profits | Business Upturn

Sensex rises over 200 points, while Nifty goes above 16,300

Sneha Sengupta — Mon, 09 Aug 2021 07:41:59 +0000

On Monday, the Indian equity markets have recording moves of other Asian shares, which came out to be almost positive, today. At 9:27 am, the Sensex rose to 154 points or 0.28% at 54,431.48 whereas the NSE benchmark Nifty50 index was at a better rate by 44.75 points or 0.28% at 16,282.95. The market witnessed heavy IT, auto and FMCG gains. On the other hand, the metal, energy and pharma experienced numerous profit booking.

Amongst the Nifty50 stocks group, M&M has topped the charts by 2.41% followed by Tech Mahindra and Titan, which significantly witnessed an upsurge of 1.48% and 1.47% respectively. Bajaj Finserv, Asian Paints, Bajaj Auto, Hero MotoCorp, IndusInd Bank, HCL Tech, Shree Cements, Wipro, Tata Motors, HUL, ITC, UPL, Britannia, Nestle, TCS, Power Grid Corp, Infosys were eminent gainers in the Nifty ratings, with a rising score of 0.48% and 1.23%.

Hindalco couldn’t get a grip over the Nifty scores and go below 2.40% followed by JSW Steel and Cipla, with a low rating of 0.99% each. Divis Labs, Tata Consumer products, Adani Ports, Reliance Industries, ONGC, Tata Steel, Dr Reddy’s Lab, Sun Pharma, BPCL were the others who joined the lot in low Nifty ratings.

On Friday, the Sensex concluded at 215.12 points or 0.39% lower at 54,277.72 whereas the NSE benchmark Nifty50 index received 56.40 points or 0.35% lower at 16,238.20. The foreign investors sold Indian equities at a whopping Rs 69 crore price in the cash division on a provisional basis and gave away Rs 2390 crore in the futures & options division. This action decreased their net long in index futures to 66% against 69% a day before taking it to an above-average limit percentile of 67%. Domestic institutions purchased Indian equities at Rs 631 crore in the cash market.

Global Markets Scenario

The prominent firms in Asian markets also reported a positive tally, today. Japan’s Nikkei witnessed a surge of 0.33%; China’s Shanghai Composite achieved 0.95%; Taiwan Weighted lose 0.45% whereas the Hang Seng accounted for 0.87%. South Korea’s Kospi earned 0.11%. However, the US index futures were slightly down today.

Banks make a record profit of Rs 100,000 crore this year

Aryan Jakhar — Sat, 26 Jun 2021 11:38:59 +0000

In FY21, when the economy was pummeling by the epidemic, the banking industry made its highest-ever earnings of Rs 1 lakh crore. This is a considerable improvement above the industry’s net loss of about 5,000 crore in FY19.

Half of the profits in the business came from two banks: HDFC Bank and SBI. HDFC Bank accounted for 30% of overall earnings, or Rs 31,116 crore, a rise of 18% over the previous year. SBI, the country’s largest lender, contributed another 20%, or Rs 20,410 crore. ICICI Bank came in third, with earnings of 16,192 crore, more than double those of the previous year. As public sector banks (PSBs) slowed their lending, private banks gained market share.

PSBs reported a collective net profit for the first time in five years, which was the most significant turnaround. Only two PSU banks, Punjab and Sind Bank and the Central Bank of India, declared a loss during the year. Yes Bank, which continued to make provisions, remained in the red in the private sector, with a net loss of 3,462 crore. However, the losses reported by the two banks in the red were lower than those reported the previous year.

Banks had finished making arrangements for the majority of the loans by March 2020. Banks stopped bleeding as additional provisions were offset by huge recoveries from previously written-off accounts. According to the rating agency ICRA, the profits for the current year include windfall gains on public banks’ bond portfolios, which accounted for two-thirds of their profits before tax in FY21.

IndusInd Bank share price soars as deposits rise 11% YoY in Q3 FY21

Divya Joyce — Tue, 05 Jan 2021 07:34:13 +0000

IndusInd Bank rose 1.16% to Rs 908 after the private lender said its deposits increased 11% to Rs 2,39,600 crore in Q3 December 2020 from Rs 2,16,713 crore in Q3 December 2019.

Deposits rose 4.96% last month compared with Rs 2,28,279 crore in Q2 September 2020. Retail deposits and deposits from small business customers amounted to Rs 85,914 crore in Q3 FY21, up by 13.63% from Rs 75,610 crore in Q2 FY21.

IndusInd Bank’s net advances stood at Rs 2,07,691 crore in Q3 FY21, a tad higher compared with Rs 2,07,413 crore in the same period last year.

Sequentially, the bank’s net advances rose 3.20% in December 2020 from Rs 2,01,247 crore in Q2 FY21.

CASA ratio was at 40.5% as of December 30, 2020, as against 42.4% as of December 30, 2019, and 40.4% as of September 30, 2020.

IndusInd Bank caters to the needs of both consumer and corporate customers.

The bank reported a 53.2% decline in net profit to Rs 647.04 crore on 1.6% fall in total income to Rs 8,731.05 crore in Q2 FY21 over Q2 FY20.

LIC notes record profit in April-November as it prepares for biggest IPO

Shalmali Bhagwat — Mon, 14 Dec 2020 07:45:14 +0000

As reported by Mint, Life Insurance Corp. of India (LIC) has registered its highest ever profit of ₹25,908 crore from selling stocks in the eight months concluded on 30th November as the state-run insurer is set for India’s biggest initial public offering. The profit is a 66.3% jump from the ₹15,578 crore gains in the year-ago period and more than 80% of its full-year target of ₹32,000 crore which, if fulfilled, will be the insurer’s highest earnings from equity investments in its 64-year history.

The bumper gains have been aided by a resurgent stock market. The BSE’s benchmark Sensex paced up 56.4% since 1st April. Regulatory data reflected that LIC’s combined new business from individual and group single premium policies rallied up 22.4% to ₹95,840 crore in April-November. This, along with record profits from share sales, could increase interest in the LIC IPO.

According to Mint research, in the September quarter, the top 15 firms in which LIC cut stakes the most are ITC, NTPC, ICICI Bank, Nestle India, Britannia, ABB and Dr Reddy’s. LIC has sold shares amounting to ₹13,710 crore in these firms in April-September. LIC’s profits are primarily collected from the sale of shares in the insurer’s large, non-linked portfolio, which includes traditional life insurance policies.

“For fiscal 2021, our target for equity purchase is to cross ₹77,000 crore, depending on market conditions,” said the LIC spokesperson. Last fiscal, LIC purchased shares worth ₹61,590.02 crore. By 30 November, with four more months left in the fiscal, LIC had already bought shares worth ₹60,574.94 crore, 51% more than ₹40,098.83 crore in the same period last year.

“In the first few months after COVID-19 hit, sales were sluggish. Most LIC sales are generated via the agency channel, which has at least 1.2 million agents. The agents then pushed sales through online medium, and after June, premium income flow jumped. On an average basis, the new business premium is growing 10.5%, and renewal income is by 11% year-on-year in April-November,” said one of the three people cited earlier, all of whom spoke on condition of anonymity.

DMart secures gains of over 20% in last six sessions

Shalmali Bhagwat — Wed, 09 Dec 2020 07:27:33 +0000

According to Mint, shares of Avenue Supermart Ltd, which controls the popular hypermarket chain DMart, have soared by nearly 20% in the last six sessions, breaking a record in the background of higher volumes.

The stock hit an all-time high of ₹2,752 on the BSE. At 10.21 am, the scrip was at ₹2,696, up 1.5% from its previous close. Since 27 Nov till date, the scrip has risen 20.16%. So far this year it has advanced 47%. As of 12:18 am Avenue Supermarts was trading at Rs 2,685.

Avenue Supermarts, focussed on value retailing, offers a wide range of fast-moving consumer (food and non-food) products, general merchandise, and apparel. While announcing the September quarter (Q2FY21) results on October 17, the company’s management said that month-on-month sales have are looking positive during this quarter – August was better than July and September was better than August. The management said that the progress of the COVID-19 pandemic and its impact on consumer spending during the festival period will determine the company’s financial performance for the next quarter.

According to Mint, Analysts said this gain was hitched to the expected hike in footfall after at least three vaccine makers had applied for an emergency approval from Indian drug regulator. Recently, pharma majors Pfizer and Serum Institute of India (SII), Hyderabad-based Bharat Biotech International Ltd have sought emergency use authorization from the Drugs Controller General of India (DCGI) for its COVID-19 vaccine.

With this, analysts hope that early vaccines may soon return economic life back to normal all over the world.

Coal India Q2 profit boosts up 14 % to Rs 3522 crore

Shalmali Bhagwat — Wed, 11 Nov 2020 12:07:36 +0000

State-run Coal India on Monday reported a 14 per cent rise in consolidated net profit at Rs 3,522.7 crore for the quarter ended September. The company’s delivered a net profit of Rs 3,084.54 crore in the year-ago period, it said in a regulatory filing.

Its total income, however, dropped down to Rs 22,012.94 crore in the July-September quarter of financial year 2019-20 from Rs 23,486.35 crore in the corresponding period of previous fiscal. Despite the fall in total income, Coal India’s net profit witnessed a rise as its tax outgo declined significantly to Rs 754.25 crore from Rs 2,031.71 crore in the year-ago quarter.

Coal India Limited is an Indian public sector coal mining and refining company headquartered in Kolkata, West Bengal, India. It is the largest coal-producing company in the world and a Maharatna public sector undertaking. The company contributes around 82% to the total coal production in India.

Bank of India reports double profit in Q2 year on year basis

Shalmali Bhagwat — Fri, 06 Nov 2020 09:43:31 +0000

Bank of India on Friday registered over two-fold jump in September quarter, consolidated net profit at Rs 543 crore.

“Total income shot to Rs 12,477.79 crore in July-September 2020-21 from Rs 12,062.55 crore in the year-ago period,” the state-owned lender said in a regulatory filing.

On a standalone basis, the net profit in the quarter reached Rs 525.78 crore against Rs 266.37 crore a year ago. In value terms, gross NPAs or bad loans dropped to Rs 56,231.76 crore against Rs 61,475.60 crore a year ago.

Bank of India is a public sector bank headquartered in Mumbai. The economy witnessed a major slump due to the COVID-19 crisis but this jump in profit comes despite loan loss provisions rising 47 per cent to ₹2,134 crore in Q2FY21 against ₹1,452 crore in the year-ago period.

Bank of India stock was trading at Rs 41.10 on BSE, up by 3.01 per cent from the previous close.

Toyota doubles full-year profit outlook to more than 9.7 dollar billion

Shalmali Bhagwat — Fri, 06 Nov 2020 07:14:38 +0000

Toyota Motor Corp 7203.T more than doubled its full-year operating forecast on Friday amid a rebound in sales in China that received a blow due to the Coronavirus pandemic earlier this year. Japan’s biggest automaker said it now expects an operating profit of 1.3 trillion yen ($12.6 billion) for the year through March 2021, significantly higher from a previous prediction for a 500 billion yen profit. That is above an average estimate for a 1.25 trillion yen profit compiled from 26 analysts polled by Refinitiv.

Although still weaker than last year, demand has considerably bounced back, particularly in China the world’s biggest auto market. Toyota and rivals are placing their hopes on the China market of securing maximum business back there, as China witnesses a speedy recovery from the pandemic, faster than other countries. Toyota has seen a surge in China’s demand for its electric cars and the Lexus luxury brand. A senior Toyota executive in China said in September that annual global sales of electrified vehicles could reach 5.5 million in 2025, five years earlier than initially planned.

The maker of the RAV4 sports utility vehicle (SUV) crossover and the Prius gasoline hybrid now expects to sell 9.42 million cars this year – up 3.5% from a previous forecast of 9.1 million this year, but still lower than last year’s sales of 10.46 million.

The Coronavirus hit the auto-market hard, but the market is slowly witnessing a revival. “If you compare the second quarter to the first you can see a dramatic recovery,” Chief Financial Officer Kento Kon said, speaking during an online press briefing.

Adani Enterprises Q2 results: Consolidated profit recorded as Rs 436 crore

Shalmali Bhagwat — Wed, 04 Nov 2020 12:11:10 +0000

Adani Enterprises, the flagship company of the Adani group on Wednesday reported a consolidated profit of Rs 436 crore for the second quarter. It recorded the total consolidated income as Rs 9,312.14 crore for this quarter and Rs 8,626.94 crore, year on year basis. The total expenses escalated to Rs 8,788.59 crore in the September quarter compared to Rs 8,571.75 crore in the same period a year ago.

“The EBIDTA (Earnings Before Interest, Depreciation, Taxes and Amortisation) for the quarter increased by healthy 76 per cent at Rs 951 crore owing to better volumes in mining services and solar manufacturing businesses,” the company said in a statement.

The PAT (Profit After Tax) attributable to owners for Q2 FY21 was Rs 362 crore in comparison with Rs 50 crore in the year-ago period in accordance with the rise in EBIDTA margins, the statement said. The PAT was also affected by the exceptional write off of Rs 130 crore.

“The combination of our confidence in this business model, and our faith in India’s growth story is demonstrated through the investments we are continuing to make in additional infrastructure sectors that are critical to nation-building,” Adani Group Chairman Gautam Adani said.

Further, he added that the move into roads and water infrastructure, data centre parks, and airports, including the addition of the Mumbai International Airport and the Navi Mumbai International Airport, “provides us with a transformational platform that will help us create several strategic and growth-based adjacencies for our other businesses”.

Infosys: COVID-19 threats company’s future profitability, 27% hike in CEO’s compensation

Nishi Trivedi — Sun, 31 May 2020 13:21:00 +0000

Infosys said that owing to the pandemic-induced shutdown, the company has faced extreme slowdown. Moreover, it expects a hit on its profit in months to come. The firm’s CEO, Salil Parekh’s total compensation increased by 27% annually to 6.1 million dollars in the current fiscal. This is as per the form 20F filed by the company with the US Securities and Exchange Commission (SEC).

The multinational company pointed out that its future profits might face the brunt as clients purse for discounts owing to the COVID-19 outbreak. “Our profitability may be marginally impacted as some clients have sought price reductions or discounts. Lower profitability and prolonged payment terms requests from clients can impact our cash flows negatively and may impact our ability to provide dividends to shareholders,” the company said in the filing.

The firm said that it suffered unsuspected expenses to ensure hygienic workplaces for the employees and providing them work from home options. Moreover, it sustained additional costs in attaining and installing hardware assets, technology infrastructure, and data connectivity charges for distant working.

While several risks occurred, the filing stated that other risks related to COVID-19 may materialize in the future. “Our exposure to cybersecurity and data privacy breach incidents may increase due to a large number of employees working remotely. This in turn can hinder our ability to continue services and/or operations, impacting revenue, profitability, and reputation,” it added.

In addition, it said owing to the remote working situation it may affect employees’ productivity. Moreover, if after reopening any employee test positive for COVID-19, it will stop the operations.

Further, Infosys raised concerns on threats caused by climate change across industry sectors in which its clients operate.