- #Deloitte under scrutiny for missing major fraud at #Nigeria's #TingoGroup
- Tensions in West Asia escalate further as Iran-backed militants kill three U.S. soldiers
All this and more with Alex Mathew on 'All You Need To Know'. #NDTVProfitLive
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- Tensions in West Asia escalate further as Iran-backed militants kill three U.S. soldiers
All this and more with Alex Mathew on 'All You Need To Know'. #NDTVProfitLive
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TVTranscript
00:00 In the red, as all eyes turn to the Fed's first rate decision later this week, it's expected to
00:06 be a pause. But more importantly, the indication of where things are headed from here will be
00:11 watched very closely. And let's expect, of course, the rates to be unchanged. In other international
00:18 news, there is a further escalation of tensions in the West Asia region. The U.S. said that Iranian
00:25 backed militants killed three service members and wounded as many as 25 others in a drone attack
00:32 near the Syrian border. Meanwhile, U.S. Navy ships fired on a Houthi anti-ship missile in Yemen,
00:40 just hours after a tanker was hit in the most significant attack yet by the rebel group on an
00:48 oil carrying vessel. The latest escalation in tensions has pushed prices of oil higher.
00:54 As of this morning, Brent was trading higher at about 83.5 dollars to the battle. Of course,
00:59 what you see on your screen is NYMEX. Now, the top news from India comes from the political arena.
01:07 In a move that gained significance ahead of the general elections later this year, Nitish Kumar
01:12 and his party, Janta Dal United, ditched the opposition alliance, resigning as chief minister
01:20 of Bihar, only to join hands with the BJP to once again stake claim to form government in the state.
01:26 Later on Sunday evening, he was sworn in as chief minister for the ninth time, but this time as
01:33 part of the JDU-BJP alliance. Kumar said that his decision was because the situation with the
01:40 alliance was not good, in his words, that there was a fight for credit for the government's good
01:47 work. He said that he was working hard, but others were not working at all. The BJP and the JDU have
01:55 recently concluded a seat sharing arrangement for the upcoming Lok Sabha election and sources have
02:00 told NDTV that all the Bihar BJP MLAs have already submitted letters expressing their support for
02:08 Kumar. Now, the big question is how will markets react? Of course, it's been a topsy-turvy few
02:16 sessions for the Indian equity markets with the spike in volatility. What are the major F&O cues
02:21 heading into the new trading week? Remember, we're getting back to action in the markets after
02:26 a truncated week last week. Agam is here to tell you about the latest cues. Agam, we're starting
02:32 immediately after the monthly expiry. How does it look today? Well, this week is going to be
02:37 not unlike what we've seen last week. At least that's what the guesses are because of the
02:42 upcoming vote on account. And I know that there won't be any long-term measures being announced
02:47 still. Usually, the week before, at least three to four days before the budget, we do see some
02:54 amount of increased activity. That said, at least as far as trade on last Thursday goes,
03:02 we did see a little bit of a come-off for the Nifty, which came up around half percent. A good
03:08 36 percent added, but that's also because it was a new series coming through, which is why we're
03:12 seeing that number a tad higher than what we have been used to. As far as the Bank Nifty goes,
03:18 that's where we once again saw a half percent cut in the underlying with an 80 percent increase in
03:23 open interest naturally because of rollovers. But how does the option market look at the moment?
03:28 Let's pull that up and take a look at where the Nifty stands. Now, in terms of the changes,
03:33 we saw a lot of writing around 21, 300, 21, 400 calls as well as puts. At the moment, I reckon
03:40 that at least some traders will be keeping an eye on volatility, which is why there may have been
03:46 buying in options instead of the usual selling, considering the expectation of volatility to
03:52 still stay around, at least until the day before the budget, which is on Thursday. And that is also
03:58 the weekly options expiry for the Nifty. Of course, in terms of now open interest distribution, at the
04:03 moment, it's a 500 point range, pardon me, where Max OY stands at the 21,000 put. And this is,
04:10 I reckon a lot of traders have taken the opportunity to go ahead and sell that particular
04:14 put since we've seen the Nifty come off to a certain extent. And on the higher end, keeping
04:18 an eye on 21, 500, but not as much open interest in calls as much as there is in puts. So overall,
04:26 we're keeping an eye on these levels. And of course, the banking indices, Alex, which once
04:32 again will be in focus, given the kind of volatility that we've seen last week.
04:36 All right. Thanks so much, Agam, for bringing us those details. Among the stocks that will be in
04:40 focus on account of earnings, you've got ITC, which is set to report its third quarter numbers.
04:45 And all eyes are going to be on the cigarette volumes for this particular company and also
04:51 what it's reporting in its FMCG business. We've got Sesha joining in to put some of those numbers
04:56 in context for you. Good morning, Sesha. What are the key expectations?
05:01 I got all my S's mixed up. Sesha, morning. What are the key expectations?
05:06 ITC is likely to report a subdued quarter. Revenue is likely to grow in mid single digit,
05:16 while EBITDA and profit is likely to grow in low single digits, according to Bloomberg estimates.
05:23 Margins, however, is expected to see a slight contraction due to the volatility
05:28 in raw material prices. Now, if we look at the segments, ITC cigarette business,
05:33 which continues to be the biggest contributor to the overall top line, is expected to see a
05:38 mid single digit revenue growth compared to last year. Volume growth, however, is likely to remain
05:43 flat on a high base. We must remember that the last time it was ahead of the union budget,
05:49 which was a full budget. So, there was a trade build up that happened. But this time,
05:55 it is unlikely because it's going to be an interim budget and the full budget is in mid-year. Now,
06:02 in fact, if that happens, this would be the third quarter of single digit volume growth for the
06:06 cigarette segment after several quarters of double digit growth. Now, our revenue for the FMCG
06:12 business except cigarettes is expected to grow 6 to 7 percent driven by pricing. Volume growth
06:18 for the business is seen in low single digits on the back of weak demand, as we have seen
06:25 for other companies as well. Margins, however, is expected to expand 102 basis points,
06:31 according to the estimates, on the back of easing commodity prices. Now, hotel business is likely to
06:37 report a stellar show growing 50 percent year on year on the back of wedding season. ITC's agri
06:43 sector is expected to grow on a lower base. The base quarter was impacted on account of the
06:49 exports ban on wheat. The paper business, however, is likely to see a drop in revenue compared to
06:55 the year ago period on the back of persistent weakness in demand and lower prices.
07:00 So much, Sesha, for breaking those numbers down for us. Let's talk about Bajaj Finance as well.
07:06 The third quarter numbers will be out today and quite a lot to take into account for this
07:10 particular company, particularly on the back of the regulatory changes that occurred not too
07:15 long back. We've got Harsh joining in to give you some perspective on what to expect. Harsh,
07:21 of course, I think we've spoken about in the past, not the entire quarter affected by the
07:26 change in regulations, but what are the key numbers to watch out for this time?
07:30 Well, yes, absolutely, Alex. So, one, let me start off with the net investor income number
07:34 expected around the 7600 crore mark. Growth continues and to be quite solid for Bajaj
07:40 Finance, especially where the AUM growth is concerned. They disclosed their operational
07:43 metrics. I'll come to that. But around a 28 odd percent growth year over year where the net
07:48 investor income is concerned, they're expecting profit after tax also to expand by roughly 25
07:52 plus percent and coming at around the 3750 odd crore mark. So those are the two kind of broad
08:00 numbers that we are expecting. You know, commentary, Alex, around where the NPAs as well
08:06 as where the credit costs seem to be heading will be a key in an environment where we are seeing
08:13 unsecured being in focus because of poor credit costs. Now, one clear piece, of course, which
08:21 stood out even on past calls on past call calls is the way they're calibrating growth in certain
08:27 segments. That will be a key focus area where RWS is concerned, where capital adequacy
08:33 essentially lies. But that's finance extremely well capitalized. But what will be the impact
08:39 on that capital adequacy? Of course, need to wait and watch for that one, but will nonetheless not
08:44 be of much concern. Where do the cost of funds head and where do margins head will be another
08:49 key metric because you are currently at the top of the rate cycle. This is probably where margins
08:57 ought to bottom and some commentary around that will also help. So some of these factors in focus
09:02 with Bajaj Finance's earnings. Absolutely. Thanks so much, Harsh, for bringing us those details.
09:06 Like Harsh pointed out, some of those key metrics have already been announced or discussed
09:11 on account of the quarterly updates, but the capital adequacy, of course, and also the margins
09:17 key monitorables for Bajaj Finance. Let's talk about more stocks after a very quick break. We'll
09:22 be back before you know it.
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13:17 Welcome back. You're watching All You Need to Know. What you see at the bottom of your screen
13:20 is the latest update from Hong Kong, where China's Evergrande, which is the major property
13:27 developer in that country, which has been facing issues with debt payments, has gotten an order
13:35 to wind up. This is something that was feared by investors in several regions, and this is because
13:42 it lays bare the issues in China's property market. It's of course a significant amount of debt,
13:49 327 billion dollars of liabilities, and that's going to cause problems not just for the property
13:56 market but also for the financial sector in China. As things stand, of course, the Chinese markets
14:02 are trading in the red, down about two-tenths of a percent for the Shanghai index, and the China A50
14:10 index in fact trading in the green by about half a percent or so. This is of course on the back of
14:15 a reprieve that was initially received by China Evergrande about eight weeks back in a long-running
14:22 lawsuit that had sought the winding up because of problems with payments to creditors, but in that
14:29 interim China's Evergrande and in fact the policy makers were unable to get any deals
14:35 with those creditors to push the payments down the road. We'll address that of course later in
14:43 the day, but as things stand, the winding up order from the Hong Kong court has come through.
14:49 Let's turn attention back to the Indian equity markets and focus on stocks that you should watch
14:54 out for in trade today. We've got Mihika joining in first to give you some details about a couple
14:59 of stake sales as well as a joint venture announcement. Mihika? Yes, so first we have
15:04 Piramal Enterprises which is going to sell their entire 20% stake in Sriram Investment Holdings,
15:10 and the stake will be sold to Sriram Ownership Trust for a consideration of
15:13 1,440 crores, and the transaction is expected to be completed by March 31st, and the proceeds will
15:20 help strengthen the company's balance sheet. Then we have Jubilant Firmova where Singapore's
15:24 subsidiary will sell its 25.8% stake in Sophie Biosciences for a consideration of $139.4 million.
15:33 Sophie Biosciences will merge with the triatlantic North America by June 30th,
15:38 and Jubilant Firmova will receive a $113.63 million post the merger and will get $7 million
15:46 in terminated related fees if the merger transaction does not go through. And lastly,
15:52 we have Loris RABS which has entered into a 49 to 51 ratio joint holding with KRK Pharma,
16:00 and the registered capital of the firm is 15 million euros, and the joint venture is set to
16:06 produce finished products for new markets including the Indian market. Thanks so much, Meeka, for
16:11 getting us those details. Mahima is up next with a few stocks including HDFC Bank. Mahima, what can
16:16 you tell us? Right, Alex. So as you rightly mentioned, HDFC Bank is the first stocks to watch.
16:21 RBI has accorded approval for LIC to acquire 9.99% in HDFC Bank, and this needs to be completed by
16:29 24th Jan. At present, LIC is already holding 5.19% in HDFC. Then we have DLF where DLF is set to
16:36 purchase bonds of 600 crore face value. The three lenders include Standard Chartered Bank, DB
16:42 International and Deutsche Investments India. The negotiated consideration stands at 825 crores.
16:47 Then we have Adani Power where MOU to sell 100% of its two wholly owned subsidiary to Adani
16:53 Conex Private Limited is set, and this needs to be completed by 31st March, 2024. Then we have two
16:59 companies which won orders from GovNL in Khevda, Gujarat. First one is Coal India which has emerged
17:05 as the lowest bidder for 300 megawatt solar project in Gujarat. And then we have SDVN which has also
17:11 won an auction for 100 megawatt solar project in Khevda, Gujarat. And the tentative cost of this
17:17 project is approximately 550 crores. So these are the key stocks to watch out for today. All right,
17:22 thanks so much Mahima for getting us those details. Let's talk about NTPC from the power
17:26 space. It's set to report its third quarter numbers later today. And we've got Anushi joining
17:32 in to tell you about the key details to watch out for. Anushi, what can you tell us? Morning Alex.
17:36 So if you are to look at the street expectations, not such a particular exciting quarter for NTPC,
17:42 wherein the expectation is that the revenues are expected to remain flat at rupees 44,646 crore,
17:49 wherein its EBITDA might see a beating of about 12.3%, whereas its margins will now fall to about
17:56 28.4% compared to the reported 32.5% of the earlier year. Also the net profit may see some
18:05 marginal increase of about 1.8%. So these are the key estimates for its key operational metrics.
18:14 But now what more can we expect is the outlook on the increased capacity and the generation
18:19 amidst the festive season. So increase on the power demand can be one we can watch out for.
18:25 Again, the company also commissioned a 50 megawatt of Dayabar wind project. So that can also be
18:31 another thing that we should be watching out for. Another is the renewable energy capacity,
18:37 which the company is aiming to scale up from 3.3 megawatt to 60 megawatt. So that is something in
18:45 the sector which we should be watching out. And the polycon and module prices, which would aid in
18:50 the RE capacity generation. So NTPC, this is the key metrics that we should be watching.
18:56 Sure. Thanks so much, Anushi, for getting us those details. Sticking with earnings and telling you
19:01 about companies that have reported their numbers over the weekend, we've got Varsha joining in to
19:06 tell you more about that. Varsha, what are the companies that you've listed out?
19:10 Good morning, Alex. So let's start with our macro tech developers where net profit have
19:16 beaten estimates and the pre-sales numbers rose to 12% year on year while collection was down 3%.
19:22 Also, company has added three more projects for 2 million square feet area. Then we have
19:28 Zen Technologies where you see company has given really strong performance. This is attributed to
19:34 increased order book, then successful execution of existing projects and expansion into new markets.
19:39 Also, a company is planning to raise 1000 crores through QIP to fuel further growth and expansion
19:46 and company aims to reach 1000 crores revenue in FY25. Then we have Vedanta where if you see
19:52 profits have beaten estimates while the consolidated net profit dropped 7.2% due to higher finance
19:59 costs. EBITDA growth, which was 20% was led by aluminium unit, power division and iron ore unit
20:05 while EBITDA for Zinc International fell 80%. Then lastly, we have Shaktipalms where we have
20:12 seen strong numbers attributed to strong order book which company has secured over the last six
20:16 months and order book as on December 2023 was 2,250 crores which is to be executed over the
20:23 next 21 months. All right. Thanks so much, Varsha, for getting us those details. A few more stocks to
20:28 watch out for among them SBI cards as well as Tata Technologies and Aeroflex to tell you about the
20:33 earnings that these companies have reported. We've got Harsh joining back. Harsh, what can you tell us?
20:38 Well, good morning, Alex. You're seeing largely a very weak set especially when it comes to SBI
20:44 cards. 26% growth is probably the only positive in that number. But outside of that, despite that
20:50 kind of growth, you're seeing a spike in GNPAs as well as NNPAs. Let me pull out the numbers.
20:55 21 basis points increase on a sequential basis where the GNPAs are concerned. Eight basis point
21:00 increase where the NNPAs are concerned. Capital adequacy goes from 20% plus down to 18.5%
21:06 or less than 18.5%. That's the other concern. And where cost of funds are concerned,
21:11 they've gone up on a sequential basis by 49 basis points. 7.6% is where the cost of funds
21:17 have come in at. So definitely a couple of very, very weak numbers in there, Alex. And going forward
21:24 as well, weak commentary coming through from SBI cards. But outside of that, you had Tata Technologies,
21:31 good strong set of numbers, revenue growth of roughly 1.5% sequential, a bit up 11.3%
21:37 sequential. The margins have gone up by 140 basis points from 14.82 to 16.2. And you have your net
21:44 profit, which is up 6.1% sequential, first quarter after listing. So definitely a solid quarter there.
21:51 Also, the other one recently listed, Aeroflex Industries, revenue was up 11% year over year,
21:56 but you're seeing EBITDA, which is up nearly 51% year over year. So margins have gone up from that
22:01 13.9% mark to almost 19% on a year on year basis and profit also jumping 76% as a result of that.
22:10 So that was a solid set as well. All right. Thanks so much, Harsh, for breaking those numbers down
22:15 for us. And that brings us to the end of this particular edition of All You Need to Know. But
22:18 there's lots more coming up over the course of the next one hour or thereabouts to set you up for
22:24 trade. And that is in India market open. Do stay tuned. NDTV Profit is bringing you more coverage
22:30 over the course of the day.
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