Oberoi Realty’s profit zooms, SKF reports profit growth & more

Nifty50: 18,181 ▼ 104 (-0.5%)
Sensex: 61,560 ▼ 371 (-0.6%)

Namaste, friends!

Love them or hate them, influencers have become part of the cultural fabric in the age of social media. They are often under fire for using photoshopped images and beauty-enhancing filters on their posts. Some believe these kinds of practices can have far-reaching negative consequences on society. 

Keeping this in mind, France recently decided to take a firm stance on this issue by passing a bill, which if converted to law, will require influencers to disclose if they are using a filter or image enhancements on posts. Failure to do so will attract a €300,000 fine and even jail time. Bit extreme? Or necessary?

While France ponders those questions, let’s look at what happened in the markets today.

• Markets continued their downward trajectory to close below 18,200
• In all, 35 of the Nifty50 stocks closed in the red
• The rupee fell 10 paise against the US dollar in early trade, as demand for the dollar rose

Among the Nifty sectoral indices, Auto (+0.09%) and FMCG (0.06%) saw meagre gains, while Media (-2.09%) and Realty (-1.33%) were the top losers.

What’s trending

⭐ Oberoi Realty’s profit zooms

Oberoi Realty (-6.0%) reported profit growth of 106.2% in Q4FY23 to ₹480 crore, as against ₹232 crore reported in the same quarter last year. The company’s revenue for Q4FY23 rose 18% to ₹995 crore versus ₹842 crore for Q4FY22. In its exchange filing, the company noted that demand for housing has continued to grow, driven by the aspiration of continued home ownership by end users. 

⭐ Timken India’s profits slide

Bearings maker Timken India (-2.3%) reported a net profit of ₹104 crore for Q4FY23, down 13.8% YoY from ₹121 crore. However, its net revenue from operations for the quarter stood at ₹802 crore up 20.2% from ₹667 crore in the comparable quarter last year. The company's board has recommended a dividend of ₹1.5 per share. 

⭐ SKF reports profit growth in Q4

Industrial engineering solutions provider SKF India (-0.8%) reported a 12.2% growth in Q4 profit at ₹122 crore from ₹109 crore in the corresponding quarter last year. Its revenue from operations stood at ₹1,094 crore, up 5.3% YoY from ₹1,039 crore. The company's board has recommended a final dividend of ₹40 per share.

⭐ Amber Enterprises posts robust profit growth

Shares of Amber Enterprises jumped 14% today after the company reported stellar results. The air conditioning components maker’s net profit zoomed 82% to ₹108 crore for Q4FY23, from ₹59 crore in the corresponding quarter last year. Meanwhile, its revenue for the quarter rose by 38% YoY to ₹3,003 crore from ₹1,937 crore.

In Focus

Hotel industry on an expansion spree

India's hospitality sector is on a robust comeback trail, with increased capital expenditure and strong demand driving growth. Let's explore the factors contributing to this resurgence.

Investor interest

Investments into the Indian hospitality sector are set to exceed $2.3 billion over the next 2-5 years. The sector has attracted interest from international hotel chains and private equity funds, contributing to this investment growth.

Expansion surge

The industry is experiencing a significant expansion. An estimated 12,000 hotel rooms are expected to be added in 2023, and the total number of hotel rooms is projected to grow at a CAGR of 3.3% by 2025. IHCL, which operates the Taj brand of hotels, has added 36 new signings and 16 openings, indicating a surge in capex in line with industry-wide growth.

Rising demand and trends

A rise in 'bleisure' (business + leisure) travel and renewed focus on domestic, medical, and religious tourism are driving the demand. In addition, robust demand across markets and segments has led to all group companies reporting a growth in their full-year profits from domestic operations.

Growth Outlook

The sector's growth trajectory looks promising with an expected CAGR of 3.3% by 2025 for hotel rooms. Moreover, the government projects the sector to earn USD 50.9 billion as visitor exports by 2028, further boosting the growth outlook.

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Phrase of the day

Going Long

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