In the top news we’re tracking back home this morning, the Petroleum and Natural Gas Regulatory Board of India has proposed a change in the way city gas distribution companies operate, which could remove the exclusivity clause for existing operators. There are 73 networks in the country, through which gas is distributed and the regulator has said that these will be common carriers. And this means that any entity will be able to use this infrastructure to provide CNG services. It raises competition and could put pressure on pricing. You should watch out for stocks like Gujarat Gas Ltd., Indraprastha Gas Ltd., Mahanagar Gas Ltd., Adani Total Gas Ltd., and IRM Energy Ltd. in trade today.
We’re also tracking earnings at the start. ITC Ltd.’s operating margin contracted to the lowest in nearly three years in the second quarter, missing analysts estimates by nearly 4 percentage points.
The company’s margin contracted by 470 basis points to 32.8%, according to its stock exchange notification on Thursday. That was the lowest since the second quarter of the financial year-ended March 30, 2022. The company attributed the pressures to subdued demand conditions, unusually heavy rains in parts of the country, high food inflation, and sharp escalation in certain input costs.
Its net profit rose 3% on a yearly basis in the July-September quarter to Rs 5,078.34 crore. The analysts tracked by Bloomberg had pegged the bottom line at Rs 5,154 crore. The topline, meanwhile, rose more than estimated, by 16%, to Rs 19,327.7 crore.
Of course, there are several other companies that have posted their results and that will likely react—IndusInd Bank Ltd., IEX Ltd., and NTPC Ltd.
In earnings today, Coal India, Bank of Baroda, Bharat Petroleum Corp. and Hindustan Petroleum Corp. will post their results for the second quarter on Friday.
