HPCL Share Price Jumps 5% After Strong Q3 FY25 Results

Hindustan Petroleum Corporation (HPCL) shares rose by 4.9% to ₹380 on Friday, hitting an intraday high. The stock’s increase followed the announcement of a significant rise in the company’s quarterly net profit.

Profit Surge and Revenue Growth

HPCL’s net profit surged 257% year-on-year (Y-o-Y) to ₹2,544 crore in Q3, compared to ₹712.84 crore last year. Sequentially, profits increased by 16.83 times. The company’s revenue for the quarter stood at ₹1,18,513.22 crore, a 0.4% rise Y-o-Y and a 10% increase compared to the previous quarter.

Refinery Performance

HPCL’s refineries performed exceptionally well, recording their highest-ever crude throughput of 18.53 million metric tons (MMT) from April to December 2024, a 12.4% rise compared to the previous year. In Q3FY25, throughput increased by 21.2% to 6.47 MMT.

Record Sales Volume

The company also achieved a record sales volume of 37.12 MMT (including exports) for the 9 months ending December 31, 2024, showing a 7.6% growth from the previous year.

HPCL’s Green Initiatives and Low-Carbon Transition

In 3QFY25, HPCL’s Visakh Refinery launched an advanced Wet Air Oxidation (WAO) unit, a low-pressure technology for treating spent caustic streams. This new unit not only provides environmental benefits but also helps reduce operational costs.

HPCL Renewable & Green Energy Ltd., a subsidiary of HPCL, signed an MoU with the Government of Rajasthan to set up solar and wind hybrid projects. The company also partnered with the Government of Bihar for a ₹ 500 crore investment to establish 7 CBG plants in the state.

In 3QFY25, HPCL commissioned CNG facilities at 50 retail outlets, bringing the total to 1,851 outlets. Additionally, EV charging stations were added at 1,062 retail outlets, increasing the total to 5,104. Solar panels were installed at 467 retail outlets, bringing the total number of outlets with solar power to 21,334, covering 93% of HPCL’s retail network with renewable energy.

Oil Marketing Companies Benefit from Crude Oil Drop

Oil marketing companies (OMCs) like HPCL, Bharat Petroleum Corporation (BPCL), and Indian Oil Corporation (IOC) saw gains of up to 5% as crude oil prices fell. This drop followed US President Donald Trump’s call for Saudi Arabia and Opec to reduce oil prices during his address at the World Economic Forum. Brent crude futures were last down by 0.09% at $78.22 per barrel.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

RBI to Review Impact of Stricter LCR Norms on Banks’ Liquidity and Lending

The Reserve Bank of India (RBI) has asked commercial banks to evaluate how new changes to the Liquidity Coverage Ratio (LCR) norms could affect their operations. This comes after concerns from banks about the stricter regulations, according to reports.

Draft Norms Under Review

The RBI is reviewing draft norms that are expected to come into effect on April 1, following approval by Governor Sanjay Malhotra. The new rules will require banks to hold more high-quality liquid assets (HQLAs), which could reduce their ability to lend. HQLAs help banks manage sudden liquidity needs during disruptions.

Reason Behind the Proposed Changes

The new LCR regulations aim to address risks like large online withdrawals inspired by events such as the collapse of Silicon Valley Bank in 2023. Banks have raised concerns with the finance ministry that these stricter norms could impact their lending capacity.

Impact on System Liquidity

The RBI has asked large commercial banks to assess the impact of the new LCR norms compared to the current system. This exercise is aimed at understanding how the proposed changes could affect overall liquidity in the banking system.

Banks May Need Significant Investment in Government Securities

If the new LCR norms are enforced without changes, banks might have to purchase ₹4-6 trillion in government securities to meet the requirements. These securities are used as HQLAs to manage liquidity in case of a crisis.

Currently, only government securities qualify as HQLAs, and the RBI has consistently rejected proposals to include the Cash Reserve Ratio (CRR) as part of these assets. This means banks will have to divert ₹4-6 trillion into government bonds, which could limit their ability to lend to businesses and individuals.

Proposed Changes to the LCR

The RBI’s draft guidelines, released in July, suggest increasing the “run-off” factor for retail deposits accessed via internet and mobile banking (IMB). The run-off factor for stable IMB deposits would rise from 5% to 10% and for less stable IMB deposits, from 10% to 15%.

Industry Concerns

Banks have requested the finance ministry to relax or delay these guidelines, fearing negative effects on credit growth. Economists have pointed out that current economic conditions, like low growth, tight liquidity, and currency depreciation, are different from when the draft rules were first proposed.

A senior economist warned that if these norms are implemented as planned, they could severely impact the banking system. More commentary on the matter is expected during the RBI’s monetary policy announcement on February 7.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Stocks to Watch on January 24, 2025: ICICI Bank, Dr Reddy’s, HPCL, Adani Green, NHPC in Focus

Indian markets are likely to get impacted, as indicated by GIFT Nifty futures trading 45 points higher than Nifty50 futures at 23,308.

On Thursday, the markets ended in the green, with the BSE Sensex gaining 115 points (0.15%) to close at 76,520.38, while the Nifty50 advanced by 50 points (0.22%) to settle at 23,205.35.

Here are the key stocks to keep an eye on today.

  • Earnings Reports Today

Several companies, including ICICI Bank, NTPC, IDFC First Bank, Yes Bank, Balkrishna Industries, Gujarat Ambuja Exports, Go Fashion, JK Cement, Macrotech Developers, NTPC Green Energy, SBFC Finance, and Transport Corporation of India, are set to announce their quarterly earnings today.

  • Performance of Dr Reddy’s Laboratories

Dr Reddy’s Laboratories reported a 2.5% increase in Q3 net profit to ₹1,413.3 crore compared to ₹1,378.9 crore in the same period last year. Revenue grew by 15.9% to ₹8,358.6 crore, and EBITDA rose by 8.9% to ₹2,298.2 crore. However, the EBITDA margin declined to 27.5% from 29.3%.

  • UltraTech Cement’s Results

India’s largest cement maker, UltraTech Cement, recorded a 17.3% decline in Q3 net profit to ₹1,470 crore due to weak price realizations despite higher volumes. Revenue saw a modest growth of 2.7% to ₹17,193 crore year-on-year.

  • Indus Towers Sees a Strong Quarter

Indus Towers posted a significant increase in Q3 net profit, rising to ₹4,000 crore from ₹1,540 crore last year. Revenue grew to ₹7,647 crore, while the EBITDA margin improved to 92.71% from 50.31%.

  • HPCL Reports Robust Performance

Hindustan Petroleum Corporation Limited (HPCL) reported a sharp rise in Q3 standalone net profit to ₹3,023 crore, up from ₹630 crore in the previous quarter. Revenue climbed to ₹1,18,000 crore, and the EBITDA margin improved to 5.04% from 2.52%.

  • Adani Green Energy’s Growth

Adani Green Energy’s Q3 net profit increased to ₹492 crore from ₹260 crore, while revenue stood at ₹2,365 crore. However, the EBITDA margin declined to 67.7% from 72.09%.

  • NHPC Forms Green Energy Venture

NHPC formed a joint venture with Andhra Pradesh Power Generation Corporation (APGENCO) for green energy projects, with equal equity participation.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

IREDA Approves ₹5,000 Crore Fundraising via QIP

On January 23, 2025, Indian Renewable Energy Development Agency (IREDA) announced that it will raise ₹5,000 crore through a Qualified Institutional Placement (QIP). The funds will be raised in 1 or more tranches. The company’s board approved this plan during its meeting.

Conditions for the Fundraise

IREDA has specified that the President of India’s shareholding, through the Ministry of New and Renewable Energy, must not decrease by more than 7% of the company’s post-issue paid-up equity share capital.

What is QIP?

A QIP allows listed companies to raise funds by issuing other securities or equity shares to QIBs (qualified institutional buyers), such as mutual funds, foreign investors, and banks. Retail investors cannot participate in a QIP.

Previous Fundraising Efforts

In September 2024, IREDA was approved to raise ₹4,500 crore through another QIP. DIPAM (The Department of Investment and Public Asset Management) approved this fresh equity issue.

Strong Performance in Q3FY25

In Q3FY25, IREDA reported a 27% increase in net profit, reaching ₹425.38 crore. Its revenue grew by 35.6%, and net interest income rose 39% year-on-year.

IREDA stock price has gained nearly 35% over the past year. Although it’s down 35% from its 52-week high of ₹310, it has risen 66% from its 52-week low of ₹121.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Biocon Share Price Gains 3% on Fundraising Announcement

Biocon’s share price rose by 2.61% to ₹398 per share on January 23, 2025, following the company’s announcement that its board will consider raising funds through commercial papers (CPs) or other private placement methods. The board meeting is scheduled for January 27, 2025.

Fundraising Plans 

The company stated that it is exploring the issuance of commercial papers or other modes of raising funds. This news positively impacted investor sentiment, leading to the stock’s increase during the day.

Credit Ratings 

India Ratings and Research (Ind-Ra) has affirmed Biocon’s credit ratings. The rating for Biocon’s non-convertible debentures (NCDs) remains at ‘IND AA+/Stable,’ while the proposed commercial papers have been rated ‘IND A1+.’ The rating agency also reaffirmed the ‘IND AA+/Stable’ rating for the company’s term loan under external commercial borrowings (ECBs).

Company Overview 

Biocon has a strong position in the global biosimilar market, particularly in the US and EU. The company recently completed the acquisition of biosimilars from Viatris Inc., enhancing its market share. Despite some debt reduction delays, the company expects significant product launches to improve credit metrics from FY27 onwards.

Stock Performance 

Biocon’s stock has underperformed the market, falling 10% in the last 6 months and 24% in the last year. However, the BSE Sensex dropped 4.9% in the last six months but rose 7.2% over the past year.

As of 1:24 PM, Biocon share price dropped by 2.28% to ₹396.70, while the BSE Sensex was up 0.31% at 76,642.01.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Jupiter Wagons Shares Rise on Fundraising Plans

Jupiter Wagons share price saw a rise of 2.61% on January 23, 2025, reaching an intraday high of ₹485.75. By 12:31 PM, the stock was trading 1.50% higher at ₹480.45, while the BSE Sensex was up 0.38% at 76,696.88.

Fundraising Announcement

The company announced a board meeting scheduled for January 29, 2025, to discuss plans for raising funds through various methods. These may include issuing equity shares, convertible preference shares, bonds, debentures, warrants, or other equity-linked instruments. Potential fundraising modes include private placements, qualified institutional placements (QIPs), public issues, rights issues, or preferential allotments, subject to necessary approvals.

During the same meeting, the Board will also review and approve the company’s Q3 FY25 financial results.

About Jupiter Wagons

Jupiter Wagons provides a wide range of mobility solutions, including freight wagons, locomotives, passenger coaches (LHB), metro coaches, braking systems, and commercial vehicles. The company also manufactures ISO marine containers and components such as couplers, draft gears, bogies, and CMS crossings.

Manufacturing Facilities and Partnerships

With manufacturing facilities in Kolkata, Jamshedpur, Indore, and Jabalpur, the company has fully integrated foundry operations. Jupiter Wagons has strategic partnerships with leading global firms, including Tatravagonka (Slovakia), DAKO-CZ (Czech Republic), and Frenoplast S.A (Poland), among others.

This announcement has generated investor interest, contributing to the stock’s upward momentum.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

 

Laxmi Organic Shares Jump 5% on Strong Q3 FY25 Results

Laxmi Organic shares surged by 5.45% on January 23, 2025, hitting an intraday high of ₹240.75. The rise came after the company announced robust financial results for Q3 FY25.
The stock was trading 4.49% higher at ₹238.55 as of 9:47 AM, outperforming the BSE Sensex, which was flat at 76,444.

Q3 FY25 Financial Highlights

Laxmi Organic reported a 13.3% year-on-year increase in revenue, which stood at ₹786.3 crore, compared to ₹694.3 crore in the same quarter last year. The company’s operating profit (EBITDA) soared by 59.1% year-on-year to ₹74.8 crore, up from ₹47 crore in Q3 FY24. Its EBITDA margin also improved significantly, rising to 9.5% from 6.8% in the previous year.

About Laxmi Organic

Laxmi Organic Industries is a prominent player in the chemical manufacturing sector, focusing on speciality chemicals and intermediates. The company’s product portfolio includes acetaldehyde, acetic acid, ethyl acetate, and a range of other intermediates used across various industries.

Industries and Expertise

The company serves diverse sectors such as agrochemicals, pharmaceuticals, paints, coatings, and textiles. Known for its expertise in high-performance chemicals, Laxmi Organic emphasises sustainable growth and innovation while expanding its global market reach.

Listed on both the BSE and NSE, Laxmi Organic is recognised for its commitment to deliver quality products and maintaining a strong presence in the fine chemicals and intermediates market.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

KEI Industries Shares Surge 11% Post Q3 FY25 Results and Dividend Announcement

KEI Industries share price rose significantly following the announcement of its Q3 FY25 results and an interim dividend. The share price gained over 11% in 2 days, with a 9.4% jump on Thursday, hitting an intraday high of ₹4,516.65.

Stock Performance

As of 10:46 AM on Thursday, the stock was trading at ₹4,471.55 on the BSE, up 8.34%. The company’s market cap stood at ₹42,726.82 crore. The 52-week high was ₹5,040.4, and the 52-week low was ₹2,883.6. Over the past year, KEI shares have surged 36.7%, outperforming the Sensex, which rose 8.5% in the same period.

Q3 FY25 Financial Highlights

  • Net Profit: ₹165 crore, a 9% YoY increase compared to ₹151 crore in Q3 FY24.
  • Revenue: ₹2,467 crore, up 19.8% YoY from ₹2,059 crore a year ago.

Interim Dividend Announcement

  • The board approved an interim dividend of ₹4 per equity share (face value of ₹2 each) for FY25.
  • The record date for the dividend is January 27, 2025.

Industry Growth Drivers

  • The cable and wire industry is experiencing strong growth due to demand from sectors like power distribution, solar energy, and infrastructure.
  • KEI’s continued focus on capital investment, robust margins, and a strong balance sheet is expected to further enhance its performance.

About KEI Industries

KEI Industries specialises in manufacturing electrical products, including power cables, control cables, and flexible cables. These products are widely used in power distribution, construction, and telecommunications, and the company is recognised for its high-quality offerings and strong industry presence.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

UltraTech Cement Shares Gain 2% Ahead of Q3 Earnings

On January 23, 2025, UltraTech Cement shares gained momentum ahead of its Q3 results, climbing 2.2% to an intraday high of ₹10,930.05. By 10:11 AM, the stock was trading 1.81% higher at ₹10,888.10, while the BSE Sensex was up 0.28% at 76,617.12.

Financial Highlights

UltraTech Cement reported a net profit of ₹825 crore for the July-September 2024 quarter. The profit dropped by 36% compared to ₹1,280 crore in the same period last year. The company’s revenue for the quarter stood at ₹15,635 crore, a 2% decline year-on-year (YoY) but slightly higher than the estimated ₹15,420 crore.

Operating margins also declined significantly, dropping 300 basis points from 15.9% in Q2 FY24 to 12.9% in Q2 FY25. EBITDA came in at ₹2,019 crore, lower than the expected ₹2,180 crore and a 21% drop from ₹2,550 crore in the same quarter last year.

About UltraTech Cement

UltraTech Cement, part of the Aditya Birla Group, is India’s largest cement producer, with a capacity of over 120 million tonnes per year. The company operates more than 20 integrated plants, along with grinding units and bulk terminals across India.

A leader in the Indian cement market, UltraTech also has a strong presence in exports. Its product portfolio includes Ordinary Portland Cement (OPC), Portland Pozzolana Cement (PPC), and Ready Mix Concrete (RMC), catering to diverse construction needs ranging from residential projects to large infrastructure developments.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

HDFC Bank Share Price in Focus: Profit Rises 2% YoY to ₹16,736 Crore

HDFC Bank, India’s largest private lender, reported a standalone net profit of ₹16,735.5 crore for the October-December quarter of FY25. This marks a 2.2% year-on-year (YoY) growth from ₹16,372.5 crore in Q3FY24. However, the profit saw a slight dip compared to ₹16,820.9 crore in the previous quarter.

Net Interest Income (NII) and Margins

The bank’s net interest income (NII) grew 8% YoY to ₹30,653 crore in Q3FY25. Net interest margin (NIM) stood at 3.43%, slightly higher than 3.4% YoY but lower than 3.46% in the previous quarter.

Asset Quality and Provisions

Asset quality weakened during the quarter. The gross non-performing asset (GNPA) ratio rose to 1.42%, compared to 1.36% in the previous quarter and 1.26% a year ago. The net NPA ratio increased to 0.46% from 0.41% QoQ and 0.31% YoY. Provisions for the quarter rose to ₹3,135.8 crore from ₹2,700.5 crore in Q2FY25 but were lower than ₹4,216.6 crore a year earlier.

Overall, HDFC Bank delivered better-than-expected results, boosting investor confidence and positively impacting market sentiment.

About HDFC Bank Limited

HDFC Bank Limited, based in Mumbai, is a major Indian banking and financial services company. It is the largest private bank in India by assets and ranks as the tenth-largest bank globally by market value as of May 2024. As of April 2024, the bank has a market value of $145 billion, making it the third-largest company on India’s stock exchanges.

HDFC Bank share price is currently trading at ₹1,670.15, up by ₹4.10 (0.25%) as of 10:00 AM IST on January 23. The stock opened at ₹1,687.00, reached a high of ₹1,687.00, and a low of ₹1,663.50. Over the past 52 weeks, the stock’s highest value was ₹1,880.00, and its lowest was ₹1,363.55. In the past 5 days, it has risen by ₹27.75 (1.69%), while it has gained ₹55.10 (3.40%) over the past 6 months. Compared to a year ago, HDFC Bank Ltd’s stock has increased by ₹246.15 (17.25%).

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.