From Piramal Pharma reporting a loss, to expenses continuing to weigh on Mazagon Dock and IndusInd Bank’s positive margin surprise, here are five earnings reactions to watch going in to Tuesday’s trading session.
1 / 6A slew of Nifty and broader market names reported results after closing hours on Monday and will be reacting to those numbers during Tuesday’s trading session. Here’s a look at five major earnings reactions that one should keep an eye on for today’s trade:
2 / 6IndusInd Bank | Having been under intense scrutiny after reporting a big loss in the March quarter, IndusInd Bank returned to profitability in June and the numbers were comparatively better than expectations, even as they were well below on a year-on-year basis. The lender’s Net Interest Margins at 3.46% was a positive surprise, even if it included a one-off gain of 11 basis points. Margins in the March quarter were at 2.25%. Asset quality though, did see some deterioration sequentially.
3 / 6Mazagon Dock Shipbuilders | Higher expenses continue to weigh on the defence PSU, even as sales were on the higher side. The company’s Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) fell by 53% from last year, while margins narrowed to 11.4% from 27.2%. Net profit too, declined by 35%, even as all three parameters were better when compared to an exceptionally weak March quarter. Subcontracting expenses increased 9%, while provisions stood at ₹540 crore, from just ₹3 lakh last year and ₹511 crore in March.
4 / 6Piramal Pharma | The drugmaker reported a net loss during the quarter compared to a profit last year. Revenue was flat year-on-year but declined nearly 30% sequentially. The CDMO business was impacted by destocking in one large on-patent commercial product. Margins narrowed to 5.5% from 10.5%, while EBITDA nearly halved from last year. However, the company maintained its $2 billion in revenue with 25% margin aspiration by financial year 2030.
5 / 6Waaree Energies | After Premier, its peer Waaree Energies also reported a healthy quarter with a 30% revenue growth and margins seeing an expansion of close to 6 percentage points from 22.5% from 16.2%. EBITDA saw 80% growth year-on-year and the management expects this figure to be between ₹5,500 crore and ₹6,000 crore for the full year. Order book at the end of the quarter stood at 25 GW worth ₹49,000 crore, of which, 41.3% is from the export market.
6 / 6NTPC Green Energy | The demerged entity of state-run NTPC, which still trades around or below its IPO price, reported a 17% growth in its topline and EBITDA each, while margins remained stable at 88.6%. Profitability during the quarter increased but was aided by a higher other income component. The company’s total operational capacity now stands at close to 7 GW.
