Titan's profit jump came with no operating cash behind it, the checks found
None of the six results detailed from the day's 12 passed clean. Four were flagged on cash conversion, one on the auditor's conclusion and one on an auditor's emphasis of matter.
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The day
The money
Results, read forensically
Titan Company reported revenue up 10.1% and profit up 113.7% year on year, but the checks raised 2 serious flags from 5 questions. The first: profit with no operating cash behind it, so where did the cash go? Astral (revenue up 26%, profit down 5.6%), M&M (revenue up 25.3%, profit up 30.4%) and Cemindia Projects (revenue up 25.2%, profit up 21.3%) each drew the same cash question as a serious flag.
Emami's revenue rose 36.2% and profit fell 1.9%. The auditor did not give a clean conclusion on the results, so the qualification is the first thing to read. ONGC showed revenue up 25.6% and profit up 46.9% with no serious flags, but the auditor drew attention to a matter in the limited review report. That report should be read before the numbers.
| Company | Revenue y/y | Profit y/y | What the checks found |
|---|---|---|---|
| Titan Company Ltd. | +10.1% | +113.7% | serious question Profit with no operating cash behind it. Where did the cash go? |
| Astral Ltd. | +26.0% | −5.6% | serious question Profit with no operating cash behind it. Where did the cash go? |
| Emami Ltd. | +36.2% | −1.9% | serious question The auditor did not give a clean conclusion on these results. What is the qualification about? |
| Mahindra & Mahindra Ltd. | +25.3% | +30.4% | serious question Profit with no operating cash behind it. Where did the cash go? |
| Cemindia Projects Ltd. | +25.2% | +21.3% | serious question Profit with no operating cash behind it. Where did the cash go? |
| Oil & Natural Gas Corporation Ltd. | +25.6% | +46.9% | 1 to ask The auditor drew attention to a matter in the limited review report. Read it before the numbers. |
This morning's brief, scored
This morning's brief set three conditions. FIIs turning net buyers in the cash market, more than half of the Nifty 500 closing higher, and India VIX closing lower than the day before. The outcome of each is not known yet.
- Not knownFIIs turn net buyers in the cash market
- Not knownMore than half of the Nifty 500 closes higher
- Not knownIndia VIX closes lower than the day before
Queued for tomorrow
Nine companies have board meetings on Friday, 6 November: 3M India, Aster DM Quality Care, Cholamandalam Financial Holdings, Cohance Lifesciences, Elgi Equipments, Gland Pharma, Honasa Consumer, Jammu & Kashmir Bank and Jubilant Foodworks.
- 9 results board meetings: 3M India Ltd., Aster DM Quality Care Ltd., Cholamandalam Financial Holdings Ltd., Cohance Lifesciences Ltd., Elgi Equipments Ltd., Gland Pharma Ltd., Honasa Consumer Ltd., Jammu & Kashmir Bank Ltd., Jubilant Foodworks Ltd.