InterGlobe Aviation-run IndiGo airline on Thursday reported a consolidated net loss of Rs 620.1 crore for the October-December quarter of FY21 (Q3FY21), as against a net profit of Rs 490.5 crore in the year-ago period. The airline, however, narrowed its loss from Rs 1,194.8 crore incurred in the September quarter of FY21. The high level of consumer confidence in our product has indeed been heartening and we are glad to be making graduated and measured steps to a full recovery. We look forward to a gradual opening up of international scheduled flights during the next few months because increased capacity and aircraft utilization are so very critical for our return to profitability,” said Ronojoy Dutta, chief executive officer of the airline.
A troika of festive travel, low fuel costs, and rupee appreciation may help IndiGo and SpiceJet to narrow their losses during the December quarter of FY21, say analysts. The recovery in earnings, however, may be capped by weak air fares, and stricter travel restrictions amid a new strain in coronavirus (Covid-19). While most analysts remain divided on the quantum of loss incurred by domestic airlines during the quarter, they unanimously agree that the Indian aviation sector is on a slow but steady path to recovery. “Average daily domestic passengers increased by almost 120 per cent from Q2FY21 to Q3FY21, partly due to seasonality factor. Yet, average daily passengers in December recovered to only 55 per cent versus last year despite the low fare environment,” noted analysts at global brokerage HSBC.
Broker s call: HDFC AMC (Buy)
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CMP: ₹3100.55
HDFC AMC Q3-FY21 earnings were a beat on PAT mainly led by other income. Revenue was in line and operating expenses were slightly higher leading to a PAT of ₹370 crore (our estimate: ₹340 crore). Opex efficiency remains a focus and the company maintains its target cost savings of ₹35-40 crore in FY21E of which ₹25 crore has been achieved in 9M-FY21.
Revenue at approximately ₹482 crore (was largely in-line) while QAAUM came in at ₹3,89,500 crore was mainly as expected. SIP for Dec-20 slightly up-ticked to ₹910 crore vs ₹900 crore q-o-q. Other income at ₹113.10 crore beats estimates of ₹82 crore.
Weekly Dossier | Pramod Gubbi, Nischal Maheshwari, Nilesh Shah & others on market trends
The S&P BSE Sensex fell 0.3 percent, while the Nifty50 was down by 0.4 percent in the week gone by but a bigger cut was seen in the small and midcaps.
Representative image | Source: Pixabay
The S&P BSE Sensex climbed mount 50k and the Nifty50 breached 14,750 in the week gone by but profit-taking towards the end pushed the indices in the red.
The S&P BSE Sensex fell 0.3 percent and the Nifty50 0.4 percent but it were the small and midcap that took a hard knock. The BSE midcap index fell 0.7 percent and the smallcap index was down 1.3 percent for the week ended January 22.
On a sequential basis, a couple of things are moving in its favour. The retail business will continue to move towards normalcy post Covid. Some part of that journey started in Q2 itself but I think that momentum will continue. My sense is that EBIT or margins or earnings from the retail segment will go up maybe 20% on a quarter-on-quarter basis. The other significant aspect is that the petrochemical business seems to be on a much stronger track than it has been over the last six to nine months.
Reliance with its sourcing and offtake flexibility has managed to keep volumes at a decent level. Margins have suffered and what is happening now is that the domestic market is coming back and as a result, margins in the domestic market for Reliance’s petchem business are definitely 10-15% higher than what they would be if they were to export a larger volume, which has happened in the last couple of quarters. So even petchem margins probably would be 12-13% higher Q-o-Q. Jio probably is mo