Godrej Consumer’s Loss, Gujarat Gas’s Profit Surge, Lupin’s Growth & FDA Approval, LTIMindtree’s Tax Demand

Opening Bell: 

Gift Nifty is up by 10.0 points in the early morning trade, indicating a positive opening for Indian stock market                

Asian stocks surged at the outset, lifted by Wall Street’s optimism regarding potential interest rate cuts by the Federal Reserve this year. Japan’s Nikkei 225 soared by up to 1.6% upon resuming trading after a holiday, while Australian shares climbed by 0.7%. The yen weakened following remarks by Japan’s top currency official indicating no government intervention unless market functionality is disrupted. In China, optimism prevails as supportive policies drive shares and the yuan higher. Rebounding assets are attracting investors drawn by prospects of earnings recovery, policy support, and appealing valuations. Australia’s central bank is expected to maintain its key interest rate while acknowledging ongoing consumer price trends.

On Monday, the US stock market closed higher, marking the third consecutive session of gains. The Dow Jones Industrial Average climbed 176.59 points, or 0.46%, reaching 38,852.27, while the S&P 500 surged 52.95 points, or 1.03%, closing at 5,180.74. Similarly, the Nasdaq Composite finished 192.92 points, or 1.19%, higher at 16,349.25.

Stocks News:

👉 Godrej Consumer Products reported a net loss of Rs 1,893.2 crore for the quarter ending March FY24, despite strong operating performance, primarily due to an exceptional loss of Rs 2,375.65 crore during the quarter (compared to an exceptional loss of Rs 22.2 crore in the same period last year). In Q4 FY23, the company had recorded a profit of Rs 452.1 crore. Revenue from operations increased by 5.8 percent year-on-year to Rs 3,385.6 crore for the quarter, driven by a volume growth of 12 percent, including a 15 percent growth in India business volume. EBITDA surged 17.9 percent year-on-year to Rs 755.7 crore, resulting in a margin expansion of 230 bps to 22.3 percent in Q4 FY24. Additionally, the company announced an interim dividend of Rs 10 per share.

👉 Gujarat Gas, the city gas distribution firm, saw a remarkable 86 percent quarter-on-quarter surge in net profit, reaching Rs 409.5 crore for the quarter ending March FY24. This growth was fueled by a decline in spot gas prices and an uptick in volumes. Revenue from operations (excluding excise duty) also saw a sequential increase of 5.2 percent to Rs 4,134.2 crore for the quarter. The company’s board has proposed a dividend of Rs 5.66 per share and has appointed Rajesh Sivadasan as the Chief Financial Officer and Head of the Investor Relations Department, effective from May 6.

👉 Lupin, the global pharmaceutical company, reported a consolidated net profit of Rs 359.4 crore for Q4 FY24, marking a 52.3 percent increase from the same period last fiscal. EBITDA surged by 72.5 percent to Rs 997 crore, with margins expanding by 700 bps to 20 percent during the quarter. Revenue from operations also rose by 12 percent year over year to Rs 4,960.8 crore. Additionally, the company received approval from the US FDA for its abbreviated new drug application for Travoprost Ophthalmic Solution USP, 0.004 percent (Ionic Buffered Solution), expanding its market reach in the US.

👉 LTIMindtree: The IT services company has received a tax demand order of Rs 155.7 crore from the Department of Goods and Service Tax, Office of the Deputy Commissioner of State Tax, Mumbai, for the year FY19.

👉 FIIs sold shares worth Rs 2,168.75 crore. DIIs pumped in Rs 781.39 crore worth of stocks on May 6.

Domestic and International Events

• The third phase of Lok Sabha elections, covering 93 seats across 11 states and Union Territories, marks the midway point of the general election, with over 280 constituencies already voted. Tensions between the BJP-led NDA and opposition bloc INDIA escalated over issues such as reservation and allegations against suspended JD(S) leader Prajwal Revanna. This phase is pivotal for the BJP, particularly in Gujarat, where it aims for a clean sweep. Approximately 1,300 candidates, including around 120 women, are contesting, with notable figures like Union ministers Amit Shah, Jyotiraditya Scindia, and Mansukh Mandaviya in the fray.

• Japanese service sector activity grew at the fastest pace in eight months in April, a private survey showed. The final au Jibun Bank Service purchasing managers’ index (PMI) rose to 54.3 last month, the highest level since August 2023, and up slightly from 54.1 in March.

• Reuters reported that Richmond Fed President Thomas Barkin stated the current interest rate should sufficiently temper the economy to bring inflation back to the central bank’s 2% target, noting that the robust job market allows officials to be patient. Barkin, a voting member on interest rate policy this year, emphasized that the fluctuating inflation data supports the Fed’s cautious approach to interest rates. Federal Reserve Bank of New York President John Williams mentioned that although rate cuts might occur, monetary policy is presently in a favourable position.

• According to Reuters, crude oil prices increased following Israel’s strike on Rafah in Gaza as ceasefire negotiations with Hamas remained unresolved. Brent crude futures climbed 0.46% to $83.71 per barrel, while US West Texas Intermediate (WTI) crude futures rose 0.59% to $78.94 a barrel.

EMERGING	LATEST	% 1D
Hang Seng	18,578	0.6 %
Shanghai Composite	3,141	1.2 %

DEVELOPED	LATEST	% 1D
Dow Jones	38,852	0.5 %
DAX	18,175	1.0 %
FTSE 100	8,213	0.5 %
Nikkei	38,236	(0.1) %
Straits Times	3,303	0.3 %