Tag: bharat forge

Categories
Market News Top 10 News

Adani Lenders Consider $750 Million Loan For Ambuja Cements – Top Indian Market Updates

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

Adani lenders consider up to $750 million loan for Ambuja debt

Barclays Plc, Deutsche Bank AG and Standard Chartered Plc are in talks to lend between $600 million and $750 million collectively to Adani Group. The loan is part of discussions to refinance the debt taken to fund its purchase of Ambuja Cements Ltd. The loan would be syndicated. If executed, the loan of as much as $750 million would be part of that broader refinancing. The talks haven’t yet concluded, and the amounts could still change. 

Read more here.

Bajaj Finserv Q1 Results: Net profit rises 48% YoY to ₹1,943 crore

Bajaj Finserv reported a 48.4% YoY rise in consolidated net profit to ₹1,943 crore for the quarter ended June (Q1 FY24. The company’s net profit in the same quarter last year was ₹1,309 crore. Its operating revenue also rose 47% YoY to ₹23,280 crore during the same period. Its subsidiary, Bajaj Finance reported the highest-ever quarterly increase in its customer franchise of 3.84 million and the highest-ever new loans booked of 9.94 million in Q1FY24.

Read more here.

Sona BLW Precision Q1 Results: Net profit rises 47% to ₹112 crore

Sona BLW Precision reported a 47% YoY increase in consolidated net profit to ₹112 crores for the June quarter (Q1 FY24). Its revenue from operations rose 25.17% YoY to ₹731 crore during the same period. The company’s board approved an investment of ₹99.7 crores for capacity expansion of its Chennai plant from 4 lakh to 6 lakh electric vehicle traction motors. It also decided to add a new capacity of 5 lakh units of printed circuit board assembly by 2024-2025.

Read more here.

US FDA concerns in Lupin’s Goa, Pithampur facilities are now resolved

Drug Ltd has received correspondence from the US Food & Drug Administration (USFDA) that it has now addressed the concerns raised in the warning letter for its facilities in Goa and Pithampur Unit-2, Indore. This comes after the satisfactory evaluation of the corrective actions taken by Lupin. The actions were in response to the Warning Letter issued by the US FDA on November 6, 2017.

Read more here.

IEX Q1 Results: Net profit rises 10% YoY to ₹76 crore

Indian Energy Exchange Ltd (IEX) reported a 10% YoY increase in consolidated net profit to ₹10 crore for the June quarter (Q1 FY24). Its total income stood at ₹127 crore during the same period, up 12.3% YoY. EBITDA grew marginally to ₹82 crore in Q1FY24 from ₹81 crore in Q1FY23. Recently, IEX witnessed a steep fall in its share price that could be related to the Central Electricity Regulatory Commission’s plan to initiate market coupling.

Read more here.

Cipla promoters in talks to sell part stake to private equity firms

According to a CNBC TV18 report, Cipla’s promoters are in talks with private equity firms to sell a part of their total holding in the company. At present, The promoters own a 33.47% stake in the company. An investment bank has been hired to advise on the deal. Furthermore, Private Equity (PE) firms like Blackstone and Baring Asia are amongst others that are in talks to explore a deal. 

Read more here.

Bharat Forge receives approval to participate in potential defence programs in future

Bharat Forge Ltd has received approval to participate in potential defence programs in future. The license is granted by the Ministry of Home Affairs (MCA) under Arms Rules, 2016. The approval is for small arms and ammunition. Bharat Forge serves several sectors including Automotive, Railways, Aerospace, Marine, Oil & Gas, Power, Construction and Mining. It is among the largest forging companies globally.

Read more here.

L&T says it will pay back to shareholders if the cash surplus is much higher than requirement

Larsen & Toubro will return money to shareholders if the cash surplus is much higher than the company’s requirements. L&T’s CFO, R Shankar Raman’s declaration of the company’s willingness to return surplus cash to shareholders showcases Larsen & Toubro’s commitment to financial prudence and shareholder value. 

Read more here.

Kalpataru Projects International, subsidiaries bag orders worth ₹2,261 crore

Kalpataru Projects International and its subsidiaries have bagged orders worth ₹2,261 crore. These new contracts include orders in the T&D (transmission and distribution) business of ₹2,036 crore in overseas markets. Besides, it also got a cross-country oil & gas pipeline project in India of ₹225 crore. It is currently executing projects in over 30 countries and has a presence in 70 nations.

Read more here.

BPCL still in talks for Russian oil deal, discounts narrow

Bharat Petroleum Corp is still in talks with Russian oil major Rosneft to buy oil under a term deal. According to a Reuters report from last month, BPCL is in talks to buy up to 6 million metric tons of Russian oil under a term deal with Rosneft. Indian refiners have been snapping up discounted Russian oil since many other countries imposed sanctions on Moscow after it invaded Ukraine. The discounts make Russian oil cheaper than similar grades from the Middle East.

Read more here.

Categories
Jargons

Which are the Best Defence Stocks in India?

The Indian defence and aerospace sector is about to undergo a transformation that would allow it to firmly establish a position among other global industries. Our government is now favouring domestic defence equipment development over imports. Indian companies have been encouraged and assisted in designing, developing, and producing a wide range of military systems and platforms. This is thanks to the policy framework that our government has put in place over the past ten years. In this article, we provide insight into the defence sector of India and the best defence stocks to watch out for. 

An Overview of India’s Defence Sector

  • India is on its way to becoming self-sufficient in the large-scale production of military aircraft, vehicles, missile systems, arms and ammunition, etc.
  • The Defence Ministry’s budgetary allotment was increased by 13% to ₹5.94 lakh crore in Budget 2023–24.  This shows a very large potential for growth in the defence sector.
  • Our government is all set to spend nearly ₹6 lakh crore on defence equipment in Financial Year 2024. And 99% of this equipment will be sourced from Indian industries. Much to the US and Russia’s dismay, India’s defence imports are shrinking due to the emergence of the Indian defence industry. 
  • India is also close to procuring weapons for the Indian Armed Forces worth ₹70,500 crore ($8.7bn), which will all be Made in India. India’s defence imports declined by 11% between 2013-17 and 2018-22, and this decline was linked to a complex procurement process.
  • India bagged an export order worth $155 million for 155-mm artillery guns and another deal for supplying Teevra 40-mm guns to the Indonesian Navy. Armenia signed a $250 million contract for India’s Pinaka missiles.
  • The govt continues to promote joint ventures between Indian and international businesses to carry out co-development, share innovations, and manufacture goods for both domestic use and export.

India is very close to becoming a defence manufacturing hub as it supplies equipment and ammunition to the world. 

Top Defence Stocks in India to Watch Out For:

Sl. NoDefence Companies5-Year Stock Return
1Hindustan Aeronautics Ltd.385%
2Bharat Electronics Ltd270%
3Bharat Dynamics Ltd242%
4Mazagon Dock Shipbuilders Ltd.982%.  
5.Cochin Shipyard Ltd.56% 
(Returns as of July 20, 2023)

1. Hindustan Aeronautics Ltd.

Established in 1940, Hindustan Aeronautics Limited (HAL) is engaged in the design, development, manufacture, repair, and servicing of aircraft, helicopters, aero engines, and aerospace structures in India.  It falls under the administrative control of the Ministry of Defence. HAL has designed and manufactured some of the most advanced Light Combat Aircraft (such as “Tejas”) and helicopters for the Indian Armed Forces. The company gets exclusive contracts from the space, defence, and civil industries around the world.

HAL has delivered good profit growth of 23.9% CAGR over the last 5 years and maintained a healthy dividend payout of 26.8%. This defence stock has given a healthy return of 385%  in 5 years.

2. Bharat Electronics Ltd.

Bharat Electronics Ltd. (BEL) meets the specialised electronic equipment requirements of the Indian Armed Forces. The company designs, manufactures, supplies, and exports electronic equipment and systems for the defence and civilian markets.  BEL’s defence products include communication systems, land-based radars, naval systems, electronic warfare systems, tank & armoured fighting vehicle electronic systems, and much more. The company has partnered with DRDO laboratories to design and produce customised defence systems.  

BEL has been maintaining a healthy dividend payout of 40.5% The company is also nearly debt free. The stock has given a return of 270% in 5 years. However, it has seen a very slow growth in its sales, ranging only about 11% in the past five years. 

The Defence Ministry has also inked two contracts worth over Rs 3,700 crore with the public sector undertaking (PSU) for radars and receivers that will enhance the operational capabilities of the Indian Air Force. 

3. Bharat Dynamics Ltd.

Bharat Dynamics (BDL) is a Government of India Enterprise. It is engaged in the manufacturing of guided missiles and allied defence equipment. The company’s product portfolio includes surface-to-air missiles, anti-tank guided missiles, underwater weapons, launchers, countermeasures, and mechanised infantry weapons. 

The business is expected to deliver a strong quarter and is almost debt-free. The corporation has continued to pay out a solid 41.7% in dividends. However, it has delivered a poor sales growth of -11.5% over the past five years and a low return on equity of 13.1% over the last 3 years. The stock return has been 242% over the past 5 years.

The state-owned aerospace and defence company said it entered into 10 deals with several foreign and Indian companies during Aero India, 2023.

4. Mazagon Dock Shipbuilders Ltd. 

Mazagon Dock Shipbuilders Ltd is primarily engaged in building & repairing ships, submarines, and various types of vessels and related engineering products for various domestic and international clients. It began operations in 1934 as a private corporation and was taken over by the Indian government in 1960.

The company is expected to give a good quarter and has delivered good profit growth of 19.5% CAGR over the last 5 years. This defence stock has given a 5-year return of 982%.  Shipbuilding accounted for around 89% of the company’s sales as of 2020, followed by the sale of base and depot supplies (8%) and ship maintenance (3%).

5. Cochin Shipyard Ltd.

Cochin Shipyard Ltd (CSL) manufactures and repairs boats for the Indian Navy, Coast Guard, and private entities. In 2013, this shipyard launched INS Vikrant, the nation’s first indigenous aircraft carrier.

The company has been maintaining a healthy dividend payout of 27.6%.  It has delivered a poor sales growth of -0.21% over the past five years. CSL’s stock has gained 56% over the past 5 years. 

CSL has signed a contract for building six Next Generation Missile Vessels (NGMV) for the Indian Navy for Rs 9,805 crore with the delivery of ships set to begin in 2027.

More Defence Stocks in India:

Other prominent defence stocks in India include:

  1. Ashok Leyland – It is one of the top suppliers of trucks or armoured vehicles for the Indian army.
  2. Larsen & Toubro – Over the years, L&T has designed, developed, and manufactured arms, military equipment, and even submarines.
  3. Astra Microwave Products – The company supplies microwave-based high-value radio frequency super components.
  4. Bharat Forge –  As per reports, the company may start supplying artillery guns to the Indian army.
  5. Apollo Microsystems – The company provides custom-built electronics and electro-mechanical solutions to the defence sector.
  6. Reliance Naval & Engineering – The company has entered into a warship repair agreement with the Ministry of Defence.

In conclusion, the Indian defence sector offers potential investors a favourable environment. By examining the top defence stocks, we have explored companies with strong financial performance, market reputation, and growth potential. The sector is on the rise, fueled by more expenditure on defence and favourable government policies, and this presents appealing investment prospects. With careful consideration, investing in the best defence stocks in India can be a strategic move with significant potential for long-term gains.

Disclaimer: The defence stocks mentioned in the article are solely for educational purposes. Please do your own research before investing.

Categories
Market News Top 10 News

Britannia’s Net Profit Rises 47% YoY to Rs 559Cr in Q4 – Top Indian Market Updates

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

Britannia Q4 Results: Net profit jumps 47% YoY to Rs 559 crore

Britannia Industries reported a 47% YoY increase in consolidated net profit to Rs 559 crore for Q4 FY23. Its operating revenue rose 13% YoY to Rs 4,023 crore during the quarter. EBITDA stood at Rs 800 crore, up 45.7% YoY from Rs 550 crore in Q4FY22.

Read more here.

India’s forex reserves rise by $4.53 billion to $588.78 billion

India’s foreign exchange reserves increased by $4.53 billion to $588.78 billion as of April 28, 2023, according to the Reserve Bank of India (RBI). Foreign currency assets rose by $4.99 billion to $519.48 billion. However, the country’s gold reserves fell by $4.94 million to $45.65 billion.

Read more here.

Federal Bank Q4 Results: Net profit jumps 67% YoY to Rs 903 crore

Federal Bank reported a 67% YoY jump in net profit to Rs 903 crore for Q4 FY23. Its consolidated total revenue rose 38.6% YoY to Rs 5,780 crore during the quarter. The bank’s Net Interest Income (NII) for the quarter stood at Rs 1,909 crore, up 25.2% YoY. The bank’s board has recommended a dividend of Rs 1 per equity share.

Read more here.

Marico Q4 Results: Net profit jumps 19% YoY to Rs 305 crore

Marico reported a 19% YoY increase in consolidated net profit to Rs 305 crore for Q4 FY23. Its operating revenue increased 3.65% YoY to Rs 2,240 crore during the quarter. EBITDA stood at Rs 393 crore in Q4 FY23, up 14% YoY. However, its net profit fell by 8.41% compared to Q3FY23.

Read more here.

Dr Reddy’s Labs launches Regadenoson injection in the US market

Dr. Reddy’s Laboratories has launched Regadenoson injection, a generic therapeutic equivalent of Lexiscan injection, in the US market. The injection is used in imaging heart muscle to check blood flow. However, the company has also received one observation from the US FDA after a routine GMP inspection at its API manufacturing facility in Bollaram, Hyderabad.

Read more here.

ITC increases stake in Bengaluru-based Sproutlife Foods

ITC has increased its shareholding in Sproutlife Foods to 39.42% after acquiring 2,443 equity shares and 7,215 Compulsorily Convertible Preference shares. The transaction was worth Rs 175 crore. ITC had previously announced plans to acquire a 100% stake in Sproutlife in tranches over the next three to four years. Sproutlife is a Bengaluru-based start-up in the innovative food products sector.

Read more here.

Lupin acquires entire stake in French pharma company Medisol

Lupin Ltd has acquired French pharmaceutical company Medisol for €18 million, subject to approval from the French Ministry of Economy and Finance. The acquisition will give Lupin access to Medisol’s portfolio of seven injectable products across four therapeutic areas, including pain management, anti-inflammatory, cardiovascular diseases, and obstetrics.

Read more here.

Bharat Forge Q4 Results: Net profit falls 7% YoY to Rs 245 crore

Bharat Forge reported a 7% YoY fall in net profit to Rs 245 crore for Q4 FY23. Its operating revenue increased 19.3% YoY to Rs 1,997 crore from Rs 1,674 crore during the same period. EBITDA stood at Rs 488 crore in Q4 FY23, up 13.2% YoY. The company’s board has recommended a dividend of Rs 5.5 per equity share.

Read more here.

MSCI assigns lower weight for the merged entity of HDFC Bank and HDFC 

MSCI will add HDFC Bank to the large-cap segment of its Global Standard Indices following its merger with HDFC. The move is expected to lead to no significant inflows, but there may be slight outflows of up to $200 million, according to Nuvama Alternative & Quantitative Research. As a result, MSCI will delete HDFC from its Global Standard Indexes at the end of the stock’s last trading day.

Read more here.

Blue Star declares 1:1 bonus issue of shares 

Blue Star has announced a 1:1 bonus issue of shares. This means that every shareholder of the company will be given an additional share. The move is subject to approval by shareholders, with the record date to be decided by the Board following this. The bonus issue aims to increase retail participation in the stock and the equity base.

Read more here.

Categories
Market News Top 10 News

Retail Inflation Eases to 3-Month Low of 6.77% in Oct – Top Indian Market Updates

Consumer Price Index

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

Retail inflation eases to 3-month low of 6.77% in Oct

India’s retail inflation, measured by the Consumer Price Index (CPI), fell to a three-month low of 6.77% in the month of October. The retail inflation in September stood at 7.41%. Inflation in the food basket showed a fall from 8.6% in Sept to 7.01% in October. Inflation in the fuel & light segment rose 9.93%, while the clothing & footwear segment gained 10.16% last month. Meanwhile, wholesale price-based inflation (WPI) fell to a 19-month low of 8.39% in October. 

Read more here.

Grasim Q2 Results: Net profit falls 17% YoY to ₹1,097 crore

Grasim Industries Ltd reported a 17% year-on-year (YoY) decline in consolidated net profit to ₹1,097 crore for the quarter ended Sept (Q2 FY23). Its revenue from operations rose 22% YoY to ₹27,486 crore during the same period. EBITDA stood at ₹3,783 crore in Q2, down 12% YoY. The company received a dividend of ₹628 crore from its subsidiary UltraTech Cement during Q2.

Read more here.

Voltas enters technology license agreement with Denmark’s Vestfrost Solution

Voltas Ltd has entered into a technology license agreement with Denmark-based Vestfrost Solutions to develop, manufacture, sell, and service medical refrigeration and vaccine storage equipment in India. This includes advanced products like ice-lined refrigerators, vaccine freezers, and ultra-low temperature freezers. This partnership will leverage the strong brand presence and wide sales and distribution network of Voltas.

Read more here.

Godrej Industries Q2 Results: Net profit rises 9% YoY to ₹156 crore

Godrej Industries Ltd reported a 9% YoY increase in consolidated net profit to ₹156 crore for the quarter ended Sept (Q2 FY23). Its revenue from operations rose 22.59% YoY to ₹4,021 crore during the same period. The company’s total expenses stood at ₹4,099 crore in Q2, up 23.2% YoY. Its board has approved a proposal to raise up to ₹2,000 crore by issuing non-convertible debentures (NCDs).

Read more here.

Tata Sons initiates process to bring all airlines under Air India wings

Tata Sons has initiated the consolidation of its airline entities Vistara, AirAsia India, and Air India Express under Air India. This move will make Air India the second-largest airline in the country in terms of fleet and market share. The Tata group will have a low-cost carrier and a full-service airline under Air India, which will be the only airline brand in the group following the merger

Read more here.

IRCTC Q2 Results: Net profit rises 43% YoY to ₹226 crore

Indian Railway Catering & Tourism Corp. (IRCTC) reported a 43% YoY increase in net profit to ₹226.03 crore for the quarter ended Sept (Q2 FY23). Its revenue from operations rose 99% YoY to ₹805.8 crore during the same period. Total expenses jumped 152% YoY to ₹524.33 crore in Q2. Revenue from internet ticketing stood at ₹300.25 crore, up 13.17% YoY.

Read more here.

L&T Infotech, Mindtree merge to make India’s fifth-largest IT company

The L&T Group announced the merger of L&T Infotech (LTI) and Mindtree into ‘LTI-Mindtree’ with immediate effect. With this, the combined entity will become the sixth-largest IT services firm by revenue and the fifth-largest in terms of market value. Shareholders of Mindtree Ltd will get 73 LTI shares for every 100 shares they hold after the merger.

Read more here.

Bharat Forge Q2 Results: Net profit falls 48% YoY to ₹141 crore

Bharat Forge Ltd reported a 48% YoY decline in consolidated net profit to ₹141.6 crore for the quarter ended Sept (Q2 FY23). Its revenue from operations rose 29% YoY to ₹3,076.4 crore during the same period. The company’s margins contracted sharply due to elevated raw material, finance, and employee costs. Its board has declared an interim dividend of ₹1.5 per share.

Read more here.

Centre ready to bring petrol under GST but states unlikely to agree: Petroleum Minister

The Central govt. is ready to bring fuel under GST but the states (for whom fuel and liquor are major revenue generators) are unlikely to agree to such a proposal, said Union Minister Hardeep Singh Puri. With regard to fuel prices, the minister said India has seen one of the lowest rises in prices in the past year. US fuel prices rose by 43% in one year but India only saw a 2% rise.

Read more here.

Tata Motors, Cummins Inc to offer solutions in hydrogen-powered commercial vehicle space

Tata Motors has partnered with US-based Cummins Inc to offer solutions in the hydrogen-powered commercial vehicle space. Under the pact, both entities will collaborate on the design & development of low and zero-emission propulsion technology solutions for commercial vehicles in India. This includes hydrogen-powered internal combustion engines, fuel cells, and battery electric vehicle systems.

Read more here.

Categories
Market News Top 10 News

IndusInd Bank’s Net Profit Rises 57% YoY in Q2 – Top Indian Market Updates

Indusind Bank

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

IndusInd Bank Q2 Results: Net profit rises 57% YoY to ₹1,805 crore

IndusInd Bank reported a 57.3% YoY increase in net profit to ₹1,805.2 crore for the quarter ended Sept (Q2 FY23). The net interest income (NII) grew 18% YoY to ₹4,302 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) improved to 2.11% in Q2, compared to 2.35% in Q1. Provisions fell 33% YoY to ₹1,141 crore in Q2 FY23.

Read more here.

BEL signs MoU with Triton to manufacture hydrogen fuel cells

Bharat Electronics Ltd has signed a Memorandum of Understanding (MoU) with US-based Triton Electric Vehicle (TEV) to manufacture of hydrogen fuel cells. BEL will manufacture the cells using the technology transfer from TEV. This would also help to meet the requirements of the Indian market and mutually agreed-upon export markets.

Read more here.

Nestle India Q3 Results: Net profit rises 8% YoY to ₹668 crore

Nestle India Ltd reported an 8.3% YoY increase in net profit to ₹668.34 crore for the quarter ended Sept (Q3 CY22). The FMCG company follows the January-December financial year cycle. Its revenue from operations rose 18.24% YoY to ₹4,591 crore during the same period. E-commerce contributed 7.2% to the quarterly sales. Nestle India’s board has declared an interim dividend of ₹120 per share.

Read more here.

Bharat Forge, General Atomics to develop Li-Ion battery system

Bharat Forge Ltd has signed an agreement with US-based technology major General Atomics to collaborate and develop a Lithium-Ion battery system for the Indian Navy. The two entities have also agreed to partner in the area of permanent magnet motors. The pact was signed on the sidelines of the DefExpo in Gandhinagar, Gujarat. 

Read more here.

UltraTech Cement Q2 Results: Net profit falls 42% YoY to ₹758 crore

UltraTech Cement reported a 42% YoY decline in consolidated net profit to ₹758.7 crore for the quarter ended Sept (Q2 FY23). Its revenue from operations rose 15.61% YoY to ₹13,892.69 crore during the same period. The cement manufacturer’s total expenses stood at ₹12,934.27 crore in Q2, up 26.68% YoY. Total sales volume rose 7% YoY to 23.10 million metric tonnes (MMT).

Read more here.

REC, PFC to provide ₹8,520 crore finance for 1,320 MW thermal power plant at Buxar

State-owned REC Ltd and Power Finance Corporation (PFC) have signed a pact to provide ₹8,520.92 crore to SJVN Thermal Pvt Ltd to set up a 1,320 megawatts (MW) thermal power plant at Buxar (UP). The total estimated project cost is ₹12,172.74 crore, with a debt requirement of ₹8,520.92 crore. REC and PFC will finance the total debt requirement.

Read more here.

INOX Leisure Q2 Results: Net loss at ₹40 crore

INOX Leisure Ltd reported a consolidated net loss of ₹40.37 crore for the quarter ended Sept (Q2 FY23). The multiplex operator posted a net loss of ₹87.66 crore in Q2 FY22. Its revenue from operations jumped 688% YoY to ₹374.12 crore in Q2 FY23. Total expenses stood at ₹434.24 crore in Q2, up 155% YoY. The company plans to add 11 properties and 47 screens in the current financial year (FY23).

Read more here.

Reliance Retail partners with 50+ traditional sweets makers

Reliance Retail Ventures Ltd has entered distribution partnerships with over 50 regional sweets makers across India to distribute, mass produce, modernise packaging, and develop traditional Indian sweets with extended shelf life. These packaged mithais will be placed at all Reliance grocery stores such as Smart Bazaar, Smart, and other grocery formats. It will also be available on Reliance Retail’s e-commerce platform JioMart.

Read more here.

Havells India Q2 Results: Net profit falls 38% YoY to ₹187 crore

Havells India reported a 38% YoY decline in net profit to ₹187 crore for the quarter ended Sept (Q2 FY23). Its revenue from operations rose 14% YoY to ₹3,679 crore during the same period. The company’s revenue from its cable business rose 18.8% YoY to ₹1,359 crore in Q2. EBITDA stood at ₹286 crore, down 36% YoY

MakeMyTrip, Goibibo, OYO fined ₹392 crore by CCI for unfair business practices

The Competition Commission of India (CCI) had slapped penalties totaling ₹392 crore on online travel firms MakeMyTrip-Goibibo (MMT-Go) and hospitality services provider OYO for unfair business practices. It was alleged that MMT-Go imposed a price parity in their agreements with hotel partners.

Under such pacts, hotel partners are not allowed to sell their rooms on any other platform or on their own online portal at a price below the price at which it is being offered on the two entities’ platforms.

Read more here.

Categories
Market News Top 10 News

Tata Motors’ Net Loss Widens in Q1 – Top Indian Market Updates

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

Tata Motors Q1 Results: Net loss widens to Rs 4,951 crore

Tata Motors reported a consolidated net loss of Rs 4,950.97 crore for the quarter ended June (Q1 FY23). The automaker had posted a net loss of Rs 4,450.12 crore in Q1 FY22 and a loss of Rs 992.05 crore in Q4 FY22. Its revenue from operations fell 8.3% YoY to Rs 71,934 crore in Q1 FY23. The sharp increase in losses is primarily due to inflation, lockdowns in China, chip supply issues, and volatile commodity prices. 

Sales of passenger vehicles surged 101.7% YoY to 1,30,351 units in Q1 FY23, while commercial vehicle sales jumped 104.1% YoY to 95,900 units.

Read more here.

Govt received bids worth Rs1.49 lakh crore in spectrum sale

The Indian Government has raised Rs 1,49,454 crore from the auction of 5G spectrum at the end of day two, said telecom minister Ashwini Vaishnav. The sale will most likely end on Thursday. On day one, the govt received around Rs 1.45 lakh crore, driven by the 700 MHz band, which saw bidding for the first time. Reliance Jio, Bharti Airtel, and Vodafone Idea have bid for mid and high-end airways to launch 5G services.

Read more here.

Bajaj Finance Q1 Results: Net profit jumps 159% YoY to Rs 2,596 crore

Bajaj Finance Ltd reported a 159% YoY jump in consolidated net profit to Rs 2,596 crore for the quarter ended June (Q1 FY23). Its net interest income (NII) grew 48% YoY to Rs 6,638 crore during the same period. The gross non-performing assets (GNPA) ratio stood at 1.25% in Q1 FY23, compared to 2.96% in Q1 FY22. The company’s total assets under management stood at Rs 2,04,018 crore in Q1 FY23, up 28% YoY.

Read more here.

DGCA orders SpiceJet to cut flights by half for safety

The Directorate General of Civil Aviation (DGCA) has ordered SpiceJet Ltd to operate only 50% of its flights for eight weeks after an unusually high number of safety incidents involving the airline. SpiceJet said this order would not have any impact on its flights in the lean travel season and flights won’t be cancelled. During these eight weeks, the airline would be subjected to DGCA’s “enhanced surveillance”.

Read more here.

Maruti Suzuki Q1 Results: Net profit jumps 118% YoY to Rs 1,036 crore 

Maruti Suzuki India Ltd (MSIL) reported a 118% YoY jump in consolidated net profit to Rs 1,036 crore for the quarter ended June (Q1 FY23). Its revenue from operations grew 49% YoY to Rs 26,499.8 crore during the same period. The automaker sold 4,67,931 units in Q1, up 32.3% YoY. MSIL also reported its highest ever exports at 69,437 units. A shortage of electronic components in Q1 resulted in the non-production of nearly 51,000 vehicles.

Read more here.

Dr. Reddy’s Labs launches cancer treatment injection Bortezomib in the US

Dr. Reddy’s Laboratories Ltd has announced the launch of Bortezomib for Injection (3.5 mg per 10 ml single-dose vial) in the U.S. market. The injection is indicated for the treatment of adult patients with multiple myeloma and mantle cell lymphoma (cancer). As per IQVIA data, the generic version of the drug had sales of approx. $1.2 billion in the U.S market during the 12 months ended May 2022.

Read more here.

Dixon Tech Q1 Results: Net profit jumps 152% YoY to Rs 45 crore

Dixon Technologies Ltd reported a 152% YoY jump in consolidated net profit to Rs 45.4 crore for the quarter ended June (Q1 FY23). Its revenue from operations grew 52.89% YoY to Rs 2,855.07 crore during the same period. Total expenses stood at Rs 2,793.44 crore in Q1, up 51.52% YoY.

Read more here.

Tech Mahindra, Genesys to license imagery data for Google Street View in India

Google has announced a partnership with Tech Mahindra Ltd and mapping firm Genesys International to launch the Street View product of Google Maps in India. The US-based tech major will license imagery data for Street View from Tech Mahindra and Genesys and won’t own the data itself. The product will be available in Bengaluru, Chennai, Delhi, Mumbai, and six other cities from today.

Read more here.

Bharat Forge’s arm partners with Talgo for manufacturing high-speed trains

BF Infrastructure (a subsidiary of Bharat Forge Ltd) has partnered with Talgo India to set up a joint venture (JV) that will engage in the manufacturing of high-speed passenger trains. The JV is expected to address future large business opportunities in the Indian Railways sector. It will also tap the upcoming domestic requirements in the field. Talgo is a wholly owned subsidiary of Spain-based high-speed passenger train manufacturer Patentes Talgo.

Read more here.

Laurus Labs Q1 Results: Net profit rises 4% YoY to Rs 251 crore

Laurus Labs reported a 4% YoY (or 9% QoQ) increase in net profit to Rs 251 crore for the quarter ended June (Q1 FY23). Its revenue from operations grew 20% YoY to Rs 1,539 crore during the same period. The pharma company’s operating profit was up 15% YoY to Rs 454 crore in Q1. The active pharmaceutical ingredients (API) business reported a revenue of Rs 583 crore, up 6% YoY.

Read more here.

Categories
Market News Top 10 News

Manufacturing PMI Weakens to 53.9 in June – Top Indian Market Updates

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

Manufacturing PMI weakens to 53.9 in June

India’s manufacturing activity expanded at the slowest pace in nine months in June as high inflation rates dampened demand and production. The S&P Global India Manufacturing Purchasing Managers’ Index (PMI) stood at 53.9 in June 2022, compared to 54.6 in May. Sluggish increases in production, factory orders, and employment dragged down the PMI. 

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

Read more here.

Auto sales data for June 2022: Highlights  

Maruti Suzuki India posted a 5.76% year-on-year (YoY) increase in total sales to 1,55,857 units in June 2022. Sales of its compact vehicle segment rose 6.8% YoY to 92,188 units. Exports rose 40% YoY to 23,833 units.

Tata Motors Ltd registered an 82% YoY jump in total sales to 79,606 units in June. The automaker’s commercial vehicle sales rose 69% YoY to 37,265 units. Overall passenger vehicle wholesales rose 87% YoY to 45,197 units.

Mahindra & Mahindra’s passenger vehicle segment posted total sales of 26,880 units in June, an increase of 59% YoY. M&M’s exports rose 7% YoY to 2,777 units. 

Bajaj Auto posted a 0.25% YoY increase in total sales to 3,47,004 units in June.  

Read more here.

Coal India registers record 29% growth in output in Q1

Coal India Ltd (CIL) registered a 29% YoY growth in output to 159.8 million tonnes (MT) in the April-June quarter (Q1) of FY23. CIL’s supplies to the power sector rose to a record 153.2 MTs during the quarter, registering a growth of 19.8% YoY. Coal output for June 2022 stood at 51.6 MT, an increase of 29% YoY.

Read more here.

Engineers India signs agreement with CSIR-CSIO

Engineers India Ltd has signed an agreement with CSIR-Central Scientific Instruments Organisation (CSIO) for the joint commercialisation of an earthquake warning system. The “EqWS” system, developed by CSIR-CSIO, is being used by Delhi Metro Rail Corp since August 2015. This agreement will help both entities increase the scope of application areas such as critical infrastructures/installations.

Read more here.

NTPC commissions India’s largest floating solar power project

NTPC Limited has commissioned a 100 megawatt (MW) floating solar photovoltaic (PV) plant in Ramagundam, Telangana. The project’s reservoir spans 500 acres and was built at a cost of Rs 423 crores. One floating platform and an array of 11,200 solar modules make up each block. The presence of floating solar panels also reduces the rate of water evaporation from water bodies, aiding in water conservation.

Read more here.

Import duty on gold hiked to 15% to curb shipments

The Indian government has hiked import duty on gold from 10.75% to 15% in an effort to curb imports as the rupee slumped to a record low. It has also raised the basic import tax on gold from 7.5% to 12.5%. The country is currently staring at higher trade and current account deficits amidst volatile global macroeconomic conditions.

The Centre has also imposed special additional excise duty/cesses on exports of petrol and diesel at Rs 6 per litre and Rs 13 per litre, respectively. A cess of Rs 23,250 per tonne (by way of special additional excise duty) has been imposed on crude.

Read more here.

JB Chemicals acquires pediatric brands from Dr. Reddy’s for Rs 98.3 crore

JB Chemicals & Pharmaceuticals Ltd has acquired four pediatric domestic formulation brands from Dr. Reddy’s Laboratories Ltd for Rs 98.3 crore. The four brands are zinc supplement Z&D, insomnia medication Pedicloryl, antibiotic Pecef, and Ezinapi (used against diaper rashes). The four brands combined had sales of Rs 33 crore in the previous financial year (FY22).

Read more here.

Endurance Tech buys 51% stake in Maxwell Energy to boost foray into EV products

Auto component maker Endurance Technologies Ltd has acquired a 51% stake in Mumbai-based Maxwell Energy Systems Pvt. Ltd for Rs 135 crore. The remaining 49% stake will be purchased in a phased manner in five rounds, spread over the next five financial years. This acquisition will facilitate Endurance Tech’s foray into an electric vehicle (EV)-centric product line as an early participant to offer battery management systems (BMS) to automakers.

Read more here.

Bharat Forge, subsidiary complete acquisition of JS Autocast

Bharat Forge Ltd and its subsidiary BF Industrial Solutions have completed the acquisition of Coimbatore-based JS Autocast Foundry India Pvt. Ltd for Rs 489.63 crore. JS Autocast supplies critical machined ductile castings for wind, hydraulic, off-highways, and automotive applications.

Read more here.

SBI’s gold loan portfolio crosses Rs 1 lakh crore mark

State Bank of India’s gold loan portfolio has crossed the Rs 1 lakh crore mark for the first time. The bank has a 24% market share in gold loans in India. It is bullish on growth in the segment as gold provides investors a safe investment option amid rising inflation.

Read more here.

Categories
Market News Top 10 News

Tata Power Secures Solar Project Worth Rs 1,731 crore – Top Indian Market News

Tata Power secures solar project worth Rs 1,731 crore

Tata Power Solar Systems (TPSS) has secured an order worth Rs 1,731 crore to build a 300 megawatt (MW) solar project for NHPC Ltd. The project, which will be developed in Rajasthan, is expected to generate ~750 million units (MUs) annually. It will be completed within 18 months. Tata Power’s pending order book has now reached Rs 13,500 crore. Its total utility-scale solar project portfolio has touched 9.7-gigawatt power (GWp).

Read more here.

Ami Organics Q4 Results: Net profit rises 38% YoY to Rs 21 crore

Ami Organics Ltd reported a 38.18% YoY increase in consolidated net profit to Rs 21.28 crore for the quarter ended March (Q4 FY22). Net profit rose 9.3% when compared to the previous quarter. Its revenue from operations grew 54.54% YoY to Rs 143.54 crore during the same period. Ami Organics’ board has declared a final dividend of Rs 3 per share.

Read more here.

SJVN to develop 490 MW Arun-4 hydel power project in Nepal

SJVN Limited will develop a hydro power (Arun-4) worth Rs 4,900 crore in Nepal. The project will be established as a joint venture between SJVN and Nepal Electricity Authority (NEA). It will generate around 2,100 million units (MUs) of energy per annum. This will be the third mega project to be constructed by SJVN in Nepal. The company aims to have 5,000 MW projects in Nepal by 2030.

Read more here.

Bharat Forge Q4 Results: Net profit rises 9% YoY to Rs 232 crore

Bharat Forge Ltd reported a 9% YoY increase in consolidated net profit to Rs 231.86 crore for the quarter ended March (Q4 FY22). Its revenue from operations grew 71.5% YoY to Rs 3,573.09 crore during the same period. Total expenses stood at Rs 3,295.61 crore, up 79% YoY. The company’s board has declared a final dividend of Rs 5.5 per share.

Read more here.

BEL to manufacture battery packs for Triton electric trucks

The Pune unit of Bharat Electronics Ltd (BEL) will manufacture lithium-ion battery packs for the electric trucks of US-based Triton. Triton recently signed a pact with the Gujarat State Government for setting up an EV truck manufacturing hub, with a commitment to invest around Rs 10,800 crore over five years. BEL is among the five organisations that will invest in this EV manufacturing hub at Bhuj, Gujarat.

Read more here.

RateGain Travel Tech Q4 Results: Net profit at Rs 11.61 crore

RateGain Travel Technologies Ltd (RTTL) reported a consolidated net profit of Rs 11.61 crore for the quarter ended March (Q4 FY22). It had posted a net loss of Rs 5.83 crore in the corresponding quarter last year (Q4 FY21). Its total income rose 45.2% YoY to Rs 113.98 crore during the same period. RTTL is one of the largest Software-as-a-Service (SaaS) companies in India’s hospitality and travel industry.

Hero MotoCorp expects two-wheeler industry to see double-digit growth in FY23

Hero MotoCorp expects the two-wheeler industry to bounce back in the current financial year (FY23), with economic activity picking up and high grain prices augmenting rural incomes. With macroeconomic indicators looking positive, the company expects the industry to grow in double digits in FY23. Better finance options could also boost sales growth going ahead. Hero MotoCorp will unveil its first electric product on July 1, 2022.

Read more here.

Raymond Q4 Results: Net profit jumps 366% YoY to Rs 263 crore

Raymond Ltd reported a 366% YoY jump in consolidated net profit to Rs 263.31 crore for the quarter ended March (Q4 FY22). Net profit rose 162.57% when compared to the previous quarter. Its revenue from operations grew 43% YoY (or 7% QoQ) to Rs 1,958 crore during the same period. EBITDA stood at Rs 284 crore, up 84% YoY. Raymond’s board has declared a dividend of Rs 3 per share.

Adani Group to become India’s second-largest cement maker with Holcim deal

Adani Group has signed a binding agreement to acquire a controlling stake in Holcim AG’s cement businesses in India for $10.5 billion (~Rs 81,361 crore). The group will acquire Holcim’s 63.19% stake in Ambuja Cements Ltd and its subsidiary ACC Ltd. With this acquisition, Adani will become the second-largest cement manufacturer in India, with a capacity of 70 metric tonnes per annum.

Read more here.

Categories
Market News Top 10 News

Infosys Launches Metaverse Foundry – Top Indian Market News

infosys | market updates

Infosys launches Metaverse Foundry; to help enterprises with metaverse adoption

Infosys Ltd has launched a Metaverse Foundry to ease and fast-track enterprises’ exploration of the metaverse. The exploration also includes virtual and augmented environments for the customers, workplace, products, and operations. The IT company has already developed 100 use cases and is actively working with clients on the same. The Foundry utilizes the power of technologies like AR/VR, blockchain, NFT, IoT, applied AI, cybersecurity, and 5G to advance value exploration in the metaverse.

Read more here.

Bharti Airtel acquires stake in blockchain tech startup Aqilliz

Bharti Airtel Ltd has acquired a strategic stake in Aqilliz, a ‘Blockchain as a Service’ company. The telecom major aims to deploy Aqilliz’s blockchain technologies at scale across its fast-growing adtech (Airtel Ads), digital entertainment (Wynk Music and Airtel Xstream), and digital marketplace (Airtel Thanks App) offerings. Aqilliz has developed a patented hybrid blockchain platform called ‘Atom’. It integrates differential privacy and federated learning on a distributed digital ledger.

Read more here.

Bharat Forge to acquire JS Autocast Foundry India

Auto component manufacturer Bharat Forge Ltd announced that it will acquire JS Autocast Foundry India. The company, along with its subsidiary, BF Industrial Solutions, has entered into a definitive agreement to acquire JS Auto. JS Auto is a leading supplier of machined ductile iron castings for wind, hydraulic, off-highway, and automotive applications.

Read more here.

Indian stock exchanges to implement T+1 settlement cycle from Feb 25

Indian stock exchanges will be moving to T+1 settlement from February 25 in a phased manner. T+1 means that trade-related settlements will be done within one day of the completion of a transaction. Currently, trades on Indian stock exchanges are settled in two working days after the transaction is completed (T+2). Initially, only 100 small-cap stocks will be placed under the new settlement cycle. You can read more about the T+1 settlement cycle here.

Read more here.

TCS launches Cyber Defence Suite

Tata Consultancy Services (TCS) has announced the launch of its Cyber Defense Suite. It is a set of modular cybersecurity services offered on a platform. The integrated platform will secure enterprises amid their digital transformation journeys. It provides 360-degree visibility and predictive intelligence to proactively defend and respond against evolving risks. TCS has over 10,000 cyber specialists and more than 12 Threat Management Centers distributed across the world.

Read more here.

IOC buys first Russian Urals crude in two years after prices fall

Indian Oil Corporation Ltd (IOC) has bought Russian Urals crude for the first time in two years after spot differentials declined sharply. The opportunity for India to buy more of the Russian flagship-grade crude arose after its discount to global benchmark Brent fell to the lowest since 2005. Global oil prices surged after Russia invaded Ukraine, aggravating concerns of oil supply disruption. 

Read more here.

Ashoka Buildcon secures project worth Rs 693 crore from Northeast Frontier Railway

Ashoka Buildcon Ltd has received a Letter of Acceptance (LoA) from Northeast Frontier Railway for a project involving electrification of railway lines in Assam. The accepted offer of the project is Rs 692.50 crore. The contract period is 900 days.

Read more here.

Centre signs Rs 1,075 crore contract with BEL for T-90 tank retro-modification

The Ministry of Defence has signed a contract for Rs 1,075 crore with Bharat Electronics Ltd (BEL) for the retro-modification of Commander Sight of Battle Tanks-T-90. The retro-modification will be carried out in 957 T-90 tanks of the Indian Army. This will provide a further boost to the ‘Make in India’ initiative of the Indian government.

Read more here.

Apollo Hospitals partners with VR platform company 8chili Inc

Apollo Hospitals Group has announced a collaboration with 8chili, Inc to enable engagement in the metaverse. The initiative will enable patient counseling in virtual reality (VR) and help increase patient outcomes. It will also engage users in VR-mediated activities to empower their abilities to regulate emotion. US-based 8chili is a deep-tech startup that builds the underlying infrastructure for metaverse content creation and distribution.

Read more here.

Categories
Market News Top 10 News

Tata Steel Commissions First Steel Recycling Unit in Rohtak – Top Indian Market News

Tata Steel commissions first steel recycling unit in Rohtak

Tata Steel Ltd has commissioned a 0.5 million tonnes per annum (MTPA) steel recycling plant at Rohtak, Haryana. The plant has been set up in collaboration with Aarti Green Tec as a Build, Own, and Operate (BOO) partner. The first-of-a-kind facility is equipped with modern and mechanised equipment such as shredder, baler, and material handler. The scrap will be procured from sources such as end-of-life vehicles, obsolete households, construction & demolition, industries, through an app called FerroHaat.

Read more here.

Pizza Hut partners with HUL to add Kwality Wall’s ice cream, desserts to menu

Pizza Hut has partnered with Hindustan Unilever Ltd to add the FMCG firm’s Kwality Wall’s ice cream and desserts to its dine-in, delivery, and takeaway menu. With this partnership, Pizza Hut expects to increase its average order value by 10% for orders that have Kwality Wall’s ice cream and desserts. Pizza Hut has become the first-ever quick service restaurant (QSR) chain to offer ice creams and desserts across its owned and aggregator platforms.

Read more here.

Subex secures five-year contract from Dhiraagu

Subex Ltd has secured a five-year contract from Dhiraagu to implement an integrated revenue assurance and fraud management (iRAFM) solution. Dhiraagu is a leading telecom operator in the Maldives. Through the deployment, Dhiraagu will upgrade its systems and consolidate its standalone assurance functions to better equip itself for the 5G era. Subex is expected to help replace the operator’s existing systems with new and advanced software to improve their processes and enhance customer experience.

Read more here.

Bharat Forge to enter EV space with 2-wheelers and 3-wheelers

Bharat Forge Limited is set to enter the electric vehicle (EV) space with two-wheelers and three-wheelers in the current financial year (FY22). The launch will further highlight how companies are rushing to tap the upcoming and thriving EV market. Tork Motors, an associate company of Bharat Forge, has met the subsidy requirements specified for Phase 2 of the Faster Adoption and Manufacturing of Electric Vehicles (FAME-II). Bharat Forge is a leading manufacturer of forged and machined components in India.

Cabinet approves Rs 11,040 crore scheme to reduce edible oil import dependency

The Union Cabinet has approved the launch of a new mission to boost palm oil production, the National Mission on Edible Oils— Oil Palm (NMEO-OP), with an outlay of Rs 11,040 crore. The scheme aims to reduce India’s dependence on imported edible oil. The central scheme will have a special focus on the north-eastern region and the Andaman and Nicobar Islands. The new scheme aims to have an additional area of 6.5 lakh hectares under oil palm by FY26.

Read more here.

Telecos, vendors, chipmakers term 5Gi as risky technology

Bharti Airtel, Vodafone Idea, and top smartphone makers and chipset vendors have termed the Indian 5G standard, 5Gi, as a risky technology. Their consistent persuasion to conduct an objective and holistic assessment of the standard within the Telecommunications Standards Development Society India (TSDSI) was met with outright rejection. In their joint submission to the Department of Telecommunications (DoT), leading telecom companies and chipset makers have urged the Telecommunication Engineering Center (TEC) to conduct theoretical verification and field-level validation of performance gains of the 5Gi standard.

Read more here.

Tejas Networks clarifies on reports of its business exposure in Afghanistan

Tejas Networks Ltd has issued a statement in which the company clarified on reports of having business exposure in crisis-hit Afghanistan, where the Taliban has taken control of the country’s capital Kabul. The company stated that there are no customer orders from Afganistan that are pending execution. There are also no outstanding receivables from customers in the country. Further, Tejas Networks said it has no employees located in the region.

Read more here.

Tega Industries files DRHP for IPO

Mining company Tega Industries has filed a Draft Red Herring Prospectus (DRHP) with market regulator SEBI to raise funds via an initial public offering (IPO). The company is expected to raise around Rs 700-750 crore through the IPO. The issue will entirely consist of an offer for sale (OFS) of up to 13.66 lakh equity shares (of the face value of Rs 10 each) by promoters and existing shareholders. Kolkata-based Tega Industries is part of MM Group of Companies. It provides customised solutions to the mining, bulk mineral handling, and slurry transportation industries.

Read more here.

Categories
Market News Top 10 News

Tata Steel Reports 34% QoQ Rise in Net Profit in Q1 – Top Indian Market News

Tata Steel Q1 Results: Net profit at Rs 8,907 crore

Tata Steel Ltd reported a consolidated net profit of Rs 8,907 crore for the quarter ended June (Q1 FY22). It had posted a net loss of Rs 4,416 crore in Q1 FY21 and a net profit of Rs 6,644 crore in the previous quarter (Q4 FY21). Its revenue from operations jumped 109.5% YoY to Rs 53,372 crore in Q1 FY22. The company posted its highest-ever EBITDA of Rs 16,185 crore during the quarter, registering a growth of 25.7 times YoY (or 13.3% QoQ). Tata Steel’s crude steel production rose 54.8% YoY to 4.63 million tonnes (MT) in Q1.

Read more here.

Bharat Forge Q1 Results: Net profit at Rs 153 crore

Bharat Forge Ltd reported a consolidated net profit of Rs 153.7 crore for the quarter ended June (Q1 FY22). It had posted a net loss of Rs 125.8 crore in Q1 FY21 and a net profit of Rs 208.6 crore in Q4 FY21. Its revenue from operations rose 82.6% YoY (or 1.2% QoQ) to Rs 2,107.7 crore in Q1 FY22. EBITDA stood at Rs 454.6 crore during the same period, recording a growth of 20.7% quarter-on-quarter (QoQ). Bharat Forge completed the acquisition of Sanghvi Forgings for Rs 77.06 crore in Q1.

Read more here.

Tata Power Solar secures Rs 386 crore contract in Leh

Tata Power Solar has secured a contract worth Rs 386 crore to build a 50 megawatt (MW) solar photovoltaic (PV) plant with a 50 MWh battery energy storage system (BESS) project at Phyang village in Leh, Ladakh. The commercial operation date for this project is set for March 2023.  This will be India’s first co-located large-scale BESS solution as well as the first large-scale solar PV project in the union territory of Ladakh. Tata Power Solar is a wholly-owned subsidiary of Tata Power Company Ltd. 

Read more here.

IRCTC Q1 Results: Net profit at Rs 82 crore

Indian Railway Catering & Tourism Corp Ltd (IRCTC) reported a net profit of Rs 82.5 crore for the quarter ended June (Q1 FY22). It had posted a net loss of Rs 24.6 crore in Q1 FY21 and a net profit of Rs 103.7 crore in Q4 FY21. Its revenue from operations rose 85.4% YoY to Rs 243 crore in Q1 FY22. IRCTC’s board has approved the proposal for the split of 1 share at a face value of Rs 10 each into 5 shares at a face value of Rs 2 each (1:5 ratio).

Read more here.

BPCL Q1 Results: Net profit declines 28% YoY to Rs 1,502 crore

Bharat Petroleum Corp Ltd (BPCL) reported a 27.6% YoY decline in net profit to Rs 1,501.6 crore for the quarter ended June (Q1 FY22). Net profit has declined by 87.4% when compared to the previous quarter. Its revenue from operations rose 77% YoY to Rs 89,687 crore during the same period. BPCL’s gross refining margin stood at $4.12 per barrel in Q1 FY22, compared to $0.39 per barrel in Q1 FY21.

Read more here.

CCI directs Grasim Industries to cease, desist from unfair business practices

The Competition Commission of India (CCI) has directed Grasim Industries to cease and desist from indulging in unfair business practices after it found that the company had abused its dominant position with respect to the supply of certain staple fibre. CCI said Grasim had been charging discriminatory prices for the staple fibre. In a regulatory filing dated August 9, Grasim Industries said, “While the company is yet to receive certified copy of the said order (from CCI), it believes that on merits it has sufficient grounds for an appeal”.

Read more here.

Eicher Motors Q1 Results: Net profit at Rs 237 crore

Eicher Motors Ltd reported a consolidated net profit of Rs 237.1 crore for the quarter ended June (Q1 FY22). It had posted a net loss of Rs 55.2 crore in Q1 FY21. Net profit has declined by 55% when compared to the previous quarter (Q4 FY21). Its revenue from operations jumped 141% YoY (but declined by 33% QoQ) to Rs 1,974.3 crore in Q1 FY22. The company’s sales declined by 40% QoQ to Rs 1.24 lakh unit in the April-June quarter of FY22.

Read more here.

Natco Pharma Q1 Results: Net profit declines 39% YoY to Rs 75 crore

Natco Pharma Ltd reported a 38.9% YoY decline in consolidated net profit to Rs 75 crore for the quarter ended June (Q1 FY22). Net profit has increased by 41.5% when compared to the previous quarter. Its total income declined by 26.6% YoY (but increased by 18.7% QoQ) to Rs 427.3 crore during the same period. The pharma company’s board has recommended an interim dividend of Rs 2 per share.

Read more here.

Hero MotoCorp Q1 Results: Net profit jumps 498% YoY to Rs 365 crore

Hero MotoCorp Ltd reported a 498% YoY jump in net profit to Rs 365 crore for the quarter ended June (Q1 FY22). Net profit has declined by 58% when compared to the previous quarter. Its revenue from operations rose 85% YoY (but declined by 37% QoQ) to Rs 5,487 crore during the same period. The motorcycle maker’s total sales declined by 35% QoQ to 10.24 lakh units in the April-June quarter of FY22.

Read more here.

PFC Q1 Results: Net profit rises 28% YoY to Rs 4,554 crore

Power Finance Corporation (PFC) reported a 28% YoY increase in net profit to Rs 4,554 crore for the quarter ended June (Q1 FY22). Its total income rose 12% YoY to Rs 18,973.93 crore during the same period. PFC’s board has approved an interim dividend of Rs 2.25 per share. State-owned PFC is the financial backbone of the Indian power sector.

Read more here.

Categories
Editorial

Rolex Rings IPO: All You Need To Know

rolex rings ipo

It’s raining IPOs once more! Rolex Rings Limited has decided to get listed. Its IPO begins today on July 28 and ends on July 30. Rolex Rings makes bearing rings and automotive components that are used in all sorts of vehicles as well as other industrial processes. The company has big names like Ford and General Motors on its client roster. 

 A bearing ring comes in all shapes and sizes. It is used in cranes, axles of vehicles, and even at a baggage belt at the airport. India’s bearing market is worth Rs 12,000 crore, with close to 60% of total demand being met domestically and 40% through imports.

Bearing Rings Used In Various Industrial Processes

Can a company specialized in making something as common as a bearing ring make it up in the capital markets? In this piece, we explore what the company does, and what it has to give to its investors. 

IPO Details

What Does Rolex Rings Do?

A family-run firm started in 1975, Rolex Rings Limited is in the business of making hot rolled forged and machined bearing rings, and automotive components. These are used in two-wheelers, passenger vehicles, commercial vehicles, off-highway vehicles, electric vehicles (EVs), industrial machinery, wind turbines and railways, amongst other segments.

It is one of the top five forging companies in India, the largest being Bharat Forge. Forging and Machining are processes used to shape metals or strengthen them according to industrial needs. Rolex Rings makes forged components for use in the automotive industry and other industrial applications. 

Rolex Rings is based in Rajkot, Gujarat. The company has three manufacturing facilities based in Rajkot itself, with an annual achievable capacity of 144,750 million tons per annum (MTPA) in forging and 6.9 crore parts per annum in machining.

Bearing Rings contribute nearly ~53% and Automotive Components nearly ~37% to the total revenue of the company. In 2021, the top 10 customers contributed nearly 72.6% to the total revenue.

Exports accounted for nearly ~56% of the total revenue. Globally, Rolex Rings caters to nearly 60 clients across 17 countries like the USA, France, Germany, Italy, Thailand. 

How Strong Is Rolex Rings’ Financial Position?

Financial Performance Of Rolex Rings (All Amount In Indian Rupees Crore)

Between 2019 and 2021:

  • Total Assets Increased by ~2%
  • Total Revenue Decreased by ~32%
  • Profit After Tax Increased by ~47%
  • Total Debt fell by ~35% from Rs 385 crore in 2019  to Rs 250 crore in 2021

A close look at the other listed forging companies reveals that Bharat Forge is the largest competitor in terms of revenue. However, Rolex tops the list when it comes to Return on Net Worth it offers. Its Price To Earnings ratio, based on the issue price is anywhere between 23-28x, which is moderate compared to industry peers. 

Risks

  • The company has had issues paying back its lenders in the past. It defaulted on loan payments in 2013 and entered corporate debt restructuring (CDR) with public sector banks. The company has also delayed repaying working capital and interest in the past. 
  • Top 10 customers contribute nearly ~73 percent to total revenue. Such a concentration in the client base is a risk in case the company has a fallout with some. 
  • Close to ~56% of the revenue comes from abroad. In case of fierce competition or adverse conditions, the company’s balance sheet can be impacted.
  • The promoters of the company have pledged their shares to take other loans. In case they fail to pay these loans, the shares can be transferred to someone else. This can have an adverse impact on the financial and operational condition of the company.  

What Next?

The company has said that it is going to use Rs 45 crores raised from the IPO for funding long-term working capital requirements and the rest of it for general corporate purposes. 

The company has moderately good finances, neither too bad, nor too impressive. The company’s debt history seems a little dicey. Yet, the company has its presence in the international market as well. If the economy recovers faster from the economic impact of the second wave of COVID-19 and the third wave is evitable, the company can benefit from an increase in automobile sales and industries reopening. 

The GMP or Grey Market Premium of Rolex ring is anywhere between Rs 450 to Rs 500. This means that the shares traded at Rs 500 more than the expected listing price. It seems that the company has received some good interest in the Grey Market. 

Are you going to apply for the IPO? Do you think the company can give some really good returns? You can let us know in the comment section available in the marketfeed app available exclusively for Android and iOS.