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UltraTech Cement’s Profit Falls 36% YoY to Rs 1,666 crore – Top Indian Market Updates

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

UltraTech Cement Q4 Results: Profit falls 36% YoY to Rs 1,666 crore

UltraTech Cement reported a 36% YoY fall in net profit to Rs 1,666 crore for Q4 FY23. However, its revenue from operations rose 18% YoY to 18,562 crore during the same period. The company’s  EBITDA for the quarter stood at Rs 3,444 crore, up 9% YoY. The company’s board has recommended a dividend of Rs 38 per equity share.

Read more here.

India’s core sector output grows 3.6% in March

India’s core sector output grew 3.6% YoY in March 2023, down from 6% growth in the previous month. The production of coal, fertilizers, steel, natural gas, and refinery products increased during the month. The Eight Core Industries account for 40.27% of the weight of items included in the Index of Industrial Production (IIP).

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Laurus Labs Q4 Results: Profit falls 56% YoY to Rs 103 crore

Laurus Labs reported a 56% YoY fall in net profit at Rs 103 crore for Q4 FY23. Total revenue stood at Rs 1,381 crore, a 3.1% decline from Q4 FY22. EBITDA fell 28% YoY to Rs 285.6 crore, and EBITDA margin stood at 20.7% in Q4 FY23. The company’s board approved a second interim dividend of Rs 1.20 per equity share of Rs 2 each.

Read more here.

Adani pays back $200 million Holcim debt, seeks loan extension

Adani Cement Industries has pre-paid $200 million from the $1 billion mezzanine loan it took from global banks to fund the acquisition of Ambuja Cements and its subsidiary ACC Ltd from Switzerland’s Holcim Group for $6.4 billion. The pre-payment will help Adani seek an extension of the debt taken to fund the acquisition by three years.

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DLF Cyber City Developers buys 26.43% stake in Suncloud Solar

DLF Cyber City Developers Ltd (DCCDL) has acquired a 26.43% stake in Suncloud Solar Private Ltd for Rs 8.41 crore. The acquisition was made through one of its wholly-owned subsidiaries, DLF Info City Chennai Ltd. Suncloud Solar is a special-purpose vehicle of Cleantech Solar India OA 2 Pte. Ltd., and it is responsible for the construction, operation, and maintenance of a captive generating plant.

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Star Health Q4 Results: Net profit at Rs 619 crore

Star Health and Allied Insurance reported a net profit of Rs 619 crore for Q4 FY23, in contrast to a loss of Rs 1,041 crore in Q4 FY22. The gross written premium (GWP) for Q4 FY23 was Rs 12,952 crore, a 13% YoY increase. The operating expense to GWP ratio was 15.9% in FY23, and the company’s solvency ratio was 2.14x, higher than the minimum regulatory requirement of 1.5x.

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Thermax bags Rs 271 crore order for mechanical balance of plant works

Thermax has received an order worth Rs 271.50 crore from India’s largest private sector oil refinery for mechanical balance of plant (MBoP) works for the captive power plant at their new oil-to-chemical (O2C) facility in western India. The captive power plant is expected to meet the incremental power demand of upcoming projects at the customer’s premise as part of the O2C expansion and the establishment of a mega factory.

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PI Industries announces twin acquisitions in Pharma API, CDMO space

PI Industries Ltd has acquired Therachem Research Medilab LLC’s Indian subsidiaries and assets in the US for $50 million. Its subsidiary, PI Health Sciences Ltd, signed the definitive documents, and up to $25 million has been committed in performance-linked pay-outs over the next six years. The acquisition will allow PI Industries to enter the pharma API and CDMO spaces.

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CarTrade Tech Q4 Results: Profit at Rs 17.5 crore, revenue grows 19% YoY

CarTrade Tech reported a consolidated net profit of Rs 17.49 crore for Q4 FY23 compared to a net loss of Rs 21.39 crore in Q4 FY22. The revenue for the quarter grew by 19% YoY to Rs 116.6 crore. The adjusted EBITDA for Q4 FY23 was Rs 39.83 crore. CarTrade Tech received 34 million average monthly unique visitors for Q4 FY23, of which 86% were organic.

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India’s forex reserves fall $2.17 billion to $584.25 billion

According to the Reserve Bank of India (RBI), India’s foreign exchange reserves decreased by $2.165 billion to $584.248 billion as of April 21, 2023. The country’s forex reserves had risen to a nine-month high of $586.412 billion the previous week. The dip was largely attributed to a decrease in foreign currency assets, which fell by $2.146 billion to $514.489 billion.

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Mankind Pharma IPO subscribed 15.32 times

The ₹4,326-crore initial public offering (IPO) of Mankind Pharma was subscribed 15.32 times on the final day of bidding. The shares of the Delhi-based pharmaceutical and healthcare products maker are expected to list on the leading stock exchanges BSE and NSE on May 9, 2023.

Read more here.

NOTE: The Indian markets will be closed on Monday (May 1) on account of Maharashtra Day.

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Market News Top 10 News

India’s GDP Grows 8.7% in FY22 – Top Indian Market Updates

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

India’s GDP growth slows to 4.1% in Q4; FY22 growth at 8.7%

India’s gross domestic product (GDP) in the January-March quarter (Q4 FY22) grew 4.1%. In the third quarter of FY22, GDP growth slowed to 5.4% from 8.5% in the second quarter and 20.3% in the first quarter. India’s economy had just begun to recover from the Covid-19 pandemic-induced slump when a rise in Omicron cases in January brought back restrictions.

The GDP growth in the financial year 2021-22 stood at 8.7%, compared to a contraction of 6.6% in FY21.

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M&M raises auto, farm equipment biz capex by 27% till FY24

Mahindra & Mahindra Ltd has increased its mid-term capital expenditure for automotive and farm equipment business by 27% or Rs 3,400 crore to Rs 15,300 crore till FY24. The automaker aims to increase the capacity for its XUV700 and new models in the pipeline. The Rs 400 crore spike in capex for farm business will go into new plant expansion. 

Read more here.

NCC bags three orders worth Rs 6,388 cr in May

Construction firm NCC Limited secured three orders worth Rs 6,388 crores in May 2022. The company has received an order from Brihanmumbai Municipal Corporation for the design, build, operation & maintenance of the Malad Wastewater Treatment Facility under the Mumbai Sewage Disposal Project-II. It has received similar orders from other state government agencies.

Read more here.

CarTrade Tech partners with IDFC First Bank to offer financing solutions for used cars

CarTrade Tech Ltd has announced a strategic partnership with IDFC First Bank to offer easy and smart financing for used cars. The bank will become the preferred financier for customers purchasing used vehicles from CarWale abSure’s dealers with customised offerings to suit their needs. CarWale abSure is the used car platform of CarTrade Tech.

Defence Ministry signs Rs 2,971 crore deal with BDL

The Ministry of Defence has signed a deal with Bharat Dynamics Ltd (BDL) for the supply of Astra Mk-1 missiles for the Indian Air Force and Navy at the cost of Rs 2,971 crore. Astra Mk-1 is India’s first indigenous air-to-air missile. This project will act as a catalyst for the development of infrastructure and testing facilities at BDL.

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Tata Elxsi partners with Lenovo to deliver XR solutions

Tata Elxsi has partnered with Lenovo to develop smart extended reality (XR) solutions for enterprise and engineering applications. Customers using Lenovo’s smart XR devices will benefit from end-to-end solutions and services from Tata Elxsi and Lenovo. The two entities will enable enterprises to deliver immersive digital transformation solutions.

Read more here.

ONGC sees crude oil production rising 11% by FY25

Oil & Natural Gas Corporation (ONGC) said its crude oil production will rise 11% and natural gas output will jump 25% after newer discoveries in the western and eastern offshore start producing. Crude oil production is expected to rise from 19.54 million tonnes (MT) in FY 2021-22 to 19.88 MT in FY23 and 21.58 MT in FY24. ONGC will spend Rs 31,000 crore from 2022 to 2025 on exploration campaigns throughout India.

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Govt keeps fiscal deficit at 6.7% of GDP for FY22

The fiscal deficit for FY 2021-22 worked out to be 6.71% of the gross domestic product (GDP). The figure is lower than the 6.9% projected by the Ministry of Finance in the revised budget estimates. The fiscal deficit in the absolute terms was Rs 15,86,537 crore (provisional). The revenue deficit at the end of FY22 was 4.37%.

[Fiscal deficit is the difference between the total revenue and total expenditure of the government].

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LIC makes Rs 42,000 crore equity gains in FY22

Life Insurance Corp of India (LIC) made Rs 42,000 crore of gains from equity investments in the financial year ended March 2022 (FY22), up 17% YoY. The company reported equity gains of Rs 36,000 crore in the previous year. LIC’s Managing Director Raj Kumar said the insurer will match the profitability of its private sector counterparts in the next five years.

Read more here.

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Market News Top 10 News

MRF Reports 12-fold Jump in Net Profit in Q1 – Top Indian Market News

MRF Q1 Results: Net profit rises 12-fold YoY to Rs 166 crore

MRF Limited reported a 1,130% YoY jump in consolidated net profit to Rs 165.58 crore for the quarter ended June (Q1 FY22). However, net profit has declined by 50.15% when compared to the previous quarter. Its revenue from operations rose 70% YoY to Rs 4,184 crore during the same period. EBITDA grew 49.2% YoY to Rs 2,460.7 crore in Q1. The tyre manufacturer’s total expenses increased by 63.5% YoY to Rs 4,054.24 crore during the April-June quarter of FY22.

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Amara Raja Batteries to acquire 11.36% stake in Log 9 for Rs 37 crore

Amara Raja Batteries Ltd (ARBL) will invest ~Rs 37 crore for acquiring an 11.36% stake in Log 9 Materials Scientific Pvt Ltd, a Bengaluru-based battery-tech and deep-tech startup. ARBL is expected to be the primary partner for scaling up the manufacturing operations of Log 9’s battery and fuel cell technologies. The investment is part of ARBL’s ‘Energy & Mobility’ strategy, which focuses on entering into green technologies and solutions.

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AstraZeneca Pharma Q1 Results: Net profit falls 45% YoY to Rs 10.24 crore

AstraZeneca Pharma India Ltd reported a 45.62% YoY decline in net profit to Rs 10.24 crore for the quarter ended June (Q1 FY22). Net profit has declined by 62.45% when compared to the previous quarter. Its revenue from operations fell 9.3% YoY to Rs 175.4 crore during the same period. The pharma company’s board has declared an interim dividend of Rs 2 per share.

Read more here.

Govt looks to cut import duties on electric cars to as low as 40%: Report

According to a report from Reuters, India is considering slashing import duties on electric cars to as low as 40%. The government plans to cut the tax rate from 60% to 40% for electric cars under $40,000 (~Rs 29.69 lakh). For EVs valued at more than $40,000, the Centre is looking at cutting the rate from 100% to 60%. This comes days after Tesla Inc appealed for a cut in India’s import duties. The EV giant argued that lowering import duties on EVs to 40% would make them more affordable and boost sales. 

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Subex Q1 Results: Net profit falls 11% YoY to Rs 13.48 crore

Subex Ltd reported an 11.08% YoY decline in consolidated net profit to Rs 13.48 crore for the quarter ended June (Q1 FY22). Net profit has declined by 13.6% when compared to the previous quarter. Its total income fell 2.62%% YoY (or 10.8% QoQ) to Rs 87.31 crore during the same period. Subex is an enterprise software company that provides digital trust products to communication service providers.

Equity mutual fund inflows surge more than three-fold in July

Investment into equity mutual funds surged more than three-fold in July amidst optimism about the economy, as restrictions eased after the second wave of Covid-19. Net inflows into equity and equity-linked schemes jumped ~277% over the preceding month to Rs 22,583.5 crore in July 2021. This is the fifth-straight month of inflows into the category and is the highest since April 2018. The data was released by the Association of Mutual Funds in India (AMFI).

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Balrampur Chini Mills Q1: Net profit falls 44% YoY to Rs 77 crore

Balrampur Chini Mills Ltd reported a 44.7% YoY decline in consolidated net profit to Rs 77.92 crore for the quarter ended June (Q1 FY22). Net profit has declined by 67.34% when compared to the previous quarter. Its revenue from operations fell 20.2% YoY to Rs 1,140.44 crore during the same period. The company’s board has approved a proposal to buy back up to 52.5 lakh equity shares at a maximum price of Rs 410 per share. The Board of Directors has also approved a further expansion of ethanol production from 840-kilo litre per day (KLPD) to 1,050 KLPD.

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Shree Cements Q1 Results: Net profit rises 91% YoY to Rs 630 crore

Shree Cements Ltd reported a 91.11% YoY increase in consolidated net profit to Rs 629.9 crore for the quarter ended June (Q1 FY22). Net profit has declined by 21.1% when compared to the previous quarter. Its total income rose 44.5% YoY (but declined by 13.3% QoQ) to Rs 3,775.9 crore during the same period.

Clean Science and Tech Q1 Results: Net profit rises 30% YoY to Rs 54 crore

Clean Science and Technology Ltd reported a 30.3% YoY increase in consolidated net profit to Rs 54.6 crore for the quarter ended June (Q1 FY22). Net profit has increased by 2.7% when compared to the previous quarter. Its revenue from operations rose 29.62% YoY (or 9.2% QoQ) to Rs 146.4 crore during the same period. Clean Science and Tech is a specialty chemical manufacturer based in Pune, Maharashtra.

Read more here.

CarTrade Tech IPO subscribed 41% on first day of bidding

The Rs 2,998.5 crore initial public offering (IPO) of CarTrade Tech was subscribed 41% on the first day of bidding. Retail investors have subscribed 0.8% against their reserved portion. Non Institutional investors (NIIs) and Qualified Institutional Buyers (QIBs) have subscribed 3% and 1%, respectively, against their reserved portions. To learn more about the IPO, click here.

Meanwhile, the Rs 5,000 crore initial public offering (IPO) of Nuvoco Vistas Corp was subscribed 16% on the first day of bidding. Retail investors have subscribed 31% against their reserved portion. Non Institutional investors (NIIs) have subscribed 1% against their reserved portion. 

Indian Hotels Q1 Results: Net loss at Rs 277 crore

The Indian Hotels Company Ltd (IHCL) reported a consolidated net loss of Rs 277 crore for the quarter ended June (Q1 FY22). It had posted a net loss of Rs 279.9 crore in the corresponding quarter last year (Q1 FY21). Its revenue from operations jumped 139% YoY to Rs 344.55 crore in Q1 FY22. IHCL is a hospitality company that manages a wide portfolio of hotels, resorts, spas, etc. It is a subsidiary of the Tata Group.

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Editorial

CarTrade Tech IPO: All You Need to Know

Many of you may be familiar with auto platforms such as CarWale and BikeWale. It provides an in-depth analysis of all prominent cars and two-wheelers that ply on Indian roads. The company that operates these brands, CarTrade Tech Limited, has launched its three-day IPO today— August 9. In this article, we take a closer look into the company and learn more about its IPO.

Company Profile – CarTrade Tech Limited

CarTrade Tech Ltd (CTTL) is a multi-channel auto platform with coverage and presence across all vehicle types and value-added services. Their platforms help automobile customers, vehicle dealerships, automakers, and other businesses to buy and sell different types of vehicles in a simple and efficient manner. The company operates brands such as CarWale, BikeWale, CarTrade, Shriram Automall, CarTrade Exchange, Adroit Auto, and AutoBiz. 

The company generates revenue from commission or fees from auctions and remarketing services of used vehicles. It also earns income from online advertising solutions on platforms, lead generation, technology-based services, and inspection & valuation services. 

CarWale and BikeWale were ranked #1 on relative online search popularity amongst their peers in the previous financial year (FY21). On the other hand, Shriram Automall has become one of the leading platforms that facilitates the sale of used cars, two-wheelers, and farm & construction equipment. The company’s consumer platforms (CarWale, CarTrade, and BikeWale) collectively had an average of 2.71 crore unique visitors per month for the quarter ended June 2021 (Q1 FY22). Out of this, organic traffic (visitors that land on the platform as a result of unpaid search results) accounted for 88.14%!

CTTL has zero promoter holding and is a professionally managed company. It has a strong management team with significant industry experience. Large equity investors such as Highdell Investment (an affiliate of Warburg Pincus LLC), MacRitchie Investments (Temasek), CMDB II (JP Morgan) hold significant stakes in CarTrade Tech. The company is well-positioned to benefit from the growth of the automotive sector and digitalisation.

About the IPO

In July 2021, CarTrade Tech received approval from the Securities and Exchange Board of India (SEBI) to float its initial public offering (IPO). The public issue opens on August 9 and closes on August 11. The price band for the IPO has been fixed at Rs 1,585-1618 per share. 

The offer for sale (OFS) of up to 1.85 crore equity shares from existing shareholders aggregates to Rs 2,998.51 crore. Individual investors can bid for a minimum of 9 equity shares (1 lot) and in multiples of 9 shares thereafter. You will need a minimum of Rs 14,265 to apply for this IPO. The maximum number of shares that can be applied by a retail investor is 117 equity shares (13 lots). 

The primary objective of the IPO is to provide an exit strategy (or liquidity) to CarTrade Tech’s shareholders and early investors. Thus, the company is not raising any funds through the public issue. It aims to achieve the benefits of listing the equity shares on NSE and BSE. 

Financial Performance

CarTrade Tech has posted impressive financial performance over the past three years. Its revenue has grown at a CAGR of 1.3% during FY19-21, while net profit has increased at a rate of 133.8%. Even though revenue fell in the financial year ended March 2021 (FY21), profit had jumped 223% YoY. However, it was mainly due to a deferred tax write-back worth Rs 63 crore. The company derives ~57% of its revenue from commission and fees from vehicle auctions and remarketing services. Interestingly, CTTL is the only profitable automotive digital platform compared to key competitors (since FY19). 

The company has posted an average Earnings Per Share of Rs 11.93 during FY19-21. The average Return on Net Worth (RoNW) stands at 3.52%. RoNW shows how well the company uses shareholders’ capital (equity) to generate profits. Moreover, CTTL is a debt-free company.

Risk Factors

  • A general decline in individual car ownership or a sudden decline in demand for certain types of vehicles can adversely affect CarTrade Tech’s business.
  • The continuing impact and uncertainty surrounding the Covid-19 pandemic could severely impact its overall financial performance.
  • CTTL has stated that it may experience disruptions, failures, or breaches of its technology platforms. The company’s systems could be prone to third-party breaches through Trojans, spyware, ransomware, etc.
  • The failure to protect personal information and sensitive data could damage their reputation and brands.
  • The inability to keep pace with advancements in technology or the development of new products in a timely manner could lead to loss of business.
  • Any fraudulent behavior by sellers or buyers of used vehicles listed on the company’s platforms could adversely impact its business and reputation.
  • The increase in competition among automotive digital platforms could affect its profitability. Its key competitors include Cars24, CarDekho & BikeDekho, Mahindra First Choice Wheels, etc.

IPO Details in a Nutshell

The book-running lead managers to the public issue are Axis Capital, Citigroup Global Markets India, Kotak Mahindra Capital, and Nomura Financial Advisory and Securities. CarTrade Tech Ltd had filed the Red Herring Prospectus for its IPO in July 2021. You can read it here.

Conclusion

CarTrade Tech’s vision is to create a holistic automotive digital ecosystem to connect customers, automakers, dealers, banks, insurance companies, and other stakeholders. The company aims to help users select cars or bikes, compare prices, get the best policies, sell their old vehicles, and much more. However, they face intense competition from the unlisted companies as mentioned before. Even though valuations are high, analysts believe that it is justified as a result of CTTL’s strong brand growth, better technology platforms, and a profitable, scalable business model.

CTTL has received great interest in the grey markets (the unofficial markets for unlisted shares) as well. The grey market premium (GMP) is anywhere between Rs 380-400. It means that shares are being traded at Rs 400 above the issue price. 

Before applying for this IPO, we will wait to see if the portion reserved for institutions gets oversubscribed. Institutional investors have bought in a lot of shares in recently concluded IPOs. If that is the case here as well, we may be able to see some listing gains. As always, do consider the risks associated with this company and come to your own conclusion. 

What are your opinions on this IPO? Will you be applying for it? Let us know in the comments section of the marketfeed app.