Tata Motors Q3 consolidated net profit jumps 2x to Rs 7025 crore, revenue up 25%: Daily Market Update - 5 Feb 2024 | Globe Capital Market LTD.
Tata Motors Q3 consolidated net profit jumps 2x to Rs 7025 crore, revenue up 25%: Daily Market Update – 5 Feb 2024

Tata Motors reported a 137% rise in net profit for the quarter ended December 2023 at Rs 7,025 crore (attributable to shareholders) as against a net profit of Rs 2,958 crore in the year-ago quarter. Tata Motors' total revenue rose 25% to Rs 1,10,577 crore in Q3FY24 as against Rs 88,488 crore in the corresponding period of the preceding fiscal. Profit before tax climbed to Rs 7,493 crore in the third quarter of this fiscal as compared to Rs 3,202 crore in the corresponding period in the previous fiscal. JLR sales rose 27% in the October to December period, the group said earlier this month. Revenue from UK arm Jaguar Land Rover climbed to Rs 76,665 crore in the last quarter against Rs 58,863 crore in the December 2022 quarter.

Overview and Outlook

Global Stock Market Today

  • US equity markets settled higher in range 0.35% to 1.72%.
  • Barring FTSE, other European equity markets ended on a flat to positive note.
  • Asian markets are trading on a mix note.
  • GIFT Nifty is down by 50 points, Nifty futures are likely to open around 21900 levels (as on 8:30AM).


News highlights from across the globe

  • Markets in Australia were trading in red as investors awaited for the policy decision from the Reserve Bank of Australia on Tuesday.
  • The U.S. stock market extended the week’s gains amid a rally in big tech and a solid jobs report bolstered the outlook for corporate America.
  • Brent crude was trading 0.43% up at $77.66 a barrel.


Important news updates from the domestic front

  • Tata Motors Q3 Earnings FY24 (Consolidated, YoY) – Revenue up 25% to Rs 1.11 lakh crore vs Rs 88,489 crore. Ebitda is up 59% to Rs 15,333 crore vs Rs 9,643 crore. Margin at 13.86% vs 10.89%. Net profit up 138% to Rs 7,025 crore vs Rs 3,043 crore.
  • Bank Of India Q3 Earnings (Standalone, YoY) – NII down 2% at Rs 5,463.5 crore vs Rs 5,595 crore. Net profit up 62.4% at Rs 1,869.5 crore vs Rs 1,151 crore. Gross NPA at 5.35% vs 5.84% (QoQ). Net NPA at 1.41% vs 1.54% (QoQ).
  • InterGlobe Aviation Q3 Earnings FY24 (Consolidated, YoY) – Revenue up 30.3% at Rs 19,452 crore vs Rs 14,933 crore. Ebitdar up 40.4% at Rs 5,499.2 crore vs Rs 3,774.2 crore. Margin at 28% vs 25%. Net profit at Rs 2,998 crore vs Rs 1,422.6 crore.
  • Bajaj Finance will acquire a 7% stake on a fully diluted basis in RMBS Development Co for an undisclosed amount.
  • Aurobindo Pharma: The USFDA inspected the company’s unit in Telangana and closed with nine inspections. The company temporarily stopped manufacturing on certain lines.
  • India Cements: The Enforcement Directorate searched the company’s Chennai office and was looking into certain forex transactions done by associate company India Cements Capital.
  • H.G. Infra Engineering received a letter of acceptance from the Central Railway for a Rs 716 crore construction project.
  • Mahindra and Mahindra Financial Services reported disbursement at Rs 4,440 crore, up 11% YoY, and collection efficiency at 95%.
  • Torrent Power will set up 150 MW of solar power projects at four of Shapoorji’s desalination plants.


Nifty Overview & Outlook

The benchmark Nifty index hits new all-time high but failed to hold at higher levels and witnessed selling pressure from the days high to settle near day’s low at 21853 levels after adding over 156 points to its previous closing values.

Broader markets outperformed the benchmark as Mid and Small cap index gained nearly 1% each against 0.7% advances of frontline index.

Majority of sectoral indices, tracked at NSE settled higher. Amongst them, Nifty Oil & Gas index was the top performer, up over 3.5%, followed by Nifty IT, Metal and PSU Bank index that settled higher by 2% each.

Going ahead, we expect Nifty index to trade with sideways to positive bias till it is trading above 21600 levels on closing basis and suggest traders to maintain buy on dip trading strategy till it is trading above the said levels.


Derivatives Overview & Outlook

Last Friday, long buildup was seen in Nifty futures with increase in open interest by 5.1%, whereas long unwinding was seen in Banknifty and Finnifty futures with decrease in open interest by 5.3% and 5.2% respectively.

On the sectoral front, long buildup was observed in Capital Goods, Pharma, Oil & Gas, Automobile and Metals stocks, whereas short covering was seen in Media and Power stocks.

On options front, call writing was seen at multiple strikes and maximum positions are at 21000 PE closely followed by 21600 PE and 23000 CE closely followed by 22200 CE.


Institutional Trading Activity

Last week, FIIs sold stocks worth Rs 2069 Cr in the cash segment, bought stocks futures and index future worth Rs 16640 Cr and Rs. 3139 Cr respectively. DIIs were net buyer in the cash segment to the tune of Rs 10103 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 21800-21680; Supports 22040-22160

Banknifty – Resistances 45950-45600; Supports 46700-47150

Finnifty – Resistances 20800-20940; Supports 20410-20310






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