HDFC Bank Shares Rise, MRPL Down 7% Following Q1 Earnings Reports

On July 21, 2023, several major companies reported their financial results for the April-June quarter, causing notable movements in their stock prices. Among the highlights, shares of HDFC Bank increased by 1.1% following a strong quarterly performance, while Mangalore Refinery and Petrochemicals Limited (MRPL) witnessed a significant decline of over 7% after posting a net loss.

Key Earnings Reports Impact Market Activity

Several prominent companies, including UltraTech Cement, IDBI Bank, PNB Housing Finance, UCO Bank, Latent View Analytics, and Havells India, are set to report their quarterly results throughout the day. The results from Reliance Industries, HDFC Bank, and ICICI Bank are particularly under scrutiny after their announcements.

HDFC Bank’s profitability was bolstered by a notable increase in other income, leading analysts to maintain a positive outlook. None of the 49 analysts covering HDFC Bank have issued a “sell” recommendation following its Q1 results released on July 19. In contrast, ICICI Bank also reported profits that exceeded expectations as per the CNBC-TV18 poll, further contributing to investor interest.

Stock Movements Reflect Financial Health

The performance of AU Small Finance Bank was less favorable, with shares dropping 7% due to a reported decline in asset quality. The bank’s gross non-performing assets (GNPA) increased to ₹2,751.3 crore, resulting in a GNPA ratio of 2.47%. Additionally, net non-performing assets (NPAs) stood at ₹971 crore.

MRPL’s financial results revealed a net loss of ₹270.7 crore for the June quarter, a stark contrast to the net profit of ₹73.2 crore reported during the same period last year. This disappointing performance led to a decline in its shares, reflecting investor concerns.

Meanwhile, analysts remain optimistic about Reliance Industries, with 92% of the 37 analysts covering the stock continuing to recommend a “buy” after its June quarter results, which were disclosed post-market hours on July 18.

As the day progresses, attention will shift to the earnings reports from UltraTech and other significant players like Zomato, with market watchers keenly anticipating how these results will influence stock movements. For ongoing updates, CNBC-TV18’s live blog provides real-time information on the evolving financial landscape.