EID Parry’s Q4 profit shrinks
- Shares of the Chennai-based sugar and nutraceutical company fell 4% today after it reported a 75% year-on-year drop in its consolidated net profit for the March quarter. Its profits stood at ₹61 crore for Q4.
- Its sales declined by 8% to ₹3,907 crore, mainly because of a 27% drop in the sugar business, which contributes a fifth of the total revenues. Notwithstanding a weak Q4, its shares have risen over 33% in this fiscal.
Uflex surges on robust Q4
- Shares of the flexible packaging material manufacturer rose 20% today to hit a fresh lifetime high after the company posted strong results for the March quarter. Its consolidated net profit jumped 163% year-on-year to ₹265 crore, aided by healthy operational performance. Similarly, consolidated revenue from operations grew 45% to ₹2,564 crore.
- The company said it witnessed a rise in demand for packaging materials and added newer clients. Uflex has announced capital expenditure of ₹120 crore to meet the growing demand for aseptic packaging used in food and pharma sectors. It will finance the capex through owned and borrowed funds.
GIC Re posts modest profit growth
- The state-owned reinsurance company reported a 6% year-on-year growth in Q4 net profit to ₹1,260 crore. The profit growth was aided by an increase in investment income and a fall in incurred claims (claims for which an insurer has to make payment). However, the company net premium fell by 2.5% YoY to ₹8,240 crore.
- The management has warned that the pandemic has created significant uncertainties for future growth. It added that there could be some shrinkage in the purchase of insurance, which can have a cascading effect on reinsurance. Nonetheless, shares of GIC Re were up 1.9% today.
Auto sales expected to normalise soon
- According to reports, the street expects auto sales to completely recover during the second half of FY22. This recovery is likely to be led by the improving economic conditions, pent up demand and easing of restrictions.
- Passenger vehicle segment is expected to recover faster because of a preference for personal mobility. Tractor sales are also estimated to rebound much quicker than other segments led by normal monsoons and a good Rabi harvest season. Notably, the Nifty Auto Index has risen by 1.3% in June. Meanwhile, auto majors are expected to announce their monthly volumes tomorrow.