Buzzing Stocks: RIL, ICICI Bank, RBL Bank, Paytm, Biocon, Kotak Mahindra, others in news

Results on July 24: Tata Steel, HDFC Asset Management Company, Canara Bank, IDBI Bank, TVS Motor Company, PNB Housing Finance, Poonawalla Fincorp, Spandana Sphoorty Financial, Chennai Petroleum Corporation, Craftsman Automation, Gravita India, IIFL Securities, Jammu & Kashmir Bank, JK Paper, Mahindra Logistics, Sharda Cropchem, Shoppers Stop, SRF, and Tamilnad Mercantile Bank will be in focus ahead of declaring their quarterly earnings today.

Reliance Industries: The billionaire Mukesh Ambani-led Reliance reported consolidated net profit at Rs 18,258 crore for the quarter ended June 2023, down 5.9% from a year ago as muted performance in oil-to-chemicals (O2C) partly offset the strong growth in consumer-facing businesses. Higher finance cost and depreciation also weighed on the company’s bottomline. Total revenue in Q1 declined to Rs 2.31 lakh crore from Rs 2.42 lakh crore a year ago as oil-to-chemicals segment sales declined tracking the weakness in crude prices. Jio Platforms’ profit during the quarter at Rs 5,098 crore increased 12.5% on-year, with average revenue per user rising 2.8% YoY to Rs 180.5 per user per month, while Reliance Retail recorded a 18.8% year-on-year growth in profit at Rs 2,448 crore led by growth in grocery, consumer electronics (excluding devices) and fashion and lifestyle.

ICICI Bank: The country’s second largest private sector lender has reported a 39.7% on-year growth in standalone profit at Rs 9,648 crore for quarter ended June FY24 despite elevated provisions & contingencies. Net interest income increased by 38% on-year to Rs 18,227 crore with net interest margin expansion of 77 bps on-year at 4.78%, while loan growth was 18.1% and deposits grew by 17.9% YoY. Asset quality was stable with gross NPA falling 5 bps sequentially to 2.76% and net NPA flat at 0.48% for the quarter.

Kotak Mahindra Bank: The bank has reported standalone profit at Rs 3,452.3 crore for quarter ended June FY24, growing 66.7% over a year-ago period despite rise in provisions and contingencies, while operating profit surged 78% YoY to Rs 4,950 crore. Net interest income grew by 32.7% on-year to Rs 6,233.7 crore, with net interest margin at 5.57%, while advances increased by 19%. Asset quality was largely stable with gross NPA falling 1 basis point sequentially to 1.77%, and net NPA rising 3 bps to 0.40%.

AU Small Finance Bank: The small finance bank has registered a massive 44% on-year growth in profit at Rs 387 crore for quarter ended June FY24 and 39% increase in pre-provision operating profit at Rs 546 crore. Net interest income rose 28% year-on-year to Rs 1,246 crore with net interest margin declining 20 bps to 5.7%, while advances grew by 29% YoY to Rs 63,635 crore and deposits increased by 27% to Rs 69,315 crore. Asset quality weakened with gross NPA rising 10 bps QoQ to 1.76% and net NPA increasing 13 bps sequentially to 0.55% for the quarter.

Yes Bank: The private sector lender has recorded profit at Rs 343 crore for quarter ended June FY24 despite doubled the provisions and contingencies YoY, with operating profit growing 38.8% YoY to Rs 818 crore. Net interest income grew by 8.1% on-year to Rs 2,000 crore, with net interest margin rising 10 bps YoY to 2.5% for the quarter, while advances increased 7.4% on-year to Rs 2 lakh crore and deposits rose 13.5% YoY to Rs 2.19 lakh crore. On the asset quality front, gross NPA fell 20 bps QoQ to 2% and net NPA jumped 20 bps QoQ to 1% for the quarter, while slippages for the quarter at Rs 1,430 crore against Rs 1,196 crore in previous quarter.

RBL Bank: The bank has reported profit at Rs 288 crore for June FY24 quarter, rising 43% over a year-ago period despite increase in provisions and contingencies. Net interest income increased by 21% on-year to Rs 1,246 crore, with net interest margin expansion of 48 bps YoY at 4.84% for the quarter, while loan growth was 21% at Rs 73,087 crore and deposits rose by 8% YoY to Rs 85,636 crore in Q1FY24. Asset quality improved with gross NPA falling 15 bps sequentially to 3.22% and net NPA declining 10 bps QoQ to 1% for the quarter.

Lupin: The pharma major has received tentative approval from the United States Food and Drug Administration (US FDA) under the US President’s Emergency Plan for AIDS Relief (PEPFAR) for its new drug application for Dolutegravir Lamivudine and Tenofovir Alafenamide tablets. This product would be manufactured at Lupin’s Nagpur facility in India.

Aurobindo Pharma: The United States Food and Drug Administration (US FDA) has inspected company’s Unit III, a formulation manufacturing facility in Telangana during July 14-21. The US health regulator issued a Form 483 with 3 observations. The observations are procedural in nature.

Biocon: US Food and Drug Administration (FDA) conducted two GMP inspections at Biocon’s insulins manufacturing facility in Malaysia during July 10-20. The US health regulator issued a Form 483 with 6 observations for drug substance, drug product units and quality control laboratories as well as 2 observations for the delivery devices unit. These observations primarily related to enhancing operational procedures and strengthening training programs. The inspections did not identify any data integrity breaches or systemic non-compliance.

One 97 Communications: The Paytm operator has narrowed its net loss for quarter ended June FY24 to Rs 357 crore, from Rs 644.4 crore in same period last year. Revenue grew by 39% on-year to Rs 2,342 crore led by increase in GMV, merchant subscription revenues, and growth of loans distributed through its platform.

Zomato: Subsidiary Zomato Media Portugal, Unipessoal Lda, has initiated the process of liquidation on July 21. ZM Portugal is not a material subsidiary of the company and the dissolution of ZM Portugal will not affect the revenue of the company.

Vedanta: The Vedanta Resources subsidiary has recorded consolidated profit at Rs 2,640 crore for quarter ended June FY24, falling 40% compared to year-ago period on disappointing operating performance and lower topline. Revenue fell by 12.8% on-year to Rs 33,342 crore due to steep reduction in output commodity prices, partially offset by favourable movement in exchange rate. Sunil Duggal will be retired as WholeTime Director & CEO with effect from July 31, and Arun Misra is appointed as an Additional Director designated as an Executive Director of the company effective August 1.

DLF: The real estate major has reported a 12.2% year-on-year growth in consolidated profit at Rs 528 crore despite weak operating margin, driven by fall in finance cost & other expenses and higher other income. Revenue declined 1.3% on-year to Rs 1,423.2 crore for the quarter, with new sales bookings at Rs 2,040 crore.

Power Finance Corporation: State-owned PFC has signed various MoUs worth Rs 2.37 lakh crore with 20 companies in clean energy space, which is a part of its plan to position itself as the focal funding agency for energy transition.

BEML: The government has appointed Shantanu Roy as Chairman & Managing Director on the board of the company with effect from August 1, in place of Amit Banerjee. Amit Banerjee will be retiring as Chairman & Managing Director with effect from July 31. Currently Shantanu Roy is the Director (Mining & Construction Business) at BEML.

Aarti Drugs: The pharma company has registered a 38% on-year growth in profit at Rs 48 crore for quarter ended June FY24 on healthy operating performance. Revenue for the quarter at Rs 661.7 crore, growing 6% over year-ago period API business rising 9%, formulation segment growing 6% but specialty chemicals division showed 18% decline YoY. On the operating front, EBITDA grew by 26% on-year to Rs 84 crore with margin expansion of 200 bps at 12.8% for the quarter.

SJVN: The company said it has signed an MoU with REC for financing the projects of the company and its subsidiaries and joint ventures to the extent of Rs 50,000 crore. Further it has acquired additional stake in Cross Border Power Transmission Company for Rs 18.6 crore. The company through it wholly owned subsidiary SJVN Green Energy has received Letter of Intent from Punjab State Power Corporation for procurement of 1200 MW solar power.

Cyient DLM: The electronic manufacturing services and solutions provider has reported profit at Rs 5.4 crore for June FY24 quarter, falling 15.2% compared to year-ago period impacted by lower other income. Revenue grew by 27.6% year-on-year to Rs 217.15 crore for the quarter, with order backlog of Rs 2,499.7 crore.

CreditAccess Grameen: The microfinance institution has recorded healthy growth in earnings for the quarter ended June FY24, with profit growing 151.5% year-on-year to Rs 348 crore and net interest income increasing 65.4% on-year to Rs 763.3 crore. The gross loan portfolio grew by 39.7% YoY to rs Rs 21,814 crore for the quarter, while pre-provision operating profit increased by 87.7% on-year to Rs 544 crore in Q1.

CMS Info Systems: The cash management company has reported consolidated profit at Rs 84.3 crore for June FY24 quarter, rising 22% over year-ago period driven by other income as well as growth in topline and operating performance. Revenue from operations grew by 12.85% on-year to Rs 511.6 crore for the quarter.

Dodla Dairy: The dairy company has registered a 40% year-on-year growth in profit at Rs 35 crore for the quarter ended June FY24, with EBITDA increasing 33.9% on-year to Rs 60.3 crore and margin expanding by 104 bps YoY to 7.3% due to lower raw material prices and other expenses. Operating revenues increased by 14.8% on-year to Rs 823.4 crore for the quarter, with domestic business rising 16.1% YoY to Rs 762.8 crore.

Railtel Corporation of India: Quant Mutual Fund has purchased 23 lakh equity shares or 0.71% shareholding in the state-owned telecom infrastructure provider at an average price of Rs 150.84 per share.

Bandhan Bank: Financial services firm BNP Paribas Arbitrage has bought 88.86 lakh equity shares or 0.55% equity stake in the Kolkata-based private sector lender via open market transactions at an average price of Rs 211 per share.

HIL: Saikat Mukhopadhyay has resigned as Chief Financial Officer of the company due to his personal reasons, with effect from July 23.