Tag: CESC

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ONGC Posts 30% YoY Fall in Net Profit in Q2 – Top Indian Market Updates

ONGC

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

ONGC Q2 Results: Net profit falls 30% YoY to ₹12,826 crore

Oil & Natural Gas Corporation (ONGC) reported a 30% year-on-year (YoY) decline in net profit to ₹12,825.99 crore in Q2 FY23. Its revenue from operations rose 57.4% YoY to ₹38,321 crore during the same period. ONGC’s financial performance was severely impacted by the Central government’s new tax on windfall profits arising from a surge in international energy prices. The company’s board has declared an interim dividend of ₹6.75 per share.

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RBL Bank boosts retail focus, from loans to deposits: CEO

RBL Bank is looking to ramp up its retail exposure to protect its books from being over-exposed to large corporates and to help bolster growth alongside its key businesses of credit cards and microfinance, said CEO R Subramaniakumar. To improve its focus on the retail and mid-sized corporate segments, the bank has introduced new loan products such as two- and four-wheeler loans, gold loans, and education loans.

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Shriram Properties Q2 Results: Net profit at ₹19.6 crore

Shriram Properties Ltd reported a consolidated net profit of ₹19.59 crore for the quarter ended Sept (Q2 FY23). It posted a net loss of ₹23.27 crore in Q2 FY22. Its total income jumped 3-fold YoY to ₹275.83 crore in Q2 FY23. It has a strong development pipeline comprising 54 projects with an aggregate development potential of 54 million square feet as of Sept 30, 2022.

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KFintech receives SEBI approval for ₹2,400 crore IPO

KFin Technologies has received approval from SEBI for an initial public offering (IPO) of up to Rs 2,400 crore. The IPO will entirely be an offer for sale (OFS) by its promoter General Atlantic Singapore Fund. KFintech is a leading technology-driven investment solutions provider for Indian mutual funds. As on December 31, 2021, it provided services to 25 out of 42 operational asset management companies (AMCs) in India.

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CESC board approves raising ₹300 crore via NCDs

CESC Ltd’s board has approved a proposal to raise ₹300 crore through the issuance of non-convertible debentures (NCDs). The company will issue 3,000 secured, unlisted, redeemable, rated NCDs having a face value of Rs 10 lakh each. CESC is an RP-Sanjiv Goenka Group firm operating in the power sector. To learn more about the group, click here.

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BEL, Yantra India to cooperate in ammunition hardware, military-grade components

Bharat Electronics Ltd (BEL) has signed a Memorandum of Understanding (MoU) with Yantra India Ltd (YIL) for cooperation in the areas of ammunition hardware and military-grade components to jointly address the requirements of Indian defence and export markets.

BEL has also signed a pact with Spacefaring Technologies for cooperation in technology development in the field of deployable space habitats and aerostats for defence applications.

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India’s exports fell 17% to $29.78 billion in October

India’s exports declined sharply by 16.65% to $29.78 billion in October, mainly due to a global demand slowdown. Imports grew 6% to $56.69 billion due to an increase in the inbound shipments of crude oil and certain raw materials such as cotton, fertiliser, and machinery. The trade deficit (when the value of imports exceeds the value of exports) widened 50.25% YoY to $26.91 billion in Oct 2022.

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Bank credit to grow 15% YoY in FY23, FY24 on corporate demand: CRISIL

Bank credit in India is likely to grow at 15% YoY in this financial year (FY23) and next (FY24) on the back of corporate demand recovery and the strong balance sheet of lenders, as per a report from CRISIL Ratings. The estimate factors in an estimated 7% increase in gross domestic product (GDP) in FY23 and a boost to credit growth from the government’s infrastructure push.

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India to produce 50% energy from renewables by 2030: PM Modi

India is on track to achieve its target of generating 50% of its electricity from renewable sources by 2030, said Prime Minister Narendra Modi at the G20 summit in Indonesia. He added that India’s energy security is also important for global growth, as it is the world’s fastest-growing economy. He stressed the need for time-bound and affordable finance to be provided to developing nations.

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Editorial

The RP-Sanjiv Goenka Group: Origin & Businesses

The RP-Sanjiv Goenka Group (RPSG) is one of the largest diversified business groups in India. Since its formation nearly 11 years ago, the group has expanded into business segments such as power generation, carbon black, FMCG, information technology, infrastructure, media & entertainment, and much more. RPSG has established a direct presence in more than 35 countries. The group’s rapid growth and expansion can be attributed to the efforts and vision of its top-class family management. 

In this article, we take a look into the brief history of the RP-Sanjiv Goenka Group and learn more about their businesses.

Brief History of the Goenka Family

The RPSG Group was established in its current form in 2011. However, the Goenka family’s renowned history in Indian business dates back to nearly two centuries. In the early 1800s, the family was involved in the jute and tea sectors. After India’s independence in 1947, they ventured into the manufacturing sector after acquiring Octavius Steel from a company moving out of the country.

In the 1960s, Keshav Prasad Goenka transitioned the group’s business from trading to industry acquisitions in textiles, power, cables, and engineering. He then split his business empire amongst his three sons— Rama Prasad, Jagadish Prasad, and Gouri Prasad. Rama Prasad Goenka established RPG Enterprises in 1979. The entity started acquiring leading companies in the pharmaceutical, retail, power transmission & distribution, and entertainment industries.

In 2010, the group’s businesses were divided between Rama Prasad Goenka’s sons, Harsh and Sanjiv. Thus, the RP-Sanjiv Goenka Group was founded in July 2011 with Dr. Sanjiv Goenka as its chairman. Meanwhile, Harsh Goenka is the chairman of RPG Enterprises, the parent company of CEAT (tyre manufacturer), KEC International Ltd, and Zensar Technologies.

Listed Companies of RPSG Group

PCBL Limited (Formerly Phillips Carbon Black Ltd)

PCBL Limited manufactures and sells carbon black in India and across the globe. The Kolkata-based company offers various carbon black grades to the rubber industry under the ‘Orient Black’ brand. They also manufacture specialty blacks for applications like food contact plastics, fibers, wire & cables, films, adhesives, batteries, and paints under the ‘Royale Black’ brand.

Moreover, PCBL generates and distributes electricity from the tail gas recovered from carbon black production. The company has a total power generation capacity of 84 megawatts (MW).

CESC Limited

CESC Ltd is an integrated electric utility company. It generates, transmits, and distributes electricity primarily in West Bengal. The company owns and operates three thermal power plants as well. CESC serves ~2.9 million domestic, industrial, and commercial users within 567 square kms of Kolkata and Howrah. It has made Kolkata free of load shedding and brought in fault-free supply, quick response to local power outages, and swift redressal of customer grievances.

Saregama India Ltd

Saregama India Ltd (SIL) is engaged in the business of sound recording and publishing. The company’s music segment manufactures and sells music storage devices such as carvaans (music players with pre-loaded songs), music cards, and digital versatile discs. They produce, sell, telecast, and broadcast films, TV serials, and pre-recorded programs. The Mumbai-based company also publishes OPEN, a weekly current affairs magazine. 

Firstsource Solutions Ltd

Firstsource Solutions Ltd (FSL) is a leading provider of customized business process management (BPM) services in India and across the globe. The company primarily caters to the banking & financial services, healthcare, communications, and media industries. Their ‘Digital First, Digital Now’ approach helps corporations strengthen operations and business models. They have established long-term partnerships with over 100 leading global brands, including several Fortune 500 and FTSE 100 companies. FSL has employed over 28,000 people across the US, UK, India, and Philippines. 

Spencer’s Retail Ltd

Spencer’s Retail operates a chain of multi-format retail stores across India. It provides a wide range of quality products across categories such as food, personal care, fashion, home essentials, and electronics. The company also offers products under its own brands, such as Smart Choice, Tasty Wonders, and Clean Home. Currently, Spencer’s operates ~120 stores, including 37 hypermarkets in over 35 cities in India. 

Other Group Companies & Brands

In 2017, the RPSG Group entered the fast-moving consumer goods (FMCG) segment with Too Yumm!, a healthier snacking alternative. (You may have seen its eye-catching ads starring Virat Kohli). The FMCG business consolidated further with the acquisition of Apricot Foods, which sells packaged snacks under the ‘Evita’ brand. RPSG group is also present in the quick-service restaurant (QSR) space with Waffle Wallah, Bombay Toastee, and Biryani Battuta.

The group established RPSG Ventures in 2018. It is a consumer venture capital fund for innovative business-to-consumer (B2C) startups. They also made a strategic acquisition of Nature’s Basket, a retail chain well-known for its diverse portfolio of gourmet food. The company offers a wide range of organic food and imported ingredients. Interestingly, the RPSG Group is highly active in the Indian sports industry as well. It holds a majority stake in the iconic Mohun Bagan Athletic Club of Kolkata and Lucknow Super Giants, an IPL team. Over the last decade, the group has forayed into renewable energy options. It has set up wind and solar energy plants across Gujarat, Madhya Pradesh, Rajasthan, and Tamil Nadu.  

With a rich heritage, the $4 billion (revenue) RPSG Group has now become one of the most respected business conglomerates in India. Let us look forward to seeing how they execute future plans and expand further.

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Market News Top 10 News

Union Cabinet Approves Rs 14,775 crore for Fertiliser Subsidies – Top Indian Market News

Union Cabinet approves additional Rs 14,775 crore for fertiliser subsidies

The Union Cabinet has approved the proposal of the Department of Fertilizers for fixation of ‘Nutrient Based Subsidy Rates’ for Phosphatic and Potassic (P&K) Fertilizers for the financial year 2021-22. The subsidy rate on Di-ammonium Phosphate (DAP) fertilisers has been hiked by Rs 700 per bag. The government will spend an additional amount of Rs 14,775 crore to increase subsidy support. This is to cushion the impact of the surge in global prices of commodities on farmers amid the crucial Kharif sowing season. 

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RITES Q4 Results: Net profit declines 1.6% YoY to Rs 141 crore

Rail India Technical & Economic Service (RITES) reported a 1.65% YoY decline in consolidated net profit to Rs 141.55 crore for the quarter ended March (Q4). Its revenue from operations rose 11.4% YoY to Rs 635.87 crore during the same period. Net profit for the financial year 2020-21 (FY21) declined by 29.8% YoY to Rs 444.21 crore. The company’s board has declared a final dividend of Rs 4 per share. RITES is a leading player in the transport consultancy and engineering sector in India.

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LTI to acquire digital engineering firm Cuelogic for $8.4 million

Larsen & Toubro Infotech (LTI) Ltd has signed a definitive agreement to acquire Pune-based Cuelogic Technologies, a digital engineering and outsourced product development company. Cuelogic primarily focuses on developing cloud-native web and mobile applications and runs innovations lab as a service for its clients in the US and India. LTI will acquire the firm for $8.4 million (~Rs 61.5 crore). This is LTI’s seventh acquisition since it got listed in 2016.

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CESC Q4 Results: Net profit rises 15.5% YoY to Rs 423 crore

Calcutta Electric Supply Corporation (CESC) reported a 15.57% YoY increase in consolidated net profit to Rs 423 crore for the quarter ended March (Q4). Net profit has increased by 28.9% when compared to the previous quarter. Its total income rose 10% YoY (or 6% QoQ) to Rs 3,003 crore during the same period. CESC’s board has approved a proposal for a sub-division of equity shares. One equity share of the nominal value of Rs 10 each will be sub-divided into 10 equity shares of a nominal value of Re 1 each.

Dr. Reddy’s ordered to pay $46.25 million to Hatchtech

The International Centre for Dispute Resolution has ordered a subsidiary of Dr. Reddy’s Laboratories to pay $46.25 million (~Rs 340 crore) to Australia-based Hatchtech Pty. The subsidiary had signed an asset purchase agreement for a skin treatment lotion with Hatchtech in 2015. In July 2020, the subsidiary received approval from the US Food & Drug Administration (USFDA) for Xeglyze (abametapir) lotion. The approval triggered a contractual pre-commercialisation milestone payment of $20 million to Hatchtech Pty.

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Wipro partners with Exaware to upgrade 5G technology

Wipro Limited has entered into a strategic partnership with Israel-based Exaware, a provider of Open Network routing solutions. Through this partnership, both companies will develop advanced engineering solutions to support innovation in the networking industry, streamline 5G technology upgrades, and pave the way to 6G compatibility. Wipro and Exaware will develop engineering products, which will enable communication service providers to select different hardware and software vendors.

Alembic Pharma JV gets USFDA approval for testosterone topical solution

Aleor Dermaceuticals, a joint venture (JV) firm of Alembic Pharmaceuticals, has received final approval from the US Food & Drug Administration (USFDA) for Testosterone Topical Solution. The drug is used for treating testosterone deficiency. According to IQVIA data, Testosterone Topical Solution USP (30 mg per pump actuation) has an estimated market size of $21 million (~Rs 154 crore) for the 12 months ended March 2021. 

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Nureca Q4 Results: Net profit rises 63.45% YoY to Rs 3.89 crore

Nureca Limited reported a 63.45% YoY increase in consolidated net profit to Rs 3.89 crore for the quarter ended March (Q4). Net profit has declined by 38.25% when compared to the previous quarter. Its revenue from operations declined by 3.40% YoY to Rs 31.84 crore during the same period. Net profit for the financial year ended March 31, 2021 (FY21) jumped 625% YoY to Rs 46.37 crore. The company’s board has recommended a final dividend of Rs 2 per share. Nureca is a business-to-consumer (B2C) firm that deals in home healthcare and wellness products.

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PNB Housing Finance says pricing for Rs 4,000 crore deal in line with market practice

PNB Housing Finance said the pricing of its proposed issuance of shares to investors (led by the Carlyle Group) was based on the “market practice” followed by listed companies and is in compliance with the applicable laws. On June 12, it was reported that market regulator SEBI would scrutinise the Rs 4,000 crore share sale after SES (a proxy advisory firm) pointed out that the deal is unfair to the company’s minority shareholders. 

In May 2021, PNB Housing Finance announced that it will raise Rs 4,000 crore from large investors led by existing stakeholder Carlyle Group, by issuing preference shares and warrants. These securities are priced at Rs 390 per share.

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KPIT Technologies receives NCLT approval for scheme of merger

The Mumbai Bench of the National Company Law Tribunal (NCLT) has approved the scheme of merger by absorption of Impact Automotive Solutions with KPIT Technologies Ltd and their respective shareholders. Impact Automotive was a wholly-owned subsidiary of KPIT Tech. Pune-based KPIT Technologies is a leading provider of software solutions for automotive companies.

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IPO Updates: 

Shyam Metalics 

The Rs 909-crore initial public offering (IPO) of Shyam Metalics and Energy Ltd was subscribed 121.43 times on the final day of bidding. The portion reserved for retail investors was subscribed 11.64 times. The portion set aside for non-institutional investors (NIIs) saw a subscription of 339.98 times and that of qualified institutional buyers (QIBs) 155.71 times. You can learn more about the IPO here. 

Sona BLW Precision Forgings 

The Rs 5,550-crore IPO of Sona BLW Precision Forgings Ltd was subscribed 2.28 times on the final day of bidding. The portion reserved for retail investors was subscribed 1.58 times. The portion set aside for non-institutional investors (NIIs) saw a subscription of 39% and that of qualified institutional buyers (QIBs) 3.46 times. You can learn more about the IPO here.

Dodla Dairy

The Rs 520-crore IPO of Dodla Dairy Ltd was subscribed 1.4 times on the first day of bidding. The portion reserved for retail investors was subscribed 2.73 times. The portion set aside for non-institutional investors (NIIs) saw a subscription of 14% and that of qualified institutional buyers (QIBs) 2%.

KIMS 

The Rs 2,144-crore IPO of Krishna Institute of Medical Sciences Ltd was subscribed 27% on the first day of bidding. The portion reserved for retail investors was subscribed 100%. The portion set aside for non-institutional investors (NIIs) saw a subscription of 2% and that of qualified institutional buyers (QIBs) 14%.