3rd November 2020 Highlights: Markets end up over 1%, Q2 results corner, exports dip, & more.
-3rd November 2020-
Sensex 40,261.13 ▲ 1.27%
Nifty 11,813.50 ▲ 1.24%
The markets ended up by around 1.26%. HDFC, HDFC Bank, SBI, and ICICI Bank were the main drivers behind today’s rise. Positive global cues were also said to be a factor. Like yesterday, banks were the heroes of the market today while auto, pharma and metals acted as the supporting cast. The Nifty Bank index rose 3.1%. Leading financial institutions ICICI Bank (+6.7%), SBI (+4.3%) and HDFC (+3.9%) witnessed strong buying interest. In fact, the strong results declared by several major banks in Q2 almost gives the impression that 'all is well’ in the banking sector. Meanwhile, UPL (-6.6%), NTPC (-3.7%) and Reliance Industries (-1.2%) were the top losers of the day.
Top Gainers (Nifty)
Top Losers (Nifty)
Here are the top stories of the day.
Q2 Results: Sun Pharma, PVR, Adani Ports.
Sun Pharma
Sun Pharma's net profit for the July to September quarter was reported at Rs 1,812.79 crores. This is a 70.4% jump from the same quarter last year.
Its total revenue from operations rose 5.29% to Rs 8,553.13 crores.
Other Highlights
India sales at Rs. 2,531 crores, up 1% from the same quarter last year.
U.S. finished dosage sales at US$ 335 million. The number is flat when compared to the same quarter last year.
R&D investments at Rs. 613 crores (7.2% of sales) compared to Rs. 488 crores (6.1% of sales) for the July to September quarter in 2019.
The shares of the company ended 3.45% higher at Rs 485.6 per share. The results were declared after market hours.
PVR
PVR reported a net loss of Rs 184 crores as compared to a net profit of Rs 48 crores.
Revenue from operations fell to Rs 40.4 crores from Rs 973 crores.
Segmental revenue:
Movie Exhibition: Revenues fell to Rs 8,086 crores from Rs 91,477 crores.
The shares of the company fell 0.34% to Rs 1,101.65 per share today. The results were declared after market hours.
Adani Ports
The net profit of the company rose 31.57% to Rs 1,393.69 crores.
Revenue from operations rose 3% to Rs 2,902.52 crores.
Segmental Revenue:
Ports and SEZ Activities: Rose 4.9% to Rs 2,645.07 crores.
The shares of the company ended 0.91% lower at Rs 353.65 per share. Results were declared after market hours.
Reliance Industries Lost $11 Billion M-Cap Yesterday
Reliance’s shares ended 1.44% lower at Rs 1,850.4 per share today. Its market value was at 12.5 lakh crores at the end of today’s trading session.
The shares of the company had ended 8.62% lower at Rs 1,877.45 per share in yesterday’s session. This is the lowest since mid-July.
Subsequently, the company’s market capitalization slipped to Rs 12.69 lakh crores on Monday from Rs 13.5 lakh crores on Friday.
The company’s net profit fell 15% to Rs 9,567 crores in the July to September quarter.
Low fuel demand due to the pandemic hit the bottom-line (net profit) of the company.
It’s gross refining margin, the money it makes from refining a barrel of crude oil into fuel, fell to $5.7 per barrel from $9.4 a year earlier.
Exports From India Dips in October
Exports dipped in the month of October after rising in the month of September.
There was a dip of 5.4% with exports being worth around $25 billion. This is on account of the lower shipment of petroleum products, jewellery, leather, electronic goods, and engineering goods.
The trade deficit stood at $8.78 billion in October. Sectors like rice, iron ore, pharmaceuticals, spices, and chemicals saw an uptick in exports at the same time.
Cadila Healthcare results beat street estimates
Shares of Cadila Healthcare jumped 5.9% today after the company’s Q2 results beat market estimates on all counts. Revenues grew 13.4% on a year-on-year basis to ₹3,820 crore versus estimates of ₹3,661 crore. The revenue growth was led by the company's US business (contributing ~45% of revenues), which grew at 18%. The company launched six new products in the US during the June-September quarter. In the Indian market (accounting for ~40% of revenues), it improved market share in various therapies including gynaecology, pain management, anti-infectives, anti-diabetic and hormones. Overall, its net profit grew by 73% year-on-year. Further, as compared to March 2020, the company’s net debt has declined by 40% to ₹4,031 crore. Investor confidence is evident in the stock, which has risen 63% in this fiscal.
Ramco Cements posts strong margin expansion
Ramco Cements’ Q2 revenues fell by 5% on a year-on-year basis as sales volumes dropped 19% during the same period. The volumes were impacted due to lockdown restrictions and unusually heavy rains in the southern states. However, the company’s operating margin expanded significantly from 22.4% in Q2 of last year to 35.2% this year. The increase in margin was due to improving per-tonne realisation, supported by a better product mix. Net profit rose 40% as compared to the same period last year to ₹235 crore, beating the street’s expectations of ₹163 crore. Further, the company expects cement demand to pick up in the coming quarters. The stock ended the day with gains of 2.8%.
Godrej Properties tumbles on lacklustre Q2
Godrej Properties’ Q2 numbers showed a sequential recovery as total income jumped 44% and adjusted EBITDA jumped 87% on a quarter-on-quarter basis. This is broadly in line with the sales recovery seen across Tier-1 cities. However, sluggishness due to the pandemic was evident in the results on a year-on-year basis. The total income declined 36% to ₹238 crore. Meanwhile, net profit stood at ₹7 crore, down ~78%. Furthermore, projects slated for launch in Q2 were postponed due to delays in regulatory approvals. The stock took a beating today and was down 9.1%. However, the silver lining is that the company’s labour force at its various construction sites has significantly increased, and has exceeded pre-Covid levels by ~30%. The company believes that it has a tremendous opportunity to improve its share in the residential real estate market.
Franklin Wound-Down Funds Get Rs 438 crore in October
Franklin in a statement has said that the 6 wound down funds have received a total of Rs 8,741 crores since it wound down.
Rs 438 crore of that amount was received in the second half of October.
The money still remains inaccessible to investors as the matter is stuck in court and a decision is pending.
Closing bell
The recent performance of banking stocks has boosted investor confidence, which was evident in the market gains today. However, as we mentioned yesterday, cracks are visible in the smallcap stocks. The Nifty Smallcap 100 index ended almost flat (0.07%), in an otherwise bullish market. Meanwhile, major equity markets across Europe and Asia are in the green, ahead of the US presidential election today.
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Returns are in INR for Sensex & Nifty and in USD for Dow Jones & Nasdaq.
HAPPY INVESTING!
SEE YOU TOMORROW
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