Tag: BPCL

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

History of India’s Volatile Oil Prices and Taxes

Petrol and diesel prices have crossed Rs 100/litre across most cities in India. There are many reasons behind it like the petrol supply crunch and the OPEC+, UAE, and Saudi dispute. Another factor that has been eating into pockets of Indian citizens that goes unnoticed is how the government taxes oil. As an estimate, for every Rs 100 worth of petrol you buy, you are paying close to Rs 60 to central and state governments as tax. The figure keeps varying with time. Indians pay some of the highest taxes in the world on fuel. 

In this piece, we decode the history of petrol prices in India, how it stands in the world forum, and how the government acts on it.  

History Of Oil In India

India first struck oil in Assam in 1866. Oil production began in 1889 and the Assam Oil Company was set up in 1899 to oversee its production. As a British Colony, the oil discovered in India did not benefit our country directly, and the output was used to replenish British Troops in World War I and World War II. 

In 1928, the Asiatic Petroleum Company (a joint venture between Shell and Royal Dutch) allied with Burmah Oil Company. The joint venture was called Burmah-Shell Oil Storage and Distributing Company of India Limited. In 1976, Burmah Shell was taken over and nationalized by the Government Of India. It is now known as Bharat Petroleum Company Limited or BPCL.  

After 1947, India moved to a communist regime also known as License Raj. Just like any other country, India needed a big oil industry to be a superpower. Burmah Shell (now BPCL) and Oil India, two of the largest oil companies in the country, were still a joint venture with the British-owned Burmah Oil Company. In 1959, an act was passed which gave the state-owned Oil and Natural Gas Company (ONGC) the power to explore oil and develop resources in the field. The company struck gold when it took over Mumbai High, India’s first offshore oil field discovered in 1974. 

Post-1991, after the collapse of the USSR, the Indian economy was liberalized. This meant that oil became a rather freely traded commodity and could be impacted by global power and prices. Yet, the Government continued to regulate the prices of petrol and diesel till 2010.

Deregulation, Taxes, And More

Oil prices weren’t always so volatile. Till 2010, the Government would decide the baseline price of oil in India keeping room for oil marketing companies to earn profit. In 2010, then-PM Manmohan Singh decided to deregulate the price of petrol. In 2014, PM Narendra Modi decided to deregulate diesel. This meant that the fuel prices in India would change every 15 days in line with global crude oil prices. In 2017, the Government decided to change the fuel prices every day in line with global prices. 

In May 2020, the oil future prices became negative. Shouldn’t this have made oil prices in India a lot cheaper than they actually were? The central government took advantage of low oil prices and decided to hike excise duty on petrol and diesel. The Government saw the slump in oil prices as an advantage to add cash to the treasury. Essentially, petrol and diesel are cash cows for the government.

In India, petrol prices have consistently risen. Speaking with an estimate, petrol cost Rs 50/litre in 2010 in India and has now doubled up and crossed Rs 100/litre in 2020-21. On the other hand, fuel prices have been extremely volatile, sometimes high, sometimes low. There is no fixed trend in the recent decade 

So why have fuel prices in India consistently risen? Whenever oil prices decrease, the Government increases the excise duty. Conversely, whenever the oil prices increase, the Government decreases the excise duty, but only a little. The state governments tax petrol separately. Apart from global fuel prices, the answer to high fuel prices is bad taxation and policy regarding oil prices by the Government. 

So even if the prices go down, one continues to pay the same or even a higher price for petrol. This makes us ask, are fuel prices really deregulated in that case? 

Where Are Oil Prices Headed?

Oil prices hit all-time highs after UAE and Saudi had a disagreement at an OPEC+ meeting regarding production quotas. You can check out the article over here. To know how the Organization of the Petroleum Exporting Countries (OPEC) influences fuel prices, click here.

Coming back, the disagreement between UAE and Saudi led to inflated oil prices globally. The two came to an agreement and settled their vows. Oil prices started declining globally after that, but not in India. Minister of State for Finance Pankaj Chaudhary has said that the government is not deciding to cut down the excise duty anytime soon. The revenue generated by taxing petrol and diesel will help the Government conduct vaccination drives and run welfare programs. Long and short of it, one can’t expect a cut in excise duty anytime soon, one could have to watch global oil prices fall in order to see a change in Indian fuel prices. 

Categories
Market News Top 10 News

Adani Group Enters Into Cement Business – Top Indian Market News

Adani Group enters into cement business; incorporates Adani Cement

The Adani Group, which has a strong presence in the ports, airports, power, gas distribution, and other businesses, is all set to enter the cement sector in India. Adani Enterprises announced that it has incorporated a new wholly-owned subsidiary, Adani Cement, with an authorized share capital of Rs 10 lakh and paid-up capital of Rs 5 lakh. The new subsidiary will operate as a manufacturer, producer, and processor of all types of cement. This development is likely to cause some disruption in the highly competitive Indian cement industry.

Read more here.

SEBI looks into Rs 4,000 deal between PNB Housing Finance, Carlyle

PNB Housing Finance Ltd’s Rs 4,000 crore deal with US-based private equity firm Carlyle Group has come under the scanner of the Securities and Exchange Board of India (SEBI). The development comes after proxy advisory firm Stakeholders Empowerment Services (SES) red-flagged the deal structure. In a report, SES stated that the deal was an abuse of minority shareholder rights and questioned why PNB willingly surrendered its control over its housing finance arm to the Carlyle Group without extracting a fair compensation control premium.

Read more here.

J K Cement Q4 Results: Net profit rises 32% YoY to Rs 216 crore

J K Cement Ltd reported a 32.76% YoY increase in consolidated net profit to Rs 215.91 crore for the quarter ended March (Q4). Net profit has declined by 1.58% when compared to the previous quarter. Its total income rose 37.84% YoY to Rs 2,168.18 crore during the same period. Net profit for the financial year ended March 31, 2021 (FY21) increased by 44.14% YoY to Rs 709.71 crore. The cement manufacturer’s board has recommended a dividend of Rs 15 per share.

India’s fuel demand slips to nine-month low in May

India’s fuel demand fell to its lowest level in nine months in May 2021 as restrictions to curb the second wave of Covid-19 infections affected mobility and muted economic activity. Total fuel demand fell 11.3% to 15.1 million tonnes (MT) in May, compared to April. Petrol consumption in May declined by 16% to 1.99 MT over the previous month. Diesel sales declined by 17% to 5.53 MT when compared to April. The data was released by the Petroleum Planning and Analysis Cell (PPAC) of the Ministry of Oil.

Read more here.

Indian Hume Pipe Q4 Results: Net profit rises 51.7% YoY to Rs 38 crore

Indian Hume Pipe Company reported a 51.74% YoY increase in net profit to Rs 38.45 crore for the quarter ended March (Q4). Net profit has jumped 767.95% when compared to the previous quarter. Its total income rose 20.8% YoY (or 70.5% QoQ) to Rs 481.03 crore during the same period. However, net profit for the financial year 2020-21 (FY21) declined by 42.78% YoY to Rs 42 crore. The concrete pipe manufacturing company’s board has recommended a dividend of Rs 2 per share.

Read more here.

Info Edge acquires Bengaluru-based Zwayam Digital

Info Edge India Ltd has entered into an agreement to acquire 100% share capital of Zwayam Digital Pvt Ltd. The Bengaluru-based firm operates Zwayam, an artificial intelligence (AI) and machine learning-powered recruitment management software platform. It helps enterprises streamline and automate their entire recruitment workflow from sourcing to onboarding. Info Edge’s Managing Director said this acquisition will complement the company’s current recruitment offerings and help it cement its position as a leader in the enterprise recruitment solutions market.

Read more here.

BPCL seeks exemption from open offer for listed joint ventures

Bharat Petroleum Corporation Ltd (BPCL) has written to market regulator SEBI, seeking an exemption to the regulation that its new owner would have to make an open offer to minority shareholders of two companies which it is a promoter of— Petronet LNG and Indraprastha Gas Ltd (IGL). BPCL holds a 12.5% stake in Petronet LNG and a 22.5% stake in IGL and is a promoter for both companies. This means that potential buyers of BPCL would be required to make an open offer for the two promoter firms, which would cost them more.

Read more here.

VRL Logistics Q4 Results: Net profit declines 6.5% QoQ to Rs 37.16 crore 

VRL Logistics Ltd reported a 6.5% quarter-on-quarter (QoQ) decline in net profit to Rs 37.16 crore for the quarter ended March 2021 (Q4 FY21). Net profit has jumped 1,644% when compared to the corresponding quarter last year (Q4 FY20). Its total income rose 6% QoQ (or 20.54% YoY) to Rs 603.02 crore in Q4 FY21. Net profit for the financial year 2020-21 (FY21) declined by 50% YoY to Rs 45.06 crore. The company’s board has recommended a dividend of Rs 4 per share.

Read more here.

Inox Leisure allots Rs 96.77 lakh shares to QIBs at Rs 310 per share

The Board of Directors of Inox Leisure Ltd has approved the issue and allotment of 96.77 lakh equity shares to eligible qualified institutional buyers (QIBs) at an issue price of Rs 310 per share. The issue price is a ~5% discount to Friday’s closing price. The QIP was opened on June 8 and closed on June 11. Thus, the multiplex operator has raised Rs 300 crore via the QIP.

Anupam Rasayan Q4 Results: Net profit jumps 113% YoY to Rs 22 crore

Anupam Rasayan India Ltd reported a 113.29% YoY jump in consolidated net profit to Rs 22.14 crore for the quarter ended March (Q4). Net profit has increased by 2.31% when compared to the previous quarter. Its total income rose 65.9% YoY (or 44.63% QoQ) to Rs 274.16 crore during the same period. Net profit for the financial year 2020-21 (FY21) increased by 32.12% YoY to Rs 70.29 crore. The Board of Directors of the specialty chemicals manufacturer has recommended a dividend of Rs 0.5 per share.

Categories
Market News Top 10 News

Centre’s Net Indirect Tax Collections Rise 12% in FY21 – Top Indian Market News

Centre’s net indirect tax collections rise 12% in FY21

The Centre’s net revenue collections from indirect taxes witnessed a 12.3% year-on-year (YoY) rise to 10.71 lakh crore in the financial year 2020-21. This was supported by robust growth in receipts from customs duty and central excise (mostly from petrol and diesel). This figure has surpassed both the original as well as upwardly revised estimates for FY21 in the case of customs duty, central excise, and service tax taken together. The Centre collected Rs 1.32 lakh crore in customs duty receipts in FY21, an increase of 21% YoY. 

Read more here.

BPCL partners with Accenture to transform its sales, distribution network

Bharat Petroleum Corporation Ltd (BPCL) has partnered with Accenture to transform its extensive sales and distribution network. Accenture will use its capabilities in data, artificial intelligence (AI), and cloud technologies to build, design, and implement a digital platform, called IRIS. This platform will integrate real-time data from across BPCL’s countrywide network to provide a consolidated view of its extensive operations.

Read more here.

S&P Dow Jones Indices removes Adani Ports from sustainability index

S&P Dow Jones Indices said it is removing Adani Ports and Special Economic Zone Ltd (APSEZ) from its sustainability index due to the company’s business ties with Myanmar’s military, which is accused of human rights violations after a coup in February. APSEZ had earlier announced plans of building a $290 million port in Yangon on land leased from the military-backed Myanmar Economic Corporation (MEC). The stock will be removed from the index prior to the open on April 15.

Read more here.

L&T begins construction of 300-MW solar power plant in Saudi Arabia

The renewables arm of Larsen & Toubro’s (L&T) Power Transmission & Distribution Business has secured the go-ahead to begin construction of a 300 MW solar power plant in Jeddah, Saudi Arabia. The engineering, procurement, and construction (EPC) order was received from a consortium of Masdar, EDF Renewables, and Nesma Company. Earlier, L&T said it had secured a major EPC order for establishing a 1.5 gigawatt (GW) Sudair solar PV project in Saudi Arabia.

Read more here.

Adani Green Energy’s subsidiary commissions 50-MW solar plant in Chitrakoot

Adani Solar Energy Chitrakoot One Ltd (ASECOL), a subsidiary of Adani Green Energy Ltd (AGEL), has commissioned a 50 megawatt (MW) solar power plant in Chitrakoot, Uttar Pradesh. The plant has a power purchase agreement (PPA) with the Uttar Pradesh Power Corporation Ltd at Rs 3.07 per kilowatt-hour for a period of 25 years. This takes AGEL’s total operational renewable capacity to 3,520 MW.

Read more here.

JLR will report significant cash flow in Q4: Tata Motors

Tata Motors Limited said Jaguar Land Rover (JLR) is confident of reporting significant cash flows for the quarter ended March (Q4) and break-even on a cash flow basis for the financial year ended March 31. JLR posted a 12.4% year-on-year (YoY) increase in retail sales to 123,483 units in Q4. Sales of Jaguar declined by 17.1%YoY to 23,463 units, while sales of Land Rover jumped 22.6% YoY to 100,020 units during the same period.

Read more here.

Ashoka Buildcon declared lowest bidder for Gujarat Rail project

Ashoka Buildcon Limited has emerged as the lowest (L1) bidder for a tender floated by Gujarat Rail Infrastructure Development Corporation. The project consists of Gauge Conversion of Bechraji-Ranuj section to Broad Gauge with 25 kilovolt (kV) AC electrification in Ahmedabad Division of Western Railway. The total project cost is Rs 333.26 crore.

Cipla doubles remdesivir production amid unprecedented demand

Cipla Limited said it has doubled production of Covid-19 medication remdesivir to help meet “unprecedented demand” as India battles the second wave of infections. Recently, the Centre banned the export of the antiviral drug and its Active Pharmaceutical Ingredients (API) to deal with shortages of the medication. The drugmaker is working with authorities to restrict remdesivir supply just to hospitals and areas with a high burden of severe Covid-19 cases.

Read more here.

NBCC secures order to construct office building in Noida

NBCC (India) Limited has been awarded a work order for engagement as Project Management Consultant (PMC) for the construction of a Fertilizer Corporation of India (FCIL) office building at Noida, Uttar Pradesh. The total value of the project is Rs 65.10 crore at a PMC fee of 7%. NBCC (India) is a Government of India enterprise that provides civil engineering construction services.

Read more here.

Ramco Systems partners with EXSYN Aviation Solutions

Ramco Systems Limited has partnered with EXSYN Aviation Solutions to jointly offer aircraft data migration solutions to new clients. This partnership will enable new clients that are onboarding Ramco Aviation M&E MRO Suite to trust and rely on the expertise and technology of EXSYN. This will help clients to smoothly migrate their data from existing systems into Ramco applications.

Read more here.

Categories
Market News Top 10 News

Adani Transmission to Acquire Warora-Kurnool Transmission For Rs 3,370 crore – Top Indian Market News

Electricity Pylons at sunset on background

Adani Transmission to acquire Warora-Kurnool Transmission for Rs 3,370 crore

Adani Transmission Ltd (ATL) has signed an agreement with Essel Infraprojects for the acquisition of Warora-Kurnool Transmission Limited (WKTL). ATL said the acquisition is valued at Rs 3,370 crore. With this acquisition, the cumulative network of ATL will reach 17,200 circuit kilometers (ckt km). Out of this, 12,350 ckt km is already operational, and 4,850 ckt km is in various stages of execution. WKTL will develop, operate, and maintain transmission lines aggregating to 1,750 ckt km, which links the western and southern regions of India.

Read more here.

HCL Tech launches digital acceleration center in Canada

HCL Technologies announced the launch of an innovation center focused on digital acceleration in Mississauga, Ontario. HCL will deliver advanced technology solutions to its global client base to help accelerate their digital transformation journeys. The company will provide digital and analytics solutions, cloud consulting, cybersecurity, and IT infrastructure solutions from its new global delivery center. The IT major said it continues its expansion and growth in Canada with plans to hire 2,000 employees in the next three years.

Read more here.

Mukund completes sale of land in Thane to NTT Global Data Centers Nav2

Mukund Limited has completed the transfer of surplus leasehold land at Thane to NTT Global Data Centers Nav2 Pvt Ltd for Rs 801 crore. The company will utilise the amount for repayment of debts. The specialty steelmaker said it has brought down its overall debt by Rs 975 crore during FY 2020-21. Mukund has also sold its 51% stake in the joint venture, Mukund Sumi Special Steel, to Jamnalal Sons Private Ltd and has received Rs 713.61 crore as the first installment.

Read more here.

Lumax Industries to set up manufacturing unit at Sanand

The Board of Directors of Lumax Industries has approved capital expenditure (capex) amounting to Rs 80 crore for setting up a manufacturing unit in Sanand, Gujarat. The unit will cater to the orders received from MG Motors and other customers. The total capex will be funded by a mix of debt and internal accruals. The project is expected to be operational by the third quarter (Q3) of FY 2021-22. 

The company’s board has approved the setting up of an office in the Czech Republic to strengthen its technological capabilities.

Read more here.

BPCL sells entire 61.5% stake in Numaligarh Refinery to Oil India, Engineers India

Bharat Petroleum Corporation Ltd has sold its entire 61.5% stake in Numaligarh Refinery Ltd (NRL) to a consortium of Oil India Limited (OIL), Engineers India, and Government of Assam for Rs 9,876 crore. OIL acquired a 54.16% stake from BPCL, while Engineers India bought a 4.4% stake. The sale of NRL clears the way for the privatisation of India’s second-largest fuel retailer.

Read more here.

Adani Green Energy completes acquisition of 20-MW solar project in UP

Adani Green Energy Ltd (AGEL) has completed the acquisition of Spinel Energy & Infrastructure Ltd (SEIL) from Hindustan Cleanergy and Peridot Power Ventures. SEIL has a 20 megawatt (MW) operating solar project in Mahoba, Uttar Pradesh. The project has a long-term Power Purchase Agreement (PPA) with UP state discom at Rs 7,54 per kilowatt-hour (kWh). AGEL acquired the entire share capital and securities of SEIL at an enterprise value of Rs 133 crore.

Read more here.

Minda Industries to expand capacity at Bawal plant

The Board of Directors of Minda Industries has approved the expansion of a production plant of its material subsidiary, Minda Kosei Aluminium Wheel Pvt Ltd. The subsidiary manufactures aluminium alloy wheels for original equipment manufacturers (OEMs). A fresh investment of Rs 167 crore has been approved for the expansion of Minda Kosei’s Bawal plant in Haryana from 1,20,000 wheels per month to 1,80,000 wheels per month. 

The company’s board has also approved an investment of Rs 90 crore to set up a plant in Gujarat for manufacturing four-wheeler automotive lighting products.

Vascon Engineers receives LoA for projects worth Rs 515 crore

Vascon Engineers Limited has received a Letter of Acceptance (LoA) from the Uttar Pradesh Public Works Department for two projects worth Rs 515.63 crore. The first project consists of establishing a new medical college (attached with the existing District Hospital) in Bijnor. The second project includes the establishment of a medical college in Kaushambi district. Both projects have to be completed within 18 months.

NBCC (India) secures redevelopment work for Rs 1,356 crore

NBCC (India) Limited has secured an order for the redevelopment of GPRA Colony at Netaji Nagar, New Delhi. This includes the construction of General Pool Office Accommodation (GPOA), SARTAC Office Hostel, and other infrastructure buildings and allied works. The estimated value of the engineering, procurement, and construction (EPC) order is Rs 1,356.15 crore.

Categories
Market News Top 10 News

India’s Manufacturing PMI Falls Marginally in February – Top Indian Market News

India’s manufacturing PMI falls marginally in February

India’s factory activity expanded for the seventh straight month in February, driven by strong demand and increased output. The IHS Markit Purchasing Managers’ Index (PMI) for India’s manufacturing sector eased slightly to 57.5 in February from 57.7 in January. Last month, firms responded to rising production needs by boosting their purchasing activities. PMI is a month-on-month calculation, and a value of more than 50 represents an expansion when compared to the previous month.

Read more here.

Automobile companies register strong sales growth in February

Major automobile companies reported healthy sales growth during February 2021. Tata Motors posted a 51.1% YoY jump in total sales to 61,365 units, as passenger vehicle (PV) sales surged two-fold to 27,225 units. Maruti Suzuki reported an 11.8% YoY increase in overall sales to 1.64 lakh units in February. Bajaj Auto posted a 6% YoY rise in total sales to 3.75 lakh units during the same period. Farm equipment manufacturer Escorts reported a 30.6% YoY increase in tractor sales to 11,230 units in February.

Read more here.  

BPCL approves sale of its 61.65% stake in Numaligarh refinery for Rs 9,875 crore

Bharat Petroleum Corporation Ltd’s (BPCL) board has approved the sale of its 61.65% stake in Numaligarh Refinery Ltd (NRL) for Rs 9,875 crore. The consortium of Oil India Ltd (OIL) and Engineers India Ltd will acquire 49% stake. The remaining 13.65% will be sold to the Government of Assam. The sale of NRL is considered to be the first step towards the disinvestment of BPCL.

Read more here.

Sterlite Tech secures orders worth $100 million in Middle East, Africa 

Sterlite Technologies Ltd (STL) has secured orders worth $100 million (~Rs 734 crore) in the Middle East and Africa for setting up the network and infrastructure for 5G wireless services. The multi-year deals range from providing optical connectivity solutions to network solutions. With these new deals, the STL’s order book stands at a record Rs 11,300 crore. 

Read more here.

Godrej Properties acquires land parcels worth Rs 166 crore for residential project in Navi Mumbai

Godrej Properties Ltd has emerged as the highest bidder for two adjacent land parcels in Navi Mumbai for a total bid value of Rs 166 crore. The e-auction was conducted by Maharashtra’s City and Industrial Development Corporation (CIDCO). The company will develop a residential project on the 1.5-acre land located in Sanpada, Navi Mumbai. The project is expected to have a development potential of around 4 lakh sq ft.

Read more here.

IndiGo, BOC Aviation signs purchase-leaseback agreement for eight A320neo planes

Singapore-based aircraft leasing firm BOC Aviation has signed a purchase-and-leaseback agreement with InterGlobe Aviation (IndiGo) for eight new Airbus A320 neo planes. The aircraft are scheduled to be delivered in the second half of 2021. As of December 31, 2020, IndiGo had 287 aircraft in its fleet. Out of this, 272 were on operating lease, while the remaining 15 were owned/finance lease. 

Read more here.

Siemens acquires 99.2% stake in C&S Electric for Rs 2,100 crore

Siemens Limited has completed the acquisition of a 99.22% equity share in C&S Electric Ltd for Rs 2,100 crore. The Competition Commission of India (CCI) had given its approval for the deal on August 20, 2020. The acquisition will enable Siemens to address the competitive infrastructure low-voltage market in India while creating a manufacturing hub to source low-voltage products for export to competitive markets globally.

Read more here.

Bharat Dynamics secures order worth Rs 373 crore

Bharat Dynamics Limited said it has received an order worth Rs 372.98 crore for supplying MRSAM Missile Rear Sections for the Indian Air Force. The order is said to be executed on or before November 30, 2023. Hyderabad-based Bharat Dynamics is a leading manufacturer of defense equipment such as ammunitions and missile systems.  

Read more here.

MCX signs MoU with NSE, India INX, NSDL, and CDSL to set up new entity at GIFT City

Multi Commodity Exchange of India Ltd (MCX) has signed a Memorandum of Understanding (MoU) with National Stock Exchange (NSE), India International Exchange IFSC Ltd (India INX), National Securities Depository Limited (NSDL), and Central Depository Services (India) Ltd (CDSL) for setting up Market Infrastructure Institutions comprising of International Bullion Exchange, Clearing Corporation and Depository at Gujarat International Financial Trade (GIFT) City.

[Bullion refers to physical gold and silver of high purity that is often kept in the form of bars, ingots, or coins]

Biocon Biologics, Viatris Inc. gets CHMP approval for Abevmy

Biocon Biologics, a subsidiary of Biocon Ltd, announced that the European Medicines Agency’s Committee for Medicinal Products for Human Use (CHMP) has recommended the approval of its biosimilar- Bevacizumab- to be marketed as Abevmy. The product was co-developed with US-based Viatris Inc. Abemby is indicated for the treatment of metastatic breast cancer, non-small-cell lung carcinoma, as well as ovarian, cervical, and renal cancer.

Read more here.

Categories
Market News Top 10 News

Adani Ports’ Q3 Profit Rises 16% YoY to Rs 1,576 crore – Top Indian Market News

adani ports and sez

Adani Ports Q3 Results: Net profit rises 16% YoY to Rs 1,576 crore

Adani Ports & Special Economic Zone (APSEZ) Ltd reported a 16.22% YoY increase in consolidated net profit to Rs 1,576.53 crore for the quarter ended December (Q3). Its consolidated revenue rose 12% YoY to Rs 4,274.79 crore during the same period. APSEZ’s overall cargo volume surged 37% YoY to 76 million metric tonnes (MMT) in Q3. The revenue from port operations increased by 35% YoY, while its logistics business grew by 8% YoY during the October-December period.

Read more here.

GAIL acquires IEX’s 5% stake in Indian Gas Exchange

State-owned GAIL (India) Ltd has acquired a 5% stake in Indian Gas Exchange (IGX) from its parent company, Indian Energy Exchange (IEX). It has been reported that 36.93 lakh equity shares of IGX have been sold to GAIL for a cash consideration of Rs 3.69 crore. IEX stated that the partnership between IGX and GAIL will add robust value addition in the development of gas markets in India.

Read more here.

Muthoot Finance Q3 Results: Net profit rises 17% YoY to Rs 1,006 crore

Muthoot Finance reported a 17% YoY increase in consolidated net profit to Rs 1,006.6 crore for the quarter ended December (Q3). Its revenue rose 16% YoY to Rs 3,000.78 crore during the same period. The company’s consolidated loan assets grew by 28% YoY to Rs 55,800 crore during the nine months of 2020-21. Muthoot Finance said that its active customer base crossed 50 lakh. 

Read more here.

HFCL partners with Qualcomm for development of Wi-Fi 6 products

HFCL Limited has partnered with US-based Qualcomm Technologies for the development of Wi-Fi 6 products. WiFi 6 is the next generation of WiFi, which is compatible and complementary to 5G networks. HFCL said it is eyeing to increase its WiFi segment revenue by threefold to Rs 450 crore over the next 3 years. The company will market the co-developed products worldwide after necessary trials under its IO brand.

Read more here.

Berger Paints Q3 Results: Net profit rises 51% YoY to Rs 275 crore

Berger Paints India Ltd reported a 51.2% YoY increase in consolidated net profit to Rs 274.98 crore for the quarter ended December (Q3). Its revenue from operations rose 25% YoY to Rs 2,118.2 crore during the same period. The company has witnessed a consistent pick-up in demand for its high-margin decorative paints business. 

Read more here.

Tata Steel Q3 Results: Net profit at Rs 3,989 crore

Tata Steel Limited reported a consolidated net profit of Rs 3,989 crore for the quarter ended December (Q3). It had posted a net loss of Rs 1,228 crore in the corresponding quarter last year. The company’s revenue rose 11.5% YoY to Rs 39,594 crore in Q3 FY21. The company’s performance in Q3 was driven by higher prices, better product mix, lower exports, and operating efficiency initiatives.

Read more here.

IOB Q3 Results: Net profit at Rs 213 crore

Indian Overseas Bank (IOB) reported a net profit of Rs 213 crore for the quarter ended December. The bank has posted a net loss of Rs 6,075 crore in the corresponding quarter last year. Net interest income (NII) rose 19% YoY to Rs 1,522 crore in Q3 FY21. IOB’s gross non-performing assets (GNPA) ratio declined to 12.19%, compared with 17.12% in Q3 FY20.

Read more here.

Bharat Electronics secures order worth Rs 1,000 crore from Ministry of Defence

Bharat Electronics Ltd has signed a contract with the Ministry of Defence for the procurement of Software Defined Radio Tactical (SDR-Tac). The estimated contract value is Rs 1,000 crore. SDR-Tac is a radio system primarily used in ships. BEL will deliver the product to the Indian Navy within three years.

Read more here.

Mahanagar Gas Q3 Results: Net profit rises 16% YoY to Rs 217 crore

Mahanagar Gas Ltd (MGL) reported a 16.8% YoY increase in net profit to Rs 217.2 crore for the quarter ended December (Q3). Its revenue rose 10.4% YoY to Rs 666.4 crore during the same period. MGL has increased the price of CNG by Rs 1.50 per kg and that of domestic PNG (cooking gas) by 95 paise per unit in Mumbai. The company’s board has declared an interim dividend of Rs 9 per share.

Indoco Remedies Q3 Results: Net profit jumps 169% YoY to Rs 25 crore

Indoco Remedies reported a 169.2% YoY increase in consolidated net profit to Rs 25.1 crore for the quarter ended December (Q3). The company’s consolidated revenue rose 17.2% YoY to Rs 332.3 crore during the same period. Revenue from its international business registered a strong growth of 73% YoY in Q3. Indoco Remedies is a Mumbai-based research-oriented pharma company that has a presence in over 55 countries.

Read more here.

BPCL to sell 61.6% stake in Numaligarh refinery by March-end

Bharat Petroleum Corporation Ltd (BPCL) said it plans to complete its 61.65% stake sale in Numaligarh Refinery (NRL) to Oil India Limited and the Government of Assam by March 31. The transaction is subject to government approvals. The sale of NRL is considered to be the first step towards the disinvestment of BPCL. In the nation’s biggest privatisation till date, the Central government will sell its entire 52.98% stake in BPCL.

Read more here.

NBCC’s subsidiary secures project worth Rs 1,800 crore

NBCC (India) Ltd announced that its subsidiary, HSCC Limited, has secured a project for the upgradation of district hospitals and medical colleges in 12 districts of Rajasthan. The agreement was signed between HSCC and the Medical Education Department, Government of Rajasthan. The total cost of the project is estimated at Rs 1,800 crore.

Read more here.

Categories
Editorial

What is a Navratna PSU? Elgibility and Benefits

Since independence, India has been an agrarian country. Till the late 1990s, it failed to develop its industrial base and give special focus to infrastructure facilities. The government soon realised that there is a need to make public investments to boost the economy. 

According to ownership, the government companies are commonly classified into the followinng categories:

  • State Level Public Enterprises (SLPE) – Companies where the direct holding of the State Government or other SLPEs is 51% or more.
  • Public Sector Banks (PSB) – Banks where the direct holding of the Central/State Government or other PSBs is 51% or more.
  • Central Public Sector Enterprises (CPSE) – Companies where the direct holding of the Government of India or other CPSEs is 51% or more.

The central government of India allots special status to public companies to enhance their reputation. There are 3 special statuses which are bestowed to these SLPEs/ PSBs/ CPSEs if they meet certain criteria.

  • The Maharatnas
  • The Navratnas
  • The Miniratnas (I and II)

Let us read all about Navratna companies today.

Eligibility Criteria for Navratna status

  1. A PSU (Public Sector Undertaking) should fall under the Miniratna category. Being a Miniratna company is not that hard. Any government company having made profits continuously for the last three years or earned a net profit of ₹30 crore or more in one of the three years qualifies to be Miniratna-I company. A Miniratna-II company needs to make profits for three years and have a positive net worth.
  2. It should have obtained a rating of ‘very good’ or ‘excellent’ rating in 3 of the last 5 years under the Memorandum of Understanding(MoU) system. This shows that the company is dependable.
  3. The company should have a composite score of 60 or above out of 100 in the following six selected parameters:
ParameterMaximum Weight
Earnings per share10
Profit before interest and taxes (PBIT) to turnover15
Net profit to net worth25
Profit before depreciation, interest and taxes (EBIDTA) to capital employed15
Manpower cost to total cost of production/services15
Inter-Sectoral performance20

List of Navratna companies

  1. Bharat Electronics Limited: BEL designs, develops and manufactures a range of advanced electronic products for the Indian Armed Forces. A few of the products are the weapon locating model, battlefield surveillance radar, electronic voting machines, tank electronics.
  2. Container Corporation of India Limited: CONCOR comes under the Indian Ministry of Railways. It has three activities in its core business which are a cargo carrier, a terminal operator, and a warehouse operator.
  3. Engineers India Limited: EIL comes under the Ministry of Petroleum and Natural Gas. It helps by providing engineering and related technical services for petroleum refineries. Over the years, it has expanded in business from hydrocarbon chain to metallurgy, infrastructure & power.
  4. Hindustan Aeronautics Limited: HAL comes under the Indian Ministry of Defence. It is involved in designing and assembling aircraft, jet engines, helicopters and their spare parts.
  5. Mahanagar Telephone Nigam Limited: MTNL is one of the most famous telecommunications service providers.
  6. National Aluminium Company Limited: NALCO comes under the Ministry of Mines. It has diversified its operations across mining, metal and power.
  7. NBCC (India) Limited: The company is focussed on three fields PMC (Project Management Consultancy), EPC (Engineering Procurement & Construction) & RE (Real Estate).
  8. NMDC Limited: NDMC comes under the Ministry of Steel. It is India’s largest iron ore producer & exporter and also explores copper, rock phosphate and limestone.
  9. NLC India Limited: It operates in the fossil fuel mining sector and thermal power generation. 
  10. Oil India Limited: OIL is present in the business of exploration, development and transportation of crude oil and natural gas. 
  11. Power Finance Corporation Limited: It is the largest NBFC (Non-Banking Financial Corporation) by net worth (all reserves) in India. It helps by providing financial assistance to power projects across the country.
  12. Rashtriya Ispat Nigam Limited: RINL comes under the Ministry of Steel. Its customers include different industrial users, retailers, specific project customers, etc.
  13. Rural Electrification Corporation Limited: REC was incorporated in 1969 and works under the Ministry of Power. It is a public infrastructure finance company which finance projects in the power sector.
  14. Shipping Corporation of India Limited: It came into existence with the amalgamation of Eastern Shipping Corporation and Western Shipping Corporation. Incorporated in 1961, today it is the largest Indian shipping Company.

Why Become a Navratna Company?

When a company achieves Navratna status, it gets enhanced financial and operational freedom and empowers it to invest up to Rs 1,000 crore or 15% of their net worth on a single project without seeking government approval. They will also have the freedom to enter joint ventures, form alliances and float subsidiaries abroad. So definitely it is a very coveted title, and the benefits may push more Public Sector Enterprises(PSEs) to perform better and make profits. Next day, we can learn about the next level which are Maharatna companies. Till then, have a great weekend!

Categories
Market News Top 10 News

Burger King India IPO Gets Oversubscribed on Day 1 – Top Indian Market News

Burger King India IPO subscribed more than 3 times on Day 1

The initial public offering (IPO) of Burger King India was subscribed more than three times on the opening day of the issue. The Rs 810-crore issue has received bids for 23.32 crore equity shares, which was 3.13 times the total issue size. The IPO consists of a fresh issue of Rs 450 crore and an offer for sale (OFS) of up to 6 crore shares, aggregating Rs 360 crore. The price band of the issue has been fixed at Rs 59-60 per share.

Read more here.

BPCL receives three preliminary bids, says Oil Minister Dharmendra Pradhan

India’s Oil Minister Dharmendra Pradhan announced that state-owned Bharat Petroleum Corporation Ltd (BPCL) has received three preliminary bids, as part of its stake sale. Earlier, Vedanta had confirmed putting in an expression of interest (EoI) for buying the government’s 52.98% stake in BPCL. The other two bidders are said to be global funds, one of them being Apollo Global Management.

Read more here.

Infosys, Rolls-Royce enters into strategic partnership for aerospace engineering in India

IT major Infosys Ltd and Rolls-Royce have entered into a strategic partnership for sourcing engineering and R&D services for Rolls-Royce’s civil aerospace business. As part of the partnership, Rolls-Royce will transition a significant part of its engineering centre capabilities for civil aerospace in Bengaluru to Infosys. The engineering centre will strengthen Infosys’ existing capabilities in Turbomachinery and Propulsion. 

Read more here.

NCC secures four orders worth Rs 3,905 crore

NCC Limited announced that it has received four external orders totaling Rs 3,905 crore. One order of Rs 848 crore is for NCC’s water division and the remaining four orders pertain to its building division. It has received these orders from central and state government agencies. These orders will be executed over the next 24 to 42 months.

Read more here.

Wipro wins multi-year contract from Verifone

Wipro Ltd announced that it has won a multi-year contract from Verifone, a global leader in payments and commerce solutions. The IT major will develop new features, capabilities, and interfaces for Verifone’s Cloud Services offerings. By leveraging its global engineering support team, Wipro will assist Verifone to transform its customer partnerships.

Read more here.

L&T to sell UK marine automation platform to Rolls-Royce

Larsen & Toubro (L&T) has signed a pact with Rolls-Royce for the divestment of its UK-based integrated marine automation solutions provider, Servowatch Systems. L&T stated that this move is aimed at unlocking value within the existing business portfolio by divesting non-core units. Servowatch Systems has grown into an internationally recognized provider of marine automation platforms over the past eight years of L&T’s ownership.

Read more here.

SpiceJet to provide logistical support for Covid-19 vaccine delivery

SpiceJet announced that it will provide logistical support for the delivery of Covid-19 vaccines. The airline’s cargo arm, SpiceXpress, will be transporting the vaccine through a specialised service called Spice Pharma Pro. The company stated that it has the ability to transport extremely sensitive drugs and vaccines in controlled temperatures ranging from -40°C to +25°C. 

Read more here.

IndiGo achieves 70% of its pre-Covid capacity, operating 1,000 flights daily

Interglobe Aviation Ltd (IndiGo) stated that it has reached 70% of its pre-Covid capacity and is operating 1,000 daily flights to and from 65 destinations. This includes 59 domestic and 6 international destinations. The company expects the growth to continue into 2021. IndiGo, which is India’s largest airline, operated around 1,500 daily flights before the pandemic hit.

Read more here.

Dabur and other top brands sell adulterated honey: CSE

An investigation by the Centre for Science and Environment (CSE) claims that several brands of honey, including those sold by Dabur India Ltd, Patanjali, and Zandu, are adulterated. CSE had sent samples from 13 brands to a German lab for testing the purity of their honey. The tests reveal that most brands sell honey that is laced with sugar syrup.

Read more here.

Phoenix Mills and GIC to set up mixed-use retail platform

Phoenix Mills Ltd (PML) and its subsidiaries have entered into a non-binding term sheet with GIC Private Equity, for the formation and development of a retail-led mixed-used platform. PML will contribute retail assets such as Phoenix Marketcity Mumbai and Phoenix Marketcity Pune as a part of the platform. GIC is Singapore’s sovereign wealth fund. It will invest in 3 PML subsidiaries- Offbeat Developers Pvt Ltd, Graceworks Realty & Leisure Pvt Ltd, and Vamona Developers Pvt Ltd. GIC will use a combination of primary infusion and secondary purchase of equity shares.

Read more here.

Categories
Market News Top 10 News

India’s WPI Inflation Jumps to 1.48% in October – Top Indian Market News

India’s WPI inflation at 8-month high of 1.48% in October

The inflation based on India’s Wholesale Price Index (WPI) rose to an eight-month high of 1.48% in October. The WPI inflation was at 1.32% in September and zero percent in October of last year. According to data released by the Ministry of Commerce and Industry, the prices of manufactured products have increased sharply. The prices of food items rose 6.37%, after growing 8.17% in September.

Read more here.

Finance Ministry invites bids from actuarial firms for valuing LIC ahead of IPO

The Finance Ministry invited bids from actuarial firms for arriving at the embedded value of Life Insurance Corporation (LIC), ahead of its stake sale. The embedded value is the sum of the net asset value and the present value of future profits of a life insurance company. Actuarial firms provide statistical and risk-management services to insurance companies. The government plans to sell a minority stake in LIC and list it on the stock exchanges. It has already appointed Deloitte and SBI Caps as pre-IPO transaction advisors.

Read more here.

Initial bids for BPCL privatisation closes today

The process of receiving initial bids for the privatisation of state-run Bharat Petroleum Corporation Ltd. (BPCL) will end today. The government has been trying to offload its entire 52.98% stake in BPCL, which is the country’s second-largest oil refining and marketing company. BPCL’s privatisation is essential for the government to meet its record Rs 2.1 lakh crore goal for disinvestment in 2020-21.

Read more here.

Equitas SFB launches unique savings account for women

Equitas Small Finance Bank, on Monday, announced that it has launched a new product that is aimed at women. The product, termed as ‘Eva’, will provide a 7% interest on the savings account of women. The bank’s program also offers free health check-ups and unlimited teleconsultation with doctors and mental health experts. Equitas SFB has also announced that Indian woman cricketer, Smriti Mandhana, will be its new Brand Ambassador.

Indian economy may be recovering faster than anticipated: Oxford Economics

The global forecasting firm Oxford Economics has stated that the Indian economy is seen to be recovering faster than expected. It also stated that the Reserve Bank of India may soon arrive at an end-of-the-rate easing cycle. The firm has said that inflation is expected to average significantly above 6% in the fourth quarter of the current financial year. 

Read more here.

Wipro enters into partnership with SNP SE

Wipro Limited said it has partnered with Schneider-Neureither & Partner (SNP) SE to help customers accelerate their enterprise transformation journey. Both companies will also build a ”Transformation Competence Center’, that will train and certify Wipro consultants to use SNP’s CrystalBridge data transformation platform. The SNP Group has around 1,500 employees worldwide and is headquartered in Heidelberg, Germany.

Read more here.

Maruti Suzuki sells over 2 lakh cars through online channel

India’s largest carmaker, Maruti Suzuki India, said that it has sold over 2 lakh cars through its online channel since April 2019. The company had initiated its online sales platform in 2018, and covers nearly 1,000 dealerships across the country. The company has also stated that its dealership websites are seeing a much larger traffic flow amidst the prevailing Covid-19 scenario.

Read more here.

Ruchi Soya to launch FPO next year: Baba Ramdev

Baba Ramdev has announced that Ruchi Soya, which is owned by Patanjali Ayurved, will launch a follow-on public offer (FPO) next year. He has stated that the FPO has been planned to bring down the promoters’ shareholding in the company. A Follow-on Public Offer is a process by which a company, which is already listed on an exchange, issues new shares to investors or the existing shareholders. Ruchi Soya Industries Ltd. is one of the largest manufacturers of edible oil in India. 

Read more here.

Vodafone Idea may raise tariffs by 15-20% towards the end of 2020: Report

As per a report from ET, Vodafone Idea (Vi) is considering to increase tariffs by 15-20% by the end of the year or early 2021. The telecom company is currently trying to make a financial recovery and reduce losses in its customer base. The report also states that Bharti Airtel may also keep a close watch on Reliance Jio’s moves, and change its rates accordingly.

Read more here.

GAIL completes Kochi-Mangalore natural gas pipeline

Gail India Limited has completed the natural gas pipeline stretch between Kochi and Mangalore. The 444-km long pipeline was launched in 2009 at an estimated cost of Rs 2,915 crore. The testing of the pipeline will be completed within the next few days. With the commissioning of the pipeline, gas demand in Kerala will touch 80-90 million cubic metres per annum.

Read more here.

Categories
Market News Top 10 News

Reliance Industries Reports 15% YoY Decline in Net Profit – Top Indian Market News

Reliance Industries Q2 Results: Net Profit at Rs 9,567 crore

Reliance Industries Ltd. (RIL) has reported a 15% year-on-year (YoY) decline in net profit at Rs 9,567 crore, for the quarter ended September (Q2). The revenue from operations of RIL has declined by 24% YoY to Rs 1.16 lakh crore, during the same period. The company had posted a net profit of Rs 11,262 crore in Q2 of the previous financial year.

Indian Oil Corporation Q2 Results: 13-fold jump in Net Profit to Rs 6,026 crore

Indian Oil Corporation (IOC) reported a 13-fold year-on-year (YoY) increase in consolidated net profit at Rs 6,025.91 crore, for the quarter ended September (Q2). The consolidated revenue of IOC declined by 13.39% YoY to Rs 1.16 lakh crore, during the same period. The share price of IOC saw a rise of 1.47%, and closed at Rs 79.55 on the NSE today.

Read more here.

UPL Q2 Results: Net Profit jumps 165% YoY to Rs 537 crore

UPL Ltd reported a 165.84% year-on-year (YoY) increase in consolidated net profit at Rs 537 crore, for the quarter ended September (Q2). The company’s revenue from operations increased by 14% YoY to Rs 8,939 crore, during the same period. UPL has also stated that it has decided to stop production at its oldest manufacturing plant in the Netherlands.

Read more here.

BSE to consult SEBI on Future-Reliance deal: Report

Reports from various news publications have stated that the Bombay Stock Exchange (BSE) will consult market regulator SEBI, to seek clarifications from Future Retail and Reliance Industries. This comes after Amazon Inc. had objected to the $3.4 billion (~Rs 25,365 crore) deal between Reliance Retail and Future Retail. As per reports, US-based Amazon had written to SEBI and the stock markets to put the deal on hold, due to the Singapore arbitration order.

Read more here.

IndusInd Bank Q2 Results: 53% YoY decline in net profit

IndusInd Bank Ltd. reported a 53% year-on-year (YoY) decline in net profit to Rs 663 crore, for the quarter ended September (Q2). The bank’s net interest income (NII) increased by 12.7% YoY to Rs 3,278 crore, during the same period. The lender had increased its provisions during the July-September quarter to Rs 1,964 crore. Provision is an amount set aside by a company to pay for any losses that might arise in the future.

Read more here.

Axis Bank revises stake acquisition agreement with Max Life

Axis Bank, on Friday, announced that the lender and its subsidiaries have agreed to enter into a revised agreement with Max Life Insurance (MLI). They will acquire 19% of the equity share capital of Max Life, instead of 17% as mentioned before. The revised agreement had to be made, as the Reserve Bank of India (RBI) had rejected Axis Bank’s earlier proposal to directly buy a 17% stake in Max Life.

Read more here.

Suven Pharma Q2 Results: Net Profit declines 20% YoY to Rs 74 crore

Suven Pharmaceuticals reported a 20.35% year-on-year (YoY) decline in consolidated net profit to Rs 74.07 crore, for the quarter ended September (Q2). The consolidated total income of the company stood at Rs 237.74 crore, during the same period. Suven Pharma’s Board of Directors has allotted bonus shares at a 1:1 ratio. This means that the company will issue one bonus share for every one share held by the existing shareholders.

Read more here.

Blue Dart Q2 Results: 189% YoY increase in net profit

Blue Dart Express Ltd. reported a 189.1% year-on-year (YoY) increase in consolidated net profit at Rs 42.33 crore, for the quarter ended September (Q2). The net sales of the company increased by 8% YoY to Rs 866.57 crore, during the same period. The share price of Blue Dart Express saw a rise of 13.32%, and closed at Rs 3,680 on the NSE today.

Read more here.

BPCL puts Bina refinery expansion plan on hold pending privatisation

Bharat Petroleum Corporation Ltd. (BPCL) has put on hold its plans to expand its Bina refinery and install a secondary unit at its Mumbai refinery to boost efficiency. The plans have been put on hold due to the privatization process of the company. The Government wants to sell a 53.29% stake in BPCL, in order to raise funds and cover-up its fiscal deficit.

Read more here.

Karur Vysya Bank Q2 Results: Net profit rises 81% YoY to Rs 115 crore

Karur Vysya Bank reported an 81.4% year-on-year (YoY) increase in net profit at Rs 114.89 crore, for the quarter ended September (Q2). The bank’s net interest income (NII) has increased by 0.9% YoY to Rs 601.5 crore, during the same period. NII is the difference between the interest earned by a bank on its loans, and the interest it pays to depositors.

Read more here.

Mahindra Logistics Q2 Results: 34% YoY increase in net profit

Mahindra Logistics Ltd. has reported a 34% year-on-year (YoY) increase in net profit to Rs 14.98 crore, for the quarter ended September (Q2). The company’s sales have declined by 2.34% YoY to Rs 832.51 crore, during the same period. The company has stated that its sales volume has reached pre-Covid levels.

Read more here.

Categories
Market News

BPCL cutting CAPEX by 36% for FY2020-21

bpcl

Bharat Petroleum Corporation Ltd (BPCL) will cut its capital expenditure for FY2020-21 by 36% or ₹4,500 crores. BPCL has categorised their projects into minor and major projects. All projects which have an investment of less than ₹150 crores is categorized as a minor project and is put on hold.

What it means

Given the challenging times, the Company is shying away from undertaking huge Capex which might impact their borrowing and debt-equity ratio. BPCL on Wednesday reported a consolidated net loss of ₹1,819.6 crores for the quarter ended March, largely because of inventory loss and a fall in gross refining margin. Lower demand for crude oil and petroleum products has hit prices and therefore refining margins globally. Benchmark Brent future fell a sharp 65% during the March quarter to hit a multi-year low of $22.74 a barrel. BPCL, however, expects fuel demand to return to pre-lockdown levels after the monsoon season.