Morning Update for 9 November 2021

Indices at previous closing

Nifty50: 18,068 ▲+151 (+0.8%) 

Sensex: 60,545 ▲+477 (+0.8%)

Nifty Bank: 39,438 ▼-135 (-0.3%)

For more updates on F&O, click here.

Britannia's Q2 profit falls

The biscuit maker reported net profit of ₹384 crore, down 2% quarter-on-quarter in the September quarter. In the same period, the company’s net sales grew 6% to ₹3,554 crore. The company’s profitability was impacted by higher input cost.   

The company said that it is witnessing unprecedented inflation in market prices of palm oil, industrial fuel and packaging materials. In a bid to mitigate the impact of this price rise and normalise profitability, the company has taken price hikes across the portfolio. Meanwhile, shares of Britannia rose 1.7% but the results were announced after market hours.

Divis Lab's shares tumble 

In Q2FY22, the pharma major’s consolidated net profit rose by 16% year-on-year to ₹606 crore. The double digit growth in the profit was led by a 13.6% growth in the revenue to ₹1,987 crore. 

But, the company’s EBITDA margins reportedly contracted by 180 basis points to 41.5% due to higher other expenses and employee costs. However, experts believe that the pressure on profitability is temporary as some of the company's contracts have a price hike clause to offset the rise in input cost. Meanwhile, shares of Divi’s Lab fell 5.1% yesterday. 

Sobha’s Q2 profit surges 

In the September quarter, the Bengaluru-based real estate player’s net profit soared 298% quarter-on-quarter to ₹45 crore. The sharp growth in the profit was driven by a 73% rise in the real estate revenue to ₹654 crore. 

The management said that the housing sector is continuing on its growth trajectory with healthy traction and strong demand momentum across segments and geographies. The company achieved its best-ever sales value at ₹854 crore during the quarter. Meanwhile, shares of Sobha were down 7% but the results were announced after market hours. 

Sectoral indices (November 8)

Global markets (at 8:15 am)

Fact of the day

In the 1960s, Nokia was a conglomerate that sold everything from toilet paper to car tyres.

Source: Wired.com

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