The Sensex today is down by around 28 points (0.2%), while the NSE-Nifty is down by around 16 points (0.3%). However, mid and small cap stocks are trading in the green with the BSE Mid Cap and BSE Small Cap indices up by around 0.3% each. The rupee is trading at Rs 61.06 to the US dollar.
Oil & gas stockshave opened the day on a mixed note with Gujarat State Petronet Ltd (GSPL) and Essar Oil leading the gains. However, Oil & Natural Gas Corporation (ONGC) and Bharat Petroleum Corporation Ltd (BPCL) are facing selling pressure. State-run energy exploration major ONGC has announced its first quarter results for the financial year 2013-14 (1QFY14). The company's net sales declined by 4.3% year-on-year (YoY) to Rs 192,183.1 m during the quarter. Operating profits dropped by 30.3% YoY to Rs 69,202.5 m owing to higher operating expenses, increase in subsidy burden and one-time charge towards employee pension benefits. As such, operating profit margins contracted from 49.2% in 1QFY13 to 35.8% in 1QFY14. Other income increased by 15.2% YoY to Rs 11,961 m. While depreciation charges increased by 16.8% YoY to Rs 23,325 m, interest expenses dropped sharply from Rs 293.1 m in 1QFY13 to Rs 2.1 m in 1QFY14. At the bottomline level, net profit declined by 33.9% YoY to 40,159.8 m. Net profit margins declined from 30.1% in 1QFY13 to 20.8% in 1QFY14.
Food stocks have opened the day on a firm note with Britannia Industries, Agro Tech Foods and Ruchi Soya Industries leading the gains. FMCG major Britannia Industries has announced its first quarter results for the financial year 2013-14 (1QFY14). The company's consolidated net sales increased by 14.2% year-on-year (YoY) to Rs 15,396.2 m during the quarter. Operating profits shot up 72.9% YoY to Rs 1,377.1 m owing to lower expenses and better realisations. As such, operating profit margins improved by 300 basis points (3%) from 5.9% in 1QFY13 to 8.9% in 1QFY14. Other income increased by 31.1% YoY to Rs 142.4 m. While depreciation charges increased by 18% YoY to Rs 195.7 m, interest expenses declined by 59.6% YoY to Rs 42.1 m. On the back of healthy growth and profitability during the quarter, net profit increased by 92.6% YoY to 895.8 m. Net profit margins improved from 3.4% in 1QFY13 to 5.8% in 1QFY14.