Bajaj Auto posts weak Q2, pins hopes on festive sales
Bajaj Auto is the first among auto majors to declare Q2 results, and the numbers are disappointing. Its net profit for Q2 dropped 19% as compared to the same quarter last year due to a 10% decline in volumes, restrictions on export benefits and lower other income. Further, in Q2FY20, the company reported a one-time tax-related gain of ₹182 crore, which was not available in this year. Nonetheless, the company has improved its operating margin to 18.2% (versus 16.9% in Q2FY20) by optimising its fixed costs. The company’s market share in the two-wheeler segment was intact at 18.2% in H1FY21 compared to the same period last year. In the ongoing festive season, the company sees strong indications of a recovery in volumes. While shares of Bajaj Auto ended flat (-0.7%), Hero Moto (-3.0%) and TVS Motors (-0.5%) saw selling pressure today.
JK Tyre rides on strong operational performance in Q2
JK Tyre rose 10.7% today, buoyed by revenue growth of 6% and sharp jump in its operating profit by 21% on a year-on-year basis. The improvement in operating profits was on due to aggressive cost-cutting measures. Improvement in sales was supported by a recovery in the automotive sector. The company also saw strong demand from the replacement market, which is performing better than the overall industry. Investor interest has increased in the tyre sector, as major tyre stocks such as MRF (4.5%), Apollo Tyres (7.9%), Ceat (7.8%) and TVS Srichakra (8.6%) have outperformed the Nifty Auto index (-0.5%) in October 2020.
Aurobindo Pharma slips after USFDA warning letter
Shares of Aurobindo Pharma were down nearly 6% intraday after the company received a warning letter from the USFDA for its oral solid manufacturing facility at Dayton, Ohio. While the company believes that business from this facility will not be impacted, it has not provided any details of the content of the warning letter. The company’s shares ended 3.3% lower. A USFDA warning letter is considered informal and advisory in nature. Recently, the USFDA had also issued warning letters to Shilpa Medicare and Panacea Biotec, after which their shares fell 8.6% and 5.0%, respectively.
Equitas SFB IPO fully subscribed on day-3; QIBs bid nearly 4 times but grey market premium missing
Equitas Small Finance Bank’s Rs 518 crore initial public offering (IPO) was fully subscribed on the third and final day of bidding for the issue. With still a few hours to go before the subscription window closes the issue has received bids for 22.22 crore units as against 11.58 crore equity shares that are on offer, translating to 1.93 times subscription rate. Equitas Small Finance Bank is the ninth IPO that primary markets have seen in the last two months. Retail investors have been at the front, rushing to invest in all issues, so far oversubscribing their portion in all the recent IPOs.
FIIs hike RIL stake to all-time high, now hold over 25% share in Mukesh Ambani firm
Foreign institutional investors (FIIs) have raised stake in billionaire Mukesh Ambani-led Reliance Industries to a record 25.2 per cent in the quarter ended September 30, according to the company’s regulatory filing.
Reliance Industries (RIL) on Thursday filed a statement showing the shareholding pattern for the quarter ended September 30.
Vedanta shareholders eye bonanza, board to consider interim dividend after failed delisting
Anil Agarwal-led Vedanta Ltd today informed the bourses that the company’s board will meet later this week to consider and approve the first interim dividend on equity shares for the current fiscal year. The move comes days after its subsidiary Hindustan Zinc announced an interim dividend of Rs 21.30 per equity share. According to the latest shareholding data available on the Bombay Stock Exchange’s website, Vedanta holds 274 crore shares of the Hindustan Zinc, translating to an interim dividend of Rs 5,842.9 crore. According to analysts, Vedanta could also distribute the dividend it received from Hindustan Zinc in May this year