- Ebitda at Rs 5,946 crore Vs Rs 2451 crore (BBG estimate: Rs 5371.3 crore)
- Ebitda Margins at 27.2% vs 13.5%
- To achieve 95% of production guidance of 15 million tonnes for FY21
- To achieve 100% of sales guidance of 14 million tonnes due to higher inventory for FY21
- Exports to remain 10% of sales in Q4
- Expect provisioning of $17 million for overseas subsidiaries in Q4
- Overseas subsidiaries to turn operationally profitable in Q2 FY22
HDFC Life Q3FY21 (Standalone, YoY)
- Gross Premium up 20% at Rs 9,628 crore Vs Rs 8,001 crore
- Net profit up 6% at Rs 265 crore Vs Rs 250 crore
- VNB Margins for 9MFY21 at 25.6% Vs 26.6%
- 13th Month Persistency for 9MFY21 at 89% Vs 87%
- Registered 20% growth in premium income driven by higher renewal premium and stable persistency
Stocks To Watch
- Grasim: Announces foray into the paints business. Board approves investment of up to Rs 5,000 crore over the next three years, primarily towards capex. Entry in the paints sector will add size, scale, diversity and stability to cash flows of the existing business portfolio of the company. The company believes the sector will be value accretive to shareholders. To hold board meeting on January 28 to consider the issue of Non-Convertible Debentures on a private placement basis, in one or more tranches.
- Tata Motors: Has hiked prices of its passenger vehicle range with effect from January 22. The company increased prices upto Rs 26,000, depending on the variant. To offer protection from the price increase to customers who have booked passenger vehicles on or before January 21.
- Apollo Hospitals: Raises Rs 1,167 crore through the QIP issue. Allots 46.59 lakh shares of face value of Rs 5 each at an issue price of Rs 2,511 per equity share. Goldman Sachs Singapore, BNP Paribas Funds India, BNP Paribas Arbitrage, HSBC Indian Equity fund among others were some of the institutional buyers.
- Adani Green Energy: Enters into securities purchase agreement to acquire 20 MW operating solar assets of Hindustan Powerprojects worth Rs 133 crore. The assets are located in Uttar Pradesh. The company post the acquisition will have operating renewable capacity of 3,145 MW.
- Cadila Healthcare: Zydus Cadila gets final approval from the U.S. FDA for Liothyronine Sodium tablets. The drug will be manufactured at the group's formulations manufacturing facility at the SEZ, Ahmedabad.
- Tata Power: Wholly-owned subsidiary gets EPC order worth Rs 1,200 crore from NTPC to set up a 320 MW ground-mounted solar PV project. Commercial operation date for the project is set for May 2022. With this addition, the order pipeline of Tata Power Solar stands approximately at 4 GWp with an approximate value of Rs 12,000 crore.
- Antony Waste Handling Cell: Economic activity witnessed in the regions serviced has witnessed an improvement during Q3FY21. Operating revenue has shown a growth of around 11% year-on-year. Total tonnage handled by the Collection and Transportation business saw a growth of 8% year-on-year. Total waste processed by the company has improved 11% during the quarter as compared to last year.
- Piramal Enterprises: Has received a letter of intent from DHFL's creditors. Piramal Capital & Housing Finance declared the successful resolution applicant in DHFL's insolvency proceedings. Piramal Capital & Housing Finance is a wholly owned subsidiary of Piramal Emterprises. Majority of the committee of creditors had voted in favour of Piramal Group's plan on January 15.
- Tejas Networks: Vijay Kedia acquired 3.20 lakh shares (0.35%) through the open market. Increases his stake in the company to 5.39% from 5.04% earlier.
- Atul: To consider proposal for buyback of equity shares at its board meeting on January 29, 2021.
- United Spirits: Enters into a definitive agreement to sell its entire shareholding in its non-operative subsidiary Tern Distilleries for a consideration of Rs 30 crore.
- Embassy Office Parks REIT: Board approves the scheme of arrangement between Embassy Office Ventures and Vikas Telecom. The proposed scheme shall enable a simplified holding and management structure for Embassy REIT assets and create value for Embassy REIT and its unitholders. This will fall under the ambit of a related party transaction and upon being effective, Vikas Telecom will become a 100% directly-held special purpose vehicle of Embassy Office Parks REIT.
- Future Retail: Due to continued negative impact of Covid-19 and consequent restricted business operations, the liquidity position has been affected, causing the company to miss the service of the payment of interest due on U.S. Dollar notes due on January 22, 2021. The company has proposed to make the payment of interest within 30 days from the interest due date.
- Federal-Mogul Goetze: IEH FMGI Holdings LLC, one of the members of the company's promoter group plans to sell 1.15 crore shares through an Offer for Sale. The number of shares amount to 20.68% of the total paid-up equity share capital of the company. The floor price of Rs 305 per share is the same at which the stock closed on Friday. The OFS opens for non-retail investors on January 25 and for retail investors on January 27. Based on the shareholding pattern of the company as on December 31, 2020, IEH FMGI Holdings LLC held 20.68% in the company.
- Punjab National Bank: Has issued and allotted additional tier-1 bonds (Basel-III compliant) worth Rs 495 crore at a coupon of 8.6% per annum on a private placement basis.
- Aster DM Healthcare: Has entered into a share subscription agreement to invest in 15.98% of equity share capital of Alfaone Medicals. The company will acquire 2,28,572 shares of face value of Rs 10 each aggregating to total investment of Rs 22.85 lakh.
- Kewal Kiran Clothing: Has declared a 2nd interim dividend of Rs 8 per share for FY21. The date of payment for the dividend will be February 16, 2021.
- ISGEC Heavy Engineering: Has received an order for Wet Flue Gas Desulphurisation System Package for the 2x660 MW Khurja Thermal Power Project in Uttar Pradesh from L&T MHI Power Boilers. The company has also bagged an order for DeNOx (Combustion Modifications) Package for the 2x77 MW & 1x80 MW Wall Fired Boilers at Gummidipoondi, Tamil Nadu from OPG Power Generation. This project is aimed at reducing NOx in order to make the plant compliant with the recent NOx emission norms.
- IFB Industries: Made a pre-payment of $4 million out of the ECB loan of $20 million taken from Standard Chartered Bank. The loan was taken for the company's Home Appliance Division.
- Thyrocare Technologies: A meeting of Board of Directors is scheduled on January 30 to consider and decide on payment of 2nd Interim Dividend, if any, for the financial year 2020-21.
- Nifty Earnings: Kotak Mahindra Bank, L&T
- Non-Nifty Earnings: Aarti Drugs, APL Apollo Tubes, Astec Lifesciences, Can Fin Homes, Chennai Petro, ICICI Securities, Mahindra Holidays, Navin Fluorine, RPG Life, Sharda Cropchem, UCO Bank
Earnings Post Market Hours
Yes Bank Q3FY21 (Standalone, YoY)
- Net Interest Income up 140% at Rs 2,560.4 crore Vs Rs 1,064.7 crore (BBG Estimate: Rs 1,969.6 crore)
- Net profit of Rs 150.7 crore Vs net loss of Rs 18,560 crore (BBG Estimate: Net loss of Rs 4,815.4 crore)
- Gross NPA at 15.36% Vs 16.9% (QoQ)
- Net NPA at 4.04% Vs Rs 4.71% (QoQ)
- Proforma gross NPA at nearly 20%
- The board approved fund raising through qualified institutional placement, rights issue, global depository receipts, American depository receipts, further public offering etc.
- To raise up to Rs 10,000 crore in one or more tranches
Oberoi Realty Q3FY21 (Consolidated, YoY)
- Revenue up 57% at Rs 828.4 crore Vs Rs 527.4 crore (BBG Estimate: Rs 481.7 crore)
- Net profit up 93% at Rs 286.6 crore Vs Rs 148.2 crore (BBG Estimate: Rs 160.2 crore)
- Ebitda up 66% at Rs 382.4 crore Vs Rs 229.9 crore (BBG Estimate: Rs 235.7 crore
- Ebitda Margin at 46.2% Vs 43.6%
Crompton Greaves Consumer Electricals Q3FY21 (Standalone, YoY)
- Revenue up 24% at Rs 1,323.1 crore Vs Rs 1,071.3 crore (BBG Estimate: Rs 1,229.3 crore)
- Net profit down 8% at Rs 147.4 crore Vs Rs 161 crore (BBG Estimate: Rs 132.8 crore)
- Ebitda up 43% at Rs 195.2 crore Vs Rs 136.8 crore (BBG Estimate: Rs 178.2 crore)
- Ebitda Margin at 14.8% Vs 12.8%
- Net profit not comparable with the same period last year as it had adjusted an amount of Rs 57.38 crore in respect of an earlier completed assessment, by netting-off from current tax expense for the quarter.
- Electric consumer durables revenue up 32% at Rs 1,035.9 crore Vs Rs 787 crore
- Lighting products revenue up 1% at Rs 287.2 crore Vs Rs 284.3 crore
- Lighting B2B activity remained challenging due to slow order pick up from institutional clients.
- E-commerce and Rural channels reported increased share in the overall business.
Gland Pharma Q3FY21 (Standalone, YoY)
- Revenue up 33% at Rs 859.4 crore Vs Rs 646 crore
- Net profit up 33% at Rs 204.1 crore Vs Rs 154 crore
- Ebitda up 25% at Rs 264.2 crore Vs Rs 211.9 crore
- Ebitda Margin at 30.7% Vs 32.8%
- Revenue from core markets up 24% at Rs 602.1 crore Vs Rs 485.3 crore
- India business revenue up 25% at Rs 149.5 crore Vs Rs 119.3 crore
- Rest of the World revenue up 161% at Rs 107.8 crore Vs Rs 41.3 crore
Polycab India Q3FY21 (Consolidated, YoY)
- Revenue up 12% at Rs 2,798.8 crore Vs Rs 2,507.3 crore (BBG Estimate: Rs 2,704 crore)
- Net profit up 19% at Rs 263.6 crore Vs Rs 221.4 crore (BBG Estimate: Rs 252.6 crore)
- Ebitda up 11% at Rs 375.7 crore Vs Rs 339.2 crore (BBG Estimate: Rs 370.1 crore)
- Ebitda Margin at 13.4% Vs 13.5%
- Wires & Cables revenue up 11% at Rs 2,407.2 crore Vs Rs 2,169.6 crore
- FMEG revenue up 41% at Rs 305.5 crore Vs Rs 216.6 crore
- Demand for B2C products remains buoyant with improving consumer sentiment
Birla Corporation Q3FY21 (Consolidated, YoY)
- Revenue up 4% at Rs 1,776.6 crore Vs Rs 1,715 crore (BBG Estimate: Rs 1,775.3 crore)
- Net profit up 82% at Rs 148.4 crore Vs Rs 81.5 crore (BBG Estimate: Rs 143.2 crore)
- Ebitda up 12% at Rs 329.8 crore Vs Rs 294.5 crore (BBG Estimate: Rs 357.1 crore)
- Ebitda margin at 18.6% Vs 17.2%
- Higher other income contributes to net profit growth
- Other income up 128% at Rs 46.2 crore Vs Rs 20.3 crore
- Sales volume up 3.2% to 3.55 million tonnes
- Capacity utilisation at 92% from 88%
- Ebitda per tonne up 16.7% at Rs 992 from Rs 850
- Debt at Rs 4,099 crore Vs Rs 4,172 crore
DCB Bank Q3FY21 (Standalone, YoY)
- Net Interest Income up 4% at Rs 334.7 crore Vs Rs 323.1 crore (BBG Estimate: Rs 331.9 crore)
- Net profit flat at Rs 96.2 crore Vs Rs 96.7 crore (BBG Estimate: Rs 75.3 crore)
- Gross NPA at 1.96% Vs 2.27% (QoQ)
- Net NPA at 0.59% Vs 0.83% (QoQ)
- Provisions at Rs 147.7 crore Vs Rs 113.1 crore (QoQ) and Rs 59 crore (YoY)
- Further provision of Rs 86.11 crore against Covid-19, taking the total provision to Rs 229.1 crore
Pledge Share Details
- Emami: Promoter Suntrack Commerce created a pledge of 11.31 lakh shares on January 20. Promoters Bhanu Vyapaar and Diwakar Viniyog revoked pledge of 18.20 lakh shares between January 19-21.
As Reported On January 22.
- IndusInd Bank: Bofa Securities Europe SA bought 39.50 lakh shares (0.52%) at Rs 928 per share. UBS Principal Capital Asia sold 39.50 lakh shares (0.52%) at Rs 928 per share.
- Best Agrolife: Stepping Stone Construction bought 1.14 lakh shares (0.52%) at Rs 541.35 per share. Lotus Global Investments sold 1.11 lakh shares (0.50%) at Rs 541.35 per share.
- Gayatri Projects: Sparrow Asia Diversified Opportunities Fund bought 20.40 lakh shares (1.09%) at Rs 43.65 per share. Leman Diversified Fund sold 20.40 lakh shares (1.09%) at Rs 43.65 per share.
- Price Band Revised From 20% To 10%: JK Tyre & Industries, Madras Fertilizers
- Record Date Interim Dividend: Wipro, CESC
- Move Into Short-term ASM Framework: Tata Motors
- Move Out Of Short-term ASM Framework: Bajaj Electricals, Sutlej Textiles & Industries, GTL Infrastructure
- Move Into ASM Framework: GTL Infrastructure, Ruchi Soya Industries, Arshiya
- Move Out Of ASM Framework: Birlasoft, Gati
Money Market Update
- The rupee ended little changed at 72.97 against the U.S. Dollar as compared to Thursday's close of 72.99.
- The rupee was the third best performing currency in Asia for the week.
- Nifty January futures end at 14,375; premium of 4 points
- Nifty January futures shed 6.4% and 10,437 shares in Open Interest
- Nifty Bank January futures end at 31,204; premium of 37 points
- Nifty Bank January futures shed 2.5% and 1,515 shares in Open Interest
- Nifty Put-Call Ratio at 0.76
- Enters F&O Ban: NALCO, PNB
- Out Of F&O Ban: Sun TV, Vodafone Idea
- Stocks In F&O Ban: NALCO, PNB, SAIL