Market was eagerly waiting for the Q2FY21 result of Reliance Industries. Reliance received bad news from Singapore. The consolidated revenue and profit suffered due to poor performance of refining and petrochemical businesses. Consolidated revenue fell from Rs. 1,56,539 crore inn Q2FY20 to Rs. 1,20,444 crores in Q2FY21. Along the same lines, the PAT fell from Rs. 11,352 crores to Rs. 10,602 crores. EPS fell by 22% from Rs. 18.47 to Rs. 14.68. Reliance has booked investment under Other Equity and it may take another quarter for the company to utilize this amount in reducing debt.
The other major result announced this week were from Indian Oil, HPCL, L&T, ICICI Bank, Bharti Airtel, JSW Steel and Maruti Suzuki. Indian Oil and HPCL did quite well and PAT improved YoY. Larsen and Toubro saw its EPS jump from Rs. 18.01 (Q2FY20) to Rs. 39.32 on account of divestment of Electrical and Automation business to Schneider Electric SE. Company otherwise had to book loss from the continuing businesses due to exceptional items (Exceptional items (net of tax) during the quarter ended September 30, 2020 represent (a) impairment of funded exposure in the heavy forgings facility joint venture: Rs. 1075.30 crore and (b) impairment of assets in the power development business: Rs. 2657.00 crore.).
ICICI Bank reported net profit of Rs. 4,882.33 crores which was a jump of 332% over Q2FY20 profit of Rs. 1,131.20 crores. The bank improved its interest income by over Rs. 1,000 crores and the employee cost also declined a bit YoY. Provisions for Q2FY21 was more than provisions for Q2FY20. EPS jumped from Rs. 1.75 to Rs. 7.30.
Bharti Airtel had a relatively better quarter as the company increased its revenue both QoQ and YoY. The company reported Net Loss of Rs. 33.9 crores which was a massive improvement over its Q2FY20 loss of Rs. 22,830.1 crores. The company reported profit before tax of Rs. 517.8 crores.
Another important result came from Maruti Suzuki. The company has been showing increase in sale of vehicles over corresponding month of last financial year. Revenue from operations increased to Rs. 18,755 crores and PAT increased to Rs. 1,419.6 crores. This is notable as the country was going through lockdown related restrictions which also increased the expenditure towards safe operations. Maruti Suzuki’s result indicate that the turnaround is almost complete.
Many banks declared their results last week. These banks are::
- DCB Bank
- INDUSIND BANK
- YES BANK
- CANARA BANK
- BANK OF BARODA
- AU Small Finance Bank
- AXIS BANK
- RBL Bank
- KOTAK MAHINDRA BANK
- IDBI BANK
- IDFC First Bank
There is no doubt that the economy is seeing the green shoots of revival. The GST numbers for September 2020 also indicate that the economy has revived after the slowdown seen in the first quarter of FY21.
Market must be eagerly looking towards Europe which is seeing lockdowns again.