Oil India Ltd Q4 results - Dividend

Oil India final dividend
by Nikita Bhoota 22/06/2021

Oil India Ltd reported 9.09% higher consolidated net revenues for the Mar-21 quarter at Rs3,909.61cr. On a sequential basis, net sales revenues were up 56.56% compared to total revenues in the Dec-20 quarter at Rs2,497.24cr. Full-year revenues for FY21 were -22.6% lower at Rs1,222cr.

Net profits in the Mar-21 turned in lower at Rs847.56cr but this was purely on account of tax credits in the sequential and the YOY quarter. In fact, in the Mar-20 quarter and the Dec-20 quarter, Oil India had made a loss before tax. However, it had a tax credit of Rs1,418cr in the Mar-20 quarter and a tax credit of Rs1,288cr in the Dec-20 quarter.

If tax credits impact is excluded, the profits actually turned around to PBT from loss in Mar-20 and Dec-20 quarters. Net margins at 21.68% in the Mar-21 quarter were lower on a comparative basis.

Average crude oil price realization in 2020-21 was USD 43.98 per barrel as compared to USD 60.75 during 2019-20, a 27.61 percent decline resulting from demand disruption caused by COVID.

Also, average natural gas price realization during 2020-21 decreased by USD 1.37 to USD 2.09 per million British thermal units.

Crude oil production for 2020-21 at 2.964 million tonnes was 5.42 percent lower than the 3.134 million tonne output during 2019-20.

Natural gas output too was 5.68 percent lower at 2642 million standard cubic meters in 2020-21.

OIL said its board recommended a final dividend of Rs 1.50 per share for 2020-21. The company had earlier paid an interim dividend of Rs 3.50 per share in February.

The company has acquired an additional 54.16% ownership interest in Numaligarh Refinery Ltd (NRL) on March 26, 2021, for total cash consideration of Rs 8,676 crore increasing the equity stake in NRL to 80.16 percent, including 10.53% shares held on behalf of the Government of Assam. Thus, NRL is now a subsidiary of the company.

Disclaimer: The above report is compiled from information available on the public platforms. These are not buy or sell recommendations.

About 5paisa:- 5paisa is an online discount stock broker that is a member of NSE, BSE, MCX and MCX-SX. Since its inception in 2016, 5paisa has always promoted the idea of self-investment and has ensured that 100% operations are executed digitally with minimal to no human interventions. 

Our all-in-one Demat account makes investment hassle free for everyone, be it an individual newly venturing into the investment market or a pro investor. Headquartered in Mumbai, 5paisa.com - a subsidiary of IIFL Holdings Ltd (formerly India Infoline Limited), is the first Indian public listed fintech company.

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Stocks that touch 52 weeks high

stocks at 52 weeks high
by Nikita Bhoota 22/06/2021

Indian Overseas Bank (IOB) and Central Bank of India (CBI) shares jumped 18% and 16%, respectively, in early trade on Tuesday amid reports that the government has shortlisted these banks for privatisation. Indian Overseas Bank touched a 52-week high of ₹27.95 and Central Bank of India touched a 52-week high of ₹28.30 on BSE. 

As per the media reports, Central Bank of India and Indian Overseas Bank might see 51 percent sale in the first phase of disinvestment. The government may amend the Banking Regulations Act and Banking Law Act during Parliament's Monsoon session to privatise the two state-run banks. The move comes after Union finance minister Nirmala Sitharaman announced during her Budget 2021 speech in February that two public sector banks (PSBs) would be privatized in 2021-22.

The weak financial metrics of lenders like CBI and IOB could lead to unexpected hurdles in the government's plan to privatise the lenders as per the market experts.

Both the IOB and CBI are currently under the Prompt Corrective Action (PCA) framework imposed by the Reserve Bank of India (RBI). Under the PCA framework, the central bank imposes certain business restrictions on lenders with weak financial metrics.

The Centre has set an ambitious divestment target of Rs 1.75 lakh crore for FY22.

At 11:50 am, Indian Overseas Bank was quoting at Rs 25.65, up Rs 2.05, or 8.69 % and Central Bank of India was quoting at Rs 26.00, up Rs 1.70, or 7.00% up on the BSE.

Disclaimer: The above report is compiled from information available on the public platforms. These are not buy or sell recommendations.
About 5paisa:- 5paisa is an online discount stock broker that is a member of NSE, BSE, MCX and MCX-SX. Since its inception in 2016, 5paisa has always promoted the idea of self-investment and has ensured that 100% operations are executed digitally with minimal to no human interventions. 

Our all-in-one Demat account makes investment hassle free for everyone, be it an individual newly venturing into the investment market or a pro investor. Headquartered in Mumbai, 5paisa.com - a subsidiary of IIFL Holdings Ltd (formerly India Infoline Limited), is the first Indian public listed fintech company.

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India Pesticides Limited IPO - Information Note

India Pesticides IPO
IPO
by Nikita Bhoota 23/06/2021

India Pesticides limited IPO Details

Issue Opens - June 23, 2021

Issue Closes - June 25, 2021

Price Band -  ₹ 290 - 296

Face Value -  ₹1

Issue Size - ~₹800 cr

Bid Lot - 50 Equity Shares

Issue Type - 100% Book building

Company Background

India Pesticides Limited is one of the fastest growing agro-chemicals company in terms of volume of Technicals manufactured. The company is the sole Indian manufacturer of five Technicals and among the leading manufacturers globally for Captan, Folpet and Thiocarbamate Herbicide in terms of production capacity. They have diversified into manufacturing herbicide and fungicide Technicals and active pharmaceutical ingredients. The company also manufactures herbicide, insecticide and fungicide formulations. Technicals are exported to over 25 countries including Australia and other countries in North and South America, Europe, Asia and Africa. The company’s formulations products are primarily sold domestically through their extensive network of dealers and distributors.

Object of the Offer

The IPO offer comprises of a fresh issue and an offer for sale. Out of the fresh Issue of INR 100cr, INR 80cr is proposed to be utilized for working capital requirement of the company and the balance INR 20cr is to be used for general corporate purposes. The balance i.e. INR 700cr of the issue would be through offer for sale by the shareholders and proceeds would go to such selling shareholders.

Financials of India Pesticides Limited

Particulars (Rs million)

FY19

FY20

9MFY21

Revenue from Operations

3,406.88

4,796.27

6,489.54

EBITDA

706.34

1036.56

1894.91

EBITDA Margin (%)

20.73

21.61

29.20

PAT

438.71

705.85

1348.89

PAT Margin (%)

12.68

14.41

20.58

EPS

3.94

6.35

12.07

ROCE (%)

32.33

35.82

45.18

ROE (%)

23.46

27.48

34.63

Net Debt to Equity (x)

0.09

0.06

0.02


Company Strengths

Strong R&D and Product Development CapabilitiesCompetitive Strengths:

India Pesticides Limited has substantial experience in undertaking R&D activities as part of their manufacturing operations. Their R&D places significant emphasis on identification of appropriate complex Technicals that are suitable for commercialization, improving their production processes and the quality of their present products, and manufacturing new off-patent products. Their R&D plays a big role in identifying products that give higher margin and require specialized manufacturing and handling capabilities.

Long-term relationship with key customers

India Pesticides Limited has developed strong and long-term relationships with various multinational corporations that has helped it expand its product offerings and geographic reach for its Technicals business. Several of the company’s customers have been associated with the Company for over 10 years. Company’s major customers include multinational corporations, and hence, 56.71% of its revenue was generated from exports.

Diversified portfolio of niche and quality specialized products

The company has diversified its product portfolio over the years and has grown into a multi-product manufacturer of Formulations, herbicide and fungicide Technicals as well as APIs. The company is the sole Indian manufacturer and among top five globally for several Technicals including, Thiocarbamate herbicide and Folpet. They have obtained registrations from the CIBRC for 22 agro-chemical Technicals and 125 Formulations for sale in India and 27 agro-chemical Technicals and 34 Formulations for export. They also have a license to manufacture from the Department of Agriculture, Uttar Pradesh for 49 agro-chemical Technicals and 158 Formulations.

Key Risk Factor:

  • The top 10 customers constitute a significant portion of the company’s revenue and represent 56.83% of the revenue generated. The loss of one or more such customers could adversely affect business.
  • Increasing use of alternative pest management and crop protection measures such as bio technology products, pest resistant seeds or genetically modified crops may reduce demand for the company’s products and adversely affect business.
  • The availability of counterfeit products passed off by others as their products, could adversely affect the company’s reputation, goodwill and results of operations..

* For complete list of risk factors kindly refer to the Red Herring Prospectus.

See Detail video of India Pesticides Limited IPO :

About 5paisa:- 5paisa is an online discount stock broker that is a member of NSE, BSE, MCX and MCX-SX. Since its inception in 2016, 5paisa has always promoted the idea of self-investment and has ensured that 100% operations are executed digitally with minimal to no human interventions. 

Our all-in-one Demat account makes investment hassle free for everyone, be it an individual newly venturing into the investment market or a pro investor. Headquartered in Mumbai, 5paisa.com - a subsidiary of IIFL Holdings Ltd (formerly India Infoline Limited), is the first Indian public listed fintech company.

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NMDC Share Q4 Results - Latest News

NMDC q4 numbers
by Nikita Bhoota 23/06/2021

State-owned NMDC Ltd recorded a net profit of Rs2,838cr, up 708% for the fourth quarter as against Rs351cr for the corresponding quarter.

The company’s turnover for FY2020-21 is Rs15,370cr as against Rs11,699cr during FY2019-20, registering a growth of 31%.

The company achieved a production of 12.31 million tonnes (MT) of iron ore during the Q4 quarter as against 9.47 MT, up 30% growth, while realising a 29% growth in sales of iron ore 11.09 MT (8.62 MT).

NMDC produced 34.15 million tonnes (up 8%) over 31.49 MT and sold 33.25 million tonnes of iron ore (up 6%) over 31.51 MT during the FY 2021 and FY 2020.

Sumit Deb, CMD, NMDC Ltd said, “this has been an excellent year for the iron and steel sector resulting in these impressive results by Team NMDC, in a year that has been challenging for the economy for more than one reason.”

"All forecasts suggest the global rally in the sector will continue in FY2022, giving us confidence to achieve our targets for FY2022,” Mr. Deb added.

The stock is currently trading at Rs181, down by Rs4.4 or 2.37% from its previous closing of Rs185.40 on the BSE. The scrip opened at Rs189 and has touched a high and low of Rs189.15 and Rs180.35 respectively.

Disclaimer: The above report is compiled from information available on public platforms. These are not buy or sell recommendations.

Source: This content is originally posted on indiainfoline.com
 

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Is Government Planning to exit IDBI Bank

IDBI disinvestment
by Nikita Bhoota 23/06/2021

The department of investment and public asset management (DIPAM) in the finance ministry on Tuesday floated a Request For Proposal (RFP), inviting transaction and legal advisers for strategic disinvestment of IDBI Bank. Once these advisers are appointed, the department would promptly invite expressions of interest (EoIs) for purchase of the stakes on offer and this would likely be by September, as per the media reports. 

How much stake will Government Exit?
As per the plan, the government will exit the bank either by divesting its entire 45.48% stake worth about Rs 19,000 crore at the current market price or a minimum of 26% stake required to transfer management control and promoter Life Insurance Corporation will offer to sell a portion of its 49.24% stake with an intent to surrender management control.

The government diluted its stake in IDBI Bank in January 2019 in favour of LIC, which then became the promoter in the bank with 51% stake. Under a special dispensation, the Insurance Regulatory and Development Authority has allowed LIC to hold 51%, against the norm of 15%. The insurer will, however, have to cut its stake to 15% in due course.

Financial Performance FY21
After a gap of 5 years, the bank was back in the race with a net profit of Rs 1,359 crore for FY21. Following improvement in asset quality, the bank exited the prompt corrective action (PCA) framework on March 10. It can resume corporate lending which was stopped after it came under PCA.

Stock Performance:
IDBI Bank share price has risen 44% to Rs 38.60 as of June 22, 2021 on the BSE, compared lowest closing price in January 2021.

Government Disinvestment Target:
Of the Rs 1.75-lakh-crore disinvestment target for FY22, the government has budgeted Rs 1 lakh crore from disinvestment of government stake in public sector financial institutions and banks such as LIC (IPO) and IDBI Bank strategic sale.

Disclaimer: The above report is compiled from information available on the public platforms. These are not buy or sell recommendations.

About 5paisa:- 5paisa is an online discount stock broker that is a member of NSE, BSE, MCX and MCX-SX. Since its inception in 2016, 5paisa has always promoted the idea of self-investment and has ensured that 100% operations are executed digitally with minimal to no human interventions.

Our all-in-one Demat account makes investment hassle free for everyone, be it an individual newly venturing into the investment market or a pro investor. Headquartered in Mumbai, 5paisa.com - a subsidiary of IIFL Holdings Ltd (formerly India Infoline Limited), is the first Indian public listed fintech company.

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Bharat Electronics Share Q4 Results - Dividend

BEL results
by Nikita Bhoota 23/06/2021

The state-owned aerospace and defence electronics company reported a net profit of Rs 1,352.38 crore in the quarter ended March 2021, up 30.73 percent year-on-year (YoY) compared to Q4 FY20.

The company's sales rose 18 percent to Rs 6,757.05 crore in the quarter ended March 2021 against Rs 5,725.49 crore during the previous quarter ended March 2020.

In FY21, its net profit was up 15.14% to Rs 2065.42 versus Rs 1793.83 crore in FY20, while sales jumped 9.6% to Rs 13818.16 crore from Rs 12607.76 crore.

The company said it has a healthy order book position of Rs 53,434 crore as on April 1, 2021.

The company has recommended a final dividend of Rs 1.20 per equity share (120%) of Rs 1 each for the FY 2020-21.

Shares of Bharat Electronics (BEL) hit over three-year high of Rs 166.45 after rallying 10% on the BSE in intra-day trade on Wednesday after the company reported a strong set of numbers for the quarter ended March 2021 (Q4FY21).

About Bharat Electronics:

BEL, 51% owned by the Government of India, is primarily a supplier of electronic equipment to Indian defence services. It supplies electronic products such as radars, sonar, communication equipment, electronic warfare equipment, and navigation equipment to the Indian defence forces and the civilian sector. The company has nine manufacturing units in India and two central research laboratories − in Bangalore and Ghaziabad.  

Disclaimer: The above report is compiled from information available on public platforms. These are not buy or sell recommendations.

About 5paisa:- 5paisa is an online discount stock broker that is a member of NSE, BSE, MCX and MCX-SX. Since its inception in 2016, 5paisa has always promoted the idea of self-investment and has ensured that 100% of operations are executed digitally with minimal to no human interventions. 

Our all-in-one Demat account makes investment hassle free for everyone, be it an individual newly venturing into the investment market or a pro investor. Headquartered in Mumbai, 5paisa.com - a subsidiary of IIFL Holdings Ltd (formerly India Infoline Limited), is the first Indian public listed fintech company.