Raymond’s Q4 profit drops, Pidilite’s net profit up & more

Nifty50: 18,265 ▲ 1 (+0.01%)
Sensex: 61,761 ▼ 2 (-0.00%)

Hello readers!

Ever heard of mushroom leather? Well, neither had we, but apparently, scientists have been working on mycelium-based alternatives for quite a while. A new breakthrough even suggests that clothing made from such material could repair itself by utilising the regenerative properties of mycelium.

Despite The Last Of Us making us squeamish about anything mushroom-related, self-repairing clothing sounds really cool, doesn’t it? Speaking of self-repairing, the markets managed to bounce back a fair bit today after a lot of intra-day fluctuation to close right back where they started. Let's have a look.

• Markets close flat, above the 18,200 level.
• In all, 25 of the Nifty50 stocks closed in the green.
• The rupee weakened by 14 paise against the US dollar today.

Among the Nifty sectoral indices, IT (+0.7%) and Auto (+0.4%) were the top gainers, while Realty (-0.8%) and FMCG (-0.3%) were the top losers.

What’s trending

⭐ Raymond’s Q4 profit drops

Textile company Raymond (+0.05%) reported a 26% decline in its consolidated net profit at ₹194 crore for Q4FY23, attributed to a one time deferred tax adjustment of ₹177 crore. At the same time, its revenue for the quarter rose by 8% YoY to ₹2,192 crore. The company's board has recommended a dividend of ₹3 per share. 

⭐ Pidilite’s net profit up

Fevicol-maker, Pidilite (+0.75%) reported a 12% growth in consolidated net profit for Q4FY23 at ₹286 crore. In the same period, its revenue from operations grew 7.2% to ₹2,689 crore from ₹2,507 crore generated in Q4FY22. The company’s board has recommended a dividend of ₹11 per share.

⭐ Anupam Rasayan renews ₹436 crore contract

Custom synthesis company Anupam Rasayan (+0.4%) renewed a long-term contract worth ₹436 crores with a German multinational for the supply of a patented speciality chemical for the next 3 years on an exclusive basis. The company said it anticipates the volumes of this chemical to increase beyond the minimum offtake.

⭐ SRF’s Q4 profits down

SRF (+1.68%) reported a decline in profit of 7% to ₹562 crore in Q4FY23 compared with ₹606 crore reported in the same quarter last year. According to the company, the operating profit of its packaging films business decreased by 85% due to margin pressures. However, its consolidated revenue grew 6% from ₹3,549 crore to ₹3,778 crore in Q4FY23.

In Focus

Banking on personal loans

Post the pandemic, consumption has picked up pace in India. And banks are looking to ride this consumption wave by focusing on personal loans. ICYDK, personal loans are loans that don’t require collateral and are offered with minimal documentation to cover expenses such as travel, shopping, and weddings. 

Focus on personal loans

With India’s consumption story staying strong, lenders are focusing on personal loans to propel loan growth. For example, HDFC Bank will be offering personal loans within 10 seconds from next month. This service will be provided to non-HDFC Bank customers as well. Also, in the March quarter, ICICI Bank and Axis Bank reported growth of 40% and 21%, year-on-year, respectively in this segment. 

High margins

Experts believe that lenders have been focusing on the personal loan segment because of high margins or profitability. In simple terms, personal loans tend to have higher interest rates compared to other loan segments.   

Robust demand

Consumer sentiment has continued to improve from the historic low in mid-2021, according to the latest RBI survey. More importantly, the survey noted that household spending was buoyant. This could further fuel consumption and thereby increase the demand for personal loans. 

However, high inflation and increasing competition in the personal loan segment could play spoilsport.

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Phrase of the day

Going Long

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