Pre Market Report: Dalal Street may open lower; Adani Green, Ultratech Cement, Kotak Mahindra Bank in focus

UltraTech Cement: The company has recorded a 36.1% year-on-year decline in consolidated profit at Rs 1,670.1 crore for the quarter ended March FY23, partly hit by weak operating margin performance. Revenue from operations grew by 18.4% YoY to Rs 18,662.4 crore, with sales volume rising 14% YoY to 31.7 million tonnes in Q4FY23. The board approved merger three subsidiaries—Ultratech Nathdwara Cement, Swiss Merchandise Infrastructure, and Merit Plaza—with the company. The appointed date of the scheme of amalgamation is April 1, 2023.

Kotak Mahindra Bank: The private sector lender has recorded a 26.3% YoY growth in standalone profit at Rs 3,495.6 crore for quarter ended March FY23, and net interest income during the same period grew by 35% to Rs 6,102.55 crore. Profitability was boosted by net interest income, non-interest income and pre-provision operating profit, while advances grew by 18% and deposits growth was 16.5% YoY. The bank reported provisions & contingencies at Rs 147.6 crore for Q4FY23 against reversal of provisions worth Rs 306.2 crore in Q4FY22, while asset quality improved with gross NPAs falling 12 bps QoQ to 1.78% and net NPAs down by 6 bps to 0.37% for the quarter.

Adani Green Energy: The renewable energy company said its consolidated revenue was up 78% YoY at Rs 2,598 crore in Q4FY23 as against Rs 1,461 crore in Q4FY22. Ebitda was up 132.9% YoY at Rs 2,264 crore in the reported quarter as against Rs 972 crore in the year-ago period. Net profit rose 319% YoY to Rs 507 crore in Q4FY23 from Rs 121 crore in the year-ago period.

Axis Bank: The private sector lender said the Board of Directors has approved the appointment of Subrat Mohanty as a Whole-time Director, designated as ‘Executive Director’ of the bank, with effect from May 1. Mohanty will be Executive Director for three years and is subject to the approval of the shareholders of the bank and RBI. The board of the bank has approved the proposal to reclassify Specified Undertaking of the Unit Trust of India from promoter to public category.

IDBI Bank: The bank has recorded a massive 64.1% year-on-year growth in standalone profit at Rs 1,133.4 crore for the March FY23 quarter despite higher provisions, supported by higher net interest income and strong improvement in asset quality. Healthy pre-provision operating profit and non-interest income also boosted profitability. Net interest income grew by 35.5% YoY to Rs 3,280 crore for the quarter with credit growth of 18.7% and deposits rising 9.6%. Gross non-performing assets (NPA) fell by 744 bps sequentially to 6.38% and net NPA dropped by 16 bps QoQ to 0.92% in Q4FY23.

Biocon: Subsidiary Biocon Biologics’ integrated, multi-product, monoclonal antibodies (mAbs) Drug Substance manufacturing facility (B3) at Biocon Park in Bengaluru, has received a Certificate of GMP Compliance for an additional product, biosimilar Bevacizumab, from the representative European inspection authority, Health Products Regulatory Authority (HPRA), Ireland. Last year B3 facility received the EU GMP Certification for manufacturing biosimilars.

Mahindra & Mahindra Financial Services: The company’s standalone net profit was up 13.87% at Rs 684.12 crore in Q4FY23. Its standalone revenue from operation was at Rs 2994.15 crore in Q4FY23 as against Rs 2442.44 crore in the year-ago period. Net interest income for the quarter stood at Rs 1,723 crore, which is higher by 13% YoY. Meanwhile, total income rose 24% YoY to Rs 3,057 crore for the reporting period. The company recommended a dividend of Rs 6 for the financial year ended March 31, 2023. The board has approved increase in aggregate borrowing limits from Rs 90,000 crore to Rs 1.10 lakh crore.

RBL Bank: The private sector lender has clocked a 37% year-on-year growth in profit at Rs 271 crore for the quarter ended March FY23, driven by lower provisions and higher other income, with improved asset quality performance. Net interest income for the quarter at Rs 1,211 crore increased by 7% over a year-ago period, with credit growth of 17% and deposits growing 7% YoY.

Central Bank of India: The public sector lender has reported a 84% year-on-year growth in standalone profit to Rs 571 crore for January-March period of FY23 with improved asset quality performance, though provisions remained elevated. Higher net interest income, non-interest income and pre-provision operating profit remaind strong on year-on-year basis. Net interest income surged by 45.4% YoY to Rs 3,513 crore during the quarter, with advances growing 20.7% YoY and deposits growth at 5%. The bank has received board approval for raising of capital up to Rs 2,500 crore during FY24.

IDFC First Bank: The bank has clocked a 134% year-on-year growth in profit at Rs 803 crore for quarter ended March FY23 despite higher provisions, supported by strong non-interest income, pre-provision operating profit and net interest income. NII grew by 35% YoY to Rs 3,597 crore in Q4FY23, with loans & advances rising 24% and deposits rising 47% YoY. Asset quality improvement continued with the gross NPA falling 45 bps QoQ to 2.51% and net NPA declining 17 bps to 0.86% for the quarter.

SBI Cards & Payment Services: The company said revenue from operations for the quarter at Rs 3,762.2 crore grew by 32% YoY with interest income rising by 32% to Rs 1,672 crore, and fees & commission income up by 25% at Rs 1,786 crore during the quarter. It posted a 2.7% year-on-year increase in profit at Rs 596.5 crore for quarter ended March FY23

Star Health and Allied Insurance: The company’s standalone revenue was up 11% YoY to Rs 3,053 crore in Q4FY23. Standalone net profit stood at Rs 102 crore in Q4FY23 as against a net loss of Rs 82 crore in Q4FY22. Operating profit was at Rs 75 crore in the quarter under review as against an operating loss of Rs 98 crore in the year-ago period.

Jet Airways: The company said Sanjiv Kapoor, the CEO-designate of the grounded airline resigned, confirmed owner Jalan-Kalrock Consortium said in a statement.

Gujarat Alkalies and Chemicals: GACL-NALCO Alkalies & Chemicals, a joint venture between the company and National Aluminium Company, has commissioned the second unit of 130MW captive power plant at Dahej.

Coromandel International: Dare Ventures, a wholly owned subsidiary of the company acquired 7.4% in Dhaksha Unmanned System for Rs 15.99 crore, increasing its overall stake to 16.82%.

Dalmia Bharat: The company’s subsidiary Dalmia Cement (Bharat) will sell its entire investment of 1.87 crore shares, representing 42.36% of the share capital, of associate company Dalmia Bharat Refractories for Rs 800 crore to promoter group company Sarvapriya Healthcare Solutions.

Avanti Feeds: The company has dissolved its Delaware-based step-down subsidiary Avanti Frozen Foods due to the impact of Covid-19 and recession in the U.S.

Trident: The company’s paper division will be shut from April 28 till the end of May due to preventive maintenance, de-bottlenecking and upgradation of the production facilities.

Rossari Biotech: The chemical manufacturing company has recorded a 20.3% year-on-year growth in consolidated profit at Rs 29 crore for March FY23 quarter, driven by operating profit margin. Revenue from operations for the quarter at Rs 406.5 crore fell by 7.4% compared to year-ago period. On the operating front, EBITDA rose 4.3% YoY to Rs 54.6 crore with margin expansion of 150 bps at 13.4% for the quarter.

Sangam India: The company’s consolidated revenue was down 7.24% YoY at Rs 684.7 crore in Q4FY23. Ebitda fell 34.14% YoY to Rs 70.89 crore in the quarter under review. Consolidated net profit was down 43.62% YoY at Rs 30.13 crore in Q4FY23. The company recommended a dividend of Rs 2 per share for the fiscal, subject to shareholders’ approval.

RPG Life Sciences: The company’s revenue grew 14.15% YoY to Rs 118.49 crore in Q4FY23. Its net profit was up 37.63% at Rs 10.35 crore in Q4FY23. Ebitda was up 17.76% YoY to Rs 15.91 crore in Q4FY23. The board approved a dividend of Rs 12 per share for the fiscal ended March 2023.

Bank of India: The Central Government has appointed Rajneesh Karnatak as Managing Director & Chief Executive Officer of Bank of India for three years. Earlier, Rajneesh was an Executive Director of Union Bank of India.

L&T Finance Holdings: The non-banking finance Company has registered a 46.4% year-on-year growth in profit at Rs 501.08 crore for March FY23 quarter. Revenue for the quarter at Rs 3,216 crore increased by 9.1% over corresponding period last fiscal. Retail book size crossed Rs 61,000 crore, coming in at Rs 61,053 crore in Q4FY23, up 35% YoY.

Vedant Fashions: The company said consolidated revenue was up 15.32% YoY at Rs 341.63 crore in Q4FY23. Consolidated net profit rose 22.74% YoY to Rs 108.87 crore in the reported quarter. Ebitda was up 16.59% YoY to Rs 167.90 crore Q4FY23.