All You Need To Know Going Into Trade On July 26

Most Asian stocks rose early Monday after U.S. shares rallied to an all-time high on corporate earnings, though traders are also mulling China’s technology-sector crackdown and an upcoming Federal Reserve meeting.

Japan jumped after reopening from a two-day holiday, Australia edged up and South Korea fluctuated. Futures slid in Hong Kong, where an index offering exposure to China’s internet giants is the world’s worst-performing major tech gauge.

The Singapore-traded SGX Nifty, an early indicator of India's Nifty 50 Index’s performance, fell 0.54% at 15,768 as of 7 a.m.

U.S. equity contracts were steady after a record Wall Street close Friday, with the S&P 500 almost doubling from the depths of the pandemic. About 87% of the S&P 500 firms reporting results so far this season have beaten estimates.

Elsewhere, Bitcoin traded above $35,000, continuing a recent rally. Crude oil was just above $72 a barrel.

Earnings Post Market Hours

Reliance Industries Limited Q1FY22 (Consolidated, QoQ)

• Net sales down 6% at Rs 1.39 lakh crore Vs Rs 1.49 lakh crore (Bloomberg estimate: Rs 1.47 lakh crore)

• Net profit down 7% at Rs 12,273 crore Vs Rs 13,227 crore (Bloomberg estimate: Rs 11,889 crore)

• Ebitda up 3.6% at Rs 27,550 crore Vs Rs 26,602 crore (Bloomberg estimate: Rs 23,447 crore)

• Ebitda margin at 19.7% Vs 17.8% (Bloomberg estimate: 15.9%)

Reliance Jio Q1FY22 (Standalone, QoQ)

• Revenue up 3.7% at Rs 17,994 crore Vs Rs 17,358 crore (Bloomberg estimate: Rs 18,014 crore)

• Net profit up 4.2% at Rs 3,501 crore vs Rs 3,360 crore (Bloomberg estimate: Rs 3,154 crore)

• Ebitda up 3.9% at Rs 8,617 crore Vs Rs 8,290 crore (Bloomberg estimate: Rs 8,636 crore)

• Margins at 47.9% Vs 47.8% (Bloomberg estimate: 47.9%)

• Average revenue per user rose stayed largely flat at Rs 138.4 per month

• Added 1.4 crore customers in the quarter ended June

ICICI Bank Q1FY22 (Standalone)

• Net Profit up 77.6% at Rs 4,616 crore Vs Rs 2,599 crore (YoY) (Bloomberg estimate: Rs 4,362 crore)

• NII up 17.8% at Rs 10,936 crore Vs Rs 9,280 crore (YoY) (Bloomberg estimate: Rs 10,599 crore)

• GNPA at 5.15% Vs 4.96% (QoQ)

• NNPA at 1.16% Vs 1.14% (QoQ)

• Gross additions to bad loans were at Rs 7,231 crore

• The bank has written off Rs 1,589 crore worth bad loans

• Recoveries and upgrades stood at Rs 3,627 crore

• Slippages during the quarter at Rs 7,231 crore

• Retail loans worth Rs 925 crore restructured

• Corporate loans worth Rs 2,956 crore restructured owing to Covid-19 stress

• Held provisions worth Rs 632.35 crore against these loans

• Total provisions fell 62.4% year-on-year to Rs 2,852 crore

• Wrote back floating provisions worth Rs 1,050 crore

• Total deposits up 16% to Rs 9.26 lakh crore (YoY)

ITC Q1FY22 (Standalone, QoQ)

• Revenue down 8% at Rs 12,959.15 crore Vs Rs 14,156.96 crore (Bloomberg estimate: Rs 11,572 crore)

• Net profit down 16% at Rs 3,190.12 crore Vs Rs 3,775.44 crore (Bloomberg estimate: Rs 3,254 crore)

• Ebitda down 11% at Rs 3992.16 crore Vs Rs 4473.04 crore (Bloomberg estimate: Rs 3,943.2 crore)

• Margin at 30.8% Vs 31.6% (Bloomberg estimate: 34.1%)

Ambuja Cements Q1FY22 (Consolidated, QoQ)

• Revenue down 10% at Rs 6,978.24 crore Vs Rs 7,714.81 crore

• Net profit down 7% at Rs 876.71 crore Vs Rs 947.21 crore

• Ebitda down 1% at Rs 1,827.36 crore Vs Rs 1,838.49 crore

• Margin at 26.2% Vs 23.8%

• Approved 1.5 million tonnes cement capacity expansion at the existing grinding unit at Ropar in Punjab

JSW Steel Q1FY22 (Consolidated, QoQ)

• Revenues up 7.3% at Rs 28,902 crore Vs Rs 26,934 crore (Bloomberg estimate: Rs 28,491 crore)

• Net profit up 40.6% at Rs 5,904 crore Vs Rs 4,198 crore (Bloomberg estimate: Rs 4,850 crore)

• Ebitda up 21.7% at Rs 10,274 crore Vs Rs 8,440 crore (Bloomberg estimate: Rs 9,159 crore)

• Margins at 35.5% Vs 31.3%

SBI Cards and Payment Services Q1FY22 (QoQ)

• Revenue up 2% at Rs 2,361.9 crore Vs Rs 2,319.01 crore

• Net profit up 74% at Rs 304.61 crore Vs Rs 175.42 crore

• GNPA at 3.91% Vs 4.99%

• NNPA at 0.88% Vs 1.15%

• New accounts volume at 609K accounts, rises 111% year-on-year

• Spends up 74% YoY to Rs 33,260 crore

• Management overlay provision at Rs 258 crore

• Impairment losses & bad debts expenses at Rs 645 crore Vs Rs 705 crore

• Capital Adequacy Ratio at 26.1%; Tier 1 at 22.6%

Yes Bank Q1FY22 (Standalone)

• Net profit at Rs 206.84 crore Vs Rs 45 crore (YoY) (Bloomberg estimate: Net loss of Rs 678.5 crore)

• NII at Rs 1,402 crore Vs Rs 1,908 crore (YoY) (Bloomberg estimate: Rs 1,238 crore)

• GNPA at 15.6% vs 15.41% (QoQ)

• NNPA at 5.78% vs 5.88% (QoQ)

• Provisions down 88% at Rs 644.43 crore Vs Rs 5,239.59 crore (QoQ)

• CASA Ratio at 27.4% Vs 26.1% (QoQ)

• Total Gross Restructured Loans at Rs 4,976 crore Vs Rs 1,244 crore (QoQ)

• Total advances remained flat year-on-year at Rs 1.63 lakh crore

• Total deposits rose 39% year-on-year to Rs 1.63 lakh crore

• Corporate recoveries and resolution at Rs 1,643 crore

• Slippages at Rs 1,258 crore

• Cash recoveries at Rs 602 crore

• CET-1 ratio improves 40 basis points sequentially to 11.6%

• To sell its entire stake in its wholly-owned subsidiaries Yes Asset Management (India) and Yes Trustee to CPL Finance and Investments

United Spirits Q1FY22 (Consolidated, QoQ)

• Revenue down 20% at Rs 6,168.50 crore Vs Rs 7,678.10 crore

• Net profit down 73% at Rs 55.50 crore Vs Rs 208.70 crore

• Ebitda down 52% at Rs 188.50 crore Vs Rs 396.30 crore

• Margin at 3.1% Vs 5.2%

• Exceptional loss of Rs 45.3 crore Vs Rs 9.5 crore

Jubilant Pharmova Q1FY22 (Consolidated, QoQ)

• Revenue up 3% at Rs 1,634.65 crore Vs Rs 1,579.78 crore

• Net profit down 25% at Rs 160.56 crore Vs Rs 213.90 crore

• Ebitda flat at Rs 375.24 crore Vs Rs 374.62 crore

• Margin at 22.96% Vs 23.71%

• To separate API operations of Jubilant Generics

• Will Jubilant Generics’ API ops with itself

• To expand Spokane capacity by 50% that will come into commercial operations by end CY24

• Expects performance of Generics to be impacted to some extent due to import alert

• Expects capex of Rs 700-800 Crore in FY22

Symphony Q1FY22 (Consolidated, QoQ)

• Revenue down 32% at Rs 230 crore Vs Rs 339 crore

• Net profit down 90% at Rs 6 crore Vs Rs 62 crore

• Ebitda down 88% at Rs 10 crore Vs Rs 84 crore

• Margin 4.35% Vs 24.78%

Stocks To Watch

• JSW Steel: To make strategic investment of Rs 750 crore in JSW Paints in 3-4 tranches between FY22-FY25. In the first tranche of the strategic investment, the company will acquire 1.62 crore shares of JSW Paints for Rs 299 crore. The company will hold 6.88% in JSW Paints on fully diluted basis by Q2.

• IndusInd Bank: Board approved raising up to Rs 30,000 crore capital. Bank will raise funds by issuing debt and equity securities through routes including QIP, American Depository Receipts, Global Depositor Receipts. Bank to seek shareholder approval in upcoming annual general meeting.

• Indian Bank: Declared Lanco Infratech and Basundhara Green Power as fraud accounts. The accounts have been reported to the RBI. Lanco Infratech’s account--which has an outstanding loan of Rs 577.47 crore--was reported for diversion of funds. Basundhara Green Power’s account—which has an outstanding loan of Rs 11.64 crore--was reported for defective title deed or imperfect mortgage.

• NTPC: The 2nd Unit of 800 MW capacity of Darlipali Super Thermal Power Project has completed trial operation and was included in the installed capacity of NTPC. With this, the total installed capacity of NTPC and NTPC group has become 53,450 MW and 66,875 MW respectively.

• Navkar Corporation: Board approved the setting up of Inland Container Depot and Private Freight Terminals near Mundra or Pipavav or Northern Maharashtra subject to receipt of requisite approvals and clearances. The cost of the project is estimated up to Rs 300 crore and it will be completed approximately within 36 months from date of commencement of development.

• Suzlon Energy: Approved allotment of 1.21 crore equity shares on conversion of 1,304 US$ denominated Convertible Bonds due 2032. The bonds were of face value of $320 each, which after capitalising interest at 2.75% per annum accrued on half yearly basis, aggregated to $423,017.

• United Spirits: Approved sale of all equity shares and compulsory convertible preferential shares held by the company in Hip Bar to Prasanna Natarajan, promoter of HipBar, for Rs 52 lakh. The sale is expected to be completed before October 31.

• Nectar Lifesciences: To sell non-core and unproductive assets. Proceeds from sales to be used for repayment of bank loans. The office building at Mumbai falls under the non-core assets. Land and building situated at Narbada Industries in Jammu, Empty Hard Gelatin Capsules Unit in Himachal Pradesh and land and building at Basauli in Punjab have been categorised as unproductive assets.

• Tata Steel BSL: Appointed Pratik Chatterjee as the Chief Financial Officer effective July 23.

• BEML: Approved a plan under which it will transfer parcels of land and buildings to BEML Land Assets. The plan involves demerger of non-core assets from BEML and vesting them in BEML Land Assets. It will also involve reduction and cancellation of share capital of BEML Land Assets. The arrangement is subject to requisite statutory and regulatory approvals and sanction by the respective shareholders.

• Engineers India: Has designated Vartika Shukla, Director (Technical) holding additional charge of Director (Finance), EIL as Chief Financial Officer of the company.

• Earnings: Larsen & Toubro, Axis Bank, Tata Motors, Kotak Mahindra Bank, SBI Life Insurance Company, Vedanta, Alembic Pharmaceuticals, Apollo Pipes, Coromandel International, DLF, Mahindra & Mahindra Financial Services, Glaxosmithkline Pharmaceuticals, Jindal Stainless, Sun Pharma Advanced Research Company, Garden Reach Shipbuilders & Engineers, JTL Infra, Kirloskar Ferrous Industries, Kabra Extrusiontechnik, KPIT Technologies, Navin Fluorine International, Phillips Carbon Black, Orient Bell, Rane Brake Lining, Ramkrishna Forgings, Tata Motors Ltd – DVR, Udaipur Cement Works, Vakrangee, Visaka Industries, VLS Finance, Zensar Technologies

Who’s Meeting Whom

• CRISIL: To meet Yes Securities on July 27, Briarwood Capital, NY on July 28 and Principal Asset Management on July 30.

Trading Tweaks

• Ex-Date AGM: Canara Bank

• Ex-Date Final Dividend: NOCIL, Paushak

• Ex-Date Bonus Issue: Tide Water Oil Company (India)

• Ex-Stock Split: Tide Water Oil Company (India), Evexia Lifecare

• Record Date Interim Dividend: Angel Broking

• Price Band Revised From 20% To 10%: JSW Energy

• Move Out Of Short-Term ASM Framework: Edelweiss Financial Services, Rane Brake Lining, Dolat Investments, Vishal Fabrics

• Move Into ASM Framework: Vishal Fabrics, Mastek, Vimta Labs, JSW Energy, Sangam (India)

• Move Out Of ASM Framework: Matrimony.Com, Paisalo Digital, NCC, SREI Infrastructure Finance, Ramky Infrastructure, Globus Spirits, Shree Renuka Sugars, Tata Teleservices (Maharashtra), Nagarjuna Fertilizers and Chemicals, Sastasundar Ventures

Money Market Update

Indian bonds may remain pressured after the central bank asked underwriters to rescue most of the 10-year sale on Friday and as crude prices continue to hold. A drop in U.S. yields may provide support to local debt.

• NOTE: Primary dealers bought Rs 11,140 crore ($1.5 billion) of bonds out of Rs 14,000 crore of 6.1% 2031 debt offered at Friday’s sale, the RBI said in a statement

• USD/INR down 0.1% at 74.4100 on Friday

  • Implied opening from forwards suggest spot may start trading around 74.42

• Yield on 6.1% 2031 bond up 3bps to 6.17% on Friday; 5.63% 2026 bond yield up 1bp to 5.69%

F&O Cues

• Nifty July futures ended at 15,845, a discount of 11.05 points

• Nifty July futures shed 0.66% and 1,102 shares in Open Interest

• Nifty Bank July futures ended at 35,020, a discount of 14.4 points

• Nifty Bank July futures shed 25.95% and 20,950 shares in Open Interest

• Securities that continue to be on ban list: Cadila Healthcare, Canara Bank, Nalco, Sun TV

• Securities added to the ban list: Vodafone Idea

• Securities removed from the ban list: Indiabull Housing Finance