Indian equity markets started the day on a negative note and extended early losses in the post noon session as traders continued to book profits following weakness in global markets. All major sectoral indices, except Pharma, closed in the red. Realty and Metal stocks were the biggest losers. While the BSE Sensex closed lower by 304 points, the NSE-Nifty closed lower by 87 points. BSE Mid Cap and the BSE Small Cap closed on a negative note.
As regards global markets, Asian indices closed in the red. European indices have also opened weak. The rupee was trading at Rs 62.7 to the dollar at the time of writing.
TVS Motor announced the third quarter results of financial year 2013-2014 (3QFY14). Revenues grew by 13% YoY during 3QFY14, while volumes were up 3.2% YoY. Operating margins improved marginally to 6% from 5.9% seen in 3QFY13. This led to a 15.4% YoY growth in operating profits. The net profits grew by 31.2% YoY. This was a result of the good operating performance as well as lower interest costs and higher other income in the quarter.
Grasim Industries has announced its financial results for the quarter ended December 2013. Standalone revenues increased by 19.8% YoY during 3QFY14 driven by higher VSF sales volumes. Operating profits declined by 9.7%; operating margins contracted from 17.7% in 3QFY13 to 13.4% in 3QFY14. While other income fell by 48.3% YoY, depreciation charges and interest expenses increased by 38.4% YoY and 25% YoY respectively. Effective tax rate increased from 24% in 3QFY13 to 28.2% in 3QFY14. Net profits declined by 36.3% YoY during the quarter. Net profit margins declined from 16.3% in 3QFY13 to 8.7% in 3QFY14. During the nine month period (9MFY14), while sales increased by 5.4% YoY, net profits declined by 10.3% YoY.