Quarterly Results- How Nifty50 stocks reacted after Q1FY21
Quarterly Results- How Nifty50 stocks reacted after Q1FY21
Quarterly results analysis of Nifty50 stocks: Last week the Indian stock market closed on a negative note. The weak global cues, mixed quarterly earnings, and fear of rising coronavirus were the main reasons for negative market sentiments. You can read weekly market reports for 31st July end week here.
Quarterly results announced last week
Quarterly results played an important role in influencing the domestic market last week. There were fifteen Nifty50 stocks that announced their Q1FY21 results last week. We have done the analysis of all those companies how they behaved after the announcement of quarterly results.
ICICI Bank-
On 25th July ICICI Bank posted a 36% increase in standalone net profit at 2599 crore for Q1FY21. This is as compared with 1908 crore in the same period last year. The total income during the April-June end quarter rose Rs 26,066 crores from 21405.50 crores last year.
There was an improvement in asset quality, gross NPA fell to 5.46% from 6.49% last year. The NII rose 20% YoY basis to Rs 9278 crores. The 3.96% stake sale in ICICI Lombard and 1.5% in ICICI Prudential life helped to raise the bank’s profit in the June end quarter.
The share price of ICICI Bank reacted negatively on 27th July Monday after the Q1FY21 result was announced. The ICICI Bank share price closed as top losers in the Nifty50 index on 31st July end week.
Bharti Infratel-
On 27th July, Monday Bharti Infratel reported a 21% decline in its consolidated net profit for the April-June end quarter at Rs 704 crore. This is as compared to Rs 887 crore net profit compared to the previous quarter. The company’s consolidated revenue dropped 6% YoY to Rs 3505 crore as against Rs 3712 crores.
The EBITDA was down by 7% on a YoY basis at Rs 1807 crores compared to Rs 1953 crore. The operating cash flow was at Rs 1267 crores. The share price of Bharti Infratel reacted negatively the next day after the announcement of quarterly results
Kotak Mahindra Bank
Kotak Mahindra Bank last Monday 27th July reported an 8.51% YoY fall in net profit at Rs 1244.45 crore for Q1FY21. This is compared to Rs 1360.20 crore profit in the same quarter last year.
The Bank’s provision and contingencies increased 3 times in the April end quarter to Rs 962.01 crore under review. NII increased by 17.81% on YoY to Rs 3723.85 crore. The gross NPA stood 2.70% as compared to 2.25% in the March-end quarter. The share price of Kotak Mahindra Bank reacted negatively after the announcement of Q1FY21 results but recovered on the next trading day.
Tech Mahindra-
Tech Mahindra on 27th July reported a 1.36% YoY rise in net profit at Rs 972.30 crore for Q1FY21. This is as compared to a net profit of Rs 959.30 crore in the same quarter previous year. The profit grew 20.9% on a QoQ basis at Rs 972.3 crores compared to Rs 803.9 crores in Q4FY20.
The EBITDA of the company was down by 1.03% on YoY basis to Rs 1300.50 crores in June end the quarter as compared to Rs 1314.10 crores in the same period last year. The share price of Tech Mahindra reacted positively after the announcement of Q1FY21 results.
Ultratech Cement-
Ultratech Cement on 28th July reported a 37.84% decline in consolidated net profit at 796.31 crores in Q1FY21. This is as compared to a net profit of Rs 1281.27 crore in the same period last year. The revenue from operation fell 33.15% to Rs 7633.75 crore against Rs 11419.74 crore during the quarter under review.
The total expenses fell from 31.70% to Rs 6598.37 crore in the June end quarter as compared to Rs 9661.72 crores in the same period last year. The share price of Ultratech cement reacted positively after the Q1FY21 results.
IndusInd Bank-
IndusInd Bank on 28th July reported Q1FY21 results. The company posted a 67.8% (YOY) decline standalone net profit to 460.64 crores as against Rs 1432.5 crore in the same period last year. Banks NII grew by 16.4% YoY to Rs 3309.2 crore in June ended quarter.
A marginal weakness in the asset quality was registered by the bank, the net NPA fell 5 bps QoQ to 0.86% in the June end quarter. The share price of IndusInd Bank jumped on the next day after the announcement of Q1FY21 results.
Bharti Airtel-
The company reported a consolidated net loss of Rs 15933 crores in the Q1FY21. The loss is mainly due to one time expenses related to its adjusted gross revenue (AGR) dues. This is compared to the net loss of Rs 2866 crores reported the previous year.
The lockdown period data usage and recent tariff hikes helped to grow the revenue by 15.4% on a quarterly basis on year to Rs 23939 crores. The company’s average revenue per user (ARPU) grew to Rs 157 from Rs 154 in the last quarter.
The share price of Bharti Airtel reacted negatively on the next day after a marginal gain on initial trades. Citi maintains buy call for the target of Rs 690 per share.
Dr. Reddys Lab-
Dr. Reddy’s Lab reported 13% down in Q1FY21 net profit at Rs 579 crore as compared to Rs 662.8 crore on YoY. The company’s revenue went up by 15% at Rs 4418 crore as compared to Rs 3843 crore YoY. EBITDA was up by 2.5% at Rs 1162.2 crore against 1134.3 crores on a YoY basis. EBITDA margin was 26.3% compared to 29.5% YoY.
The share price of Dr. Reddys Lab gained more than 3% on the next day after the quarterly result announced and touched 52 weeks high of Rs 447.80.
Maruti Suzuki-
On 29th July, Maruti Suzuki reported a standalone loss of 249.4 crores as compared to the profit of Rs 1435.5 in the last year of the same period. The revenue from the operation declined by 79.2% to Rs 4106.5 crores as against Rs 19719.8 crores in the same period last year.
In the June end quarter both domestic and exports, volumes declined by 82% and 66% respectively on YoY respectively. The share price of Maruti Suzuki jumped 3% despite the company’s reported loss in Q1FY21 results.
HDFC-
The company reported its net profit went down by 4.7% at Rs 3051.5 crores as compared to Rs 3203.1 crores for the same period last year. The revenue of HDFC went up by 0.2% at Rs 13017.7 crores as compared to Rs 12990.3 crores for the same period the previous year.
The share price of HDFC reacted negatively after the announcement of the Q1FY21 results
Reliance-
Reliance Industries reported a 31% YoY rise in consolidated net profit at Rs 13248 crores for the Q1FY21 as compared to Rs 10,104 crores. The consolidated income from operations for the June end quarter stood at Rs 91238 crores as compared to Rs 162353 crores in the same period last year.
The company’s digital arm Joi Infocomm reported a good performance, the average revenue per user (ARPU) came at Rs 140. Jio’s revenue rose by 34% to Rs 19513 crore, EBITDA increased to 55% YoY to Rs 7281 crore and the net profit became three times to Rs 2520 crores.
Though the numbers are above the street’s expectation, a profit-booking was seen in the share price of Reliance after the Q1FY21 result announcement. The brokerage houses has already started giving a buy calls for reliance.
State Bank of India-
On Friday 31st July during the market hours, SBI reported Q1FY21 results. The Bank’s Net profit increased by 81% at Rs 4189.3 crores as compared to Rs 2312.20 crores in the same period last year. On a QoQ basis, the gross NPA decreased at 5.44% against 6.15%. The NII stood at Rs 26641.6 as against Rs 22938 in last year’s same period.
The Bank made Rs 12501.30 crore provision for the June ended quarter as compared to Rs 13495.08 crores in the March-end quarter and Rs 9182.94 crore for the same period last year. The Q1FY21 results of SBI beat street estimates and the share price of SBI closed 2.63% higher after the result was announced.
Indian Oil Corporations-
The company posted a net profit of Rs 1910.8 crores in Q1FY21 as against the loss of Rs 5185.3 crore on the QoQ basis. The Standalone EBITDA at Rs 5152.3 crores against Rs 212.2 crores on the quarterly comparison. The Standalone EBITDA margin stood at 8.8% against 0.2% on a quarterly basis comparison.
The share price of Indian Oil Corporation reacted negatively after the announcement of Q1FY21 results but recovered in the end and closed on a flat note. IOC share price has closed as one of the top five losers in the Nifty50 index last week.
Sun Pharma-
Sun Pharma on 31st July reported net loss at Rs 1655.60 crores due to exceptional loss. This is as compared to a net profit of Rs 1387.5 crores in the same period last year. The company’s net profit before one-time loss stood at Rs 1449.4 crores which grew by 4.%% on YoY basis.
The company’s revenue from the operation for the June end quarter was Rs 7585.25 crores, which declined by 9.4% compared to Rs 8374.4 crores reported in the same period last year. The EBITDA declined by 7.6% YoY to Rs 1843.6 crore and margin expanded 50 bps to 24.3% in June compared to the same period last year.
The Share price of Sun Pharma gained after the announcement of Q1FY21 results and closed more than 4% gain at close on 31st July. Except for one-time loss, the quarterly results of Sun Pharma beat the street estimates.
Tata Motors-
Tata Motors on 31st July reported a consolidated loss of Rs 8438 crores in the Q1FY21 as against the loss of Rs 3698 crores in the last year the same period. The revenue of the company fell 48% on YoY to Rs 31983 crores. The operating profit fell 79% to Rs 653.3 crores and margin married to 2% as against 4.87% earlier.
The share price of Tata Motors closed 0.96% higher ahead of the Q1FY21 results, and the market will react to the result along with the auto sale number on Monday.
Conclusions:
Markets have already reacted to the above companies’ first-quarter results except for Tata Motors. The Nifty50 stocks like Dr. Reddy’s Lab, Sun Pharma, Ultratech Cement were the top gainers in the last week after the announcement of quarterly results. On the losing side, ICICI Bank was the top loser in the Nifty50 index last week, its quarterly result was announced last Saturday 25th July.
You may also like to read, Nifty50 Stocks list | Index | Share price
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