The BSE benchmark Sensex gave up initial gains on Friday and closed 169 points lower at 36,025.54 as shares of Maruti Suzuki cracked after weak Q3 earnings, offsetting gains in Yes Bank, HDFC, ITC and TCS.
After surging over 250 points during the day to touch an intraday high of 36,474.48, the 30-share index gave up gains on widespread profit-booking in the later half of the session and hit a low of 35,953.15, before finishing 169.56 points, or 0.47 per cent down at 36,025.54.
In similar movement, the broader NSE Nifty ended 69.25 points, or 0.64 per cent, down at 10,780.55, after shuttling between 10,931.70 and 10,756.45.
Maruti Suzuki emerged worst performer in the Sensex kitty, tumbling 7.40 percent after the company announced its third quarter results.
Zee Entertainment’s shares were the biggest drag on the NSE index, tumbling 26.6 percent to their lowest close since April 2018.
Shares of Yes Bank erased most of their early gains due to profit-booking and ended nearly 3 percent higher on Friday, following the lender's announcement to appoint Ravneet Singh Gill's as managing director and CEO.
Other than Maruti Suzuki, DHFL, Indian Bank and GSFC announced their results on Friday. Meanwhile, Engineering and construction major L&T announced its after market hours.
Here's how your favourite stocks closed after announcing Q3 results.
Stock of the day – Maruti Suzuki
The shares of India's largest carmaker ended 7.40 percent lower at Rs 6,516.35 in the BSE.
Maruti Suzuki on Friday reported a 17.2 percent fall (year-on-year) in net profit at Rs 1,489 crore for the quarter ended December 2018 mainly on weak rupee and high commodity prices.
Total income during the October-December quarter under review stood at Rs 20,585.6 crore as against Rs 19,528.1 crore in the year-ago period, a growth of 5.41 percent.
"Q3 FY19 has been unusually tough for the company and discount hit the record highs of Rs 24,300 per unit. The said discount to come down in the next few quarters and growth is still subdued in the market," the Management said during the earnings concall.
Other earnings Indian bank – Miss
Shares of the bank were closed at Rs
on BSE, down 7.07 percent from the previous close. 238.00
The state-owned bank's profit halved to Rs 152.26 crore for the third quarter ended December 2018, on account of rising provisions for bad loans.
The bank had registered a net profit of Rs 303.06 crore in the corresponding October-December period of previous fiscal. Total income was up at Rs 5,269.10 crore from Rs 4,903.07 crore in the year-ago period,
The lender's asset quality worsened, with gross non-performing assets (NPAs) rising to 7.46 percent of the gross advances by the end of December 31, 2018.
Net NPAs or bad loans also increased by 4.42 percent of the advances against 3.30 percent.
Gross NPAs were Rs 13,198.40 crore during the quarter against Rs 9,595.15 crore in the corresponding period of the previous fiscal. Net NPAs were Rs 7,571.07 crore, as against Rs 4,898.60 crore.
As a result, provisioning for bad loans increased nearly threefold to Rs 973.88 crore for the third quarter of 2018-19, against Rs 385.49 crore in the year-ago period.
GSFC – Miss
The shares of Gujarat State Fertilizers and Chemicals were closed at Rs
97.65 on BSE, down 7.53 percent from the previous close.
The company reported a 50.42 percent drop in its standalone net profit to Rs 98.94 crore during the third quarter of the current fiscal on higher expenses. The net profit had remained higher at Rs 199.57 crore in the year-ago period due to one-time write-off of Rs 100 crore taxes, the company said in a BSE filing.
The net profit during the December 2018 quarter took a beating due to higher expenses despite strong sales.
The phosphatic fertilisers maker's overall expenses rose to Rs 1,883.40 crore during the quarter from Rs 1,422.75 crore in the corresponding period last year.
Net income increased to Rs 2,013.91 crore during October-December 2018, against Rs 1,545.72 crore in the year-ago period.
DHFL - Miss
Shares of the housing finance company were closed at Rs
209.20 on BSE, up 1.31 percent from the previous close.
The company on Friday reported a 36.7 percent decline in its net profit to Rs 313.60 crore for the third quarter ended December 2018. DHFL had posted a net profit of Rs 495.44 crore in the third quarter of last fiscal.
However, total income rose to Rs 3,255.9 crore during the quarter, compared with Rs 2,896.66 crore in the corresponding quarter a year ago,
On the asset side, the firm's gross non-performing assets (NPA) rose to 1.12 percent, compared with 0.96 percent in the year-ago quarter.
Net interest margin stood at 2.91 percent at the end of December 2018. Loan book outstanding grew 15.2 percent to Rs 96,839 crore during the quarter ended December 31, 2018, against Rs 84,028 crore in the corresponding quarter of the previous year.
Following a series of payment defaults by group companies of IL&FS towards the end of August, concerns were raised about over leveraging and liquidity crunch to meet payment obligation in other NBFCs and housing finance companies including DHFL. Their shares witnessed a huge beating on the stock exchanges as it fell almost 64 percent in the last year.
L&T (Numbers announced after market hours)
The company scrip closed 0.85 percent down at Rs 1,285.55 on the BSE, as against a 0.47 percent correction in the benchmark.
The company posted a 37 percent growth in its net income at Rs 2,042 crore on a robust 24 percent uptick in revenue at Rs 35,709 crore for the three months to December.
Its net profit was Rs 1,490 crore in the corresponding quarter a year ago, L&T said in a statement.
At Rs 11,476 crore, its international revenue constituted 32 percent of the overall revenue, the company said adding during the quarter it secured orders worth Rs 42,233 crore at the group level.
L&T retained FY19 guidance for order inflow and expects 10-12 percent growth in order inflows this fiscal.
With inputs from PTI.