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Wednesday, 18 April 2018

Nifty holds 10,500 mark; Axis Bank; HDFC twins stocks down

Bombay Stock Exchange BuildingBenchmark equity indices erased morning gains in afternoon trade led by banking and financials stocks after RBI circular.

At 3:07 PM, the BSE Sensex was trading at 34,293, down 102 points, while the Nifty50 index was trading at 10,51
3, down 36 points.

The BSE Midcap and the BSE Smallcap indices were down by 0.23% and 0.46%, respectively.

FMCG stocks gained. Dabur India shares climbed as much as 2.8% to Rs353.6, their highest since February 2.

Godrej Consumer Products (up 3.28%), Dabur India (up 2.53%), Britannia Industries (up 0.28%), GlaxoSmithkline Consumer Healthcare (up 0.42%), Hindustan Unilever (up 0.3%), Marico (up 0.03%), Nestle India (up 0.55%), Tata Global Beverages (up 0.68%), Procter & Gamble Hygiene and Health Care (up 0.04%) and Bajaj Corp (up 1.49%) rose. Jyothy Laboratories (down 0.62%) and Colgate-Palmolive (India) (down 0.2%) fell.

Amtek Auto will sell all equity and preference shares held in its Joint Venture (JV) SMI Amtek Crankshafts Private Limited (SMIAC) to Nippon Steel and Sumitomo Metal Corporation (NSSMC). SMIAC will cease to be a JV of AAL post the stake sale. The stock is trading lower by 3%.

Shares of ICICI Bank erased early gains in the morning trade following a block deal where about 20 lakh shares changed hands.

Volatility index India VIX was down 1.81% at 14.7875.

ITC (+3.8%), Zee (+2.3%), Wipro (+1.7%), UltraTech (+1.7%) and Vedanta (+1.6%) were the top gainers on the NSE.

HPCL (-2.5%), HCL Tech (-1.4%), Titan (-1.3%), Tech Mahindra (-1%) and BPCL (-1%) were the top losers on the NSE.

Out of 2,043 stocks traded on the NSE, 894 advanced, 781 declined and 368 remained unchanged today.

A total of 39 stocks registered a fresh 52-week high in trade today, while 26 stocks touched a new 52-week low on the NSE.

The rupee weakened by 14 paise, nearing a fresh seven-month low of 65.78 against the US dollar at the interbank forex market today on fresh demand for the greenback from importers and banks.

Thursday, 5 April 2018

Agencies to probe use of shell companies for Rs 64 crore Videocon loan



India’s top investigating agencies had shared information among themselves last year on aspects that may require to be probed after getting a complaint that a loan given by ICICI Bank to the VideoconBSE 3.65 % Group was a part of a quid pro quo arrangement. 

Chief among the concerns of the agencies was the use of shell companies, if any, in the disbursement of a Rs 64 crore loan by Venugopal Dhoot of Videocon to NuPower Renewables Private Ltd., a company jointly promoted by Dhoot and Deepak Kochhar, the husband of ICICI Bank managing director Chanda Kochhar. 

The correspondence among the agencies indicated probing the angle of money laundering. 

Dhoot floated NuPower as an equal venture with Kochhar in 2008, lent Rs 64 crore to the company and eventually transferred his stake to Kochhar. The transfer of the holdings, which took place six months after the Videocon Group got a loan of Rs 3,250 crore from ICICI Bank, “intrigued” the sleuths. 
The fact that the `64 crore loan was never returned also raised questions with the agencies. 


Top sources in the agencies told ET that the “possible areas of probe” were determined and shared among themselves. It is reliably learnt that the balance sheets of NuPower have been scrutinised. 
NuPower has come under the scanner of the Income Tax Department. A notice has been issued to the company under Section 131 (power regarding discovery and production of evidence) of the Income Tax Act, 1961. 

The Central Bureau of Investigation began a preliminary enquiry two months ago – based on “source information” —into dealings between Kochhar, the Videocon Group and “unknown bank officials.” 

Both Kochhar and Dhoot will shortly be called for examination by the CBI, which has recorded statements of ICICI Bank officials involved in the disbursement of the loan to the Videocon Group. 


Monday, 2 April 2018

SEBI looks to overhaul corporate governance at public sector enterprises

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The regulator has recommended measures to government to ensure independence of PSEs from the administrative ministry and create an autonomous environment.

Unhappy with governance standards in public sector enterprises (PSEs), the Securities and Exchanges Board of India (SEBI) has recommended seven measures to improve their functioning.
The measures include ensuring the independence of the PSE from the administrative ministry and creating an autonomous environment. SEBI’s board has agreed to send a copy of the recommendations to the government for necessary action.
The measures were presented to the board on March 28.
"All listed entities, government or private, to be at par on governance standard. So, all listed PSEs should be compliant with LODR [Listing Obligations and Disclosure Requirements],” the regulator said in its presentation. Under LODR, stock exchanges need to be informed of every price sensitive information, as and when it happens.
“If the government and PSEs management create such environment then certainly [it will] enhance the value of the national asset. However, we should make a timeframe for creating such an environment,” a source close to the development told Moneycontrol.
SEBI’s board has referred the recommendations to the government for feedback and necessary action.
 Independent boards
SEBI’s recommendations are focused on the boards of PSEs.
“In the past, we have seen politicians taking seats on the boards of public sector enterprises,” the source said.
SEBI recommended that the government consolidate its stake in listed public sector enterprises under holding entity structure by April 2020 along with ensuring that PSEs have an independent board with diversified skill sets.
Earlier, in compliance with the minimum public shareholding of 25 percent, PSEs were given an additional year’s time, which will end in August 2018

Friday, 30 March 2018

Birlas convert Rs 2,800 crore AB Group retail bonds into equity

http://www.adityabirla.com/home
Aditya Birla Group chairman Kumar Mangalam Birla and his family have converted bonds worth more than Rs 2,800 crore into equity for the group’s food and grocery business, reducing debt that has consistently weighed down profitability. 

"Aditya Birla Retail (ABRL) passed a board resolution to issue equity shares worth Rs 2,837 crore to group firms Kanishtha Finance & Investment and RKN Retail, promoted by Birla, his family and some closely held companies of the family," ABRL said in a filing with the Registrar of Companies. The board of the retailing business had met on March 23 to give its approval. The fund infusion will involve allotment of 907 million fully paid up equity shares of Rs 10 each to Kanishtha Finance  .. 


ABRL, the operator of More supermarkets, reported a 20% increase in FY17 sales to Rs 4,194 crore, with net loss narrowing to Rs 644 crore. However, the company had debt of about Rs 6,573 crore on its books and financing costs amounted to Rs 471 crore for the year. Accumulated debt was mainly due to the acquisition of Trinethra and Fabmall a decade ago, and Jubilant’s Total Super Store two years ago. 

Read more details : http://tradenivesh.com/ 

Rising US output, Opec cuts to keep crude rangebound

WTI crude oil prices posted a biggest weekly gain in eight months, as they hit a 2-month high on surging geopolitical risk in the Middle East and prospects of an extension of Opec-led production cut into 2019. 

Rising concerns that sanction will be imposed on Iran after Donald Trump warned that the US would pull out from the nuclear deal, further supported the prices. Intensifying global trade war and rising US production may keep prices in the $58-66.8 range for some more time. 



Concerns over looming trade dispute between the United States and China that weighed on global markets may impact crude oil prices too due to risk-off sentiment. Last week, Industrial Commodities fell after the US President signed a memorandum that could impose tariffs on up to $60 billion of imports from China. If selloff in the equities and industrial commodities widens this week, certainly it will also hamper crude oil prices. 

Record US production and its possibility of surpassing t .. 

Read more at:

Thursday, 29 March 2018

Medanta hospital refunds Rs 15.68 lakh charged to patient's family after health minister intervenes


In a new twist to the case of Medanta hospital in Gurugram overcharging a patient, the family of the 7-year old child Sourya Pratap, who died of dengue, withdrew the complaint and agreed not to pursue the case further after the hospital agreed refund the entire amount of Rs 15.68 lakh charged for the patient’s treatment.
The settlement was facilitated by the Union health minister JP Nadda.
In a letter written to Naresh Trehan, the Chairman and Managing Director of Medanta, Nadda's additional private secretary Om Prakaash Sharma on March 1 requested Medanta to refund the amount, on the grounds that the family is poor and has lost a child.
for more updates contacts 
+919039002130,

Thursday, 15 February 2018

PC Jeweller says co does not use letters of credit in business transactions | Trade Nivesh Investment

PC Jeweller Ltd today clarify that it has make timely disclosures of all events, information etc. that have a bearing on the operation/performance of the company, which includes price sensitive information etc.
“The company is not having any such information, which requires disclosure as aforesaid. We are not aware of the reason of sudden decrease in price of equity shares of the company today," the company said in the BSE filing.
Further, the company said in the filing, “However, we would like to assure our investors, shareholders, etc., that the fundamentals of the company remain strong and it continues to move ahead as per its laid down business plans."
It said it does not use letters of credit or letters of undertaking while carrying out its business operations.
The company clarified that it does not use the instruments of LUT/LoC etc. in its business transactions. The company does not have any international transactions in diamonds, it procures all its diamonds from local markets on cash basis only, it added. 
Today, shares of PC Jeweller ended at Rs356.4, down by Rs20 or 5.31% from its previous closing of Rs376.4 on the BSE. The scrip opened at Rs379.4 and touched a high and low of Rs380 and Rs303, respectively.

Wednesday, 14 February 2018

Markets set to open gap up | Trade Nivesh Investment.


SGX Nifty indicating a positive opening for the Indian markets.

Indian markets are expected to trade with a positive bias in today’s session taking cues from global markets.
Traders would also keep an eye out on the WPI inflation numbers and Balance of trade figure for the month of Jan which would be released later in the day. 
Global markets
Major Asian markets are trading in the green, at present Shanghai Composite is trading 0.45% higher while Hang Sang is trading up 1.30%. Nikkei is trading up 1.38%.
US Markets: Wall Street witnessed a sharp recovery in yesterday’s session after initially trading lower.
The Dow jumped 1% to 24,893.49, the NASDAQ rose 1.9% to 7,143.62 and the S&P 500 surged up 1.3% to close at 2,698.63.
The rally in the markets was mainly led by the shares of Facebook and Apple.
European markets closed in the green yesterday with FTSE up 0.64%, CAX was up 1.08% and DAX closed 1.16% higher.
In Monday’s session FII’s sold 728 crores stock in the cash market whereas DII’s sold 152 crores worth of stock.
In the derivative market, FII’s bought 1039 crores of index futures and bought 1733 crores worth of Index options.
In the stock futures segment, FII’s bought 98 crores worth of stock futures and bought 57 crores stock options.


Nifty Highest Open Interest:

Call: 11100 / Put: 10500

Bank Nifty Highest Open interest: (15th Feb 2018 Expiry)
Call: 26000 / Put: 25000

Stocks in Ban Period: BALRAMCHIN, DISHTV, GMRINFRA, HDIL, JPASSOCIAT, ORIENTBANK

PNB spots Rs 11,300 cr fraud at Mumbai branch; stock dips 10% | Trade Nivesh Investment


Punjab National Bank Wednesday said the bank has detected fraud transactions totaling over Rs 11,300 crore at its Mumbai branch. This led to the share price tanking 9.8 percent.
The fraudulent transaction amount is close to 1/3rd of its total market capitalisation of Rs 36,000 crore, or 2.55 percent of total loan book of Rs 4.5 lakh crore (as of December 2017). It is also 8 times of bank's FY17 net profit of Rs 1,324 crore.
With the sharp fall, investors lost Rs 3,844 crore of wealth on single day.
"The bank has detected some fraudulent and unauthorised transactions (messages) in one of its branch in Mumbai for the benefit of a few select account holders with their apparent connivance. Based on these transactions other banks appear to have advanced money to these customers abroad," the third largest public sector lender said in its BSE filing.
It further said in the bank, these transactions are contingent in nature and liability arising out of these on the bank shall be decided based on the law and genuineness of underlying transactions.
The quantum of transactions is USD 1,771.69 million (approximately).
"The matter was already referred to law enforcement agencies to examine and book the culprits as per law of the land. The bank is committed to clean and transparent banking," PNB said.
Sources told PTI that the CBI has received two complaints from PNB against billionaire jewellery designer Nirav Modi and a jewellery company about fraudulent transactions.
Modi is already facing a CBI probe on a complaint from the Punjab National Bank, sources said.
Meanwhile, the bank, on February 6, reported lower than expected earnings for December quarter but asset quality improved sequentially.
Profit growth of 11 percent at Rs 230.11 crore and net interest income growth of 7 percent at Rs 3,989 crore year-on-year were below CNBC-TV18 poll of Rs 558.1 crore and Rs 4,122.9 crore, respectively.
The bank showed a good improvement on asset quality front as gross non-performing assets were lower at 12.11 percent compared to 13.31 percent in previous quarter. Net NPAs were also lower at 7.55 percent from 8.44 percent on sequential basis.
But provisions for bad loans remained at elevated levels, surging 80 percent quarter-on-quarter and 74 percent year-on-year to Rs 4,466.7 crore in Q3.
Provision coverage ratio at 60.78 percent in Q3 improved from 59.20 percent in previous quarter.
The stock rallied nearly 7 percent in last one year while PSU Bank gained 3 percent and Nifty Bank rallied 27 percent.
(1 US dollar - 64.15)

Tuesday, 13 February 2018

Top stocks in focus today: Bank stocks, Britannia, Idea Cellular, NBCC, Fortis Healthcare

Shares of banks will be in focus after the Reserve Bank of India (RBI) late Monday brought out new rules for recognition of stressed assets by commercial banks and revoked all old rules.
Britannia plans to launch ~50 new products under it's existing as well as new categories by March 2020, as per media sources.
Idea Cellular raises Rs3,250cr through preferential allotment to promoters.
Bank of Baroda to exit South Africa amid probe over Gupta ties.
Mangalam Cement to set up an 11 MW waste heat recovery plant at Rajasthan.
Indoco Remedies’ Goa plant gets 8 observations under form 483 from USFDA.
CG Powerto sell Hungary business (excluding switchgear business) for 38 million euros. 
IOL Chemicals and Pharma starts production of anti-diabetes drug Metformin
Precision Camshafts receives multiple orders worth Rs275cr.
JSW Steel commences mining operations in Tunga with a capacity of 0.3 MTPA.
Vascon Engineers approved raising of funds up to Rs100cr.
Fortis Healthcare signs agreement to buy entire assets of RHT Health Trust
Apollo Tyres to acquire up to 40% in KT Telematic Solutions Private Limited for Rs9cr.
NBCC to seek shareholder approval for a stock split from Rs2 to Re 1.
Oriental Bank of Commerce approved preferential allotment to GoI worth Rs3,571cr.
Punjab & Sind Bank approved preferential allotment worth Rs785cr to GoI and Rs1,215cr via FPO/Rights/QIP etc.

Monday, 12 February 2018

Nifty reclaims 10,500, as global equities bounce back | Trade Nivesh investment

Markets opened gap up and witnessed a sideways consolidation through the day before witnessing further buying interest in the final hour of trade, helping Nifty close above the physiological level of 10,500. All the major indices managed to record nearly 1% gains with the Nifty Midcap Index being the star performer, gaining 1.36%. HDFC, HDFC Bank, and Reliance were the major contributors to the index in today’s trade. Market breadth ended in the favor of advance with the advance-decline ratio closing at 4:1x.
Nifty February futures witnessed a surge in open interest to the tune of ~14.96 lakh shares, while Bank Nifty Futures witnessed a marginal surge in open interest to the tune of 12,000 shares, mainly long positions. 
Tracking the Nifty options, 10500PE and 10400PE saw an addition in open interest to the tune of ~5.4 lakh shares and ~4.3 lakh shares, respectively, indicating fresh short positions, while at the money call options witnessed a marginal decline in open interest.

India VIX index closed 7% lower ending at 17.88.

Sunday, 11 February 2018

A positive opening likely after a strong rebound in US markets | Trade Nivesh Investment

SGX Nifty indicate a positive opening for the Indian markets.
Markets are expected to trade range bound in today’s session with a positive bias.
Bank of India, Gail, Indian Bank and NHPC are some of the large-cap companies set to announce their Q3 results today.
Global markets
Major Asian markets are trading in the green, at present Shanghai Composite is trading 0.2 % higher, while Hang Sang is trading up 0.32%. Nikkei is shut in today’s trade.
US Markets: Wall Street witnessed heavy volatility in Friday’s session ending the session firmly in the green.
The Dow surged up 1.4% to 24,190.90, Nasdaq jumped 1.4% to 6,874.49 and the S&P 500 shot up 1.5% to 2,619.55.
The positive spike was mainly due to bargain hunting after the indices had reached a two month low due to steep corrections in the previous session.
European markets closed in the red on Friday with FTSE down 1.1%, CAX was down 1.42% and DAX closed 1.26% lower.

Thursday, 8 February 2018

Closing Bell: Sensex gains 330 pts, Nifty fails to hold 10,600; pharma, cement stocks rally

Benchmark indices closed sharply higher, though were off day's highs.
The 30-share BSE Sensex was up 330.45 points or 0.97 percent at 34,413.16, and the 50-share NSE Nifty gained 100.20 points or 0.96 percent at 10,576.90.
About 2,158 shares advanced against 639 declining shares on the BSE.
Banking & financials, technology stocks and Reliance Industries led the market higher while cement and pharma stocks were strong in trade.
3.28 pm Buzzing: Page Industries shares gained 8 percent as profit increased 32.6 percent year-on-year to Rs 83.4 crore and revenue grew by 17.6 percent to Rs 621 crore in Q3FY18.
Operating profit jumped 30 percent to Rs 128.9 crore and margin expanded by 220 basis points to 21 percent compared to year-ago.
3:25 pm Earnings: Muthoot Finance shares rallied 7 percent as net profit in Q3 grew by 59.3 percent to Rs 463.6 crore from Rs 291.1 crore YoY.
Revenue from operations during the quarter rose by 15.9 percent to Rs 1,554 crore from Rs 1,341 crore YoY.
The company's board of directors approved dividend of Rs 10 per share.
West Coast Paper gained nearly 10 percent as profit in Q3 increased 14.8 percent YoY to Rs Rs 43 crore, but revenue declined 7 percent to Rs 408.6 crore and operating income fell 16.2 percent to Rs 73 crore with margin contraction of 190 basis points at 17.9 percent.
3:22 pm Recall of drug bottles: Dr Reddy's Laboratories has initiated voluntary recall of over 80,000 bottles of its drug Atorvastatin Calcium Tablets 10mg, 20mg and 40mg from the US market due to quality concerns.
Atorvastatin is a drug that blocks the production of cholesterol and reduces its level in the blood.

Wednesday, 7 February 2018

Nifty extends gains, Sensex rises 250 pts; Infosys, HDFC twins lead | Trade Nivesh Investment

Benchmark indices extended gains in morning driven by index heavyweights like Infosys, HDFC twins and Reliance Industries.
The 30-share BSE Sensex was up 253.58 points or 0.74 percent at 34,336.29 and the 50-share NSE Nifty rose 71.60 points to 10,548.30.
The broader markets also participated in the rally, with the Nifty Midcap rising 0.77 percent. About four shares advanced for every share falling on the .BSE.
Technical Outlook: Rohit Singre of Bonanza Portfolio said, "If Nifty manages to hold 10,270 levels, we may expect the index to consolidate. The immediate and strong hurdle for Nifty is placed around 10620, and any close above the same will lead to strong short covering in the index."
is placed at 10000 PE followed by at 10500 PE so 10,000 will act as a strong support in the month of February and on the higher side 11500 CE has highest open interest followed by 11000 CE.
He expects volatility to extend further and one need to trade with strict stop losses as it is a buy on the dip and sell on rising market for near term.
Currently, the index has strong resistance at 10620. Traders can initiate shorts on every rise with keeping a stop loss above 10620 and immediate support formed near 10270 so these level can be used as buying stop loss on the downside.
Gati fell 3 percent after net profit in Q3 slipped 26.7 percent year-on-year to Rs 4.8 crore and operating profit declined 21 percent to Rs 24.08 crore.
Operating profit margin contracted to 5.4 percent from 7.2 percent while revenue grew by 5.6 percent to Rs 448.5 crore versus Rs 424.8 crore YoY.
Aurobindo Pharma said its fiscal third-quarter profit rose 2.8 percent to Rs 595 crore, helped by higher sales of generic drugs in US and Europe markets.
The company posted a net profit of Rs 579 crore in the same period previous year. Total revenue rose 11.2 percent to Rs 4369.2 crore.
The company took a one-time charge of Rs 66.4 crore for the quarter  due to US deferred tax assets and liabilities based on the new tax law which has resulted in reduction in federal corporate tax from 35 percent to 21 percent.
The EBITDA margin stood at 23.7 percent.
The net profit came in below the estimate of CNBC-TV18 analyst poll estimate of Rs 682 crore, while the revenues stood higher than Rs 4328.4 crore projection.
 Market Check: Benchmark indices rebounded with mild gains on Thursday after shedding more than 2,000 points in previous seven consecutive sessions.
The 30-share BSE Sensex was up 94.37 points at 34,177.08 and the 50-share NSE Nifty gained 23.30 points at 10,500.
Cipla rallies 5 percent. Sun Pharma lost 2.6 percent post Taro earnings and Aurobindo Pharma was down 1 percent post Q3 earnings.
IOC shed nearly 4 percent as stock goes ex-dividend.
Nifty Midcap was up 0.3 percent on positive breadth.
Torrent Power, Prestige Estates, ICRA and SRF gained 1-4 percent. Gati, Hexaware and Dixon Technologies were down 1-4 percent.
Most Asian indexes climbed after last session's rally stalled late in the trading day, with the Nikkei rising 0.6 percent and South Korea's Kospi up 0.5 percent. However, China's Shanghai Composite was down 1.5 percent.
Gains in the region followed the slightly lower close seen on Wall Street as U.S. bond yields rose.

Read More Update Click Here : www.tradenivesh.com 

Markets ends lower as RBI maintains status quo


Markets witnessed a sharp sell-off in last one hour of trade as RBI flagged concerns regarding rising inflation. Major heavyweights like L&T & HDFC Bank dragged the benchmark index lower, while Mid-cap index managed to close marginally higher.

Trading favourite Vakrangee Ltd. continued its southward journey, crashing ~60% in last 9 trading sessions. Market breadth finally ended in the favour of advance with advance-decline ratio closing at 3:1x.

Nifty/Bank Nifty Index February futures witnessed a surge in open interest to the tune of ~7.7 lakh/2.2 lakh shares, indicating a buildup of short positions.

Tracking the Bank Nifty options, short gamma and short vega strategies were the flavour of the day as both out of the money call and put options of 08 February 2018 expiry contract tumbled on account of lacklustre index movement and falling implied volatility.

India VIX witnessed a decline of ~2%, ending the session at 19.45 levels.


Nifty:
- 22 points @ 10477
Bank Nifty
-141 points @ 25670
Top 2 F&O Gainer:
Fortis & BEL
Top 2 F&O Loser:
Hexaware & Siemens
Most Active Index Option Contract:
Call Option
11000CE, O.I: +~30  lakh shares
Put Option:
10000PE, O.I: + ~9.05 lakh shares
Nifty Max O.I Strikes:
11500CE, 10500PE
Bank Nifty Max O.I Strikes:
27000CE, 25000PE (8TH Feb 2018 Expiry)

Tuesday, 6 February 2018

HDFC could move to acquire controlling stake in CanFin Homes | Trade Nivesh Investment

HDFC is exploring the purchase of controlling stake in CanFin Homes (30% stake of parent Canara Bank) as per Media reports. HDFC which is raising Rs13,000cr, may use part of this money to fund this stake buying.

If the acquisition goes through then it will be positive for CanFin Homes as it would be part of HDFC group.

Shares of Can Fin Homes share is trading higher at Rs473/share (up 3.3%) and Canara Bank share is trading higher at Rs327/share (up 2.57%).

The divestment would act positive for the Canara bank as it would aid it to improve its capital adequacy ratio, which in turn would partly fund its future loan growth.
Canara Bank’s improving asset quality, better NIM prospects and rising noninterest income bodes well for its profitability over FY17-19E. The bank is trading at ~2.1x FY19E P/ABV. We have positive outlook on the stock.
Can Fin Homes Ltd is a South-based (74% of business) housing finance company with Canara Bank holding 30% stake. We expect strong growth in affordable housing loan segment and high yielding non-core segments. Additionally, favorable funding mix and the lower cost-to-income ratio will trigger earnings growth. The stock is trading at 3.7x FY19E P/BV. We have positive outlook on the stock.

Monday, 5 February 2018

Tata Motors Q3 profit at Rs 1,215 cr misses estimates on weak JLR show; standalone strong | Trade Nivesh Investment

Tata Motors' third quarter consolidated earnings missed analyst expectations on Monday due to weak Jaguar Land Rover show; but standalone or domestic business reported healthy performance backed by strong commercial vehicle segment performance and cost reduction efforts.
Consolidated profit growth of nearly 11-fold year-on-year at Rs 1,215 crore for December quarter was much below CNBC-TV18 poll of Rs 3,040 crore. The multi-fold growth was due to low base in year-ago quarter, but sequentially the bottomline declined 51 percent.
Profit for the year-ago period stood at Rs 111.6 crore, the company said.
Consolidated revenue from operations grew by 16 percent to Rs 74,156 crore compared to Rs 63,933 crore in December quarter 2016.
Solid consolidated operating profit or EBITDA (earnings before interest, tax, depreciation and amortisation) growth of 80 percent at Rs 8,671 crore and margin expansion of 420 basis points at 11.7 percent for the quarter YoY were also lower than CNBC-TV18 estimates of Rs 9,964 crore and 13 percent, respectively.
Jaguar Land Rover
Per-tax profits of the UK-based luxury car maker were lower at 192 million pound for the quarter compared to 255 million pound in Q3FY17 which had included an USD 85 million insurance recovery.
"Profitability was impacted by the run-out of the 17 model year Range Rover and Range Rover Sport and higher depreciation & amortisation resulting from continued investment to drive profitable growth," the company said.
JLR operating profit margin expansion of 160 basis points at 10.9 percent YoY was far lower than CNBC-TV18 poll of 12.1 percent.
Revenue from operations during the quarter increased 4.3 percent to 6,310 million pound compared to year-ago due to slow volume growth.
Retail sales rose 3.5 percent YoY to 1.54 lakh units and wholesales increased 2.2 percent to 1.33 lakh units in Q3.
"China and overseas market were up while the UK, US and European markets were lower reflecting more challenging conditions with cyclical weakness in the UK and US, increasing diesel uncertainty in the UK and Europe, and Brexit uncertainty in the UK," JLR said.
Standalone Business
Tata Motors' passenger and commercial vehicle business performance was strong for the quarter as standalone profit stood at Rs 183.7 crore in Q3 against loss of Rs 1,045.9 crore in same period last year and expected loss of Rs 7 crore by CNBC-TV18.
Revenue from operations grew by 57.8 percent year-on-year to Rs 16,101.6 crore for quarter ended December 2017, driven by strong volume growth.
"The turnaround strategy is delivering results as is evident in share gain in an intensely competitive market and improved profitability enabled by a slew of new product launches and customer centric initiatives," Guenter Butschek, MD & CEO said.
Standalone volumes increased 29 percent YoY and 11.6 percent QoQ to 1,71,000 units from 1,32,000 units, with commercial vehicle volumes showing an increase of 34.4 percent and passenger vehicles 17.5 percent YoY.
EBITDA growth of over 77-fold at Rs 1,383 crore and sharp margin expansion of 840 basis points at 8.6 percent in Q3 YoY were far ahead of CNBC-TV18 estimates of Rs 1,012 crore and 6 percent, respectively.
Butschek said the regulatory landscape on emission norms including BSVI, electric vehicles and alternative fuel sources were significant challenges for the industry and Tata Motors was ready to play its part.
Finance cost during the quarter increased by Rs 377 crore YoY to Rs 1,247 crore due to higher borrowings while free cash flow in Q3 was negative Rs 5,159 crore reflect higher investments, lower operating profits and adverse working capital in JLR due to new product launches.
The stock price closed up 3.12 percent at Rs 396.05 ahead of earnings that announced after market hours.

Sunday, 4 February 2018

Sensex falls 400 pts, Nifty back above 10,600; VIX rises 8% | Trade Nivesh Investment

Benchmark indices continued to trade sharply lower, though recovered a bit from opening lows.
The 30-share BSE Sensex was down 407.24 points or 1.16 percent to 34,659.51 and the 50-share NSE Nifty fell 137.60 points or 1.28 percent to 10,623.A
About nine shares declined for every share rising on the BSE.
TCS, Infosys, Tata Motors, Bharti Airtel, ITC, Tech Mahindra, Wipro and HCL Technologies were gainers..
Shares of Inox Wind, PI Industries and Gujarat Gas declined 3-10 percent in morning on the back of poor Q3 (Oct-Dec) numbers.
Inox Wind has registered net loss of Rs 46 crore in Q3FY18 against profit of Rs 107 crore. Revenue of the company was down 92 percent at Rs 90 crore.
The company post operating loss at Rs 18.6 crore versus profit of Rs 183.4 crore.
PI Industries' Q3FY18 net profit was down 14 percent at Rs 80 crore, while revenue was up 7 percent at Rs 537 crore. The operating profit (EBITDA) was up 1 percent at Rs 104 crore and margin was down 170 bps at 19.4 percent.
Gujarat Gas has posted 2 percent declined in its Q3FY18 net profit at Rs 60 crore, while, revenue was up 13 percent at Rs 1,614 crore. EBITDA was down 2 percent at Rs 198 crore and margin was down 190 bps at 12.3 percent.
9:25 am Investment: Bharti Airtel said Singtel would invest Rs 2,649 crore in promoter company, Bharti Telecom via preferential issue.
Funds raised will be used towards debt reduction, it added.
Singtel's stake in Bharti Telecom will increase to 48.9 percent from 47.2 percent.
PC Jeweller rallied more than 20 percent in early trade on huge buying, after the stock hit hard in previous session.
On Friday, the stock fell close to 60 percent intraday but recovered later to close with a loss of 24.40 percent post management positive comments and clarified on relation with Vakrangee that has been facing some issues.
Market Check: Benchmark indices opened the week sharply lower on Monday, with the Sensex falling more than 500 points, tracking weakness across the globe.
The 30-share BSE Sensex was down 527.75 points or 1.50 percent at 34,539 and the 50-share NSE Nifty fell 166.40 points or 1.55 percent to 10,594.20.
About five shares declined for every share rising on the BSE.
Vakrangee, Inox Wind, HCC, IFCI, Westlife Development, Union Bank of India, Gujarat Gas, Future Consumer and Jain Irrigation were down 2-10 percent.
 
 
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