Market Update for 16 July 2021 – Zomato IPO ends with a bang

Tata Steel Long reports a profitable Q1

  • The sponge-iron producer reported a consolidated net profit of ₹331 crore in the June quarter as compared to a loss of ₹131 crore in June 2020. The turnaround was led by a 158% jump in revenue to ₹1,697 crore.
  • The results were announced yesterday after market hours, and today the stock opened at its lifetime-high of ₹1,173. However, it gave up the early gains and closed 0.3% lower.

Investors lap up IPOs

  • The online food delivery platform Zomato received strong investor interest with its shares being oversubscribed by over 38 times on day 3. Meanwhile, the specialty chemicals maker Tatva Chintan Pharma Chem’s IPO, which opened today, was also subscribed over 4 times.
  • Meanwhile, Paytm has also jumped onto the IPO bandwagon.  The digital payment platform has filed its draft papers with the SEBI for an IPO upto ₹16,600 crore, supposedly India’s biggest public issue till date.

Cyient soars after strong Q1 results

  • Shares of IT services company Cyient surged 11.7% today after it reported robust results for the June quarter. Its consolidated net profit rose 3.9% sequentially to ₹115 crore.
  • Meanwhile, revenue from operations fell 3.2% sequentially to 1,058 crore. The dip in revenue was mainly due to lower revenues from the design-led manufacturing (DLM) segment. The company said that in FY22, it expects double-digit revenue growth in its Services business (80% of total revenues) and 20% growth in its DLM business.

L&T Infotech reports healthy Q1

  • For the June quarter, the IT company reported its best-ever sequential revenue growth in dollar terms. In rupee terms, the revenue grew by 5.9% QoQ to ₹3,462 crore. The profit also rose 9% sequentially to ₹496 crore.
  • While the company has not given any guidance, it mentioned that it is confident about its future prospects because of the strong demand and healthy pipeline. Shares of the company had risen 10% over the last two days, but witnessed profit booking today and fell 3% today.