The earnings season is in full swing as companies such as
ITC and IndiGo announced their Q3 results on Wednesday.
In the Sensex, ITC emerged as the biggest loser with its shares plunging 4.16 percent after the company's quarterly results failed to enthuse investors.
Equity benchmark Sensex on Wednesday tumbled over 336 points to end at 36,108 on the emergence of intense selling towards the fag-end mainly in FMCG, financial and IT stocks, while renewed concerns over US-China trade tiff further jolted investors' sentiment. Similarly, the NSE Nifty slumped over 91 points to close at 10,831.
Others midcap names which reported their quarterly earnings during the market hours included Raymond, Bank of Maharashtra, Can fin Homes, Vijaya Bank and Radico Khaitan.
Here are the hits and misses from Wednesday's Q3FY19 earnings.
Stock of the Day – ITC
Nifty was dragged by ITC as the stock started falling post its Q3 FY19 earnings. ITC on Wednesday reported 3.84 percent increase in standalone net profit at Rs 3,209.07 crore in the December quarter 2018 helped by good performance in FMCG and agri businesses.
Gross revenue from sales was up 15.09 percent to Rs 11,340.15 crore as against Rs 9,852.74 crore in the year-ago period. EBITDA grew by 11.2 percent year-on-year (y-o-y) at Rs 4,325 crore.
The revenue from cigarette business was up 9.6 percent at Rs 5,074 crore while EBIT margins were at 70.1 percent.
During the quarter, revenue from total FMCG business was up 10.31 percent to Rs 8,274.36 crore as against Rs 7,500.97 crore in the year-ago period.
Shares of ITC settled at Rs 277.70 apiece, down 4.16 percent from the previous close on BSE.
First Cut – Kotak Securities
The company's pickup in the cigarette volume growth was perhaps the only positive aspect of ITC’s Q3 results, said brokerage firm Kotak Securities.
ITC's inability to move the y-o-y cigarette EBIT growth needle to the double-digit zone after 18 months of no tax increase is clearly disappointing, they said.
Other Midcap Earnings Bank of Maharashtra - Hit
The bank's shares on Wednesday went up by 21 paise, or 1.48 percent, to close at Rs 14.44 apiece on the BSE on the hope of bank coming out of PCA framework as its net NPA (non-performing assets) falls below 6 percent.
Bank of Maharashtra on Wednesday reported over seven-fold increase in its net loss to Rs 3,764.26 crore during the quarter ended December 2018.
Net NPAs declined to 5.91 percent of the net advances by the end of the third quarter from 12.17 percent in the year-ago period.
Overall, net interest income grew by 2.3 percent at Rs 872 crore but fell by 13 percent sequentially.
The bank's asset quality although improved, with gross NPAs declining to 17.31 percent of the gross advances as on December 2018 as against 19.05 percent in the corresponding quarter a year ago.
Vijaya Bank – Miss
The bank's shares fell by 85 paise, or 1.87 percent, to close at Rs 44.50 apiece on the BSE.
Vijaya Bank reported a 80.2 percent jump in its net profit to Rs 143.38 crore for the December 2018 quarter.
The bank's gross non-performing assets (NPAs) declined marginally to 6.14 percent, against 6.17 percent in the same quarter of last fiscal.
However, net NPAs rose to 4.08 percent during October-December 2018, compared with 3.99 percent in the year-ago period.
During the quarter, the provision for bad loans nearly doubled to Rs 582.22 crore from Rs 333.26 crore a year ago.
This is the second last quarterly result of the bank ahead of its amalgamation with Bank of Baroda beginning April 1, 2019.
Radico Khaitan – Hit
The company's share went up 1.91 percent to close at Rs
421.15 apiece on the BSE.
The liquor firm has reported a 48.78 percent jump in its net profit at Rs 52.09 crore for the quarter ended December 2018 as lower finance cost helped the company. Radico's finance cost was down by 55 percent at Rs 7.63 crore.
Total income during the quarter under review stood at Rs 2,081.12 crore.
Revenue grew by 14.6 percent at Rs 553 crore, though gross margins remain flat on y-o-y basis at 50 percent due to higher ethanol prices.
EBITDA was up 26.7 percent y-o-y at Rs 95.7crore. Profit after tax (PAT) went up by 48.9 percent at Rs 52.1 crore during the quarter under review.
Raymond – Hit
Shares of Raymond were closed at Rs 814.35 per scrip on the BSE, up 0.90 percent from the previous close.
The company reported an increase of 30 percent in consolidated net profit at Rs 39.95 crore for the third quarter ended December 2018.
Total income during the reported period stood at Rs 1,705.68 crore, registering an increase of 12.69 percent from the December quarter of 2017-18.
The revenue grew by 13 percent at Rs 1675 crore during the quarter under review. TheTextile business grew by 10.33 percent at Rs 847crore against Rs 768 crore y-o-y.
Can Fin Homes - Hit
Shares of Can Fin home were closed at Rs 266 apiece on the BSE up
0.47 percent from the previous close.
The company reported profit growth of 21.4 percent at Rs 80.3 crore for the third quarter ended December 2018.
The company's Gross NPA was down by 16.5 percent at Rs 125 during the quarter. Asset under management (AUM) was up 16.7 percent at Rs 1,7578 crore.
InterGlobe Aviation - Miss (Results announced after market hours)
Shares of IndiGo settled at Rs 1,107.95 apiece, down 0.89 percent on the BSE.
InterGlobe Aviation, parent of IndiGo, reported a 75 percent fall in profit after tax at Rs 190.9 crore in the December quarter as high fuel prices and currency depreciation adversely impacted the bottomline.
The carrier's total income rose over 28 percent to Rs 8,229.4 crore in the three months ended December 2018.
With inputs from PTI.