Stocks To Watch Today, July 20: Reliance Industries, Power Grid, ICICI Bank, Yes Bank, Axis Bank

Mumbai, July 20: Investors on Monday will be tracking Reliance shares after the  company posted its Q1 results on Saturday. Powergrid shares will be under scanner after it was declared successful bidder for Fatehgarh transmission project. Read on to know more. 

RELIANCE posts 6.1% rise in Q1 profit as revenue surges; EBITDA margin narrows 

Reliance Industries’ consolidated net profit for the June quarter grew 6.1 percent year-on-year to Rs 23,196 crore from Rs 21,859 crore. Gross revenue for the quarter surged 24.5 percent to Rs 3.4 lakh crore from Rs 2.73 lakh crore. EBITDA grew 10.1 percent to Rs 54,067 crore from Rs 49,100 crore. However, EBITDA margin narrowed to 15.9 percent from 18 percent as lower-margin oil- to chemicals and retail revenue made up a higher percentage of the topline and input costs remained elevated. The retailer and digital services businesses continued to be growth drivers for the conglomerate during the quarter, while margins at the group’s core energy business were under pressure. Investors will look for commentary on its retail business and Jio platform as well as capital spending plans for guidance on future margin trends. Here are the key numbers from Jio Platforms’ Q1 earnings: Profit up 9.2% to Rs 7764 crore, ARPU at Rs 215.60 driven by tariff-led gains Jio Platforms Ltd’s consolidated net profit rose 9.2 percent year-on-year to Rs 7,764 crore in the June quarter from Rs 7,110 crore, while total revenue grew 11.8 percent to Rs 39,173 crore from Rs 35,032 crore. EBITDA for the quarter jumped 15.1 percent to Rs 20,865 crore from Rs 18,135 crore, as margin expanded 150 basis points to 53.3 percent from 51.8 percent. 

POWERGRID declared successful bidder for Fatehgarh-II transmission project 

Power Grid Corporation of India Ltd said it has been declared successful bidder for Fatehgarh-II transmission project. Under the project, the state-owned firm plans to install and commission two synchronous condensers of capacity 660 MVA each at Fatehgarh-II power station along with associated bays. Fatehgarh-II Power Station is located in Punjab’s Mansa district. The project aims to strengthen grid stability in this transmission corridor which carries significant renewable capacity. “The award of this project further strengthens Power Grid’s order book in interstate transmission system where the company has been regularly bagging projects pertaining to Indian renewable energy buildout as well as grid strengthening initiatives,” the company said in an exchange filing. Investors will look for execution timelines on award and capital outlay as well as updates on further order wins in the segment for cues on growth pipeline. 

ICICI Bank Q1 net profit surges 16% to Rs 14,804.50 crore 

Net profit for ICICI Bank grew 16 percent year-on-year to Rs 14,804.50 crore for the June quarter compared with Rs 12,768.21 crore a year ago. Growth in loan book and healthy fee income drove growth for India’s largest private sector lender, adding to positive run we have seen from large private banks so far this earnings season. Private lenders have been more consistent performers than their state-run peers in recent quarters, and ICICI Bank continues to reinforce that trend with these results. Investors will continue to track net interest margin as well as watch how asset quality plays out in terms of slippages and provisioning. 

YESBANK posts 33.5% rise in Q1 profit to Rs 1,070 crore, meets estimates 

Yes Bank reported net profit of Rs 1,070 crore for the June quarter, in line with estimates. Profit grew 33.5 percent year-on-year. Net interest income rose 17.5 percent to Rs 2,786.3 crore, as improving loan book contributes to gradual recovery in core banking operations. While the June quarter result continues the positive narrative that Yes Bank has built over the past few quarters, investors will track asset quality in upcoming quarters and growth in deposits to see if the bank can sustain higher profitability on a durable basis. The private lender’s balance sheet has turned a corner after several quarters of balance sheet repair, with both profitability and margins improving over the last few quarters. 

Axis Bank Q1 profit up 22.5% y-o-y to Rs 7,113 crore; meets estimates 

Axis Bank’s net profit rose 22.5 percent year-on-year to Rs 7,113 crore for the June quarter, meeting estimates. The private sector lender’s net interest income grew 8 percent to Rs 14,646.1 crore during the quarter. Loan growth continues to remain steady for Axis Bank even as net interest margin remained under pressure from the current rate environment. June quarter results are in line with expectations, and add to the largely positive start to the earnings season for private lenders. Both ICICI Bank and Yes Bank have posted strong numbers earlier in the week. Investors will look for commentary on these metrics as well as updates on asset quality. 

Sources

•  BSE
• NSE
• Press Trust of India.