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Q2 results of HDFC and Marico, Indian Markets remain indecisive…. Market updates for 01/11/18

PurpleTrades - stock market courses > News > Q2 results of HDFC and Marico, Indian Markets remain indecisive…. Market updates for 01/11/18

Report by- Sabyasachi Bhattacharya

 

HDFC announced their Q2 results; Profits jumps by 25% to Rs 2,467 crores-

Housing finance company HDFC has reported a healthy 24.71 percent on year growth in second quarter profit to Rs 2,467 crore, driven by income from stake sale in AMC business. Let us review their report-

  • Housing Development Finance Corporation earned profit of Rs 1,000 crore on sale of stake in HDFC AMC in quarter ended September 2018, against reported income on sale of investments of Rs 63 crore in same period last year.
  • Profit in the year-ago period stood at Rs 1,978.2 crore.
  • HDFC AMC had raised Rs 2,800 crore through its IPO in last week of July. Founders HDFC as well as Standard Life Investments offloaded stake through this IPO.
  • Net interest income during the quarter grew by 16.3 percent year-on-year to Rs 2,649.3 crore with strong loan growth of 17 percent YoY at Rs 3.79 lakh crore.
  • The housing finance company said interest income increased 19.2 percent YoY to Rs 9,673.3 crore for the quarter.
  • Net interest margin remained unchanged at 3.5 percent compared to previous quarter.
  • Asset quality improved in quarter ended September 2018 as gross non-performing assets declined at 1.13 percent against 1.18 percent in June quarter.
  • HDFC said expected credit loss for the quarter was at Rs 401.3 crore against Rs 19.7 crore in previous quarter.

 

Source- MoneyControl, Purple Trades Research Department   

                                       

 

 

Marico announced their Q2 results; Net Profit jumps by 18% to Rs 212 crores-


FMCG major Marico’s second quarter net profit grew by 18 percent year-on-year to Rs 218.3 crore despite weak operating margin due to higher copra prices. Let us take a look at the key insights of their report-

  • Profit in corresponding period last year stood at Rs 185 crore.
  • Revenue from operations increased 19.6 percent year-on-year to Rs 1,836.8 crore in quarter ended September 2018, with an underlying volume growth in the India business (as well as overall) of 6 percent against 8 percent year-ago.
  • The volume growth lower than the medium term aspiration was largely due to a significant decline in CSD sales, the company reasoned.
  • While overall consumption trends seemed normal, volume growth in the India business was dampened by a double-digit volume decline in canteen stores department (CSD) sales. Underlying volume growth ex-CSD was 7 percent.
  • The company further said value growth for the quarter was driven by price hikes taken in the core portfolios to counter the input cost inflation over the last year.

 

Executive Summary: Consolidated Results-

  • International business posted a broad-based constant currency growth of 11 percent, led by volume growth of 8 percent YoY. Vietnam, which was lagging for over a year, bounced back to double-digit growth on a constant currency basis.
  • At operating level, EBITDA (earnings before interest, tax, depreciation and amortisation) grew by 13.5 percent to Rs 294 crore, but margin contracted 85 bps to 16 percent YoY due to higher crude oil prices.
  • The company said pressure on margins was gross margin led due to consumption of higher cost copra inventory during the quarter and inflation in other commodities, which was partially offset by price hikes and operating leverage benefits.
  • The India business operating margin (before corporate allocations) was at 18 percent in Q2FY19 against 18.5 percent in Q2FY18. Advertising and promotion spends perked up during the quarter
  • Advertising & sales promotion spends increased to 9.6 percent of sales against 8.2 percent in Q1FY19 and was up 11 percent on a YoY basis.
  • Parachute Rigids business grew by 8 percent in volumes and 32 percent in value. The company has a volume market share of around 59 percent in the segment.
  • The company said its FMCG business in India achieved a turnover of Rs 1,439 crore, a growth of 20 percent over the same period last year.

 

 

Let us take a look at the company’s Q2 report-

 

Source- MoneyControl, Purple Trades Research Department     

 

 

Indian Indices remain flat as there was indecision between BULLS and BEARS-

Chart source- Upstox

Indian markets remained flat as there was absolutely no movement seen in Nifty. As you can see in the box given above. Nifty opened higher today but could not sustain those levels and fell back from today’s high. Nifty as expected by our experts in PURPLE TRADES  wasn’t able to breach the levels of 10,400. For some part of the day it was able to go above 10,400 but couldn’t sustain those levels and fell below. First session of November 2018 began on a subdued note, with the Nifty ending below 10,400-mark. Banks were the gainers during the session, while infrastructure and metals rose during trade as well. Pharmaceuticals, IT, and consumption names were the big losers in trade today. However, there was some outperformance in the broader markets, with the Nifty Midcap index rising a percent. At the close of market hours, the Sensex closed down 10.08 points or 0.03% at 34431.97, while the Nifty ended lower by 6.10 points or 0.06% at 10380.50. The market breadth is positive as 1,590 shares advanced, against a decline of 990 shares, while 124 shares were unchanged. Yes Bank, Axis Bank, and Hindalco were the top gainers, while Infosys, NTPC, HCL Tech and Dr Reddy’s Labs lost the most.

Nifty could not breach 10,400 as it was a major resistance as predicted yesterday by our experts in Purple Trades. To read the predicted report click below-

 

Let’s take a look at the performance of major Indices-

Global markets had a mixed day today as US market Index NASDAQ had a BULLISH day. FTSE and CAC were seen in the RED but DAX was in the GREEN. Nikkei was also seen in the RED but Strait Times was in the GREEN. So the overall breath of today’s global market was also indecisive just like Indian Markets.

Source- MoneyControl, Purple Trades Research Department   

 

 

Top sectors that moved the market today-                            Data source- Moneycontrol

 

 

Top Gainers for today-                                                                                        Data source- Moneycontrol

 

 

Top losers for today-                                                               Data source- Moneycontrol

 

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