Tag: Asian paints

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RBI Grants Scheduled Bank Status to Paytm Payments Bank – Top Indian Market News

RBI grants scheduled bank status to Paytm Payments Bank

Paytm Payments Bank Ltd (PPBL), a group company of Paytm, has received the Reserve Bank of India’s approval to function as a scheduled payments bank. This will help PPBL expand its business opportunities. As a scheduled payments bank, PPBL can participate in Request for Proposals (RFP) advertised by the government and large corporations, primary auctions, fixed-rate and variable rate repos, and reverse repos. It will also be eligible to be a partner in government-run financial inclusion schemes.

Read more here.

Adani Ports removes export-import ban from Afghanistan, Pakistan, and Iran

Adani Ports & Special Economic Zone Ltd has withdrawn its decision to stop handling export-import (EXIM) containerised cargo originating from Iran, Afghanistan, and Pakistan at its ports. The company had imposed a ban on containerised cargo from the three countries after 3,000 kilograms of heroin were seized from two containers at the port. The ban was removed after consultations with terminal and vessel operators, customs broker associations, and importers who had agreed to adhere to security compliance.  

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Airtel, Invest India launch innovation challenge for startups to develop solutions in 5G, IoT

Bharti Airtel Ltd and Invest India has launched the ‘Airtel India Startup Innovation Challenge’ for early-stage technology companies. The startups will be required to develop differentiated solutions in 5G such as business-to-business (B2B) and business-to-consumer (B2C) use cases and applications, innovative Internet of Things (IoT) solutions for enterprises. Invest India is the National Investment Promotion and Facilitation agency of the Indian government.

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TVS Motor partners with Grupo Q for strengthening its presence in Central America

TVS Motor Company Ltd has partnered with Grupo Q for distribution in the Nicaragua and Costa Rica markets to further expand its business in Central America. Active Motors SA (a subsidiary of Grupo Q) will support TVS Motor with dedicated sales, service, spares, and customer relationship management (CRM). As a part of the partnership, Active SA Motors will facilitate the opening of three flagship outlets and about 50 dealerships for TVS Motor in a phase-wise manner across Nicaragua and Costa Rica.

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Dr. Reddy’s Labs launches drug to treat high blood pressure, heart failure in US market

Dr. Reddy’s Laboratories Ltd has launched Valsartan tablets in the US market. The drug is used for the treatment of high blood pressure and heart failure. As per IQVIA data, the generic version of Valsartan had US sales of approx. $150 million (~Rs 1,130 crore) for the 12 months ended October 2021.

In other news, Dr. Reddy’s Labs partnered with Prestige BioPharma for exclusive rights to supply and commercialise the Singapore firm’s proposed trastuzumab biosimilar in select Latin America and Southeast Asian countries. The biosimilar can be prescribed for the treatment of HER2-positive breast cancer and metastatic gastric cancer.

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Shyam Metalics to increase iron manufacturing capacity by 20%

Shyam Metalics and Energy Ltd (SMEL) has announced a capacity expansion as outlined in its capital expenditure (capex) plans for the financial year 2021-22. The total installed capacity for sponge iron products will increase by 20%, from 1.39 million tons per annum (MTPA) to 1.67 MTPA. SMEL is a leading integrated metal producing company, which focuses on long steel products and ferro alloys.

Asian Paints refutes InGovern’s claims on related-party transactions

Asian Paints Ltd has refuted all allegations made by InGovern on related-party transactions. Corporate governance advisory firm InGovern had claimed that Paladin Paints, controlled by Asian Paints’ promoter directors, formed 7% of the value of goods purchased from promoter-led entities. The paint major stated that the reports released by InGovern are based on incorrect facts and premises. 

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Bajaj Electricals board approves review of corporate structure

The Board of Directors of Bajaj Electricals has approved a review of its corporate structure, including a move to hive off its power transmission and power distribution business verticals as an independent entity. The company would explore a full range of options and alternatives, including demerger and strategic partnerships. The objective of this move is to streamline the business structure to enhance market positions and deliver long-term growth.

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UBL challenges Rs 752 crore CCI penalty before NCLAT

United Breweries Ltd (UBL) has approached the National Company Law Appellate Tribunal (NCLAT) against the Rs 751.8 crore penalty imposed on the company by the Competition Commission of India (CCI). The fair trade regulator has imposed a fine for alleged cartelization in the sale and supply of beer.

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Equity mutual funds see inflows for ninth straight month: AMFI

Inflows into equity mutual funds jumped to the highest level in four months. As per data released by the Association of Mutual Funds in India (AMFI), net inflows into equity and equity-linked schemes more than doubled month-on-month to Rs 11,614.73 crore in November. Monthly systematic investment plan (SIP) contributions hit a fresh all-time high of Rs 11,004.94 crore last month.

Read more here.

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Asian Paints to Invest Rs 960 crore to Expand Gujarat Unit – Top Indian Market News

Asian Paints to invest Rs 960 crore to expand Gujarat unit

Asian Paints Ltd has signed a Memorandum of Understanding (MoU) with the Govt of Gujarat, commencing the proposed expansion of manufacturing capacity at its Ankleshwar unit at a total investment of about Rs 960 crore. The manufacturing capacity of paint will go up from 1.3 lakh kilolitres (KL) to 2.5 lakh KL, and resins and emulsions from 32,000 metric tonnes (MT) to 85,000 MT. The capacity expansion will be completed over the next 2-3 years.

Read more here.

Paytm Payments Bank launches transit cards for metro, bus travel

Paytm Payments Bank Ltd announced the launch of the Paytm Transit Card. The card will take care of users’ everyday needs— from travel in metro, railways, state-owned bus services, toll & parking charges to payments at offline merchant stores, online shopping, and more. The card also enables the withdrawal of money from ATMs. The first phase of the rollout is being launched in collaboration with Hyderabad Metro Rail, Ahmedabad Metro, and the Delhi Airport Express Line.

Read more here.

Man Infra to develop luxury residential project in Tardeo, Mumbai

MICL Properties LLP, a subsidiary of Man Infraconstruction Ltd, is jointly developing an ultra-luxurious residential high-rise tower at Tardeo, Mumbai. The project is expected to generate approximately Rs 3,000 crore over the next 4-5 years. This landmark project will be one of the tallest residential structures in India, with a proposed height of more than 250 meters.

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Tata Chemicals in talks to acquire battery business of UK-based Johnson Matthey: Report

According to reports, Tata Chemicals Ltd is in discussions with London-based Johnson Matthey Plc to buy the company’s battery materials business. A deal for the battery materials unit could fetch $500-700 million. The deal will help group company Tata Motors expand its range of electric vehicles (EVs) and secure a cost advantage over rival carmakers in the EV space, as none of them have in-house battery materials manufacturing ability.

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Shakti Pumps’ board approves setting up of EV subsidiary

The Board of Directors of Shakti Pumps India Ltd has approved the incorporation of a wholly-owned subsidiary to conduct business in electric vehicle (EV) motors, EV chargers, and EV controllers. Shakti Pumps is a leading manufacturer of submersible pumps for domestic, industrial, horticultural, and agricultural use.

RBI supersedes the board of Reliance Capital, to start resolution process

The Reserve Bank of India (RBI) has superseded the Board of Directors of struggling Reliance Capital Ltd. RBI has also decided to approach the National Company Law Tribunal (NCLT) to kickstart the resolution process. The central bank’s move comes after Reliance Capital defaulted on multiple repayment obligations to its creditors and due to serious corporate governance issues. The non-bank lender fell onto hard times in the aftermath of the collapse of IL&FS in September 2018.

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SBI and Capri Global Capital signs MoU to accelerate MSME lending 

State Bank of India (SBI) has entered into a co-lending arrangement with Capri Global Capital Ltd to boost lending to micro, small, and medium enterprises (MSME). This association will offer strategic and customized financing solutions to the underserved MSMEs of India in line with RBI guidelines.

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RIL denies any intent to bid for UK telecom group BT

Reliance Industries Ltd (RIL) categorically denied any intent to bid for the UK telecom group, BT (formerly British Telecom). The company dismissed a report titled `Reliance mulling bid for UK’s telco BT Group’ as “completely speculative and baseless”. Reliance’s shares, which rose as much as 3.6% earlier in the day, closed 1.2% higher at Rs 2,441.50.

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Ather Energy to set up its 2nd manufacturing facility at Hosur

Hero MotoCorp-backed Ather Energy plans to set up its second manufacturing facility, which will expand its capacity from 1.2 lakh units at present to 4 lakh units. The new facility will come up at Hosur, Tamil Nadu, to cater to the growing demand for its e-two-wheelers 450 X and 450 Plus. Apart from EV manufacturing, the new facility will also focus on lithium-ion batteries, a key focus area for Ather Energy.

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LIC gets RBI approval to increase stake in Kotak Mahindra Bank

Life Insurance Corporation (LIC) has received approval from the Reserve Bank of India (RBI) to increase its stake in Kotak Mahindra Bank to 9.99%. Currently, LIC holds a 4.96% stake in the private lender. The approval of the central bank is valid for one year.

Read more here.

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Asian Paints to Hike Prices by 4-6% From Dec – Top Indian Market News

Asian Paints to hike prices by 4-6% from December

Asian Paints Ltd has confirmed that it is taking a price hike of about 4-6% starting December 5 to offset the impact of rising input costs. The company had earlier hiked prices by 8-9% with effect from November 12. So far, it has taken a cumulative price hike of about 15-16% this year. Asian Paints said high raw material inflation will push the pace of price hikes.

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Coal India allocates 17.34MT of coal to power sector under special forward e-auction in April-Sept

Coal India Ltd (CIL) allocated a 72.1% higher quantity of coal at 17.34 million tonnes (MT) under the special forward e-auction scheme to the power sector during the April-September period. The company had allocated 10.07 MT of coal under the scheme in the year-ago period. Coal distribution through forward e-auction is aimed at providing access to coal for consumers who wish to have an assured supply over a long period to plan their operations.

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Bharti Airtel partners with open network provider Mavenir for 5G trials

Bharti Airtel has partnered with US-based Mavenir for open radio access network (O-RAN)-based 5G field trials in the 3,500 MHz and millimeter wave (mmWave) bands at Chandigarh tri-city. The alliance between the two firms includes the deployment of captive 5G standalone and non-standalone modes for both core and radio networks in Chandigarh’s urban and rural areas. It would further allow Bharti Airtel to test a vendor-neutral ecosystem.

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Zebra Technologies selects TCS to drive digital transformation

Tata Consultancy Services (TCS) has entered into a strategic transformation engagement with US-based Zebra Technologies Corp to drive its IT agile transformation. Zebra provides a portfolio of purpose-built hardware, software, services, and solutions that digitize and automate workflows for the retail, manufacturing, and logistics sectors. TCS will play a key role in the end-to-end global agile transformation of Zebra’s IT that supports its systems and applications used by 8,800 employees in 45 countries.

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Meghmani Organics to invest Rs 400 crore for white pigment plant at Dahej

Meghmani Organics Ltd will set up a manufacturing facility for White Pigment Titanium Dioxide (TiO2) in Dahej, Gujarat. The total capital expenditure (capex) allocated for the project is Rs 400 crore. The plant will have a capacity of 33,000 tonnes per annum. TiO2 has application as a bright white pigment in various industries including paint, coating, plastic, ink, dyes, paper, and cosmetics.

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Coromandel to set up sulphuric acid plant in Vizag for Rs 400 crore

Coromandel International Ltd has announced plans to set up a 1,650 metric tonnes per day (MTPA) sulphuric acid plant at its fertiliser complex in Visakhapatnam. The company will invest Rs 400 crore for this project. The plant will add another 500,000 tonnes a year of sulphuric acid production capacity to the existing 600,000 tonnes. 

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Rakesh Jhunjhunwala’s Akasa Air orders 72 Boeing 737 Max jets

Rakesh Jhunjhunwala-backed Akasa Air has signed a deal with Boeing for 72 fuel-efficient 737 MAX airplanes. The order is valued at nearly $9 billion (~Rs 67,000 crore) at list prices. The low-cost carrier plans to offer commercial flights starting in the summer of 2022 and use its new fleet of 737s to meet the growing demand across India. In October, the Ministry of Civil Aviation had given a no-objection certificate (NOC) for the operation of Akasa Air in India.

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Ashok Leyland’s EV arm to supply 300 e-buses to BMTC

Ashok Leyland’s electric vehicle (EV) arm, Switch Mobility, has received an order to supply and operate 300 electric buses for Bengaluru Metropolitan Transport Corporation (BMTC). The fleet and charging infrastructure will be supplied, operated, and maintained by Switch Mobility for a period of 12-years. The electric buses of Ashok Leyland are expected to reduce fuel consumption by around 5.5 million litres annually. 

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HCL Tech secures multi-year deal from Euroclear Group

HCL Technologies (HCL) has announced a new multi-year application deal with Belgium-based Euroclear Group to accelerate its agile transformation journey. Euroclear is the world’s largest provider of domestic and cross-border settlement and related services for bond, equity, and fund transactions. HCL Tech will work with Euroclear to explore new business models and market opportunities to create value through innovation and data monetisation.

Read more here.

Tarsons Products IPO subscribed 3.58 times on second day

The Rs 1,023.47 crore IPO of Tarsons Products Ltd was subscribed 3.58 times on the second day of bidding. Retail investors have subscribed 4.74 times against their reserved portion. Non Institutional investors (NIIs) and Qualified Institutional Buyers (QIBs) have subscribed 3.98 times and 1.30 times, respectively, against their reserved portions. 

To learn more about the IPO, click here.

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ICICI Bank Reports 30% YoY Rise in Net Profit in Q2 – Top Indian Market News

ICICI Bank Q2 Results: Net profit rises 30% YoY to Rs 5,511 crore

ICICI Bank reported a 30% YoY increase in net profit to Rs 5,511 crore for the quarter ended September (Q2 FY22). Net profit rose 19% compared to the previous quarter. Its net interest income (NII) rose 25% YoY to Rs 11,690 crore during the same period. [NII is the difference between the interest income a bank receives on loans and the interest paid to depositors]. The bank’s gross non-performing assets (GNPA) ratio stood at 4.82% in Q2, compared to 5.15% in the previous quarter. Provisions declined by 9% YoY to Rs 2,714 crore in the July-Sept quarter of FY22. 

Read more here. 

Minda Industries to hike stake in Strongsun Renewables to 28.10%

Minda Industries Ltd said the Investment Committee of its Board of Directors has approved the second round of stake purchase in Strongsun Renewables Pvt Ltd. The committee approved the acquisition of 3.07 lakh equity shares (of the face value of Rs 10 each) at Rs 80 per share of Strongsun Renewables, aggregating to Rs 2.46 crore. After completion of the transaction, Minda Industries will hold a 28.10% stake in the special purpose vehicle (SPV).

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Tatva Chintan Pharma Q2 Results: Net profit jumps 811% YoY to Rs 32 crore

Tatva Chintan Pharma Chem reported an 811.5% YoY jump in consolidated net profit to Rs 32.41 crore for the quarter ended September (Q2 FY22). Net profit increased by 40% compared to the previous quarter. Its revenue from operations rose 105.8% YoY (or 16% QoQ) to Rs 123.6 crore during the same period. EBITDA stood at Rs 35.8 crore in Q2, up 477% YoY (or 39% QoQ). 

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Ami Organics Q2 Results: Net profit rises 14% YoY to Rs 17.5 crore

Ami Organics Ltd reported a 14.78% YoY increase in consolidated net profit to Rs 17.47 crore for the quarter ended September (Q2 FY22). Net profit increased by 27% compared to the previous quarter. Its revenue from operations rose 33.9% YoY (or 8% QoQ) to Rs 122.31 crore during the same period. EBITDA stood at Rs 27.3 crore in Q2, an increase of 27% YoY.  Ami Organics is one of the leading research and development (R&D)-driven manufacturers of specialty chemicals. 

Exxon looks to buy stake in ONGC’s Indian deep sea fields

Global oil major ExxonMobil Corp is looking at buying a stake in some of the local deepwater fields of Oil and Natural Gas Corporation (ONGC), said Oil Secretary Tarun Kapoor. India, the world’s third-largest importer and consumer of oil, imports ~85% of its oil needs from overseas. The government has been scouting for partnerships with global oil companies to quickly monetise its reserves. Exxon would either acquire a stake in the Indian fields or form a joint venture with ONGC to operate them.

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Orient Electric Q2 Results: Net profit rises 7% YoY to Rs 34 crore

Orient Electric reported a 7.25% YoY increase in net profit to Rs 34.77 crore for the quarter ended September (Q2 FY22). Net profit jumped 595% compared to the previous quarter. Its revenue from operations rose 37% YoY (or 41% QoQ) to Rs 594.38 crore during the same period. Revenue from its electrical consumer durables segment rose 49.33% YoY to Rs 454.5 crore. The company’s total expenses stood at Rs 549.17 crore in Q2, up 40.38% YoY.

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Whistle-blower alleges related party transactions by Asian Paints promoters

A whistle-blower has red-flagged related party transactions (RPTs) carried out by the promoters of Asian Paints Ltd (APL), which allegedly benefited them at the cost of the company’s shareholders. The whistle-blower informed market regulator SEBI that money to buy a company called Paladin Paints and Chemicals (PPC) went from APL. However, APL’s promoters Ashwin Dani and son Malav now control it in their personal capacity. SEBI has sought further details from the whistle-blower.

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MCX Q2 Results: Net profit falls 44% YoY to Rs 33 crore

Multi Commodity Exchange of India (MCX) reported a 44% YoY decline in consolidated net profit to Rs 44 crore for the quarter ended September (Q2 FY22). Net profit fell 18% compared to the previous quarter. Its revenue from operations declined by 30% YoY (or 5% QoQ) to Rs 82 crore during the same period. EBITDA stood at Rs 34 crore in Q2, a decline of 49% YoY.

Petrol, diesel prices hiked for fourth consecutive day

The prices of petrol and diesel soared to new record highs across the country after the rates were hiked for the fourth consecutive day on Saturday. State-run oil marketing companies (OMCs) have increased the fuel rates by 35 paise per litre each. Following the latest price revision, petrol is retailing at Rs 107.24 per litre in Delhi. The cost of diesel stands at Rs 95.97 per litre in the national capital.

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Real estate sector to touch $1 trillion by 2030: Niti Aayog

The real estate sector plays a multiplier effect in the development of the economy and is expected to reach a market size of $1 trillion by 2030, said Niti Aayog CEO Amitabh Kant. He further said that the sector will account for 18-20% of India’s gross domestic product (GDP). Kant noted that the real estate sector and its stakeholders also play a critical role in supporting the ‘housing for all’ initiative of the government. Real Estate Investment Trusts (REITs) are expected to create opportunities worth Rs 1.25 lakh crore in the coming years.

Read more here.

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IEX Reports 75% YoY Rise in Net Profit in Q2 – Top Indian Market News

IEX Q2 Results: Net profit rises 75% YoY to Rs 77 crore

Indian Energy Exchange (IEX) reported a 75% YoY increase in consolidated net profit to Rs 77 crore for the quarter ended September (Q2 FY22). Net profit increased by 25% compared to the previous quarter. Its revenue from operations rose 56% YoY (or 21% QoQ) to Rs 109 crore during the same period. IEX’s board has recommended bonus issue of equity shares in the ratio 2:1 (two additional shares for every share held in the company).

Read more here.

Asian Paints Q2 Results: Net profit falls 29% YoY to Rs 605 crore

Asian Paints Ltd reported a 29% YoY decline in consolidated net profit to Rs 605.17 crore for the quarter ended September (Q2 FY22). Net profit increased by 5% compared to the previous quarter. Its revenue from operations rose 33% YoY to Rs 7,096 crore during the same period. The company saw a 72% YoY rise in the cost of raw materials to Rs 4,570 crore in the July-Sept quarter of FY22. Asian Paints’ board has approved an interim dividend of Rs 3.65 per share.

Read more here.

Jio-BP to open first petrol pump near Mumbai

Global energy supermajor BP plc will open its first ‘Jio-bp’ branded petrol pump in partnership with Reliance Industries Ltd (RIL) near Mumbai. In 2019, BP had bought a 49% stake in over 1,400 petrol pumps and 31 aviation turbine fuel (ATF) stations owned by RIL for $1 billion. The existing petrol pumps of RIL have since been transferred to the joint venture, Reliance BP Mobility. 

Read more here.

JSW Steel Q2 Results: Net profit jumps 350% YoY to Rs 7,170 crore 

JSW Steel Ltd reported a 350% YoY jump in consolidated net profit to Rs 7,170 crore for the quarter ended September (Q2 FY22). Net profit increased by 21.4% compared to the previous quarter. Its total revenue from operations rose 69% YoY to Rs 32,503 crore during the same period. Steel sales stood at 3.83 million tonnes (MT) in Q2, an increase of 10% QoQ. JSW Steel reported its highest ever EBITDA at Rs 10,417 crore in the July-Sept quarter of FY22.

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Vodafone Idea partners with Athonet to test, validate 5G-based solutions

Vodafone Idea has announced a partnership with private LTE and fifth-generation solutions platform provider Athonet to test 5G-based solutions for enterprise use cases. The tests will be conducted in Pune using the spectrum allocated by the government for 5G trials. The deal with Athonet comprises a demonstration of enterprise use cases on 5G in several areas such as smart construction, warehouse, agriculture, and workplace.

Read more here.

IDBI Bank Q2 Results: Net profit rises 75% YoY to Rs 567 crore

IDBI Bank reported a 75% YoY increase in net profit to Rs 567 crore for the quarter ended September (Q2 FY22). Net profit declined by 6% compared to the previous quarter. Its net interest income (NII) rose 9% YoY to Rs 1,853.6 crore during the same period. [NII is the difference between the interest income a bank receives on loans and the interest it pays its depositors]. The gross non-performing assets (GNPA) ratio declined to 20.92% in Q2 FY22, compared to 25.08% in Q2 FY21.

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Kotak Mahindra Bank partners with Pine Labs to expand point-of-sale services

Kotak Mahindra Bank has partnered with Pine Labs to expand its point-of-sale (PoS) services to more merchants, especially retailers. Through this tie-up, merchants in India will be able to get the advantage of Kotak Mahindra Bank’s PoS payment solutions bundled with Pine Labs’ technology stack to help grow their business. Pine Labs has a network of over 2.45 lakh merchants across Asia.

Read more here.

TVS Motor Q2 Results: Net profit rises 35.1% YoY to Rs 242 crore

TVS Motor Company reported a 35.1% YoY increase in consolidated net profit to Rs 242.17 crore for the quarter ended September (Q2 FY22). Its revenue from operations rose 23.4% YoY to Rs 6,483.42 crore during the same period. The company sold 8.7 lakh two-wheelers in Q2 FY22, compared to 8.34 lakh units in Q2 FY21. Total three-wheeler sales grew 33.3% YoY to 0.47 lakh units in Q2 FY22.

Read more here.

Bombay HC directs ZEEL to call for EGM as sought by Invesco 

The Bombay High Court has asked the board of Zee Entertainment Enterprises Ltd (ZEEL) to consider the requisition notice of its largest shareholder Invesco to convene an extraordinary general meeting (EGM). The court also asked the parties to propose a date and name of some neutral chairperson to conduct the EGM. While calling for the EGM, ZEEL’s right to contest the validity of the resolutions post the EGM can be reserved. You can read about the entire ZEEL-Invesco tussle here.

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Wipro signs multi-year deal with National Grid to drive digital innovation

Wipro Ltd has signed a multi-year global strategic IT and digital deal with London-based National Grid to accelerate its digital innovation journey. National Grid is a leading multinational electric and gas utility provider. The IT company will employ standardized tools and processes to provide cloud services to strengthen National Grid’s infrastructure services and support its strategic business objectives.

Read more here.

CONCOR Q2 Results: Net profit rises 41% YoY to Rs 264 crore

Container Corporation of India reported a 41.2% YoY increase in net profit to Rs 264 crore for the quarter ended September (Q2 FY22). Its revenue from operations rose 21.4% YoY to Rs 1,823.9 crore during the same period. EBITDA stood at Rs 338.2 crore in Q2, an increase of 49.2% YoY. The company saw a 20% rise in rail freight to Rs 983.8 crore. CONCOR’s board has declared an interim dividend of Rs 4 per share.

Read more here.

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Asian Paints Reports 161% YoY Jump in Net Profit in Q1 – Top Indian Market News

Asian Paints Q1 Results: Net profit jumps 161% YoY to Rs 574 crore

Asian Paints Ltd reported a 161.5% year-on-year (YoY) jump in consolidated net profit to Rs 574.3 crore for the quarter ended March (Q1 FY22). Its revenue from operations rose 91.1% YoY to Rs 5,585.4 crore during the same period. Revenue from its paints segment grew 90.4% YoY to Rs 5,464.7 crore in Q1. A steep rise in the prices of raw materials impacted Asian Paints’ margins across all business segments.

Read more here.

Infosys opens digital tech and innovation center in Germany for auto sector

Infosys Limited has set up an Automotive Digital Technology and Innovation Centre in Stuttgart, Germany. As part of the IT company’s partnership with Daimler, automotive IT infrastructure experts based in Germany will transition from Daimler AG to the new innovation centre. Infosys will support Daimler AG to strengthen its IT and data centre infrastructure and drive a competitive edge.

Read more here.

Bajaj Finance Q1 Results: Net profit rises 4% YoY to Rs 1,002 crore

Bajaj Finance Ltd reported a 4.17% YoY increase in consolidated net profit to Rs 1,002.44 crore for the quarter ended June (Q1 FY22). Net profit has declined by 25.56% when compared to the previous quarter. The net interest income (NII) rose 8% YoY to Rs 4,489 crore during the same period. The gross non-performing assets (GNPA) ratio stood at 2.96% in Q1 FY22, compared to 1.79% in Q4 FY21. Bajaj Finance’s assets under management (AUM) grew by 15% YoY to Rs 1.59 lakh crore in Q1.  

Read more here.

Wipro to invest $1 billion over next three years to expand cloud transformation capabilities

Wipro Limited has announced plans to invest $1 billion (~Rs 7,465 crore) over the next three years to build capabilities around cloud technologies. The IT company has launched ‘Wipro FullStride Cloud Services’, a portfolio of services that will help them offer comprehensive cloud transformation capabilities to its customers. The strategic investment and launch are in line with the consistent growth Wipro has witnessed in its cloud business. 

Read more here.

JSW Energy energy to invest Rs 3,000 crore to set up windmills in Tamil Nadu

JSW Energy Ltd has signed an investment agreement worth Rs 3,000 crore with the Tamil Nadu government to set up windmills across the state. The company will establish windmills at Thoothukudi, Tirunelveli, and Tirupur districts. The project will create employment opportunities for more than 600 people.

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DCM Shriram Q1 Results: Net profit jumps two-fold to Rs 158 crore

DCM Shriram Ltd reported a 124.68% YoY jump in consolidated net profit to Rs 157.5 crore for the quarter ended June (Q1 FY22). Net profit has declined by 31.9% when compared to the previous quarter. Its total income rose 4.47% YoY to Rs 2,205.11 crore during the same period. DCM Shriram is engaged in the manufacturing of sugar, fertilisers, chloro-vinyl, and bio-seeds.   

Read more here.

Tatva Chintan IPO subscribed 180.36 times on final day of bidding 

The Rs 500 crore initial public offering (IPO) of Tatva Chintan Pharma Chem Ltd was subscribed 180.36 times on the final day of bidding. The IPO received bids for 58.82 crore equity shares against the issue size of 32.61 lakh shares. Retail investors have subscribed 35.35 times against their reserved portion. Non Institutional investors (NIIs) and Qualified Institutional Buyers (QIBs) have subscribed 512.22 times and 185.23 times, respectively, against their reserved portions. To learn more about the IPO, click here.

CRISIL Q1 Results: Net profit rises 51% YoY to Rs 100 crore

CRISIL Limited reported a 51.9% YoY increase in consolidated net profit to Rs 100.8 crore for the quarter ended June (Q1 FY22). Its revenue from operations rose 12% YoY to Rs 528.5 crore during the same period. The company’s board has declared an interim dividend of Rs 8 per share. Revenue from its research segment and advisory segment grew 20.2% YoY and 14% YoY, respectively, in Q1. To learn more about CRISIL, click here.

Isgec Heavy Engineering secures order from Russian firm

Isgec Heavy Engineering has secured a significant order from one of the world’s most prominent soda ash manufacturing companies based in Russia. The order is for two sets of carbonation columns, one set of gas scrubber columns, and a set of distillation columns. The broad scope of the order includes casting, machining, hydro-testing, and painting. Noida-based Isgec Heavy Engineering is a diversified heavy engineering company engaged in manufacturing and project businesses.

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Shyam Metalics Q1 Results: Net profit jumps 470% YoY to Rs 458 crore

Shyam Metalics and Energy Ltd reported a 470.4% YoY jump in consolidated net profit to Rs 457.98 crore for the quarter ended June (Q1 FY22). Net profit has increased by 18.2% when compared to the previous quarter. Its revenue from operations rose 170% YoY to Rs 2,464 crore during the same period. The company posted strong volume growth of ~37% in Q1. Shyam Metalics and Energy’s shares were listed on the stock exchanges on June 24.

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NTPC emerges winner for 450 MW solar capacity at Rewa

The renewables arm of NTPC Limited has emerged as the winner at the Rewa Ultra Mega Solar Ltd auction for 450 megawatts (MW) of solar projects at the Shajapur Solar Park in Madhya Pradesh. NTPC Renewable Energy won a capacity of 105 MW and 200 MW by quoting the lowest tariff of Rs 2.35 per kilowatt-hour (kWh) and 2.33 per kWh, respectively. NTPC aims to build 60 gigawatts (GW) of renewable energy capacity by 2032.

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IOC to build India’s first green hydrogen plant

Indian Oil Corporation (IOC) will build India’s first green hydrogen plant at its Mathura refinery. The company has drawn a strategic growth path that aims to maintain focus on its core refining and fuel marketing businesses over the next 10 years. Meanwhile, IOC will also focus on its advancements in petrochemicals, hydrogen, and electric mobility.

Read more here.

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Retail Inflation Eases to 4.29% in April – Top Indian Market News

Retail inflation eases to 4.29% in April; IIP grows 22.4% in March 

Retail inflation in India, measured by the Consumer Price Index (CPI), eased to 4.29% in April 2021. CPI stood at 5.52% in March. This is the fifth consecutive month that retail inflation has come within the Reserve Bank of India’s (RBI) upper margin of 6%. The Consumer Food Price Index (CFPI) eased to 2.02% in April, compared with 4.87% in March. Vegetable prices fell 14.18% in April, while prices of cereals declined by 2.96%.

India’s factory output, measured by the Index of Industrial Production (IIP), witnessed a growth of 22.4% YoY to 143.4 in March 2021. The growth in IIP is mainly on account of the growth in the manufacturing, electricity, and mining sectors. The manufacturing sector posted a growth of 25.8% YoY to 140.4 in March. The electricity and mining sectors grew 22.5% and 6.1%, respectively, during the same month. The index had fallen by 3.4% in February 2021.

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Tata Power Q4 Results: Net profit falls to Rs 481 crore

Tata Power Company Ltd reported a marginal decline in net profit to Rs 481.21 crore for the quarter ended March (Q4 FY21). It had posted a net profit of Rs 474.70 crore in the corresponding period last year (Q4 FY20). Its total income rose to Rs 10,222.48 crore in Q4 FY21, compared with Rs 6,793.95 crore in Q4 FY20. Tata Power’s board has recommended a dividend of Rs 1.55 per share.

The company’s board has also approved fund-raising up to Rs 5,500 crore through the issuance of non-convertible debentures (NCDs) on a private placement basis. The funds raised from this issue will be utilised for refinancing of existing loans.

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Cabinet approves PLI scheme worth Rs 18,100 crore for battery storage manufacturing

The Union Cabinet has approved a Production Linked Incentive (PLI) scheme for promoting battery storage at an estimated outlay of Rs 18,100 crore. With the objective to promote the ‘Make in India’ initiative, the National Programme on Advanced Chemistry Cell (ACC) Battery Storage is expected to attract investments of up to Rs 45,000 crore. The proposal aims to achieve a manufacturing capacity of 50 gigawatt-hour (GWh) of ACC and 5 GWh of niche ACC. Information and Broadcasting Minister Prakash Javadekar said this PLI scheme will promote green growth and use local products like copper and bauxite to a large extent.

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UPL Q4 Results: Net profit rises 34% QoQ to Rs 1,063 crore

UPL Limited reported a 34% quarter-on-quarter (QoQ) increase in net profit to Rs 1,063 crore for the quarter ended March (Q4). Net profit has jumped 72% when compared to Q4 FY20. The company’s revenue from operations rose 40% QoQ (or 15% YoY) to Rs 12,796 crore during the same period. Its agrochemical and other agricultural-related businesses saw top-line growth of 15.7% YoY to Rs 12,331 core. UPL’s board has recommended a dividend of Rs 10 per share.

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Cadila to sell India focused animal health business for Rs 2,921 crore

Zydus Animal Health and Investments Ltd (ZAHL), a wholly-owned subsidiary of Cadila Healthcare, has entered into an agreement with a consortium of financial investors to sell its animal healthcare business Zydus AH for Rs 2,921 crore. The consortium includes Rakesh Jhunjunwala’s RARE Enterprises, Multiples Alternate Asset Management, and Canada Pension Plan Investment Board. Zydus AH is one of the fastest-growing animal health businesses in India. It claims a leadership position across a spectrum of therapeutic and nutritional products for livestock and poultry animal segments.

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JSPL Q4 Results: Net profit jumps multi-fold to Rs 1,900 crore

Jindal Steel and Power Ltd (JSPL) reported a consolidated net profit of Rs 1,900.51 crore for the quarter ended March (Q4 FY21). This includes an exceptional item of Rs 969 crore. It had posted a net profit of Rs 82.13 crore in the corresponding period last year (Q4 FY20). JSPL’s total income rose to Rs 11,903.59 crore in Q4, compared with Rs 6,819.73 crore a year ago. Total expenses rose to Rs 8,082.92 crore in the March 2021 quarter, compared to Rs 6,603.65 crore in Q4 FY20.

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Passenger vehicle wholesales fall 10% in April: SIAM

According to data released by the Society of Indian Automobile Manufacturers (SIAM), total passenger vehicle wholesales in India declined by 10% to 2.61 lakh units in April 2021. This is compared with passenger vehicle sales of 2.90 lakh units in March 2021. Motorcycle sales declined by 33% to 6.67 lakh units in April, compared to 9.93 lakh units in March. Three-wheeler sales fell by 57% to 12.70 lakh units during the same month.

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Voltas Q4 Results: Net profit rises 49% YoY to Rs 239 crore

Voltas Limited reported a 49% YoY increase in consolidated net profit to Rs 239 crore for the quarter ended March (Q4). Its total sales revenue rose 25% YoY to Rs 2,683.24 crore during the same period. The company’s revenue from unitary products grew 20% YoY to Rs 1,437 crore. Its colling products business posted overall volume growth of 18% YoY in Q4. The board of Voltas Ltd has recommended a dividend of Rs 5 per share.

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Asian Paints Q4 Results: Net profit rises 84.5% YoY to Rs 852 crore

Asian Paints Limited reported an 84.5% YoY increase in consolidated net profit to Rs 852.13 crore for the quarter ended March (Q4). On a quarterly basis, net profit has fallen by 31%. Its revenue from operations rose 43.5% YoY to Rs 6,651.4 crore during the same period. The company’s domestic decorative business posted volume growth of 48% YoY, led by strong growth in the premium and luxury product range. The board of Asian Paints has recommended a final dividend of Rs 14.5 per share.

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Apollo Tyres Q4 Results: Net profit falls 35% QoQ to Rs 287 crore

Apollo Tyres Limited reported a 35.27% QoQ fall in net profit to Rs 287.26 crore for the quarter ended March (Q4 FY21). Net profit has jumped 269% when compared to the corresponding period last year. Its total sales revenues fell 3.25% QoQ (up 40% YoY) to Rs 5,025.7 crore during the same period. Apollo Tyres’ sales in the Middle East and African regions rose 49% YoY to Rs 3,688 crore. The company’s board has recommended a final dividend of Rs 3.5 per share.

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Editorial

The Paint Industry in India: An Analysis

The existing economic conditions have proven to be favourable for the real estate and construction sectors in India. Lower interest rates and higher disposable income amongst people have led to a strong recovery in demand for real estate properties. Developers are focusing on completing projects and are also launching new ones. Since people were forced to stay at home amidst the Covid-19 pandemic, many felt an urge to renovate or decorate their houses/apartments. Also, automobile manufacturers have been receiving an influx of demand for two-wheelers, passenger cars, etc.

All these factors have ultimately provided a major boost for the paint industry. The companies that offer paints and coatings are witnessing increased sales volumes. We have also seen a surge in their stock prices in recent weeks. Let us take a look at some of the top listed companies that fall under the paint industry.

Asian Paints

Asian Paints Limited was founded in 1942 and is based in Mumbai. The company manufactures, sells, and distributes paints and coatings for decorative and industrial use in India. It offers wall finishes, metal finishes, and wood finishes for interior and exterior surfaces. It provides a wide range of mechanised tools, waterproofing products, adhesives, bath fittings, wardrobes, wall coverings, and surface disinfectants. They also offer color consultancy, home painting, décor, interior design, and sanitization services. 

The company manufactures essential components such as varnishes, enamels, and lacquers (used for glossy finishes), organic composite solvents, and thinners. It has also ventured into modular kitchens and kitchen components, including wire baskets, cabinets, appliances, and accessories. The company offers its products under the Asian Paints, Apco Coatings, Asian Paints Berger, Causeway Paints, SCIB Paints, Taubmans, and Kadisco Asian Paints brands. They operate in 19 countries and have 26 paint manufacturing facilities around the world. It has a wide distribution network consisting of more than 70,000 dealers.

Financial Performance

Asian Paints reported a 62% year-on-year (YoY) jump in consolidated net profit to Rs 1,265.35 crore for the quarter ended December (Q3). Its revenue from operations rose 25.43% YoY to Rs 6,886.39 crore during the same period. The company’s domestic decorative business delivered more than 30% volume growth, led by premium and luxury portfolios. Asian Paints’ international business also recorded double-digit volume growth, led by Asia and the Middle East. With the revival of economic activities, the company has been receiving more demand for its range of paints and coatings from automobile manufacturers, real estate developers, etc.

Over the last 5 years, the company’s revenue has grown at a CAGR of 6.18%, whereas the industry average stood at 6.68%. Asian Paints has been able to secure a market share of 63.38%. It has continued to show dominance in the market by focusing on research & development and launching innovative products. 

The share price of Asian Paints has surged more than 56% since the beginning of the current financial year. 

Berger Paints India

Berger Paints India Limited was founded in 1923 and is based in Kolkata. The company manufactures and sells paint products for home, professional, and industrial users in India. It offers a wide range of interior and exterior wall coatings. They also provide waterproofing solutions, construction chemicals, flooring compounds, adhesives, and protective & anti-corrosive coatings. It has 16 manufacturing facilities located across India, Nepal, Poland, and Russia. With a distribution network of more than 25,000 dealers, Berger Paints has been able to provide tailor-made services to individual and corporate clients. The company is a subsidiary of U.K. Paints India Private Limited.

Financial Performance

Amidst the Covid-19 pandemic, Berger Paints reported an impressive 13.55% YoY increase in consolidated net profit to Rs 221.05 crore for the quarter ended September (Q2). The company will post its Q3 results soon. Industry experts have estimated that its revenue and sales will show significant growth.

Over the last 5 years, the company’s revenue has grown at a yearly rate of 8.1%, whereas the industry average stood at 6.68%. It has been showing a consistent jump in revenues and profits during the same period. Berger Paints has been able to secure a market share of 19.83%.

Since April 2020, the share price of Berger Paints India has increased by more than 54%! 

Kansai Nerolac Paints

Kansai Nerolac Paints Limited was founded in 1920 and is headquartered in Mumbai. The company manufactures and sells paints, varnishes, enamels, and lacquers in India. It offers interior and exterior decorative wall paints, wood coatings, metal enamel paints, and ancillary paints. The company was formerly known as Goodlass Nerolac Paints Ltd and changed its name to Kansai Nerolac Paints Ltd in April 2006. It is a subsidiary of Kansai Paint Co., Ltd- a Japan-based chemical company.

Kansai Nerolac Paints reported an 11.56% YoY decline in consolidated net profit to Rs 167.96 crore for the quarter ended September (Q2). As India came out of lockdowns, the company saw a very slow recovery in demand for its products. The sales volumes of Kansai’s industrial paints segment, which contributes more than 40% of its overall revenues, had declined. The company is yet to post its Q3 results. 

Over the last 5 years, the company’s revenue has grown at a yearly rate of 6.81%, whereas the industry average stood at 6.68%. Kansai Nerolac has been able to secure a market share of 16.35%.

The shares of Kansai Nerolac Paints has surged by more than 57% since April 2020.

Akzo Nobel India

Akzo Nobel India Limited manufactures and sells paints and coatings in India and internationally. The Gurugram-based company offers marine coatings, protective coatings, industrial coatings, automotive, and specialty coatings. It produces paints, varnishes, enamels, and lacquers for interior and exterior use. The company’s products are widely used for oil and gas, power, infrastructure, and wind energy projects. They also cater to the architecture & construction, offshore supply, transport vessels, and fishing sectors. 

Akzo Nobel has also ventured into the roofing and domestic appliance sectors. Its products are primarily offered under the Dulux, Sikkens, and Interpon brands. The company was formerly known as ICI India Limited and changed its name to Akzo Nobel India Ltd in February 2010. It is a subsidiary of Akzo Nobel N.V.- a Dutch multinational company that creates paints and performance coatings for industries and consumers worldwide.

Financial Performance

Amidst the impact of the Covid-19 pandemic, Akzo Nobel reported a 35% YoY increase in consolidated net profit to Rs 66.28 crore for the quarter ended December (Q3). However, its revenue from operations was down 4.25% to Rs 606.86 crore during the same period. The company continues to face severe challenges with respect to demand. It is yet to post Q3 results.

Akzo Nobel’s revenues and profits have been showing a sharp decline since the previous financial year. Over the last 5 years, the company’s revenue has grown at a yearly rate of 0.82%, whereas the industry average stood at 3.41%. They have been able to secure a market share of 6.12% in the Specialty Chemicals sector.

Since April 2020, the share price of Akzo Nobel India has increased by 10% so far.

Conclusion

The paint industry is currently booming in India. These companies have been able to meet the requirements of individual homeowners through well-defined distribution networks. They have catered to the rising demand from the real estate and automobile sectors. They have also invested heavily in research & development activities and advertisements. The technological advancements in this industry have heavily contributed to their overall growth. Recently, paint companies reported that there had been a rise in the cost of essential raw materials. The price of crude oil (which is a primary raw material for paints) has been increasing. Thus, several companies are planning to hike the prices of their paint and coating products in Q4. 

At the same time, we can see an increase in competition in this particular industry. Indigo Paints has emerged as a top competitor by reporting strong growth over the years. The company’s shares will get listed on the stock markets on February 2. Meanwhile, Grasim Industries has announced its plans to enter the decorative paints business, which is a Rs 40,000 crore industry in India. It would invest Rs 5,000 crore in the next three years and is eyeing the second position in the sector (in terms of market share). After the announcement, we saw Grasim’s shares rise as much as 11% (intraday) on Jan 25. On worries about increased competition, the stocks of major paint firms fell between 3% and 6% on the same day. Grasim’s entry is expected to cause excessive price-led competition in the paint industry. 

Will the listed firms mentioned above be able to face these challenges in the years to come? Will end-consumers be affected due to a further rise in the prices of paints? Let us wait and watch.

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SEBI Slaps Rs 1 crore Fine On HDFC Bank – Top Indian Market News

SEBI imposes Rs 1 crore penalty on HDFC Bank in BRH Wealth Kreators case

SEBI imposed a penalty of Rs 1 crore on HDFC Bank for invoking securities pledged by stockbroker BRH Wealth Kreators, in violation of the regulator’s interim directions. The bank has also been directed to transfer Rs 158.68 crore along with 7% interest per annum into an escrow account till the issue of settlement of clients’ securities is reconciled. [An escrow account is an account where funds are held in trust whilst two or more parties complete a transaction]. The fine shall be payable within a period of 45 days.

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Bajaj Auto Q3 Results: Net profit rises 23% YoY to Rs 1,556 crore

Bajaj Auto Ltd reported a 23.4% YoY increase in net profit to Rs 1,556 crore for the quarter ended December (Q3). The two-wheeler company’s revenue rose 17% YoY to Rs 8,9098 crore during the same period. Sales volumes grew by 9% YoY, which was led by a 26% growth in motorcycle exports and an 8% increase in domestic volumes. Bajaj Auto’s overall share in the domestic motorcycle market was 18.6% in Q3 FY21, as compared to 17.5% in Q2 FY21.

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Economic recovery in FY22 to be V (vaccine)-shaped: RBI

The Reserve Bank of India (RBI), in its ‘State of the Economy 2020’ report, has said the shape of India’s economic recovery in 2021-22 will be V-shaped — and the ‘V’ in it stands for “vaccine”. India has launched the biggest vaccination drive in the world, backed by the comparative advantage of having a strong vaccine manufacturing capacity. The report stated that the GDP is at a striking distance of attaining positive territory, and inflation is easing closer to the target.

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Asian Paints Q3 Results: Net profit surges 62% YoY to Rs 1,265 crore

Asian Paints Ltd reported a 62% YoY increase in net profit to Rs 1,265.35 crore for the quarter ended December (Q3). Its revenue rose 25% YoY to Rs 6,788.47 crore during the same period. The company’s domestic decorative business delivered more than 30% volume growth, led by premium and luxury portfolios. Asian Paints’ profitability across businesses has been supported by a good sales mix and cost optimisation measures.

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Jindal Steel & Power Q3 Results: Profit after tax at Rs 2,432 crore

Jindal Steel and Power Ltd reported a consolidated profit after tax (PAT) of Rs 2,432 crore for the quarter ended December (Q3). The company had posted a net loss of Rs 257 crore in Q3 FY20. Its consolidated revenue increased by 40% YoY to Rs 10,534 crore in Q3 FY21. During the same period, JSPL standalone reported its highest-ever steel production volumes at 1.93 million tonnes (up 20% YoY) and sales of 1.87 million tonnes (up 12% YoY).

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Indigo Paints IPO subscribed nearly 7 times on Day 2

The initial public offering (IPO) of Indigo Paints was subscribed nearly 7 times on the second day of the bidding process. The issue has received bids for 3.84 crore shares, which is 6.97 times the issue size of 55.18 lakh shares. The reserved portion for retail investors was subscribed 9.6 times, and that of employees 1.8 times. The portion set aside for qualified institutional buyers has been subscribed 3.8 times, and that of non-institutional investors 5.4 times.

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Bandhan Bank Q3 Results: Net profit falls 14% YoY to Rs 632 crore

Bandhan Bank reported a 13.5% YoY decline in net profit to Rs 632.6 crore for the quarter ended December (Q3). The bank’s total income rose 38.3% YoY to Rs 2,625 crore during the same period. Net interest income (NII) grew by 34.5% YoY to Rs 2,071.7 crore in Q3. [NII is the difference between the interest income a bank earns from its lending activities and the interest it pays to depositors]. Provisions and contingencies increased by 262% YoY to Rs 1,068.73 crore. The bank’s operational performance in Q3 was backed by higher growth, lower costs of funds, and strong retail deposits.

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HDFC to sell 24.48% stake in Good Host for Rs 232.81 crore

HDFC Ltd has signed an agreement to sell its 24.48% stake in Good Host, a company engaged in the business of managing student housing facilities. The aggregate sale consideration for the sale of shares is Rs 232.81 crore. After the sale, Good Host will cease to be an associate of HDFC. [HDFC had acquired a 25.01% stake in Good Host in August 2018 for Rs 69.5 crore]

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Fire breaks out at Serum Institute building in Pune; vaccine production not hit

A major fire broke out at the Pune-based Serum Institute of India (SII) on Thursday afternoon. The company is involved in producing Covid-19 vaccine Covishield – developed by Oxford University and AstraZeneca – which is being used for inoculation in the country’s mega vaccination drive. The mishap led to the death of five people, while the rescue team evacuated four. It took around three hours for firemen to bring the blaze under control. The fire is believed to have started because of an electrical fault. There would be no loss of Covishield production due to the fire, said SII CEO Adar Poonawalla.

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Ashoka Buildcon secures 150 MW solar project worth Rs 502 crore

Ashoka Buildcon Ltd has received a Notification of Award (NoA) from NTPC Renewable Energy for a 150 MW solar photovoltaic (PV) plant in Rajasthan. The order includes the operation and maintenance of the solar PV plant for a period of 3 years from the date of successful trial run. The accepted bid value of the project is Rs 502.33 crore. 

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Man Industries Q3 Results: Net profit rises 4.3% YoY to Rs 30 crore

Man Industries Ltd reported a 4.3% YoY increase in net profit to Rs 30.6 crore for the quarter ended December (Q3). Its revenue rose 4.1% YoY to Rs 554.5 crore during the same period. The company’s unexecuted order book at the end of the quarter stood at ~Rs 1,200 crore. Man Industries stated that opportunities in the oil and gas sector remain positive due to stabilizing oil demand and resumption of drilling activities globally.

JK Tyre Q3 Results: Net profit at Rs 230 crore

JK Tyre & Industries Ltd reported a multi-fold jump in consolidated net profit to Rs 230.46 crore. The company had posted a consolidated net profit of Rs 10.27 crore in the third quarter of FY20. Consolidated revenue from operations grew 21.7% YoY to Rs 2,769 crore in Q3 FY21. During the third quarter, all nine plants of the company in India operated at close to 96% capacity utilisation. JK Tyre’s strong performance in Q3 was largely driven by the increased demand for passenger, commercial vehicle, and farm tyres.

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Editorial

Morgan Stanley Index to Push Markets Up – MSCI Rejig

The last week of October began with a rocky start. On Monday, we saw that Nifty 50 was down by 162.60 points (or 1.36%), and closed at 11,767.75. The fall in Reliance Industries (RIL), decline in the auto sector, and the imposition of lockdown in Spain were three major reasons that caused a sharp fall in Nifty. Click here for our detailed post-market report for Monday. To make matters worse, the European and US market was down by 3% and 2%, respectively. Investors were asked to be very cautious while entering into a trade on Tuesday. 

However, in a surprising turn of events, Nifty went up by 1.03% on Tuesday. Against all odds, Nifty saw a rise of 121.65 points, and closed at 11,889. Let us have a detailed understanding of one major reason as to why there was a great recovery in our Indian market.

The MSCI Index

On Tuesday, most of us did not get a chance to go through a major report that was published in the afternoon. However, the stocks mentioned in this report were the ones that showed a great performance in our markets. The report had details about Morgan Stanley’s Emerging Market Index. 

Morgan Stanley Capitals International (MSCI Inc.) is one of the largest investment banks and financial services companies in the world. The US-based firm is a major index provider and publishes three major indexes. An index usually measures or tracks the performance of a group of assets or securities.

Coming back to the point, the report mentioned that Morgan Stanley is going to restructure or reorganize its Emerging Market Index. What this meant was that India’s weightage in this highly important index would be increased to 8.7%, from the current level of 8.1%. Ultimately, this would result in an additional indirect inflow of about $2.5 billion (~Rs 18,430 crore) to the Indian securities that are included in the index. According to Morgan Stanley, the major companies such as Asian Paints, Bajaj Finance, Britannia, L&T, and Nestle India would highly benefit from this change. These companies could see an increase in investment by approximately $200 million (~Rs 1,474 crores).

How Does this Process Work?

In order to understand this process more clearly, we shall look at an example. In India, we have the Nifty 50 index which includes Nestle India Limited. At a point in time, a major financial company or analyst might say that the weightage of Nestle is going to be increased in the Nifty index. Mutual funds and Exchange Traded Funds (ETFs) who are tracking this index will start pouring more funds into the stock. This confidence from big players will also make small retailers invest more money into the company. Eventually, the share prices of Nestle would have a high chance of increasing. This is exactly one of the major reasons as to why there was a rise in Nifty on Tuesday.

Top Gainers on Tuesday

  1. Kotak Bank – 11.70%  
  2. Nestle India – 5.97%
  3. Asian Paints – 5.69%
  4. Bajaj Finance – 4.38%

Almost all the top gainers are companies that were listed on the report of Morgan Stanley. Certain financial analysts have also stated that companies such as Apollo Hospitals, LIC Housing Finance, Ipca Laboratories, and Kotak Bank may also be included in the MSCI indices. 

Do bear in mind that the original results of the MSCI Emerging Market Index would be announced on November 11. It would also include the list of stocks that would be added, along with the changes in its weightage. These changes would finally be effective from 1st December 2020. So the point is that even the funds have not actually flowed into these stocks, the positive sentiment around them is what pushed them up.

An important takeaway from this would be to carefully go through relevant market news. Very specific and highly important news (such as this report from a giant like Morgan Stanley) would have a huge impact on how markets perform on a specific day. It is also encouraging to understand how our Indian companies are performing, and would help us achieve handsome profits in the long term and win in the stock market.

Update on November 11:

The revisions to the MSCI Emerging Markets Index was announced on November 11. The following table shows the list of stocks that are added, and the stocks that have been excluded from the standard index.

Stocks that are AddedStocks that are Excluded
1. Kotak Mahindra Bank1. LIC Housing
2. Adani Green2. Bosch
3. Yes Bank
4. Apollo Hospitals
5. MRF
6. IPCA Labs
7. Balkrishna Industries
8. L&T Infotech
9. Trent
10. PI Industries
11. Muthoot Finance
12. ACC
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Ambuja Cement reports 51% rise in net profit – Top Indian Market News

Ambuja Cement reports 50.5% YoY rise in net profit

Ambuja Cement Limited on Thursday reported a 50.5% year-on-year (YoY) increase in consolidated net profit at Rs 803.5 crore, for the July-September quarter. The increase in profit has been due to the company’s cost reduction programs, and increased volume growth. Ambuja Cement has also declared an interim dividend of Rs 17 per share.

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Aurobindo Pharma’s New Jersey unit receives warning letter from USFDA 

Aurobindo Pharma shares fell 6.53% to Rs 753.50 today after the company’s New Jersey subsidiary received a warning letter from the United States Food and Drug Administration (USFDA). AuroLife Pharma LLC received the warning letter for its oral solid manufacturing unit in Dayton. The exclusive sales from this facility make up 2% of the group turnover.

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Bajaj Auto Q2 Results: Net profit declines 19% YoY 

Bajaj Auto Limited reported an 18.84% year-on-year (YoY) drop in net profit to Rs 1,138.20 crores, for the quarter ended September (Q2). The company’s total revenue from operations declined 7.16% YoY to Rs 7,155.86 crore. The share price of Bajaj Auto saw a fall of 0.71%, and closed at Rs 2,996.55 on the NSE today.

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Asian Paints reports 1.15% YoY increase in net profit

Asian Paints on Thursday reported a 1.15% year-on-year (YoY) increase in its consolidated net profit at Rs 851.90 crore, for the quarter ended September (Q2). The total income during the same period increased by 5.37% YoY to Rs 5,432.86 crore. The paint major also announced an interim dividend of Rs 3.35 per share. The share price of the company saw a fall of 0.88%, and closed at Rs 2,095.75 on Thursday.

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Dr. Reddy’s Labs forced to shut units after cyber attack

Dr. Reddy’s Laboratories was forced to close some of its production facilities, following a cyber attack on its data servers on Thursday. The company, in a statement, said that they have isolated all data center services, and do not foresee any major impact on its operations. The company had received approval for Phase-3 testing of the Covid-19 vaccine, Sputnik-V, on October 17th. The share price of Dr. Reddy’s Labs Ltd saw a fall of 0.35%, and closed at Rs 5,029.15 on the NSE today.

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TCS in talks to acquire technology unit of Deutsche Bank

Reports have come about stating that Tata Consultancy Services (TCS) is in advanced talks to buy the technology services unit of Deutsche Bank AG. The unit, Postbank Systems AG, has over 1,400 employees who would potentially be taken over by TCS. The deal will be finalized towards the end of the year, as per the report.

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SBI Cards reports 46% YoY decline in net profit 

SBI Cards and Payment Services reported a 46% year-on-year (YoY) decline in net profit at Rs 206 crore, for the quarter ended September (Q2). The total income increased 6% YoY to Rs 2,513 crore during the same period. SBI Cards is the only credit card company that is listed in India. The share price of SBI Cards saw a decline of 7.41%, and closed at Rs 829 today.

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Vedanta Ltd to consider dividend payout on 24th October 

Mining company Vedanta Ltd on Thursday stated that its Board of Directors will meet on Saturday (24th October) to consider an interim dividend for the current financial year. On October 10th, Vedanta announced that its voluntary delisting offer had failed. The share price of the company gained 3.61%, and closed at Rs 104.85 on the NSE today.  

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Bharti Infratel reports 24% YoY fall in net profit

Bharti Infratel Limited on Thursday reported a 22% year-on-year decline in net profit to Rs 733 crore, for the quarter ended September (Q2). The company’s revenue increased by 2% YoY to Rs 3,695 crore for the same period. Bharti Infratel also announced the closure of its merger with Indus Towers.

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India Bank Q2 Results: Net profit rises 15% YoY to Rs 412 crore

State-owned Indian Bank reported a 15% year-on-year rise in consolidated net profit at Rs 412.28 crore, for the quarter ended September (Q2). The total income of the bank increased to Rs 11,669.11 crore during the September quarter, as compared to Rs 6,045.32 crore during the same period in the financial year 2019-2020.

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Burger King plans to raise Rs 542 crore through IPO

The quick-service restaurant chain, Burger King India Ltd, has filed draft papers for an initial public offering (IPO) with market regulator SEBI. The company plans to raise Rs 542 crore through a mix of issuing fresh equity shares, as well as an offer for sale by its promoters, QSR Asia Pte Limited. The promoters are planning to exit by offering to sell 6 crore equity shares.

Read more here.

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Market News

Asian Paints Q1 FY21: Net profits slumped by 66.7%

Asian Paints

India’s biggest paintmaker Asian Paints on Friday posted a net profit of Rs 218.45 crore for the quarter ending June. This was 66.7% lower when compared to Rs 655.44 crore declared in the same quarter previous year. Asian Paints’ revenue also faced a YoY slump of 43% from Rs 5,104.72 crore to Rs 2,922.66 crore.

Even the fall in net profit and revenue is huge, it is still better than what some of the market analysts projected. Some analyst expected the fall in net profit to be around 80%-90% due to complete shutdown, yet the last month of the quarter has seen an increase in number of projects. 

Q1 FY21Q4 FY20Q1 FY20QoQYoY
Revenue (crore)2,92246355,104-36.9%-43%
Net Profits (crore)218461655.44-52.7%-66.7%

The nationwide lockdown imposed by the central government caused Asian Paints’ operations to shut down. Also, the demand for products faced a significant decrease during these months. The norms of social distancing and migration of labours to their villages acted as a coupling effect to reduce the company’s sales.

According to Managing Director & CEO Amit Syngle, “The other business segments in India, including the two industrial coatings business and both the segments in the home improvement category also witnessed improving trends in June, albeit at a lower pace.”

The month of June has offered some optimism to the officials. The volume growth in the last month of the quarter ended up in a double-digit. With a very low probability of nationwide lockdown, even as positive cases face a surge, Asian Paints is hopeful of improving business conditions in the coming months. With festival season ahead, Asian Paints will be looking to gain as much as possible to compensate for the loss in this quarter.