ABFRL Net Loss Widens, Tata Steel Revenue Falls, NBCC Profit Surges, IRCTC Sees Modest Profit Increase

Opening Bell: 

Gift Nifty is down by 94.5 points in the early morning trade, indicating a negative opening for Indian stock market                                  

Asian markets traded mixed on Wednesday, mirroring the overnight trend on Wall Street.Japan’s Nikkei 225 gained 0.18%, while the Topix remained flat. South Korea’s Kospi declined 0.26% and the Kosdaq dropped 0.44%. Meanwhile, Hong Kong’s Hang Seng index futures pointed to a weaker opening.

The US stock market ended mixed on Tuesday, with the Nasdaq crossing 17,000 for the first time ever. The Dow Jones Industrial Average declined 216.73 points, or 0.55%, to 38,852.86, while the S&P 500 edged up 1.32 points, or 0.02%, to 5,306.04. The Nasdaq Composite closed 99.09 points, or 0.59%, higher at 17,019.88. Nvidia’s share price jumped 7%, GameStop shares rallied 25.2%, and Hess shares gained 0.4%. Exxon Mobil’s stock price ended 1.3% higher.

Stocks News:

👉 Aditya Birla Fashion and Retail (ABFRL) reported a net loss of ₹266.4 crore for Q4, up from last year’s loss of ₹194.5 crore. However, the company’s revenue increased by 18.3% to ₹3,406.7 crore. EBITDA also rose by 47.1% to ₹283.7 crore, with the EBITDA margin improving to 8.3% from 6.7%. The company noted that the results are not comparable to previous quarters due to the acquisition of TCNS Clothing and Styleverse Lifestyle.           

👉 Tata Steel is expected to announce a 7.6% decrease in revenue from operations for Q4 FY24, bringing it to ₹58,170 crore. The company’s Q4 EBITDA is projected to decline by 14% to ₹6,179 crore, and the profit after tax (PAT) is forecasted to drop sharply by 40% to ₹942 crore.

👉 NBCC (India) reported a 24.6% year-on-year increase in net profit, reaching ₹141.5 crore for Q4 FY24. The company’s revenue from operations surged by 43% to ₹4,025 crore. EBITDA rose to ₹240.2 crore, with an EBITDA margin of 6%.

👉 Indian Railway Catering and Tourism Corporation (IRCTC) reported a 2% increase in consolidated net profit, reaching ₹284 crore for Q4 FY24. The company’s revenue from operations rose by 19% to ₹1,155 crore.

👉 Foreign institutional investors remained net buyers on May 28 as they bought Indian equities worth Rs 65.57 crore, while domestic institutional investors continued their buying as they purchased equities worth Rs 3,231.67 crore on the same day.

Domestic and International Events

• Cost overruns and delays continued to afflict central government projects in April with experts citing the general election as a key reason for the current slowdown in infrastructure activity. The ratio of cost overruns in central government projects hit a 12-month high of 20.09% in April, rising from 18.65% in the previous month, government data showed on Tuesday.

• US Treasury yields rose to multi-week highs after two lackluster debt auctions. The 10-year yield rose 6.5 basis points (bps) to 4.538% after earlier advancing to 4.546%, the highest since May 3rd, Reuters reported. The US two-year yield was up 1.9 bps at 4.972%. The yield climbed to a roughly four-week peak of 4.981%. The dollar gained as the benchmark US Treasury yields hit a four-week high following some weak auctions. The dollar index was up 0.03% at 104.59, after earlier dropping to 104.3.

• Crude oil prices extended gains amid heightened geopolitical tensions in the Middle East ahead of an OPEC meeting. Brent crude oil rose 0.38% to $84.54 a barrel, while the US West Texas Intermediate (WTI) crude futures gained 0.49% to $80.22.