Stocks to watch: Tata Consumer, ITC, Tata Steel, IOC, Torrent Power, Titagarh Rail, Granules India

GAIL (India): GAIL reported a 77.5% increase in consolidated net profit for Q1FY25, surpassing analysts’ expectations. Net profit rose to ₹3,183 crore for the quarter ending in June. Consolidated net profit increased by 28.6% to ₹2,474.31 crore. Revenue from operations reached ₹34,821.89 crore, up from ₹32,848.78 crore YoY. QoQ, revenue rose to ₹33,692 crore from ₹32,335 crore. Profit after tax (PAT) grew by 25% to ₹2,724 crore, driven by higher gas transmission volumes and improved natural gas marketing margins. GAIL incurred a capex of ₹1,659 crore, mainly on pipelines and petrochemicals. The company advanced its Net Zero carbon target to 2035 from 2040.

Tata Consumer Products: The company reported a 14.3% drop in net profit to ₹289.3 crore for Q1FY24, compared to ₹337.7 crore in the same period last year. Revenue from operations rose 16.3% to ₹4,352 crore. EBITDA for the quarter increased by 22.5% to ₹667.4 crore. The EBIT margin rose to 15.3%. Total expenses increased by 19% to ₹3,926 crore, driven by higher finance and amortisation charges. The company’s revenue grew the fastest in thirteen quarters, with a 9% rise in its salt business and a 20% organic rise in its ‘growth business’. Profit before exceptional items and tax was ₹465 crore, down 6%. Total income rose by 15.6% to ₹4,391.24 crore. Tata Starbucks added 17 new stores, bringing the total to 438 across 65 cities.

ITC: The company is expected to report Q1FY25 revenue at ₹17,171 crore, up 8.5% YoY. Net profit is likely to be ₹5,137 crore, a 4.8% increase. The FMCG and hotels segments are expected to perform well, while agri and paper arms may drag. Cigarette revenues are expected to grow 7-9%, with a 2-4% volume growth. The FMCG segment is expected to grow around 7%, and ITC Hotels will clock 8% growth. Analysts will monitor demand in metro areas, competitive intensity, and updates on the Hotels business spin-off and agribusiness outlook.

Jindal Stainless: The company reported a 13.1% YoY fall in net profit to ₹648.1 crore for Q1FY25. Revenue from operations dipped 7.4% to ₹9,429.8 crore. EBITDA rose 1.6% to ₹1,211.8 crore, with an EBITDA margin of 12.9%. Sales were 5,78,143 tonnes, up 1.4% QoQ. The company’s standalone net debt stood at ₹3,296 crore. The co-branding scheme, Jindal Saathi 5.0, created further pull in the ornamental pipe and tube segment. Export volumes remained flat due to stagnant growth in US and EU markets. The company plans to raise up to ₹5,000 crore through various equity and equity-linked instruments.

Tata Steel: Tata Steel is expected to report a YoY surge in operating profit for Q1FY25, driven by better performance in its Indian operations and reduced losses in Europe. EBITDA is likely to be ₹6,318 crore, up 22% YoY. Revenue is expected to rise 3% YoY to ₹57,728 crore. Net profit is likely to rise 262% YoY to ₹1,025 crore. Tata Steel India sales were 4.94 MT, down 9% QoQ. Europe sales remained strong at 2.21 MT, up 4.2% QoQ/YoY. Analysts will monitor updates on the UK blast furnace closure, profitability, and cash flow from European operations.

Adani Group: Adani plans to bid for Jaypee Group’s real estate assets in the National Capital Region, potentially spending up to $1 billion. This move, part of a resolution package, aims to capture the growing real estate demand in areas like Greater Noida and Gurugram. The deal could expand Adani’s real estate business four-fold. Adani has also planned to bid for Jaypee’s cement assets, offering around ₹15,000 crore in total to lenders. Jaypee’s assets include luxury villas, apartments, and a motor racing track. If successful, Adani will rival major realty players like Godrej and Tata Group.

Dabur India: The company is set to report its Q1FY25 earnings on August 1, 2024. Revenue is expected to grow by 5% YoY to ₹3,286 crore, with net profit likely to rise by 7.6% to ₹499 crore. The healthcare and HPC portfolios are expected to lead growth, while the food business faces challenges due to weaker beverage sales. Gross margin is likely to expand, but higher A&P spends will impact EBITDA margins. Analysts will monitor rural demand recovery and new product launches.

Titagarh Rail Systems: TRSL reported an 8.4% YoY increase in net profit to ₹67 crore for Q1FY25. Revenue from operations dipped 0.9% to ₹903 crore. EBITDA fell 4.1% to ₹101.7 crore, with an EBITDA margin of 11.2%. The company received approximately ₹350 crore worth of orders in Q1FY25, including ₹250 crore for freight rolling stocks and ₹100 crore for propulsion systems. The order book includes 20,300 wagons and 1,592 metro and Vande Bharat coaches.

Indus Towers: The company reported a consolidated net profit of ₹1,926 crore for Q1FY25, up 42.88% YoY. Revenue from operations rose 4.34% to ₹7,383 crore. Consolidated EBITDA increased by 29.4% to ₹4,545 crore, with an EBITDA margin of 61.6%. The company approved a share buyback worth ₹2,640 crore. Vodafone Idea has been paying monthly dues and an amount against old dues. Indus is discussing a final payment plan with Vodafone Idea to clear its overdue balance.

Star Health and Allied Insurance: The company reported a 10.8% YoY increase in net profit to ₹318.9 crore for Q1 FY25. Gross Written Premium (GWP) grew by 18% to ₹3,476 crore. Investment assets grew by 19% YoY to ₹15,802 crore, with an investment income of ₹295 crore. The combined ratio for Q1FY25 was 99.2%. The company’s solvency ratio stands at 2.29 times. Star Health’s growth is driven by robust underwriting, expanded agent network, and new initiatives like home health care.

Adani Wilmar: The company plans to invest in regional companies in categories like spices, condiments, and ready-to-cook meals. The company recorded revenue of ₹51,262 crore in FY24, with a 10% volume growth. Adani Wilmar reported a profit of ₹313 crore for Q1FY25, with revenue rising 10% to ₹14,169 crore. The company has set aside ₹500 crore from its IPO proceeds for acquisitions and investments. Adani Wilmar recently acquired a 67% stake in Omkar Chemical Industries and is evaluating potential targets for further acquisitions.

Indian Oil Corporation: IOC reported a consolidated net profit of ₹3,722.63 crore for Q1FY25, a 75% decline from the year-ago period’s ₹14,735.30 crore. Sequentially, net profit fell 32% from ₹5,487.92 crore in Q4 FY24. Revenue declined nearly 3% to ₹2.19 lakh crore. EBITDA dropped 55% to ₹11,024.51 crore. The average gross refining margin (GRM) decreased to $6.39 per barrel from $8.34. The board approved a ₹1,698.67 crore greenfield terminal at Bihta, Patna. Refineries throughput was 18.168 MMT, pipeline throughput was 25.811 MMT, and domestic sales volume was 24.063 MMT. Shares closed at ₹183 on BSE, up 1.55%.

Coal India: The company is expected to report a net profit of ₹5,436.1 crore for Q1FY25, a 40% QoQ and 2% YoY decline, due to reduced e-auction premiums. Revenue is anticipated at ₹36,792 crore, up 2% YoY but down 4% QoQ. EBITDA is forecasted at ₹6,807 crore, down 40% QoQ and 1.3% YoY. Production rose 7.9% YoY to 189.3 million tons, and dispatches increased 5.2% YoY to 196.6 million tons. The company plans to sell 15-20% of its volume through e-auction, with the rest via Fuel Supply Agreement (FSA).

Adani Energy Solutions: The company’s $1 billion QIP offering is likely to attract investors like GQG Partners, ADIA, and IHC. The QIP has seen investor demand worth approximately ₹26,000 crore. Funds will be used for capex, smart meters, and debt repayment. The board approved the QIP with a floor price of ₹1,027.11 per share.

Torrent Power: The company reported an 87.2% YoY increase in net profit to ₹996.3 crore for Q1FY25. Revenue rose 23.3% to ₹9,033.7 crore. EBITDA jumped 56.8% to ₹1,857.9 crore, with an EBITDA margin of 20.6%. The board approved the sale of Torrent Electricals for ₹85 crore. The company has an installed generation capacity of 4,415 MWp, with 3,077 MWp of renewable projects under development.

Dixon Technologies: The company reported a 94.2% YoY rise in net profit to ₹133.68 crore for Q1FY25. Revenue surged 101% to ₹6,579.80 crore. EBITDA margins dropped 20 bps to 3.9%. The Mobile and EMS division fueled revenue growth, clocking a 189% YoY increase to ₹5,129 crore.

IndiaMART Intermesh: The company reported a net profit of ₹114 crore for Q1FY25, up 37.18% YoY. Revenue rose 17.44% to ₹331.3 crore. Collections from customers increased 14% to ₹366 crore. Deferred revenue grew 23% YoY to ₹1,474 crore. Unique business enquiries grew 15% YoY to 25 million.

Castrol India: The company reported a 3% YoY increase in PAT to ₹232 crore for Q2 CY2024. Revenue rose 5% to ₹1,398 crore. The company focuses on volumes and margins, with ongoing innovations and strategic brand investments expected to sustain growth.

Whirlpool of India: The company reported a 22.48% YoY increase in net sales to ₹2,496.86 crore for Q1FY25. Net profit rose 92.07% to ₹143.82 crore. EBITDA increased 65.74% to ₹262.29 crore.

Vedanta: The company secured approval from 75% of its lenders for its proposed demerger. The company will present the scheme to the NCLT. The demerger aims to split Vedanta into six independent listed entities, simplifying its corporate structure and creating sector-focused companies. The demerger is expected to unlock significant value and align with India’s growth goals.

Granules India: The company reported a 181% jump in consolidated net profit for Q1 FY25 to ₹1,346 crore, up from ₹479 crore in the same period last year. Revenue increased 20% YoY to ₹11,799 crore, with EBITDA margin up 600 bps to 22%. North America contributed 74% of revenue, up from 61% last year. API, PFI, and finished dosages accounted for 14%, 10%, and 76% of revenue, respectively. Net debt stood at ₹794.1 crore, with a net debt to EBITDA ratio of 0.77x.

Mangalore Chemicals & Fertilizers and Paradeep Phosphates: Competition Commission of India (CCI) approved the amalgamation of Mangalore Chemicals & Fertilizers (MCFL) with Paradeep Phosphates Ltd (PPL). MCFL, part of the Adventz group, is engaged in producing and marketing complex phosphatic fertilizers. Zuari Agro Chemicals holds a 54.03% stake in MCFL. CCI also approved Zuari Maroc Phosphates Pvt Ltd’s (ZMPPL) acquisition of 3,92,06,000 equity shares of MCFL from Zuari Agro Chemicals Ltd. ZMPPL is a 50:50 joint venture between Zuari Agro Chemicals Ltd and OCP SA. Additionally, CCI cleared Bunge Global SA’s acquisition of 100% share capital of Viterra Ltd.

Navin Fluorine International: The company reported a 16.8% YoY decline in net profit for Q1 FY25 to ₹51.2 crore. Revenue increased 6.6% to ₹523.7 crore. EBITDA dipped 12.1% to ₹100.4 crore, with EBITDA margin at 19.2%. Sales were impacted by inventory rationalisation. The company announced a supply agreement for a patented agrochemical product for the Japanese market, with an annual revenue potential of ₹20-30 crore starting from CY25. A new agro molecule was added at the Surat facility, with an expected annual peak revenue potential of ₹40-50 crore. The agro specialty capex at Dahej is set to begin production by September 2024.

Infosys: The company announced a collaboration with Danish digital infrastructure provider TDC Net to accelerate its digital transformation. The partnership aims to modernise TDC Net’s IT infrastructure, improve customer experience, and optimise IT and operational service costs. Infosys will implement AI-driven hyper-automation to enhance business productivity by consolidating TDC Net’s IT systems into fewer platforms.

State Bank of India: Mashreq acted as the Sole Global Coordinator for State Bank of India’s (SBI) $750-million senior unsecured syndicated term loan facility. The facility was upsized from $350 million due to strong global demand and will be used for general corporate funding purposes of SBI. The transaction saw participation from 11 institutions and was 2.2 times oversubscribed.

IIFL Securities: SEBI fined IIFL Securities ₹3 lakh and 5 Paisa Capital ₹2 lakh for failing to act with due diligence and care as market intermediaries. The brokerages were found to have uploaded incorrect client data in the UCC database, including wrongly identifying clients as domiciled in Sikkim to avoid stamp duty on commodity derivative transactions.

Bajaj Finance: Daimler India partnered with Bajaj Finance to offer comprehensive financing solutions to customers. The collaboration aims to enhance the accessibility and convenience of financing options across Daimler India Commercial Vehicles’ portfolio. Tailored financial products will be designed to meet customer needs, providing flexible financing options to optimise cash flows and fuel business growth.

Balu Forge: The company reported a 104.98% YoY increase in net profit to ₹34.16 crore in the April-June quarter of 2023. Revenue rose by 56% YoY to ₹175.3 crore.

Oriental Rail Infrastructure: The company secured an order worth ₹1.92 crore from the Modern Coach Factory (MCF) in Raebareli, Indian Railways, for manufacturing and supplying 30 sets of seats and berths.

Macrotech Developers: The company reported a 166% increase in consolidated net profit to ₹476 crore for the quarter ended June 30, 2024, up from ₹178 crore in the same period last year. Revenues from operations of ₹2,850 crore represented a 76% YoY increase, and adjusted EBITDA of ₹960 crore was up 107% YoY.

Varun Beverages: The company’s net profit for Q2FY24 grew 26% to ₹1,253 crore for the June quarter. The company had posted a net profit of ₹994 crore in the year-ago period. Revenue from operations increased 29% to ₹7,333.6 crore for the same quarter, up from ₹5,699.7 crore in Q1FY24.

Exide Industries: The company reported a 16% increase in net profit at ₹280 crore for the June quarter. Revenue from operations increased 6% to ₹4,313 crore in the corresponding quarter.

Manorama Industries: The company has announced August 27 as the cut-off date for the final dividend.

Samvardhana Motherson: The company’s board of directors, on August 2, will consider raising funds by issuing equity shares or any other securities convertible into equity shares.

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