The domestic equity barometers traded near the day's high in morning trade. The Nifty was trading above the 9300 mark. Buying in index major Reliance Industries (RIL) pushed the benchmarks higher. At 10:29 IST, the barometer index, the S&P BSE Sensex, was up 441.29 points or 1.40% at 31,884.67. The Nifty 50 index rose 122.10 points or 1.33% at 9,321.15.
In the broader market, the S&P BSE Mid-Cap index gained 1.09% while the S&P BSE Small-Cap index added 0.80%.
The market breadth, indicating the overall health of the market, was positive. On the BSE, 1160 shares rose and 560 shares fell. A total of 91 shares were unchanged. In the Nifty 50 index, 40 shares advances and 10 shares declined.
Index major Reliance Industries (RIL) jumped 2.53% to Rs 1545.40 after the company said private equity firm Vista Equity Partners will invest Rs 11,367 crore in Jio Platforms for a 2.32% stake. This investment values Jio Platforms at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore, RIL said in a statement on Friday. This is Jio Platforms' third deal after Facebook and Silver Lake's share acquisition plans over the last two weeks.
RIL has soared about 30% in last one month as compared to a 6.5% rise in benchmark BSE Sensex.
Q4 Results Today:
Adani Gas (up 2.26%), Procter Gamber Hygiene and Healthcare (up 1.35%), Shree Cement (up 1.1%), Swaraj Engines (up 2.64%) and Reliance Capital (down 5%) are some of the companies that will announce their quarterly result today.
SBI Cards and Payment Services (up 1.08%) will announce its first ever quarterly result after listing on exchange on 16 March 2020
Earnings Impact:
RBL Bank added 0.27% to Rs 129.25. The bank's net profit declined 53.7% to Rs 114.36 crore on a 20.7% rise in total income to Rs 2708.77 crore in Q4 March 2020 over Q4 March 2019. Net Interest Income (NII) grew 38% year-on-year (YoY) to Rs 1,021 crore during Q4 March 2020 from Rs 739 crore in Q4 March 2019. Net interest margin (NIM) grew to 4.93% in Q4 March 2020 from 4.23% reported in Q4 March 2019.
The bank's gross non-performing assets (NPAs) stood at Rs 2136.52 crore as on 31 March 2020 as against Rs 2010.48 crore as on 31 December 2019 and Rs 754.62 crore as on 31 March 2019. The ratio of gross NPAs to gross advances stood at 3.62% as on 31 March 2020 as against 3.33% as on 31 December 2019 and 1.38% as on 31 March 2019. The ratio of net NPAs to net advances stood at 2.05% as on 31 March 2020 as against 2.07% as on 31 December 2019 and 0.69% as on 31 March 2019.
The bank's provisions and contingencies soared 207% to Rs 614.08 crore in Q4 March 2020 over Q4 March 2019. The bank in notes to accounts said that it has created a provision of Rs 107.95 crore in addition to the RBI prescribed norm on the back of SARS-CoV-2 virus. RBL Bank's provisioning coverage ratio stood at 64.04% as on 31 March 2020 as against 58.07% reported on 1 Dec 2019.
RBL Bank reported a 41.7% drop in net profit to Rs 505.67 crore in the full year ended on 31 March 2020 (FY20) as compared to a net profit of Rs 866.95 crore posted in the full year ended on 31 March 2019 (FY19). While the bank's total income rose 34.6% to Rs 10424.63 crore, provisions and contingencies soared 212% to Rs 1998.85 crore in FY20 over FY19.
SKF India surged 7.72% to Rs 1450. The company's board recommended a special dividend of Rs 130 per share at the meeting held on 7 May 2020. At current price, the stock offers a dividend yield of 8.97% on special dividend of Rs 130 per share.
SKF India's net profit fell 8.3% to Rs 75.34 crore on a 18.5% decline in net sales to Rs 610.21 crore in Q4 March 2020 over Q4 March 2019. Other income of the company surged 59.3% to Rs 46.44 crore in Q4 FY20 from Rs 29.16 crore in Q4 FY19. It includes profit of Rs 34.9 crore earned from the sale of land for a consideration of Rs 35.46 crore.
While the company's total expenditures shrunk 14% to Rs 548.34 crore, its interest payments remained flat at Rs 1.82 crore in Q4 FY20 over Q4 FY19. The company's overall profitability was impacted by higher depreciation costs which rose 26.9% on a year-on-year (YoY) basis to Rs 14.66 crore in the quarter ended on 31 March 2020. Profit before tax (PBT) stood at Rs 91.83 crore in Q4 FY20, down by 27.6% from Rs 126.78 crore in Q4 FY19. During the quarter, total tax expense fell 63% on a YoY basis to Rs 16.49 crore.
Gillette India fell 1.32% to Rs 4925. The personal grooming products manufacturer's net profit 40.3% to Rs 52.38 crore on a 12.7% decline in net sales to Rs 406.57 crore in Q3 March 2020 over Q3 March 2019.
Cyient slumped 6.97% to Rs 215.55 after consolidated net profit slumped 58.26% to Rs 45.20 crore on a 2.92% decline in net sales to Rs 1,073.60 crore in Q4 March 2020 over Q3 December 2019.
The board of Cyient has approved the increment in the aggregate investment limits of foreign portfolio investors from the existing 49% to 74% of the total paid up equity share capital of the company, subjected to regulatory approvals and approval of shareholders.
ICICI Securities surged 4.54% to Rs 394.05. The financial services provider's consolidated net profit jumped 28.3% to Rs 155.88 crore on a 12.5% increase in total income to Rs 481.94 crore in Q4 March 2020 over Q4 March 2019.
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