The stock markets closed in a negative zone on Friday, October 30, 2020. On the day, after opening higher, the Sensex at the Bombay Stock Exchange lost 135.78 points, or 0.34 per cent, to close at 39,614.07. The Nifty at the National Stock Exchange fell 28.40 points, or 0.24 per cent, to 11,642.20. But certain stocks came in news after the market was closed. These stocks can impact the indices when it reopens on Monday, November 2, 2020. List of such five stocks:
Post Market Results of Banks: ICICI Bank, IndusInd Bank, IDFC Bank and DCB Bank.
ICICI Bank: The private lender profit grew 550% year-on-year rise in profit at Rs 4,251crore for the quarter ended September 30, 2020. It had posted a net profit of Rs 654 crore last year in the same quarter. Net Interest Income (NII) grew 16% to Rs 9,366 crore in the reported quarter against Rs 8,057 crore posted in the same quarter last year. The private lender’s gross non-performing assets (NPA) fell marginally QoQ to 5.17% of gross advances as of September 30, 2020, against 5.46% posted in June 2020. Net NPA fell substantially to 1% from 1.23%. Provisions for bad loans and contingencies for the reported quarter rose 19% to Rs 2,995 crore as against Rs 2,507 crore posted last year. Besides, there was a tax adjustment of Rs 3,020 crore last year.
Total deposits grew 20%. Auto loan disbursements continued to increase from June to reach pre-coronavirus levels Disbursements across its rural portfolio recovered to pre-Covid-19 levels.
IndusInd Bank: The private lender has reported a 53% year-on-year decline in profit at Rs 663 crore for the quarter ended September 30, 2020. It posted a profit of Rs 1,401 crore in the same quarter last year. Net Interest Income (NII) grew 13% to Rs 3,278 crore in the reported quarter against Rs 2,909 crore posted last year. Provisions for bad loans and contingencies for the reported quarter up rose 66% to Rs 1,964 crore as against Rs 737 crore posted last year. IndusInd Bank’s gross non-performing assets (NPA) fell marginally to 2.21% of gross advances as of September 30, 2020, against 2.53% posted in June 2020. Net NPA fell substantially to 0.52% from 0.86%. Besides, the bank has said that reports related to the merger of the bank are completely false. It performed COVID-related standard provision of Rs 952 crore. The tractor loan grew 33% YoY as compared to last year. Two-wheeler loan growth from rural areas was also impressive.
IDFC First Bank: IDFC Bank posted a net interest income (NII) of Rs 1,660 crore for the quarter ended September 30, 2020, against Rs 1,363 crore posted last year in the same quarter. It made provisions of Rs 216 crore against Rs 317 crore provisioned last year in the same quarter, while the bank made provision of Rs 764 crore in the quarter ended June 30, 2020. The GNPA of the bank declined marginally to 1.62% in the reported quarter against 1.99% posted in the previous quarter. The NNPA also fell to 0.53% against 0.51% posted in June quarter. Reversed provisions worth Rs 811 crore out of the existing provision of Rs 1,622 crore on exposure to a large telecom player, based on improved prospects of the company and used to create provisions for additional Covid-19 contingency.
DCB Bank: DCB Bank posted a net interest income (NII) of Rs 334 crore for the quarter ended September 30, 2020, against Rs 313 crore posted last year in the same quarter. IN made provisions of Rs 113 crore in September 2020 quarter against Rs 43 crore provisioned last year in the same period, while the bank made provisions of Rs 84 crore in the previous quarter ended June 30, 2020. The GNPA of the bank declined marginally to 2.27% in the reported quarter against 2.44% posted in the previous quarter. The NNPA also fell to 0.83% against 0.99% posted in June quarter.
Post-market results: Reliance Industries, UPL, DLF and Max Financial:
Reliance: Energy-to-telecom conglomerate Reliance Industries on Friday reported a 6.6% quarter-on-quarter (QoQ) decline in the profits at Rs 10,602 crore for the quarter ended September 30, 2020. It had posted a net profit of Rs 11,352 crore in the quarter ended June 30, 2020. Revenue increased 26% QoQ to Rs 1,11,236 crore during July to September period this year as compared to Rs Rs 88,253 crore posted in April to June period this year. EBITDA grew 9% to Rs 18,495 crore against Rs 16,875 posted in the previous quarter. The margin contracted to 16.2% from 19.1% posted in the previous quarter. GRM fell to $ 5.7 per barrel in Q2FY21 from $6.3 per barrel posted in June quarter this year. In addition to this, the company earned an extra profit of Rs 4,966 crore in the previous quarter. Apart from this, RILs telecom arm Reliance Jio posted a 19.8% QoQ rise in profit at Rs 3,020 crore against Rs 2,520 crore posted in June quarter. The revenue grew 7.2% to Rs 18,496 crore in the September quarter against Rs 17,254 crore posted in June quarter. The telecom arm posted an EBITDA of Rs 7,971 crore in the reported quarter against Rs 7,332 crore posted in June quarter. The margin grew marginally to 43.1% from 42.5% posted in the previous quarter. The average revenue per user (Arpu) increased to Rs 145 per subscriber per month from Rs 140.30 in the previous quarter. Reliance Industries will look at more acquisitions to strengthen its new commerce venture JioMart, part of the retail unit, the company said in an investor update on Friday Future Retail has asked the BSE and NSE to process its application for merger and acquisition of its retail assets by Reliance Industries (RIL).
UPL: UPL has reported a 6% year-on-year rise in its consolidated profit at Rs 537 crore for the quarter ended September 30, 2020. It had posted a profit of Rs 7,817 crore in the same period last year. Its revenue from operations increased 14% to Rs 8,939 crore against Rs 7,817 crore posted last year. EBITDA grew 15% to Rs 1,667 crore in September quarter this year against Rs 1,447 crore posted last year in the same period. The margin remained flat to 18.6% in Q2FY21 against 18.5% posted in Q2FY20. Q2FY20 Had an exceptional item of Rs 305 crore for Arysta integration. Q2FY21 had an exceptional item of Rs 211 crore for cost related to restructuring, severance and litigation costs related to the Group’s business in the Europe and Latin America.
Max Financial Services: Max Financial has reported a 49% year-on-year rise in consolidated profit at Rs 81 crore for the quarter ended September 30, 2020. It had posted a profit of Rs 64.36 crore in the same quarter last year. Total revenue from operations grew 49.78% to Rs 7.019 crore in the reported quarter against Rs 4,686 crore posted last year. The revenue is up due to higher investment income. Reversal of impairment loss on investments supported the profit.
DLF: DLF reported a 48% year-on-year drop in consolidated profit at Rs 227 crore for the quarter ended September 30, 2020, against Rs 443 crore posted in the same quarter last year. Revenue from operations fell 6% to Rs 1,609.8 crore against Rs 1,715.5 crore posted last year. EBITDA stood at Rs 463 crore, up 32% against Rs 350.7 crore posted last year. The margin grew to 29% in Q2FY21 against 20% in Q2FY20.
Auto Sales numbers: The automakers have reported sales figures for October 2020.
Hero MotoCorp: India’s largest two-wheeler company reported a 35% year-on-year rise in sales of the vehicles to 8,06,848 units in October against 5,99,248 units sold earlier. Overall, Hero MotoCorp registered its highest ever monthly sales of 8.06 lakh units in October 2020. There is a significant gain in market share in Q2 across product categories and geographies.
Eicher Motors: Eicher Motors reported a 7% fall in sales of Royal Enfield (RE) in October at 66,891 units against 71,964 units sold last year. In the VECV segment, the company sold 4,200 units, up 11.9% from 3,755 units sold last year. Maruti Suzuki: Maruti Suzuki India Limited posted total sales of 1,82,448 units in October 2020. This is a growth of 18.9% over the same period of the previous year when it sold 1,53,435 units.
Mahindra & Mahindra (M&M): M&M has reported its overall auto sales (passenger vehicles+ commercial vehicles+ exports) for October 2020, which stood at 44,359 vehicles, down 14.5% from 51,896 sold in October 2019. Its tractors sales increased 2% to 46,558 units in October 2020 against 45,433 units sold last year.
Escorts: Escorts Ltd’s sales increased 2.3% in October 2020 at 13,664 against 13,353 tractors sold in October 2019. It is Escorts highest-ever of October sales.
Axis Bank/ GE Power:
Axis Bank: The private lender has revised its stake acquisition agreement with Max Financial. Post advise from the Reserve Bank of India, Axis Bank and its subsidiaries – Axis Capital and Axis Securities have agreed to enter into revised agreements with Max Financial to acquire up to 19% of the total equity instead of 17%. Axis Bank, under the revised agreement, will acquire up to 9.002% stake while Axis Capital and Axis Securities will together acquire up to 3% of the share capital of Max Life. Besides, Axis entities will have the right to acquire and additional stake of up to 7% of the equity share capital of Max Life in one or more tranches.
GE Power India: The company in its clarification has said that it will continue to work on coal-based projects in India. Currently, work on 10 coal-based projects with a capacity of 13 GW is in progress. It has said that the company will be able to bid independently for other coal projects in the future, as well. GEPIL has a license to use GE technology in India. Alert: Parent GE has stated that they will exit the coal business altogether. Alert: GE will not work on any new coal projects worldwide.
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Equitas Small Finance Bank: Equitas Small Finance Bank will list on bourses on November 2, 2020, with the company fixing the issue price at Rs 33 per share. The Rs 518 crore public issue saw a muted response and was subscribed 1.95 times during October 20-22, 2020. The quota reserved for the qualified institutional buyer (QIB) was subscribed 3.91 times. The quota set aside for retail investors was subscribed 2.08 times, while the HNI quota was subscribed 0.22 times. Equitas Small Finance Bank is the wholly-owned subsidiary of Equitas Holdings.
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