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Nifty off early high after hitting 10,000; banks lead, IT & pharma dip

By FnF Desk | PUBLISHED: 25, Jul 2017, 11:40 am IST | UPDATED: 25, Jul 2017, 11:45 am IST

Nifty off early high after hitting 10,000; banks lead, IT & pharma dip New Delhi: 10:59 am Earnings Estimates: Private sector lender Axis Bank is expected to report a 19.9 percent degrowth in first quarter profit at Rs 1,245.3 crore year-on-year, according to average of estimates of analysts polled by CNBC-TV18.

Net interest income during the quarter is seen rising 6.1 percent to Rs 4,791.8 crore compared with Rs 4,516.9 crore in same quarter last fiscal, according to average of estimates of analysts polled by CNBC-TV18.

Key things to watch out for would be asset quality movement. At the end of March 2017, total amount of loans under watchlist was Rs 11,232 crore (which accounts for 3 percent of total loan book).

Hence, slippages from watchlist will be seen closely. Slippages from watchlist in Q4 were at Rs 3,566 crore.

Analysts say if gross non-performing assets come below 5.1 percent then that will be positive.

10:45 am Interview: Indiabulls Housing Finance gained in trade on back of highest loan growth reported in the first quarter at 33 percent in the last 5 quarters. The mortgage lender reported a 25 percent jump in the June quarter net at Rs 788.2 crore, helped by higher loan growth, reduction in the cost of funds and the cost-to-income ratio.

Gagan Banga, VC & MD, Indiabulls Housing Finance said target of 30 percent loan book growth would continue. The growth was aided by the changes made by the government like Pradhan Mantri Avas Yojana and benign interest rate scenario.
The house has been able to growth earnings in a range of 20-25 percent for 32 straight quarters. This would also continue at a similar pace.

General industry consensus is that loans of below Rs 25 lakh may grow at 35-40 percent and if that happens then the company may see higher growth than 30 percent.

However, the company is very watchful with regards to corporate loan book, said Banga because both RERA and GST has an impact on construction finance project.

10:33 am Buzzing Stock: Share price of Just Dial surged 6 percent intraday on the back of robust Q1 numbers and buyback announcements.

The company has posted 50.5 percent increase in its Q1 (April-June) net profit at Rs 38.16 crore against Rs 25.35 crore, in the quarter ended March 2017.

Income from operations was up 4.6 percent at Rs 190 crore versus Rs 181.7 crore.

The operating profit (EBITDA) was up 1 percent at Rs 32.49 crore and EBITDA margin was at 17.1 percent.

The company at its meeting held on July 24 has considered and approved the proposal to buyback of fully paid-up equity shares from its shareholders/beneficial owners other than promoters, members of the promoter group and persons in control, from the open market, for a total amount not exceeding Rs 83.91 crore, and at a price not exceeding Rs 700 per equity share.

10:28 am Earnings Estimates: Telecom operator Bharti Airtel's first quarter profit is expected to fall 20 percent sequentially to Rs 300 crore on weak operational performance.

Revenue, however, may increase 0.2 percent to Rs 21,975 crore from Rs 21,935 crore on sequential basis, according to average of estimates of analysts polled by CNBC-TV18.

Operating profit is seen falling 5.5 percent quarter-on-quarter to Rs 7,550 crore and margin may shrink 204 basis points to 34.36 percent on sequential basis, impacted by India business.

India revenue may fall 1.4 percent QoQ to Rs 12,790 crore and operating profit may decline 8 percent to Rs 4,400 crore with margin erosion of 256 basis points in Q1.

10:20 am IPO: Mumbai-based Global Space Technologies, a SAAS based software product company and an enterprise mobility solutions provider company will be launching its SME initial public offering, which is scheduled to open on July 26 and close on July 28, with a price band of Rs 66 per equity share.

The IPO comprises of an issue of up to 30, 34,000 equity shares. 1,54,000 equity shares of Rs. 10 each will be reserved for subscription by market makers to the issue.

The company proposes to utilize the net proceeds of the issue for expenditure on research and development, advertising and sales promotion, funding incremental working capital requirements; and general corporate purposes.
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