Q3 Results of UBL, Bajaj Finance Ltd & Tejas Networks Ltd.
1. United Breweries Limited -
Stock Price - 1,178.85 INR [+2.95 (0.25%)]
United Breweries, the country’s biggest brewer that sells Kingfisher, is one of the key players of the global beer processing market. UBL has appointed Anand Vijay Jha as senior vice president and chief of corporate affairs. Jha will be responsible for heading public policy, government relations, corporate communications, philanthropy, CSR and UB’s ESG (environmental, social and governance) initiatives. Last August, UB had appointed Rishi Pardal as the company’s new managing director.
United Breweries Limited Q3 FY2021
Q3 saw a continued recovery in demand on the back of trade restrictions gradually being lifted with volume down for the quarter 15%, and as a reminder, Q1 volumes were down 77% while Q2 volumes were -48%. The company posted a strong underlying EBITDA margin improvement to 15.6%; this is excluding non-recurring items versus a 15.4% margin in the prior year. This is driven by an improvement in a gross profit margin of 119 basis points and cost control. Q2 continued to be impacted by COVID restrictions, but in Q3 for UBL saw further relaxations of trade restrictions and better recovery. For the end of December, Company has seen in various states a number of trade restrictions being lifted that were still in place.
"The company continues to be optimistic about the long-term growth drivers of the industry," said Berend Odink, Chief Financial Officer, United Breweries Ltd.
Also, Invesco Caterpillar's midcap portfolio has United Breweries as the top picks.
2. Bajaj Finance Limited
Stock price: BAJAJFINSV (NSE) ₹10,326.00 +126.40 (+1.24%)
Bajaj Finserv Limited, a part of Bajaj Holdings & Investments Limited, is an Indian financial services company focused on lending, asset management, wealth management, and insurance.
Bajaj Finance Ltd. saw its net profit fall in the quarter ended December, as income dropped and stressed assets inched higher. Net profit of the consumer finance-focused lender fell 29% year-on-year to Rs 1,146 crore in the October-December period, according to an exchange filing. That compares with the Rs 1,181-crore consensus estimate of analysts tracked by Bloomberg.
The company’s total revenue dropped 5% over the year-earlier to Rs 6,658 crore. Analysts had pegged the top line at Rs 4,306 crore.
Consolidated assets under management rose to Rs 1.43 lakh crore at the end of the October-December quarter from Rs 1.37 lakh crore in the preceding three months. Bajaj Finance owns a 100% stake in Bajaj Housing Finance Ltd., which is considered in the consolidated assets under management. A year ago, in October-December 2019, the assets under management were marginally higher at Rs 1.45 lakh crore.
“AUM growth is back across all businesses except auto finance. AUM growth was granular across all lines,” the company said in an analyst presentation. It also said that most business segments had started disbursing 85-100% of last year’s volumes.
3. Tejas Networks Limited
Stock price: TEJASNET (NSE) ₹197.05 -4.00 (-1.99%)
Tejas Networks designs, develops and sells high-performance and cost-competitive networking products to telecommunications service providers, internet service providers, utility companies, defence companies and government entities in over 70 countries.
Tejas Networks rose 3.68% to Rs 142.25 after the company reported a consolidated net profit of Rs 9.23 crore in Q3 FY21 as against a net loss of Rs 112.06 crore in Q3 FY20.
Net sales jumped 55.6% year-on-year (YoY) to Rs 134.88 crore during the quarter. The company posted a pre-tax loss of Rs 9.23 crore in Q3 December 2020 as compared to a pre-tax loss of Rs 14.78 crore in Q3 December 2019.
Sanjay Nayal, managing director and CEO of Tejas Networks, said, "We continued to build on our momentum of revenue as well as profitability growth during 03. We also had strong order inflows and new customer wins, resulting in an order book of Rs 672 crore as of 31 December 2020. Our international business for the first nine months saw YoY revenue growth of 269%, led by customers in Africa, the Mid-east, and South-East Asia. With an increased demand for high-speed home broadband connections on optical fiber and the need for telecom operators to upgrade their backbone network capacity, we see robust demand for our equipment globally."
ME Venkatesh Gadiyar, CFO, said, "Our quarterly financial performance continues to improve, as we generated cash of Rs 55 crore from operations and also reduced our working capital by Rs 43 crore during 03. Our cash and cash equivalents, including investment in liquid mutual funds and deposits with financial institutions, improved to Rs 335 crore as of 31 December 2020, and we continue to be a debt-free company."