Stocks in the news: Hindalco, Tata Chemicals, Lupin, J&K Bank, Mahindra Holidays, Central Bank

Here are the stocks that are in news today:

Results Today: Hindalco Industries, Bank of India, Adlabs Entertainment, Bajaj Finserv, Bajaj Finance, Ballarpur Industries, Blue Dart Express, Chambal Fertilisers, DD Corp, Igarashi Motors, JK Tyre, JSW Energy, Jubilant Industries, Shree Renuka Sugars, Solara Active Pharma, Take Solutions, Visa Steel, Walchandnagar Industries, Universal Cables, Tasty Bite Eatables

Mahindra Holidays Q4: Net profit down 62.6% at Rs 14 crore, revenue down 19.5% at Rs 238.3 crore

Seamec Q4: Net profit at Rs 39.3 crore, revenue up 65.8% at Rs 110.6 crore

Waterbase Q4: Net profit down 41.8% at Rs 1 crore, revenue down 22.2% at Rs 51.2 crore

Torrent Power Q4: net profit at Rs 24.8 crore Vs Rs 221.2 crore, YoY

SKF India Q4: Net profit up 15% at Rs 82 crore, revenue up 6.4% at Rs 748.4 crore

J&K Bank Q4: Net profit at Rs 215 crore, NII up 42% at Rs 931.3 crore

Majesco Q4: Net profit up at Rs 10.6 crore, revenue up 20.7% at Rs 261.5 crore

Adani Green Q4: Consolidated net loss at Rs 94 crore, revenue up 67.9% at Rs 681 crore

Gulf Oil Lubricants Q4: Net profit down 4.5% at Rs 47.6 crore, revenue up 16.8% at Rs 436.2 crore

Central Bank Of India Q4: Net loss at Rs 2,477.4 crore, NII up 6.8% at Rs 1,602 crore

KRBL Q4: Consolidated net profit up 45.4% at Rs 139 crore, revenue up 36.6% at Rs 1,196.4 crore

Amara Raja Batteries Q4 net profit up 8.7% at Rs 119.3 crore, revenue down at Rs 1,566.7 crore

Aarti Drugs Q4 consolidated net profit up 14.4% at Rs 27.4 crore, revenue up 38.8% at Rs 459.1 crore

Navneet Education Q4: Net profit down 2% at RS 14.7 crore, revenue up 15.5% at RS 245.5 crore

HFCL Q4: Net profit down 12.4% at RS 51.5 crore, revenue up 16% at Rs 1,094.7 crore

KPIT Tech Q4: Consolidated net profit up 28.8% at Rs 30.9 crore, revenue at Rs 501 crore, QoQ

Gujarat Pipavav Q4: Standalone net profit up 4.7% at Rs 50.9 crore, revenue up 8.8% at Rs 180 crore

Phoenix Mills Q4: Net profit down 75.4% at Rs 228 crore, revenue up 65.6% at Rs 723.2 crore

Petronet LNG Q4: Net profit down 15.8% at Rs 440.2 crore, revenue down 2.9% at Rs 8,383.2 crore

PG Electroplast Q4: Net profit at Rs 6 crore, revenue up 45.6% at Rs 169.9 crore

Union Bank of India approved to raise total capital funds up to Rs 6,000 crore in FY19-20 and to raise equity capital up to Rs 4,900 crore

Lupin: USFDA completed inspection at Aurangabad manufacturing facility with 3 observations

Balaji Amines has received consent to operate by Maharashtra Pollution Control Board for expansion of existing products cum addition of new products at Unit III at MIDC Chincholi

Allcargo Logistics to consider fund raising up to Rs 1,000 crore by way of issue of Secured/Unsecured Debentures and/or Bonds

Ramgopal Polytex approved the proposal of voluntary delisting of equity shares of the company from National Stock Exchange of India

SKF India board recommended final dividend of Rs 12 per equity share

Tata Chemicals' consumer products business to merge with Tata Global Beverage

J&K Bank has approved the raising of capital (ATI/Tier II) to the tune of Rs 1600 crore

India Ratings and Research has downgraded Rushil Decor's long-Term issuer rating to 'IND BBB' from 'IND A-'. The outlook is negative.

Reliance Capital to issue Non-Convertible Debentures worth Rs 6 crore

Zuari Agro Chemicals shut one of the two Granulation plant

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Q4 earnings shows Tata Chemicals is on the mend, but Europe sours

Tata Chemicals (TTCH) has some spring in its step. After several lacklustre quarters, it finally churned out a healthy set of earnings, signalling improvement across segments in the March quarter.

Improved realisation and currency gains made this possible. However, Europe offered a jarring note and volumes remained under pressure across geographies.

Key positives

- Consolidated revenue saw a healthy eight percent year-on-year (YoY) jump, driven by improved realisations across geographies

- Consolidated soda ash revenue was up 13.5 percent on the back of improved realisations

- While margin in the basic chemistry segment saw a healthy growth, specialty chemicals came under pressure

- Revenue from consumer products business saw good traction, chiefly because of higher sales volumes across categories and controlled marketing investments during the quarter gone by

- The company has forayed into non-food products like detergents, which are in the pilot phase and receiving a positive response from the market

- With supply tightness in the domestic market, the company was able to pass on higher power and plant fixed costs, partially protecting its margin

- Improved realisation and currency gains led to improvement in the North American business. However, a six percent YoY decline in volumes offset some of the gains. Performance in 2019 took a hit from power outage and maintenance issues, which the management expects to overcome in the coming year

- Kenya business reported a healthy quarter with increasing operational efficiency, lower fixed costs and higher realisations. However, high fuel costs knocked off a chunk of the profit

Key negative

- Despite higher realisations, performance in Europe strained due to high energy and fixed plant costs. Discontinuation of the low-margin trading business in Europe led to noticeable contraction in volumes from the region

- Rallis (a subsidiary of Tata Chemicals) reported a disappointing quarter with a substantial contraction in profits and margin despite a uptick in revenue. Overhang of high input costs cast a shadow profitability for yet another quarter

Other takeaways

- The management is planning a capex of $370 million towards capacity expansion at its Mithapur facility to ramp up soda-ash capacity by about 200,000 metric tonne, salt production by 400,000 metric tonne, and a portion for upgrading turbines to reduce its carbon footprint

- The Nellore plant for nutraceuticals is in the final stage of commissioning. The plant will go through a pilot stage and the company is targeting commercial production by December-end

- The company announced plans to foray into three segments: Lithium ion business, majorly manufacturing, recycling and chemical coating of batteries. The management expects final production and supply to begin from 2021-22, but stressed that the same would be dependent on commercial orders

Outlook

The management indicated confidence in the strength of soda ash prices in coming quarters. Moreover, the consumer business is picking up pace. Capacity expansion in soda and salt are expected to drive growth in 2021.

At an estimated FY20 price-to-earnings of 13 times, the stock is trading close to its 52-week low and has seen a noticeable uptick after the result. Stabilisation post one-offs across geographies would be something to watch out for. A successful deployment of capital in high margin businesses can improve earnings and trigger a re-rating for the stock.

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