Suzlon net profit jumps after debt restructuring
Wind-turbine maker Suzlon reported consolidated net profit at ₹674 crore in Q2. This is in sharp contrast to the net loss of ₹398 crore in Q1 this year and ₹777 crore in Q2 last year. Notably, the company booked an exceptional gain of ₹821 crores in Q2FY21 after it restructured foreign debt, without which the company would have reported a loss. It also benefited from lower interest costs of ₹197 crore (versus ₹300 crore last year). Further, it is generally observed that rising crude oil prices increase investor interest in renewable energy companies. The stock was up 5% today.
Crude oil prices spike on lower inventories
While the concerns over lockdown in several European countries persist, crude oil prices have spiked nearly 15% so far this week. The increase in prices is fueled by a reduction in US crude oil inventories of over 5 million barrels versus an expected reduction of less than 1 million barrels. Further, the recent news of a viable Covid vaccine raises hopes of demand returning to normalcy soon. The extension of production cuts by OPEC also helped lift up the prices.
NMDC sees profit-booking after results
State-run iron-ore miner NMDC reported Q2 consolidated revenues at ₹2,230 crore, down 0.5% as compared to the same period last year. Although the sales volume increased almost 13%, a 12% drop in iron ore prices pulled the overall sales down. However, lower expenses boosted net profit, which grew 10% over the last year to ₹773 crore. The company has announced a buyback at ₹105 per share, a nearly 16% premium over today’s closing price. The stock gained nearly 10% last week but witnessed profit-booking after its results. It was down nearly 6% intraday today but recovered along with other buoyant metal sector stocks and ended the day with a decline of 3.5%.