- #Sensex, #Nifty trade in red
- #KotakMahindraBank, #RIL, #HUL
Find out what's happening in trade so far with Hersh Sayta on 'Market IQ'. #NDTVProfitLive
- #KotakMahindraBank, #RIL, #HUL
Find out what's happening in trade so far with Hersh Sayta on 'Market IQ'. #NDTVProfitLive
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TVTranscript
00:00 Benchmark indices flat as IndusInd Bank, HUL fall, Coal India, Kotak Bank, Power Grid
00:27 emerge as top gainers.
00:32 Sectoral action mixed, Media comes out as the top sectoral gainer, on the other hand
00:37 FMCG and Realty are the top losers.
00:42 Kotak Mahindra Bank gains 4% even as Q3 net profit misses estimates.
00:47 Net interest income grows 16% to Rs.6553 crore while net profit is up 7% year over year.
00:57 Reliance Industries Q3 net revenue and profit declines on refinery shutdown misses analyst
01:02 estimates.
01:06 And HUL falls as the company's third quarter results miss analyst estimates.
01:10 Net profit rises 1.1% while revenue declines 0.2%.
01:16 Good afternoon, welcome you are watching market IQ on NDTV profit.
01:31 It's a day where markets are super sanguine and it's an extremely tight band in which
01:36 we are trading.
01:38 Let me quickly take it to where the nifty 50 is currently at around a tenth of a percent
01:42 of gains.
01:43 We are largely in the green but you are seeing markets trade in quite a tight band nonetheless.
01:50 Let's quickly go on to some of the key players which are buzzing in trade and within that
01:55 you are seeing the likes of a Kotak Mahindra Bank which is up three and a half plus percent.
02:00 Good set of numbers coming in from Kotak and that's leading the stock higher as we speak.
02:06 You are seeing outside of that the likes of a Coal India up roughly 4% Power Grid a percent
02:12 and a half higher.
02:13 Britannia also with gains of around one one thirds of a percent.
02:17 Among the losers what we are seeing is HUL is down three odd percent on the back of those
02:22 weakest numbers that have come through.
02:24 But then you are seeing TCS down a percent and a half.
02:27 Indus continues its slide for a second consecutive day.
02:30 You're seeing M&M also down 1.3 odd percent and then you have the FMCG pack which is in
02:36 focus largely because of HUL's numbers.
02:40 On to news with regard to where we are on the broader markets.
02:44 Nifty Mid Cap and Small Cap definitely performing much better than the benchmark.
02:49 You're seeing two thirds of a percent of gains on the Nifty Mid Cap.
02:53 You also have around half a percent higher on the Nifty Small Cap.
02:56 So those indices doing quite well.
02:59 Let's quickly have the advance decline ratio to get more perspective on what's happening
03:03 there.
03:05 But while we are at it we'll also look at where the sectoral indices are doing.
03:10 There you go.
03:11 The advance decline ratio largely in one is to one in favor of the advances a wee bit.
03:18 But outside of that you are seeing a fairly sanguine day.
03:20 In terms of where sectoral indices are at Nifty, IT, FMCG no surprises there.
03:25 In fact reality is a bit of a surprise there in the loser basket.
03:30 While PSE gains for a second consecutive day, you're seeing Media Energy both post gains
03:35 along with Nifty Bank.
03:37 If we can have the constituents of the Nifty Bank because you have focus on both Kotak
03:41 Mahindra Bank as well as ICICI Bank, both of who will be declaring results.
03:46 You also have outside of this pack you have the likes of a Union Bank which will come
03:50 out with numbers.
03:51 But you see top of the pack there Kotak Mahindra Bank up 3.1 percent in trade.
03:57 But we'll stick with Kotak Mahindra Bank, they've just declared their Q3 numbers and
04:01 we'll try to break down those numbers a little bit more.
04:03 We have with us Pragati who's going to give us a complete picture of what's happening.
04:09 Pragati.
04:10 Hi Harsh, thanks so much for giving it to me.
04:12 Yes, Kotak Mahindra Bank has just come out with this third quarter numbers and contrary
04:17 to what has been the pattern of the bank over the last couple of quarters, this time the
04:22 net profit which is up about 7.6 percent, it has missed some of the analyst estimates
04:28 because analyst was estimating about a 13 percent rise in the net profit of the bank
04:33 but it has increased just about 7.6 percent.
04:37 So if you have to see the stand-alone numbers, the net profit is up as I mentioned 7.6 percent
04:42 to Rs.3,005 crore as against the estimate of Rs.3,100 crore.
04:47 The net interest income however is up about 16 percent and the other income is up 17.8
04:53 percent.
04:54 So if we can see, if we have to draw a conclusion, the profit is up 7.6 percent on higher other
04:59 income and not on the core income of the bank.
05:02 The asset quality once again is largely flat.
05:05 We're not seeing much improvement or worsening on that front.
05:09 The gross NPAs are at 1.73 percent which is like up of like one bit so we can say it's
05:16 largely flat.
05:17 The net NPA ratio has improved slightly up 3 bits to 0.34 percent quarter on quarter.
05:25 The net interest margin again no big improvement but there's not even any compression.
05:29 It's flat at 5.22 percent which is unlike because other banks are seeing compression
05:34 in the margins and Kotech Mahindra Bank has largely been able to maintain that level if
05:39 not improved or worsened.
05:41 Provisions now that is one number Harsh we are definitely looking at because provisions
05:45 are seeing a sharp rise, they're up threefold to 579 crore on a yearly basis and the bank
05:51 has explained at least in its numbers that they have provided for 190 crore against the
05:57 alternate investment fund and 65 crore against the securities.
06:01 Now that is provision is one number that we are seeing because they are sharply up.
06:06 If you have to look at the advances, advances are up 19 percent but the deposits are up
06:12 about 4 percent year on year.
06:14 CASA ratio once again is seeing a compression of 60 bips quarter on quarter which is about
06:20 47.7 percent for the quarter.
06:22 That's a quick wrap for you on the numbers.
06:24 We'll bring you more updates as we have them.
06:26 Right.
06:27 Thanks so much for that Pragati.
06:28 Two numbers standing out for me in that pack is your net interest margin at 5.22 percent
06:33 holding up fairly well and your 19 percent growth number.
06:36 But we'll switch focus ICICI Bank will also be in focus.
06:40 Mind you 7 percent of the Nifty ICICI Bank alone and of course December quarter numbers
06:46 we'll continue to focus on that.
06:48 Profit as well as NII are expected to improve.
06:51 Vishy is here with all of what to expect.
06:53 Vishy take it away.
06:56 So ICICI for the third quarter is expected to report about 9,950 odd crore worth of net
07:01 profit.
07:02 This is going to be about 20 percent higher year on year.
07:05 Similarly, on the net interest income side the growth is expected to be about close to
07:09 1.2 odd percent with NII coming at 17,979 crore.
07:14 This is expected to be of course lower than what ICICI Bank is used to on a quarterly
07:18 basis simply because the deposit cost would have gone up likely in the third quarter which
07:23 will bring down that NII.
07:25 And primarily because of that you will also see some impact on the net interest margin.
07:30 Having said that the management did guide during the second quarter results that the
07:34 NIM contraction will be slower than before simply because the bank has completed most
07:41 of the repricing of deposits in the previous quarters.
07:43 In the current quarter some of it is left which will start playing out during the quarter.
07:48 The advances growth is expected to be strong during this quarter.
07:52 Remember in September 30 the bank reported about 11 lakh crore worth of advances.
07:57 On the deposit front the deposit stood at 12.913 lakh crore roughly for ICICI Bank.
08:02 So on the advances side you will see a strong growth.
08:05 Deposit size we need to watch out especially what happens with that CASA bulk sort of addition
08:12 of those numbers where they stand during the third quarter that will also be a key monitorable.
08:17 On the asset quality front of course ICICI Bank has not had trouble for a very long time.
08:21 Gross NPA ratio is about 2.48% as of 30th September.
08:25 That's estimated to be coming down during the third quarter.
08:29 Right.
08:30 Thanks for that Vishy.
08:31 The other one in focus I'm going to quickly move on HUL announced third quarter numbers.
08:36 It's the key drag on indices at least on the benchmarks today.
08:40 And we saw third quarter results being largely muted.
08:44 You know I want to bring in Sessa who's going to give us a roundup of how the numbers disappointed
08:51 the street and what's really disappointing within the set of numbers.
08:56 Right.
08:59 So the street had largely expected the company to report a weak set of numbers and there
09:06 was not a single surprise in the reported numbers.
09:10 Profit missed estimates and revenue declined marginally mainly on account of the price
09:15 hikes, the price cuts rather, the company has taken to pass on the benefits of the commodity
09:22 deflation.
09:23 Now what is interesting is the management did not share any outlook on the volume growth
09:27 but said that the pace of recovery from here on would be determined by a rebound in rural
09:33 income and winter crop yields.
09:35 So going forward you know that remains a key monitorable the volume growth outlook and
09:40 also reinforcing general trade mode is now an added pressure with changes in distribution
09:47 margin structure.
09:49 Management also sees the price growth to be marginally negative moving ahead if the commodity
09:54 prices remain at the current levels.
09:57 In the longer term however the company expects to see 4 to 5 percent pricing growth.
10:02 We have already seen the stock react to that it has fallen 3 percent after several brokerages
10:07 have actually slashed the earnings per share estimate for HUL for FY24 and 25 and they
10:14 have also lowered the price target.
10:16 Right.
10:17 Thank you so much for that Sessha.
10:21 Let me quickly move on.
10:22 We'll continue to focus on a whole hog of earnings that have come through.
10:25 It's been an earnings heavy week.
10:27 We'll focus now in on Reliance.
10:29 Net profit and revenue both declined.
10:31 They've missed analyst estimates.
10:33 Numbers were impacted by major shutdowns undertaken in the refineries division of the O2C business
10:40 and as per the company that shutdown is what really impacted the O2C division.
10:47 Now we have with us Vikas Sivastav who is joining in with the key highlights of the
10:52 quarter.
10:53 Over to you Vikas.
10:54 Right Harsh.
10:55 As you rightly said one of the major factors was the refinery shutdown but the other factors
11:01 which were impacted were also the lower price realization during the quarter on product
11:06 sales.
11:07 So overall the exports have also come down.
11:10 The crude oil prices have almost fallen down by 5 percent, 5.3 percent year on year which
11:16 impacted the company's overall profitability.
11:19 So one was that.
11:21 The other is that if you look at on year on year basis the company has done well.
11:26 So some of the major boosts were performance or sales from the telecom business, the retail
11:34 business as well as their oil and gas business.
11:37 So telecom although the average revenue per user has been flat as 181.7 rupees same as
11:44 previous week, sorry previous quarter but the net subscriber addition has been much
11:49 higher.
11:50 The data usage has also increased and the company has managed to get more subscriber
11:55 through its Jio air fiber other than the fixed line broadband services that they were providing
12:02 Jio fiber earlier.
12:04 As far as their retail business is concerned they have done extremely well because of the
12:08 festive season the footfalls have increased across all their formats.
12:13 So that is one and also the oil to gas business has done well because of higher production.
12:18 Back to you Harsh.
12:19 Right.
12:20 Thanks so much for that Vikas.
12:21 You know a comprehensive piece on what's going on with regard to Reliance's Q3 numbers.
12:28 But you know we'll stick with earnings.
12:30 Hindustan Zincs revenue has fallen compared to last year on the back of lower zinc prices.
12:35 EBITDA and profit also has come in lower but they've improved sequentially.
12:40 We spoke to the CEO Arun Mishra about why the company is not revising its margin guidance
12:45 for the year.
12:46 Listen into a slice of that.
12:48 We are not revising the guidance simply because of humor.
12:52 Although commission it is going through the you know dealing issues and all that.
12:56 So we feel that humor will be fully stabilized and we'll start operating at the rate of producing
13:02 30 tons of silver per annum by this quarter 4.
13:06 So we will get maybe a benefit of maybe 5 or 6 tons of additional silver this quarter.
13:10 But going forward next year we'll get the full benefit of additional 30 tons of silver.
13:14 If that becomes so then whatever number we close at this year we'll add another 30 tons
13:20 to it.
13:21 Now the silver, the way the costing is done it will remain low.
13:26 The revenue depends upon the price of silver.
13:29 So I hope the silver being very short after metal in India as well.
13:33 So the prices will continue to be moving northwards even next year.
13:38 So hopefully and the global focus on renewable power, solar energy will push up the price
13:45 of silver in the coming days as well.
13:50 Right that time of the show we slip into a quick break.
13:52 More on the other side.
13:53 Stay tuned to NDTV Profit.
13:55 Thank you.
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18:31 Thank you.
18:36 Welcome back.
18:37 You're watching Market IQ on NDTV Profit.
18:39 Now HFCL is one of the companies in focus in today's trade.
18:42 You are seeing the stock buzzing on the back of strong.
18:46 In fact, a single order win that's come through.
18:49 It's reached an intraday high of more than 12%.
18:53 Anushi is here breaking down details with regard to the order win, what it entails.
18:57 Anushi talk to us about what this means.
18:59 Right.
19:00 HFCL is in focus.
19:01 The stock has surged more than 12% in today's trading session after it won an order worth
19:07 Rs. 623 crore for the supply of 5G telecom networking equipment.
19:13 Now this order is to be executed by December 2024 this year.
19:19 But not only that, Harsh, apart from that there was another order win which was quite
19:23 strong in the Jan month itself, which included about an order win of about 1100 crore from
19:29 BSNL.
19:30 So, that is the whole order win for the Jan month.
19:34 But if you look at the order book status that stands at about Rs. 7788 crore as of September
19:41 30th.
19:42 Other than that, the company has also increasing its funds through a QIP fundraise in which
19:49 they had raised about Rs. 352 crore to fund its CAPEX requirement for expanding its optical
19:55 fibre cable capacity and to reduce its short-term borrowings as well.
20:00 So let's keep the stock in focus.
20:02 The stock has surged over 38% in the past year itself and about 13.8% in the one-week
20:08 period.
20:09 So this is all on HFCL.
20:10 Absolutely.
20:11 Thank you so much for that, Anushi.
20:14 Just to kind of give a little bit of more perspective here, you are seeing that the
20:20 revenue or the top line of this company is roughly Rs. 4700 odd crore at the end of FY23.
20:27 It's got an order book at the end of Q2 of around Rs. 7000 crore and add Rs. 1700 crore
20:32 to that, which is the order win post that, or rather in the month of January alone, you
20:38 get Rs. 9000+ crore.
20:39 So you have a good visibility and therefore stock is up and away 11.5% higher in trade
20:45 as we speak.
20:47 But the other one that is in focus, you have the likes of an Ultratech, a company reported
20:52 December numbers.
20:54 You're seeing a bit of a muted kind of a performance in trade today.
20:59 You're seeing it down around 7/10 of a percent.
21:02 But what we have Mihika with us talking to us about, what's the rationale of why the
21:09 muted earnings that the company reported?
21:12 Talk to us, Mihika.
21:13 Yes.
21:14 So as we speak, Q3 earnings are largely in line with the estimates.
21:17 Revenue up around 7.9% and this was due to the price hikes that took place in India,
21:23 which led to better realizations.
21:25 EBITDA did rise for almost 40% year on year.
21:28 And this was mainly on the back of the low fuel costs.
21:32 Key raw material costs have, you know, the prices have fallen down around 30 to 40% year
21:36 on year.
21:37 Margins also did improve to 19.5% versus 15%.
21:40 And the net profit was also up 67% year on year.
21:44 We also have some brokerages.
21:45 First, we have Motilal Oswal, which has maintained its buy rating at a target price of Rs. 12,000.
21:51 Now this implies a 19% upside to the last closing price.
21:55 They highlighted some of the management commentary where management is optimistic about the demand
22:00 prospects.
22:01 And they also expect their capacity utilization to improve to 80 to 85% in Q4 itself versus
22:08 77% in Q3.
22:09 They're also optimistic about the demand, which is going to slide up gradually in most
22:14 markets, especially the North region.
22:16 And they also stated their FI2425 capex at 9,000 crores on the back of capacity expansion
22:23 plans.
22:24 And then we have a Citi on Ultratech Cement, which has maintained a buy rating at a target
22:27 price of Rs. 11,700.
22:29 The hybrid coal costs, Citi expects them to fall around 7% to 8% over the next six months,
22:34 which is a positive for the company.
22:36 They also estimate a 12% volume growth over FI23 to FI26.
22:41 And they're also talking about the third capacity expansion phase, which will add around 21.9
22:48 million tonnes per annum capacity for the company.
22:51 And that's why they are estimating a capacity cargo of over 10% from FI24 to FI27.
22:57 The brokerage lastly also highlighted that the company will acquire Kesaram Cement business
23:02 via shares and a debt takeover.
23:05 And this has been approved by the NCLT.
23:07 And lastly, they revised the FI24, FI25 consolidated EBITDA estimates by a little lower by 5%
23:14 and 1% respectively.
23:16 Perfect.
23:17 Thank you so much for that, Mihika.
23:20 You know, one of the other ones which are also buzzing in trade is Paytm.
23:24 Company's third quarter loss has narrowed.
23:27 So that's come in slightly better.
23:29 And what you're seeing, though, is that EBITDA has not gone up as much as most analysts on
23:34 the street were expecting.
23:36 But Rishabh is here with a wrap on all the numbers as well as some amount of management
23:41 commentary as well.
23:42 Rishabh, take it away.
23:43 That's right.
23:46 We have early reports coming in basis the Paytm Q3 numbers that was the numbers that
23:53 beat estimates, Bloomberg's consensus estimates.
23:57 The most important one coming in right now is CLSA.
24:00 They have upgraded the stock from an outperformed to a buy as well as the target price on the
24:07 stock has been raised from about 925 rupees a piece to about 960 rupees a piece.
24:14 CLSA said that the core EBITDA revenue that Paytm posted off about 220 crores was ahead
24:21 of their 160 crore estimate.
24:23 So big beat there.
24:24 They added that though there was a miss on the payments net revenue estimate that they
24:30 put out, there was a modest beat on the lending revenue as well as some beat on the other
24:36 revenue that Paytm posts as part of its marketing revenue.
24:42 There was some beat on the operating expenditure there as well as the focus on cost reduction
24:49 and employee expenses remained flat.
24:51 So that is something CLSA is bullish on.
24:54 The fact that the bulk of the BNPL business loss that there was, was offset by newer revenue
25:01 streams as well as the cost reductions that Paytm did.
25:05 Remember Paytm in December, they laid off quite a few employees, about a thousand, all
25:12 to save about 10 to 15 percent in employee costs.
25:16 And in that place, they put AI, they cited AI as the major reason for those layoffs.
25:23 We're also seeing a report coming from Dollar.
25:26 They have maintained their positive view and their target price of about Rs. 1320 a piece,
25:33 which is a little higher than what other analysts put their target price at.
25:41 They also said that Paytm's Q3 performance was better than expected, but they will be
25:46 seeking additional clarity on growth avenues in the backdrop of moderated postpaid business
25:53 growth and also a way forward on the financial services business.
25:58 So insurance loans as well as the equity broking business that Paytm has entered.
26:04 There will be more reports coming in throughout the day after the Paytm con call is done,
26:10 which is scheduled for later today.
26:12 Perfect.
26:13 Thanks so much for that, Rishabh, but that's all the time we have on Market IQ for today.
26:18 It's been a packed day in terms of earnings.
26:20 Keep a lookout for all of those stocks which are buzzing on the back of earnings and stay
26:25 tuned to NET Profit.
26:26 We'll continue to bring you the latest.
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