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PVR to Merge With INOX – Top Indian Market News

PVR to merge with INOX to form India’s largest entertainment company

Multiplex chains PVR Ltd and INOX Leisure Ltd have decided to merge to form the largest entertainment company in India. On Sunday, the boards of the two companies approved the amalgamation and share exchange ratios. INOX shareholders will receive three shares in PVR for 10 shares of INOX. After the merger, PVR promoters will have a 10.62% stake, while INOX promoters will have a 16.66% stake in the combined entity. 

Read more here.

Tata Power, Rustomjee Group collaborate for EV charging infrastructure

Tata Power has partnered with real estate developer Rustomjee Group to provide electric vehicle (EV) charging solutions across its residential and commercial projects in Mumbai. The power company will install dedicated charging infrastructure for residents of Rustomjee in Mumbai MMR. EV owners will have the access to a 24×7 charging facility and maintenance support.

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L&T constructs 7-storey facility for DRDO in record 45 days

Larsen & Toubro Ltd has constructed a 7-storey, state-of-the-art Flight Control System (FCS) integration facility for the Defence Research and Development Organization (DRDO) in 45 days. The company used integrated hybrid modular construction technology to build the facility. Constructed on a total built-up area of 130,000 sq. feet, the site team had to coordinate with 21 off-site locations to integrate design, structure, and architecture services.

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Adani Group selects Google Cloud to modernise IT operations for future scale, innovation

Adani Group has announced a multi-year partnership with Google Cloud to modernise IT operations for future scale and group-wide innovation. The first phase of the partnership is underway. The Adani Group is making swift progress in migrating its extensive IT footprint from its existing on-premises data centre to Google Cloud.

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G R Infraprojects emerges lowest bidder for road project in Rajasthan

G R Infraprojects Ltd has emerged as the lowest (L-1) bidder for a road project in Rajasthan worth Rs 1,368 crore. The project involves the construction of a 4-lane greenfield expressway spur from Bandikui to Jaipur on a hybrid annuity model. It also entails an operations and maintenance cost of Rs 2.97 crore in the first year. G R Infraprojects is an integrated road engineering, procurement, and construction (EPC) company.

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HCL Tech to provide global service desk and on-site support to Novo Nordisk

Danish pharma company Novo Nordisk has selected Tata Consultancy Services (TCS) to provide global service desk and on-site support. Through the partnership, HCL will help Novo Nordisk transform its IT operations and drive efficiency across its workforce. HCL will implement a multilingual and omnichannel digital workplace solution for Novo Nordisk. 

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Coal India records high of 528 MT of coal supplies to domestic power utilities

Coal India Ltd (CIL) has supplied an all-time high of 528 million tonnes (MTs) of coal to India’s power utilities. This is 98.5% of the prorated demand of 535 MTs projected by the Ministry of Power and Central Electricity Authority. CIL is concentrating all its efforts to meet the projected coal demand of the power sector. The company is expected to open the next financial year (FY23) with over 60 MT at its pitheads (top or entrance of the mining pits).

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EaseMyTrip, DBS Bank India to launch green debit card

DBS Bank India has partnered EaseMyTrip to launch an environment-friendly international debit card. It is made from 99% recycled polyvinyl chloride (PVC) material. The digibank EaseMyTrip Green Debit Card provides exclusive travel-related offers to customers. It also rewards users for adopting eco-friendly practices while encouraging them to reduce their carbon footprint.

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Aurobindo Pharma acquires business and assets of Veritaz Healthcare for Rs 171 crore

Aurobindo Pharma Ltd has acquired the business and certain assets of Veritaz Healthcare for a cash consideration of Rs 171 crore. The transaction is expected to close by May 2022. Veritaz sells branded generic formulations and other healthcare-related products in the Indian market. Its sales and distribution network includes nearly 50,000 retailers, spread across 23 cities.

Aster DM Healthcare to invest Rs 500 crore to set up healthcare facilities in Tamil Nadu

Aster DM Healthcare Ltd has signed a Memorandum of Understanding (MoU) with the Government of Tamil Nadu to set up healthcare facilities. The MoU proposed an investment of Rs 500 crore in hospitals, pharmacies, and laboratories in Tamil Nadu. It will help provide affordable, quality healthcare and generate employment for more than 3,500 people.

Read more here.

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Reliance to Step Up Fuel Exports to Europe – Top Indian Market News

Reliance Industries to step up fuel exports to Europe

As per reports, Reliance Industries Ltd’s Jamnagar facility is lifting crude processing and deferring planned maintenance to take advantage of surging demand for diesel in Europe. RIL is already sending shipments of the fuel to Europe. The complex in Gujarat can process 1.36 million barrels of crude per day from two refineries and can export most of the fuel. 

Various Asian refiners are looking to send diesel abroad as crude oil prices surge in Europe following Russia’s invasion of Ukraine.

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Coal India receives 100% booking in its first single-window e-auction

Coal India Ltd’s first-ever offer of nearly 5.2 lakh tonnes (LT) of coal under the single-window e-auction received an encouraging response from coal consumers. 100% of the offered quantity was booked. After the merger of multiple auction windows into a solitary outlet, CIL conducted an e-auction in two of its subsidiaries on March 3, 2022. 

Cyient partners with iBASEt to drive business growth

Cyient has entered into a strategic partnership with iBASEt, a company that simplifies how complex products are built and maintained. iBASEt’s industry-leading manufacturing software solutions complement Cyient’s experience in implementing manufacturing execution solutions. 

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L&T Construction bags significant order from Delhi Metro

The heavy civil infrastructure business vertical of L&T Construction has won a significant order (in the range of Rs 1,000-2,500 crore) from the Delhi Metro Rail Corporation Ltd (DMRC). The scope of work includes the design and construction of 5 km of twin tunnel by shield tunnel boring machine, underground ramp, and four stations. The project is funded by Japan International Cooperation Agency (JICA).

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Expedia selects RateGain as a preferred connectivity partner

RateGain Travel Technologies Ltd announced its preferred connectivity partner status with Expedia Group. The company will work with the leadership team of Expedia Group to provide feedback and help shape future products and technology solutions. The Expedia Group Connectivity Partner Programme recognizes and rewards top connectivity providers, including channel managers, property management systems, and central reservation systems.

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PSP Projects secures order worth Rs 564 crore

PSP Projects Ltd has emerged as the lowest (L-1) bidder for a construction project in Gujarat. The order comprises the construction of a sports complex in Ahmedabad. The bid value of the project is Rs 563.99 crore. PSP Projects offers a wide range of construction and allied services for industrial, residential, and government residential projects in India.

Hatsun Agro to sell RTE business, Oyalo brand to Naga Ltd

Hatsun Agro Product Ltd (HAPL) has entered into a pact with Naga Ltd. to sell its Ready to Eat (RTE) business and ‘Oyalo’ brand for Rs 25 crore. The transaction will be effective by end of April 2022. As of March 2021, RTE’s net worth (based on the gross value of assets) was Rs 59.87 crore (5.86% of the net worth of the company). HAPL’s net worth stood at Rs 1,021.51 crore.

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J. Kumar Infra secures orders worth Rs 2,032 crore

J. Kumar Infraprojects Ltd has secured a work order from Pune Municipal Corporation for the development of the Mula Mutha river from Bund Garden Bridge to Mundhwa under the Pune river rejuvenation project. The order is worth Rs 604.75 crore. The company has also won an order worth Rs 1,426.99 crore for designing and constructing twin tunnels and four underground stations of Phase-IV of Delhi Metro.

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Vodafone UK in talks to sell remaining 21% in Indus Towers

As per an ET report, Vodafone Group Plc is in advanced talks with American Tower Co (ATC), Crown Castle International, Brookfield, and others to sell its remaining 21% stake in Indus Towers through block deals. Vodafone UK’s residual stake of 56.72 lakh shares in Indus Towers is valued at ~Rs 11,571 crore. Once Vodafone sells its stake in Indus Towers, it will mark the company’s exit from the passive telecom infrastructure business in India.

Read more here.

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Coal India’s Output Grows 4% in Feb – Top Indian Market News

Coal India’s output grows 4% to 64 MT in February

Coal India Ltd (CIL) produced 64.3 million tonnes (MT) of coal in February 2022, registering a growth of 4% YoY. On a month-on-month basis, CIL’s average production increased to 2.3 MT per day in Feb. The company’s production at 542.4 MT during the April-February period of FY22 was a historic high for this period. CIL expects to post the highest ever production by the end of the current financial year (FY22).

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Auto sales data for February 2022: Highlights  

Maruti Suzuki India posted a 6.26% month-on-month (MoM) decline in total sales to 1,64,056 units in February 2022. Sales of its compact vehicle segment rose 8.19% MoM to 97,486 units. Exports increased by 34% MoM to 24,021 units.

Tata Motors Ltd registered a 1.95% MoM decline in passenger vehicle sales to 39,981 units in Feb. The automaker’s commercial vehicle sales rose 6.5% MoM to 37,522 units. Overall domestic sales rose 1.91% MoM to 73,875 units.   

Mahindra & Mahindra’s auto segment posted total sales of 54,455 units in Feb, an increase of 16.34% over January. M&M’s farm equipment segment posted a 9.8% fall in sales to 20,437 units. 

Escorts posted a 7.13% MoM growth in tractor sales to 6,114 units in February.  

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BPCL to invest Rs 4,000 crore for gas distribution project in Aurangabad, Ahmednagar

Bharat Petroleum Corporation Ltd (BPCL) has launched a gas distribution network in the Aurangabad and Ahmednagar districts of Maharashtra. The company will invest Rs 4,000 crore for the completion of the project. BPCL plans to connect 3 lakh customers in the first phase and seven lakh in the next five years.

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Lupin launches generic drug in US market

Lupin Ltd has launched Sevelamer Hydrochloride tablets (800 mg) in the US market. The drug is used to treat hyperphosphatemia in patients with chronic kidney disease. The medication will be manufactured at the pharma company’s facility in Nagpur. As per IQVIA December 2021 data, Sevelamer Hydrochloride tablets had estimated annual sales of $75 million (~Rs 567.6 crore).

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Adani Group to acquire minority stake in Quintillion Business Media

Adani Media Ventures, a wholly-owned subsidiary of Adani Group, has entered into a binding term sheet with Quint Digital Media Ltd. The Adani Group will acquire a minority stake in local Quintillion Business Media Pvt Ltd (QBM), an indirect subsidiary of Quint Digital. The proposed transaction is only for QBM, a local digital business news platform. Adani will not acquire a stake in other digital media/tech properties owned by Quint Digital such as The Quint, thenewsminute, and Youthkiawaaz.

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Mumbai Court temporarily stops Future Enterprises from selling stake in insurance JV

The City Civil Court in Mumbai has temporarily restrained Future Enterprises Ltd from selling its stake in Future Generali India Insurance Co. Ltd to its joint venture partner Generali Group until further orders. The court was hearing a plea filed by IDBI Trusteeship Services Ltd (on behalf of its bondholders) for an injunction against Future Group. Debt-laden Future Group is facing trouble on multiple fronts. Recently, Reliance Industries seized control of over 300 large-format stores and shuttered them for alleged non-payment of rents.

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Parag Milk Foods hikes milk prices by Rs 2 per litre

Parag Milk Foods Ltd has raised the price of its Gowardhan brand of cow milk by Rs 2 per liter due to rising input costs. On Monday, Gujarat Cooperative Milk Marketing Federation (GCMMF) announced a hike in milk prices by Rs 2 per litre from March 1. GCMMF markets milk and milk products under the Amul brand. The rise in energy, packaging, and logistics costs has led to an increase in the overall cost of operation and milk production.

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Reliance Retail acquires majority stake in Abraham & Thakore

Reliance Retail Ventures Ltd (RRVL) has invested in Abraham & Thakore Exports Pvt Ltd (A&T) for a majority stake. RRVL will leverage Reliance Brands Ltd’s deep understanding of the affluent Indian customer and their influence across digital, retail operations, marketing, and supply chain platforms to build A&T’s global appeal in the fashion and lifestyle category.

Inox Leisure commences operations of multiplex in S Mall, Tumakuru

Inox Leisure Ltd has commenced commercial operations of a multiplex cinema theater at S Mall, Tumakuru in Karnataka. The multiplex has five screens and 1,069 seats. INOX is now present in 72 cities with 160 multiplexes, 675 screens, and a total seating capacity of 1.52 lakh across India.

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HCL Tech launches two new 5G applications

HCL Technologies Ltd has launched two new 5G applications to help mobile network operators optimize their customer experience. It will also help reduce energy consumption across their 4G and 5G infrastructure. The HCL ANA Platform is HCL’s next-generation network optimization solution that enables mobile operators to effectively manage their 5G and 4G services. HCL’s QoE application allows mobile network operators to provide seamless, fast, and reliable 5G services using artificial intelligence (AI).

Read more here.

Tata Steel arm to acquire bio-ceramics firm Ceramat

Tata Steel Advanced Materials (TSMAL) has executed a share purchase cum shareholders’ agreement to acquire a 90% equity stake in Ceramat Pvt Ltd (CPL). TSMAL, a subsidiary of Tata Steel Ltd, will acquire 90% of the equity shares of CPL for Rs 90,000. The deal is expected to close in 60 days. CPL, a healthcare-focused ceramics company, is yet to commence production.  

Read more here.

Adani Green Energy’s unit gets LoA to set up 150 MW solar power project

Adani Renewable Energy Holding Fifteen Ltd (AREHFL) has received a letter of award (LOA) to set up a 150 megawatt (MW) solar power project. The fixed tariff for this project capacity is Rs 2.34 per kilowatt-hour (kWh) for a period of 25 years. With this project, Adani Green Energy Ltd has a total renewable energy project portfolio of 20.434 MWac.

Read more here.

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Vedanta to Invest up to $20B in Semiconductor Biz – Top Indian Market News

Vedanta to invest up to $20 billion in semiconductor business in India

Vedanta Ltd has earmarked $15 billion for its foray into the electronic chip and display manufacturing space. The conglomerate plans to scale up the investment to as much as $20 billion (~Rs 1.49 lakh crore). Vedanta’s group firm Avanstrate will spearhead the semiconductor business. It expects to roll out electronic chips and displays from Indian manufacturing plants by 2025.

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Mahindra Holidays & Resorts to sell entire 10.76% stake in Nreach Online Services

Mahindra Holidays & Resorts India Ltd will sell its entire 10.76% stake in Nreach Online Services Pvt Ltd to Gift Management Asia Pte Ltd (GMAPL) for a consideration of Rs 29.31 crore. The company has entered into an agreement with GMAPL for the sale of its entire investment consisting of 5,738 equity shares in Nreach Online Services. The transaction is expected to be completed on or before July 31, 2022.

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Coal India’s fuel supply stands at 575 MT so far in FY22

Coal India Ltd (CIL) has supplied 575 million tonnes (MT) of coal so far this financial year (FY22), surpassing the total dispatch of dry fuel in 2020-21. The company had dispatched 574.5 MT of coal in FY21. Meanwhile, coal imports were down to a nine-year low due to a sharp increase in international coal prices. 

CIL has warned that the production of coal may fall if the company is not able to raise prices. It is facing cost pressures from a looming rise in salaries and on higher prices of diesel used to power mining equipment.

Read more here.

IndiGo takes delivery of A320 neo plane powered with sustainable aviation fuel

IndiGo has taken delivery of its first aircraft from Airbus (A320 neo) that operated on a blend of sustainable aviation fuel and normal fuel. The airline’s CEO, Ronojoy Dutta, said they are also talking to a lot of manufacturers on Sustainable Aviation Fuel (SAF). Over a period from 2016 to 2023, IndiGo is aiming at a 16% reduction in carbon emissions.

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Domestic air traffic falls 43% to 64.08 lakh passengers in Jan: DGCA

Domestic air traffic fell around 43% to 64.08 lakh passengers in January 2022. The passenger load factors (or occupancy rates) fell for all Indian carriers last month. SpiceJet reported the highest seat occupancy of 73.4% in Jan, compared to 80.2% in December. IndiGo registered a load factor of 66.6% in Jan, compared to 78.1% in Dec. The data was released by the Directorate General of Civil Aviation (DGCA).

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Bank of Baroda, Canara Bank announce subscription to IDRCL shares

Canara Bank has picked up a 14.9% stake in India Debt Resolution Company Ltd (IDRCL), while Bank of Baroda bought 12.3% in it. IDRCL is an asset management company set up by the government. It will work in association with the National Asset Reconstruction Company Ltd (NARCL) to clean up the banking sector’s bad loans (NPAs). IDRCL will provide management and resolution of assets acquired by NARCL.

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Indian Oil sets up 1,000 EV charging stations

India’s largest oil refiner Indian Oil Corporation Ltd (IOCL) has set up 1,000 electric vehicle charging stations. Now, IOCL has EV charging points in more than 500 towns and cities, including multiple state and national highways. It has collaborated with Tata Power PowerGrid, NTPC, Tech Mahindra, Ola, and BHEL for setting up EV chargers at its fuel stations. The company is targeting to provide EV charging facilities at 10,000 fuel stations in the next three years.

Read more here.

MRF lines up Rs 1,000 crore expansion plan in Telangana

MRF Limited has announced an investment of Rs 1,000 crore for expansion of its facility and creating a new specialty assembly line at Sangareddy, Telangana. The company’s officials also offered Rs 4 crore to the state government’s ‘Mana vooru – Mana badi’ program under its corporate social responsibility (CSR) initiative.

Read more here.

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Good News from Russia: Markets Recover – Share Market Today

News Shots 

Burger King India closed its qualified institutional placement issue and finalised the issue price at Rs 129.25 per share, a discount of 5 percent to the floor price of Rs 136.05 per share.

Torrent Power completed transaction of acquisition of 100 percent stake in special purpose vehicle Visual Percept Solar Projects. The acquisition was as per the Share Purchase Agreement between Torrent Power, Blue Diamond Properties and Balrampur Chini Mills.

Investor Marina IV (Singapore) Pte Ltd sold a 2.14 percent equity stake in Redington India via open market transactions on February 11. As a result, its shareholding in the company dropped to 3.22 percent, from 5.36 percent earlier.

Vedant Fashions will make its debut on the BSE and NSE today. The final issue price has been fixed at Rs 866 per share. It would be the third listing in the year 2022 after AGS Transact Technologies and Adani Wilmar.

Tech Mahindra approved the proposal to acquire 80% equity shares in Geomatic.ai Pty through its subsidiary Tech Mahindra (Singapore) Pte for Rs 32.24 crore (A$6 million).

What to expect? 

NIFTY opened the day with a gap-up at 16,936. Taking resistance at 17,000, NIFTY moved down but bounced back from 16,840. NIFTY crossed the day-high and halted near 17,100 before it gave a fantastic breakout. All the resistances were broken and NIFTY closed the day at 17,352, up 510 points or 3.03%.

BANK NIFTY opened with a gap-up at 38,170 and moved down even crossing the day-low. The index gave a huge breakout after a small pause at 37,350 and crossed 38,000. BANK NIFTY closed the day at 38,170, up 1,262 points or 3.42%.

All the sectors closed in the green with AUTO moving up by 4%.

The US markets moved higher yesterday. The European markets closed well in the green.

The Asian markets also moved up following the positivity. The U.S. Futures are slightly in the red and the European futures are mixed with DAX futures flat.

SGX NIFTY is trading at 17,384 indicating a gap-up opening.

NIFTY has supports at 17,280, 17,210, 17,150 and 17,100. We can expect resistances at 17,380, 17,435-17,450, 17,540 and 17,610.

BANK NIFTY has supports at 38,000, 37,550, 37,300. Resistances are at 38,400, 38,800 and 39,000.

NIFTY has the highest call OI build-up at 17,700. The highest put OI build-up is at 17,000.

BANK NIFTY has the highest call OI build-up at 39,000 and the highest put OI build-up at 37,000.

INDIA VIX  dropped by 10% to 20.61.

Foreign Institutional Investors net sold shares worth Rs 2,300 crores. Domestic Institutional Investors net bought shares worth Rs 4,400 crores. 

It was interesting price action in BANK NIFTY. The index had moved below the previous day-low and many of the buyers’ stop loss would have got hit. A huge up-move followed and also, there was a news based recovery in the second half. Russia’s defence ministry said that some of the troops from Ukrainian borders will return to the base after drills later this week, probably on the 20th. They have already started withdrawing troops. This drove the markets higher.

With the same news, oil prices have come down. Also, the gold prices dropped. The tensions have eased and let’s hope that we will not have to see a war. At the same time, there will be dialogues in the coming days and all the events have to be watched closely as the markets will be sensitive to news related to Ukraine.

Hong Kong is facing a giant wave of Covid cases with patients waiting for treatments as the hospital facilities are unable to meet the rising cases. But we can see that the markets are trading unaffected now. If there is a lockdown that the government has ruled out now, there can be a severe impact.

India’s January exports data showed that there was a 25% rise in exports. Coal India posted good results with a 48% increase in profits YoY beating the estimates.

There are chances that the market may consolidate within a range today as it has been volatile moves in the past days. Let us watch the zone of 17,435-17,450 in NIFTY for another major up-move.

Follow us on the marketfeed app’s Live Feed section to get real-time updates from the market. All the best for the day!

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Services PMI Falls to 3 Month Low in December – Top Indian Market News

Services PMI falls to 3 month low in December

India’s services sector activity fell to a three-month low in December but remained in the expansion zone. The IHS Markit India Services Purchasing Managers’ Index (PMI) stood at 55.5 in December 2021, compared to 58.1 in November. PMI is a month-on-month calculation, and a value above 50 represents an expansion when compared to the previous month. The increase in new orders was centered on the domestic market, while new business from abroad fell further due to Covid-related restrictions.

Read more here. 

Adani Transmission to transfer certain assets, liabilities to new unit

Adani Transmission Ltd (ATL) intends to transfer certain of the company’s assets and liabilities to a newly incorporated subsidiary— Adani Transmission Step-One Ltd. The assets and liabilities include ATL’s shares in Adani Transmission India Ltd (ATIL) and Maharashtra Eastern Grid Power Transmission Ltd (MEGPTCL). It also includes inter-corporate debt provided by the company to ATIL and MEGPTCL.

Read more here.

Coal India’s April-December capex rises 37% YoY to Rs 10,717 crore

Coal India Ltd (CIL) incurred a capital expenditure (capex) of Rs 10,717 crore till December of the current financial year, registering a 37.4% year-on-year (YoY) growth. CIL’s capex spend during the period marks 86.3% of the target achievement. Construction of coal handling plants, silos with Rs 1,344 crore, and rail sidings and rail corridors at Rs 1,785 crore made up 29% of CIL’s entire capex during the period.

Read more here.

L&T Heavy Engineering secures significant orders in Q3

Larsen & Toubro’s Heavy Engineering arm has secured significant contracts for its various business segments in the third quarter (Q3 FY22). The modification, revamp, and upgrade (MRU) business of the company has received a contract from a key hydrocarbon sector customer in the Middle East. The MRU business has also won a project for RFCC (residue fluid catalytic cracking) revamp as part of the expansion of the Barauni Refinery (BR-9) by Indian Oil Corporation Ltd.

Read more here.

HFCL partners with Apercomm to power its network offerings with AI

HFCL Ltd will integrate artificial intelligence (AI) into its entire IO products portfolio in partnership with Apercomm, an AI-powered Wi-Fi analytics tech provider. The telecom company’s wireless solutions will be able to monitor customer experience in real-time and calibrate Wi-Fi network through its cloud management platform. HFCL plans to offer this AI solution to its existing customers for over 100,000 existing deployments. 

Read more here.

Nelco secures contract worth Rs 40 crore from ONGC

Nelco Ltd has secured a contract from Oil and Natural Gas Corporation (ONGC) to provide satellite communications at offshore sites. The contract is worth Rs 40 crore. The scope of the project includes the supply, commission, and maintenance of ONGC’s captive very small aperture terminal (VSAT)-based network. This network will be used to enhance the communication infrastructure of ONGC’s Western India offshore sites. 

Read more here.

ABB India launches flameproof low voltage motors for explosive atmospheres

ABB India Ltd, an engineering services company, has unveiled a new range of flameproof (FLP) motors. The motors are a safe choice for applications in potentially explosive environments. The FLP motors offer considerable benefits, including low vibration levels with increased reliability for an extended lifetime and reduced maintenance requirements. The product will be manufactured at ABB India’s facility in Faridabad, Haryana.

Arbitration between Amazon, Future put on hold by Delhi HC

The Delhi High Court halted Future Group’s ongoing arbitration with Amazon.com, Inc. in light of an Indian antitrust agency’s suspension of a 2019 deal between the two sides. The e-commerce giant successfully used the terms of its 2019 investment in a Future unit to block the Indian retailer’s attempt to sell retail assets to rival Reliance Industries Ltd, alleging breach of certain contracts.

Read more here.

JSL supplies 2,000 tonne stainless steel for Kanpur Metro Project

Jindal Stainless Ltd (JSL) has supplied 2,000-tonne steel for the Kanpur Metro Project, which was inaugurated by PM Narendra Modi last week. The company provided high-quality stainless steel in various tempers (strength levels) to rolling stock manufacturer Alstom. The first train set was handed over to Uttar Pradesh Metro Rail Corporation (UPMRC) by Alstom on September 18, 2021. The scope of the metro project included the design and development of 201 coaches.

Read more here.

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Asian Paints to Hike Prices by 4-6% From Dec – Top Indian Market News

Asian Paints to hike prices by 4-6% from December

Asian Paints Ltd has confirmed that it is taking a price hike of about 4-6% starting December 5 to offset the impact of rising input costs. The company had earlier hiked prices by 8-9% with effect from November 12. So far, it has taken a cumulative price hike of about 15-16% this year. Asian Paints said high raw material inflation will push the pace of price hikes.

Read more here.

Coal India allocates 17.34MT of coal to power sector under special forward e-auction in April-Sept

Coal India Ltd (CIL) allocated a 72.1% higher quantity of coal at 17.34 million tonnes (MT) under the special forward e-auction scheme to the power sector during the April-September period. The company had allocated 10.07 MT of coal under the scheme in the year-ago period. Coal distribution through forward e-auction is aimed at providing access to coal for consumers who wish to have an assured supply over a long period to plan their operations.

Read more here.

Bharti Airtel partners with open network provider Mavenir for 5G trials

Bharti Airtel has partnered with US-based Mavenir for open radio access network (O-RAN)-based 5G field trials in the 3,500 MHz and millimeter wave (mmWave) bands at Chandigarh tri-city. The alliance between the two firms includes the deployment of captive 5G standalone and non-standalone modes for both core and radio networks in Chandigarh’s urban and rural areas. It would further allow Bharti Airtel to test a vendor-neutral ecosystem.

Read more here.

Zebra Technologies selects TCS to drive digital transformation

Tata Consultancy Services (TCS) has entered into a strategic transformation engagement with US-based Zebra Technologies Corp to drive its IT agile transformation. Zebra provides a portfolio of purpose-built hardware, software, services, and solutions that digitize and automate workflows for the retail, manufacturing, and logistics sectors. TCS will play a key role in the end-to-end global agile transformation of Zebra’s IT that supports its systems and applications used by 8,800 employees in 45 countries.

Read more here.

Meghmani Organics to invest Rs 400 crore for white pigment plant at Dahej

Meghmani Organics Ltd will set up a manufacturing facility for White Pigment Titanium Dioxide (TiO2) in Dahej, Gujarat. The total capital expenditure (capex) allocated for the project is Rs 400 crore. The plant will have a capacity of 33,000 tonnes per annum. TiO2 has application as a bright white pigment in various industries including paint, coating, plastic, ink, dyes, paper, and cosmetics.

Read more here.

Coromandel to set up sulphuric acid plant in Vizag for Rs 400 crore

Coromandel International Ltd has announced plans to set up a 1,650 metric tonnes per day (MTPA) sulphuric acid plant at its fertiliser complex in Visakhapatnam. The company will invest Rs 400 crore for this project. The plant will add another 500,000 tonnes a year of sulphuric acid production capacity to the existing 600,000 tonnes. 

Read more here.

Rakesh Jhunjhunwala’s Akasa Air orders 72 Boeing 737 Max jets

Rakesh Jhunjhunwala-backed Akasa Air has signed a deal with Boeing for 72 fuel-efficient 737 MAX airplanes. The order is valued at nearly $9 billion (~Rs 67,000 crore) at list prices. The low-cost carrier plans to offer commercial flights starting in the summer of 2022 and use its new fleet of 737s to meet the growing demand across India. In October, the Ministry of Civil Aviation had given a no-objection certificate (NOC) for the operation of Akasa Air in India.

Read more here.

Ashok Leyland’s EV arm to supply 300 e-buses to BMTC

Ashok Leyland’s electric vehicle (EV) arm, Switch Mobility, has received an order to supply and operate 300 electric buses for Bengaluru Metropolitan Transport Corporation (BMTC). The fleet and charging infrastructure will be supplied, operated, and maintained by Switch Mobility for a period of 12-years. The electric buses of Ashok Leyland are expected to reduce fuel consumption by around 5.5 million litres annually. 

Read more here.

HCL Tech secures multi-year deal from Euroclear Group

HCL Technologies (HCL) has announced a new multi-year application deal with Belgium-based Euroclear Group to accelerate its agile transformation journey. Euroclear is the world’s largest provider of domestic and cross-border settlement and related services for bond, equity, and fund transactions. HCL Tech will work with Euroclear to explore new business models and market opportunities to create value through innovation and data monetisation.

Read more here.

Tarsons Products IPO subscribed 3.58 times on second day

The Rs 1,023.47 crore IPO of Tarsons Products Ltd was subscribed 3.58 times on the second day of bidding. Retail investors have subscribed 4.74 times against their reserved portion. Non Institutional investors (NIIs) and Qualified Institutional Buyers (QIBs) have subscribed 3.98 times and 1.30 times, respectively, against their reserved portions. 

To learn more about the IPO, click here.

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Retail Inflation Rises to 4.48% in October – Top Indian Market News

Retail inflation rises marginally to 4.48% in October

India’s retail inflation, as measured by the Consumer Price Index (CPI), rose marginally to 4.48% in October from 4.35% in September. This is the fourth successive month that the CPI data has come below the Reserve Bank of India’s (RBI) upper margin of 6%. Food inflation has increased slightly to 0.85% in October from 0.68% in September.

Meanwhile, India’s factory output, measured in terms of the Index of Industrial Production (IIP), witnessed a 3.1% year-on-year (YoY) growth in September. The mining sector saw a growth of 8.6% YoY to 95.1 in September, while the manufacturing sector saw a rise of 2.7% YoY to 129.9. 

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ONGC Q2 Results: Net profit jumps 565% YoY to Rs 18,347 crore 

Oil and Natural Gas Corporation (ONGC) Ltd reported a 565% YoY jump in net profit to Rs 18,347 crore for the quarter ended September (Q2 FY22). Its revenue from operations rose 44% YoY to Rs 24,353.6 crore during the same period. The operating margin expanded to 48.17% in Q2 FY22 compared to 37.78% in Q2 FY21. ONGC’s board has declared an interim dividend of Rs 5.5 per share.

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KEC International wins orders worth Rs 1,415 crore

KEC International Ltd has secured new orders worth Rs 1,415 crore in the Civil and Oil & Gas Pipeline businesses in India. The company has received an order from Chennai Metro Rail Limited (CMRL) for the construction of elevated viaduct along with 11 stations. It has received a civil infra works order from a defence entity. KEC International has also secured an order from Indian Oil Corp for the laying of oil and gas pipelines.

Vodafone Idea Q2 Results: Net loss narrows to Rs 7,132 crore

Vodafone Idea (Vi) reported a consolidated net loss of Rs 7,132.3 crore for the quarter ended September (Q2 FY22). It had posted a net loss of Rs 7,319 crore in the previous quarter. Its revenue from operations rose 3% QoQ to Rs 9,406.4 crore during the same period. Vi’s operating profit rose 4.2% QoQ to Rs 3,862.9 crore. The average revenue per user (ARPU) stood at Rs 109 in Q2, an increase of 4.8% QoQ.

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Grasim Industries Q2 Results: Net profit jumps 180% YoY to Rs 979 crore

Grasim Industries Ltd reported a 180% YoY jump in net profit to Rs 979.1 crore for the quarter ended September (Q2 FY22). Its revenue from operations rose 67% YoY to Rs 4,933 crore during the same period. The company’s operating profit increased 87% YoY to Rs 1,504 crore. Grasim’s chemical business posted a 44.5% YoY growth in total sales to Rs 1,627 crore in Q2. 

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Ramkrishna Forgings partners with ePropelled to manufacture eDTS motor technology

Ramkrishna Forgings has signed a Memorandum of Understanding with ePropelled (USA), a technology company that offers leading-edge electric propulsion systems. The two companies will develop eAxle products based on ePropelled’s patented Dynamic Torque Switching™ (eDTS) technology. The solution increases power efficiency by at least 15%, allowing manufacturers to reduce the size and cost of their battery packs.

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Coal India Q2 Results: Net profit falls marginally to Rs 2,933 crore

Coal India Ltd reported a 0.6% YoY decline in consolidated net profit to Rs 2,933 crore for the quarter ended September (Q2 FY22). Net profit fell 7.5% compared to the previous quarter. Its revenue from operations rose 10% YoY to Rs 23,291 crore during the same period. The raw coal production improved to 125.83 million tonnes (MT) in Q2 FY22, compared to 114.98 MT in Q2 FY21.

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Airtel Payments Bank to double business correspondent network to 1 million a year

According to a report from Economic Times, Airtel Payments Bank plans to double its countrywide business correspondents (BCs) network to 1 million in the next 12 months. It also aims to drive monetisation through a combination of transactions and interest-based income, besides boosting revenues from cash management services in the business-to-business (B2B) space. APB is looking to gain the necessary reach to cater to the remittances market and the Aadhar-enabled payment services business to serve millions of potential customers.

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Hindalco Q2 Results: Net profit jumps 783% YoY to Rs 3,417 crore

Hindalco Industries Ltd reported a 783% YoY jump in consolidated net profit to Rs 3,417 crore for the quarter ended September (Q2 FY22). Net profit increased 23% compared to the previous quarter. Its revenue from operations rose 52.6% YoY to Rs 47,665 crore during the same period. EBITDA stood at Rs 8,048 crore in Q2, a growth of 56% YoY (or 19% QoQ). Hindalco said its Q2 performance was largely driven by a strategic product mix, higher volumes, and stability in operations.

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SJVN signs pact with Solarworld to develop 75 MW solar power project in UP

SJVN Limited has signed an agreement with Noida-based Solarworld Energy Solutions to develop a 75 megawatt (MW) solar power project at Parasan Solar Park in Uttar Pradesh. The total cost of the project is Rs 313.59 crore. The project will generate 168.34 million units (MU) of energy annually with a capacity utilisation factor (CUF) of 25.06%.

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Motherson Sumi Q2 Results: Net profit falls 36% YoY to Rs 217 crore

Motherson Sumi Systems Ltd (MSSL) reported a 35.8% YoY decline in net profit to Rs 216.96 crore for the quarter ended September (Q2 FY22). Its revenue from operations fell 5.9% YoY to Rs 14,076.39 crore during the same period. Total expenses fell by 3% YoY to Rs 14,001.29 crore in the second quarter.

Read more here.

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PVR Cinemas to Live Screen ICC Men’s T20 World Cup 2021 – Top Indian Market News

PVR Cinemas to live screen ICC Men’s T20 World Cup 2021

PVR Cinemas has signed a deal with the International Cricket Council (ICC) to screen live matches of the ICC Men’s T20 World Cup 2021 across the country. The matches will be screened across more than 75 cinemas in 35+ cities. The seventh edition of the T20 World Cup tournament, jointly held in UAE and Oman, will begin on Sunday (Sept 17).

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L&T makes entry into online earning space with L&T EduTech

Larsen & Toubro (L&T) has announced the launch of L&T EduTech, a new application-based learning platform to help create industry-ready talent. The platform aims to future-proof L&T’s businesses and bridge the gap that exists between the competence of young engineers and industry expectations. L&T EduTech will channelise L&T’s storehouse of knowledge to empower both students and professionals with real-world professional skilling to enhance their employability.

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Reliance Brands to acquire 40% stake in Manish Malhotra’s designer label

Reliance Brands Limited (RBL) has signed definitive agreements to acquire a 40% stake in MM Styles Private Limited, owned by homegrown designer Manish Malhotra. RBL’s investment intends to drive growth for the 16-year-old couture label both in India and overseas and establish the ‘Manish Malhotra’ brand as a global couture powerhouse. The brand will continue to be led by Malhotra as the managing and creative director.

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M M Forgings acquires Cafoma Autoparts for Rs 33 crore

M M Forgings Ltd has fully acquired Cafoma Autoparts Pvt. Ltd. for Rs 33 crore, including subordinated debt of Rs 5 crore. The company is engaged in machining, manufacturing, buying, selling, and distribution of all types of auto parts and engine parts. The investment would result in business synergy and enhance the current business operation of M M Forgings and its potential expansion.

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Metropolis Healthcare’s board clears acquisition of Hitech Diagnostic for Rs 636 crore

The Board of Directors of Metropolis Healthcare has approved the acquisition of Hitech Diagnostic Centre and its subsidiary Centralab Healthcare Services for Rs 636 crore. The indicative period for completion of the acquisition is six months. Mumbai-based Metropolis Healthcare is India’s largest chain of diagnostic centres and pathology labs.

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Rain Industries’ arm completes upgradation project of cement plant

Rain Cements Limited, a wholly-owned subsidiary of Rain Industries, has completed the upgradation of its Cement Mill at Unit-II, Boincheruvupalli village in Andhra Pradesh. The company’s cement grinding capacity has increased from 2.033 million tonnes (MT) to 2.795 MT per annum. Rain Industries is one of the world’s leading producers of calcined petroleum coke, coal tar pitch, and other high-quality specialty chemicals.

CIL to refrain from conducting e-auction till situation stabilises

Amid the low stock position at the electricity generating plants, state-owned Coal India Ltd (CIL) has asked its subsidiaries to refrain from conducting any further e-auction of coal (except special forward e-auction for the power sector) till the situation stabilises. The development assumes significance as the supply of coal is being prioritised to the power sector to replenish the decreasing stock in the wake of reports of an electricity crisis looming large. Owing to skyrocketing coal prices in international markets, all consumers have been competing for domestic coal, hiking up the demand. 

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Dr. Reddy’s Labs launches Carmustine for Injection in the US market

Dr. Reddy’s Laboratories announced the launch of Carmustine for Injection, USP, in the US market. The drug is a lyophilized powder available as a package that includes a single-dose vial containing 100 mg Carmustine USP and a vial containing 3 mL sterile diluent. According to IQVIA data, the generic version of the drug had US sales of ~$19.4 million (~Rs 145.56 crore) for the twelve months ended August 2021.

India’s forex reserves rise by $2.04 billion to $639.51 billion

India’s foreign exchange (forex) reserves rose by $2.039 billion to $639.516 billion in the week ended October 8, according to RBI data. During the reporting week ended October 8, the rise in forex reserves was on account of an increase in Foreign Currency Assets (FCAs). Expressed in dollar terms, FCA includes the effect of appreciation or depreciation of non-US units like the euro, pound, and yen held in the forex reserves.

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Jubilant Foodworks Reports 395% YoY Jump in Net Profit in Q4 – Top Indian Market News

Jubilant Foodworks Q4 Results: Net profit jumps 395% YoY to Rs 104.3 crore

Jubilant Foodworks Ltd reported a 395.5% YoY jump in net profit to Rs 104.3 crore for the quarter ended March (Q4). Its revenue from operations rose 14.3% YoY to Rs 1025.9 crore during the same period. Earnings before Interest, Tax, Depreciation & Amortization (EBITDA) rose 47% YoY to Rs 249.2 crore. Same-sales growth for Domino’s Pizza stood at 11.8% in Q4, compared to -3.4% in the corresponding quarter last year. The company opened a record 50 new Domino’s outlets and one store each of Hong’s Kitchen, Ekdum!, and Dunkin Donuts during Q4. The board of Jubilant Foodworks has recommended a final dividend of Rs 6 per share.

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Ashok Leyland’s subsidiary acquires EV maker Switch Mobility Automotive

Switch Mobility, a UK-based subsidiary of Ashok Leyland Ltd, has fully acquired electric vehicles (EV) manufacturer Switch Mobility Automotive Ltd, India. The investment in the equity shares of Switch Mobility Automotive Ltd is at arm’s length. [An arm’s length transaction refers to a business deal in which the buyer and seller act independently without one party influencing the other] Thus, Switch Mobility Automotive Ltd, India, has become a step-down subsidiary of Ashok Leyland.

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Easy Trip Planners Q4 Results: Net profit at Rs 30.4 crore

Easy Trip Planners Ltd reported a consolidated net profit of Rs 30.46 crore for the quarter ended March (Q4 FY21). It had posted a net profit of Rs 3.38 crore in the corresponding quarter last year (Q4 FY20). Revenue from operations rose 82.06% YoY to Rs 57.44 crore in Q4 FY21. The online travel company’s expenses declined by 22.5% YoY to Rs 27.17 crore during the quarter. Net profit for the financial year ended March 31, 2021 (FY21) rose 84.99% YoY to Rs 61.01 crore.

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LTI enters into strategic agreement with Amazon Web Services

Larsen & Toubro Infotech (LTI) has entered into a strategic collaboration agreement with Amazon Web Services (AWS). LTI had recently launched a dedicated cloud unit for AWS, which will focus on migration and modernisation, data analytics, and Internet of Things (IoT). LTI will also build modern accelerators and create industry-focused offerings for the Banking & Financial Services (BFSI), manufacturing, media & entertainment, and insurance sectors. 

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LIC Housing Finance Q4 Results: Net profit declines 5% YoY to Rs 399 crore

LIC Housing Finance Ltd reported a 5.33% YoY decline in net profit to Rs 398.9 crore for the quarter ended March (Q4). Net interest income (NII) rose 33% YoY to Rs 1,505 crore during the same period. Its provisions towards impairment on financial instruments jumped to Rs 977.19 crore in Q4 FY21, compared to Rs 27.25 crore in Q4 FY20. The company’s loan portfolio increased by 10% YoY to Rs 2.16 lakh crore in March 2021. LIC Housing Finance’s board has recommended a dividend of Rs 8.50 per share.

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SJVN partners with NDMC for sale of 150-MW solar power

SJVN Limited announced that New Delhi Municipal Corporation (NDMC) has given its in-principle approval to procure 150 megawatts (MW) of solar power from the projects that SJVN plans to bid and develop under the Central Public Sector Undertaking (CPSU) scheme. NDMC will procure solar power at a rate of Rs 2.44 per kilowatt-hour (kWh) for 25 years if SJVN develops the capacity under the CPSU scheme.

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Wipro extends partnership with Levi Strauss & Co.

Wipro Limited has extended its partnership with Levi Strauss & Co., one of the world’s largest brand-name apparel companies and a global leader in jeanswear. As part of a multi-year engagement, Wipro will help optimize Levi Strauss’s customer and user experience across all channels. The IT company will provide Global IT support services across Levi Strauss & Co.’s consumer digital technology space, including eCommerce, B2B Commerce, Consumer Data Hub, Omni Order Management, etc. 

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Glenmark Pharma launches COPD treatment inhaler in UK

Glenmark Pharmaceuticals Ltd announced the launch of Tiotropium Bromide Dry Powder Inhaler (DPI) in the United Kingdom. It is used in the treatment of chronic obstructive pulmonary disease (COPD). COPD a long-term condition that causes inflammation in the lungs and narrowing of the airways, making breathing difficult. According to IQVIA data,  Tiotropium DPI had sales of $450 million (~Rs 3,300 crore) in the European Union (EU) for the 12 months ended September 2020.

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PFC Q4 Results: Net profit jumps multifold to Rs 3,906 crore

Power Finance Corporation (PFC) Ltd reported a multifold jump in consolidated net profit to Rs 3,906.5 crore for the quarter ended March (Q4 FY21). It had posted a net profit of Rs 693.71 crore in the corresponding quarter last year (Q4 FY20). Total income rose 11.69% YoY to Rs 18,155.14 crore in Q4 FY21. Net profit for the financial year ended March 31, 2021 (FY21) rose 65.8% YoY to Rs 15,716.20 crore. PFC’s board has recommended a final dividend of Rs 2 per share.

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Coal India to reduce manpower by 5% every year over next 5-10 years to cut costs

Coal India Limited (CIL) has announced plans to reduce its manpower by 5% every year over the next 5-10 years to cut costs. The state-owned company currently has 2,72,445 employees. CIL will also close down unviable mines, improve environmental, social, and corporate governance (ESG) compliance disclosures, and work towards achieving a ‘net-zero emission’ status. The PSU aims to achieve a production target of 1 billion tonnes by the financial year 2023-24 (FY24). It has a production target of 670 million tonnes for FY22. 

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Siemens to supply digitalised switchgear to 3 steel makers

Siemens Ltd said it will supply advanced power transmission equipment with integrated digital technologies to Icon Steel, Geetai Steels and Gajkesari Steels & Alloys. The installation includes 11 bays of state-of-the-art 132 kilovolts (kV) gas-insulated switchgear (GIS), which will enable increased efficiency, reduced operational costs and ensure safe operations even under extreme environmental conditions.

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IPO Updates: 

Shyam Metalics 

The Rs 909-crore initial public offering (IPO) of Shyam Metalics and Energy Ltd was subscribed 3.65 times on the second day of bidding. The portion reserved for retail investors was subscribed 5.8 times. The portion set aside for non-institutional investors (NIIs) saw a subscription of 2.6 times and that of qualified institutional buyers (QIBs) 81%. 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 27% on the second day of bidding. The portion reserved for retail investors was subscribed 1.02 times. The portion set aside for non-institutional investors (NIIs) saw a subscription of 4% and that of qualified institutional buyers (QIBs) 14%. You can learn more about the IPO here.

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Report of NSDL Freezing 3 FPI Accounts ‘Erroneous’, says Adani Group – Top Indian Market News

Report of NSDL freezing accounts of FPIs are erroneous: Adani Group

In a filing to the stock exchanges, the Adani Group clarified that reports of the National Securities Depository Ltd (NSDL) freezing the accounts of three foreign portfolio investors (FPIs) are “blatantly erroneous”. They stated that the report was meant to deliberately mislead the investing community. Earlier today, the Economic Times had reported that NSDL froze the accounts of Mauritius-based Albula Investment Fund, Cresta Fund, and APMS Investment Fund due to ‘insufficient disclosure of information regarding beneficial ownership’. These foreign funds reportedly hold shares worth Rs 43,500 crore in four listed companies of the Adani Group.

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Coal India Q4 Results: Net profit falls 1% YoY to Rs 4,587 crore

Coal India Limited (CIL) reported a 1.1% YoY decline in consolidated net profit to Rs 4,586.78 crore for the quarter ended March (Q4). Net profit has increased by 48.66% when compared to the previous quarter. Its revenue from operations fell 4.2% YoY to Rs 24,510.80 crore during the same period. CIL’s total production fell 4.8% YoY to Rs 203.42 million tonnes (MT) in Q4. Net profit for the financial year 2020-21 (FY21) declined by 24% YoY to Rs 12,699.89 crore. CIL’s board has recommended a final dividend of Rs 3.5 per share.

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WPI inflation hits record high of 12.94% in May

Inflation, as measured by the Wholesale Price Index (WPI), hit an all-time high of 12.94% in May 2021, compared to the corresponding month last year. This is mainly due to rising crude oil prices and higher costs of manufactured products. WPI stood at 10.97% in April. The inflation of primary articles stood at 9.61% year-on-year (YoY) in May, against 10.16% in April. Prices of food articles stood at 4.31% YoY in May, compared with 4.92% in April. Fuel and power inflation rose to 37.6% YoY during May, against an increase of 20.94% in April.

Meanwhile, inflation based on Consumer Price Index (CPI) rose to 6.3% in May, compared to 4.32% in April.

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Amara Raja Batteries to diversify into emerging energy opportunities

Amara Raja Batteries Ltd (ARBL) has announced plans to invest an estimated $1 billion (~Rs 7,320 crore) over the next 5-10 years to expand into new sectors and enter new geographies. The company has decided to invest in green technologies, including lithium-ion batteries, to capitalise on fast-evolving trends in the energy and mobility sectors. The government’s Rs 18,000 crore PLI scheme for advanced chemistry cells provides ARBL a push towards building a domestic supply chain for lithium to serve the fast-growing electric vehicle (EV) and energy sectors.

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Indian Overseas Bank Q4 Results: Net profit jumps 2-fold to Rs 350 crore

Indian Overseas Bank (IOB) reported an over two-fold YoY jump in consolidated net profit to Rs 349.77 crore for the quarter ended March (Q4). Net profit has increased by 64.31% when compared to the previous quarter. Its total income rose 10.75% YoY to Rs 6,073.80 crore during the same period. The gross non-performing assets ratio fell to 11.69% in Q4 FY21, compared to 14.78% in the year-ago period (Q4 FY20). Net profit for the financial year 2020-21 (FY21) jumped 109.75% YoY to Rs 831.47 crore. IOB’s board has approved a proposal to raise up to Rs 1,000 crore by issuing bonds.

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Natco Pharma’s partner gets USFDA approval for anti-cancer drug

Breckenridge Pharmaceutical Inc., a marketing partner of Natco Pharma, has received approval from the US Food and Drug Administration (USFDA) for Carfilzomib vials. The drug is used to treat multiple myeloma (cancer that forms in a type of white blood cell known as plasma cell). According to industry sales data, the generic version of the drug had annual US sales of $696 million (~Rs 5,096 crore) for the twelve months ended December 2020.

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Tata Motors to raise up to Rs 500 crore via NCDs

The Board of Directors of Tata Motors has approved a proposal to raise up to Rs 500 crore through the issue of securities on a private placement basis. The company will issue 5,000 rated, listed, unsecured, redeemable, non-convertible debentures (NCDs) of the face value of Rs 10 lakh each. The automaker did not share details on how it plans to use the capital.  

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Greenply Q4 Results: Net profit at Rs 28.63 crore

Greenply Industries Ltd reported a consolidated net profit of Rs 28.63 crore for the quarter ended March (Q4 FY21). It had reported a net loss of Rs 21.49 crore in the corresponding quarter last year (Q4 FY21). Its revenue from operations rose 15% YoY to Rs 396.70 crore in Q4 FY21. Net profit for the financial year ended March 31, 2021 (FY21) increased by 28.91% YoY to Rs 60.91 crore. The company’s board has recommended a final dividend of Rs 0.4 per share.

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Kajaria Ceramics Q4 Results: Net profit jumps 169% YoY to Rs 131 crore

Kajaria Ceramics reported a 168.7% YoY jump in consolidated net profit to Rs 131.17 crore for the quarter ended March (Q4). Its revenue from operations rose 46.08% YoY to Rs 952.51 crore during the same period. Net profit for the financial year ended March 31, 2021 (FY21) increased by 21.83% YoY to Rs 308.90 crore. The company’s board approved the expansion of a manufacturing facility at Gailpur (Rajasthan) for ceramic floor tiles. Kajaria Ceramics is the largest manufacturer of ceramic/vitrified tiles in India and the eighth largest in the world.

Read more here.

IPO Updates:

Shyam Metalics

The Rs 909-crore initial public offering (IPO) of Shyam Metalics and Energy Ltd was subscribed 1.23 times on the first day of bidding. The portion reserved for retail investors was subscribed 2.19 times. The portion set aside for non-institutional investors (NIIs) saw a subscription of 70% and that of employees 27%. You can learn more about the IPO here.

Sona BLW Precision Forgings

The Rs 5,550-crore initial public offering (IPO) of Sona BLW Precision Forgings Ltd was subscribed 11% on the first day of bidding. The portion reserved for retail investors was subscribed 51%. The portion set aside for non-institutional investors (NIIs) saw a subscription of 1% and that of qualified institutional buyers (QIBs) 2%.

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Editorial

The Coal India Puzzle: Should You Invest For Dividend Yields?

Soon after independence, the Indian government nationalized most coal mines, which led to the birth of Coal India. Our country is the world’s second-largest producer of coal and this company was banked upon to have a big future. Coal India Limited is a government-owned entity that came into existence almost 50 years back in 1975. It is one of those esteemed Maharatna companies under the direction of the Government of India. As of 1st April 2020, Coal India Limited has 352 mines: 158 are underground, 174 opencast and 20 mixed mines. It produces around 83% of India’s overall coal production in India.

They make several coal products like coking coal, semi-coking coal, non-coking coal, middling, tar and others. It has been a single entity to operate in the Coal industry but since the last few months, there are rumours about some private companies being allowed to enter the market. If this happens, the coal business will have to be shared and their market share will eventually fall.

In recent years, Coal India is unable to meet its target of production which has increased the fears of privatization. On 16th May 2020, Indian finance minister Nirmala Sitharaman announced that India will further open up commercial coal mining, with revenue share arrangement, to boost the fuel’s production in the country. Two years before that the government had allowed commercial mining by private entities. Possibly more competition into the industry in the near future?

A look at the financials

Coal India’s total revenue generated has been on a constant rise since the fall it faced in FY2017. In the last five years, the company has seen their top-line increase at a rate of 4.84%. Their EBITDA (Earnings before interest, tax, depreciation and amortization) almost doubled from FY17 to FY19. 

In FY17, their EBITDA was Rs 17,763.51 crore which surged to Rs 30,840.91 in two years. Last year (FY20), they failed to surpass their top-line and EBITDA metrics marginally. This slight fall of 3% in total revenues can be attributed to the Covid-19 pandemic which started placing it foot by the 4th quarter of last year. Their net profits also decreased marginally by 4% to reach Rs 16,714.19 crore. 

This year has been challenging for this government-back entity. From March 2020 quarter to June 2020 quarter, there was a significant fall in demand. During this one quarter, their revenues fell by almost one-third. However, this fall was seen in every other company’s financials due to the nationwide lockdown. The point to put focus on is that from there on, there is an upturn in almost every meaningful financial metric. The chart below shows how the company has improved in each of its last three quarters of this year. 

A major point to notice is the Q4 of the last three years has been the most profitable for the company. If that’s just a coincidence or is for a special reason, that’s doubtful but if they continue to live up to that trend, Coal India will manage to do quite well on an annual basis even in these challenging times.

After facing a 55% dip in the net profits in Q1FY21 as compared to Q4FY20, they sharply rebounded in Q2FY21 with an increase of 42% in profits. This rollercoaster ride and quick upturn tell that they did well to weather the storm of lockdown and pandemic. With the results of the final quarter yet to be out, Coal India investors had every reason to be optimistic.

No capital gains?

Financials do seem to offer hope of a robust recovery however the charts say a different story. The drastic fall of March last year was the lowest point for many stocks. However, Coal India fell to its 52-week low of Rs 109 in October 2020. Since then, it is trying to move up but the chart below suggests that the journey has not been easy. It still seems to be on a sideways trajectory since last year.

Needless to say, it is way below its all-time high of around Rs 400-450. Hopefully, no one in our community is trapped from that price region. The FIIs have not been generous with the stock either. In December 2019, they held more than 8.5% stake in Coal India. This stake has been on a downward trend since then. In fact, it fell to 6.5% in December 2020. In a year when we have seen FIIs pumping money in huge amounts and stocks giving mega-returns, Coal India is following its own slow and steady path of recovery.

For long-term investment, the stock might look good considering the high dividend it issues. The company announced a second interim dividend of Rs 5 per share for the FY 2020-21 in March. Earlier in the same fiscal year, they have issued Rs 7.5 per share as dividend. In fact, they have maintained a high dividend payout of 78.66%. Based on the current share price, they offer a robust dividend yield of around 8.5%.

However, dividends do not attract me personally. There is no doubt that being a government-owned company and one of its kind in India, Coal India has a lot to offer. However, NSE offers you thousands of stocks. Do you think that Coal India should be your preferred choice of destination to bag returns in the short term?

Are you holding Coal India and still in losses? What are your opinions on the company and its future? You can have a completely different view on Coal India. So, do not hesitate and let us know in the comments section in the marketfeed application. Let’s learn and grow together!