Morning Update for 6 August 2021

Indices at previous closing

Nifty50: 16,294 ▲ 35 (+0.2%)
Sensex: 54,492 ▲123 (+0.2%)
Nifty Bank: 35,834 ▼193 (-0.5%)

In the news

India business drives Cipla’s revenue growth

Pharma major Cipla reported consolidated net profit of ₹715 crore for the June quarter, an increase of 24% year-on-year. The profit growth was supported by a 27% surge in the revenue from operations at ₹5,504 crore.

The India business, which contributes nearly half of the total revenues, grew by 68% during the quarter, powered by strong volumes in core therapies. Meanwhile, the US business witnessed 5% YoY revenue growth led by expansion in market share of its respiratory drug portfolio. Shares of Cipla were up 0.6% yesterday, but the results were announced after market hours.

Adani Power posts strong profit in Q1

The thermal power producer reported a net profit of ₹278 crore in the June quarter compared to a loss of ₹682 crore in the same period. The company’s revenue also rose by 35% year-on-year to 7,213 crore. 

The management attributed the strong performance to recovery in the electricity demand in the country. The company said that the aggregate electricity demand rose by 16% YoY in the backdrop of normalisation of economic activity. Shares of the company were down 1.5% but the results were announced after market hours.

Tata Chemicals Q1 profit surges

Tata Chemicals posted a massive 362% YoY jump in its consolidated net profit to ₹342 crore in the June quarter. The revenue from operations stood at ₹ 2,977 crore, which was 27% higher in comparison to the same period last year.

The growth was mainly driven by the rise in the volumes for soda ash in the US and India. The rebound in demand cushioned the impact of increasing energy and freight costs. Both segments, viz basic chemistry products and specialty products, saw healthy growth. The shares of Tata Chemicals were up 0.8% today.

Sectoral indices (August 5)

Global markets (at 8:00 am)

Fact of the day

Belgian beer giant AB InBev holds more than one fifth of the world’s beer market share with 630 brands (including Budweiser) and presence in 150 countries. 

Source: Insider Monkey 

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