Morning update for 20 January 2021

Indices at 10:00 am

           Nifty50 14,576 ▲ 55 (+0.3%)

               Sensex 49,562 ▲ 163 (+0.3%)

       Nifty Bank 32,431 ▲ 6 (+0.0%)

In the news

Ceat zips ahead on Q3 profits

• The RPG Group-owned tyre company reported consolidated net sales of ₹2,212 crore in Q3, a YoY improvement of 26.1%. Its profits rose over 150% YoY to ₹132 crore.
• The company attributes the growth to new capacities across segments, particularly passenger car, two-wheeler and farm segments. It also reduced debt by ₹260 crore during the quarter. For Q4, margins may be under pressure due to increasing raw material prices. Shares of the tyremaker gained 2.6% today. 

Tata Communication sees flat revenue growth

• Shares of Tata Communication declined over 7.0% today after the company posted Q3 revenues of ₹4,223 crore, nearly unchanged from the same period last year.
• Its net profit rose four-fold to ₹309 crore mainly driven by the data business, which contributed 98% of the overall EBITDA. Its shares gained over 175% in 2020 and are now showing signs of profit booking.  

DCM Shriram revenues decline

• Chemicals maker DCM Shriram reported a 2% YoY decline in revenues to ₹2,159 crore, mainly due to lower chemical prices and lower sugar exports. However, its profit after tax rose nearly 45% YoY to ₹253 crore.
• Improvement in profitability was a result of higher PVC prices and volumes along with superior earnings in the distillery business. The company has lined up investments worth ₹1,000 crore in downstream chemical products to be executed in the next two years. Its shares gained nearly 1% today and gained about 9% in Q3.   

Tata Metaliks profits rise on improved margins 

• Owing to higher margins in pig iron (PI) and ductile iron (DI), Tata Metaliks’s Q3 profits rose 55% YoY to ₹758 crore. At ₹526 crore, consolidated net revenues grew by a more modest 1.5% during the same period.
• The subsidiary of Tata Steel makes PI and DI pipes. Its shares gained 0.6% today, and have risen about 36% in January. 

Events this week

• Wednesday: Indigo Paints IPO opens (India)
• Thursday: Home First Finance IPO opens (India), Initial Jobless claims (US)

Sectoral indices

Fact of the day

Under their fur, polar bears have black skin—the better to soak in the sun's warming rays.
Source: National Geographic

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