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Dr Reddy's Lab scales record high

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Last Updated : Oct 30 2013 | 11:55 PM IST

Key benchmark indices moved in a narrow range in positive zone in early afternoon trade. The barometer index, the S&P BSE Sensex, was currently trading below the psychological 21,000 mark, having alternately moved above and below that level in intraday trade. The Sensex was up 48.84 points or 0.23%, up about 40 points from the day's low and off close to 60 points from the day's high. The market breadth, indicating the overall health of the market, was positive.

Index heavyweight and cigarette maker ITC edged lower in volatile trade. Car major Maruti Suzuki India edged higher in choppy trade. Dr Reddy's Laboratories scaled record high ahead of its Q2 result tomorrow, 31 October 2013. LIC Housing Finance rose on good Q2 result. Schneider Electric Infrastructure dropped as net loss increased in Q2. Jubilant Life Sciences rose after the company issued a strong outlook for second half of the year ending March 2014 (FY 2014).

The market edged higher in early trade as Asian stocks rose on speculation Federal Reserve policy makers won't announce any major changes to monetary stimulus for the US economy when they conclude a meeting today, 30 October 2013. The 50-unit CNX Nifty hit its highest level in more than 35 months. A bout of volatility was witnessed as key benchmark indices recovered from lower level after giving away almost entire initial gains in morning trade. Key benchmark indices moved in a narrow range in positive zone in early afternoon trade.

The market sentiment was boosted by data showing that foreign funds made substantial purchases of Indian stocks on Tuesday, 29 October 2013. Foreign institutional investors (FIIs) bought shares worth a net Rs 1103.04 crore on Tuesday, 29 October 2013, as per provisional data from the stock exchanges.

The market may remain volatile in the immediate future as traders roll over positions in the futures & options (F&O) segment from the near month October 2013 series to November 2013 series. The near month October 2013 derivatives contract expire tomorrow, 31 October 2013.

At 12:20 IST, the S&P BSE Sensex was up 48.84 points or 0.23% to 20,977.85. The index jumped 108.58 points at the day's high of 21,037.59 in early trade, its highest level since 24 October 2013. The index rose 8.11 points at the day's low of 20,937.12 in morning trade.

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The CNX Nifty was up 15.05 points or 0.24% to 6,235.95. The index hit a high of 6,253.65 in intraday trade, its highest level since 11 November 2010. The index hit a low of 6,222.60 in intraday trade.

The market breadth, indicating the overall health of the market, was positive. On BSE, 1,101 shares rose and 1,002 shares fell. A total of 142 shares were unchanged.

Among the 30-share Sensex pack, 18 stocks rose and rest of them fell. Bhel (up 1.69%), Bharti Airtel (up 4.19%) and HDFC (up 1.25%), gained.

GAIL (India) rose 0.91%, with the stock extending intraday gain. The company said during market hours that it has sold 60 million shares out of 210 million shares held in China Gas Holdings at HK$ 8.20 per share. GAIL (India) also said that the Ministry of Petroleum & Natural Gas vide letter dated 25 October 2013 has informed that under-recovery burden on GAIL (India) for the year ending 31 March 2014 (FY 2014) has been provisionally fixed at Rs 1400 crore. GAIL (India) has already shared subsidy burden of Rs 1398.68 crore for the half year ended 30 September 2013. This means that GAIL (India) will have to share a miniscule subsidy burden during the second half of FY 2014.

GAIL (India) also said that Ministry of Petroleum & Natural Gas, vide letter dated 10 October 2013 has extended the tenure of Shri B. C. Tripathi as Chairman & Managing Director for a period of five years beyond 31 July 2014.

Index heavyweight and cigarette maker ITC was off 0.24% at Rs 327.10. The stock hit high of Rs 331.05 and low of Rs 325.60 so far during the day.

Most auto stocks declined. M&M (down 1.77%), Tata Motors (down 0.35%), and Hero MotoCorp (down 0.03%), declined. But, Bajaj Auto rose 1.26%.

Car major Maruti Suzuki India was up 0.59% at Rs 1,646.50, with the stock extending Tuesday's 8.19% jump triggered by strong Q2 result. The stock was volatile. The scrip hit high of Rs 1,658.95 and low of Rs 1,625.20 so far during the day. The company after trading hours on Monday, 28 October 2013, said its net profit jumped 194.7% to Rs 670.20 crore on 26.5% growth in net sales to Rs 10211.80 crore in Q2 September 2013 over Q2 September 2012. The company said that base effect aided strong growth in bottomline in Q2 September 2013 -- the company's performance in Q2 September 2012 was adversely impacted by labour problems at its Manesar plant. Higher localization and cost reduction initiatives by the company also contributed significantly to bottomline growth in Q2 September 2013, Maruti said. The overall impact of foreign exchange was positive during the quarter, Maruti said.

Maruti said that the company's new diesel engine facility at Gurgaon and the third assembly facility at Manesar went on stream during Q2 September 2013. With this, the company's total capacity for vehicle assembly has risen to 1.5 million vehicles per annum.

Dr Reddy's Laboratories rose 2.81% to Rs 2,496.80 after hitting record high of Rs 2,497.80 in intraday trade. The company announces Q2 results tomorrow, 31 October 2013.

LIC Housing Finance rose 2.26% on good Q2 result. The company's net profit jumped 27.57% to Rs 310.07 crore on 23.66% growth in total income to Rs 2302.41 crore in Q2 September 2013 over Q2 September 2012. The result hit the market during market hours today, 30 October 2013.

Talwalkars Better Value Fitness rose 0.29% on good Q2 result. The company's consolidated net profit rose 21.28% to Rs 14.76 crore on 24.27% increase in total income from operations to Rs 62.37 crore in Q2 September 2013 over Q2 September 2012. The result was announced after market hours on Tuesday, 29 October 2013.

Schneider Electric Infrastructure lost 3.59% as net loss increased in Q2. The company reported a consolidated net loss of Rs 31.79 crore in Q2 September 2013, higher than net loss of Rs 19.98 crore in Q2 September 2012. Schneider Electric Infrastructure's net sales rose 1% to Rs 263.48 crore in Q2 September 2013 over Q2 September 2012. The Q2 result was announced after market hours on Tuesday, 29 October 2013.

Jubilant Life Sciences rose 3.67% after the company issued a strong outlook for second half of the year ending March 2014. The company issued the outlook after announcing Q2 September 2013 results after market hours on Tuesday, 29 October 2013.

On a consolidated basis, the company reported a net loss of Rs 81 crore in Q2 September 2013 compared with net profit of Rs 152 crore in Q2 September 2012.

The company reported an exceptional loss of Rs 150 crore in Q2 September 2013 compared with an exceptional gain of Rs 47 crore in Q2 September 2012.

Profit after interest, but before exceptional items, fell 16% to Rs 123 crore in Q2 September 2013 over Q2 September 2012.

EBITDA (earnings before interest, taxation, depreciation and amortization), including other income, fell 1% to Rs 276 crore in Q2 September 2013 over Q2 September 2012.

The company's total income from operations rose 17% to Rs 1436 crore in Q2 September 2013 over Q2 September 2012. Jubilant Life Sciences said revenue growth was driven by volume growth in both, pharmaceutical and life science industry (LSI), segments.

In Q2 September 2013, income from operations of the pharma business stood at Rs 691 crore, showing growth of 6% in Q2 September 2013 over Q2 September 2012 and contributing 48% to the revenue mix in Q2 September 2013.

In Q2 September 2013, income from operations for the LSI segment was at Rs 744 crore, thus improving by 30% in Q2 September 2013 over Q2 September 2012 and having 52% of share in total revenues in Q2 September 2013.

In its outlook, Jubilant Life Sciences said the revenue and EBITDA are expected to continue the uptrend and meet the growth targets set for the fiscal year ending March 2014 (FY 2014). This is on account of improved capacity utilisations in sterile injectables and OCL, nutrition ingredients, Symtet and 3CP and backward integration of Pyridine and expansion to newer markets. The company said it expects the price uptrend in Pyridine and nutrition ingredients to continue. The company has a strong pipeline in APIs and Solid Dosage Formulations. It expects new product launches, expansion in newer geographies and robust order book in sterile injectables to improve outlook in second half (H2) of FY 2014, which it expects to be better than first half (H1) of FY 2014.

Commenting on the company's performance, Shyam S Bhartia, chairman & managing director and Hari S Bhartia, co-chairman & managing director, Jubilant Life Sciences said: "Our performance is shaped by good volumes traction in Q2 FY2014. Growth will accelerate in H2 on the back of product launches under Solid Dosage Formulations, scale up in Speciality Pharmaceuticals and volume uptick visible in Vitamins and Acetyl businesses due to higher capacity utilisation levels. FY 2014 will be marked by a strong business performance from all key business verticals and the restructuring initiative aimed at de-leveraging the balance sheet, which will drive a focussed reduction in debt."

In the foreign exchange market, the rupee edged as dollar rose against a basket of major currencies as investors further trimmed bearish dollar positions ahead of the outcome of the Federal Reserve policy meeting later in the global day. The partially convertible rupee was hovering at 61.455, compared with its close of 61.31/32 on Tuesday, 29 October 2013.

Asian stocks rose on Wednesday, 30 October 2013, amid rising company earnings and with the Federal Reserve projected to maintain the pace of its monetary stimulus today. Key benchmark indices in China, Japan, Hong Kong, Taiwan, Singapore, and South Korea rose 0.33% to 1.11%. Indonesia's Jakarta Composite fell 0.09%.

Factory output in South Korea contracted 3.6% last month from a year earlier, after rising 3.3% in August, the government statistician said today.

Trading in US index futures indicated that the Dow could gain 15 points at the opening bell on Wednesday, 30 October 2013. US stocks surged on Tuesday, 29 October 2013, as soft economic data supported expectations the US Federal Reserve will keep its stimulus measures intact for several months. Economic data showed consumer confidence in the US fell and an October 22 report revealed growth in American jobs slowed in September.

The Federal Open Market Committee's (FOMC) two-day policy meeting concludes today, 30 October 2013. On 18 September 2013, the Fed surprised economists and investors with its decision to delay scaling back its stimulus amid concerns about the strength of the economic recovery.

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First Published: Oct 30 2013 | 12:11 PM IST

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