Sequent Scientific sees profit booking
- Shares of the animal healthcare company plunged nearly 9% after it reported weak results for the March quarter. Its net profit declined 38% month-on-month to ₹23.5 crore, due to higher employee and other expenses.
- Meanwhile, revenue from operations was nearly flat at ₹362 crore. The stock witnessed profit booking today after rising nearly 67% so far in 2021.
Dish TV posts weak Q4
- The direct-to-home service provider posted a loss of ₹1,415 crore in Q4. It had also suffered a loss of ₹1,456 crore in March 2020. During the same period, its total revenue fell by 13.5%, mainly due to lower marketing and promotional fees and other income.
- The company’s debt currently stands at ₹810 crore, and it has received approval from the board to raise ₹1,000 crore via a rights issue. The management believes that business revenue will improve as discretionary spending revives due to the normalisation of economic activities. Dish TV’s shares were down 1.4% today.
Second wave hurts manufacturing sector
- India’s manufacturing sector contracted for the first time in 11 months as lockdowns during the second wave dented demand. In the wake of declining factory orders and production, India’s Manufacturing Purchasing Managers’ Index (PMI) dropped to 48.1 in June from 50.8 in May.
- A reading below 50 indicates contraction. A consoling factor in the reading is that the intensity in the contraction is lower than what was witnessed during the first wave. Going forward, any signs that the pandemic is subsiding could boost growth projections and business sentiments.
Auto sales back on track
- Auto companies witnessed a jump in their sales volumes in June, after a washed out May. During May, several auto companies were forced to keep their plants shut due to the second wave. However, the phased opening of the market brought back the pent-up demand.
- Among the passenger-vehicle (PV) makers, sales of Maruti Suzuki (+0.9%) jumped up 217% month-on-month. Similarly, demand for M&M’s (+0.2%) utility vehicles was strong, while its PV sales more than doubled. Tata Motors (+1.4%) also posted a 59% rise in its car sales.