Indian benchmark indices are likely to open on a muted note on Monday, hinted SGX Nifty. On the Singapore Exchange, Nifty futures were trading lower at 17813. In the previous session, BSE Sensex rallied 910 pts or 1.52% to 60,842, while NSE Nifty 50 jumped 1.4% to 17,854. “We expect volatility to remain high this week as we have important events and data lined up. First, participants will be eyeing the outcome of the RBI policy meeting scheduled on 8 Feb. On the economy front, IIP data will be unveiled on 10 Feb. On the earnings front, major corporates like Tata Steel, Adani Ports, Ambuja Cement, Bharti Airtel, will announce their numbers,” said Ajit Mishra, VP – Technical Research, Religare Broking.
Stocks in focus on 6 February, Monday
Q3 Results today: Tata Steel, Adani Transmission, AGS Transact Technologies, Balaji Amines, Easy Trip Planners, Infibeam Avenues, JK Paper, Kolte-Patil Developers, LIC Housing Finance, Monte Carlo Fashions, Muthoot Finance, Nuvoco Vistas Corporation, OnMobile Global, Shankara Building Products, SJVN, Tejas Networks, Unichem Laboratories, and Varun Beverages stocks will be in focus ahead of their quarterly earnings.
State Bank of India: The country’s largest lender SBI recorded 68.5% on-year growth in standalone profit at Rs 14,205 crore for the December FY23 quarter, with net interest income growing 24% to Rs 38,069 crore for the quarter, beating street estimates. Fall in provisions, higher other income & operating income boosted profitability. Loan growth was 17.6% and deposits grew by 9.5% on-year for the quarter. Asset quality improved on a sequential basis. SBI’s exposure to Adani group in absolute terms is close to Rs 27,000 crore.
ITC: The cigarette-to-FMCG-to-hotel major has registered a 21% on-year growth in profit at Rs 5,031 crore for the quarter ended December FY23 despite tepid revenue growth, supported by healthy operating performance. Revenue for the quarter at Rs 16,226 crore grew by 2.3% on-year, aided by cigarettes, FMCG, hotels and paper segments, but agribusiness tanked 37% on-year to Rs 3,124 crore. At the operating level, EBITDA jumped 22% to Rs 6,223 crore with the margin expanding by 620 bps compared to the year-ago period.
IndiGo: InterGlobe Aviation, the low-cost airline operator recorded an 11-fold on-year increase in profit at Rs 1,422.6 crore as revenue for the quarter at Rs 14,933 crore increased by 60.7% and EBITDAR at Rs 3,399 crore grew by 70.3% on-year. EBITDAR margin expanded by 130 bps on-year. The margin was hit by higher fuel costs. Profit excluding foreign exchange loss (Rs 586.5 crore) came in at Rs 2,009.1 crore for the quarter, rising 16-fold on-year. Passenger traffic increased by 25.8% to 2.23 crore and yield improved by 21.9% to Rs 5.38 and load factor improved by 5.4 points to 85.1%.
Vodafone Idea: The Government of India has directed the telecom operator to convert AGR dues of Rs 16,133 crore into equity shares. The company has been directed by the Ministry of Communications to issue 1,613.31 crore equity shares of the face value of Rs 10 each at an issue price of Rs 10 each. The Government passed the said order for the conversion of AGR dues into shares on 3 February.
IDFC First Bank: IDFC, promoter of IDFC First Bank, will infuse Rs 2,196 crore in the lender through an equity share issue on a preferential basis. The bank will issue 378 million shares to the IDFC Financial Holding Company, a subsidiary of IDFC, at Rs 58.18 apiece. “The board of directors of the bank has approved to issue 378 million shares on a preferential basis, to IDFC Financial Holding Company Limited, wholly-owned subsidiary of IDFC Limited, at Rs 58.18 per share amounting to Rs 2,196 crore,” the bank said in an exchange filing.
Tata Power: The power generation and distribution company has reported a 91% on-year growth in consolidated profit at Rs 1,052 crore for the three-month period ended December FY23 led by better performance across all businesses. Consolidated revenue grew by 30% on-year to Rs 14,339 crore for the quarter driven by capacity addition in renewables, higher generation in thermal plants and higher sales in distribution companies. EBITDA for the quarter at Rs 2,818 crore surged by 53% on-year on capacity addition in renewables and better performance across all businesses.
Marico: The FMCG company registered a 5.04% on-year growth in consolidated profit at Rs 333 crore for the October-December period of FY23, led by higher operating margin performance and other income. Revenue for the quarter at Rs 2,470 crore grew by 2.6% compared to the year-ago period with India’s business rising 1.9% on-year to Rs 1,851 crore and the international segment growing 5% to Rs 619 crore. At the operating level, EBITDA increased by 5.8% on-year to Rs 456 crore and the margin expanded by 56 bps on-year to 18.46% on lower input costs.
Paytm: The digital payments platform Paytm’s operator One 97 Communications reported a consolidated loss of Rs 392 crore for the quarter ended December FY23, falling from a loss of Rs 778.5 crore in the year-ago period and a loss of Rs 571.5 crore in the previous quarter. Consolidated revenue from operations at Rs 2,062 crore for the quarter grew by 42% on-year. Merchants paying subscriptions for payment devices stood at 5.8 million during the quarter, up by 3.8 million on-year, while in Q3FY2023, the number of loans disbursed through the platform grew to 10.5 million, up 137% on-year, and the value of loans disbursed grew to Rs 9,958 crore, a growth of 357% on-year.