Six results flagged for questions; five carried a serious flag
Of 19 results filed today, the six detailed here all failed to come through the checks clean. The gaps between revenue and profit are the story.
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Results, read forensically
Six of the day's 19 results are detailed here, and none was clean. Five carried a serious flag: Apollo Tyres, Biocon, Chalet Hotels, Kirloskar Oil Engines and FSN E-Commerce (Nykaa). NHPC had no serious flag but still raised two questions.
The pattern is profit that does not match the business. Chalet's revenue fell 31.7% while profit rose 39.7%, and the check asks what lifted the gap. Apollo Tyres has the same question, with revenue up 16.6% and profit up 13.3%. Biocon's profit fell 57.3% on revenue up 2.2%, and half or more of its pre-tax profit came from other income. The open question is whether that income repeats.
Two results raise a cash question. Kirloskar Oil Engines grew revenue 17.1% but profit fell 18.1%, and the check found profit with no operating cash behind it. Nykaa shows the same flag, with revenue up 28.1% and profit up 206.8%. For NHPC, revenue rose 33.2% and profit 35.9%. Its finance cost rose fast and now takes a large bite of operating profit, so the question is new borrowing or a higher rate.
| Company | Revenue y/y | Profit y/y | What the checks found |
|---|---|---|---|
| Apollo Tyres Ltd. | +16.6% | +13.3% | serious question Most of the profit growth did not come from the business. What lifted the gap? |
| Biocon Ltd. | +2.2% | −57.3% | serious question Half or more of pre-tax profit came from other income. What is it, and does it repeat? |
| Chalet Hotels Ltd. | −31.7% | +39.7% | serious question Most of the profit growth did not come from the business. What lifted the gap? |
| Kirloskar Oil Eng Ltd. | +17.1% | −18.1% | serious question Profit with no operating cash behind it. Where did the cash go? |
| FSN E-Commerce Ventures Ltd. | +28.1% | +206.8% | serious question Profit with no operating cash behind it. Where did the cash go? |
| NHPC Ltd. | +33.2% | +35.9% | 2 to ask Finance cost rose fast and now takes a large bite of operating profit. New borrowing, or a higher rate? |
This morning's brief, scored
This morning's brief named three conditions: FIIs turning net buyers in the cash market, DIIs buying at least as much as FIIs sell, and India VIX closing lower than the day before. None can be scored yet, because the figures are not known yet.
- Not knownFIIs turn net buyers in the cash market
- Not knownDIIs buy at least as much as FIIs sell
- Not knownIndia VIX closes lower than the day before
Queued for tomorrow
Twenty-five board meetings are queued for Thursday, 5 November. They include Oil & Natural Gas Corporation, Titan Company, Britannia Industries, Berger Paints, Fortis Healthcare, Glenmark Pharmaceuticals and Astral.
- 25 results board meetings: Oil & Natural Gas Corporation Ltd., Titan Company Ltd., Aadhar Housing Finance Ltd., Abbott India Ltd., Astral Ltd., BEML Ltd., Berger Paints India Ltd., Bikaji Foods International Ltd., Blue Jet Healthcare Ltd., Britannia Industries Ltd., CESC Ltd., Cemindia Projects Ltd., Fortis Healthcare Ltd., Glenmark Pharmaceuticals Ltd., Godfrey Phillips India Ltd. and more