Market update for 8 February 2021 – Mrs Bectors posts robust profit growth

Crude oil continues to climb

  • The price of crude oil is on a rise for the fourth month in a row. The price rise is supported by a unique situation wherein the demand outlook is improving as vaccine rollout gathers pace across the world. 
  • The supply, on the other hand, is under control as the OPEC+ nations continue to maintain output cuts. Crude oil has risen over 10% this month.

Mrs Bectors posts robust profit growth

  • The company that recently went public has reported an 86% YoY growth in its profit after tax to ₹21 crore during Q3. Its revenues grew 11% YoY to ₹226 crore.
  • Its bread-bakery and biscuit exports grew 38% and 21% YoY, respectively, helping overall revenue growth. The institutional bakery sales fell 32% YoY due to Covid-19 restrictions. However, sales are picking up as restaurants have opened after the relaxation of restrictions. The stock closed almost flat (-0.2%) today.

Affle gains after strong quarter 

  • The mobile-marketing services provider reported a 59% surge in revenue from operations in Q3 at ₹150 crore. Meanwhile, profit after tax grew 49% to about ₹30 crore.
  • While the average cost per converted user (CPCU) remained broadly constant over the year, it saw a 50% YoY jump in the number of converted users to 30 million users. The stock gained nearly 3% today.

Gujarat Gas soars on impressive Q3

  • The Ahmedabad-based gas distributor nearly doubled its Q3 profits year-on-year to ₹392 crore. Revenues rose about 13% to ₹2,885 crore supported by a 23% YoY growth in gas sales volumes.  
  • Improvement in sales, lower gas cost and reduction in finance costs led to the surge in profitability. Following the result, the stock closed with gains of nearly 14%, supported by strong volumes.