State-run lender Union Bank of India reported a net profit of Rs 153 crore for the quarter ended December 2018 as compared with the Rs 1,250-crore loss in the year-earlier period. This is the third straight quarterly profit that the bank has made. The lender reported a rise in gross non-performing assets (NPA) to 15.66% of total advances for the quarter ended December, up from 13.03% in the same quarter of the previous year. Net NPAs also rose to 8.27% from 6.96% a year ago. Net interest income in the quarter was at Rs 2,493 crore, marginally down from Rs 2,548 crore.
Mumbai-based Prabhat Dairy yesterday announced that it has signed definitive agreements to sell its dairy business to Tirumala Milk Products Private Limited, a wholly-owned Indian subsidiary of French dairy group Lactalis, for Rs 1,700 crore. While Lactalis is one of the world's largest dairy players with an annual revenue of Euro 17 billion, Tirumala is South India's second-largest dairy company. Prabhat has an aggregate milk processing capacity of 1.5 million litres per day and annual revenue of Rs 1,554 crore. The share price of Prabhat Dairy surged 20% on Tuesday to touch an intra-day high of Rs 111.65.
Benchmark indices Sensex fell 134 points to close at 36,444 while Nifty declined 0.36% to settle at 10,922. Auto and metal stocks led the decline today with M&M, Tata Steel and Vedanta falling over 3%. Other major losers in the Sensex 30 pack included Maruti Suzuki, Bharti Airtel, HCL Tech and L&T, down between 1% and 2%. Among the gainers, Sun Pharma surged 5% while Kotak Mahindra Bank, Bajaj Finance and Hero MotoCorp rose between 1% and 2%. IMF in its latest forecast trimmed its global growth forecast to the weakest in three years.
Tata Consultancy Services Ltd (TCS) has undertaken its first management changes after Rajesh Gopinathan took over as CEO two years ago. India’s largest information technology services company appointed new deputy heads for its human resource function and manufacturing vertical, with an eye on the future.TC named Ritu Anand, formerly deputy head of human resources (HR), as the new head of global diversity, while Milind Lakkad has been appointed as the head of the manufacturing industry unit, with the additional responsibility of deputy HR head.
Shree Cement’s net profit for December quarter fell 10% year-on-year (YoY) to Rs 301.3 crore from Rs 333 crore during the same quarter of last year. The revenues rose 21% at Rs 2,781 crore against Rs 2,302.7 crore in the year-ago period. Segment-wise, its cement business grew 16% at Rs 2,559 crore, while power segment rose 44% at Rs 502.6 crore. At 13:46 hrs on Tuesday, the stock was quoting at Rs 15,720.00, up Rs 35.65.
South India's leading two wheeler maker, TVS Motor Company, on Tuesday reported 16% rise in standalone net profit at Rs 178.4 crore for the third quarter ended December 31, 2018 against a net profit of Rs 154.3 crore in the October-December 2017 quarter. The company's revenue increased to Rs 4,664.6 crore in the October-December period, over Rs 3,703.1 crore in the same quarter a year ago. During the quarter ended December 2018, the overall two-wheeler sales of the company including exports grew by 18.9% to 9.50 lakh units from 7.99 lakh units in the quarter ended December 2017.
Shares of metal companies were trading under pressure with most of the frontline stocks like Tata Steel, Jindal Steel and Power (JSPL), Steel Authority of India (SAIL), Coal India and Hindustan Zinc touched their respective 52-week lows. The Nifty Metal Index, the largest loser among sectoral indices, was down 2.55% on Tuesday after the Chinese economy reported its slowest growth rate in the last 28 years. After witnessing a robust double-digit growth for three decades, the Chinese economy has been on a downturn over the years as the country deals with bad debts and a decline in exports, IANS reported.
L&T Finance Holdings, unit of engineering firm Larsen & Toubro, Monday posted an 81% rise in consolidated net profit to Rs 581 crore during the third quarter ended December 31, 2018. The company's consolidated net profit stood at Rs 325 crore in the year-ago period.
Total income of the company also increased to Rs 3,516.38 crore during the quarter under review as against Rs 2,594.62 crore in the year-ago period. Average assets under management (AUM) increased to Rs 69,080 crore from Rs 60,313 crore in the corresponding quarter a year ago, the company said.
Shares of Sun Pharma jumped 5.1% to Rs 418.70 in the early trade on BSE after the company issued a series of clarifications. The company informed that the company’s domestic formulation distribution shall be transitioned from Aditya Medisales, the current distributor, to a wholly-owned subsidiary of Sun Pharma with effect from Q1FY20. Further, Sun Pharma also confirmed that neither any loans nor guarantees have been given to Suraksha Realty. Last Friday, shares of the company crashed to a six-year low after a news report suggested new whistleblower complaints filed with SEBI.
Shares of Hindustan Zinc plunged over 4% to hit an 18-month low of Rs 256.35 after the company on Monday reported a weak performance for the quarter ended December. The company reported 4% year-on-year (YoY) decline in net profit at Rs 2,211 crore in December quarter. Operational revenue declined by 6% YoY to Rs 5,540 crore, due to lower metal prices. The losses were however partly offset by rupee depreciation. In the past nine months, Hindustan Zinc has underperformed the market by falling 21%, as compared to a 6% rise in the S&P BSE Sensex.
Shares of Ashok Leyland plunged by over 3% to touch a 52-week low of Rs 87.20 after brokerage house CLSA maintained ‘Sell’ rating on the stock and also cut the target price to Rs 75 from Rs 85 earlier. CLSA sees a high likelihood of a downturn after 4 years of up-cycle for truck market and expects competition to intensify against Tata with the latter’s high focus on regaining its lost market share. The stock has already corrected 44% from its peak
The country’s largest lender, SBI, on Saturday said it has raised $1.25 billion through bonds from overseas market. The successful issue reflects the strong niche investor base that SBI has created for itself in offshore capital markets, allowing it to efficiently raise funds even during periods of increased currency and rates volatility, the lender said. Bonds were listed at India International Exchange IFSC Ltd, a subsidiary of BSE, at Gujarat International Finance Tec-City (GIFT City) IFSC.
After their merger with Bank of Baroda, Dena Bank and Vijaya Bank will be excluded from various NSE indices. The two state-owned banks will be replaced by Corporation Bank and CreditAccess Grameen in Nifty 500, Nifty Smallcap 250 and Nifty MidSmallcap 400 indices. “The Index Maintenance Sub-Committee has decided to replace Dena Bank and Vijaya Bank from various indices on account of the scheme of arrangement for amalgamation," the NSE said in a press release.
The benchmark Sensex opened on a cautious note on Monday but recovered to rally 250 points, helped by continued buying in select bluechips by domestic. The NSE Nifty, too, rose 53.10 points to 10,960.05 during the day. Major gainers included Sun Pharma, RIL, Infosys, Bajaj Finance, Bharti Airtel, Tata Motors, Yes Bank, TCS, HUL, Tata Steel, NTPC, ICICI Bank, HCL Tech, Asian Paint, Vedanta, ITC, M&M, Maruti Suzuki and HDFC Bank.
Shares of Larsen & Toubro (L&T) Ltd opened over 3% lower on Monday after market regulator SEBI denied the company permission for its first ever share buyback plan. The company had planned to buy back 6.1 crore shares at Rs 1,475 a share. On Saturday, SEBI had rejected L&T’s proposal stating that the buyback plan would breach the regulatory debt-to-equity ratio as per the consolidated financial statements of the company. As per Nomura research, even a smaller buyback is not feasible since the company's current debt to equity at 2.24 times is already above the SEBI-mandated limit of 2.0 times.