The domestic equity market traded lower by midday on July 23 as caution around global developments and weakness across select heavyweight sectors kept benchmark indices under pressure. The Nifty was hovering above 23,850 level, while the Sensex was trading over 76,350.
Even as the broader market remained subdued, earnings continued to dictate stock-specific action. HEG attracted strong buying after posting a healthy June-quarter performance, while Waaree Renewable Technologies slipped despite reporting robust year-on-year growth as investors reacted to sequential weakness and pressure on margins.
Cipla
Cipla share price declined nearly 2% by midday after the pharmaceutical major reported a sharp fall in its June-quarter earnings as higher expenses offset modest growth in revenue. Consolidated net profit attributable to owners of the parent dropped 39.2% year-on-year to Rs 789.05 crore, while revenue from operations increased 2.3% to Rs 7,119.28 crore from Rs 6,957.47 crore a year earlier.
Dr Reddy’s Laboratories
Dr. Reddy’s Laboratories share price fell more than 3% by midday after opening with losses of nearly 7%, as investors reacted to the pharmaceutical company’s muted June-quarter performance and weakness in its global generics business. Consolidated net profit declined 69% year-on-year to Rs 4,435 crore from Rs 14,178 crore in the corresponding quarter last year, while revenue slipped 5.5% to Rs 8,070.5 crore from Rs 8,545.2 crore. The company also reported a 17% increase in total expenses to Rs 4,316 crore, driven by higher freight and related costs, while margins remained under pressure.
Eternal
Stock price of Eternal gained around 2% by midday after the company reported another strong quarter, supported by rapid expansion across its businesses and continued momentum in food delivery. Consolidated net profit rose to Rs 92 crore from Rs 25 crore in the corresponding quarter last year, while revenue from operations jumped 182% year-on-year to Rs 20,211 crore. Profit before tax climbed 209.09% to Rs 272 crore.
Tanla Platforms
Tanla Platforms share price surged nearly 10% by midday after the cloud communications company reported broad-based growth across revenue, profitability and cash generation for the June quarter. Revenue from operations increased 17.8% year-on-year to Rs 1,226 crore, while gross profit rose 25.1% to Rs 326 crore. EBITDA advanced 22.7% to Rs 201 crore and profit after tax grew 20.1% to Rs 142 crore from Rs 118 crore a year earlier. Earnings per share stood at Rs 10.77, while free cash flow came in at Rs 126 crore, equivalent to 89% of profit after tax.
HEG
HEG share price advanced nearly 6% by midday after the graphite electrode manufacturer reported improved June-quarter earnings and announced progress on its proposed corporate rebranding. Consolidated net profit increased 16% year-on-year to Rs 122 crore, while revenue from operations rose 11% to Rs 681 crore during the quarter. Operating EBITDA stood at Rs 151 crore compared with Rs 150 crore in the corresponding period last year, although EBITDA margin moderated to 22.17% from 24.47%. The company also said the Ministry of Corporate Affairs has reserved the proposed new name, HEG Advanced Materials Limited, for 60 days following its application. According to the company, the proposed name is intended to better align with its focus on advanced manufacturing, specialised capabilities and value-added materials. The combination of steady earnings growth and the planned corporate identity change kept the stock among the stronger performers during the session.
Waaree Renewable Technologies
Waaree Renewable Technologies share price declined nearly 6% by midday despite reporting strong year-on-year growth for the June quarter, as investors focused on the sequential moderation in earnings and contraction in operating margins. Consolidated profit after tax rose 37.7% year-on-year to Rs 118.97 crore from Rs 86.40 crore, while revenue from operations increased 53.23% to Rs 924.25 crore. However, compared with the March quarter, profit fell 23.6% and revenue declined 16.16%, indicating a softer quarter on a sequential basis. Operating EBITDA grew 47.58% year-on-year to Rs 173.48 crore, although it slipped 16.12% from the previous quarter.
Oil-linked Stocks
Oil-linked stocks remained in focus by midday after Brent crude climbed above the US$96 per barrel mark, its highest level in more than six weeks, following renewed geopolitical tensions in West Asia that raised concerns over global supply. The rally in crude came after the United States launched another round of strikes on Iran, while Yemen’s Houthi rebels targeted oil tankers in the Red Sea. US President Donald Trump also warned of further action against Iran following attacks on ships in the Strait of Hormuz, adding to concerns around energy supplies. The sharp rise in crude prices lifted upstream companies such as Oil And Natural Gas Corporation Ltd. and Oil India, as higher oil prices generally improve their earnings by increasing the value realised on crude production.
Gandhar Oil Refinery
Gandhar Oil Refinery share price was locked in the 20% upper circuit by midday after the company reported a sharp improvement in its June-quarter earnings, supported by strong revenue growth, wider gross margin spreads and higher volumes. Consolidated net profit surged 638% year-on-year to Rs 192 crore from Rs 26 crore in the corresponding quarter last year, while revenue from operations jumped 92% to Rs 1,732 crore.
