Daily Research Report || May. 15, 2023

India's exports of goods to Asia and some parts of Africa decreased in FY23, which slowed the expansion of its overall exports. However, strong development in exports was maintained with increasing shipments to the European Union and the US, despite the global economic crisis and increased geopolitical threats. The decline in shipments to North East Asia, which includes China (-27.9%), Hong Kong (-9.9%), South Korea (-17.7%), and Japan (-11.5%) slowed India's total export growth. While China's zero-Covid policy largely decreased demand for Indian commodities in FY23, Japan and South Korea drastically curtailed their imports of petroleum products and diamonds from India, which had previously obtained these goods from sanction-hit Russia.

Due to decreased likelihood of more rate increases by the US Federal Reserve, a positive outlook for the domestic economy, and a solid earnings season, foreign investors showed a significant purchasing interest in Indian stocks in May and spent more than Rs 23,152 crore in the first week. As a result, statistics available with the depositories revealed that Foreign Portfolio Investors (FPIs) had turned into net purchasers of stocks in 2023 by bringing in Rs 8,572 crore. 

If India uses 10% of its 2,600 billion cubic metres of coal bed methane reserves, it may reduce its energy import cost by USD 2 billion. This is significant since there are plans to substantially raise India's coal output, which reached a record high during the previous fiscal year. The nation might soon save over USD 2 billion on import costs because to the industry's concerted efforts to use coal bed methane (CBM). India is thought to have a reserve of 2600 billion cubic metres of coal bed methane.

Due to a high base and lessening pricing pressures across all categories, India's retail inflation rate in April decreased to an 18-month low, providing the central bank flexibility to continue a lengthy rate pause. On the other hand, factory output growth abruptly slowed down to a five-month low in March, underscoring worries about poor consumer demand. Inflation measured by the Consumer Price Index (CPI) was 4.70% in April compared to 5.66% the month before. For the second consecutive month in 2023, the headline inflation rate was under the Reserve Bank of India's (RBI) upper tolerance range due to moderation in the prices of food, gasoline, apparel, and services.

In comparison to the same time last year, when revenue was Rs 8,606.09 crore, the DMart network of retail stores recorded a 21 percent growth in revenue at Rs 10,337 crore. Additionally, it saw an 8% increase in net profit, from Rs 466.35 crore in the same time last year to Rs 505.21 crore this year. However, revenue fell from the quarter that ended in December, which showed Rs 11,304.58 crore in sales, while net profit fell from Rs 641.07 crore in the quarter that concluded in December.

DLF fewer expenditures contributed to a 40% rise in its consolidated net profit, which came in at Rs. 569.60 crore for the quarter ending March 2023. Its net profit during the prior fiscal year was Rs 405.54 crore. In the fourth quarter of current fiscal year, total income decreased to Rs 1,575.70 crore from Rs 1,652.13 crore in the corresponding quarter of the previous year.  From Rs 1,500.32 crore in 2021–2022 to Rs 2,033.95 crore in the most recent fiscal year, DLF's net profit climbed by 36%.

Price increases and robust demand for commercial trucks and vehicles from Tata Motors Ltd's luxury Jaguar Land Rover (JLR) stable helped the company achieve its second consecutive quarterly profit.  In comparison to the same quarter a year prior, the firm reported a net profit of Rs 5,408 crore during the January to March quarter. Additionally, it declared a dividend of Rs 2 per share, the first in almost seven years.

The March quarter's net profit for Hindustan Petroleum Corporation Ltd (HPCL) increased by 79%, thanks to improved refining margins and recovering gasoline marketing profits. In comparison to the same time a year prior, the combined net profit for January through March was Rs 3,608.32 crore as opposed to Rs 2,018.45 crore. However, the business reported a loss of Rs 6,980.23 crore for the entire fiscal year 2022–23 (April 2022–March 2023) after suffering significant losses in the first half due to retaining petrol, diesel, and LPG prices despite an increase in cost. It keeps its prices the same, but thanks to a drop in global oil costs, it is now generating significant margins.