Market update for 3 February 2021 – Jubilant Foodworks’ Q3 profit up on business recovery

Services PMI expands in January

  • India’s purchasing managers’ index (PMI) for services rose to 52.8 in January from 52.3 in the previous month, indicating a pick up in the services activity. 
  • It is widely believed that the roll-out of the vaccine would support the demand growth in the economy. Going forward, the rising services inflation triggered by the pent-up demand could be an area of concern.

Glenmark secures USFDA approval for seizure drug

  • The pharma major said it has received final approval from the US health regulator for its seizure-treatment drug Topiramate. The drug is a generic version of Qudexy XR capsules sold in the US, which had annual sales of approximately $120 million in 2020.
  • The company currently has 169 products that are authorised for distribution in the US market. The stock closed 2.8% higher today.

Jubilant Foodworks’ Q3 profit up on business recovery

  • The company, which operates Domino’s Pizza restaurants in India, posted a consolidated profit of ₹123 crore in Q3. Its profit rose by about 22% YoY, while revenue from operations remained nearly flat at ₹1,069 crore.
  • The rise in profits is a result of a recovery in business and strong improvement in margins. Further, Domino’s delivery and take-away channels both witnessed rapid growth. Nonetheless, the stock closed 1.6% lower today. 

Bajaj Consumer Care surges on Q3 profits

  • The FMCG player posted an 18% YoY rise in Q3 consolidated net profits at ₹57 crore, and similar growth in net sales to ₹243 crore. The company’s modern trade and institutional business together grew 25% YoY. Its e-commerce segment witnessed 3x growth, albeit on a smaller base and now contributes nearly 2.5% of total sales. 
  • Meanwhile, the company also declared an interim dividend of ₹6 per share, with the record date set as 12 February 2021. The stock surged 20% and hit its upper circuit today.