Sensex, Nifty End Little Changed; IT Stocks Fall, Energy Shares Rise

Shares of the Mumbai-based government-owned bank fell as much as 1.6 percent to Rs 59 after it reported gross non-performing assets of 31.8 percent in September quarter.

Key earnings highlights:

• Net interest income down 21 percent at Rs 1,300.86 crore versus Rs 1,657.45 crore (YoY).
• Net loss at Rs 3,602 crore versus loss of Rs 198 crore (YoY).
• Gross NPA at 31.78 percent versus 30.78 percent (QoQ).
• Provision coverage ratio of 68.72 percent as on Sept. 30.
• Provision coverage ratio of 68.72 percent as on Sept. 30
• Provisions for bad loans at Rs 5,481 crore versus Rs 4,602 crore (QoQ).
• LIC infused capital worth Rs 2,098 crore in Q2.

Shares of the country's largest utility vehicle maker pared gains and fell 1.3 percent to Rs 780 despite its profit beating estimates in September quarter.

Key earnings highlights (Q2 M&M + MVML):

• Revenue up six percent at Rs 12,790 crore versus Rs 12,017 crore; Estimate of Rs 12,700 crore.
• Net profit up 26 percent at Rs 1,779 crore versus Rs 1,411 crore; Estimate of Rs 1,325 crore.
• Operating margin at 14.5 percent versus 16.0 percent; Estimate of 14.6 percent.

Shares of the Gurugram-based budget airline operator pared gains to trade 3.7 percent higher at Rs 84.40 after it reported wider than expected loss in September quarter on the back of rupee depreciation and higher fuel cost.

Key earnings highlights:

• Revenue at Rs 1,880 crore versus Rs 1,794.57 crore (YoY); Bloomberg estimate of Rs 1,960 crore.
• Net loss at Rs 389 crore versus Bloomberg estimate of loss of Rs 260 crore.

Shares of the Bengaluru-based maker of Jockey innerwear fell as much as 4 percent to Rs 27,701 after its profit missed Bloomberg consensus estimates in September quarter.

Key earnings highlights:

• Revenue up 10.4 percent at Rs 690.75 crore versus estimate of Rs 750 crore.
• Net profit up 10.2 percent at Rs 92.62 crore versus estimate of Rs 111 crore.
• Ebitda up 11 percent at Rs 142.7 crore versus Rs 128.5 crore (YoY).
• Margin at 20.7 percent versus 20.5 percent (YoY).
• Company to pay special dividend of Rs 110 per share.
• Company to pay dividend of Rs 41 per share for September quarter.

Shares of the Chandigarh-based steel wheel rim maker declined 0.5 percent to Rs 1,111 after it reported September quarter earnings.

Key earnings highlights:

• Net profit up 17 percent at Rs 21.3 crore versus Rs 18.2 crore (YoY).
• Net profit up 17 percent at Rs 21.3 crore versus Rs 18.2 crore (YoY)

Shares of the Faridabad-based power generation company rose as much as 2 percent to Rs 27.50 after its profit surpassed Bloomberg consensus estimates in September quarter.

Key earnings highlights:

• Revenue up 26 percent at Rs 2,495.02 crore versus Rs 1,971.69 crore (YoY).
• Net profit rises 20 percent to Rs 1,218 crore versus Rs 1,018.64 crore (YoY); Estimate of Rs 1,060 crore.

Stake sale won't change management structure of the company and the stake sale will not be restricted to promoters' stake, Punit Goenka, MD and CEO of Zee Entertainment, said in a conference call.

Key highlights of the conference:

• Strategic partner to help Zee go global; reach U.S. markets.
• Content rights, premiums also part of stake sale deal.
• Started process of bringing down the pledged shares six-months back.
• Have received proposal from several interested parties.
• If the structure demands that strategic partners wants more stake, we are willing to look at it.
• Our bankers are confident of finding strategic partners by March-April 2019.

Shares of the Kolkata-based tea cultivator rose as much as 6.2 percent to Rs 98.40 after it reported September quarter earnings.

Key earnings highlights:

• Revenue up 13 percent at Rs 178 crore versus Rs 158 crore (YoY)
• Net profit rises 38.66 percent to Rs 35.47 crore versus Rs 25.58 crore (YoY)

Shares of the Chennai-based consumer finance company rose as much as 3.2 percent to Rs 1,471.80 after it announced plan to sell 25.9 percent stake in general insurance unit — Ageas for Rs 984 crore.

Sundaram Finance will hold 50 percent in general insurance unit after sale.

Shares of the Noida-based auto parts maker rose as much as 3.8 percent to Rs 173 despite missing Bloomberg consensus estimates in September quarter.

Key earnings highlights:

• Revenue at Rs 15,105 crore versus Rs 13,420 crore, up 12.6 percent (YoY)
• Ebitda at Rs 1,301 crore versus Rs 1,227 crore, up 6 percent (YoY)
• Profit at Rs 371 crore versus Rs 436 crore, down 15 percent (YoY); Estimate of Rs 509 crore
• Margin 8.6 percent versus 9.1 percent

• Ashok Leyland has 12.7 lakh shares change hands in a block. Stock down 9.5 percent at Rs 107.65.
• State Bank of India has 10 lakh shares change hands in a block. Stock up 0.9 percent at Rs 280.45.
• HDFC Bank has 15 lakh shares change hands in a block. stock up 0.9 percent at Rs 1,945.
• Ambuja Cements has 17 lakh shares change hands in a single block. Stock up 0.8 percent at Rs 207.45.

Buyers and sellers were not immediately known

Source: Bloomberg

Shares of the country’s largest drugmaker declined as much as 4.40 percent to Rs 537 after it reported loss in September quarter against expectation of profit of Rs 1,045 crore.

The company posted an unexpected net loss of Rs 219 crore against the Rs 912 crore profit reported in the year-ago period, Sun Pharma said in an exchange filing. The company posted a one-time loss of Rs 1,217 crore for the estimated settlement amount payable in an antitrust litigation related to sleep disorder drug modafinil in the U.S.

Other Highlights:

• Revenue up 4 percent at Rs 6938 crore.
• Ebitda up 11 percent at Rs 1531 crore.
• Margin at 22.5 percent versus 20.7 percent.
• Exceptional loss of Rs 1,214 crore due to antitrust litigation.
• Other income higher by 38 percent at Rs 351 crore.

Indian equity benchmarks moved higher paced by gains oil marketing companies after crude fell the most in over three years.

The S&P BSE Sensex rose 0.55 percent or 190 points to 35,334 and the NSE Nifty 50 Index advanced 0.6 percent or 62 points to 10,643.

Oil futures in New York were little changed on Wednesday, after plunging 7.1 percent in the previous session for the biggest one-day drop in more than three years after the OPEC warned demand for its crude is falling faster than expected.

Back home, seventeen of 19 sector gauges compiled by BSE were trading higher led by the S&P BSE Oil & Gas Index’s 2.45 percent drop. On the other hand, the S&P BSE IT Index was top loser, down 0.9 percent.

Indian bonds are set to rally after the central bank said it will purchase Rs 12,000 crore worth of debt and as crude oil, India's biggest import, slumped overseas.

The bond purchase by the RBI is part of the Rs 40,000 crore it plans to buy this month to ease some of the tight financial conditions prevailing in the banking system by injecting funds.

Oil, which saw an unprecedented decline on Tuesday, showed little signs of recovering as investors flee a market hammered by swelling supplies and a darkening demand outlook. The benchmark 10-year bond yield fell 4 basis points on Tuesday to end at 7.76 percent with foreign banks big buyers while state-run banks were net sellers.

Meanwhile, the drop in the oil prices is also set to give a leg up to the rupee. The dollar dropped 0.3 percent to close at 72.6750 on Tuesday and implied opening from the forwards suggest that the rupee will start trading at 72.30 per dollar although with Indian stocks still struggling, any gains are likely to rather shallow.

Who’s Meeting Whom

• Pidlite Industries to meet Wasatch Advisors on Nov. 14.
• Just Dial to meet Helios CM, Taiyo Pacific Partners and Prusik IM on Nov. 14.
• Bharat Forge to meet Farley Capital on Nov. 14.
• Inox Leisure to meet Capital Investment on Nov. 14.
• Matrimony.com to meet Kotak MF, TCG and other investors on Nov. 14.
• Mahindra Logistics to meet Axis Capital on Nov. 14.

Ashok Leyland (Q2, YoY)

• Revenue up 25.2 percent at Rs 7,608 crore.
• Net profit up 37.5 percent at Rs 459.6 crore.
• Ebitda up 31.7 percent at Rs 805.9 crore.
• Margin at 10.6 percent versus 10.1 percent.

Jindal Steel & Power (Q2, YoY)

• Revenue up 63 percent at Rs 9982.3 crore.
• Net profit at Rs 343.7 crore versus net loss at Rs 447.9 crore.
• Ebitda up 60.7 percent at Rs 2,207.4 crore.
• Margin at 22.1 percent versus 22.4 percent.
• Exceptional gain of Rs 255.5crore versus exceptional loss of Rs 149.7 crore.
• Steel Sales at 1.75MT versus 1.27MT (Consolidated)

Dilip Buildcon (Q2, YoY)

• Revenue up 2.6 percent at Rs 1623.7 crore.
• Net profit down 28 percent at Rs 83.2 crore.
• Ebitda down 1.3 percent at Rs 281.5 crore.
• Margin at 17.3 percent versus 18 percent.
• Finance Cost up 9.5 percent at Rs 121.6 crore.

Glenmark Pharma (Q2, YoY)

• Revenue up 14.4 percent at Rs 2581.3 crore.
• Net profit up 98.2 percent at Rs 404.9 crore.
• Ebitda up 13.3 percent at Rs 440 crore.
• Margin at 17 percent versus 17.2 percent.
• Other Income of Rs 139.9 crore in current quarter.

Corporation Bank (Q2, YoY)

• Net Interest Income up 17.6 percent at Rs 1457.6 crore.
• Net profit at Rs 103 crore versus net loss at Rs 1035.2 crore.
• Provisions at Rs 728.6 crore versus Rs 1,508.4 crore (QoQ)
• GNPA at 17.46 percent versus 17.44 percent (QoQ)
• NNPA at 11.65 percent versus 11.46 percent (QoQ)

Mahanagar Gas (Q2, QoQ)

• Revenue up 12.8 percent at Rs 762.9 crore.
• Net profit up 6.2 percent at Rs 136.3 crore.
• Ebitda up 4.9 percent at Rs 221.4 crore.
• Margin at 29 percent versus 31.2 percent.
• Volume up 3.03 percent at 2.96 MMSCMD.

Deepak Fertilisers & Chemicals (Q2, YoY)

• Revenue up 43.6 percent at Rs 1768.7 crore.
• Net profit down 58.2 percent at Rs 17.8 crore.
• Ebitda down 20.9 percent at Rs 115 crore.
• Margin at 6.5 percent versus 11.8 percent.
• Negative change in inventories of Rs 205.2 crore in current quarter.

Novartis (Q2, YoY)

• Revenue down 36.4 percent at Rs 106.6 crore.
• Net profit down 64 percent at Rs 9.4 crore.
• Ebitda loss at Rs 17.6 crore versus Ebitda profit at Rs 16 crore.

Engineers India (Q2, YoY)

• Revenue up 58.8 percent at Rs 681.4 crore.
• Net profit down 18 percent at Rs 97.8 crore.
• Ebitda down 34.2 percent at Rs 91.5 crore.
• Margin at 13.4 percent versus 32.4 percent.

Dalmia Bharat Sugar & Industries (Q2, YoY)

• Revenue down 28.6 percent at Rs 372 crore.
• Net profit down 4 percent at Rs 35.8 crore.
• Ebitda down 23.1 percent at Rs 49 crore.
• Margin at 13.2 percent versus 12.2 percent.

AstraZeneca Pharma (Q2, YoY)

• Revenue down 1.8 percent at Rs 161.4 crore.
• Net profit down 66.8 percent at Rs 9.1 crore.
• Ebitda down 58.4 percent at Rs 14.8 crore.
• Margin at 9.2 percent versus 21.7 percent.
• Finished Goods Purchases at Rs 27.4 crore versus Rs 47.8 crore.

Abbott India (Q2, YoY)

• Revenue up 5.2 percent at Rs 979.7 crore.
• Net profit flat at Rs 137.7 crore.
• Ebitda down 3.6 percent at Rs 194 crore.
• Margin at 19.8 percent versus 21.6 percent.
• Raw Material Cost at Rs 86.8 crore versus Rs 64 crore.

Nifty Earnings To Watch

• Grasim
• Mahindra & Mahindra

Other Earnings To Watch

• Motherson Sumi Systems
• Page Industries
• Rain Industries
• United Breweries
• Pfizer
• Apollo Hospitals
• CESC
• Future Retail
• Gujarat Fluorochemicals
• IPCA Laboratories
• Indian Hotels
• Thermax
• Ujjivan Financial Services

• Zee Entertainment Enterprises promoters plan to sell 50 percent stake in the company to a strategic partner. Promoters have a combined holding stake of around 41.62 percent stake in the media company as reported on Sept. 30 to the exchanges. The promoters will be divesting around 20.8 percent stake in the company, which will be around 20 crore shares aggregating to Rs 17,513.5 crore. Essel Group has appointed Goldman Sachs Securities India as their investment banker and LionTree as an international strategic adviser. The company expects outcome of the strategic review to be concluded by March-April 2019. (Press Release and Bloomberg News)
• Ashok Leyland’s MD & CEO Vinod K.Dasari to resign from company effective Mar.31 2019. Dheeraj Hinduja will step in as executive chairman with immediate effect. The company's Nominations and Remuneration Committee of the Board will meet shortly to decide the future course of action in identifying the next CEO and MD for the company.
• PNB Housing Finance: QIH withdrew from the joint sale process in which the company along with Punjab National Bank were proposing to sell 51 percent stake in the housing finance entity. In the joint communication received from both the interested parties stating that QIH will consider all options with respect to decreasing or increasing stake in the company depending upon the market conditions.
• Jet Airways CFO Amit Agarwal declined to comment on reports that Tata Group was eyeing stake in the company. He also added that the company is trying to sell Boeing 777 jets which would help clear almost entire aircraft debt. Vinod Dubey, CEO of Jet Airways stated that 15 percent of employees are not getting salary on time and the staff is not happy about the situation, he also hinted that current fare environment is not sustainable and it is imperative that fares rise. The company will take delivery of 15 737 Max planes in financial year 2020. Eventually the aviation company clarifies to exchanges that on Tata’s stake buy news is speculative in nature.
• Hindalco said Novelis will invest $175 million to expand aluminium production and recycling capabilities in Brazil. This investment will add 100 KT of rolling production and 60 KT of additional recycling, along with a new water sourcing system and 90 acre land.
• NCLAT to give verdict on Binani Cements insolvency case on Nov. 14 (Bloomberg News)
• Bharat Petroleum Corporation Ltd. appointed executive director, N Vijayagopal as the Chief Financial Officer of the company with effect from Nov. 13.
• Sasken Technologies received assessment order from the IT department under section 143(3) of the Income Tax Act, 1961 with a Rs 68 crore has been raised as a tax demand. The company stated that they are in the process of filing an appeal against the said order.