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Benchmark equity indices closed higher amid mixed global cues as domestic institutional investors stepped up buying. In the week ended on Friday, the Sensex jumped 0.84% to 64,904.68 and the Nifty 50 index gained 1.01% to close at 19,425.35.
In broader markets, the BSE Midcap index surged 2.62% to 32,566.13 and the BSE Smallcap index advanced 2.1% to end at 38,378.76.
Top gainers Pharma [4.26%], Healthcare [3.99%], Realty [2.85%], Metal [2.58%], Oil & Gas [2.53%]. Top losers were Media [-1.51%], Consumer Durables [-0.77%], PSU Bank [-0.59%], and IT [-0.46%].
For the week, FIIs were net sellers for Rs 3,105.27 crore in the cash segment, while DIIs were net buyers for Rs 4,155.23 crore.
The Indian rupee fell 5 paise to 83.34 against the US dollar on Friday.
Meanwhile, WTI Crude Oil prices stood at $77.17 per barrel, while Brent Crude was at $81.43 a barrel.
Company News
Reliance Industries (RIL): The conglomerate informed that it has allotted 20,00,000 Secured, Redeemable, Non-Convertible Debentures (NCDs) of the face value of Rs 1,00,000 each totalling Rs 20,000 crore on private placement basis. The coupon rate for the 10-year bonds is 7.79% per annum payable annually. The bonds is expected to be listed on BSE and NSE.
Hindustan Aeronautics (HAL): The public sector aerospace and defence company reported a consolidated net profit of Rs 1,236.67 crore in Q2FY24 from Rs 1,221 crore in the corresponding quarter of last fiscal. Its consolidated revenue from operations rose 9.5% YoY to Rs 5,635.7 crore in the quarter under review, compared to Rs 5,144.79 crore in the year-ago period. Ebitda fell 5.8% YoY to Rs 1527.7 crore in the quarter under review.
The company informed that a Joint Venture company with Safran Helicopter Engines SAS by name ‘SAFHAL HELICOPTER ENGINES PRIVATE LIMITED’ has been incorporated, to carry out business of design, development, certification, production, sale & support of helicopter engines. Initially, the JV company will manufacture engine for Indian Multi Role Helicopter (IMRH) & Deck Based Multi Role Helicopter (DBMRH) projects.
Further, the company inked a contract with Airbus for the establishment of Maintenance, Repair, and Overhaul (MRO) facilities dedicated to the A-320 aircraft. Under the agreement, Airbus will provide the A320 family tool package and offer specialised consulting services to HAL to set up an MRO. It will also offer HAL access to AirbusWorld, a digital platform that offers support, technical data and training solutions.
Hindalco Industries: The company’s consolidated revenue fell to 3.6% YoY to Rs 54,169 crore in Q2FY24 from Rs 56,176 crore in Q2FY23. Consolidated Ebitda was up 4.7% to Rs 5,612 crore in Q2FY24 from Rs 5,362 crore in Q2FY23. Consolidated net profit came in at Rs 2,196 crore in Q2FY24 as against Rs 2,205 crore in Q2FY23.
In the Aluminium (India) segment, upstream revenue was at Rs 7,878 crore and the upstream Ebitda stood at Rs 2,074 crore in Q2FY24. Downstream revenue was at Rs 2,629 crore and Downstream Ebitda jumped 16% quarter-on-quarter to Rs 171 crore. Revenue from the copper business rose 8% QoQ to Rs 12,441 crore Ebitda jumped 23% QoQ to Rs 653 crore.
Hindustan Petroleum Corporation Ltd (HPCL): The state-owned oil refiner reported a consolidated net profit of Rs 5,826.96 crore in Q2FY24 compared to a net loss of Rs 2,475.69 crore in the year-ago period. Revenue from operations fell to Rs 1.02 lakh crore in Q2FY24 from Rs 1.13 lakh crore in the year-ago period due to lower oil prices. HPCL said its gross refining margin stood at $10.49 per barrel in the reported quarter compared to a gross refining margin of $12.62 in the corresponding period last year. In the reported quarter, the refinery throughput was 5.75 million tonne versus 4.49 million tonne in Q2FY23.
Mahindra & Mahindra (M&M): The SUV manufacturer said its standalone net profit surged 67% to Rs 3,451.88 crore in Q2FY24 from Rs 2,068 crore recorded in Q2FY23. Revenue from operations increased 16.6% YoY to Rs 25,772.68 crore in the quarter under review. Ebitda grew by 24% YoY to Rs 4,397 crore in Q2FY24. During the quarter, M&M sold 2,12,078 vehicles, recording a growth of 18% YoY in Q2FY24 and total tractors sold in Q2FY24 stood at 89,101 units, down 4% YoY.
Ashok Leyland: The commercial vehicles manufacturer posted a 181% YoY surge in consolidated net profit at Rs 561 crore in Q2FY24 compared to a net profit of Rs 199 crore in the same period last fiscal year. Revenue from operations rose 16.6% to Rs 9,638 crore in the quarter under review from Rs 8,266 crore in corresponding period last fiscal. EBITDA for the quarter was Rs 1,080 crore in Q2FY24 as against Rs 537 crore in Q2FY23. Its domestic Medium and Heavy Commercial Vehicles MHCV volumes stood at 29,947 units, up 18% YoY.
Bajaj Finance: The company’s board approved the issue and allotment of 12,104,539 equity shares of face value Rs 2 each to eligible qualified institutional buyers at the issue price of Rs 7,270 per equity share. The aggregate amount was Rs 8800 crore and the issue price of the QIP was at a 3.5% discount to the floor price of Rs 7,533.81 per share.
Adani Ports and SEZ (APSEZ): The company’s consolidated revenue from operations jumped 27.6% to Rs 6,646.41 crore in Q2FY24 from Rs 5,210.8 crore in Q2FY23. Its consolidated Ebitda rose 24.4% to Rs 3,880.5 crore in Q2FY24 from Rs 3,315.9 crore in Q2FY23. The company’s net profit was at Rs 1,761.6 crore in Q2FY24 as against Rs 1,737.8 crore in Q2FY23. Its cargo volumes stood at 202.6 MMT in H1FY24, up 14% YoY, led by containers (+18%), dry cargo (+10%) and liquids (21%), said the company.
Adani Energy Solutions: The company reported a 34% YoY rise in consolidated net profit for the quarter ended September 2023 to Rs 276 crore. Revenue from operations rose nearly 13% YoY to Rs 3,674 crore in Q2FY24. Other income for the quarter stood at Rs 93 crore, compared with Rs 125 crore in the same period last fiscal. The transmission business segment recorded a 17% YoY growth in revenue to Rs 1,017.4 crore, while the its generation, transmission and distribution (GTD) business saw a 15% revenue growth to Rs 2,480 crore. Its consolidated Ebitda grew by 10% to Rs 1,368 crore, while the net debt-to-Ebitda ratio stood at 3.8x as of end of September 2023.
Apollo Hospitals: The hospital chain said its consolidated net profit grew 14.17% to Rs 232.9 crore in Q2FY24 from Rs 204 crore in Q2FY23. Its revenue from operations stood at Rs 4,846.9 crore during the quarter ended September 2023, up 14.02% from Rs 4,251.1 crore recorded in the same period last fiscal. Ebitda grew to Rs 627.6 crore during the quarter under review from Rs 565.4 crore in Q2FY23.
During the quarter, the company’s revenue from Healthcare Services was Rs 2,565.9 crore (up 12.71% YoY) and revenue from Digital Health & Pharmacy Distribution was Rs 1,945.4 crore (up 16.61% YoY) and the revenue from Retail Health & Diagnostics stood at Rs 354.2 crore (up 11.28% YoY). Meanwhile, the board has approved an expansion plan for 2,285 beds, involving a balance capital outlay of around Rs 3,435 crore after reckoning for land/ asset acquisition costs already incurred.
JSW Steel: The steel maker reported a consolidated net profit of Rs 2,760 crore in Q2FY24 as against a net loss of Rs 848 crore in Q2FY23. Revenue from operations grew 6.72% YoY to Rs 44,584 crore in the quarter ended September 2023. Meanwhile, the steel manufacturer said that its consolidated crude steel production for the month of October 2023 grew by 12% YoY to 23.12 lakh tonnes from 20.64 lakh tones. Production of Indian operations rose 9% to 22.36 lakh tonnes, while production of JSW Steel USA-Ohio rose to 0.76 lakh tonnes in October 2023 from 0.15 lakh tonnes in October 2022.
Bajaj Finance: The company’s board approved the issue and allotment of 12,104,539 equity shares of face value Rs 2 each to eligible qualified institutional buyers at the issue price of Rs 7,270 per equity share. The aggregate amount was Rs 8800 crore and the issue price of the QIP was at a 3.5% discount to the floor price of Rs 7,533.81 per share.
Prestige Estates Project: The realty company posted a consolidated net profit of Rs 910.3 crore in Q2FY24 as against Rs 148.6 crore in Q2FY23. Its consolidated revenue from operations soared 56.6% to Rs 2,236.4 crore in Q2FY24 from Rs 1,427.7 crore in Q2FY23. Ebitda grew 60.7% to Rs 592.5 crore in Q2FY24 from Rs 368.6 crore in Q2FY23.
Varun Beverages: The company said its consolidated revenue from operations rose 21.2% to Rs 3,938 crore in Q2FY24 from Rs 3,248 crore in Q2FY23. Consolidated Ebitda was up 26.2% at Rs 882 crore in Q2FY24 as against Rs 699 crore in Q2FY23. Consolidated net profit jumped 30% to Rs 514 crore in Q2FY24 from Rs 395 crore in Q2FY23. The company intends to incorporate a subsidiary company in Mozambique to carry on the business of distribution of beverages.
Exide Industries: The company reported 17% rise in standalone net profit at Rs 287 crore in Q2FY24 and 10% increase in revenue from operations to Rs 4,107 crore in Q2FY24. Ebitda improved by 17% to Rs 483 crore in Q2FY24 from Rs 413 crore in Q2FY23. Ebitda margin stood at 11.8% in Q2FY24 as against 11.1% in the same period last year. The board has decided to further invest up to Rs 1100 crore, in one or more tranches, aggregating total equity investment up to Rs 3,000 crore in Exide Energy Solutions Limited. The investment will be utilized for setting up lithium-ion cell manufacturing plant in India
Aurobindo Pharma: The company reported 84% YoY rise in net profit to Rs 752 crore in Q2FY24, led by strong sales from the US market. The company has recorded a net profit of Rs 409 crore in the corresponding quarter of the previous year. Revenue from operations increased 25.8% YoY to Rs 7219 crore in Q2FY24. EBITDA rose 68% to Rs 1403 crore, while EBITDA margin for the quarter was up 480 basis points YoY to 19.4%. US formulations revenue that accounts for 47% of the revenue increased 35.7% YoY to Rs 3385 crore. Europe formulation revenue which contributes for 25% of its revenue stood at Rs 1,769 crore, up 16.7% YoY.
ICICI Bank: The private sector lender has received the approval from Reserve Bank of India for making ICICI Securities a wholly owned subsidiary, subject to certain conditions. The bank has proposed to delist equity shares of ICICI Securities, pursuant to a scheme of arrangement.
Tata Power: The company reported a 7% YoY increase in its consolidated net profit at Rs 876 crore for the quarter ended September 2023 as against Rs 819 crore in the same period last year. Its Ebitda stood at Rs 3,090 crore in Q2FY24, 76% YoY rise from Rs 1,759 in Q2FY23, while margins improved to 19.6% during the reported quarter. Revenue from operations jumped 12% to Rs 15,738 crore in Q2FY24 from Rs 14,031 crore in Q2FY23. The revenue growth was on the back of higher revenue from core businesses of generation, transmission and distribution.
United Spirits: The liquor manufacturer reported a consolidated net profit of Rs 339.3 crore in Q2FY24 as against a net profit of Rs 547.7 crore in Q2FY23. Its revenue from operations was Rs 6,736.5 crore in Q2FY24, as against Rs 8,282.7 crore reported in the same period of the previous fiscal. Its total expenses in the September 2023 quarter stood at Rs 6,361.3 crore. Its board has approved the payment of an interim dividend of Rs 4 per equity share of having a face value Rs 2 each for FY24.
Power Grid Corp: The company’s consolidated revenue from operations was up 1.04% to Rs 11,267 crore in Q2FY24 from Rs 11,151 crore in Q2FY23. The mainstay transmission business saw a 0.5% drop in revenue to Rs 10,359 crore. The consultancy business reported a 13% growth in revenue to Rs 157 crore. Its Ebitda rose 5.1% to Rs 9,908 crore in Q2FY24 from Rs 9,426 crore in Q2FY23. Its net profit increased 3.4% to Rs 3,781 crore in Q2FY24 from Rs 3,650 crore in Q2FY23.The company’s board has announced an interim dividend of Rs 4 per share for FY24.
Shree Cement: The cement manufacturing company has recorded standalone net profit at Rs 491 crore for the July-September period of FY24, growing 159% YoY. Standalone revenue from operations increased by 21% YoY to Rs 4,585 crore with sale volumes increasing 10% YoY to 82 lakh tonnes.
Global Markets
The US markets ended higher, aided by gains in technology-related stocks and batter-than-expected earnings season. For the week, the Dow Jones Industrial Average advanced 0.7%, the S&P 500 jumped 1.3%, and the Nasdaq soared 2.4%.
Meanwhile, the Fed Chair Jerome Powell said that the US central bank will not hesitate to hike interest rate to bring down inflation. Treasury yields climbed after a weak auction of $24 billion in 30-year Treasuries. The yield on the 10-year Treasury stood at 4.61% on Friday as against 4.64% on late Thursday.
Japan’s stock markets rose over the week, helped by strong corporate earnings and the government’s commitment to additional economic stimulus. The Nikkei 225 index soared 1.9% and the broader Topix index rose 0.6%.
The Japanese Yen weakened and breached the 151 level against the US dollar, from around 149 the prior week. The yield on the 10-year Japanese government bond (JGB) fell to 0.85%, from 0.91% at the end of the preceding week.
The Japanese government approved new economic stimulus plan worth over $110 billion that includes reducing income and housing taxes as well as providing cash payments to low-income individuals to minimise the burden of higher inflation on households and bolster wage growth.
Chinese equities ended higher as investors shrugged off concerns over deflation after the latest data showed that consumer prices slipped back into contraction. The Shanghai Composite index rose 0.27%, the CSI 300 edged up 0.07%, while the Hang Seng index dropped 2.61% during the week.
On the economic front, China’s consumer price index fell 0.2% in October from the year-ago period, after remaining unchanged in September. The country’s producer price index dropped 2.6% from the year-ago period. The country’s exports declined 6.4% in October year-on-year, compared to the 6.2% decline year-on-year in September amid weaker global demand. Meanwhile, imports rose by 3% as against a 6.2% contraction in September 2023.