Domestic Passenger Vehicle Sales, Key Q3FY20 Results, and Top Cues in Focus Today

Tue, 11 Feb Pre-Open | Monish Vora, TM Team

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On Monday, Indian share markets witnessed selling pressure throughout the day and ended lower.

The BSE Sensex closed lower by 162 points to end the day at 40,980. M&M and Tata Steel were among the top losers.

While the broader NSE Nifty ended down by 67 points to end at 12,032.

Among BSE sectoral indices, metal stocks fell the most, followed by automobile stocks and power stocks.

Top Stocks in Action Today

Mastek share price will be in focus today as the company's wholly-owned subsidiary - Mastek (UK) has signed a definitive agreement to acquire the Middle East business of Evolutionary Systems Arabia FZ LLC (Evosys) through its group company for US$ 65 million.

Larsen & Toubro (L&T) share price will also be in focus as its subsidiary - L&T Metro Rail Hyderabad has completed India's second-largest operational metro rail project at Hyderabad.

Market participants will also track Coal India share price, BEML share price, and IDBI Bank share price as these companies are scheduled to announce their December quarter results later today.

Results Corner

Britannia has reported a rise of 23.9% in its net profit at Rs 3,696 million for the December quarter (Q3FY20) as compared to Rs 3,006.9 million for the same quarter in the previous year.

Total income of the company increased by 5% at Rs 30,478.6 million for Q3FY20 as compared to Rs 29,024.4 million for the corresponding quarter previous year.

To know more, you can read Britannia's latest result analysis on our website.

UPL has reported 14-fold jump in its net profit at Rs 1,450 million for the quarter under review as compared to Rs 100 million for the same quarter in the previous year.

On a consolidated basis, the company reported a rise of 52.1% in its net profit for the period at Rs 7 billion as compared to Rs 4.6 billion for the same quarter in the previous year.

Mahindra & Mahindra's net profit plunged 73% year-on-year (YoY) to Rs 3.8 billion in December quarter, due to loss on exceptional and one-off items worth Rs 5.5 billion. The company had reported a profit of Rs 13.9 billion in the year-ago quarter, which included exceptional gains of Rs 5.2 billion.

Revenue for the quarter fell 6% to Rs 121.2 billion compared with Rs 128.9 billion in the same quarter last year.

Operating profit margin for the quarter rose to 14.8% from 13.2% YoY.

In a BSE filing, the company said that both the domestic auto and tractor industries have shown some signs of trend reversal and has seen moderation in the double-digit degrowth.

To know more, you can read M&M's Q3FY20 result analysis on our website.

Godfrey Phillips has reported 39.2% increase in its consolidated net profit at Rs 1,138.9 million in the third quarter ended December 2019 (Q3FY20). It had posted a net profit of Rs 818.4 million in the same quarter last fiscal.

Total revenue from operations during the quarter stood at Rs 7,972.2 million as compared with Rs 6,793.3 million in the year-ago period.

During Q3FY20, cigarettes, tobacco and related products clocked revenue of Rs 7,022.4 million as compared with Rs 6,194.5 million a year ago.

The company said that its retail and related products had revenue of Rs 933.6 million as against Rs 770.2 million in the third quarter last fiscal.

To know more, you can read the company's latest result analysis on our website.

Domestic Passenger Vehicle Sales Drop 6.2% in January

Domestic passenger vehicle sales declined 6.2% to 262,714 units in January from 280,091 units in the year-ago month.

According to the data released by the Society of Indian Automobile Manufacturers (SIAM), car sales were down 8.1% at 1,64,793 units as against 1,79,324 units in the year-ago month.

Motorcycle sales last month declined by 15.2% to 8,71,886 units from 10,27,766 units a year earlier.

Total two-wheeler sales in January fell 16.1% to 13,41,005 units as compared to 15,97,528 units in the same month last year.

Sales of commercial vehicles were down 14% to 75,289 units in January. Vehicle sales across categories registered a decline of 13.8% to 17,39,975 units from 20,19,253 units in January 2019.

From the Commodity Space...

Crude oil prices edged lower on Monday amid weaker Chinese oil demand following the coronavirus outbreak and as traders waited to see if Russia would join other producers in seeking further output cuts.

Worries over supply were not alleviated on Friday when Russia said it needed more time to decide on a recommendation from a technical committee that has advised the Organization of the Petroleum Exporting Countries (OPEC) and its allies to cut production by a further 600,000 barrels per day.

Algeria's oil minister Mohamed Arkab said on Sunday the committee had advised further output cuts until the end of the second quarter.

Russia Energy Minister Alexander Novak said Moscow needed more time to assess the situation, adding that US crude production growth would slow, and global demand was still solid.

Oil traders also said they were concerned the proposed reduction would not be sufficient to tighten global markets as China's state refiners have said they would cut refining throughput by about 940,000 bpd this month.

We will keep you updated on the latest developments from this space. Stay tuned.

As per the economic schedule released by Vijay Bhambwani, editor of Weekly Cash Alerts, here are the important events due later today:

• Australia - Home Loans
• UK - Business Investments, Construction Output, GDP
• US - JOLTs Opening

To know what's moving the Indian stock markets today, check out the most recent share market updates here.

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