Bharti Airtel Q4 margins to remain under pressure

Bharti Airtel is likely to print 1.6% qoq rise in domestic wireless revenues driven by 4% qoq growth in volumes offset by persistent pressure on voice pricing.

Bharti Airtel, country’s largest telecom operator, will announce its financial results on April 27 for the fourth quarter ended March 31, 2016.

IIFL estimates the company’s net profit to be at Rs.1,179 crore, which constitutes a 5.6% rise qoq and 6.1% drop yoy.

As per IIFL’s forecast, the company is expected to register a net revenue of Rs.24,744 crore, growing at 7.4 % yoy and 2.7 % qoq. 

Operating profit margin of the company is likely to be at 34.9%, a fall of 27 bps yoy and 12 bps qoq.

Bharti Airtel is likely to print 1.6% qoq rise in domestic wireless revenues driven by 4% qoq growth in volumes offset by persistent pressure on voice pricing. IIFL expects Africa INR revenues to rise 1.2% qoq which in turn would drive 2.7% qoq jump in consolidated revenues. Margins are expected to remain under pressure on higher network opex which would translate into 14% qoq decline in PAT.

Telecom operators would enjoy a strong topline quarter on back of domestic seasonality tailwind though margin pressures would be evident qoq

Other key Q4 results on April 27 include Ceat India, Exide India, Fag Bearings, Gati Limited, JSW Energy, Kansai Nerolac Paints, Kirloskar Pneumatic, KPIT Technologies, Sadbhav Engineering, Yes Bank, Shriram City Union Finance, and Alembic Pharmaceuticals. 

Strides Shasun says no impact on company' s business

Strides Shasun Limited has stated about the ''Notice of Concern'' dated April 12, 2016 issued by World Health Organization(WHO) to Semler Research Centre Private Limited, a Bangalore based Clinical Research Organization. 

Strides Shasun Limited has stated about the ''Notice of Concern'' dated April 12, 2016 issued by World Health Organization(WHO) to Semler Research Centre Private Limited, a Bangalore based Clinical Research Organization.

The company clarified that there will be any impact on the company's business.

Engineers India signs contract with Bangladesh Petroleum Corp

The company has signed a contract with Bangladesh Petroleum Corporation (BPC) for providing project management consultancy services for a refinery expansion project worth USD1.7bn. 

Engineers India Ltd was up 1% at Rs. 181. The company has signed a contract with Bangladesh Petroleum Corporation (BPC) for providing project management consultancy services for a refinery expansion project worth USD1.7bn.

The scrip opened at Rs. 183 and has touched a high and low of Rs. 183.65 and Rs. 181.5 respectively. So far 149923(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 6081.77 crore.

The BSE group 'A' stock of face value Rs. 5 has touched a 52 week high of Rs. 252 on 01-Jan-2016 and a 52 week low of Rs. 143.25 on 17-Feb-2016. Last one week high and low of the scrip stood at Rs. 183.3 and Rs. 171 respectively.

The promoters holding in the company stood at 59.37 % while Institutions and Non-Institutions held 27.17 % and 13.46 % respectively.

The stock is currently trading above its 200 DMA.

Maruti Suzuki Q4 operating profit margin likely to decline

Maruti Suzuki, one of the largest automobile companies in the country, will announce its financial results for the quarter ended March 31, 2016 on April 26, 2016. 

Maruti Suzuki, one of the largest automobile companies in the country, will announce its financial results for the quarter ended March 31, 2016 on April 26, 2016.

As per IIFL’s forecast, the company is expected to register a net revenue of Rs. 14,620 crore, a growth of 7.3 % on yoy basis while a drop of 3.1 % on qoq basis. 

Operating Profit Margin of the company is likely to be at 14.2 %, a 168 bps fall yoy and 19 bps on qoq basis.

IIFL estimates that the company’s net profit is expected to be at Rs. 1,157 crore, a 13.5 % rise qoq while a 9.9 % drop on yoy basis.

Autos are to register strong PAT growth (32.4% yoy) with most major players, except Maruti and Bharat Forge, doing well.

Currency movements will have significant bearing on margin movement. For Tata Motors (JLR in particular) and Bajaj Auto movement has been favourable, while it is adverse for Maruti and Hero Motocorp.

Maruti has seen a sharp increase in contribution of UVs to its portfolio.

Other key Q4 results on April 26 include Axis Bank, Biocon, Mahindra Lifespace Developers, Bharti Infratel, Rallis India, Swaraj Engines, Syngene International and Agro Tech Foods.

Our preview coverage universe of 374 companies, representing ~75% of India’s equity market cap is expected to report 4.2% yoy drop in net profit in Q4 FY16. On a qoq basis, profits will rise by 17% on account of low base of preceding two quarters, which had witnessed sequential PAT declines. 


stock price: 

Maruti Suzuki India Ltd is currently trading at Rs. 3728, down by Rs. 6.3 or 0.17% from its previous closing of Rs. 3734.3 on the BSE.

The scrip opened at Rs. 3715 and has touched a high and low of Rs. 3740 and Rs. 3691 respectively. So far 141662(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 112805.73 crore.

The BSE group 'A' stock of face value Rs. 5 has touched a 52 week high of Rs. 4789 on 23-Nov-2015 and a 52 week low of Rs. 3202.1 on 29-Feb-2016. Last one week high and low of the scrip stood at Rs. 3843.75 and Rs. 3654.2 respectively.

The promoters holding in the company stood at 56.21 % while Institutions and Non-Institutions held 37.09 % and 6.7 % respectively.

The stock is currently trading above its 200 DMA.

Infosys, Wipro may pay large upfront payment for deals

Infosys CEO Vishal Sikka reportedly said while Infosys does not make such investments with every large deal, some deals might require such payments.

Infosys and Wipro are planning to make large upfront payments while bidding for large deals that offer assured revenues, according to reports.

Report says that this move comes at a time when India's $160-billion IT industry faces its slowest revenue growth.

Infosys CEO Vishal Sikka reportedly said while Infosys does not make such investments with every large deal, some deals might require such payments. 

Infosys Ltd ended at Rs. 1217.05, up by Rs. 3.2 or 0.26% from its previous closing of Rs. 1213.85 on the BSE.

The scrip opened at Rs. 1214 and touched a high and low of Rs. 1224.45 and Rs. 1201.05 respectively. A total of 2811300(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 279549.65 crore.

The BSE group 'A' stock of face value Rs. 5 touched a 52 week high of Rs. 1267.9 on 18-Apr-2016 and a 52 week low of Rs. 932.55 on 10-Jul-2015. Last one week high and low of the scrip stood at Rs. 1250 and Rs. 1201.05 respectively.

The promoters holding in the company stood at 12.75 % while Institutions and Non-Institutions held 57.69 % and 29.07 % respectively.

The stock traded above its 50 DMA.

Top 15 stocks in focus today: Biocon, ABB India, ONGC

Check out the companies which will be in focus during trade today based on recent and latest news developments. 

Biocon: Biocon will announce its Q4 numbers today. IIFL estimates that the company’s net profit is expected to tank to Rs. 101 crore, at a rate of 50% yoy and 1.9% qoq.

ABB India: ABB India Ltd posted a net profit of Rs. 709.80 mn for the quarter ended March 31, 2016 as compared to Rs. 542.90 mn for the quarter ended March 31, 2015.

UltraTech Cement: UltraTech Cement Ltd, India’s largest cement maker, on Monday said net profit for the quarter ended 31 March rose 10% due to better operational performance.

Infosys, Wipro: Infosys and Wipro are planning to make large upfront payments while bidding for large deals that offer assured revenues, according to reports.


Novartis: The company is planning to sell its near $14 bn stake in rival Roche, according to reports. Novartis built up one-third stake in Roche's voting stock between 2001 and 2003.

BPCL: BPCL has received green nod for Rs. 694-crore project of developing LPG import terminal as well as storage, bottling and bulk distribution facilities at Haldia Dock Complex in West Bengal, according to reports.

Godrej Consumer Products Ltd: GPCL plans to roll out mosquito repellent brand Good Knight in Africa as part of its plan to expand presence in the continent, as per media reports.

Indiabulls Real Estate Ltd: Property developer Indiabulls Real Estate reported a 36% decline in consolidated net profit to Rs.58.91 crore for the quarter ended 31 March due to an increase in tax expenses and finance costs.

ONGC: ONGC’s crude oil production during March, 2016 was 1870.06 TMT which is 6.04% lower than the target for the month and 4.04% lower than the production achieved in the corresponding month of last year.

Indiabulls Housing Finance: The company reported standalone net profit of Rs. 641.84 crore for the quarter ended March 31, 2016, registering growth of 21.81% yoy and 5.51% qoq.

L&T Finance Ltd: L&T Finance Ltd will look at any opportunity to get into the banking space even though it has not applied its mind on IDBI Bank, MD Y.M. Deosthalee has been quoted as saying by a business daily.

Welspun India: Welspun India, Asia's largest and the 2nd largest Terry Towel producers, reported consolidated net profit of Rs. 193.29 crore for the quarter ended March 31, 2016, registering growth of 19.77% yoy and 11.04% qoq.

Kalpataru Power Transmission Ltd: KPTL has bagged new orders of over Rs11.50bn in domestic and overseas markets.

Mahindra & Mahindra: M&M announced the launch of the limited edition Scorpio Adventure variant. With a production run of only 1,000 vehicles the limited edition variant is priced at Rs1.31mn (ex-showroom without Octroi, Navi Mumbai, BS4, 2WD).

Engineers India Ltd: EIL has signed a contract with Bangladesh Petroleum Corporation (BPC) for providing project management consultancy services for a USD1.7bn refinery expansion project.

GVK Power & Infrastructure Limited: The company has completed the sale of the gas-based thermal power plant of 217mw Phase one of Jegurupadu power project located in Kadiam mandal of East Godavari district of Andhra Pradesh.

Snowman Logistics: Snowman Logistics Ltd., an integrated temperature controlled logistics service provider, will announce its Q4 numbers today. IIFL estimates the company’s net profit to increase to Rs.4 crore, down 74.1% yoy and 17.8% qoq. 

Opening Bell - Nifty below 7850-mark

At 9:15 AM, the S&P BSE Sensex is trading at 25,586 down 93 points, while NSE Nifty is trading at 7,828 down 27 points. 

At 9:15 AM, the S&P BSE Sensex is trading at 25,586 down 93 points, while NSE Nifty is trading at 7,828 down 27 points.

The Indian rupee opened lower by 11 paise at 66.72/$ against US Dollar on Tuesday as against the previous close of 66.61/$. Indian rupee lost ground in the early hours of yesterday’s trade, with values moving above 66.70 levels in the spot market. Market participants remain cautious ahead of US FOMC and BOJ policy meeting this week. In addition, the domestic unit remains under pressure due to month‐end demand from the importers.

Parag Milk Foods will announce its IPO plans today. Results include Maruti Suzuki India, Biocon, Bharti Infratel, IDFC Bank among others. The rupee is expected to weaken further. Asian markets are in the red.  US stock indices declined on Monday, as investors digested few lackluster earnings and awaited the outcome of a Federal Reserve policy meeting later in the week.

The Fed, which raised interest rates in December for the first time in nearly a decade, is widely expected to leave rates unchanged later this week. But, the Wall Street would be more interested in the outlook for interest rates - whether the Fed is on course to raise interest rates again this year and, if so, how many times.

The Dow Jones Industrial Average dropped 26.51 points, or 0.2%, to end at 17,977.24. The S&P 500 index was down 3.79 points, or 0.2%, to close at 2,087.79, led by declines in Energy and Industrial-sector shares. Earlier, the index was down by 14 points. The Nasdaq Composite index lost 10.44 points, or 0.2%, to finish at 4,895.79 after falling by as much as 28 points.

After swinging between small gains and losses earlier in the session, oil prices moved lower, with the West Texas Intermediate (WTI) crude futures dropping US$1.09, or 2.5%, to settle at US$42.64 a barrel.

Saudi Arabia’s deputy crown prince said that less than 5% of state-owned Saudi Arabian Oil Co, known as Saudi Aramco, will be publicly offered in a move that will value the company between US$2 trillion and US$2.5 trillion.

In terms of data, new home sales declined by 1.5% to a seasonally adjusted annual rate of 511,000 in March, according to the Commerce Department. But, February’s number was revised sharply higher.

Despite announcing better than expected results, shares of Reliance Industries ended lower by 2.4%.