Market Closing Situation
As per provisional closing data, the barometer index, the S&P BSE Sensex, jumped 366.64 points or 0.64% at 57,858.15. The Nifty 50 index advanced 128.85 points or 0.75% at 17,277.95. Both the indices have lost over 6% in the past five sessions.
In the broader market, the S&P BSE Mid-Cap index rose 1.03% while the S&P BSE Small-Cap index gained 0.81%.
The market breadth was positive. On the BSE, 1,981 shares rose and 1,363 shares fell. A total of 90 shares were unchanged.
The markets will remain closed tomorrow (26 January 2022) on account of Republic Day.
Buzzing Index:
The Nifty FMCG index rose 1.28% to 36,401.55. The index fell 2.37% in the past trading session.
Radico Khaitan (up 4.34%), Godrej Consumer Products (up 3.84%), Tata Consumer Products (TCPL) (up 2.55%), United Spirits (up 2.35%) and United Breweries (up 2.29%) were the top gainers in the FMCG segment.
Pidilite Industries declined 2.20%. The company's consolidated net profit declined by 20% to Rs 359 crore as compared to the same quarter last year. Net sales grew by 24% to Rs 2,841 crore in Q3 FY22 over Q3 FY21. EBITDA before non-operating income in the third quarter was Rs 550 crore, which is lower by 14% over the same quarter last year. Profit before tax and exceptional items (PBT) in Q3 FY22 stood at Rs 487 crore, down 19% Y-o-Y.
Stocks in Spotlight:
Maruti Suzuki India surged 7.49%. The auto major recorded 48% decline in net profit to Rs 1,011.3 crore on as net sales remained flat at Rs 22,187.6 crore in Q3 FY22 over Q3 FY21. As compared with Q2 FY22, the company's net profit and net sales are higher by 113% and 15%, respectively. The company sold 4,30,668 vehicles the third quarter, which is lower by 13% as compared with 4,95,897 vehicles sold in the same period last year. Sequentially, the sales volume is higher by 13%. Operating EBIT declined 38% Y-o-Y to Rs 919 crore in Q3 FY22. Operating EBIT margin was 4.1% in Q3 FY22 as against 6.7% in Q3 FY21.
Axis Bank soared 6.48%. The private sector bank's net profit increased by 224% to Rs 3,614 crore in Q3 FY22 from Rs 1,117 crore in Q3 FY21. Total income in the third quarter rose by 15% Y-o-Y to Rs 21,101 crore. The bank's operating profit for the quarter grew 17% Y-o-Y and 4% Q-o-Q to Rs 6,162 crore. Net interest income (NII) grew 17% Y-o-Y and 10% Q-o-Q to Rs 8,653 crore. Net interest margin (NIM) for Q3 FY22 improved by 14 bps Q-o-Q to 3.53%. Non-interest income (comprising of fee, trading profit and miscellaneous income) for Q3 FY22 stood at Rs 3,840 crore, up 31% Y-o-Y and 1% Q-o-Q.
Provisions (excluding provision for tax) declined by 64% to Rs 1,335 crore in Q3 FY22 from Rs 3,757 crore in Q3 FY21. Provision coverage ratio (including specific + standard + additional + COVID-19 provisions) stood at 130% of GNPA as on 31 December 2021. Specific loan loss provisions for Q3 FY22 were Rs 790 crore as compared to Rs 927 crore in Q2 FY22. The bank holds cumulative provisions (standard + additional other than NPA) of Rs 13,404 crore at the end of Q3 FY22. The net non-performing assets aggregated to Rs 6,513 crore as at 31 December 2021 as against Rs 7,200 crore as at 30 September 2021 and Rs 4,610 crore as at 31 December 2020. The net NPA ratio was 0.91% as at 31 December 2021 as against 1.08% as at 30 September 2021 and 0.74% as at 31 December 2020. Total deposits increased by 20% Y-o-Y to Rs 7,71,670 crore as at 31 December 2021. The bank's advances grew 17% Y-o-Y to Rs 6,64,866 crore as on 31 December 2021.
Federal Bank jumped 4.41%. The private bank posted a 29.1% rise in standalone net profit to Rs 522 crore in Q3 FY22 from Rs 404 crore posted in Q3 FY21. The bank's total income stood at Rs 3,926.75 crore in Q3 FY22 as compared to Rs 3,934.90 crore in Q3 FY21. Operating profit before provisions and contingencies fell 4.4% year on year to Rs 914.29 crore in Q3 FY22. Net interest income came at Rs 1,539 crore in Q3 FY22, 7% higher than Rs 1,437 crore posted in the same quarter last year. Net interest margin improved marginally to 3.27% in Q3 FY22 from 3.22% in Q3 FY21. Provisions and contingencies contracted 48% to Rs 213.9 crore in Q3 FY22 from Rs 4141 crore in Q3 FY21. The capital adequacy ratio stood at 14.37% in Q3 FY22 as compared to 14.31% in Q3 FY21. Provision coverage ratio stood at 79.62% in Q3 FY22 compared to 86.32% a year earlier.
Burger King India rose 0.41%. The firm's net loss in Q3 FY22 narrowed to Rs 15.15 crore from Rs 29.02 crore in Q3 FY21. Revenue from operations in the third quarter was Rs 279.89 crore, up 72% Y-o-Y. Gross profit was Rs 184.92 crore in Q3 FY22, up by 77.38% from Rs 104.25 crore in Q3 FY21. The company EBITDA in Q3 FY22 was at Rs 32.82 crore as against Rs 24.09 crore in Q3 FY21, up 36% Y-o-Y. However, EBITDA margin in the third quarter had declined to 11.7% from 14.8% in the corresponding quarter last fiscal. During the quarter, Burger King added 20 restaurants and as on 31 December 2021, its total restaurant count was 294. According to the company, presently 9 restaurants are under construction and 65 are in pipeline.
IndiaMART InterMESH tumbled 14.34%. The company's consolidated net profit declined 12.47% to Rs 70.20 crore on 8.35% rise in net sales to Rs 188.10 crore in Q3 December 2021 over Q3 December 2020. On a consolidated basis, profit before tax (PBT) fell 12.39% year-on-year (Y-o-Y) to Rs 93.30 crore in Q3 December 2021. IndiaMART InterMESH said the growth in revenue was driven by improvement in realization from existing customers and increase in number of paying subscription suppliers. Deferred revenue grew by 25% Y-o-Y to Rs 790 crore as at 31 December 2021. EBITDA was Rs 79 crore (down 10% Y-o-Y). EBITDA margin for Q3 FY22 stood at 42%, lower than 51% in Q3 FY21. EBIT for the period was Rs 75 crore (down 10% Y-o-Y) with EBIT margin of 40% in Q3 FY22 as against 48% in Q3 FY21.
SBI Cards and Payment Services advanced 4.41%. The company reported an 84% jump in net profit to Rs 385.7 crore on a 23.6% rise in total income to Rs 3,139.66 crore in Q3 FY22 over Q3 FY21. SBI Cards said increase in revenue was primarily due to higher income from fees and services in Q3 FY22. Profit before tax grew by 83% to Rs 518 crore in Q3 FY22 over Q3 FY21. Earnings before credit costs increased by 23% to Rs 1,144 crore in Q3 FY22 as compared to Q3 FY21. Total operating cost rose 28% year on year to Rs 1,719 crore in Q3 FY22, due to higher business volumes & festive campaigns. Finance costs increased by 6% to Rs 277 crore in Q3 FY22 from RS 261 crore in Q3 FY21.
The Ramco Cements slumped 4.78%. The company's standalone net profit declined 59% to Rs 83 crore despite a 16% rise in revenue to Rs 1,556 crore in Q3 FY22 over Q3 FY21. EBITDA fell by 41% to Rs 238 crore in Q3 FY22 from Rs 403 crore in Q3 FY21. While the variable costs had gone up due to sharp fuel price increase, cement prices had declined sharply in Dec'21, the company said. Cement sales rose 15% Y-o-Y to 3 million tonnes while generation of wind power declined by 35% Y-o-Y to 2.28 crore units in the third quarter.
Global Markets:
The Dow Jones Futures were down 164 points, indicating a negative start in the US markets today.
Shares in Europe rebounded while Asia declined on Tuesday as investors braced themselves for the meeting of the U.S. Federal Reserve this week, and watched for developments in Ukraine as tensions with Russia grow.
The Federal Open Market Committee is due to meet on Tuesday and Wednesday to decide on the next steps for U.S. monetary policy. Rising inflation is a major concern for the U.S. central bank and investors will listen closely to hear how worried the Fed actually is. Chairman Jerome Powell is due to brief the media on Wednesday afternoon after the FOMC releases its statement.
In Asia, South Korea's economy grew 1.1% in the fourth quarter of 2021 compared to the previous quarter, the Bank of Korea said in a press release on Tuesday. For the full year, the country's GDP expanded by 4% in 2021, the fastest in 11 years, as per reports.
Geopolitical tensions are in focus, with fears of a Russian invasion of Ukraine growing, as the military buildup at the border shows no sign of dissipating and crisis talks remain at an impasse, as per reports.
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