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Buy Oil India Ltd For A Decent Gain of 47% As Recommended By HDFC Securities

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Q2FY22 results of OIL

According to the brokerage, the company’s “Sales in Q2 were INR 33bn (+53% YoY, +10% QoQ). Crude realisation in rupee terms was at INR 5,154/bbl (+67% YoY, +7% QoQ). EBITDA came in at INR 9bn (HSIE INR 13bn, -26% QoQ), owing to higher provision of INR 5bn and exploration write-off of INR 1bn. Crude oil realisation increased to USD 69.6/bbl, (+67% YoY, +7% QoQ); gas realisation was at USD 1.9/mmbtu, (-47% YoY, +3% QoQ). Oil sales volumes were at 0.74mmt (+2% YoY, +2% QoQ), while gas sales volumes were at 0.67bcm, (+70.2% YoY, +11% QoQ).”

HDFC Securities has clarified that the company’s “standalone Capex budgets for FY22 and FY23 are INR 41bn and INR 42bn respectively. (2) The NRL refinery expansion to 9mmt will incur CAPEX of ~INR 300bn, which will be payable over FY24-26. (3) The company has guided oil production for FY23/24E at 3-3.1mmt and gas production at 3.2-3.25bcm. (4) The exploration write-offs were high in Q2 due to the commercial unviability of blocks at KG basin and Mizoram. However, management expects no major write-offs in the near future.”

Buy Oil India Ltd with a target price of Rs 320

Buy Oil India Ltd with a target price of Rs 320

The brokerage has reported in its research report that “Our BUY recommendation on Oil India with a target price of INR 320 is premised on (1) increase in crude price realisation and (2) improvement in domestic gas price realisation (at USD 2.9/mmbtu). We expect oil price realisation to increase to ~USD 68/bbl in FY22E and USD 70/bbl in FY23E vs. USD 44/bbl in FY21, given the expected global economic rebound, post COVID. Q2FY22 revenue was 1% below our estimates while EBITDA was 32% below, owing to higher-than-expected operating expenses (on account of provisions and write-offs). RPAT came in 32% below our estimate, impacted by higher depreciation, which was offset by higher other income and lower interest cost. We value Oil India’s standalone business at INR 173 (5.5x Mar-23E EPS) and its investments at INR 147. The stock is currently trading at 4x FY23E EPS.”

Disclaimer

Disclaimer

This stock is picked from the brokerage report of HDFC Securities. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article.



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Bank of Maharashtra tops PSU lenders chart in terms of loan, saving deposit growth in Q2, BFSI News, ET BFSI

Banking & Finance

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State-owned Bank of Maharashtra(BoM) has emerged as the top performer among public sector lenders in terms of loan and savings deposit growth during the second quarter of the current financial year, as per quarterly results data.

The Pune-headquartered lender recorded an 11.46 per cent increase in gross advances at Rs 1,15,236 crore in the July-September period of 2021-22, according to the published data of BoM.

It was followed by Punjab & Sind Bank which posted 9.53 per cent growth in advances with aggregate loans at Rs 67,574 crore at the end of September 2021, as per data from the bank’s quarterly results.

In terms of RAM (retail, agriculture and MSME) segment, the bank registered a highest growth rate of 14.24 per cent at Rs 70,515 crore.

When it came to deposit mobilisation, BoM with a 14.47 per cent growth was a notch behind Punjab and Sind Bank, while the country’s largest lender SBI recorded an 9.69 per cent rise.

However, in absolute terms, SBI’s deposit base was 20 times higher at Rs 36.90 lakh crore as against Rs 1.81 lakh crore of BoM.

Current account, savings account (CASA) for BoM saw a 22 per cent rise, the highest among the public sector lenders, during the quarter.

As a result, CASA was 54 per cent or Rs 97,889 crore of the total liability of the bank.

Total business of BoM increased 13.27 per cent to Rs 2.97 lakh crore at the end of September 2021.

For the second quarter, BoM’s standalone net profit more than doubled to Rs 264 crore as against Rs 130 crore in the same period a year ago.

During the quarter, the bank had written off bad loans worth Rs 1,100 crore including Rs 550 crore exposur to two SREI finance companies after making full provisions. RBI has taken SREI Infrastructure Finance and Equipment leasing company to bankruptcy court for resolution.

The bank’s asset quality improved significantly as the gross bad loans or gross non-performing assets (NPAs) dipped to 5.56 per cent of gross advances by the end of September 2021 as against 8.81 per cent by the end of the second quarter of the previous fiscal.

Net NPAs nearly halved to 1.73 per cent from 3.30 per cent at the end of second quarter of the last financial year, while provision coverage ratio improved to 92.38 per cent as against 87.15 per cent.



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Top 10 Banks Promising Best Interest Rates On Tax Saving Fixed Deposits

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Investment

oi-Vipul Das

|

When it comes to taking advantage of the tax deduction under Section 80C of the Income Tax Act for an amount up to Rs 1.5 lakh in a financial year, tax saving fixed deposits are the wisest option. Although fixed deposits have a maturity period ranging from 7 days to 10 years, tax saving deposits come with a 5-years lock-in period, which debt investors should be aware of. Tax-saving depositors should keep in mind, however, that interest received on tax-saving fixed deposits is taxed based on the investor’s tax bracket. When interest payable on fixed deposits surpasses Rs 40,000 for non-senior citizens and Rs 50,000 for senior citizens in a financial year, TDS (tax deducted at source) would be levied.

However, elderly folks can claim a deduction of up to Rs. 50,000 on interest received on tax-saving fixed deposits under Section 80TTB by filling out Form 15H and non-senior citizens can submit Form 15G to avoid TDS. Here are the top 10 public, private, and small finance banks that are now providing the best interest rates on tax saving fixed deposits of less than Rs 2 Cr for depositors who have a long-term financial objective and are willing to invest for a 5-year lock-in period without making a premature withdrawal and secure their deposits up to Rs 5 lakhs under the DICGC insurance scheme.

Top 10 Public Sector Banks With Highest Interest Rates On Tax Saving FDs In 2021

Top 10 Public Sector Banks With Highest Interest Rates On Tax Saving FDs In 2021

Here are the top 10 public sector banks based on our own research, that are currently offering the highest interest rates on tax saving fixed deposits.

Banks Regular Interest Rates Interest rates for senior citizens W.e.f.
Union Bank of India 5.40% 5.90% 01/09/2021
State Bank of India 5.30% 5.80% 8th Jan 2021
Punjab & Sind Bank 5.30% 5.80% 16/09/2021
Bank of Baroda 5.25% 5.75% 16.11.2020
Canara Bank 5.25% 5.75% 09.08.2021
Indian Bank 5.25% 5.75% 05.11.2021
Indian Overseas Bank 5.25% 5.75% 09.11.2020
Punjab National Bank 5.25% 5.75% 01.08.2021
Bank of India 5.05% 5.55% 01.08.2021
UCO Bank 5.05% 5.55% 10.01.2021
Source: Bank Websites

Top 10 Private Sector Banks Offering Highest Interest Rates On Tax Saving Fixed Deposits

Top 10 Private Sector Banks Offering Highest Interest Rates On Tax Saving Fixed Deposits

Based on higher interest rates only, here we have compiled the top 10 private sector banks that are currently promising the best interest rates on tax saving fixed deposits.

Banks Regular Interest Rates Interest rates for senior citizens W.e.f.
Nainital Bank 6.35% 6.35% 10th September 2021
RBL Bank 6.30% 6.80% September 01, 2021
Yes Bank 6.25% 7.00% 3rd November 2021
IndusInd Bank 6.00% 6.50% July 23rd, 2021
DCB Bank 5.95% 6.45% 17th August 2021
South Indian Bank 5.65% 6.15% 8th October 2021
Axis Bank 5.40% 6.05% 10/11/2021
Dhanlaxmi Bank 5.40% 5.90% 01.08.2021
Karnataka Bank 5.40% 5.80% 01.06.2021
ICICI Bank 5.35% 5.85% Oct 21, 2020
Source: Bank Websites

Top 10 Small Finance Banks Promising Highest Interest Rates On Tax Saving Fixed Deposits

Top 10 Small Finance Banks Promising Highest Interest Rates On Tax Saving Fixed Deposits

Here are the top 10 small finance banks that are currently offering the highest interest rates on tax saving fixed deposits of less than Rs 2 Cr.

Banks Regular Interest Rates Interest rates for senior citizens W.e.f.
Fincare Small Finance Bank 6.75% 7.25% 25th October 2021
Suryoday Small Finance Bank 6.75% 7.00% September 09, 2021
North East Small Finance Bank 6.50% 7.00% 19th April 2021
Jana Small Finance Bank 6.50% 7.00% 07/05/2021
Ujjivan Small Finance Bank 6.25% 6.75% 16th August 2021
Utkarsh Small Finance Bank 6.00% 6.50% July 01, 2021
Capital Small Finance Bank 6.00% 6.50% June 03, 2021
Equitas Small Finance Bank 5.75% 6.25% 1st October 2021
AU Small Finance Bank 5.75% 6.25% 14th October 2021
Shivalik Small Finance Bank 5.50% 6.00% November 9th, 2021
Source: Bank Websites

Story first published: Monday, November 15, 2021, 16:21 [IST]



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HSBC names co-heads for Asia commercial banking business, BFSI News, ET BFSI

Banking & Finance

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SINGAPORE, – HSBC Holdings PLC appointed two executives to run its commercial banking business in Asia Pacific and said its current regional head will lead HSBC UK’s commercial banking business.

In a statement on Monday, HSBC said Amanda Murphy, currently the head of its commercial banking business in the United Kingdom, will lead commercial banking operations in South and Southeast Asia.

Frank Fang, who currently heads commercial banking for Hong Kong and Macau, will continue to lead the businesses in both markets and support clients as they capture opportunities arising from the Greater Bay Area, HSBC said.

Both executives will jointly lead Asia’s commercial banking business.

Stuart Tait, who has been leading Asia Pacific commercial banking, will take up Murphy’s role (Reporting by Anshuman Daga; Editing by Kirsten Donovan)

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Japan’s largest bank MUFG posts 95% jump in first-half profit, BFSI News, ET BFSI

Banking & Finance

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TOKYO, – Mitsubishi UFJ Financial Group Inc (MUFG) reported a 95% jump in half-year net profit due to the release of cash from pandemic-related provisions as well as a drop in other credit-related costs.

April-September net profit for Japan‘s largest lender came in at 781.4 billion yen ($6.86 billion), compared to 400.8 billion yen a year earlier.

MUFG, which owns 24% of Wall Street bank Morgan Stanley , raised its profit forecast for the full year to 1.05 trillion yen from 850 billion yen.

That compares with an average Refinitiv estimate of 982 billion yen from 11 analysts. ($1 = 113.9500 yen) (Reporting by Makiko Yamazaki; Editing by Edwina Gibbs)

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Report, BFSI News, ET BFSI

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Mumbai, The domestic capital markets continue to remain on an upward trajectory after a strong performance in FY2021.

The average daily turnover (ADTO) increased to Rs 27.92 lakh crore in FY2021 from Rs 14.39 lakh crore in FY2020, registering an annual growth of 94 per cent. Transaction volumes remain strong in the current fiscal, with the markets clocking an ADTO of Rs 56.36 lakh crore in H1 FY2022.

As per ICRA, the market performance has been supported by favourable liquidity in both domestic and international markets, optimism related to a recovery after the graded reopening of the economy, progress on vaccination rollout and steady retail investor momentum.

Throwing more light, Samriddhi Chowdhary, Vice President & Sector Head – Financial Sector Ratings, ICRA says, “The pool of ICRA-rated bank brokerages reported a strong performance in FY2021 with the estimated average daily turnover (ADTO) increasing 28 per cent Y-o-Y to Rs 1.51 lakh crore from Rs 1.18 lakh crore in FY2020, led by the healthy growth in the retail segment.

Despite the changes in the margin requirements, the performance remained healthy in Q1 FY2022 with an estimated ADTO of Rs 1.64 lakh crore, driven by favourable retail investor sentiment. However, the market share of the sample pool of ICRA-rated bank brokerages in terms of transaction volumes declined in FY2021 and moderated further in Q1 FY2022 as they continue to lose share to discount brokers.”

Bank-brokerages reported a strong uptick in earnings in FY2021 registering a year-on-year (Y-o-Y) growth of 40 per cent in total revenues and 80 per cent in profit after tax. The cost structure and operational efficiency of the bank brokerage companies also improved over the past few years with focus on the rationalisation of branches coupled with cautious efforts towards the transition to a digital business model, thereby improving the operational efficiency across brokerages.

Bank-brokerages have been increasingly looking at other non-broking sources of income, namely capital market lending business, distribution income and investment banking revenue. Bank-brokerages have significantly scaled up the margin funding business over the past fiscal, moving in line with the capital market rally, which has resulted in an increase in their borrowing level.

The retail broking segment has witnessed a significant disruption in the last few years due to the growing prominence of discount brokerages. The competitively priced offerings of discount brokers and the no-frill basic accounts and services have resulted in the realignment of the pricing strategy across the industry.

Adds Chowdhary, “apart from attracting clients from full-service providers, discount brokerage houses have helped expand the market by bringing on board a large number of first-time investors. While the market share for bank brokerages in terms of active clients moderated in FY2021, primarily owing to the faster scaling up of the discount brokerage houses, they reported a strong performance as reflected by the healthy operating metrics and surge in earnings.”

ICRA expects bank brokerages to continue to build their retail franchise and focus more on technology and digital models for customer acquisition. Supported by these factors, bank brokerages are expected to register a healthy growth in client addition as well as transaction volumes, though their share in total active clients would moderate owing to the rapid expansion of the discount broking model. The blended yields are expected to compress going forward, though the focus on fee and fund-based income would support the profitability.

Adds Chowdhary, “Bank brokerages are expected to continue to enjoy better brand recall, trust, higher credibility and financial flexibility by virtue of being a part of banking groups and would, therefore, remain a prominent part of the industry value chain. Bank brokerages are also increasingly looking at the emerging demographic opportunities and new geographical base, which is facilitated through online channels. Going forward, the ability of the bank brokers to effectively ramp up their digital initiatives, attract millennial clients and expand to a newer geographical base such as Tier II and Tier III cities would be critical.”

ICRA expects the net operating income (NOI) of bank brokerages to grow 20-25 per cent year-on-year (Y-o-Y) in FY2022 supported by steady broking income along with an uptick in the margin funding and distribution businesses; the ramp-up of other capital markets related businesses could further support the earnings profile. The net profit for bank brokerages is expected to grow 17-20 per cent during the same period.

The borrowings levels of bank brokerages are expected to increase in the current fiscal to support their margin funding business. The gearing levels of bank brokerages are expected to be in the range of 1.5-2 times in FY2022 at an industry level while the gearing across entities would vary between 1 to 3 times based on the scale of margin funding operations.



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Reserve Bank of India – Press Releases

Press Releases

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(Amount in ₹ crore, Rate in Per cent)
  Volume
(One Leg)		 Weighted
Average Rate 		Range
A. Overnight Segment (I+II+III+IV) 0.00 – –
     I. Call Money 0.00 – –
     II. Triparty Repo 0.00 – –
     III. Market Repo 0.00 – –
     IV. Repo in Corporate Bond 0.00 – –
B. Term Segment      
     I. Notice Money** 0.00 – –
     II. Term Money@@ 0.00 – –
     III. Triparty Repo 0.00 – –
     IV. Market Repo 0.00 – –
     V. Repo in Corporate Bond 0.00 – –
  Auction Date Tenor (Days) Maturity Date Amount Current Rate /
Cut off Rate
C. Liquidity Adjustment Facility (LAF) & Marginal Standing Facility (MSF)
I. Today’s Operations
1. Fixed Rate          
     (i) Repo          
    (ii) Reverse Repo Sun, 14/11/2021 1 Mon, 15/11/2021 4,582.00 3.35
    (iii) Special Reverse Repo~          
    (iv) Special Reverse Repoψ          
2. Variable Rate&          
  (I) Main Operation          
     (a) Reverse Repo          
  (II) Fine Tuning Operations          
     (a) Repo          
     (b) Reverse Repo          
3. MSF Sun, 14/11/2021 1 Mon, 15/11/2021 10.00 4.25
4. Special Long-Term Repo Operations (SLTRO) for Small Finance Banks (SFBs)£          
5. Net liquidity injected from today’s operations
[injection (+)/absorption (-)]*		       -4,572.00  
II. Outstanding Operations
1. Fixed Rate          
    (i) Repo          
    (ii) Reverse Repo Sat, 13/11/2021 2 Mon, 15/11/2021 3,750.00 3.35
  Fri, 12/11/2021 3 Mon, 15/11/2021 243,661.00 3.35
    (iii) Special Reverse Repo~ Wed, 03/11/2021 15 Thu, 18/11/2021 1,158.00 3.75
    (iv) Special Reverse Repoψ Wed, 03/11/2021 15 Thu, 18/11/2021 291.00 3.75
2. Variable Rate&          
  (I) Main Operation          
     (a) Reverse Repo Wed, 03/11/2021 15 Thu, 18/11/2021 434,492.00 3.99
  (II) Fine Tuning Operations          
     (a) Repo          
     (b) Reverse Repo Tue, 09/11/2021 7 Tue, 16/11/2021 200,015.00 3.95
  Tue, 02/11/2021 28 Tue, 30/11/2021 50,007.00 3.97
3. MSF Sat, 13/11/2021 2 Mon, 15/11/2021 62.00 4.25
  Fri, 12/11/2021 3 Mon, 15/11/2021 125.00 4.25
4. Long-Term Repo Operations# Mon, 17/02/2020 1095 Thu, 16/02/2023 499.00 5.15
  Mon, 02/03/2020 1094 Wed, 01/03/2023 253.00 5.15
  Mon, 09/03/2020 1093 Tue, 07/03/2023 484.00 5.15
  Wed, 18/03/2020 1094 Fri, 17/03/2023 294.00 5.15
5. Targeted Long Term Repo Operations^ Fri, 27/03/2020 1092 Fri, 24/03/2023 12,236.00 4.40
  Fri, 03/04/2020 1095 Mon, 03/04/2023 16,925.00 4.40
  Thu, 09/04/2020 1093 Fri, 07/04/2023 18,042.00 4.40
  Fri, 17/04/2020 1091 Thu, 13/04/2023 20,399.00 4.40
6. Targeted Long Term Repo Operations 2.0^ Thu, 23/04/2020 1093 Fri, 21/04/2023 7,950.00 4.40
7. On Tap Targeted Long Term Repo Operations€ Mon, 22/03/2021 1095 Thu, 21/03/2024 5,000.00 4.00
  Mon, 14/06/2021 1096 Fri, 14/06/2024 320.00 4.00
  Mon, 30/08/2021 1095 Thu, 29/08/2024 50.00 4.00
  Mon, 13/09/2021 1095 Thu, 12/09/2024 200.00 4.00
  Mon, 27/09/2021 1095 Thu, 26/09/2024 600.00 4.00
  Mon, 04/10/2021 1095 Thu, 03/10/2024 350.00 4.00
8. Special Long-Term Repo Operations (SLTRO) for Small Finance Banks (SFBs)£ Mon, 17/05/2021 1095 Thu, 16/05/2024 400.00 4.00
Tue, 15/06/2021 1095 Fri, 14/06/2024 490.00 4.00
Thu, 15/07/2021 1093 Fri, 12/07/2024 750.00 4.00
Tue, 17/08/2021 1095 Fri, 16/08/2024 250.00 4.00
Wed, 15/09/2021 1094 Fri, 13/09/2024 150.00 4.00
D. Standing Liquidity Facility (SLF) Availed from RBI$       21,695.80  
E. Net liquidity injected from outstanding operations [injection (+)/absorption (-)]*     -825,849.2  
F. Net liquidity injected (outstanding including today’s operations) [injection (+)/absorption (-)]*     -830,421.2  
G. Cash Reserves Position of Scheduled Commercial Banks
     (i) Cash balances with RBI as on 14/11/2021 625,856.56  
  13/11/2021 629,926.60  
     (ii) Average daily cash reserve requirement for the fortnight ending 19/11/2021 634,320.00  
H. Government of India Surplus Cash Balance Reckoned for Auction as on¥ 12/11/2021 0.00  
I. Net durable liquidity [surplus (+)/deficit (-)] as on 22/10/2021 1,179,109.00  
@ Based on Reserve Bank of India (RBI) / Clearing Corporation of India Limited (CCIL).
– Not Applicable / No Transaction.
** Relates to uncollateralized transactions of 2 to 14 days tenor.
@@ Relates to uncollateralized transactions of 15 days to one year tenor.
$ Includes refinance facilities extended by RBI.
& As per the Press Release No. 2019-2020/1900 dated February 06, 2020.
* Net liquidity is calculated as Repo+MSF+SLF-Reverse Repo.
# As per the Press Release No. 2020-2021/287 dated September 04, 2020.
^ As per the Press Release No. 2020-2021/605 dated November 06, 2020.
€ As per the Press Release No. 2020-2021/520 dated October 21, 2020, Press Release No. 2020-2021/763 dated December 11, 2020, Press Release No. 2020-2021/1057 dated February 05, 2021 and Press Release No. 2021-2022/695 dated August 13, 2021.
¥ As per the Press Release No. 2014-2015/1971 dated March 19, 2015.
£  As per the Press Release No. 2021-2022/181 dated May 07, 2021 and Press Release No. 2021-2022/1023 dated October 11, 2021.
~ As per the Press Release No. 2021-2022/177 dated May 07, 2021.
ψ As per the Press Release No. 2021-2022/323 dated June 04, 2021.
Ajit Prasad            
Director (Communications)
Press Release: 2021-2022/1193

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Paytm Money launches AI-powered ‘Voice Trading’

Banking & Finance

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Homegrown fintech platform Paytm on Monday announced that its wholly-owned subsidiary Paytm Money has launched ‘Voice Trading’, powered by artificial intelligence, allowing users to place a trade or get information about stocks via single voice command.

“This service has been launched in line with Paytm Money’s efforts to offer next-gen and AI-driven tech to elevate user experience,” the company said in an official release. The voice trading feature enables a single voice command, with the use of neural networks and natural language processing (NLP) to allow instant processing.

Also read: Paytm share allocation likely on November 16 at Rs 2,150 apiece

Varun Sridhar, CEO of Paytm Money said, “At Paytm Money, our focus has always been to elevate user experience and be the first to leverage technology to make investing faster, cheaper and easier. With a mobile-first and interconnected world of devices and the much-awaited launch of 5G, the voice trading feature enables users to skip the usual five to six-step process of trade in a dynamic environment with simple voice commands.”

“We believe that this will improve user experience over time and will bring more convenience to tech-savvy investors. We are doing a lot of R&D on newer technologies and this is one of the first products to be launched,” added Sridhar.

The platform is rolling out the voice trading feature in beta to select users. It will be available to all users over the coming weeks, it said.

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This Cement Stock Has A “BUY” Call From HDFC Securities With A Target Price of Rs 827

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Q2FY22 results of Nuvoco Vistas Corp. Ltd

According to HDFC Securities, the company’s “Volume increased 4% YoY, owing to a lower base (NuVista consolidation for 79 days in Q2FY21). NSR fell 3% QoQ, mainly led by a ~5% drop in east pricing, while north pricing remained stable. Opex rose 7% YoY on account of higher energy costs (~INR 90/MT) and annual maintenance expense across most of its factories (impact of ~INR 180/MT QoQ). It was able to offset diesel price impact through logistics efficiency. Thus, unitary EBITDA fell 29% QoQ to INR 853/MT; it fell 12% YoY due to higher fixed costs.”

The brokerage has also claimed that the company’s “Consolidated EBITDA rose 74% YoY, on a low base from the previous year. However, OCF fell 86% YoY to INR 644mn due to a sharp increase in debtors and inventory. Nuvoco spent INR 2.3bn on ongoing Capex. It also used the IPO proceeds to reduce its gross/net debt by INR 8.8/10bn (vs Mar-21) to INR 69/59bn respectively.”

Nuvoco Vistas Corp. Ltd’s “Net debt to EBITDA ratio cooled off to 3.2x, from 4.7x in Mar-21 and Nuvoco is aiming to lower it to 2.2x by Mar-22E. It expects to kickstart Capex on its 5mn MT plant in Gulburga in H2FY23E (to be completed by end-FY25). It expects margin to rebound in H2 due to cost pass-through, increased demand, and ongoing margin initiatives” said the brokerage.

Buy Nuvoco Vistas with a target price of Rs 827

Buy Nuvoco Vistas with a target price of Rs 827

The brokerage has said “We maintain our BUY rating on Nuvoco Vistas (Nuvoco) with an unchanged target price of INR 827/share (11x its consolidated Sep-23E EBITDA). We continue to like it for its leadership presence in the east, its various margin initiatives, and continued deleveraging of its balance sheet. Weak demand in the east and high opex hit its profitability in Q2. The impact, however, was moderated by rising contribution of synergy benefits and ongoing cost reductions.”

HDFC Securities has said in its research report that “While consolidated revenue grew 13% YoY to INR 20.20bn, EBITDA fell 9% YoY to INR 3.31bn. Higher capital charges led to a net loss of INR 0.26bn (vs a net loss of INR 0.16bn YoY). Nuvoco reduced its net debt/EBITDA to 3.1x in Sep-21 (vs 4.7x in Mar-21) and aims to lower it further to 2.2x by Mar-22E.”

Disclaimer

Disclaimer

This stock is picked from the brokerage report of HDFC Securities. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article.



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