Morning Update for 4 November 2021

Indices at previous closing

Nifty50: 17,888 ▼ -40 (-0.2%)
Sensex: 60,029 ▼ -109 (-0.1%)
Nifty Bank: 39,938 ▲+174 (+0.4%)

For more updates on F&O, click here.

Bata India posts profit in Q2

In the September quarter, the footwear maker reported a net profit of ₹37.1 crore compared to a loss of ₹44.3 crore in the same period last year. The profit was driven by a 66.9% increase in revenue to ₹614 crore. 

With the re-opening of the economy, Bata India’s retail outlets witnessed consistent increase in footfalls. The company’s sales on e-commerce platforms also saw growth. The management has said that it has continued its expansion in tier 3 to 5 cities through the franchise route. Meanwhile, shares of the company were down 0.3% yesterday, but the results were announced after the market hours. 

ABFRL’s Q2 revenue nears pre-pandemic levels

Aditya Birla group’s fashion and retail arm reported a profit of ₹5 crore in its September quarter, as compared to a loss of ₹188 crore in the same period last year. The company was able to report a profit owing to a 99% rise in revenue to ₹2,054 crore. This is 90% of its pre-Covid levels. 

The management has said that new store openings boosted growth, while the small town formats continue to show promising results. ABFRL’s net debt has also reduced by 27% to ₹873 crore, and the management expects debt to remain range bound during the year despite aggressive growth plans across brands. Meanwhile, shares of the company were down 1.8% yesterday. 

Input costs hurt UFlex in Q2 

One of India's largest flexible packaging companies witnessed a 23% year-on-year fall in its net profit to ₹170 crore in the September quarter. In the same period, its revenue grew by 36% year-on-year to ₹3,036 crore. 

The growth in revenue was driven by a 31.5% rise in the overall sales volume with contribution from the newly commissioned capacities in Hungary, Egypt, Russia and Poland. While the company has a strong order book, the increase in raw material prices, higher shipping and energy costs impacted its profitability. The management expects margins to improve once raw material prices stabilise. Meanwhile, shares of UFlex were down by 0.5% yesterday. 

Sectoral indices (November 3)

Global markets (at 9:15 am)

Fact of the day

Established in 1875, Bombay Stock Exchange is the oldest stock exchange in Asia. Guess which is the oldest stock exchange in the world? The Amsterdam Stock Exchange, which was established in 1602.

Source: BSE India

Pitch report

India trounced Afghanistan by 66 runs yesterday. Rohit Sharma and KL Rahul smashed fifties to help India post a strong total of 210 runs. Afghanistan struggled while chasing this big total and lost wickets at regular intervals. Mohammad Shami and R Ashwin picked up 3 and 2 wickets, respectively. Afghanistan were restricted to 144 runs for 7 wickets.  

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