Tag: Bajaj Auto

Categories
Daily Market Feed Post Market Analysis

Sharp Recovery After Gap Down. Bearishness to Continue? – Post-Market Analysis

closing bell | marketfeed

NIFTY started the day at 19,545 with a big gap-down of 126 points. The index took support near the round levels of 19,500, moved up to 19,600, consolidated, and gave a breakout till yesterday’s closing levels of 19,680. After taking rejection there, the index fell back to 19,600 levels. Nifty closed at 19,624, down by 46 points or 0.24%.

Nifty chart October 19 - post-market analysis

BANK NIFTY (BNF) started the day at 43,616 with a gap down of 272 points. After the big gap-down opening, the index rose sharply till yesterday’s closing levels of 44,000, took rejection, fell to 43,750 levels, and shot back up to 44,060. Then, the index gradually fell to 43,750 levels again. BNF closed at 43,754, down by 134 points or 0.31%.

Bank Nifty chart October 19 - post-market analysis

All indices except Nifty Auto (+0.5%), Nifty Media (+0.14%), and Nifty FMCG (+0.14%) closed flat-to-red. Nifty Metal (-0.88%) fell the most.

Major Asian markets closed mixed (Japan’s Nikkei fell 1.9%). European markets are currently trading in the red.

Today’s Moves

Bajaj Auto (+6.7%) was NIFTY50’s top gainer. The stock hit a 52-week high of ₹5,495 after the two-wheeler manufacturer reported strong Q2 results.

Shares of PSU civil construction company NBCC (India) Ltd (+9.5%) have zoomed over 60% in 3 months.

LTI Mindtree (+6.6%) jumped after the IT major posted Q2 earnings yesterday.

Wipro (-2.98%) was NIFTY50’s top loser. The company reported flat overall growth in Q2 due to the macroeconomic slowdown and cutbacks in discretionary spending in global markets.

MMTC (-9.95%) fell sharply today. The stock has crashed nearly 20% in 2 days on reports that the govt may shut down the company.

Markets Ahead

Bank Nifty made very volatile moves today. Meanwhile, Nifty tried recovering from the lows but faced rejection from the resistance zones.

Nifty: The important support to watch out for is 19,600. A breakdown from there may take the index down to 19,500 levels. The earlier resistance in Nifty will now act as support. The resistance to look out for will be 19,680 levels, and a breakout from there could give us targets of 19,720 and 19,800.

Bank Nifty: The immediate support in BNF is near today’s low and round levels of 43,500. This is an important long-term support zone as you can see in the chart below. A closing below that zone on a daily or weekly time frame could confirm long-term bearishness. On the other hand, the resistance zone is 44,000, and BNF needs to close above that for some bullishness or reversal.

Premiums in Nifty contracts today and Bank Nifty contracts yesterday experienced insane gamma spikes in Out of the Money (OTM) options. The premiums shot up from ₹1 to ₹25-20 in Nifty today and ₹15 premiums spiked to ₹300 yesterday in Bank Nifty! This creates panic situations for option sellers, whereas such moves reward option buyers if they’re in the right direction.

How was Nifty expiry? Are you in net profit or loss? Let us know in the comments below!

Please join The Stock Market Show at 7 PM on our YouTube channel.

Categories
Daily Market Feed Post Market Analysis

Bank Nifty Misses ATH! Bajaj Auto Up 6% – Post-Market Analysis

Post-market analysis | marketfeed

NIFTY started the day at 20,156 with a gap-up of 53 points (near yesterday’s high). It initially fell a little, made a double bottom, and continued to move up to 20,200 levels, where it took rejection. Then, the index fell sharply to near the day’s low and moved back up with strength to hit a fresh all-time high (ATH) of 20,222.45. Nifty closed at 20,192, up by 89 points or 0.44%.

Nifty chart Sept 15 - post-market analysis | marketfeed

BANK NIFTY (BNF) started the day at 46,122 with a gap-up of 121 points. The index consolidated there for a while, gave a breakout, and rose to 46,300 levels. Then, a sharp sell-off happened after 12 PM, making the index fall nearly 250 points to 46,030 levels. But Bank Nifty made a sharp recovery up to 46,310 by 3 PM. BNF closed at 46,231, up by 230 points or 0.5%.

Bank Nifty chart Sept 15 - post-market analysis | marketfeed

All indices except Nifty FMCG (-0.48%), Nifty Realty (-0.39%), Nifty Metal (-0.16%), and Nifty Media (-0.1%) closed in the green. Nifty Auto (+1.58%) moved up the most.

Major Asian markets closed mixed. European markets are currently trading up to 1.6% in the green.

Today’s Moves

Bajaj Auto (+5.9%) was NIFTY50’s top gainer and hit an all-time high of ₹5,149. BofA Securities has upgraded the stock to a ‘Buy’ rating.

FACT (+9.79%) jumped on the back of strong volumes.

Restaurant Brands Asia (+6.7%) shot up over 14% to hit its 52-week high of ₹137.7. QSR Asia Pte (promoter) sold a 25.4% stake in the company in a block deal.

BPCL (-1.8%) was NIFTY50’s top loser amid gains in crude oil prices, which shot up over $94 per barrel on Thursday. Any uptick in oil prices hits the margins of oil marketing companies.

Shares of Jindal Stainless (-5.3%) turned ex-dividend today.

Markets Ahead

Markets are moving up slowly and steadily, with a bit of volatility. Our target of 20,200 in Nifty and 46,300 in Bank Nifty are hit. After the crazy up-move over the past few days, it looks like both indices are taking a pause. So, there could be some consolidation in the coming days.

Nifty: The immediate support for the index is near 20,130, and next is the 20,040 levels. A breakdown from these levels could take the index down to the support zone and eventually to the 20,000 round levels. On the other hand, the important resistance will be 20,200 round levels. If this level gets breached, the index may advance towards 20,250 and 20,300.

Bank Nifty: The index is yet to hit its all-time high (ATH) at 46,369.5. Meanwhile, 46,300 can be watched as the immediate resistance. A breakout from there can take BNF to 46,400 or 46,500 in the coming weeks. The immediate support to watch out for is 46,000.

Market participants are consistently buying during market declines. So, it’s advisable not to sell unless crucial reversal levels get breached.

Interestingly, Sensex has experienced a remarkable 11-session rally, marking its most extended winning streak since 2007!

How did this week go? Are you in net profit or loss? Let us know in the comments section of the marketfeed app.

Don’t forget to tune in to The Stock Market Show at 7 PM on our YouTube channel!

Categories
Market News Top 10 News

India’s Manufacturing PMI Hits 3-Month High in August – Top Indian Market Updates

Here are some of the major updates that could move the markets on Monday:

India’s manufacturing PMI hits 3-month high in August

India’s manufacturing sector expanded significantly in August 2023, reaching a 3-month high. The S&P Global India Manufacturing Purchasing Managers’ Index (PMI) stood at 58.6 in August, compared to 57.7 in July. The expansion in manufacturing activity was supported by the rise in new orders last month.

PMI is a month-on-month calculation, and a value above 50 represents an expansion compared to the previous month.

Read more here.

Auto sales data for August 2023: Highlights  

Maruti Suzuki India posted a 14.5% year-on-year (YoY) increase in total sale sales to 1.89 lakh units in August 2023. Sales of its mini & compact vehicle segment fell 9.7% YoY to 84,660 units. Exports rose 14.6% YoY to 24,614 units.

Tata Motors Ltd registered a 3% YoY fall in passenger vehicle sales to 45,933 units in August. The automaker’s total commercial vehicle sales rose by 1.9% YoY to 32,077 units.

Mahindra & Mahindra’s total passenger vehicle segment posted total sales of 37,270 units in August, an increase of 25% YoY. Tractor sales are up 1% at 21,676 units. However, its tractor exports fell 26% YoY 1,029 units. 

TVS Motor Company’s total two-wheeler sales stood at 3.32 lakh units in August, up 5% YoY. Meanwhile, Bajaj Auto’s total sales fell 15% YoY to 3.42 lakh units.

Read more here.

India’s GST revenue rises to Rs 1.59 lakh crore in August, up 11% YoY

India’s Goods and Services Tax (GST) revenue increased 11% YoY in August 2023. The month saw a collection of ₹1,59,069 crore in gross GST revenue, highlighting the steady economic recovery and tax compliance. Central GST (CGST) accounted for ₹28,328 crore, while State GST (SGST) amounted to ₹35,794 crore. Integrated GST (IGST) collections stood at ₹83,251 crore.

Read more here.

Bajaj Auto’s finance subsidiary secures RBI’s NBFC licence

Bajaj Auto Ltd’s wholly-owned subsidiary Bajaj Auto Consumer Finance Ltd has received a licence from the Reserve Bank of India (RBI). The license is to launch a non-banking finance company (NBFC). However, Bajaj Auto Consumer Finance Ltd can’t accept public deposits from the public. The company’s core objective is to offer financing solutions exclusively for vehicles manufactured or endorsed by Bajaj Auto and its associated entities.

Read more here.

Muthoot Finance hikes stake to 59% in microfinance subsidiary for ₹43 crore

Muthoot Finance Ltd has acquired an additional 2.05% stake in its subsidiary Belstar Microfinance Ltd in a cash deal of ₹43 crore. Following the acquisition, Muthoot’s total shareholding in the Tamil Nadu-based microfinance company has increased from 56.97% to 59.02%. In 2017, Muthoot Finance acquired a 53% stake in Belstar as part of its diversification strategy. 

Read more here.

PVR Inox breaks box office collection record in August

PVR Inox posted the highest-ever monthly admissions and Box Office (BO) month of all time in August 2023. The company recorded a gross box office revenue of  ₹532 crore. In the previous month, the multiplex achieved a footfall of nearly 190 lakh. This was driven by Hindi films, including Gadar 2, OMG2, and Dreamgirl 2. Jailer, Rocky aur Rani ki Prem Kahani, and Hollywood’s Oppenheimer also added to the achievement.

Read more here.

Reliance launches ‘Campa Cricket’ ahead of marquee tournaments like World Cup

Amid the ongoing men’s cricket tournament Asia Cup and the upcoming Men’s ODI cricket World Cup, Reliance Consumer Products Ltd (RCPL) has launched a cricket-themed drink, Campa Cricket. In a move to expand its beverage portfolio, the company plans to launch in several states, including Karnataka, Tamil Nadu, Andhra Pradesh, Telangana, Gujarat, Maharashtra, West Bengal and Uttar Pradesh.

Read more here.

Coal India output grows 13% to 52.3 MT in Aug

Coal India Ltd (CIL) posted a 13.2% growth in its output at 52.3 million tonnes (MT) in August 2023, compared to 46.2 MT in the year-ago month. The supplies rose to 59 MT in August, registering a rise of 15.3%. In FY2023-24 so far, the company produced 281.5 MT, posting an 11.1% year-on-year growth.

Read more here.

BSE share buyback price raised to ₹1,080 per share

BSE’s board approved an increase in the offer price for its proposed share buyback and also fixed the record date for the same. The share buyback price has been increased to ₹1,080 per share from ₹816 per share earlier. BSE’s board also fixed the record date for the proposed share buyback at September 14, 2023. The buyback is payable in cash for an aggregate maximum amount not exceeding ₹374 crore.

Read more here.

Categories
Market News Top 10 News

Bajaj Auto’s Net Profit Falls 2% to Rs 1,433Cr in Q4 – Top Indian Market Updates

Here are some of the major updates that could move the markets tomorrow:

Bajaj Auto Q4 Results: Net profit falls 2% YoY to Rs 1,433 crore

Bajaj Auto reported a 2% YoY decline in net profit to Rs 1,433 crore and an operating revenue of Rs 8,905 crore, up 11.7% YoY, for Q4 FY23. EBITDA rose 25.7% YoY to Rs 1,716.6 crore during the quarter. EBITDA margin stood at 19.3%, compared to 17.1% in Q4 FY22. The company’s board recommended a dividend of Rs 140 per share.

Read more here.

Zydus Lifesciences gets USFDA approval to market Metronidazole Topical cream in US

Zydus Lifesciences has received the final approval from the US Food and Drug Administration (USFDA) for manufacturing and marketing Metronidazole Topical cream in the US. According to IQVIA data, the cream had sales of $25m in the US in the 12 months ended February 2023. Zydus’ Topical manufacturing facility in Ahmedabad will manufacture the product.

Read more here.

HDFC AMC Q4 Results: Net profit jumps 10% YoY to Rs 376 crore

HDFC Asset Management Company Ltd (HDFC AMC) reported a 10% YoY increase in net profit to Rs 376.2 crore and a 5% rise in revenue to Rs 541 crore for Q4 FY23. The company’s Quarterly Average Assets Under Management (QAAUM) for Q4 was Rs 4.49 lakh crore, compared to Rs 4.32 lakh crore for the same period last year. The company’s board has recommended a dividend of Rs 48 per share.

Read more here.

Tata Consumer Q4 Results: Net profit rises 23% YoY to Rs 268 crore

Tata Consumer Products reported a net profit of Rs 268 crore for Q4 FY23 compared to the loss of Rs 217 crore in Q4 FY22. The revenue from operations rose 14% YoY to Rs 3,619 crore. The company’s profit before exceptional items and tax also increased 13% YoY to Rs 456 crore led by strong growth in the India branded business. The board has recommended a final dividend of Rs 8.45 per equity share. 

Read more here.

L&T Construction bags orders in the range of Rs 1,000-2,500 crore in India and overseas

Larsen and Toubro’s (L&T) Power Transmission & Distribution (PT&D) business has secured significant orders in India and overseas. L&T has won a power supply system order for the second phase of Chennai Metro and an order to supply, construct, test and commission a 132kV substation in the United Arab Emirates. The company aims to reduce Aggregate Technical & Commercial losses at a pan-India level through the latest bagged order under the Reforms-based Results-linked Distribution Sector Scheme (RDSS).

Read more here.

Anupam Rasayan signs long-term supply contract worth Rs 380 crore

Anupam Rasayan has signed a Letter of Intent (LoI) worth $46 million (Rs 380 crore) with a major American multinational corporation to supply a new-age specialty chemical intermediate for the next five years. The company expects its share of revenues from the US to significantly increase in the coming years. The product will be manufactured in its upcoming multipurpose manufacturing facilities and is being produced in India for the first time.

Read more here.

Sun Pharma launches novel therapy CEQUA for dry eye disease in India

Sun Pharmaceutical Industries Ltd has launched its ophthalmology treatment CEQUA in the Indian market to treat Dry Eye Disease (DED). The treatment is being released by one of its wholly-owned subsidiaries using nanomicellar (NCELL) technology. CEQUA is the first DED treatment in India and has already been launched in the United States and other geographies as part of Sun Pharma’s specialty portfolio of drugs.

Read more here.

Serum Institute to double investment in Biocon Biologics to $300 million

Serum Life Sciences will make an additional equity investment of $150 million in Biocon Biologics (BBL), a subsidiary of Biocon. It had invested $150 million in Biocon Biologics in November 2022, and this additional investment will be made through the conversion of the $150 million loan provided to Biocon Pharma into equity in BBL. The total aggregate equity investment of SILS in BBL will now amount to $300 million.

Read more here.

AU SFB Q4 Results: Net profit rises 23% YoY to Rs 425 crore

AU Small Finance Bank has reported a 23% YoY increase in net profit to Rs 425 crore. The Net Interest Income (NII) also increased 37% YoY to Rs 4,425 for Q4 FY23. The bank’s total income rose 34% YoY to Rs 9,240 crore. The gross non-performing assets ratio fell to 1.7% from 1.98% in Q4 FY22. The bank’s board proposed a 10% dividend of Rs 1 per equity share for Q4 FY23. 

Read more here.

Categories
Market News Top 10 News

Bharti Airtel 5G Crosses 1Cr Unique Users – Top Indian Market Updates

Here are some of the major updates that could move the markets tomorrow:

Bharti Airtel 5G crosses 1 crore unique users

Bharti Airtel has crossed 1 crore unique 5G users since it started rolling out its network in October 2022. The company said its 5G services are present across all states and will cover every town and key rural area by the end of March 2024. The telco has created 5G experience zones across all its retail stores where customers can walk in to experience the high speeds.

Read more here.

Adani in talks for $400 million debt against Australian coal port assets: Report

According to an Economic Times (ET) report, the Adani Group has begun discussions with global credit funds to raise up to $400 million in debt against assets of a key coal port that makes up a large portion of the company’s Australian exports of the solid fossil fuel from the controversial Carmichael mine. Recent disclosures show that the Adani Group promoters own 100% equity in the Australian port asset.

Read more here.

India’s fertiliser imports up 4% to 19.04 lakh tonnes in Jan

India’s fertiliser imports in January 2023 rose 3.9% year-on-year (YoY) to 19.04 lakh tonnes, according to the Fertiliser Ministry data. Imports stood at 18.33 lakh tonnes for the same period. Domestic fertiliser production also rose to 39.14 lakh tonnes, compared to 32.16 lakh tonnes in Jan 2022.

Read more here.

Bajaj Auto plans to cut production amid uncertainties over exports: Report

Bajaj Auto is expected to take a steep cut of up to 25% in motorcycle and three-wheeler production across its export-focused plants next month. This reflects uncertainties in its biggest market, Nigeria. The company is likely to produce around 250,000-270,000 units in March, compared with an average production of 338,000 units in each of the first nine months of FY23.

Read more here.

Granules gets USFDA approval to market generic medication to treat high blood pressure

Granules India has received approval from the US Food & Drugs Administration (USFDA) to market to market Losartan Potassium tablets. It is a generic product used to treat high blood pressure. According to IQVIA/IMS Health data, the current annual US market for Losartan potassium tablets is around $336 million.

Read more here.

Dr. Reddy’s to acquire Mayne Pharma US generic portfolio for $105 million

Dr. Reddy’s Laboratories has entered into a definitive agreement to acquire Mayne Pharma’s US generic prescription product portfolio for $105 million. The company will acquire the portfolio for an upfront payment of $90 million in cash, contingent payments of up to $15 million, consideration for inventory, and credits for certain accrued channel liabilities.

Read more here.

INOX leases commercial space from Hiranandani Group

Multiplex chain operator INOX has leased nearly 21,000 sq. ft. of commercial space at realty developer Hiranandani Group’s Hiranandani Estate in Thane for a total term of 15 years. The new multiplex is currently under development in the under-construction Bellona tower at Hiranandani Estate. The tower is expected to be completed in October 2023, with the multiplex opening in Jan 2024.

Read more here.

Zomato asks for higher commission charges; restaurants are upset

Amidst widening losses, pressures on profitability, and a drop in delivery numbers in its food delivery business, Zomato has approached several restaurant chains seeking a 2-6% increase in commissions. However, restaurant operators have refused to accept the demand, triggering a fresh conflict between the two. 

Zomato’s move comes after the company reported a net loss of ₹347 crore for Q3 FY23, wider than the ₹63.2 crore loss posted a year earlier.

Read more here.

Fabindia scraps ₹4,000 crore IPO due to uncertain market conditions

Lifestyle retail brand Fabindia has withdrawn its ₹4,000-crore initial public offering (IPO) due to the current market conditions. In January 2023, the company filed the Draft Red Herring Prospectus (DRHP) with the Securities & Exchange Board of India (SEBI) for the IPO. Fabindia was planning a fresh issue of shares worth up to ₹500 crore and an offer for sale (OFS) of up to 2.5 crore shares.

Read more here.

Categories
Market News Top 10 News

Tata Motors Posts First Quarterly Profit in 2 Years – Top Indian Market Updates

Here are some of the major updates that could move the markets tomorrow:

Tata Motors Q3 Results: Net profit at ₹2,957 crore

Tata Motors Ltd reported a consolidated net profit of ₹2,957.71 crore for the quarter ended December (Q3 FY23). It posted a net loss of ₹1,516 crore in the corresponding quarter last year (Q3 FY22). Its revenue from operations rose 22.5% YoY to ₹88,488.59 in Q3 FY23. The automaker’s EBITDA stood at ₹9,900 crore, up 11% YoY. Jaguar Land Rover’s revenue rose 28% YoY to £6 billion (~₹60,250 crore) in Q3.

Read more here.

Adani Group stocks lose up to 10% after Hindenburg reveals short positions

Investment research firm Hindenburg Research published a report stating that the Adani Group had “engaged in a brazen stock manipulation and accounting fraud scheme over the course of decades”. Hindenburg said key listed companies in the group had substantial debt, which has put the entire group on an uncertain financial footing. The firm holds short positions in companies owned by billionaire Gautam Adani. Shares of Adani Group stocks fell up to 10% today after the news broke out.

Adani Group’s Chief Financial Officer, Jugeshinder Singh, said in a statement that the company was shocked by the report, calling it a “malicious combination of selective misinformation and stale, baseless and discredited allegations.”

Read more here.

Hero MotoCorp commences deliveries of electric scooter VIDA in Delhi

Hero MotoCorp has commenced deliveries of its electric scooter VIDA V1 in Delhi after having started the process in Bengaluru and Jaipur. The company is planning a rapid expansion of its sales and charging network across multiple cities coinciding with the start of the sales process. Hero MotoCorp launched VIDA V1 in October last year in two variants— Pro and Plus.

Read more here.

Sun Pharma launches phenobarbital sodium injection in US

Sun Pharmaceutical Industries Ltd launched its phenobarbital sodium injection, SEZABY, in the US. SEZABY is the first and only product approved by the US Food & Drug Administration (USFDA) for the treatment of neonatal seizures in term and preterm infants. Neonatal seizures are bursts of electrical activity in a newborn’s brain that can be a sign of brain conditions or injuries.  

Read more here.

Bajaj Auto Q3 Results: Net profit rises 23% YoY to ₹1,491 crore

Bajaj Auto Ltd reported a 23% YoY increase in net profit to 1,491.42 crore for the quarter ended December (Q3 FY23). Its revenue from operations rose 3.3% YoY to ₹9,315.14 crore during the same period. EBITDA rose by a sharp 29.4% YoY to Rs 1,777 crore in Q3. The revenue growth was moderate due to a sharp fall in exports, which offset the double-digit growth in domestic business.

Read more here.

Vi launches rural retail touchpoints

Vodafone Idea (Vi) has launched nearly 1,100 new format physical touchpoints under the name “Vi Shops” across Tier 3 markets in 18 Indian states. The telecom operator aims to protect its rural consumer base, which is increasingly emerging as a significant target of rivals Reliance Jio and Bharti Airtel. The new retail touchpoints will deliver a uniform experience to Vi’s local customers and enable quick support.

Read more here.

Dr. Reddy’s Labs Q3 Results: Net profit rises 77% YoY to ₹1,247 crore

Dr. Reddy’s Laboratories Ltd reported a 77% YoY increase in net profit to ₹1,247 crore for the quarter ended December (Q3 FY23). Its revenue from operations rose 27% YoY to ₹6,770 crore during the same period. EBITDA grew 14.3% YoY to ₹1,407.56 crore in Q3. Revenues in the global generics segment stood at ₹5,924.1 crore, up 33% YoY.

Read more here.

Happiest Minds acquires Madurai-based IT services firm SMI for ₹111 crore

Happiest Minds Technologies Ltd has acquired a 100% stake in Madurai-based Sri Mookambika Infosolutions (SMI) for ₹111 crore. With 400-plus offshore-based employees, SMI has an annual run rate in revenues of $9 million. SMI provides product engineering services to its US customers around enterprise applications & integrations, digital data platform services, and mobility services.

Read more here.

DLF Q3 Results: Net profit rises 36% YoY to ₹519 crore

DLF Limited reported a 36% YoY increase in consolidated net profit to ₹519.21 crore for the quarter ended December (Q3 FY23). Its revenue from operations rose 3.5% YoY to ₹1,494.8  crore during the same period. EBITDA was down 8.5% YoY to ₹477.2 crore in Q3. The realty company’s expenses in the quarter fell almost 5% YoY to ₹1,151.62 crore.

Read more here.

Categories
Market News Top 10 News

WPI Eases to 10.7% in Sept – Top Indian Market Updates

Here are some of the major updates that could move the markets tomorrow:

WPI eases to 10.7% in September

India’s wholesale inflation, measured by the Wholesale Price Index (WPI), eased to 10.70% in September. WPI had spiked to 12.41% in August, while the revised WPI for July stood at 14.07%. The food articles segment eased to 11.03% in September, compared to 12.37% in August. The fuel and power segment marginally fell from 33.67% in August to 32.61% last month. 

Read more here.

Federal Bank Q2 Results: Net profit rises 53% YoY to ₹704 crore

Federal Bank posted its highest-ever quarterly profit of ₹704 crore for the quarter ended September (Q2 FY23), up 53% YoY or 17% QoQ. The net interest income (NII) grew 19% YoY to ₹1,762 crore during the same period. [NII is the difference between the interest income a bank received on loans and the interest it pays depositors.] The gross non-performing assets ratio (GNPA) stood at 2.46% in Q2, compared to 2.69% in Q1. Provisions fell 9% YoY to ₹268 crore in Q2 FY23.

Read more here.

PSP Projects emerges lowest bidder for project in Gujarat

PSP Projects Ltd has emerged as the lowest (L1) bidder for a government project for developing a world-class sustainable tourist/pilgrimage destination in Gujarat. The bid value for the project is worth ₹345.30 crore. PSP Projects is one of India’s fastest-growing construction companies based in Ahmedabad, Gujarat. It provides construction services for industrial, institutional, residential, and commercial projects in India. 

Bajaj Auto Q2 Results: Net profit rises 20% YoY to ₹1,530 crore

Bajaj Auto Ltd reported a 20% YoY increase in net profit to ₹1,530 crore for the quarter ended September (Q2 FY23). Its revenue from operations rose 16.4% YoY to ₹10,202.8 crore during the same period. EBITDA rose 25.5% YoY to ₹1,759 crore. The company sold 11,51,012 units in Q2, up 0.57% YoY. Bajaj Auto saw domestic volumes nearly double from Q1 across both two-wheeler and three-wheeler segments.

Read more here.

EaseMyTrip launches SIP scheme for travel plans

Online travel platform EaseMyTrip has announced the launch of a new product line— Save Now Buy Later (SNBL). It is an investment scheme that allows customers to start a Systematic Investment Plan (SIP) for their travel plans. Customers can invest an amount as low as ₹100 on a recurring basis. Investments will get a return of up to 20% on the total invested amount exclusively from the company.

Read more here.

Unichem Labs gets USFDA approval for Phenytoin Sodium capsules

Unichem Laboratories Ltd has received abbreviated new drug application (ANDA) approval for its Extended Phenytoin Sodium Capsules USP- 100gms from the US Food & Drug Administration (USFDA). The capsules are indicated for the treatment of tonic-clonic and psychomotor seizures. It prevents seizures during or after neurosurgery. The product will be commercialised from Unichem Lab’s plant in Ghaziabad, Uttar Pradesh.

Read more here.

Shree Cement Q2 Results: Net profit falls 67% YoY to ₹183 crore

Shree Cement Ltd reported a 67.5% YoY decline in consolidated net profit to ₹183.24 crore for the quarter ended Sept (Q2 FY23). Its revenue from operations rose 19.7% YoY to ₹4,038.03 crore during the same period. Total expenses increased by 41.4% YoY to ₹3956.90 crore in Q2. The company’s board has accepted the resignation of its long-serving Chairman Benu Gopal Bangur.

Read more here.

L&T Construction secures order under its water and effluent treatment business

Larsen & Toubro Ltd’s construction arm has secured significant orders (in the range of ₹1,000-2,500 crore) under its water & effluent treatment business. It has received repeat orders from the Govt. of Gujarat to execute pumping system and pipeline works from Tappar Dam to Nirona Dam. The project aims to strengthen water resources in the Kutch district of Gujarat by filling existing reservoirs that will irrigate 36,392 hectares of land.

Read more here.

Bharti Airtel launches ‘Always On’ IoT connectivity solution

Bharti Airtel launched the ‘Always On’ Internet of Things (IoT) connectivity solution in the domestic market. The solution contains dual profile M2M (machine to machine) eSim, which allows an IoT device to stay connected to a mobile network from different Mobile Network Operators in the eSIM. It is best suited for vehicle tracking providers, auto manufacturers, and any use cases where equipment works in remote locations requiring universal connectivity.

Read more here.

Tata Elxsi Q2 Results: Net profit rises 39% YoY to ₹174 crore

Tata Elxsi Ltd reported a 39.1% YoY increase in net profit to ₹174.3 crore for the quarter ended Sept (Q2 FY23). Net profit declined by 5.5% when compared to the previous quarter. Its revenue from operations rose 28.2% YoY (or 5.1% QoQ) to ₹763.2 crore during the same period. The company crossed the 11,000-employee mark with 1,532 net additions in Q2.

Read more here.

Categories
Market News Top 10 News

CCI Clears Axis Bank-Citi Deal – Top Indian Market Updates

Here are some of the major updates that could move the markets tomorrow:

CCI clears Axis Bank-Citi deal

The Competition Commission of India (CCI) has approved Axis Bank’s proposed acquisition of Citi’s consumer business in India. Under the Rs 12,325 crore deal, the bank would take over Citi’s credit card, personal loans, and wealth management businesses. In March 2022, Axis Bank and Citi signed a definitive agreement for the deal, which is likely to be completed by September 2024. This acquisition will help Axis Bank gain access to 30 lakh new customers.

Read more here.

L&T Q1 Results: Net profit rises 45% YoY to Rs 1,702 crore

Larsen & Toubro Ltd (L&T) reported a 44.93% YoY increase in consolidated net profit to Rs 1,702.07 crore for the quarter ended June (Q1 FY23). Its revenue from operations grew 22.2% YoY to Rs 35,853.2 crore during the same period. L&T secured orders worth Rs 41,805 crore at the group level in Q1, registering a growth of 57% YoY. The group’s infrastructure project segment received order inflows of Rs 18,343 crore, up 66% YoY.

Read more here.

Sun Pharma expands tie-up with Cassiopea for acne cream to six countries

Sun Pharmaceutical Industries Ltd has expanded the scope of its partnership with Italy-based Cassiopea regarding a medication to treat acne. It has signed licensing and supply agreements for WINLEVI (clascoterone) cream 1% for six countries. Sun Pharma will receive the exclusive right to develop and commercialise WINLEVI in Japan, Australia, New Zealand, Brazil, Mexico, and Russia.

Read more here.

Bajaj Auto Q1 Results: Net profit rises 11% YoY to Rs 1,173 crore

Bajaj Auto Ltd reported a 10.5% YoY increase in net profit to Rs 1,173 crore for the quarter ended June (Q1 FY23). Net profit declined by 20% when compared to the previous quarter. Its revenue from operations grew 8% YoY to Rs 7,386 crore during the same period. EBITDA stood at Rs 8,324 crore in Q1, up 8% YoY. Bajaj Auto’s sales volumes fell 7% YoY (or 4% QoQ) to 9,33,646 units.

Read more here.

123 GW of solar capacity either commissioned or in pipeline: Govt

India has commissioned 57.71 gigawatts (GW) of solar capacity, while another 48.71 GW has been in the pipeline since June-end. Minister of State for New & Renewable Energy Bhagwanth Khuba said a solar energy capacity of 123.11 GW has either been commissioned or is in the pipeline. The government aims to achieve 100 GW solar power capacity by December 2022. Meanwhile, renewable energy projects of 60.66 GW capacity are under various stages of implementation.

Read more here.

Tata Power Q1 Results: Net profit rises 90% YoY to Rs 883 crore 

Tata Power Company Ltd reported a 90% YoY increase in consolidated net profit to Rs 883.54 crore for the quarter ended June (Q1 FY23). Its total income grew 42% YoY to Rs 14,638.78 crore during the same period. The company’s total expenses stood at Rs 14,660.14 crore in Q1, up 54% YoY. Tata Power plans a consolidated capital expenditure (capex) of Rs 14,000 crore in FY23, including a Rs 10,000 crore investment in the renewables sector.

Read more here.

Tata Motors partners with Indian Bank to provide retail car loans

Tata Motors Ltd has signed a pact with Indian Bank to facilitate financing for its passenger vehicle (PV) customers as the festive season approaches. The lender will provide customised car loans from its 5,700+ branches across India for Tata Motors’ passenger vehicle range. Customers can obtain car loans at interest rates starting at 7.8% with an option to avail of up to 90% financing of the PVs. 

Read more here.

Ujjivan SFB Q1 Results: Net profit at Rs 203 crore

Ujjivan Small Finance Bank (SFB) reported a net profit of Rs 203 crore for the quarter ended June (Q1 FY23). It had posted a net loss of Rs 233 crore in the corresponding quarter last year (Q1 FY22). Its net interest income (NII) grew 56% YoY to Rs 600 crore during the same period. The gross non-performing assets (GNPA) ratio stood at 6.51% in Q1 FY23, compared to 9.79% in Q1 FY22. The bank’s retail deposits rose 65% YoY to Rs 10,761 crore in Q1 FY23.

Read more here.

Wipro bags five-year contract from Nokia for digital transformation

Wipro Limited has signed a new five-year contract with Finnish telecom equipment maker Nokia for digital transformation. The IT major will deliver global business services in support of Nokia’s renewed operating model. It will focus on process optimisation and enhanced user & customer experience across order management, supply chain, finance, and accounting operations.

Asian Paints Q1 Results: Net profit rises 80% YoY to Rs 1,036 crore

Asian Paints Ltd reported an 80.39% YoY increase in consolidated net profit to Rs 1,036.03 crore for the quarter ended June (Q1 FY23). Its revenue from operations grew 55% YoY to Rs 8,578.88 crore during the same period. The company’s total expenses stood at Rs 7,287.84 crore, up 48.9% YoY. The domestic decorative business experienced good consumer demand and recorded stellar revenue growth in Q1.

Read more here.

Categories
Market News Top 10 News

Bajaj Auto Announces Rs 2,500 crore Share Buyback Plan – Top Indian Market Updates

Here are some of the major updates that could move the markets tomorrow:

Bajaj Auto announces Rs 2,500 crore share buyback plan

Bajaj Auto Ltd’s board has approved the buyback of shares worth up to Rs 2,500 crore. The two-wheeler manufacturer intends to buy back 54.35 lakh shares (aggregating up to 1.88% of the total paid-up share capital) via the open market at Rs 4,600 per share. The buyback price is a 20.64% premium to Friday’s closing price of Rs 3,812.80.

Read more here.

India’s petroleum products’ export falls 1% in May: Oil Ministry data

India’s total export of petroleum products fell 1% year-on-year (YoY) to 5.7 million metric tonnes (MMT) in May 2022. Exports had risen 22% YoY in April as demand soared in the domestic market. Imports increased 14% YoY to 3.2 MMT in May, compared to 3.8 MMT in April. Diesel and petrol make up three-fourths of India’s petroleum products exports in terms of volume, while LPG comprises 40% of imported fuels.

Read more here.

TTK Prestige acquires 40% stake in Ultrafresh Modular Solutions

TTK Prestige Ltd will acquire a 51% majority stake in Ultrafresh Modular Solutions (UMS). This move mark’s the company foray into the fast-growing modular kitchen solutions segment. TTK Prestige has invested nearly Rs 20 crore to acquire a 40% stake in UMS. It will invest another Rs 10 crore to acquire a further 11% stake. The acquisition is in line with TTK Prestige’s overall goal of becoming a total kitchen solutions brand.

Read more here.

Aurobindo Pharma receives SEBI’s warning letter over ongoing USFDA audit

Aurobindo Pharma Ltd has received a warning letter from the Securities & Exchange Board of India (SEBI) for non-disclosure of details related to an ongoing audit of one of its manufacturing units in Hyderabad and observations made by the US Food and Drug Administration (USFDA). The warning letter observes that the company had “disclosed very limited and restricted information”. It also did not disclose detailed reasons for the audit and did not consider the observations of USFDA as serious.

Read more here.

ISRO’s optical imaging system technology transferred to Paras Defence & Space

New Space India Ltd (NSIL) has signed a letter of intent (LoI) with Paras Defence and Space Technologies Ltd for transferring the ‘Optical Imaging System’ technology developed by the Indian Space Research Organisation (ISRO). The tech will be handed over through a Technology Transfer Agreement for the development, manufacturing, and sale of Optical Imaging Systems in India and abroad.

Maruti Suzuki bets big on hybrids over EVs

Maruti Suzuki India Ltd (MSIL) stated that electric vehicles (EVs) are not the solution for decreasing carbon emissions, at least not immediately. The automaker believes that vehicles powered by hybrid technology, natural gas, and biofuels will be much better options than EVs as India generates ~75% of its electricity from coal. MSIL is planning to launch its first hybrid car under a partnership between Suzuki Motor Corp and Toyota within 12 months.

Read more here.

Adani Enterprise’s arm raises Rs 6,000 crore loan to set up greenfield copper plant

Kutch Copper Ltd (KCL), a subsidiary of Adani Enterprises Ltd, has secured a debt of Rs 6,071 crore. The funds will be utilized towards setting up a copper refining capacity of 0.5 million tonnes per annum (MTPA) as part of Phase-1 of the greenfield plant. The total planned capacity is 1 MTPA in two phases. KCL aims to boost the production of refined copper, which plays a vital role in strengthening India’s shift towards renewables and EVs.

Read more here.

M&M launches all-new Scorpio-N; price starts at Rs 11.99 lakh

Mahindra & Mahindra (M&M) Ltd has launched the all-new seven-seat Scorpio-N SUV in the Indian market. The prices of the manual variants of the SUV start at Rs 11.99 lakh and go up to Rs 19.49 lakh (ex-showroom). Bookings will start on July 30, 2022, at dealerships and M&M’s online website. Deliveries are set to commence during the festive season.

Read more here.

Categories
Market News Top 10 News

India’s Industrial Output Grows 7.1% in April – Top Indian Market Updates

Here are some of the major updates that could move the markets tomorrow:

India’s industrial output grows 7.1% in April

India’s index of industrial production (IIP) grew 7.1% YoY to 135.1 in April 2022, compared to a growth of 1.9% in March. The mining sector rose by 7.8% year-on-year (YoY) to 116.0 in April, the manufacturing sector witnessed a growth of 6.3% to 132.5, and the electricity sector climbed 11.8% to 194.5. 

Read more here.

Actis acquires road assets of Welspun Enterprises for Rs 6,000 crore

UK-based global investor Actis has acquired a portfolio of six operating highway toll road projects from Welspun Enterprises Ltd for an enterprise value of $775 million (~Rs 6,000 crore). The projects are located strategically across India, including in the most prominent North-South highway corridor. The portfolio benefits from a stable mix of annuity and toll cash flows.

Read more here.

Alembic Pharma gets USFDA approval for cancer treatment drug

Alembic Pharmaceuticals Ltd has received approval from the US Food & Drug Administration (USFDA) to market Dasatinib tablets. The drug is used to treat certain types of leukemia (cancer of the blood cells). As per IQVIA data, Dasatinib tablets had an estimated market size of $1,465 million for the twelve months ended December 2021.

Read more here.

Coal India to import 6 MT more coal to meet power demand

Coal India Ltd has issued two tenders to import 6 million tonnes (MT) of coal in the next 12 months to meet surging power demand in India. This follows another tender issued on Thursday to import 2.42 MT of the dry fuel for delivery in July-September. These two medium-term import tenders of 3 MT each of coal have the option of increasing the bid quantity by 100% to 12 MT.

Read more here.

Strides Pharma gets USFDA nod for Ibuprofen suspension

Strides Pharma Science Ltd has received approval from the USFDA to market Ibuprofen OTC Oral Suspension in the US markets. Ibuprofen is a nonsteroidal anti-inflammatory drug used as a painkiller in conditions like headache, dental pain, menstrual cramps, muscle aches, or arthritis. The product will be manufactured at the pharma company’s facility in Bengaluru.

Read more here.

Bajaj Auto’s arm inaugurates new EV manufacturing plant in Pune

Bajaj Auto’s wholly-owned subsidiary, Chetak Technology Ltd. (CTL), inaugurated its new EV manufacturing plant at Akurdi, Pune. CTL and its vendor partners will invest ~Rs 750 crores in this new facility. Its production capacity will be swiftly increased to manufacture 5 lakh electric two-wheelers per year.

Read more here.

India’s peak power demand all-time high of 210,793 MW

India’s electricity demand touched a record high of 210,793 megawatts (MW) on Thursday as several regions in the north faced severe heatwave conditions. The highest demand until last year was 200,570MW, recorded on July 7, 2021. This year, the government is projecting peak electricity demand to go up to 215,000 MW once monsoon sets in large parts.

Read more here.

Total passenger vehicle sales rise 185% YoY in May: SIAM

According to newly released data from the Society of Indian Automobile Manufacturers (SIAM), total passenger vehicle (PVs) sales in May 2022 rose 185% YoY to 2,51,052 units. Three-wheeler sales jumped multifold to 28,542 units in May 2022, compared to 1,262 units in May 2021. Two-wheeler sales rose over 253% YoY to 12,53,187 units.

Read more here.

Indian crude oil basket hits 10-year high

The basket of crude oil that India buys has hit a 10-year high of $121 per barrel, but retail selling prices of petrol and diesel continue to remain unchanged. The Indian basket on June 9 touched $121.28, matching levels seen in February/March 2012. International oil prices held near a 13-week high on Thursday, supported by robust demand from key buyers like the US.

Read more here.

Categories
Market News Top 10 News

HUL Reports 9% YoY Rise in Net Profit in Q4 – Top Indian Market News

HUL Q4 Results: Net profit rises 9% YoY to Rs 2,327 crore

Hindustan Unilever Ltd (HUL) reported an 8.6% YoY increase in net profit to Rs 2,327 crore for the quarter ended March (Q4 FY22). Its revenue from operations rose 10.4% YoY to Rs 13,190 crore during the same period. The FMCG company’s home care segment grew 24% YoY in Q4, while its foods & refreshment segment grew 5%. HUL’s board has declared a dividend of Rs 19 per share.

Read more here.

NTPC partners with Energy Vault for gravity-based energy storage tech

NTPC Limited has signed a Memorandum of Understanding (MoU) with Switzerland-based Energy Vault Holdings, Inc. The two entities aim to deploy gravity-based energy storage technology and software solutions based on the outcome of a joint feasibility study. The technology also offers beneficial utilization of coal ash for manufacturing composite blocks for Energy Vault’s energy storage system.

In other news, NTPC will raise Rs 1,500 crore by issuing non-convertible debentures (NCDs) on a private placement basis on Friday. The proceeds will be utilised for funding capital expenditure and refinancing existing loans.

Read more here.

ONGC signs pact with Equinor for E&P, clean energy

Oil & Natural Gas Corporation (ONGC) signed a pact with Norwegian energy giant Equinor ASA for collaboration in oil and gas exploration and production as well as clean energy projects. The two entities will collaborate in the field of upstream oil and gas, midstream, marketing, and trading. They will also explore options in low carbon fuel, renewables, Carbon Capture Storage (CCS) solutions, etc.

Read more here.

IEX Q4 Results: Net profit rises 45% YoY to Rs 88 crore

Indian Energy Exchange (IEX) reported a 45% YoY increase in net profit to Rs 88 crore for the quarter ended March (Q4 FY22). Net profit rose 10% when compared to the previous quarter. Its revenue from operations rose 19% YoY to Rs 112 crore during the same period. EBITDA stood at Rs 95 crore, up 23% YoY. The company’s board has declared a final dividend of ₹1 per share.

Bajaj Auto Q4 Results: Net profit falls 2% YoY to Rs 1,526 crore

Bajaj Auto Ltd reported a 2% YoY decline in consolidated net profit to Rs 1,526 crore for the quarter ended March (Q4 FY22). Its revenue from operations fell 7% YoY (or 11.35% QoQ) to Rs 7,974.84 crore during the same period. Bajaj Auto sold 3,89,155 units domestically in Q4, registering a 27% YoY decline. The company’s board has declared a dividend of Rs 140 per share.

Read more here.

Lupin partners with Yabao to market pediatric formulations in China

Lupin Ltd has partnered with Yabao Pharmaceutical Co. Inc. to meet the growing demand for quality drugs with pediatric formulations in the Chinese market. The latest Chinese pediatric pharma market report indicates that the market for pediatric drugs in China was pegged at ~$33 billion in 2021, growing at a rate of 9.23%. Yabao is a leading pharma company with fully integrated development, manufacturing, and commercialization in China.

Read more here.

Mahindra Logistics Q4 Results: Net profit falls 9% YoY to Rs 11 crore

Mahindra Logistics Ltd reported a 9% YoY decline in net profit to Rs 11 crore for the quarter ended March (Q4 FY22). Net profit jumped 119% when compared to the previous quarter. Its revenue from operations rose ~10% YoY to Rs 1,073 crore during the same period. EBITDA stood at Rs 54.96 crore, up 19% YoY. Mahindra Logistics’ board has declared a dividend of Rs 2 per share.

Read more here.

TVS Motor partners with Rapido to expand hyperlocal mobility

TVS Motor Company has announced a strategic partnership with Bengaluru-based on-demand delivery and mobility platform Rapido. The two entities will collaborate by leveraging synergies of their respective businesses in India’s fast-moving mobility market. The partnership will cover two-wheeler and three-wheeler vehicles. It will also extend across internal combustion engine (ICE) and electric vehicle (EV) segments.

Read more here.

Bharti Airtel acquires 7% stake in NaaS startup Cnergee Technologies

Bharti Airtel has acquired a 7% stake in Navi Mumbai-based cloud-based networking solutions provider Cnergee Technologies. This move will enable Airtel to sharpen its Network as a Service (NaaS) proposition for Small & Medium Businesses (SMBs) looking to accelerate their shift to cloud-based applications. Cnergee Technologies has developed a range of 5G-ready software tools for NaaS that can be deployed at scale.

Read more here.

Centre offers higher fertilizer subsidy for Kharif season

The Central government has announced nutrient-based subsidy rates for phosphatic and potassic fertilizers for the upcoming Kharif crop season. The new subsidy rates translate to over a 50% YoY increase in the subsidy given per bag of fertilizer. The higher fertilizer subsidies will help farmers cushion the impact of rising global prices. The Union Cabinet also approved the construction of the 540 megawatts (MW) Kwar Hydro Electric project in Jammu & Kashmir. 

Read more here.

HDFC AMC Q4 Results: Net profit rises 8.7% YoY to Rs 343.5 crore

HDFC Asset Management Company (AMC) reported an 8.7% YoY increase in net profit to Rs 343.55 crore for the quarter ended March (Q4 FY22). Net profit fell 5% when compared to the previous quarter. Its total income rose 6.5% YoY to Rs 580.93 crore during the same period. HDFC AMC’s board has declared a dividend of Rs 42 per share.

Read more here.

Categories
Editorial

India’s Electric Two-Wheeler Market: An Analysis

Electric two-wheelers (E2Ws) have become widely popular in India. Over the past few years, numerous companies have launched long-range, efficient scooters and e-bikes to meet the rising demand. There is a wide variety of super affordable E2Ws available in the market today. The total registered sales of E2Ws jumped 132% year-on-year (YoY) to 2,33,971 units in 2021! Things are definitely looking up for India’s EV revolution.

In this piece, we dive into India’s electric two-wheeler market and the leading companies involved in it.

Hero Electric

Hero Electric is the largest player in the Indian electric two-wheeler market. The company launched its first lithium-ion battery-based scooter in 2017. It operates more than 600 dealership networks across 325 cities in the country. 

The Gurugram-based firm offers around 9 different E2W models, with a price range of Rs 46,640 to Rs 83,940. In 2021, Hero Electric sold around 46,260 units. The company sold ~6,058 units of E2Ws in just December alone. They have partnered with several online retail and logistics firms to offer last-mile services.   

Hero Electric has secured a market share of 30-31% in the Indian electric E2W market. In the upcoming years, the company aims to expand its production capacity, invest in new technologies, and enhance its footprint across markets.

Ather Energy

Established in 2013, Ather Energy Pvt. Ltd is an Indian electric vehicle startup. It is backed by Hero MotorCorp, which holds around a 32% stake. The company has raised more than $160 million (~Rs 1,200 crore) since its inception.

The Bengaluru-based e-scooter manufacturer offers two premium models in India— the 450X and 450 Plus. It registered total sales of 15,921 units in the calendar year 2021 and holds an 11% market share.

Ather Energy has started working on new variants of electric scooters that will offer a longer range and better value for money. It also aims to raise more funds to ramp up its annual production capacity to one million scooters over the next three years. They have also announced plans to install 5,000 fast chargers across India and increase its network to 600 stores.

TVS Electric Mobility

TVS Electric Mobility Ltd is the EV arm of TVS Motor Company Ltd. It has entered into a partnership with BMW Motorrad to co-produce electric vehicles. It had also forged a strategic collaboration with Tata Power to set up electric charging infrastructure across our country. 

TVS iQube is the first electric two-wheeler launched by the TVS Group. It posted annual sales of 5,976 units in 2021.

Bajaj Auto Ltd

In January 2020, Bajaj Auto Ltd launched the electric version of its iconic scooter Chetak in two variants: Urbane and Premium. With this rollout, the company has been able to gain a ~4% market share in the electric two-wheeler space. 

The two- and three-wheeler manufacturer aims to double the network for its e-scooter Chetak in the coming weeks. It had initially opened bookings in eight cities in 2021 and had already added 12 new cities in the network in the first six weeks of 2022. They had also announced plans to invest Rs 300 crore to ramp up its EV production capacity. As per reports, Bajaj Auto has started testing a new electric scooter which is expected to be announced shortly. 

Ola Electric

Ola Electric Mobility is an Indian electric two-wheeler manufacturer based in Bangalore. The company made news in December 2021 when it announced the launch of the Ola S1 and Ola S1 Pro e-scooters. They recorded one lakh bookings for its e-scooters within just 24 hours of opening. However, it sold just 1,102 E2Ws in January. Ola Electric has been hit with production delays. Some customers are also unhappy with the quality of the electric scooters delivered to them.

Last month, Ola Electric raised $200 million (~Rs 1,490.5 crore) in funding at a valuation of $5 billion. 

The Way Ahead

The sales of electric scooters more than doubled in 2021, mainly due to high fuel prices that pushed Indian citizens to look for alternatives. Various subsidies from the government (such as the FAME initiative) have helped narrow the price gap between electric and petrol scooter models. Unfortunately, electric models made up just 1% of total Indian motorcycle and scooter sales of 1.45 crore units last year. The government aims to increase this share to reach 40% by 2030, as it looks to reduce its oil imports and counter pollution.

As we know, the electric vehicle (EV) segment is still at an evolutionary stage in India. As per a report by investment banking firm Avendus Capital, the EV market is estimated to be a Rs 50,000 crore opportunity in India by 2025. Moreover, two- and three-wheelers are expected to drive higher electrification of vehicles in the medium term. India’s rising startups and legacy automakers together have committed investments of more than Rs 10,000 crore over the next 3-5 years towards their electric two-wheeler business! However, the EV battery swapping and charging infrastructure has to improve significantly across India.

What are your views on the E2W market? Do you own an electric scooter? Let us know in the comments section of the marketfeed app.