Stocks to Watch; Tech Mahindra, Axis Bank, Jubilant Foods, Chalet Hotels, Apollo Microsystems and others in news

In the pre-market activity for October 26, 2023, several prominent companies are making headlines. Here’s a roundup of the latest financial news for these key players:

Tech Mahindra started the day with its Q2 FY24 results. The IT services company posted a consolidated profit of Rs 494 crore, reflecting a decrease of nearly 29 percent compared to the previous quarter. This decline was accompanied by a sharp fall in EBIT and margin. Consolidated revenue for the quarter reached Rs 12,864 crore, representing a 2.2 percent decrease from the previous quarter. The company also declared an interim dividend of Rs 12 per equity share. While there was a decrease in the Europe and Rest of the World business, the Americas saw a growth of 0.7 percent QoQ.

Axis Bank, a private sector lender, reported a standalone profit of Rs 5,864 crore for the quarter ending September FY24, marking a 10 percent increase over the previous year, despite higher provisions. Operating profit and core operating profit both saw a 12 percent YoY increase. Net interest income grew by 19 percent YoY to reach Rs 12,315 crore during the quarter. Asset quality improved, with gross NPA decreasing by 23 basis points QoQ to 1.73 percent and net NPA declining by 5 basis points to 0.36 percent in Q2 FY24.

Jubilant Foodworks faced a challenge in Q2 FY24, with a massive 39.5 percent YoY decline in standalone profit, which stood at Rs 72.1 crore. This drop was attributed to a significant fall in EBITDA margin. However, standalone revenue from operations grew by 4.5 percent, reaching Rs 1,344.8 crore during the same period, driven by a 7.9 percent increase in Domino’s delivery channel sales.

Chalet Hotels had a robust financial performance, with consolidated profit growing by 131.4 percent YoY to Rs 36.4 crore, driven by EBITDA margin and topline. The company saw revenue from operations rise by 27 percent YoY to Rs 314.5 crore, while EBITDA increased by 48 percent YoY to Rs 126 crore. The margin also expanded by 570 basis points to 40 percent for the quarter.

Chennai Petroleum Corporation, a subsidiary of Indian Oil Corporation, recorded a profit of Rs 1,190.56 crore for Q2 FY24, marking a significant increase of 117 percent over the previous quarter. This growth was driven by a spike in EBITDA. Revenue from operations (excluding excise duty) also saw a healthy increase of 12.2 percent QoQ, reaching Rs 16,544.6 crore for the quarter.

Indian Overseas Bank underwent a change in its board of directors. Kartikeya Misra was nominated by the Government of India as Director on the board, replacing Annie George Mathew with immediate effect and until further orders. Annie George Mathew ceased to be a director on the board of the bank.

In a legal development, the English Court has determined that defendants, including GVK Power and Infrastructure, are liable for an amount of $2.19 billion, including interest. GVK Power had provided a corporate guarantee for 49 percent of the overall loan amount of $1.13 billion to GVK Coal Developers Pte Limited, Singapore, for the acquisition and pre-development costs of the Australian coal project. The loan had been classified as non-performing in FY15–16, and lenders sought to recover the amounts advanced to GVK Coal Developers.

Gulf Oil Lubricants India, a Hinduja Group company, reported a 41.2 percent YoY increase in profit, amounting to Rs 73.63 crore for Q2 FY24. Revenue from operations reached Rs 802.30 crore, marking an 11.51 percent YoY growth, and EBITDA saw a 25.2 percent YoY increase, reaching Rs 100.48 crore during the same period.

Indus Towers, a passive telecom infrastructure provider, delivered strong results for the quarter ending September FY24. The company reported a 49 percent YoY growth in consolidated profit, reaching Rs 1,295 crore. Revenue also increased by 10 percent YoY to Rs 7,133 crore, and consolidated EBITDA saw a 23 percent YoY growth, reaching Rs 3,456 crore. During the quarter, the company added 16,286 towers, bringing the total to 2,04,212 towers compared to the previous year.

Sonata Software reported consolidated profit of Rs 124.2 crore for the quarter ending September FY24, marking a 3.4 percent increase over the previous quarter. This growth in profitability was achieved despite a dip in topline, thanks to a strong performance in EBIT and margin. Revenue from operations during the quarter saw a sequential decrease of 5.1 percent, amounting to Rs 1,912.6 crore. In addition to its financial results, the company has also announced an interim dividend of Rs 7 per share for the current financial year. Furthermore, they’ve received board approval for a bonus issue in the ratio of 1:1.

Sona BLW Precision Forgings, a leading automotive components manufacturer, recorded a 34 percent YoY growth in consolidated profit, reaching Rs 124.06 crore for Q2 FY24. During the same period, revenue from operations increased by 20.6 percent YoY, reaching Rs 787.5 crore. Notably, 78 percent of the net order book, which stands at Rs 22,100 crore as of September 2023, is attributed to electrical vehicle programs.

Rallis India, a Tata Group company, achieved a net profit of Rs 82 crore for the quarter ending September FY24, indicating a 14 percent growth over the previous year. This impressive performance in profitability was driven by healthy EBITDA and margin. However, revenue from operations decreased by 12.5 percent YoY, amounting to Rs 832 crore during the quarter.

CMS Info Systems, a company that provides logistics and technology solutions to banks, reported consolidated profit of Rs 84.4 crore for the quarter ending September FY24, marking a 16.3 percent growth over the previous year. The company also saw revenue from operations rise by 15.3 percent, reaching Rs 543.7 crore during the quarter, compared to Rs 471.7 crore in the same period of the previous fiscal year.

Apollo Micro Systems has entered into a term loan agreement with Bajaj Finance to secure credit facilities of up to Rs 15 crore, which will be used for research and development purposes.

Semac Consultants shared news of a change in leadership. The board members have approved the appointment of Deepak Jain as Chief Financial Officer, effective from November 17. This move follows the resignation of Anuj Kumar from the position of Chief Financial Officer, citing personal reasons.

IRM Energy, a Gujarat-based gas distribution company, is set to make its debut on the BSE and NSE on October 26. The final issue price for its shares has been set at Rs. 505 per share.