All You Need To Know Going Into Trade On June 9

Earnings Fineprint: Titan Q4FY20

• Revenue down 5.2% to Rs 4,429 crore
• Ebitda up 32.5% to Rs 603.9 crore
• Ebitda margin widens to 13.6% from 9.8%
• Net profit up 21% to Rs 357 crore
• Higher than expected revenue, lower taxes and ad expenses aid net profit
• IND-AS impact on depreciation and finance costs aid margins
• Watches segment revenue up 4.9% to Rs 557 crore
• Jewellery segment revenue down 5.8% to Rs 3,754 crore
• Eyewear segment revenue down 16.9% to Rs 108 crore
• Gross margin up 280 basis points to 30.1%
• Raw Material costs down 16.3% to Rs 2,881 crore
• Raw Material costs to Revenue at 65% from 73.6%
• All numbers are standalone and compared on a year-on-year basis

Stocks To Watch

• State Bank of India: Reduces MCLR and base rate by 25 and 75 basis points respectively, across various tenors from June 10. One-year MCLR now at 7% and base rate now stands at 7.4%. External benchmark linked lending rate reduced to 6.65% from 7.05% from July 1. Repo-linked lending rate also reduced to 6.25% from 6.65% from June 1.
• Vedanta: The Ministry of Petroleum and Natural Gas has petitioned the Supreme Court against an arbitration award allowing the company along with Videocon Industries to recover $499 million instead of the $198 million capped by the government for the development of Ravva oil and gas fields in Rajasthan, according to updates on the Supreme Court website. THe case is scheduled to be heard next week.
• Affle India: To acquire full control in Appnext. The initial acquisition will be of 66.6% for $17.5 million, with a clear path to acquire the rest of the stake on attainment of mutually agreed growth targets. Appnext is a Singapore-based online platform that recommends content to online users.
• GSK Pharma On Discontinuation Of Zinetac: Zinetac Tablets contributes to less than 5% of the total revenue, as per the total sales in the last three financial years.
• RITES: Gets an order for consultancy services from National Highways & Infrastructure Development Corporation for Rs 55 crore.
• DCB Bank: Board to consider raising capital via issue of securities on June 11.
• PNB Housing Finance: To consider raising funds up to $750 million via external commercial borrowings and non-convertible debentures on June 13.
• Aditya Birla Fashion and Retail: Bloomberg News reports that the company plans to raise Rs 500 crore via commercial papers.
• Coffee Day Enterprises: Kotak Mahindra Investments sold 12.85 lakh shares or 0.61% stake at Rs 14.05 per share.
• Non-Nifty Earnings Today: Bombay Dyeing, eClerx Services, Teamlease Services, Graphite India, Gujarat Pipavav Port, KRBL, MRPL, PSP Projects, Tata Steel Long Products.

Companies On Covid-19 Impact

Larsen & Toubro

• Impact on revenue and net profit for the quarter ending March stood at Rs 1,800 crore and Rs 400 crore respectively.
• 90% of the domestic project sites are working with restricted labour capacity.
• Last mile work like physical inspection, customer clearance etc. could not be completed due to the lockdown.
• Raised long-term debt worth Rs 9,000 crore in April.

PVR

• Approve raising Rs 300 crore via rights issue
• Continue to incur committed cash outflow, including employee salary pay-outs, payments for older working capital and other overheads.
• Cash outflow has and will have a significant negative impact on the profitability and liquidity during the lockdown and thereafter till business returns to normal.
• Not able to run cinemas at normal capacity utilisation levels due to social distancing measures.
• Took relief offered by RBI with respect to moratorium on interest and principal repayment between March-August.
• Invoked force majeure clause in agreements for rental and common area maintenance costs.
• Have liquid assets worth Rs 316 crore as of March 31, 2020.

Gabriel India

• Started receiving orders from OEM's, after market and export customers after re-opening of plants.
• Cash position may be under stress as receivables are delayed.
• Normalcy likely to return as business cycle improves post the lockdown.

Greenpanel Industries

• Operations to normalise by Q3FY21
• Incurred cash loss during the lockdown due to fixed expenses and low capacity utilisation.
• Availed moratorium on some payments due between March and May in order to maintain proper liquidity position.
• Taking steps to avail the second moratorium for some payments falling between June and August.

Godavari Power & Ispat

• Plants have reached near-normal capacity by the third week of May.
• Seeing good demand for iron ore pellets from global markets.
• Prices are returning to pre-Covid-19 period after declining in April and May.
• Finished steel business also saw demand from local markets.
• Cleared repayment of installment of term loans to the extent of 68% of the amount due between March-May 2020 in advance ahead of the lockdown.
• Opted for moratorium for the rest of the period.

Earnings Reported After Market Hours

INOX Leisure Q4FY20

• Revenue down 22.4% to Rs 371.6 crore
• Net loss of Rs 82.2 crore from net profit of Rs 48.1 crore
• Ebitda up 13.9% to Rs 110 crore
• Ebitda margin at 29.6% from 20.2%
• IND AS-116 and change in taxation impacts Ebitda and bottomline
• Impact of deferred tax measurement due to change in tax rate at Rs 69.9 crore
• Lockdown due to Covid-19 impacts topline numbers
• Margins rose on account of invocation of force majeure clause under respective lease agreements
• Added 17 new screens this quarter
• All numbers are consolidated and compared on a year-on-year basis

PVR Q4FY20

• Revenue down 23% to Rs 645.1 crore
• Net loss of 74.5 crore from net profit of Rs 46.9 crore
• Ebitda up 7.4% to Rs 172.6 crore
• Ebitda margin at 26.8% from 19.2%
• IND AS-116 and change in taxation impact Ebitda and bottomline
• Impact of deferred tax measurement due to change in tax rate stood at Rs 31.7 crore
• Admits down 29% to 19.5 lakh
• Movie ticket sales down 27% to Rs 330 crore
• F&B sales down 25% to Rs 174.6 crore
• Added 24 screens during the quarter
• All numbers are consolidated and compared on a year-on-year basis

Chalet Hotels Q4FY20

• Revenue down 15.8% to Rs 227.3 crore
• Net profit up 3.2 times to Rs 42.8 crore
• Ebitda down 35% to Rs 63.2 crore
• Ebitda margin narrows to 27.8% from 36%
• Deferred tax reversal of Rs 38.8 crore aids net profit
• High employee expenses and lower revenue impacts margins
• Occupancy down 2,100 basis points to 61%
• Hotel and rental properties in Bengaluru are fully operational
• Development of two hotels in Mumbai and a completion of a hotel deferred to 2021
• Average daily revenue at Rs 8,890 from Rs 8,852
• RevPAR down 26% to Rs 5,836 crore
• Steady rental revenues in commercial leasing continue
• All numbers are consolidated and compared on a year-on-year basis

Earnings Expectations: Hero MotoCorp Q4FY20

• Revenue seen 22% lower at Rs 6,130 crore
• Net profit seen 22% lower at Rs 569 crore
• Ebitda seen 34% lower at Rs 708 crore
• Ebitda margin may narrow to 11.6% from 13.6%
• All estimates are standalone and compared on a year-on-year basis

Key Factors At Play For Hero MotoCorp:

• Lower volumes to impact topline
• Volumes declined 25% compared to the previous year in the March quarter
• Margins may decline due to higher operating expense
• Realisations likely to be higher due to BS-VI transition
• Demand outlook in rural areas a key factor to watch

Pledged Share Details

• Sun Pharma: Promoter Shanghvi Finance revoked pledge of 57 lakh shares on June 5
• JSPL: Promoters revoked pledge of 1 crore shares between June 3-5
• GATI: Promoter Mahendra Agarwal HUF invoked pledge of 75,000 shares on June 4
• Olectra Greentech: Promoter LP Sashikumar released pledge of 5 lakh shares on June 2
• Max India: Promoter Max Ventures Investment Holdings released pledge of 9.5 lakh shares on June 4

(As Reported On June 8)

Who’s Meeting Whom

• SH Kelkar: To meet Sundaram AMC, Seven Canyon Advisors and other investors between June 9-10
• Symphony: To meet ENAM AMC on June 10
• Heidelberg Cement: To meet ICICI Prudential Mutual Fund on June 9

Trading Tweaks

• Ex-Date For Share Buyback: Tanla Solutions
• Price Band Revised From 20% To 10%: Alphageo, GFL
• Move Into ASM Framework: Orient Green Power, Ind-Swift Laboratories, Cox & Kings, Punj Lloyd, FCS Software Solutions
• Move Into Short-Term ASM Framework: Power Mech Projects, Raymond, CESC Ventures, GFL, Century Extrusions, Zensar Technologies, Prince Pipes And Fittings, Tejas Networks, Religare Enterprises, Indo Count Industries, Astra Microwave Products, Suzlon Energy
• Move Out Of Short-Term ASM Framework: Alok Industries

Insider Trading

• Apollo Tyres: Promoter PTL Enterprises acquired 11.15 lakh shares between June 3-5
• Nesco: Promoter Chandler and Price acquired 7,573 shares on June 5
• Alembic: Promoter Nirayu acquired 39.26 lakh shares on June 5
• Mindtree: Promoter sold 44,500 shares between June 4-6
• SH Kelkar: Promoter Kedar Vaze acquired 15.54 lakh shares on June 5

(As Reported On June 8)

Money Market Update

• The currency ended little changed at 75.54 against the U.S. Dollar as compared to Friday's close of 75.58, snapping a three-day losing streak.

F&O Cues

Index Futures

• Nifty June futures closed at 10,165; discount of 2 points from premium of 3 points
• Nifty June futures add 1.8% and 1.8 lakh shares in Open Interest
• Nifty Bank June futures closed at 21,162; premium of 10 points from discount of 10 points
• Nifty Bank June futures add 3.6% and 52,000 shares in Open Interest
• Nifty Put-Call Ratio at 1.37 from 1.5 across all series
• Enter F&O Ban: Vodafone Idea, Just Dial
• Stocks In F&O Ban: BHEL, NCC, Vodafone Idea, Just Dial

Nifty Weekly Expiry: June 11

• Maximum Open Interest on Call side at 10,500 strike (25.1 lakh shares)
• Maximum Open Interest on Put side at 10,000 strike (22.5 lakh shares)
• Active Options: 10,000 Put (+6.6 lakh shares) and 10,400 Call (+9.6 lakh shares)

Nifty Monthly Expiry: June 25

• Maximum Open Interest on Call side at 11,000 strike (16.9 lakh shares)
• Maximum Open Interest on Put side at 9,500 strike (29.5 lakh shares)