Quarterly results are announced for multiple pioneer companies in recent times. They have come in at a time when the Indian Markets are under a scanner due to the Adani Group allegations and the RBI rate declaration. However the market volatility has not ceased to exist. The markets are constantly trailing in a range between 17600 to 17900 levels.
Decoding the Quarterly Results
ITC
One of the major FMCG companies in India ITC presented a good result for this quarter. The company has achieved a net profit of 5031 Crore Rs. This is a more than 20% hike in the profits than the previous year’s quarter. On the other hand the company also declared a dividend for its shareholders at Rs 6 per share. The company’s profits were way above the street’s estimates. However recently the company’s stock price took a dive after the 2023 budget included an increase in the tax levied on cigarettes. However the good result saved the devaluation and the company’s share price rose the very next day to give a balanced pricing for the company.
The revenue of the firm increased from 15862 Crore Rs to 16225 Crore Rs on a YOY basis. This comes to a 2.3% rise in the same. Also the EBITDA increased by 22% at 6223 Crore Rs. The revenue from the cigarettes business increased by 17% and that of the FMCG grew by 18%. The revenue from the hotel business increased by a mighty 50%. However due to the fall in the revenue from agriculture at 37% the company’s revenue did not post a higher figure for this quarter.
Marico
The net profit for the firm increased by 5% to 333 Crore Rs and the revenue also increased by a slight margin of 2.6%. The revenue stood at 2470 Crore Rs for this quarter. The net profit for the previous quarter was recorded at 317 Crore Rs. The total expense for the firm was up by 2.2% at 2067 Crore Rs. However no major boost was seen in the share prices of the firm as it posted weak results in comparison to its peers. The share prices in fact went down by 1.2% on the day of the results announcement.
InterGlobe Aviation (Indigo Airlines)
The net profit of the firm was 1000% higher than the previous year’s quarterly results. This is largely due to an increase in the number of domestic and international travel due to smooth business operations back in place. The net profit was recorded at 1422 Crore Rs and the revenue of the firm was up by 61% to 14930 Crore Rs. The profit for the previous year’s quarter was just 129 Crore Rs and the revenue was 9294 Crore Rs. The total income of the firm was recorded at 15410 Crore Rs. However the results are excellent for the firm it is facing issues to reduce the fuel costs.
Tata Power
It is one of the major power companies in India. The company posted an increase in net sales of 29.47% at 14129 Crore Rs. The EBITDA for the firm was at 2607 Crore Rs and the net profit was recorded at 945 Crore Rs meaning an increase of 49.9% and 121.93% respectively on a YOY basis. The earnings per share for the company has increased to 2.95 Rs from 1.33 Rs. However the share valuations have been hammered since the last 1.5 years. The returns for the company are at -18% for the last 18 months and -11.2% for the last 1 year.
Ashok Leyland
The net sales for Ashok Leyland were up by a massive 63.3% and this made their total sales at 9029 Crore Rs. On the other hand the net profit for the firm was up by a major 6173% from 5.76 Crore to 361 Crore Rs. The EBITDA was at 828 Crore Rs which is also 243% higher than the previous year’s quarter. This gave a major boost to the EPS of the firm. The EPS was 0.02 Rs before which jumped to a massive 1.23 Rs per share. The company has managed to give 11.5% return for the last 12 months.
Divi’s Labs
This quarter was not good for the company on account of its 66% fall in net profits. The net profits of the frim were at 307 Crore Rs. Not only net profit, the revenue of the firm was also down by 32% to 1708 Crore Rs. The EBITDA was also down by 63% from 1097 Crore Rs to 408 Crore Rs for this quarter. Post the result announcement the share prices of the firm took a major dive of almost 10% in a single session.
