Stocks to Watch; Reliance, M&M Financial, IDFC First Bank, UltraTech Cement and others in news

Stocks to watch: Check out the companies making headlines before the opening bell today, on October 30, 2023.

1. Reliance Industries: The conglomerate, led by Mukesh Ambani, saw robust growth with a 29.7% YoY increase in consolidated profit, reaching Rs 19,878 crore for the quarter ending September FY24. This impressive performance was bolstered by a 30.2% YoY rise in EBITDA to Rs 44,867 crore, and a margin expansion of 390 basis points to 17.5%. Reliance’s gross revenue for the quarter grew by 1.2% YoY to Rs 2,55,996 crore, driven by the ongoing expansion of its consumer businesses. Jio Platforms reported a 10.6% YoY increase in revenue, attributed to a 7.5% growth in its subscriber base and higher ARPU. Meanwhile, Reliance Retail Ventures showed an 18.8% YoY growth in revenue, primarily led by its food and grocery segments.
   
2. M&M Financial Services: The financial services company posted a profit of Rs 235 crore for the quarter ending September FY24, reflecting a 47.5% YoY decline due to increased impairment on financial instruments. On the positive side, revenue from operations grew by 24.1% YoY to Rs 3,212 crore during the same period, largely driven by the growth in its asset book. Net interest income reached Rs 1,674 crore, marking a 9% YoY increase. The net interest margin for the quarter was 6.5%, affected by higher borrowing rates and a shift in the portfolio mix in favor of better credit quality for customers. Disbursements in Q2 rose by 13% YoY to Rs 13,315 crore.
   
3. IDFC First Bank: The bank reported a substantial 35% YoY growth in profit, totaling Rs 751 crore for the July–September period of FY24. This was underpinned by a strong 35% growth in core operating income. Net interest income for the quarter stood at Rs 3,950 crore, reflecting a 32% YoY increase, with the net interest margin expanding by 49 basis points YoY to 6.32% in Q2 FY24. Asset quality improved, as the gross NPA fell by 6 basis points QoQ to 2.11%, and the net NPA declined by 2 basis points to 0.68% for the quarter.
   
4. Inox Wind: The wind energy company reduced its net loss to Rs 29.23 crore for the quarter ending September FY24, down from Rs 129.31 crore in the same period the previous year. Revenue from operations surged by 246% YoY to Rs 370.6 crore in Q2 FY24.
   
5. Bharat Petroleum Corporation: The state-owned oil marketing company reported a standalone profit of Rs 8,501.2 crore for the quarter ending September FY24, compared to a loss of Rs 304.2 crore in the same period last year. This improvement was partly attributed to lower input costs. However, revenue from operations during the same period decreased by 10.3% to Rs 1,02,986 crore.
   
6. UltraTech Cement: The cement giant approved the third phase of expansion, allocating an investment of Rs 13,000 crore to increase capacity by 21.9 million tonnes per annum (mtpa) through a combination of brownfield and greenfield projects. These new capacities are expected to commence commercial production gradually from FY26 onwards, elevating the company’s global cement capacity to 187 mtpa.
   
7. Bharti Airtel: The telecom service provider has partnered with Microsoft to offer Indian organizations calling services via Microsoft Teams, integrating with Airtel IQ. The Department of Telecommunications in Mumbai imposed a penalty of Rs 1,63,000 for an alleged violation of subscriber verification norms.
   
8. SBI Cards and Payment Services: The credit card issuing company reported a 15% YoY growth in profit, reaching Rs 603 crore for the July–September period of FY24. Revenue from operations during the quarter increased by 24% YoY to Rs 4,087.4 crore, primarily driven by interest income and fees and commission income.
   
9. Blue Dart Express: The logistics company saw a 22% YoY decline in consolidated profit, amounting to Rs 73.06 crore for the quarter ending September FY24. Revenue from operations during the same period decreased by 0.06% YoY to Rs 1,324.5 crore.
   
10. NTPC: The country’s largest power generation company reported a standalone profit of Rs 3,885 crore for the quarter ending September FY24, marking a 16.6% YoY increase driven by reduced tax and fuel costs. However, revenue from operations dropped 0.3% to Rs 40,875 crore in Q2 FY24 compared to the same period the previous year.
    
11. City Union Bank: The private sector lender reported a 1.8% YoY increase in profit, reaching Rs 281 crore for the quarter ending September FY24. Improved recovery and reduced slippages bolstered profitability despite challenges. Net interest income fell by 5.3% YoY to Rs 538 crore, while deposits increased by 6% and advances by 3%. Notably, asset quality improved, with gross NPA decreasing by 25 basis points QoQ to 4.66%, and net NPA declining by 17 basis points QoQ to 2.34% in Q2 FY24.
    
12. Dr. Reddy’s Laboratories: The United States Food and Drug Administration (USFDA) conducted a routine cGMP inspection at the company’s formulations manufacturing facility (FTO-3) in Bachupally, Hyderabad, on October 19 and 27, 2023. Following the inspection, the USFDA issued a Form 483 with 10 observations.
    
13. Central Depository Services (CDSL): CDSL achieved a 35.4% YoY growth in consolidated profit, totaling Rs 109 crore for the July–September period of FY24. This growth was attributed to a healthy topline and EBITDA. Consolidated revenue from operations grew by 39.2% YoY to Rs 207.3 crore for the quarter.
    
14. AU Small Finance Bank: The bank reported a 17% YoY growth in profit, reaching Rs 402 crore for the quarter ending September FY24, despite elevated provisions. Pre-provisioning operating profit increased by 30% YoY to Rs 648 crore, and net interest income grew by 15% to Rs 1,249 crore during the quarter. However, asset quality weakened, with the gross non-performing asset rising by 15 basis points QoQ to 1.91%, and the net NPA increased by 5 basis points QoQ to 0.60% for the quarter.
    
15. IRB Infrastructure Developers: The construction engineering company achieved a 12.2% YoY growth in consolidated profit, reaching Rs 95.7 crore for the quarter ending September FY24. This growth was supported, in part, by a healthy topline and other income. Revenue from operations increased by 30% YoY to Rs 1,745 crore for the quarter. Additionally, IRB Infrastructure Trust, an associate company, received a letter of award from the National Highways Authority of India (NHAI) for a project in Uttar Pradesh and Madhya Pradesh.
    
16. Union Bank of India: The public sector lender reported a significant 90% YoY growth in net profit, reaching Rs 3,511 crore for the quarter ending September FY24, primarily due to a substantial fall in provisions. Net interest income grew by 10% YoY to Rs 9,126 crore for the quarter, with a net interest margin expansion of 3 basis points at 3.18%. Asset quality improved during the quarter, with the gross NPA falling by 96 basis points sequentially to 6.38%, and the net NPA declined by 28 basis points to 1.3%.
    
17. Kalpataru Projects International: The Directorate General of GST Intelligence conducted a search at certain premises of the company in Gujarat. The company cooperated by providing the necessary information sought by the authority, but as of now, no order has been passed by the authority.
    
18. Panacea Biotec: The biotechnology company announced that its subsidiary, in partnership with Apotex Inc., launched Paclitaxel protein-bound particles for injectable suspension (Albumin-bound), a generic version of Abraxane, in the Canadian market. This product is used for the treatment of metastatic breast cancer, non-small cell lung cancer, and adenocarcinoma of the pancreas.
    
19. Bharat Electronics: The state-owned aerospace and defense electronics company reported a profit of Rs 812.3 crore for the quarter ending September FY24, reflecting a sharp 33% YoY increase. This growth was driven by higher other income and EBITDA margin. Revenue from operations also increased by 1.2% YoY to Rs 3,993.3 crore during the quarter.