Domestic equity benchmarks ended near the flat line after a volatile day on Friday. Metals and FMCG shares corrected while banks and financials advanced. As per provisional closing data, the barometer index, the S&P BSE Sensex, rose 12.78 points or 0.02% to 51,544.30. The Nifty 50 index lost 10 points or 0.07% to 15,163.30.
The broader market declined. The S&P BSE Mid-Cap index and the S&P BSE Small-Cap index, both shed 0.04%.
The market breadth favored the sellers. On the BSE, 1435 shares rose and 1532 shares fell. A total of 167 shares were unchanged.
Investors booked profits after recent steep gains. Domestic shares have rallied sharply since January 2021 following a range of positive developments, including a high-spending union budget, strong corporate earnings, robust foreign fund flows and progress on COVID-19 vaccinations.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 10,77,87,428 with 23,68,530 deaths. India reported 1,35,926 active cases of COVID-19 infection and 1,55,447 deaths while 1,05,89,230 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
Buzzing Index:
The Nifty Metal index fell 1.75% to 3,484.75, underperforming the other sectoral indices on the NSE. The index had risen 1.02% yesterday.
SAIL (down 3.14%), Welspun Corp (down 2.82%), Coal India (down 2.37%) and Jindal Steel & Power (down 2.52%) were the top index losers while Hindustan Zinc (up 1.06%) and APL Apollo Tubes (up 0.70%) bucked the trend.
Earnings Impact:
Grasim Industries rose 0.49% at Rs 1241.20. The company posted 103% jump in consolidated net profit to Rs 1,384 crore on 13% rise in revenue from operations to Rs 20,986 crore in Q3 FY21 over Q3 FY20.
ITC declined 3.95% to Rs 217.50 after the company's net profit declined 11.6% to Rs 3,663 crore on 0.05% decline in net sales to Rs 11,698.60 crore in Q3 FY21 over Q3 FY20. EBITDA declined by 7.2% to Rs 4,281 crore in Q3 December 2020 from Rs 4,613 crore in Q3 December 2019.
Total FMCG segment revenue rose 5.1% Y-o-Y (year-on-year) to Rs 9,060 crore during the period under review. In the FMCG segment, cigarettes revenue increased by 3.5% Y-o-Y to Rs 5,498 crore while the revenue from other FMCG segment improved by 7.5% Y-o-Y to Rs 3,562 crore during the quarter.
Hotel business revenue stood at Rs 235 crore (down 57.4% Y-o-Y), agri-business revenue was at Rs 2,482 crore (up 18.5% Y-o-Y) and paperboards, paper & packaging revenues were at Rs 1,478 crore (down 5% Y-o-Y) in the third quarter.
Ashok Leyland slumped 5% to Rs 128.25 after the company posted a standalone net loss of Rs 19.38 crore in Q3 FY21 as against net profit of Rs 27.75 crore in Q3 FY20. The profit was impacted by a one-time expenditure of Rs 85 crore in Q3 FY21 towards a voluntary retirement scheme (VRS). Net sales jumped 20.5% to Rs 4,789.82 crore in Q3 FY21 over Q3 FY20. The result was announced after market hours yesterday, 11 February 2021.
Ashok Leyland's domestic LCV volumes for Q3 FY21 stood at 15,991, sequentially higher by about 46% over Q2 FY21 (10952) and also higher than Q3 FY20 by 27% (12574). Exports volumes for Q3 stood at 2941 which is almost doubled over Q2 FY21 (1491) and is also higher than Q3 FY20 by 24% (2371).
The global automotive industry has been affected by the constraints in supply of Electronic Control Units (ECUs) owing to the non-availability of semi-conductors. Indian automotive industry has been no exception. The company's management is closely monitoring the situation as this can have an impact on future volumes if the constraints do not ease, the company said.
Motherson Sumi Systems soared 9.46% to Rs 196.15 after the company's consolidated net profit surged 194% to Rs 798 crore on 15% rise in revenue from operations to Rs 17,923 crore in Q3 FY21 over Q3 FY20. The company said it posted a highest ever quarterly revenue. Motherson Sumi Systems said operations have normalised, with most facilities running at pre-COVID 19 levels. Indications of positive consumer sentiments reflected by increased demand globally. Sustained improvements in performance of Greenfield plants with a continued focus on cost reduction and efficiency improvements.
Consolidated profit before tax (PBT) (before exceptional items) jumped 166% to Rs 1,175 crore in Q3 FY21 from Rs 441 crore in Q3 FY20. The company received a tax rebate of Rs 109.22 crore in Q3 FY21 as compared to tax expense of Rs 96.76 crore in Q3 FY20. Consolidated EBITDA jumped 56% year on year to Rs 2,041 crore in Q3 FY21 from Rs 1,309 crore in Q3 FY20. EBITDA margin improved to 11.4% in Q3 FY21 as against 8.4% in Q3 FY20.
Power Grid Corporation of India shed 0.33% to Rs 213. On a consolidated basis, the company reported a 26% jump in net profit to Rs 3,367.71 crore in Q3 FY21 on an 8.3% rise in net sales to Rs 10,142.48 crore in Q3 FY21 over Q3 FY20. Profit before tax jumped 27.1% to Rs 4,446.57 crore in Q3 FY21 over Q3 FY20. Current tax expense spiked 27% to Rs 693 crore in Q3 FY21 over Q3 FY20.
Voltas fell 1.75% to Rs 1082.10. On a consolidated basis, the air conditioning company's net profit jumped 46.2% to Rs 128.64 crore on 32.5% rise in revenue from operations to Rs 1970 crore in Q3 FY21 over Q3 FY20.
The company's cooling products business made good recovery, post easing of the lockdown situation and achieved a record overall volume growth of 40% to Rs 840 crore, contributed by 43% increase in the sales volume of room Air conditioners (ACs), 100% in commercial refrigeration products and 11% in Air Coolers.
The electro-mechanical projects and services revenue for the quarter was higher by 26% to Rs 1017 crore in Q3 FY21 as compared to Rs 808 crore in the corresponding quarter last year. Carry forward order book of the segment was higher at Rs 7275 crore as compared to Rs 7024 crore in the corresponding quarter last year.
The engineering products and services segment Revenue and result for the quarter were at Rs 121 crore and Rs 32 crore as compared to Rs 83 crore and Rs 23 crore, respectively in the corresponding quarter last year.
CRISIL added 2.65% to Rs 1950.50 after the rating agency's consolidated net profit increased 15.4% to Rs 110.04 crore on 28.6% jump in net sales to Rs 597.24 crore in Q4 December 2020 over Q4 December 2019. The credit ratings agency said that the appreciating rupee had an impact on the quarter.
National Aluminium Company (NALCO) fell 3.65% to Rs 48.90. NALCO posted a consolidated net profit of Rs 239.71 crore in Q3 FY21 as compared to a net loss of Rs 33.9 crore recorded in Q3 FY20. Revenue from operations grew by 14% to Rs 2378.79 crore in Q3 FY21 from Rs 2088.35 crore in Q3 FY20.
Bharat Forge fell 1.34% to Rs 639.45 after the company reported a consolidated net loss of Rs 210.44 crore in Q3 FY21 as against a consolidated net profit of Rs 40.43 crore in Q3 FY20. Consolidated revenue from operations fell nearly 6% to Rs 1723.11 crore in Q3 FY21 from Rs 1830.85 crore posted in Q3 FY20. EBITDA margins improved by 520 basis points to 18.1% Q3 FY21 from 12.9% in Q3 FY20.
The company reported an exceptional one-time loss of Rs 299.45 crore which impacted company's profits. During the quarter ended 31 December 2020, Germany's National Competition regulator (Federal Cartel Office)(FCO) concluded the settlement with the company's German subsidiaries. Accordingly, an amount of Rs 274.26 crore has been provided for in the quarter ended 31 December 2020 in consolidated results towards such settlement including related expenses. The settlement amount will be paid over the period of next five years.
Bayer CropScience dropped 6.27% to Rs 5190. On a standalone basis, the company's net profit stood at Rs 45.10 crore in Q3 December 2020 compared with net loss of Rs 137.90 crore in Q3 December 2019. Net sales jumped 7.5% to Rs 918.20 crore in Q3 FY21 as against Rs 854 crore in Q3 FY20.
NHPC gained 1.83% to Rs 25.10 after the PSU company posted a 50.5% rise in consolidated net profit to Rs 961.64 crore on a 9.3% rise in net sales to Rs 2359.68 crore in Q3 FY21 over Q3 FY20.
Oil India fell 3.46% to Rs 115.65. On a consolidated basis, the company's net profit jumped 25.4% to Rs 889.69 crore on 27.7% decline in net sales to Rs 2,137.34 crore in Q3 December 2020 over Q3 December 2019. The profit was boosted by the company receiving direct tax reversal of Rs 1,158.54 crore during the quarter.
Crude oil production rose marginally by 0.13% to 0.748 million metric tonnes (MMT) in Q3 FY21 as against 0.747 MMT in Q3 FY20. Crude oil sales slipped 0.41% to 0.723 MMT in Q3 FY21 compared with 0.726 MMT in Q3 FY20. Crude oil price realization dropped 30.31% to $44.09 a barrel in Q3 FY21 from $63.27 a barrel in Q3 FY20.
Global Markets:
European stocks declined on Friday as traders digested fresh corporate results. Asian stocks were trading higher on Thursday as multiple major markets in the region were closed for holidays. Markets in China, Japan, South Korea and Taiwan were closed for holidays.
In US, the Nasdaq and S&P 500 eked out modest gains on Thursday with investors betting on more fiscal stimulus, but U.S. President Joe Biden said China was poised to 'eat our lunch,' a warning that tempered enthusiasm for a market near record highs. The Dow Jones Industrial Average ended near the flatline.
Federal Reserve Chairman Jerome Powell said Wednesday that the economy faces challenges in the labor market, and so monetary policy needs to stay 'patiently accommodative.' In remarks at the Economic Club of New York, Powell said the employment picture is a 'long way' from where it needs to be.
The number of Americans filing new applications for unemployment benefits inched down last week. Initial claims for state unemployment benefits totaled a seasonally adjusted 7,93,000 for the week ended 6 February 2021, compared to 8,12,000 in the prior week, the Labor Department said on Thursday.
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