MarketBuzz
1259: Marketbuzz Podcast With Hormaz Fatakia: Divi's rebounds, Adani Ports to enter Sensex
Good morning and welcome to CNBCTV18's Market Bus Podcast. I am Harmas Patakya where we are counting down to the end of the Lok Sabha polls and the sixth phase of polling concluded on Saturday and over 63% of the electorate turned up to exercise their voting franchise. With this, polling has concluded in nearly 90% of the 543 Lok Sabha seats. The final phase of polling will now take place on the 1st of June and that same evening, the exit polls will be released. It is also said to be an exciting last 10 days with the counting taking place on the 4th of June. What that has also done is got the market very excited. Then there is a general consensus that the current establishment will continue for the 3rd term as well. The Nifty made a record high on Friday, finally crossing the mark of 23,000. But is everything hunky, dory with the market and the economy? Well, our Head of Research Sonal Sashdev highlights this in his weekly bottom line piece, which you can read on CNBCTV18.com. Also coming to an end this week is the May FNO series and the March quarter earning season as well. Now for the series, the Nifty is up over 400 points and a positive outcome by the 30th of May will ensure a 4th consecutive positive FNO series for the Nifty. Don't be surprised though if the index takes a bit of a breather as it did on Friday after hitting the 23,000 mark as it has surged over 1200 points in just 9 trading sessions from the lows of 218 to 1 on the 14th of May. Now on to the final week of earnings as well and plenty of companies came out with results after market hours on Friday and over the weekend as well. First up is DV's Leporatories, which has been a bit of an underperform over the last 12 months and that has sprung up a positive surprise with its results. It's a bit damaged and recovered to over 30% for the first time after 5 quarters. On a year on your basis, the margin expanded by 400 basis points. Revenue also went up by 18% while profit grew by nearly 70% from last year. NTPC's numbers were steady but the company has offered some encouraging commentary on the thermal business. The management during its earnings call said that the renewable energy business will list either by October or November of this year. The thermal business is aiming for commissioning another 2.8 gigawatt capacity by FY25 and another 1.5 gigawatt in FY26. The company intends to spend over 22,000 crore rupees as KPCS this financial year. United Spirits also reported results while the prestige and above segment reported volume growth of 3.7% compared to expectations of a 2.3% growth. The revenue growth those stood at 6.5% which was marginally lower than the 7-8% expectation. The popular segment also saw volume growth of 4% while the street was working with a consensus expectation of 0-1%. For FY24, the company reported EBITDA margins of 17.6% compared to its own guidance of 15%. On to some other pharma earnings now and all rubbing the pharma's US sales were at the lower end of the estimate but that was offset by a strong performance in Europe, the growth markets and the ARV sales. The EBITDA margins also stayed above the 20% mark for the second quarter in a row and was at a multi-quarter high. Turin pharma's numbers were largely in line with expectations. The India business grew by 10% but the US business saw a decline of 6% during the quarter. The revenue in Germany and Brazil went up by 11% and 17% respectively. The company will also seek approval of an enabling resolution from its shareholders to raise 5,000 crore during its AGM. Now Glenmark's US sales were lower than expectations at $91 million while the expectations ranged between $101-105 million. The revenue from North America also fell 12% from last year. Margins though expanded year-on-year while the India business also did well. Revenue on a year-on-year basis was flat on consolidated terms. Aside of pharma, India's housing finance saw a decline in its AUM compared to last year. The net interest income also fell nearly 20%. The asset quality improved sequentially but the gross spreads were at the lowest level in 7 quarters. Spark, Karnataka, Bank, Sundaram, Finance, Athol India, Nasar Atak are some companies that will be reacting to their results reported after market hours and over the weekend while companies like NMBC, Dish TV, Natco, Pharma, NALCO and of course India's largest insurance company, LIC, will be reporting their quarterly results today in the final leg of the earnings season. Now MM Forgings will also be in focus because during its board meeting on the 29th of May it will consider a bonus issue of shares along with its quarterly earnings and also a dividend. Now this will be the first time that MM Forgings will be issuing bonus shares after a 6-year gap. Now in the sensex region that was announced on Friday, Adani ports will be the new entrant in the index and it will replace Vipro which will be excluded. Noamma is anticipating inflows worth close to $250 million in Adani ports while Vipro on account of the exclusion may see outflows of close to $160 million. Now the changes will be effective from the 24th of April. Asian markets have opened higher this morning with key economic data from China and India due later this week. China will release its official PMI numbers on Friday while India will be reporting its 4th quarter GDP numbers. The Japanese and Korean markets are trading higher and the gift nifty as we speak is indicating an absolutely flat start for our own markets. The NASDAQ on Friday closed at a record high after NVIDIA offset any fears surrounding a delay in the rate cuts by the US Federal Reserve. Remember the US markets will be closed tonight on account of Memorial Day so no overnight queues for tomorrow morning. That's all for today. We wish you a happy trading day. A programming note though, management of Hindalco, Souslawn, DLF and HADCO will be with us on CNBC TV 18 within the next couple of hours. So keep your eyes glued to cnbctv18 and cnbctv18.com for their commentary and of course for the sharpest marketing sites. Thank you for tuning in. [BLANK_AUDIO]