Buzzing Stocks: Dr Reddy’s Lab, Tech Mahindra, Axis Bank, Nestle, RVNL & others in news today

Results on July 27: Nestle India, ACC, Bajaj Finserv, Indian Hotels, Indian Bank, Indus Towers, Ajanta Pharma, Arvind, Astec Lifesciences, Bharat Electronics, Birlasoft, Coromandel International, Home First Finance Company, Indian Energy Exchange, Intellect Design Arena, JK Lakshmi Cement, Dr Lal PathLabs, Laurus Labs, Macrotech Developers, Nippon Life India Asset Management, RailTel Corporation of India, Sona BLW Precision Forgings, Sundram Fasteners, Symphony, Trident, Tata Teleservices, and Ujjivan Small Finance Bank will be in focus ahead of quarterly earnings on July 27.

Axis Bank: The private sector lender has recorded profit lower than analysts’ estimates at Rs 5,797.1 crore for quarter ended June FY24, rising 40.5% year-on-year despite sharp spike in provisions, driven by surge in other income and pre-provision operating profit. Net interest income grew by 27.4% to Rs 11,959 crore compared to year-ago period, with net interest margin expanding 50 bps YoY to 4.1%, while loan growth was at 22% YoY and deposits growth stood at 17% YoY On the asset quality front, gross non-performing assets dropped 6 bps sequentially to 1.96%, but net NPA increased 2 bps QoQ to 0.41%

Dr Reddy’s Laboratories: The pharma major has registered an 18% on-year growth in consolidated profit at Rs 1,402.5 crore for June FY24 quarter despite drop in operating margin. Revenue from operations grew by 29% YoY to Rs 6,738.4 crore with double-digit healthy growth in North America (up 79% YoY), Europe (up 22%) and Emerging Markets (up 28%). Operating profit margin dropped to 31.7% in the quarter ended June FY24, from 34.1% in year-ago period, with 14% YoY rise in selling, general & administrative expenses, and 15% increase in R&D expenses.

Jio Financial Services: Jio Financial Services and BlackRock announced an agreement to create “Jio BlackRock,” a 50:50 joint venture. Together, they aim to provide tech-enabled and affordable investment solutions to Indian investors. Each partner plans an initial investment of $150 million. The joint venture will commence operations once it receives regulatory approvals and will have its independent management team.

Tech Mahindra: The IT services provider has started off the financial year 2023-24 on a disappointing note as the profit tanked 38% sequentially to Rs 692.5 crore with Rohit Anand, Chief Financial Officer saying the quarter was a challenging one as revenue growth faced strong headwinds and that had an impact on profitability. Revenue fell 4% QoQ to Rs 13,159 crore. Revenue in dollar terms dropped 4% QoQ to $1,601 million for the quarter, while revenue in constant currency terms declined 4.2%, missing analysts estimates. New deal wins during the quarter stood at $359 million, which was lower compared to $592 million in previous quarter.

Netweb Technologies India: The listing of equity shares on the bourses will take place on July 27. The final offer price has been fixed at Rs 500 per share.

Tata Consumer Products: The FMCG company has clocked 22% on-year growth in consolidated profit at Rs 338 crore for the quarter ended June FY24, with strong growth in the India branded business and improved performance in international and non-branded business. Revenue from operations grew by 12.5% year-on-year to Rs 3,741.2 crore mainly driven by strong growth of 16% in India business, 3% (constant currency) in international business and 5% in non-branded business. Consolidated EBIDTA increased by 19% to Rs 547 crore compared to year-ago period.

Lemon Tree Hotels: The hotel chain has signed a License Agreement for an 80-room property in Zirakpur, Punjab. The hotel is expected to be operational by Q2 of FY 2027. Carnation Hotels, a wholly owned subsidiary and the hotel management arm of the company will be operating this hotel.

RBL Bank: Mahindra & Mahindra told CNBC-TV18 that they acquired 3.53% stake in RBL Bank for Rs 417 crore, and may consider raising stake in RBL further, but won’t exceed 9.99%. The acquisition price was Rs 197 per share.

Poonawalla Fincorp: The non-banking finance company announced consummation of its controlling stake sale in its housing finance subsidiary Poonawalla Housing Finance (PHFL) to Perseus SG Pte Ltd, an entity affiliated to TPG Global LLC. With this stake sale, PHFL has ceased to be a subsidiary of PFL and Perseus SG Pte Ltd now holds a controlling equity stake in PHFL. PFL received a post-tax consideration of Rs 3,004 crore for its stake sale.

Rail Vikas Nigam: The Government of India is going to sell up to 7.09 crore equity shares (3.4%) of Rail Vikas Nigam, with an option to additionally sell 4.08 crore shares (1.96%) via offer for sale. The offer for sale will take place on July 27 for non-retail investors and July 28 for retail investors. The floor price has been fixed at Rs 119 per share.

Marico: The FMCG company has entered into definitive agreements to acquire upto 58% stake in Satiya Nutraceuticals. Satiya owns the brand – the Plant Fix – Plix – in health and wellness segment. As part of the transaction, the company has acquired 32.75% stake in Satiya Nutraceuticals and requisite majority control over its board composition/ total voting rights on July 26, and accordingly it has become a subsidiary of the company. The acquisition of remaining stake of 25.25% will be completed in tranches by May 2025. The acquisition cost is Rs 369.01 crore.

Colgate Palmolive: The oral care company has recorded a 10.6% year-on-year growth in revenue from operations at Rs 1,323.67 crore for quarter ended June FY23, with domestic sales growth at 12.3% and toothpaste sales rising double-digit. Profit grew by 30.5% to Rs 273.7 crore compared to year-ago period, backed by strong topline and operating performance.

Cipla: GoApptiv, an associate company of pharma company, has incorporated Pactiv Healthcare, a wholly-owned subsidiary company with effect from July 26. The objective is to handle the manufacturing, development, production, purchase, and sale of pharmaceutical, healthcare and wellness products to significantly benefit the rural markets.

Jindal Stainless: The stainless steel manufacturer has recorded consolidated profit at Rs 745.81 crore for the quarter ended June FY24, growing nearly 50% over a year-ago period, backed by strong topline and operating growth. Revenue from operations grew by 25.4% on-year to Rs 10,184 crore during the quarter, while EBITDA surged 34% to Rs 1,192 crore compared to corresponding period last fiscal. On the standalone basis, sales volume for the quarter stood at 5.48 lakh metric tonnes (MT), up 54% YoY, buoyed by macro-economic factors, notwithstanding the global slump in sales and market volatility.

REC: The public sector company has announced consolidated profit at Rs 2,968 crore for the quarter ended June FY24, growing 20.9% over year-ago period. Revenue from operations for the quarter stood at Rs 11,087.6 crore, increasing by 16.7% over corresponding period last fiscal. The company has declared an interim dividend of Rs 3 per share for FY24, and has received board approval for raising of funds up to Rs 1.05 lakh crore through private placement of NCDs, and the board sought approval of shareholders for increasing the overall borrowing limit of the company from Rs 4.5 lakh crore to Rs 6 lakh crore.

Aditya Birla Sun Life AMC: The asset management company has registered a 79% year-on-year growth in profit at Rs 184.6 crore for June FY24 quarter, driven by other income and lower depreciation. Revenue from operations during the quarter stood at Rs 311.2 crore, increasing 2% over a year-ago period.

Oracle Financial Services Software: The Oracle subsidiary has reported profit at Rs 501 crore for the quarter ended June FY24, rising 2% over corresponding period last fiscal. Revenue grew by 4% YoY to Rs 1,462 crore during the quarter, with products business rising 4% to Rs 1,318 crore and services business showing a 6% growth at Rs 145 crore, while operating income for the quarter was Rs 606 crore, down 4% YoY.

HFCL: The telecommunication equipment and optical fiber cables maker has reported a 33% year-on-year growth in consolidated profit at Rs 68.09 crore for quarter ended June FY24, backed by healthy operating performance. However, revenue fell by 5.3% on-year to Rs 995.2 crore during the quarter. The order book stood at Rs 6,584.71 crore as of June FY24.

Schaeffler India: The industrial and automotive supplier has clocked a 5.1% year-on-year growth in profit at Rs 237.3 crore for quarter ended June 2023, with net profit margin expanding 10 bps YoY to 13% driven by volume gains and input cost stability. Revenue from operations increased 4.6% to Rs 1,829 crore compared to year-ago period.

Ion Exchange: The water and environment management solution company has recorded 18.9% year-on-year growth in profit a Rs 33.32 crore for quarter ended June FY24, backed by topline and operating performance. Revenue grew by 25.3% to Rs 479.2 crore compared to corresponding period last fiscal.

Sasken Technologies: The technology company has reported a massive 68.7% year-on-year growth in profit at Rs 25.7 crore for the quarter ended June FY24, backed by other income. However, revenue from operations fell 2.8% to Rs 98.5 crore compared to year-ago period.