Stocks to Keep an Eye On: Vedanta, Tata Power, Gland Pharma, PFC, and Cummins India
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Indian stock market Q1 results
Stocks to Keep an Eye On: Vedanta, Tata Power, Gland Pharma, PFC, and Cummins India
Vedanta
Vedanta has reported a notable 36.5% increase in consolidated net profit to ₹3,606 crore for the quarter ending June 30, 2024, compared to ₹2,640 crore in the same period last year. Revenue from operations rose by 5.6% to ₹35,239 crore, and EBITDA increased by 47% YoY to ₹10,275 crore, with an improved EBITDA margin of 34% compared to 24% last year. The significant improvements in margins and cost reduction underscore the company’s robust financial performance.
Tata Power
Tata Power reported a consolidated net profit of ₹1,188.63 crore for Q1FY25, marking a 4% YoY increase from ₹1,140.97 crore and a 13% sequential rise from ₹1,045.59 crore in Q4FY24. Revenue grew by 13.6% to ₹17,293.62 crore, with EBITDA jumping 11% to ₹3,350 crore. CEO Praveer Sinha highlighted a continuous PAT growth for 19 consecutive quarters and significant capacity expansions, reinforcing the company’s growth trajectory.
Raymond
Raymond reported a 26.7% increase in consolidated net profit to ₹57.04 crore for Q1FY25, up from ₹45.02 crore last year. Revenue from continuing operations surged to ₹937.65 crore from ₹473.37 crore. The demerger of its lifestyle business into Raymond Lifestyle Ltd, with listing expected in Q2, and ongoing expansions in real estate and aerospace sectors are promising developments for the company.
PB Fintech
PB Fintech, the parent company of PolicyBazaar, Paisabazaar, and PB Partners, achieved a net profit of ₹60 crore for Q1FY25, reversing a loss of ₹12 crore from the same period last year. Revenue rose by 52% to ₹1,010 crore, driven by a 62% growth in online business premiums and a significant spike in health and life insurance segments.
Infosys
Infosys faces a substantial tax demand from the Indian government, amounting to ₹32,000 crore related to services from overseas branches between July 2017 and FY22. The company has requested a ten-day extension to respond to this demand, which is equivalent to 85% of its revenue for Q1FY25. The matter underscores the ongoing regulatory challenges for major IT firms.
Gland Pharma
Gland Pharma experienced a 25.9% YoY decline in net profit to ₹143.8 crore for Q1FY25, despite a 16% increase in revenue to ₹1,401.7 crore. EBITDA decreased by 10%, reflecting the challenges faced during the European holiday season and maintenance shutdowns. The company aims to grow through acquisitions and new product launches.
Bosch
Bosch reported a 13.8% YoY increase in net profit to ₹465.4 crore for Q1FY25, with revenue rising 3.8% to ₹4,316.8 crore. The company’s EBITDA improved by 11.1% to ₹519.7 crore, with notable growth across automotive and power solutions segments, driven by increased consumer demand.
Lupin
Lupin’s net profit jumped 77.2% YoY to ₹801.3 crore for Q1FY25, with revenue up 16.3% to ₹5,600.3 crore. EBITDA also saw a 22.9% increase, and the company is focusing on substantial investments in R&D and capital expenditure for consistent growth.
Reliance Industries
Reliance Jio has discontinued its ₹395 and ₹1,559 prepaid plans, effective July 3, 2024, which offered unlimited 5G data. The base plan will see a 22% price increase, reflecting broader tariff hikes across various plan categories. This move may impact customer preferences and market positioning.
Power Finance Corporation
Power Finance Corporation reported a 20% increase in consolidated net profit to ₹7,182.06 crore for Q1FY25, with total income rising to ₹24,736.68 crore. The company has announced an interim dividend of ₹3.25 per equity share, with the record date set for August 30, 2024.
IIFL Finance
IIFL Finance reported a ₹23-crore loss for Q1FY25, down from a ₹151-crore profit last year. Revenue remained flat at ₹1,012 crore, impacted by the RBI’s ban on gold loans. The company raised ₹1,271.83 crore through an equity rights issue to bolster financial stability.
Gujarat Gas
Gujarat Gas reported a 53% increase in consolidated net profit to ₹330 crore for Q1FY25, with revenue up 18% to ₹4,615 crore. The growth was driven by strong volume growth and the addition of new customers.
Canara Bank
The government has appointed Rohit Das as RBI nominee director on Canara Bank’s board, replacing R Kesavan. Das brings extensive experience from various central office departments and will contribute to the bank’s governance and strategic direction.
PI Industries
PI Industries reported a 17.2% YoY increase in net profit to ₹448.8 crore for Q1FY25, with revenue up 8.3% to ₹2,068.9 crore. EBITDA surged 24.7%, reflecting the company’s strong performance in the agrochemical sector.
Cummins India
Cummins India saw a 33% YoY increase in standalone net profit to ₹419.8 crore for Q1FY25, with revenue up 4.3% to ₹2,304.2 crore. EBITDA jumped 37.2%, and the board approved Shveta Arya as the additional director and managing director designate.
Hindalco
Hindalco is under CBI investigation for alleged violations of green clearance regulations for coal mining in Odisha. The company and a former MoEF Director are accused of mining excess coal and misusing official positions.
State Bank of India
The government has approved Challa Sreenivasulu Setty as the new Chairman of SBI, effective August 28, with Rana Ashutosh Kumar Singh appointed as Managing Director. This leadership change will impact the bank’s strategic direction and operations.
Tata Consumer Products
Kotak Mahindra Mutual Fund’s Equity Arbitrage Fund purchased 1,83,768 equity shares of Tata Consumer Products, reflecting investor confidence in the company’s future prospects.
Suzlon Energy
Suzlon Energy will acquire a 76% stake in Renom Energy Services in two tranches, with the first tranche involving a 51% stake for ₹400 crore and the second tranche for an additional 25% stake within 18 months for ₹260 crore. This acquisition is part of Suzlon’s strategy to expand its renewable energy portfolio.
EIH
EIH reported an 8.8% YoY decline in consolidated net profit to ₹96.8 crore for Q1FY25, despite a 5.7% increase in revenue. The decline in profit highlights the need for strategic adjustments to improve profitability.
Fortis Healthcare
Fortis Healthcare’s consolidated Q1 net profit surged 40.4% YoY to ₹173.98 crore, with revenue increasing 12.1%. This growth reflects the company’s improved operational efficiency and market position.
Linde India
Linde India reported a 13.8% YoY increase in consolidated net profit to ₹113.7 crore, despite a 9.4% decline in revenue. The profit growth indicates effective cost management and operational improvements.
Chambal Fertilisers and Chemicals
Chambal Fertilisers and Chemicals saw a 32.4% YoY increase in consolidated net profit to ₹448.3 crore for Q1FY25, despite a decline in revenue. The profit growth highlights the company’s effective cost control and operational efficiencies.
Krsnaa Diagnostics
Krsnaa Diagnostics reported a 22.4% YoY increase in net profit to ₹17.9 crore for Q1FY25, with revenue growing 22%. The company’s CEO, Prashant Pandurangrao Deshmukh, resigned, which may impact the company’s strategic direction.
Rain Industries
Rain Industries reported a consolidated loss of ₹44.9 crore, compared to a profit in the previous year. Revenue also declined, indicating potential operational challenges.
Bata India
Bata India’s consolidated Q1 net profit surged 62.8% YoY to ₹174 crore, with a slight decline in revenue. The exceptional gains of ₹133.95 crore contributed to the profit increase, reflecting strong performance and strategic initiatives.
Gulf Oil Lubricants India
Gulf Oil Lubricants India saw a 24% YoY increase in consolidated net profit to ₹84.3 crore, with revenue up 10.1%. The company’s performance highlights strong market demand and growth prospects.
VIP Industries
VIP Industries reported a 93% YoY drop in consolidated net profit to ₹4.04 crore, despite a slight increase in revenue. The significant profit decline may require strategic adjustments.
Akums Drugs and Pharmaceuticals
Smallcap World Fund Inc acquired a 1.64% stake in Akums Drugs and Pharmaceuticals, reflecting investor confidence in the company’s future growth.
Zydus Wellness
Quant Mutual Fund bought a 1.68% stake in Zydus Wellness, while Threpsi Care LLP sold a 2.67% stake. The transactions reflect changing investor sentiment and potential shifts in ownership.
These stocks are likely to see significant market activity due to their recent performance and developments. Investors should stay updated with these changes and consider how they align with their investment strategies.
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