Pre Market Analysis 19-10-2021

L&T Infotech: The IT company’s consolidated net profit rose 20.77% YoY to Rs 551.7 crore in the second quarter of FY22. Its operating revenue also rose 25.6% to Rs 3767 crore led by strong demand for its services. The company witnessed its strongest sequential revenue growth and best ever Q2 of 8.9% in constant currency terms, taking its annual revenue run rate to cross $2 billion.

Reliance Industries: The National Company Law Tribunal allowed the company’s retail arms – Reliance Retail Ventures Ltd (RRVL) and Reliance Retail & Fashion Lifestyles Ltd (RRFRL) – to hold extraordinary general meetings of their shareholders and creditors to acquire Future Group’s businesses. The tribunal said the objections raised by the US e-commerce giant Amazon are premature and can be dealt with at a later stage.

CDSL: The country’s largest depository had a technical issue on Monday which affected scores of retail investors when they tried to place a sell order. The issue took several hours to resolve. CDSL will have to submit a root cause analysis (RCA) to Sebi of the incident. The framework allows up to 21 days for submission of a comprehensive RCA report.

State Bank of India: The public-sector lender said it has raised Rs 6,000 crore by issuing Basel III compliant bonds. The non-convertible, taxable, perpetual, subordinated, unsecured bonds of face value of Rs 1 crore each aggregates to Rs 6,000 crore. The bonds bear a coupon of 7.72 per cent per annum payable annually, the bank said. Meanwhile, the RBI imposed a penalty of Rs 1 crore on the bank for not complying with directions issued by the central bank with respect to fraud classification and reporting by commercial banks.

Route Mobile: The company’s consolidated second-quarter revenue rose 24.74% to Rs 435.67 crore, from Rs 349.28 crore in the year-ago period. It net profit was up 28.29% to Rs 42.17 crore, from Rs 32.87 crore in the corresponding period last year.

Tata Coffee: The company’s consolidated net profit rose 26.55% to Rs 53.66 crore in Q2FY22, as against Rs 42.40 crore in the year-ago period. The company’s consolidated revenue from operations rose to Rs 548.52 crore, from Rs 543.43 crore in the year-ago period, driven by improved sales of instant coffee business in India.

SVP Global Ventures: The company reported a consolidated net sales of Rs 405.74 crore in Jul-Sep quarter, up 11.24%, from Rs 364.73 crore in the year-ago period. The net profit more than tripled to Rs 40.85 crore for the reported quarter from Rs 10.75 crore in the corresponding quarter last year.

Vedanta: The company’s profitability is likely to be affected in the third quarter due to higher cost of coal because of the ongoing shortage of the dry fuel in India, according to Credit Suisse report. However, the report said it would be temporary as ramping up of captive coal mines would help reduce cost volatility in the medium term.

IndiGo Airlines: The airline major has laid out clear defensive strategies as the sector is expected to become more competitive, according to Ronojoy Dutta, Wholetime Director and CEO of IndiGo. Estimates indicate a massive rebound in air travel sans the impact of high jet fuel prices. The strategies include leveraging its low cost structure, strengthening its service standard and building its network to gain traction with customers.

Airtel, Jio & Vodafone Idea: The Indian government has written to telecom operators, asking them to convey by October 29 if they would be opting for four-year dues moratorium, according to sources. It has also given 90 days’ time to the operators to indicate if they want to opt for converting the interest amount pertaining to the moratorium period into equity. Along with this option, the audited financial statements of the immediately preceding fiscal year 2021 may be submitted.