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Benchmarks trade with minor cuts; Tata Motors slips over 4%

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Capital Market
Last Updated : May 19 2021 | 10:50 AM IST

After a brief recovery, the domestic equity benchmarks once again slipped into the negative terrain in morning trade. The Nifty managed to hold above the 15,000 mark. Realty shares rose for the third day.

At 10:20 IST, the barometer index, the S&P BSE Sensex, was down 70.91 points or 0.14% to 50,122.42. The Nifty 50 index lost 21.15 points or 0.14% to 15,086.95.

The broader market was trading higher. The S&P BSE Mid-Cap index gained 0.56% while the S&P BSE Small-Cap index rose 0.63%.

The market breadth was strong. On the BSE, 1700 shares rose and 915 shares fell. A total of 128 shares were unchanged.

The undertone of the market was upbeat amid hopes of reopening of economic activity soon as fresh daily Covid cases decline. Encouraging quarterly results also boosted sentiment.

COVID-19 Update:

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Total COVID-19 confirmed cases worldwide stood at 163,963,931 with 3,399,793 global deaths.

India reported 32,26,719 active cases of COVID-19 infection and 2,83,248 deaths, according to the data from the Ministry of Health and Family Welfare, Government of India.

India reported a total of 2,67,334 Covid-19 cases in the last 24 hours. It marks the third consecutive day when cases have come below the 3-lakh mark. The country recorded its highest one-day death toll of 4,529 deaths.

Buzzing Index:

The Nifty Realty index rose 1.53% to 311.90, extending gains for third day. The index has added 3.82% in three sessions.

Brigade Enterprises (up 4.68%), Godrej Properties (up 3.26%), Oberoi Realty (up 1.89%), Sunteck Realty (up 1.52%) Indiabulls Real Estate (up 0.66%) and DLF (up 0.59%) advanced.

Results Today:

Indian Oil Corporation (up 0.05%), Clariant Chemicals India (up 3.06%), Endurance Technologies (up 0.44%), Heritage Foods (up 2.74%), Indiabulls Housing Finance (up 0.44%), JK Tyre & Industries (up 1.02%), MAS Financial Services (up 0.72%), SML Isuzu (up 0.98%), Tanla Platforms (up 2.14%) and TCI Express (down 2.58%) will announce their quarterly earnings today.

Earnings Impact:

Tata Motors tumbled 4.21% to Rs 318.35. On a consolidated basis, the auto major reported net loss of Rs 7,605.40 crore in Q4 FY21 lower than net loss of Rs 9,894.25 crore in Q4 FY20. Total revenue from operations during the quarter increased 41.8% year-on-year (YoY) to Rs 88,627.90 crore in Q4 FY21.

During the period ended March 2020, an exceptional charge of Rs 14,994.30 crore was recognized under the Jaguar Land Rover (JLR)'s reimagine strategy. It comprised of asset write downs of Rs 9,606.11 crore in relation to models cancelled and restructuring costs of Rs 5,388.19 crore.

JLR reported pre-tax profits of 534 million pounds in Q4 FY21. Fourth quarter revenue increased 20.5% YoY to 6.5 billion pounds, led by China and the new Defender.

JLR said that coronavirus cases are still high in many markets while supply chain issues, in particular for semi-conductors, have become more difficult to mitigate and are now impacting production plans for Q1. The company is working closely with affected suppliers to resolve the issues and minimise the effect on customers.

Tata Motors standalone (including joint operations) revenue for the quarter increased 104% to Rs 20,046 crore. The company recorded a pre-tax profit before exceptional Rs 145 crore as against pre-tax loss of Rs 2,215 crore in Q4 FY20. The company's India operations continued its strong sequential recovery in the quarter with CV revenues recovering to pre-pandemic levels and PV revenues reaching multi-year highs.

With respect to outlook, the company said that while demand remains strong, the supply situation over the next few months is likely to be adversely impacted by disruptions from COVID-19 lockdowns in India and semi-conductor shortages worldwide. The company expects Q1 FY22 to be relatively weak due to this as well as rising commodity inflation and expect to improve gradually from the second quarter.

PI Industries slumped 6.46% to Rs 2563.85. On a consolidated basis, the company reported 62.4% jump in net profit to Rs 179.80 crore in Q4 FY21 as against Rs 110.70 crore in Q4 FY20.

Net sales during the quarter increased 40% year-on-year (YoY) to Rs 1197.10 crore. The revenue growth was driven by approximately 47% growth in exports contributed by strong volume growth in key products and approximately 11% growth in domestic business, which was in line with the business plan. Newly acquired Isagro registered 51% YoY revenue growth.

EBITDA margin, however, declined by 290 bps to 19% as on 31 March 2021 from 22% as on 31 March 2020, mainly on account of reduced gross margin despite operating leverage benefit.

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First Published: May 19 2021 | 10:22 AM IST

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