RBL Bank's Q1 result meets estimates; profit up by 35% to Rs 1.9 bn

The bank's provision coverage ratio grew by 250 bps over the previous quarter to 60.41 per cent.

Share Market News » Private sector lender RBL Bank’s first-quarter net profit rose 35 per cent due to rise in interest income. RBL bank’s net profit rose to Rs 1.9 billion in the quarter ended June, in comparison to Rs 1.4 billion in the year-ago quarter. The bank's net interest income rose 46 per cent on a y-o-y basis.

The net interest margin (NIM), the difference between the yield on advances and cost of fund, grew to 4.04 per cent, against 3.8 in the previous quarter and 3.54 in the year-ago quarter. "We have crossed the milestone of 4 per cent and expect to maintain NIM at this level or even improve it, said Vishwavir Ahuja, MD and CEO of RBL Bank.

The gross non-performing assets (NPAs), as a percentage of total advances, in the present June quarter, stood at 1.4 per cent, flat against the previous March quarter. In the year-ago quarter, the gross NPA ratio was at 1.46 per cent.

The bank's provision coverage ratio grew by 250 bps over the previous quarter to 60.41 per cent. "60 per cent is considered a prudent level of provision. This is a comfortable level and we will continue to improve it," said Ahuja.

The deposit and credit grew at 27 per cent and 36 per cent respectively in the full-year period. Wholesale loans form 59 per cent of the bank's books while retail forms 41 per cent. While most of the wholesale loans of the bank comprise of working capital with a tenure less than two years, Ahuja said that the bank was moving towards a greater share of retail loans. "Both segments are showing strong growth and the book would be 50:50 in the next 2-3 years," he added.

Of the total advances, 33 per cent is unsecured. The unsecured book mainly comprises of Microbanking and card business. The capital adequacy ratio for the quarter was 14.23 per cent, an improvement against 13.06 per cent in the previous quarter. The bank does not plan to raise capital for the next seven to eight quarters. During the quarter, the bank took 100% stake in Swaadhar Finserv, which targets Microbanking and medium and small entrepreneurs.

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News Source : BS

TCS shares jump 5.5% to Rs 1,979; m-cap Rs 392.82 bn after Q1 result

The stock was the biggest gainer among the blue chips on both the key indices

 

 

Share Market News » Shares of Tata Consultancy Services surged 5.5 per cent today, adding Rs 392.81 billion to its market valuation after the company posted better-than-expected quarterly earnings.

The stock jumped 5.47 per cent to close at Rs 1,979.60 on BSE. During the day, it climbed 6.28 per cent to Rs 1,995 -- its 52-week high.

At NSE, shares of the company advanced 5 per cent to close at Rs 1,970.

The stock was the biggest gainer among the blue chips on both the key indices.

Led by the sharp gain in the stock, the company's market valuation zoomed Rs 392.81 billion to Rs 757.04 billion.

In terms of equity volume, 11.57 lakh shares of the company were traded on BSE and over 2 crore shares changed hands at NSE during the day.

"TCS first quarter results were better-than-expected on all fronts against our/street estimates," Emkay Global Financial Services said in a report.

Country's largest software exporter TCS on Tuesday posted 23.4 per cent rise in consolidated net profit to Rs 73.40 billion for the first quarter ended June 30, 2018.

The company had reported a net profit of Rs 59.45 billion in the same period previous fiscal, TCS said in a regulatory filing.

The Tata Group company -- which accounts for a lion's share of the group's overall profit -- saw its income from operations grow 15.8 per cent to Rs 342.61 billion during the reported quarter, up from Rs 295.84 billion a year ago.

Buying was also seen in other IT stocks, with HCL Tech rising 1.63 per cent, Infosys 1.37 per cent, Wipro 0.65 per cent and Tech Mahindra 0.65 per cent on BSE.

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News Source : BS

TCS Q1 net profit jumps 23.4% to Rs 73.40 billion; revenue up 15.8%

TCS Q1FY19 CC revenue growth at 4.1% QoQ is a meaningful beat to estimates and is highest in several quarters.

 

 

Share Market News » Shares of Tata Consultancy Services (TCS) rose 3% to Rs 1,928 per share on the BSE in early morning trade after the country’s biggest software services exporter posted a better-than-expected rise of about 23.5% year on year (YoY) and 6.3% quarter on quarter (QoQ) in first-quarter (Q1) net profit, helped by strong growth in its banking, financial services and insurance division (BFSI).

TCS has recorded a consolidated net profit of Rs 73.40 billion in April-June 2018 (Q1FY19) versus a profit of Rs 59.45 billion in the same quarter last year. While the revenues at the reported currency grew 15.8% YoY and 6.8% QoQ to Rs 342.61 billion, in constant currency (CC) terms, it rose by 9.3% year-on-year (YoY) and 4.1% sequentially.

Analysts on an average had expected profit of Rs 69.67 billion on revenue of Rs 341.69 billion for the quarter.

“TCS Q1FY19 CC revenue growth at 4.1% QoQ is a meaningful beat to estimates and is highest in several quarters. Revenue recovery has gathered further momentum with a definite growth revival in BFSI and retail verticals. Slowdown in these two verticals had adversely impacted FY18 growth and with the recovery double digit constant currency revenue growth is almost a certainty,” Antique Stock Broking said in a result review.

Overall, FY19 has started on a strong note for TCS. Company will outshine peer group in FY19 with CC revenue growth of ~12% while most of the peer group will grow at mid-single digit. TCS will also report YoY EBIT margin improvement and company has maintained aspirations to achieve 26%-28% EBIT margin range. Robust deal signings in 1QFY19 is after a very strong order booking in 4QFY18, the brokerage firm said with ‘buy’ rating on the stock and 12 month target price of Rs 2,090.

“TCS reported an above-expected operating performance in Q1FY19 driven by a beat on both revenue and margins. With a growth recovery in BFSI services in North America, management is confident of sustaining growth momentum in the medium term. Digital revenue growth accelerated for the fifth straight quarter, rising 44.8% YoY in CC terms,” analysts at BOB Capital Markets said in result review.

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News Source : BS

Info Edge gains 10% after agreement with SoftBank for joint investment

The stock surged 10% to Rs 1,288 on the BSE after the company said it has signed an agreement with SoftBank to jointly invest $90 million in Etechaces, the parent of PolicyBazaar.

Stock Market News » Shares of Info Edge (India) have surged 10% to Rs 1,288 per share on the BSE in intra-day trade after the company announced that it has signed an agreement with SoftBank to jointly invest $90 million in Etechaces Marketing and Consulting, the parent of PolicyBazaar, for an 8.93% stake on a fully diluted basis.

The investment will be routed through its subsidiary Diphda Internet Services floated earlier this month.

“The Company has entered into an agreement with SVF India Holdings (Cayman) (‘Soft Bank’), a wholly owned subsidiary of SoftBank Vision Fund L.P., of which SoftBank Group Corp. is a limited partner, whereby Soft Bank has agreed to invest an amount equivalent to about $ 45 million for 49.99% stake (on a fully diluted basis) in Diphda Internet Services (‘Diphda’), a wholly owned-subsidiary of the Company, for the time being,” Info Edge (India) said in a statement.

Thereby the company has also agreed to invest an amount equivalent to about $ 45 million in Diphda for 50.01% stake (on a fully diluted basis); and to jointly invest through Diphda, an amount equivalent to about $ 90 million in Etechaces Marketing & Consulting Pvt. Ltd. (‘Etechaces’) for 8.93% stake (on a fully diluted basis post completion of fund raise exercise with other investors), it added.

At 09:57 am; Info Edge (India) was trading 6% higher at Rs 1,250 on the BSE, as compared to 0.11% rise in the S&P BSE Sensex. A combined 217,344 shares changed hands on the counter on the NSE and BSE so far.

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Avanti Feeds turns ex-stock split; stock surges 19%

The stock rallied 19% to Rs 619 on the BSE in early morning trade on Tuesday as the stock of shrimp exporter turned ex-stock split in the ratio of 1:1 and ex-bonus in the ratio of 1:2 from today.

 

Stock Market News » Shares of Avanti Feeds have rallied 19% to Rs 619 per share on the BSE in early morning trade on Tuesday in an otherwise subdued market. The stock of shrimp exporter has turned ex-stock split in the ratio of 1:1 and ex-bonus in the ratio of 1:2 from today.

The company has fixed June 27, 2018 as the record date for the purpose of ascertaining the eligibility of the members for sub-division of equity shares from face value of Rs 2 each to Re 1 each and issue of bonus equity shares of Re 1 each in the ratio of 1:2, i.e.one equity share of Re 1 each for every two equity shares of Re 1 each (i.e. after sub-Division of shares).

The board of directors of Avanti Feeds at their meeting held on May 9, 2019 had approved the bonus issue and sub division of equity shares. Since then the stock had underperformed the market by falling 35% as compared to 0.43% rise in the S&P BSE Sensex till Monday.

Thus far in the current calendar year 2018, the stock tanked 38% against 4% rise in the benchmark index till yesterday. During the previous calendar year 2017, shares of Avanti Feeds zoomed 416% as compared to 28% rise in the Sensex.

At 09:39 am; the stock was trading 16% higher at Rs 606 on the BSE. On comparison, the Sensex was trading flat at 35,490, up 0.06%. A combined 1.17 million shares changed hands on the counter on the BSE and NSE so far.

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HDFC MF gets Sebi go-ahead for IPO after nearly two months on backburner

It will be entirely an offer for sale by promoter HDFC and UK’s Standard Life, who currently hold 57% and 38% respectively.

Stock Market News » HDFC Mutual Fund has obtained a go-ahead to launch its initial public offering (IPO), two investment bankers handling the issue said. “Sebi has issued final observation on the offer document. The company will have to respond to the market regulator,” said an investment banker, adding that the asset manager is looking to launch its IPO in the second or third week of July.

HDFC MF couldn’t be immediately reached for a confirmation. The processing status of draft offer documents filed with Sebi, uploaded on June 22, featured names of 26 companies that are awaiting approval. The list didn’t include the name of HDFC MF.

Among the companies awaiting a nod for their IPO include Lodha Developers, Mazagon Dock and Srei Equipment Finance. As per Sebi’s website, the IPO of Lodha Developers, country’s leading real estate company, has been “kept in abeyance for examination of past violations.”

According to an update on Sebi’s website on April 27, HDFC MF’s IPO was kept abeyance for past violations. “Sebi needed clarity on some issues, which were provided to them,” said a banker. Nomura, Kotak Mahindra Capital, Axis Capital, BofA Merrill Lynch, Citigroup, CLSA India, HDFC Bank, ICICI Securities, IIFL Holdings, JM Financial, JP Morgan and Morgan Stanley are the investment banks handling HDFC MF’s IPO.

HDFC MF’s IPO will be the second by a domestic asset manager after Reliance Nippon MF. HDFC MF’s offering will be entirely an offer for sale by promoter HDFC and UK’s Standard Life, who currently hold 57 per cent and 38 per cent respectively. In the IPO, HDFC is selling 4 per cent and Standard Life is offloading 8 per cent stake. The IPO size is expected between Rs 35 billion and Rs 38 billion. The maiden offering could value the asset manager at Rs 307 billion.

HDFC MF currently manages assets worth over Rs 3 trillion making it the second-biggest fund house in the country after ICICI Prudential MF.

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Tata Steel to raise Bhushan steel stake to 75%, to acquire additional 2.5%

Tata Steel’s subsidiary Bamnipal Steel had acquired 72.65 per cent stake in Bhushan Steel in May this year after the company failed to repay its Rs 560 billion in debts.

Stock Market News » Tata Steel plans to buy an additional 2.5 per cent stake in Bhushan Steel from lenders, taking its stake from 72.65 per cent to over 75 per cent. This would make merger with Bhushan Steel easier.

Lenders have given the green light to the merger of Bhushan Steel with Tata Steel in the current fiscal year itself. “Indian banks hold more than half of the minority-held shares, and hence the voting on merger resolution would be a smooth affair,” said a banking source.

Tata Steel Ltd. (TATASTEEL) – Company History

Tata Steel is one of the world’s largest steel companies with a steel production capacity of approximately 27.5 million tonnes per annum (MnTPA) as on 31 March 2017. The company is a diversified steel producer with major operations in India Europe and South East Asia. The company has manufacturing units in 26 countries and a commercial presence in over 50 countries. Tata Steel is the second largest steel producer in Europe with a crude steel production capacity of over 12.1 million tonnes per annum.The company together with its subsidiaries is engaged in the manufacture and sale of steel products in India and internationally. They offer hot and cold rolled coils and sheets galvanized sheets tubes wire rods construction rebars and bearings. Tata Steel is one of the few steel companies that are fully integrated – from mining to the manufacturing and marketing of finished products.The company also involves in prospecting discovering and mining iron ore coal ferro alloys and other minerals; designing and manufacturing plants and equipment for steel oil and natural gas energy and power mining railways ports aviation and space industries; and agricultural implements. Further they offers alumina dolomite and monolithic refractories as well as silica refractories for coke ovens and the glass industry; manufactures bricks; sponge iron lumps and fines; and rolls for applications in integrated steel plants power plants and government mint as well as paper textile and food processing sectors.Tata Steel’s operations are grouped under six Strategic Business Units include Bearings Division Ferro Alloys and Minerals Division Agrico Division Tata Growth Shop (TGS) Tubes Division and Wire Division.

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