Sun Pharma Projects 22% Q4 Earnings Rise; PI Industries’ Profit Up 31.7%; BHEL Net Profit Up 25.6%; Hitachi Energy India Surges 123.82%

Opening Bell: 

Gift Nifty is up by 16.5 points in the early morning trade, indicating a positive opening for Indian stock market                            

Asian markets saw mixed trading on Wednesday as investors evaluated economic data from Japan. Japan’s Nikkei 225 dropped 0.5%, and South Korea’s Kospi decreased by 0.35%. Meanwhile, Hong Kong’s Hang Seng index was at 19,212, indicating a slightly weaker opening compared to its previous close of 19,220.62.

The US stock market closed higher on Tuesday, with the S&P 500 and Nasdaq reaching record levels. The Dow Jones Industrial Average increased by 66.22 points, or 0.17%, to 39,872.99. The S&P 500 climbed 13.28 points, or 0.25%, to 5,321.41, while the Nasdaq Composite advanced 37.75 points, or 0.22%, to 16,832.62.

Stocks News:

👉 Sun Pharmaceutical: The company is projected to report a 22% increase in earnings for Q4 when it announces its March 2024 quarter results on May 22, driven by robust sales of its specialty drugs, contributions from the blockbuster generic cancer drug Revlimid, and resilient growth in the domestic market. Sun Pharma’s Q4 net profit is expected to rise to ₹2,412.60 crore from ₹1,984.50 crore in the same period last year. Revenue is anticipated to grow nearly 12% to ₹12,241.25 crore from ₹10,930.60 crore a year earlier. The high-margin, low-competition specialty segment will continue to fuel the company’s growth in Q4.

👉 PI Industries: The company reported a 31.7% year-on-year increase in net profit, reaching ₹369.5 crore for the fourth quarter ending March 31, 2024. Revenue from operations rose 11.2% to ₹1,741 crore, up from ₹1,565.6 crore in the corresponding period of the previous fiscal year. At the operating level, EBITDA increased by 29% to ₹441.8 crore in Q4, compared to ₹342.8 crore in the same period last year. 

👉 Bharat Heavy Electricals: BHEL’s Q4FY24 net profit increased by 25.6% to ₹489.6 crore, with revenue from operations rising marginally by 0.4% to ₹8,260 crore. The company’s EBITDA grew by 30.6% to ₹728 crore. However, BHEL’s consolidated net profit for FY24 declined to ₹282.22 crore. The board recommended a final dividend of 12.50%, or ₹0.25 per share.

👉 Hitachi Energy India: The company reported a 123.82% year-on-year increase in net profit, reaching ₹113.7 crore for Q4FY24. Revenue from operations grew by 27.1% to ₹1,695.3 crore, up from ₹1,334 crore in the corresponding period of the previous fiscal year. At the operating level, EBITDA surged 91.4% to ₹182 crore in Q4, compared to ₹95.1 crore in the same period of FY23.

👉 FIIs sold shares worth Rs 1,874.54 crore. DIIs buy in Rs 3,548.97 crore worth of stocks on May 21

Domestic and International Events

• India has reinforced restrictions on specific electronics and IT goods imports, according to a recent Commerce Ministry notification dated May 20. The order, active since 2021, prohibits unregistered and non-compliant products. Measures include random sampling and testing of LED products. The government will allow imports meeting safety standards, while non-compliant goods face re-exportation or destruction.

• Japan’s exports rose 8.3% in April from a year earlier, while imports also rose 8.3% in the year to April, versus a 9.0% increase seen by economists. As a result, the country’s trade balance came to a deficit of 462.5 billion yen ($2.96 billion).

• Crude oil prices extended decline on rising US crude inventories. Brent crude oil fell 0.57% to $82.41 a barrel, while the US West Texas Intermediate (WTI) crude futures declined 0.68% to $79.26.

• Gold prices showed little movement, holding steady in anticipation of the release of the minutes detailing discussions from the most recent monetary policy meeting of the U.S. Federal Reserve.