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Earnings Report update: Bajaj Auto, Havells India, Wipro, HDFC Standard Life, Kansai Nerolac Paints
Publish date: 23rd July, 2018
20 July 2018: a big day for results. A lot of major companies announced their first quarter results for FY19. Here is a summary of the different earnings results posted for the quarter.
Bajaj Auto
Bajaj Auto registered a 21% Year-on-Year (YoY) profit growth for the quarter ended June. However, the company failed to meet analysts’ expectations of around Rs 1,250 crore. The company’s revenue for the quarter grew by 26.7% to Rs 7,419.3 crore. Rise in raw material costs and employee benefit expenses had an impact on the company’s bottom line. The company’s share price tanked by Rs 293 or 9% after it announced the results. One of the main reasons was because the management commentary of gaining market share at the expense of margins was taken negatively by the investment community.
Research recommendation: Reduce – TP: Rs 2,808
Havells India
Havells India, a Fast Moving Electronic Goods (FMEG) company posted a net profit of Rs 210.4 crore, resulting in a 73.3% YoY growth for the first quarter. The company posted a Profit after Tax (PAT) of Rs 121.4 crore and revenues of Rs 1,888 crore (19% growth).
Research recommendation: Sell – TP: Rs 500
HDFC Standard Life
HDFC Standard Life posted a 20.2% rise in net profits to Rs 380.10 crore for the quarter. A 37% rise in total premium aided by a 62% increase in new business helped the company report good results for the quarter according to a statement by the company. The company’s share price increased by Rs 20.15 or 4.28% by the end of the trading day.
Research recommendation: Sell – TP: Rs 405
Kansai Nerolac Paints
Paints company Kansai Nerolac Paints reported a marginal decline in its net profits for the quarter ended June. It posted a net profit of Rs 139.84 compared to Rs 140.81 in the corresponding period in the previous quarter. While the company witnessed a double digit growth in all segments, a rise in crude oil prices, volatility in forex and depreciation in the rupee impacted the company’s bottom line. The company’s share price saw a decline of 0.25% at the end of trading.
Research recommendation: Buy – TP: Rs 600
Wipro
Wipro reported a 5.16% drop in net profits to Rs 1,922 crore for the first quarter of FY19. However, revenues for the quarter rose by 3.4% to Rs 14,231 crore, higher than the Rs 13,981 crore expected by analysts according to a report by BloombergQuint. The company expects a strong momentum led by banking and financial services in the near future. The company’s share price declined by Rs 4.15 or 1.45% on Friday.
Research recommendation: Reduce – TP: Rs 295
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