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Infosys Reports 2.32% QoQ Decline in Net Profit in Q4 – Top Indian Market News

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Infosys Q4 Results: Net profit falls 2.32% QoQ to Rs 5,078 crore

Infosys Limited reported a 2.32% quarter-on-quarter (QoQ) decline in net profit to Rs 5,078 crore for the quarter ended March (Q4). The IT company’s revenue rose 1.5% QoQ to Rs 26,311 crore during the same period. Infosys crossed a revenue milestone of Rs 1 lakh crore in FY21. Total deal wins during the financial year stood at a record $14.1 billion (~Rs 1.05 lakh crore). Infosys’ board has approved a dividend of Rs 15 per share.

The Board of Directors of Infosys Ltd has approved a proposal to buyback equity shares worth Rs 9,200 crore. The company will buy back 5.25 crore equity shares at Rs 1,750 per share through the open market. The maximum buyback price represents a 25.2% premium to Tuesday’s closing price.

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Maruti Suzuki sells record 1.57 lakh CNG vehicles in FY21

Maruti Suzuki India Ltd said it has achieved its highest-ever CNG vehicle sales for a financial year at 1,57,954 units in FY 2020-21. This is a 48.40% rise in CNG vehicle sales as compared to the previous financial year. The automaker had sold 1,06,444 CNG units in FY 2019-20. Maruti Suzuki sells a range of factory-fitted CNG cars, including Alto, Celerio, Wagon-R, S-PRESSO, Eeco, Ertiga, Tour S, and Super Carry.

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Happiest Minds partners with BeatRoute to offer revenue realisation solutions for CPG industry

Happiest Minds Technologies has entered into a strategic partnership with BeatRoute to solve typical revenue realization problems faced by the consumer packaged goods (CPG) industry. BeatRoute’s cloud SaaS CRM-SFA platform enables CPG enterprises to achieve high impact digital transformation across their retail and business-to-business (B2B) field sales operations. This partnership empowers CPG enterprises with a goal-oriented digital transformation journey, by leveraging new-age technologies such as machine learning (ML) and store analytics.

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Sterlite Tech partners with UK-based Openreach to build ‘Full Fibre’ network

Sterlite Technologies Ltd has announced a strategic collaboration with Openreach, the largest digital network business in the United Kingdom. Openreach has chosen Sterlite Tech as a key partner to provide optical cable solutions for its new, ultra-fast, ultra-reliable ‘Full Fibre’ broadband network. Under the partnership, Sterlite Tech will be responsible for delivering millions of kilometres of optical fibre cable to support the ‘Full Fibre’ build programme over the next three years.

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Bharti Airtel unveils new corporate structure

Bharti Airtel has introduced a new corporate structure to sharpen the company’s focus on driving the rapidly unfolding digital opportunity in India while enabling it to unlock value. The new structure involves Airtel Digital Limited folding into the listed entity— Bharti Airtel Limited. Bharti Airtel will now house all of the digital assets, including Wynk Music, Airtel Xstream, Airtel Thanks, Airtel Ads, Airtel IQ, Airtel Cloud, and all future digital products and services. Airtel Limited, a wholly-owned subsidiary of Bharti Airtel, will house all the telecom businesses.

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Amazon moves SC against Delhi High Court stay order restraining Future Retail deal with Reliance

Future Retail, on Wednesday, said Amazon.com, Inc. has approached the Supreme Court against a Delhi High Court order which stayed a single judge’s order restraining Future Retail Ltd (FRL) from going ahead with its Rs 24,713 crore deal with Reliance Retail to sell its business. FRL said it will “defend the matter/proceedings through its legal counsels”. Future Group and Amazon have been locked in a battle after the US-based e-commerce giant took FRL into emergency arbitration over an alleged breach of contract between them.

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JSW Steel completes acquisition of 31% stake in GSI Lucchini

JSW Steel Italy Srl, a subsidiary of JSW Steel Limited, has completed the acquisition of a 30.73% stake of Italy-based GSI Lucchini for €1 million (~Rs 8.98 crore). The balance share capital (69.63%) of GSI is already held by JSW Steel Italy Srl. GSI Lucchini is a leading producer of forged steel balls used in grinding mills. The manufacturing unit of GSI is located at the port city of Piombino in the Tuscany region, providing easy access to export markets.

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Aditya Birla Capital approves Aditya Birla Sun Life AMC IPO

The Board of Directors of Aditya Birla Capital Ltd (ABCL) has approved an initial public offering (IPO) of its subsidiary, Aditya Birla Sun Life AMC. The asset management company (AMC) is a joint venture between the Aditya Birla Group and Sun Life Financial. ABCL holds 51% in the JV, while the remaining 49% is held by Sun Life. Through the IPO, ABCL will sell upto 28.51 lakh equity shares held by it in Aditya Birla Sun Life AMC, while Sun Life will sell upto 3.6 crore shares.

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CIL’s coal allocation under spot e-auction rises 36% in April-Feb 2020-21

Coal India Limited (CIL) allocated 37.21 million tonnes (MT) of coal during the April-February period of the financial year 2020-21 under the spot e-auction scheme. This is a 36.3% increase as compared to the same period in FY20. Fuel allocation by CIL under the scheme also increased to 4.41 MT in February, from over 3.31 MT in the corresponding month of 2019-20.

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Prestige Estates Sells Assets Worth Rs 7,467 crore to Blackstone Group – Top Indian Market News

Prestige Estates sells assets worth Rs 7,467 crore to Blackstone Group

Prestige Estate Properties Ltd has sold assets worth Rs 7,467 crore to investment firm Blackstone Group as part of the first phase of a Rs 9,160 crore deal. Phase-1 of the transaction included the sale of 12 assets comprising of completed retail, office, and hotel properties. With the completion of this transaction, Prestige Estate’s net debt has reduced to Rs 997.5 crore (compared with Rs 8,464.5 crore as of December 31, 2020). Phase-2 of the transaction is expected to be completed by the end of the next quarter.

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Have adequate spectrum to be competitive in market: Vodafone Idea

P Balaji, Chief Regulatory and Corporate Affairs Officer of Vodafone Idea Ltd (VIL), said the company has an adequate spectrum to meet customers’ requirements and to be competitive in the market. He said that VIL had bid for just as much radiowaves as it needed to boost its services and coverage. This commentary comes after several reports stated that VIL may not have acquired large amounts of spectrum in the recent auctions due to financial constraints. Vodafone Idea’s spectrum holding after the recent auction stands at 1,768.60 MHz.

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Kalyan Jewellers IPO to open on March 16; price band fixed at Rs 86-87

Kalyan Jewellers, on Thursday, announced that it will open its initial public offering (IPO) on March 16. The price band of the IPO has been fixed at Rs 86 to Rs 87 per share. The offer size is Rs 1,175 crore, which comprises a fresh issue aggregating to Rs 800 crore and an offer for sale (OFS) of Rs 375 crore. The company will utilise the funds for meeting working capital requirements and for general corporate purposes. The issue will close on March 18.

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JSW Steel’s crude steel production declines 1% YoY in February

JSW Steel Limited reported that its crude steel production declined by 1% year-on-year (YoY) to 13.06 lakh tonnes in February 2021. The average capacity utilisation was 93% last month. The production of flat-rolled products declined 6% YoY to 9.27 lakh tonnes. The production of long-rolled products increased by 10% YoY to 3.4 lakh tonnes during the same period.

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Infosys BPM extends strategic partnership with Newmont Corp

Infosys BPM announced a five-year extension of its strategic collaboration with the world’s largest gold mining company- Newmont Corporation. The company will standardise and digitise delivery models across Newmont’s mining sites. Infosys BPM will leverage its automation, artificial intelligence (AI), and design thinking capabilities to deliver increased value for Newmont. Infosys BPM is the business process management arm of Infosys Limited.

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SpiceJet to offer RT-PCR test for Rs 500 in Mumbai, Delhi

SpiceJet Limited has launched the country’s cheapest Covid RT-PCR testing facility for the general public at Rs 499 through its subsidiary, SpiceHealth. It will also offer the testing facilities at a special price of Rs 299 (which is one-third of the prevailing market rate) to its passengers. In the first phase, SpiceHealth will make its testing facility available in Mumbai and Delhi.

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NMDC declares interim dividend of Rs 7.76 per share

NMDC Limited’s board has approved an interim dividend of Rs 7.76 per share for the financial year 2020-21. The company has fixed March 23, 2021, as the record date for payment of the interim dividend. State-owned NMDC is India’s largest iron ore miner and produces about 35 metric tonnes (MT) of iron ore from its three iron ore complexes in the country.

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Ramco Systems goes live at Nigeria-based Caverton Helicopters

Ramco Systems Limited announced that it has gone live at Caverton Helicopters with its Aviation M&E MRO Suite V5.8, thereby integrating and digitally transforming its business processes. The installed Aviation Suite helps Caverton Helicopters to track transactions, generate flight contract billing, and execute work packages. Caverton Helicopters is a Nigerian aerospace company that serves the West African offshore oil and gas industry.

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Ares SSG Capital completes acquisition of Altico Capital

Hong Kong-based Ares SSG Funds has completed the acquisition of debt-ridden Altico Capital. This buyout marks the first resolution of a defaulting non-banking finance company (NBFC) outside India’s Insolvency and Bankruptcy Code (IBC). State Bank of India (SBI), Bank of Baroda, Yes Bank, ACRE ARC, and Aditya Birla Finance were the main lenders to Altico Capital that have credit exposure. 

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Firms of Rakesh Jhunjunwala, Samir Arora file for mutual fund licenses

Helios Capital Management and Alchemy Capital Management are among four investment firms that have applied for mutual fund licenses with market regulator SEBI within the past 4 months. Singapore-based Helios Capital is founded by Samir Arora, while Alchemy Capital is co-founded by ace investor Rakesh Jhunjunwala. Bajaj Finserv, Capitalmind (Wisemarkets Analytics), Frontline Capital Services, Unifi Capital, and Zerodha Broking are other firms that have applied for mutual fund licenses.

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USTPO grants patent to Newgen Software for invention of advanced binarization process

The United States Patent and Trademark Office (USTPO) has granted a patent to Newgen Software Technologies Ltd for an invention entitled “Image Processing System and Method”. The patent is for a period of 20 years, which starts from March 2018. The invention is an image processing system that binarizes images, which refers to converting colored and grey images to black and white images. The process of binarization is used to reduce image size and to facilitate document analysis.

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India’s Services PMI Rises to 55.3 in February – Top Indian Market News

India’s services PMI rises to 55.3 in February

India’s services activity expanded at the fastest rate in a year in February. This was driven by an extended robust recovery in domestic demand. However, employment had fallen further and overall input costs increased last month. The IHS Markit Purchasing Managers’ Index (PMI) for services stood at 55.3 in February, compared to 52.8 in January. PMI is a month-on-month calculation and a value of more than 50 represents an expansion when compared to the previous month. 

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Tata Power to develop 15 MW solar project for Tata Steel in Jamshedpur

TP Saurya, a wholly-owned subsidiary of Tata Power Ltd, has signed a Power Purchase Agreement (PPA) with Tata Steel Ltd (TSL) to develop a 15 megawatt (MW) solar power project in Jamshedpur, Jharkhand. The energy will be supplied to TSL under the PPA, which is valid for a period of 25 years from the scheduled commercial operation date. The project will be commissioned within 6 months.

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SpiceJet partners with WheelTug for reserving electric taxi system production slots

SpiceJet Limited has partnered with WheelTug Plc for reserving 400 production slots for the electric taxi system. This system allows SpiceJet to move an aircraft forward or backward without powering its engines or using external tugs. It will help the airline in saving fuel, cut costs, and also reduce carbon emissions.

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MTAR Tech IPO subscribed 3.68 times on first day of bidding

The Rs 596.41-crore initial public offering (IPO) of MTAR Technologies was subscribed 3.68 times on the first day of bidding. The issue received bids for 2.67 crore equity shares against an offer size of 72.60 lakh shares. The portion reserved for retail investors was subscribed 6.93 times. The portion set aside for non-institutional investors (NIIs) witnessed a subscription of 1.02 times. 

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To know more about the IPO, click here.

Infosys secures $500 million deal from Google: Report

As per a report from Economic Times, Infosys Limited has won a nearly $500 million (~Rs 3,640 crore) deal from Alphabet Inc.’s Google to provide customer experience and engineering support for its products. The report states that this is “one of the largest all-digital deals” in customer experience services.

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Mahindra Logistics, Bajaj Electricals signs logistics agreement worth Rs 1,000 crore

Mahindra Logistics Ltd (MLL) has signed an agreement with Bajaj Electricals Ltd (BEL) to handle its end-to-end logistics network and solutions. The total contract value will be over Rs 1,000 crore over the next 5 years. MLL has developed a fully redesigned and consolidated logistics network for BEL. The network includes storage optimization, transportation management, and inventory movement services.

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Power Mech Projects secures multiple orders worth Rs 734 crore

Power Mech Projects Ltd announced that it has received Letters of Award (LoAs) for orders worth Rs 734 crore. The construction firm has won an order worth Rs 401 crore for the operation and maintenance of boilers & auxiliaries and other miscellaneous works of the 4×660 megawatt (MW) Thermal Power Plant of Vedanta Ltd in Jharsuguda, Odisha. The company has also won an order of Rs 198 crore for engineering, procurement, and construction (EPC) works for Kurmitar Iron Ore Mining Pvt Ltd in Odisha.

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Kalpataru Power Transmission secures orders worth Rs 1,554 crore

Kalpataru Power Transmission Ltd has secured orders worth Rs 1,554 crore. The orders include those from India, the Commonwealth of Independent States (countries such as Azerbaijan, Armenia, Georgia, etc), and Latin America in the power transmission business. The company’s international subsidiary has also received new power transmission projects in Europe.

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Bank of Baroda raises Rs 4,500 crore through QIP

Bank of Baroda has raised Rs 4,500 crore through a qualified institutional placement (QIP). The capital raising committee of the bank’s board has approved the issue and allotment of 55.07 crore equity shares to eligible qualified institutional buyers (QIBs) at Rs 81.70 per share. The issue had opened on February 25 and closed on March 2. 

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RPP Infra secures orders worth Rs 1,000 crore

RPP Infra Projects said it has won four work orders worth Rs 1,000 crore. The company has received an order from the Tamil Nadu Water Supply and Drainage Board for Rs 131.14 crore. It has also bagged an order worth Rs 558.66 crore from the Highways Department as part of the Chennai-Kanyakumari Industrial Corridor project. The third order is from the Chennai Municipal Corporation’s Storm Water Drain department, which is worth Rs 187.14 crore. The fourth order is from the Water Resource Department, Tamil Nadu for the renovation, extension, and modernisation of the Lower Bhavani Project main canal in Erode District worth Rs 123.07 crore.

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Nestle India’s Q4 Net Profit Rises 2% YoY to Rs 483 crore – Top Indian Market News

Nestle India Q4 Results: Net profit rises 2% YoY to Rs 483 crore

Nestle India reported a 2.25% YoY increase in net profit to Rs 483.3 crore for the fourth quarter ended December (Q4). The company follows the January-December financial year cycle. Its revenue grew 9% YoY to Rs 3,432.6 crore during the same period. Nearly two-thirds of the company’s key brands like Maggi Noodles, Kitkat, and Nescafe Classic posted double-digit growth last year. Nestle’s board has declared an interim dividend of Rs 65 per share.

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Adani Ports completes acquisition of Dighi Port for Rs 650 crore

Adani Ports and Special Economic Zone Ltd (APSEZ) has completed the acquisition of debt-ridden Dighi Port for Rs 650 crore under the bankruptcy law. The resolution plan submitted by APSEZ also includes the settlement of unpaid dues of Rs 11.39 crore to the Maharashtra Maritime Board. With this acquisition, APSEZ has expanded its presence to 8 out of the 9 Indian coastal states.

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Varun Beverages Q4 Results: Net loss at Rs 7.2 crore

Varun Beverages Ltd reported a net loss of Rs 7.2 crore for the fourth quarter ended December (Q4). It had posted a net loss of Rs 54 crore in the corresponding period last year (Q4 CY20). The company follows the January-December financial year cycle. Revenue increased 9% YoY to Rs 1,351.3 crore in Q4. Varun Beverages is a key player in the beverage industry and one of the largest franchisees of PepsiCo in the world (outside USA).

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Axis Bank-United India Insurance case settled for Rs 41.43 lakh: SEBI

The Securities and Exchange Board of India (SEBI) announced that the Axis Bank-United India Insurance case has been settled for Rs 41,43,750. The case pertained to alleged lapses in disclosures with respect to change in promoter’s shareholding in Axis Bank. The entities were alleged to have violated Prohibition of Insider Trading (PIT) norms.

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Biocon Biologics to partner with International Diabetes Federation

Biocon Biologics, a subsidiary of Biocon Ltd, has partnered with the International Diabetes Federation (IDF) to promote and support IDF’s core mission initiative and activities. It will be the first biosimilar insulin company to partner with IDF. This partnership takes forward Biocon Biologics’ mission of enabling affordable access to insulins to people with diabetes worldwide.

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BankservAfrica selects TCS BaNCS for payment solutions

Tata Consultancy Services (TCS) announced that South African Bankers Services Company Proprietary (BankservAfrica) has selected TCS BaNCS to drive the Rapid Payments Program (RPP) in South Africa. RPP is a national initiative to introduce a next-generation, easy-to-use, real-time retail payments system for the growing payments ecosystem in South Africa. The TCS BaNCS solution will provide BankservAfrica with an ultra-high performance, low latency, and scalable solution to meet the needs of RPP.

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Jubilant Foodworks forms subsidiary in Netherlands

Jubilant Foodworks Ltd has formed a wholly-owned subsidiary in the Netherlands to explore business opportunities in the food service industry in the European country. The subsidiary, known as Jubilant Foodworks B.V., was incorporated on February 15, 2021. Jubilant Foodworks operates fast-food chains such as Domino’s Pizza, Dunkin’ Donuts in India.

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Nureca IPO subscribed 15 times on second day of bidding

The Rs 100-crore initial public offering (IPO) of Nureca Limited was subscribed 14.77 times on the second day of bidding. The issue has received bids for 2.07 crore equity shares, as against an offer size of 14.01 lakh shares. The portion reserved for retail investors was subscribed 80.33 times, while that of employees was subscribed 2.49 times. The portion set aside for non-institutional investors witnessed a subscription of 1.49 times.

To know more about the IPO, click here.

Infosys unit acquires New Business and Underwriting platform from STEP Solutions

Infosys McCamish Systems, a US-based subsidiary of Infosys BPM, has announced the strategic purchase of a state-of-the-art New Business and Underwriting platform from STEP Solutions Group LLC. The platform will help ease the complexity of all types of insurance products such as Life, Annuity, and Health for individuals and groups across North America. Infosys BPM is the Business Process Management arm of Infosys Limited.

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RailTel IPO subscribed 2.63 times on first day of bidding

The Rs 820-crore initial public offering (IPO) of RailTel Corporation of India was subscribed 2.63 times on the first day of bidding. The issue received bids for 16.13 crore equity shares, as against an offer size of 6.11 crore shares. The portion reserved for retail investors was subscribed 4.99 times, while that of employees was 81% subscribed. The portion set aside for non-institutional investors witnessed a subscription of 75%.

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Glenmark Pharma launches kidney cancer treatment drug in India

Glenmark Pharma has launched a generic kidney cancer treatment drug ‘Sunitinib Oral Capsules’ in India. The drug is priced approximately 96% lower compared to the innovator brand. Sunitinib is also approved by the US Food and Drug Administration (USFDA).

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Godrej Consumer’s Q3 Profit Rises 12% YoY to Rs 502 crore – Top Indian Market News

Godrej Consumer Q3 Results: Net profit rises 12% YoY to Rs 502 crore

Godrej Consumer Products reported a 12.77% YoY increase in consolidated net profit to Rs 502.08 crore for the quarter ended December (Q3). Its revenue from operations rose 9.98% YoY to Rs 2,778.05 crore during the same period. The company’s Household Insecticides, Hygiene, and Value-for-Money segments (which contributes to 81% of its global portfolio) grew by 14% YoY in Q3. 

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NTPC’s hydropower project damaged in Uttarakhand glacier burst

NTPC Limited announced that a part of its Tapovan Vishnugad hydropower project (which is under construction) has faced damages due to the avalanche in Uttarakhand’s Chamoli district. The incident occurred after a glacier burst in Chamoli led to massive flash floods and landslides. Around 19 people have died from the unfortunate incident. It has been reported that ~150 employees at the NTPC plant are still missing.

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Aditya Birla Fashion Q3 Results: Net profit at Rs 59 crore

Aditya Birla Fashion and Retail Ltd (ABFRL) reported a consolidated net profit of Rs 58.55 crore for the quarter ended December (Q3). It had posted a net loss of Rs 37.64 crore during the corresponding quarter last year. The company’s total revenue declined 17.87% YoY to Rs 2,133.14 crore in Q3 FY21. ABFRL said it is confident that business recovery will continue as the impact of the Covid-19 pandemic wears down over the next few quarters. The company expects to resume its consistent growth trajectory in the next financial year.

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Infosys partners with Spirit AeroSystems to integrate its IT infrastructure

Infosys Limited said it has entered into a strategic collaboration with US-based aircraft manufacturing company- Spirit Aerosystems, Inc. Spirit has selected Infosys to integrate the IT infrastructure of its recently acquired Bombardier’s former aerostructures and aftermarket service assets. Infosys will leverage its system integration expertise, ecosystem partners, and extensive knowledge of the aviation sector to develop a robust IT framework.

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BPCL Q3 Results: Net profit jumps 120% YoY to Rs 2,778 crore

Bharat Petroleum Corporation Ltd (BPCL) reported a 120% YoY increase in net profit to Rs 2,777.6 crore for the quarter ended December (Q3). Its revenue rose 1.4% YoY to Rs 86,579.95 crore during the same period. The average gross refining margin of the company stood at $2.90 per barrel, compared to $3.15 per barrel in Q3 FY20. BPCL’s board has declared an interim dividend of Rs 16 per share.

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NMDC Q3 Results: Net profit rises 53% YoY to Rs 2,108 crore

NMDC Limited reported a 53.4% YoY increase in consolidated net profit to Rs 2,108.05 crore for the quarter ended December (Q3). Its revenue from operations rose 44.8% YoY to Rs 4,355.10 crore during the same period. The company’s revenue from its iron ore segment increased by 44% YoY to Rs 4,311 crore. State-owned NMDC Ltd is involved in the exploration of iron ore, copper, limestone, gypsum, etc.

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Meghmani Organics Q3 Results: Net profit rises 45% YoY to Rs 69 crore

Meghmani Organics Ltd reported a 45.64% YoY increase in net profit to Rs 69.34 crore for the quarter ended December (Q3). Its total revenue rose 25.94% YoY to Rs 657.66 crore during the same period. The company showed positive revenue growth in its agrochemicals and Chloralkali segments in Q3.

HCL Tech announces Rs 700 crore one-time bonus for employees

HCL Technologies Ltd announced a special one-time bonus worth Rs 700 crore for its employees around the world. This is in recognition of the company hitting the $10 billion (~Rs 72,900 crore) revenue milestone in 2020. Employees across geographies who have completed 1 year of service or more will receive a bonus in February 2021.

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Sun TV Q3 Results: Net profit rises 15% YoY to Rs 445 crore

Sun TV Network Ltd reported a 15.88% YoY increase in consolidated net profit to Rs 445.54 crore for the quarter ended December (Q3). Its revenue rose by 17.26% YoY to Rs 994.14 crore during the same period. Sun TV reported a 3% growth in subscription revenues at Rs 424 crore in Q3. It deployed cost optimization measures and managed to grow profits despite a high IPL franchise fee paid in this current quarter. The company’s board has declared an interim dividend of Rs 5 per share.

Prakash Industries Q3 Results: Net profit rises 4% YoY to Rs 31 crore

Prakash Industries Ltd reported a 4.6% YoY increase in net profit to Rs 31.3 crore for the quarter ended December (Q3). The company’s revenue rose by 20.6% YoY to Rs 891 crore during the same period. Delhi-based Prakash Industries is engaged in mining, steel, and power operations.

ONGC to carry out India’s first geothermal field development project in Ladakh

Oil and Natural Gas Corporation (ONGC) will carry out India’s first Geothermal Field Development Project, which will be implemented in Ladakh. A Memorandum of Understanding (MoU) was signed by the ONGC Energy Centre (OEC) with the Union Territory of Ladakh and the Ladakh Autonomous Hill Development Council on February 6. This project of ONGC will put India on the geothermal power map of the world.

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Balkrishna Industries Q3 Results: Net profit rises 45% YoY to Rs 325 crore

Balkrishna Industries Ltd reported a 45.25% YoY increase in net profit to Rs 325.07 crore for the quarter ended December (Q3). The tyre manufacturer’s total revenue rose 31.81% YoY to Rs 1,563.84 crore during the same period. The company’s board has declared an interim dividend of Rs 5 per share. 

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Infosys Reports 16% YoY Rise In Net Profit – Top Indian Market News

infosys | market updates

Infosys Q3 Results: Net profit jumps 16.6% YoY to Rs 5,197 crore

Infosys Ltd reported a 16.6% year-on-year (YoY) increase in consolidated net profit at Rs 5,197 crore for the quarter ended December (Q3). The IT major had posted a net profit of Rs 4,457 crore in the same period last year. The company’s revenue rose by 12.27% YoY to Rs 25,927 crore. Infosys had secured large digital-transformation deals from companies such as Rolls-Royce, El Paso Water, and Daimler in Q3.

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Govt to sell 5% stake in SAIL through OFS

The Central Government has decided to sell up to 20.65 crore shares or 5% of the total equity of Steel Authority of India Limited (SAIL) through an Offer for Sale (OFS). The floor price of the OFS has been set at Rs 64 per share. The OFS for non-retail investors opens on Thursday (Jan 14). It will start for retail investors on Friday (Jan 15). The government currently holds a 75% stake in SAIL.

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Wipro Q3 Results: Net profit rises 21% YoY to Rs 2,968 crore

Wipro Ltd reported a 20.85% YoY increase in net profit to Rs 2,968 crore for the quarter ended December (Q3). It had reported a net profit of Rs 2,455.9 crore in the same quarter last year (Q3 FY20). The IT firm’s revenue rose by 1.28% YoY to Rs 15,670 crore during the same period. Wipro has declared an interim dividend of Re 1 per equity share. The record date for the same has been set as January 25.

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IRFC to launch Rs 4,633-crore IPO on January 18

State-owned Indian Railway Finance Corporation (IRFC) announced that it will launch its Rs 4,633-crore initial public offering (IPO) on January 18. The price band of the IPO has been set at Rs 25-26 per share. IRFC is offering up to 178 crore equity shares of the face value of Rs 10 each. The IPO comprises a fresh issue of up to 118.8 crore equity shares and an offer for sale of up to 59.4 crore equity shares by the government. IRFC is the first non-banking financial company (NBFC) in the PSU sector that is going public. 

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Reliance loses crown to HDFC Bank in the NIFTY 50

Reliance Industries Limited (RIL) has lost its position to HDFC Bank in terms of weightage in the NIFTY 50. RIL’s weightage slipped to as low as 9.82% on Monday and stood at 10.08% on Tuesday. This led to the stock losing its top rank to HDFC Bank. On Monday, the private sector bank’s weight in NIFTY 50 surpassed RIL’s for the first time since May to 10.11%.

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Amazon signs deal with Bharti Airtel to launch world’s first mobile-only Prime Video plan

Amazon has partnered with Bharti Airtel to introduce Prime Video Mobile Edition at an introductory price of Rs 89. India has become the first country in the world to obtain this mobile-only Prime Video plan. Airtel customers can get 28-days of Prime Video Mobile Edition through pre-paid recharges starting at an introductory offer of Rs 89. The recharges will be available on the Airtel Thanks app or at recharge points across the country.

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Petrol price touches new high of Rs 84.45 in Delhi, crosses Rs 91 mark in Mumbai

Petrol price on Wednesday touched a new high of Rs 84.45 per litre in Delhi, as state-owned fuel retailers hiked prices after a five-day interval. Petrol and diesel prices were hiked by 25 paise per litre each, according to a price notification from oil marketing companies. In Mumbai, petrol comes for Rs 91.07 a litre and diesel for Rs 81.34. This is the highest ever price of petrol in Delhi, while diesel is at a record high in Mumbai.

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India clears purchase of 83 ‘Tejas’ jets for IAF

The Cabinet Committee on Security (CCS) has approved the procurement of 83 Light Combat Aircraft (LCA) Tejas Mk-1A for the Indian Air Force (IAF). The Rs 48,000 crore deal will be the biggest ever in the indigenous military aviation sector. The aircraft will be manufactured by Hindustan Aeronautics Limited (HAL). About 500 Indian companies, including MSMEs in the design and manufacturing sectors, will be working with HAL in this procurement.

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SEBI bans CNBC TV anchor Hemant Ghai, family members from capital market

The Securities and Exchange Board of India (SEBI) has barred CNBC TV anchor Hemant Ghai, his wife, and his mother from accessing the capital markets for indulging in fraudulent trading activity. The market regulator has alleged that the three individuals pocketed nearly Rs 3 crore between January 2019 and May 2020 by dealing in stocks that were being recommended on the TV show Stock 20:20 on CNBC Awaaz. SEBI stated that Hemant Ghai had the advance information about the recommendation to be made on the show (which was co-hosted by him) and that he directly or indirectly used it to his advantage.

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L&T secures multiple orders in domestic, overseas market

Larsen & Toubro has secured orders for the construction of metallurgical plants and power transmission & distribution projects in the domestic as well as international market. The construction major said that the orders fall under the “significant” category, which ranges between Rs 1,000 crore and Rs 2,500 crore. The company also stated that it has bagged an engineering, procurement, construction, and commissioning (EPCC) contract to construct a 500-kilovolt transmission line in Malaysia.

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Granules India receives USFDA approval for diabetes management drug Metformin

Granules India announced that the US Food & Drug Administration (USFDA) has granted final approval for its Abbreviated New Drug Application (ANDA) for Metformin Hydrochloride Extended-Release Tablets. The tablets are indicated for the management of Type-2 diabetes. According to IQVIA health data, Metformin Hydrochloride ER tablets had sales of approximately $192 million (~Rs 1,404 crore) in the US for the twelve months ending in November 2020.

Read more here.

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Editorial

Will IT Stocks Boom Ahead of Q3 Results?

The information technology (IT) industry is one of the fastest-growing sectors of India. As we know, companies such as TCS, Infosys, and Wipro have established themselves as the leading IT firms in the world. These companies have spearheaded the digital revolution and have contributed immensely to India’s rapid economic growth. Despite the Covid-19 pandemic causing disruptions across all economic activities, major IT companies have shown a phenomenal increase in their revenue and overall growth. Even after the recent market crash on December 21, the Nifty IT Index showed a very impressive rebound.

Let us take a closer look at specific factors that have led to a sharp increase in the performance of IT companies over the past year. 

Work from Home Model

The lockdowns imposed all over the world did not affect the productivity of the IT sector employees. In India, the IT industry made employees Work from Home (WFH) as per the government’s mandate. About 90% of employees worked from home, with 65% of them from homes in metros and the rest 35% from homes in small towns. They were able to quickly transition into a WFH model and even obtain a better work-life balance. This was supported by better network connectivity across India. Employees could start and end their day as they choose, as long as their work was complete. More importantly, they were able to focus on their health and well-being. According to many surveys that were conducted over the past few months, it was reported that there was a high increase in productivity and efficiency of the IT sector workforce. 

On the other hand, IT companies were able to introduce very efficient cost-cutting measures. Firms did not have to pay for expenses such as transportation and real estate costs. They have realised that working from home is a very effective and viable option that could be continued even after all lockdown restrictions were lifted. 

Amidst the disruptions caused by the pandemic, companies such as Wipro and Infosys had even introduced salary hikes for their employees.  This shows how committed these firms are towards the wellbeing of their employees.

Massive Deals

Every week, we read about certain deals that have been secured by prominent Indian IT companies. Firms all around the world have realized the need for accelerating their digital transformation process. Even though many listed IT companies reported a decline in revenue during Q1 FY21, the new deals and orders helped them to show a massive rebound. This growth was shaped by major demand for cloud-based services, increasing IT spends by the small and medium-sized business segment, and government initiatives for data localisation. 

The table below shows some of the massive deals/orders that had been signed by IT companies in Q3 FY21. 

CompanyClientDeal Size (in USD Million)Deal Type
TCSDeutsche Bank500-1000Acquisition of IT unit
WiproMetro>700Transformational
InfosysDaimler>1000Cloud
InfosysVanguard1500Transformational
InfosysEl Paso WaterNACloud
InfosysRolls RoyceNATransformational
TCSStar AllianceNADigital
TCSKingfisher plcNAService Partner
Source: ET Now

As we can see, the orders placed by very prominent international business groups or government agencies have helped IT companies to show a rapid increase in performance and revenue. According to NITI Aayog CEO Amitabh Kant, India has witnessed $38 billion (~Rs 2.73 lakh crore) investments in tech companies during the past six months. He further stated that artificial intelligence is going to become one of the biggest opportunities for India, with respect to technology applications. The emerging technology is expected to add $957 billion to the Indian economy by 2035.

Strong Financial Performance in Q2

As mentioned above, IT companies had reported a decline in their revenues in Q1. However, their revival was very strong in the next quarter. Let us take a look at the Q2 results of the three major IT companies in India:

  • Tata Consultancy Services reported a 7.05% year-on-year (YoY) decline in its net profit at Rs 7,475 crore for the second quarter ended September 2020. It reported a net profit of Rs 8,042 in the corresponding quarter last year. However, the results had surpassed all street estimates. On a quarterly basis, the consolidated profit rose 6.66% from Rs 7,008 crore in the June quarter of the current financial year 2020-21. The company has been able to secure a total market share of 32.05%.
  • Infosys Ltd reported a 20.50% year-on-year (YoY) rise in net profit at Rs 4,845 crore for the quarter ended September. The figure stood at Rs 4,019 crore in the corresponding quarter last year. Its consolidated revenue from operations increased to Rs 24,570 crore in Q2FY21, up by 8.6% YoY. The operating profit also rose to Rs 6,228 crore, a growth of 26.8% YoY. Infosys has a market share of 18.57% in the Indian IT sector.
  • Wipro Ltd posted a 3.40% year-on-year (YoY) fall in consolidated net profit at Rs 2,465.70 crore for the quarter ended September 30. It had reported a net profit of Rs 2,552.70 crore in the corresponding quarter last year. Consolidated revenue of the company declined marginally 0.07% YoY to Rs 15,114.50 crore, over Rs 15,125.60 crore posted in Q2FY20. However, it showed an impressive rebound on a quarter-on-quarter (QoQ) basis. Wipro’s market share stands at 12.67%.

Due to the massive deals and cost-cutting measures, it is very likely that these companies will post a significant increase in their revenues in the coming quarters.

Conclusion

As you might have read, the shares of major IT companies such as TCS and Infosys hit a 52-week high on Friday after Accenture Plc announced better-than-expected results for its first quarter. (Accenture follows the September-August Financial Calendar). Interestingly, certain financial analysts have stated that large Indian IT firms tend to follow Accenture’s performance with a certain lag. Despite this, we do know that IT companies all over the world have consistently shown great financial performance over the past few years. The Nifty IT Index continues to show a great bull run. Also, do not forget the common saying in the market, “Buy on rumours, sell on news”.

All major businesses and government entities around the world are improving their digital services to cater to the needs of all citizens. The demand for the services and products of IT companies is only going to increase in the years to come. These companies will post their financial results for the October-December (Q3) period soon. The outlook for Indian-based IT firms remains to be very strong. In anticipation of great results, all major IT stocks tend to show a very impressive rally. Let us look forward to the positive results of India’s fastest-growing sector. 

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Market News Top 10 News

All Industries in Delhi to Switch to PNG by Jan 31 – Top Indian Market News

Air Quality Commission directs switching over of all industries in Delhi to PNG

The Commission for Air Quality Management in NCR and Adjoining Areas has directed all industrial units in Delhi to switch over to piped natural gas (PNG) by January 31. The Commission has also directed the Delhi Pollution Control Committee (DPCC) to inspect and identify industries using polluting fuels and take stringent penal action against those found violating the directive. IGL and GAIL have been directed to complete the pipeline network, metering, and associated infrastructure by January 31.

Read more here

Govt invites bids for selling its stake in Shipping Corporation of India

The Indian government has initiated the sell-off plan for Shipping Corporation of India Ltd (SCI), by inviting expression of interest from potentially interested parties. The government proposes to sell its entire shareholding of 63.75% in the listed entity to a buyer that will takeover the company with full management control. The deadline for submitting initial bids is on February 13, 2021. 

Read more here.

Bajaj Auto to set up a Rs 650-crore unit in Maharashtra 

Bajaj Auto Ltd has signed a Memorandum of Understanding (MoU) with the Government of Maharashtra for Rs 650 crore, to set up a manufacturing unit in Chakan. The state government will facilitate Bajaj Auto in obtaining necessary permissions, registrations, approvals, clearances, and fiscal incentives from the concerned departments. The facility will be utilised for manufacturing high-end KTM, Husqvarna, and Triumph motorcycles. Bajaj Auto stated that the new facility is expected to commence production in 2023.

Read more here.

Infosys partners with Daimler for IT infrastructure transformation

Infosys Ltd and German automotive major Daimler AG have entered a long-term strategic partnership for a technology-driven IT infrastructure transformation. With support from Infosys, Daimler AG will transform its IT operating model and infrastructure landscape across workplace services, data centers, and networks. The collaboration will also empower Infosys to strengthen its automotive expertise.

Read more here.

Dr. Reddy’s seeks approval from Canada for Favipiravir pills for Covid-19 treatment

Dr. Reddy’s Laboratories Ltd, Canada-based Appili Therapeutics, and Dubai-based Global Response Aid FZCO (GRA) on Tuesday said that Dr. Reddy’s Canada has filed an application on behalf of the consortium for Reeqonus (favipiravir) Tablets. The tablets are indicated for acute treatment of mild to moderate Covid-19 adult patients. The application has been filed under Health Canada’s “Interim Order Respecting the Importation, Sale, and Advertising of Drugs for Use in Relation to Covid-19”.

Read more here.

Embassy REIT raises Rs 3,680 crore to fund acquisition of Embassy Tech Village

Embassy Office Parks REIT has raised Rs 3,680 crore ($501 million) through an institutional placement of its units. The proceeds from this placement will be utilised to fund the REIT’s proposed acquisition of Embassy TechVillage (ETV), an information technology park in Bengaluru, for $1.3 billion (~Rs 9,602 crore). The transaction is expected to close by the end of this month.

Read more here.

Oil India signs MoU with Assam Hydrocarbon 

Oil India Ltd, on Tuesday, signed a Memorandum of Understanding (MoU) with Assam Hydrocarbon & Energy Company (AHECL) in Guwahati. The company stated that the MoU is aimed at establishing a joint institutional framework to facilitate bilateral cooperation in hydrocarbon exploration, development, and marketing of natural gas in Assam for mutual benefit.

Read more here.

Jubilant Foodworks introduces India’s first plant-protein based pizza

Jubilant Foodworks Ltd announced that Domino’s Pizza has introduced India’s first plant-protein based product – ‘The Unthinkable Pizza’. The company stated that Domino’s latest offering is 100% vegetarian, and yet, has the sensory properties of chicken. The pizza would be available at all Domino’s restaurants across Delhi NCR, Mumbai, and Bangalore. Jubilant Foodworks is the master franchisee for Domino’s Pizza in India, Nepal, Sri Lanka, and Bangladesh.

Read more here.

NMDC signs MoU with MECL for joint mineral exploration

NMDC Limited has signed an MoU with Mineral Exploration Corporation Limited (MECL) for joint exploration for iron ore, gold, coal, diamond, and other minerals in mutually agreed projects across various states. This will support the government’s ‘Atmanirbhar Bharat Abhiyan’ initiative and extend its commitment towards mineral security for the nation. NMDC Ltd is India’s largest iron ore producing ‘Navaratna’ company.

Read more here.

Aster DM Healthcare to invest $100 million to set up hospital in Cayman Islands

Aster DM Healthcare said it will invest around $100 million (~Rs 738 crore) to set up a tertiary care hospital in the Cayman Islands, as part of its plans to set up a clinical excellence hub in the region. The company stated that it has signed an agreement with the Government of Cayman Islands to set up a clinical excellence hub to serve the Caribbean Region, North America, Canada, and South America. Aster will initially develop around 150-bed tertiary and quaternary care hospitals in these regions.

Promoters of Wendt India withdraws its proposed OFS

Carborundum Universal and Wendt GmBH, the promoters of Wendt India Ltd, has decided to withdraw the proposed offer for sale (OFS) of shares. In a BSE filing, the Murugappa Group company said that due to delay in transfer of the sale shares as required under the SEBI OFS circulars, it has decided to withdraw the OFS. On Monday (21 December 2020), both promoters had proposed to sell up to 94,704 equity shares, or 4.74% stake of Wendt (India) via an OFS on 22nd and 23rd of December 2020. 

Read more here.

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Market News Top 10 News

India’s Retail Inflation Eases to 6.93% in November – Top Indian Market News

India’s retail inflation declines to 6.93% in November

India’s retail inflation, which is measured by the Consumer Price Index (CPI), declined to 6.93% in November. The CPI for the month of October was 7.61%. Vegetable inflation for November came in at 15.63%, oils & fat at 17.86%, and meat & fish at 16.67%. The RBI expects retail inflation to ease to 5.4% in the third quarter and 4.5% in the fourth quarter of FY2021.

India’s inflation based on the wholesale price index (WPI) increased to 1.55% in November, as manufactured products turned costlier. The WPI inflation was 1.48% in October 2020.

Read more here.

Reliance Jio asks TRAI to take strict action against Vi, Bharti Airtel for spreading rumors

Reliance Jio has asked the Telecom Regulatory Authority of India (TRAI) to take strict action against Vodafone Idea (Vi) and Bharti Airtel for resorting to “unethical” ways and spreading “frivolous rumors” that Jio will gain from the Farm Bills. The company stated that retailers in certain cities in Punjab and NCR have seen an increase in customers porting out of Reliance Jio and joining either Vi or Bharti Airtel. This comes on the back of more than 50,000 farmers calling for a national boycott of Reliance products, including Jio Sim cards and phones.

Read more here.

Infosys partners with El Paso Water for customer service transformation

Infosys Ltd has entered into a strategic partnership with El Paso Water to improve the latter’s customer service systems. The IT major will help transform EP Water’s legacy customer information systems (CIS) with Oracle Utilities Customer to Meter (C2M). EP Water stated that this project will help them increase efficiency and customer satisfaction. EP Water is a municipal utility in El Paso, Texas.

Read more here.

Tata Sons, Air India employees submits expression of interest for struggling airline

As per reports, Tata Sons, US-based Interups Inc, and a consortium of Air India employees have placed an expression of interest (EoI) for the national carrier (Air India). Air India’s employee group, which consists of 219 members, submitted a bid to purchase 51% of the loss-making state-owned carrier. Today is the last day for submission of expression of interest. According to the latest government notification, the qualified institutional bidders (if any) will be invited to start bidding for the airline from December 28.

Burger King India’s share debut becomes biggest since 2017

The shares of Burger King India Ltd surged 131% on its first day of trading, making it one of the biggest share debuts since Aston Paper & Board Ltd in 2017. The company’s stock began trading at Rs 115, which was a 92.25% premium against its issue price of Rs 60. With restaurants reopening and vaccines on the way, investors are betting that Indians will be thronging fast-food chains.

Read more here.

Schindler partners with L&T Tech for digital & engineering transformation

L&T Technology Services (LTTS) said that it has been selected by Schindler as one of its key partners to provide innovative digital engineering capabilities. LTTS will provide product development, innovation, and engineering solutions that will help Schindler to accelerate its digitization and connectivity initiatives. The Schindler Group is a Swiss multinational company that manufactures escalators, moving walkways, and elevators.

Read more here.

Delta Corp receives approval for resort in Goa

Delta Corp Limited has received in-principle approval from the Goa Investment Promotion and Facilitation Board for setting up an integrated resort. The company stated that its new resort in Pernem (Goa) will consist of hotels, convention centres, multiplex cinema halls, a retail area, an electronic casino, a water park, and other facilities. Delta Corp is the only listed company engaged in the casino (live, electronic, and online) gaming industry in India.

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L&T Construction secures contracts worth up to Rs 2,500 crore

Larsen & Toubro Ltd’s construction arm said that it has secured contracts in the range of Rs 1,000 crore- Rs 2,500 crore for its various businesses. The orders were secured from clients for two of L&T Construction’s businesses: Building & Factories (B&F) Business and Power Transmission & Distribution Business. The company has also secured a design & build order from a reputed client to construct a multi-specialty hospital at Nagpur.

Read more here.

Ramco Systems bags multi-million dollar orders from foreign companies

Ramco Systems Ltd announced that its various businesses have signed multi-million dollar agreements with multiple companies based in Europe, Asia, and America. However, the company did not disclose the value of the orders. Ramco Aviation, Aerospace & Defense signed an agreement with a leading European MRO (Maintenance, Repair & Overhaul) to digitally transform their business. Ramco ERP has signed an agreement with Agrifields DMCC for providing modules for inventory, procurement, production, and maintenance for its operations in the Philippines.

Read more here.

KEC International secures orders worth Rs 1,438 crore

KEC International Ltd announced that it has secured orders worth Rs 1,438 crore across its various businesses. The company’s railways business has secured orders worth Rs 475 crore in the urban infrastructure segment in India. KEC’s civil business has secured orders of Rs 383 crore for infra works from reputed private players in the chemical and cement segments. The cables business has secured orders of Rs 218 crore for various types of cabling projects in India and overseas.

Read more here.

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Market News Top 10 News

Kerala Moves SC Against Leasing Out TVM Airport to Adani – Top Indian Market News

Kerala moves SC against leasing out TVM airport to Adani Group

The Kerala Government moved the Supreme Court seeking a stay on the Centre’s decision to lease out the Thiruvananthapuram International Airport to Adani Enterprises Ltd. Adani had won the rights for the operations of the airport in an auction held in August. The petition filed by Kerala in the apex court argues that Adani Group does not have prior experience in the field and is therefore unfit. The petition also claims that the decision goes against “public opinion”. 

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RBI rejects Muthoot Finance’s proposal to buy IDBI Mutual Fund

Muthoot Finance, on Tuesday, announced that the Reserve Bank of India has rejected its proposed acquisition of IDBI Mutual Fund. The company’s request for a no-objection certificate was not accepted by the RBI. The central bank stated that “the activity of sponsoring a Mutual Fund or owning an Asset Management Company is not in accordance with the activity of an operating NBFC”.

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Karvy Stock Broking expelled from NSE’s membership, declared as defaulter

The National Stock Exchange (NSE) has scrapped Karvy Stock Broking Ltd. from its membership and declared it as a defaulter. The move was taken as the broker failed to comply with NSE guidelines. In November 2019, Karvy had transferred securities worth Rs 2,300 crore into its account by misusing the power of attorney given by its clients. 

Read more here.

Maruti Suzuki extends vehicle subscription service to 4 new cities

Maruti Suzuki Ltd. announced that it will be extending its subscription services to Mumbai, Chennai, Ahmedabad, and Gandhinagar. The Maruti Subscribe program was launched four months ago, and will now operate in a total of 8 cities. India’s largest automaker has plans to expand its subscription service to 40-60 cities by 2023.

Read more here.

Goa government issues demand notice to JSW Steel to pay Rs 156 crore

The Goa government has issued a demand notice to JSW Steel Limited to pay Rs 156.34 crore for the transportation of coal. The company has to pay the amount towards the Goa Rural Improvement and Welfare Cess within 15 days. The notice said that the company representative may face punishment with imprisonment of two years or a fine of Rs 25,000 if the cess is not paid.

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Gayatri Projects receives Rs 208 crore arbitral award

Gayatri Projects Ltd. said that it has received Rs 208 crore under the Government of India scheme of monetisation of ‘under litigation arbitral award’ against bank guarantees. The company, along with its joint venture (JV) partner, had been awarded an arbitration claim worth Rs 703 crore (including interests) for its road project in Nagaland. The construction company has now received 75% of the claim.

Read more here.

Infibeam Avenues collaborates with Bank Muscat for digital payment services

Infibeam Avenues has tied up with Bank Muscat to offer payment processing services. The company is set to offer next-generation payment processing services under the flagship brand CCAvenue to merchants in Oman’s e-commerce sector. Infibeam has also expanded its operations to the UAE, Saudi Arabia, and the US this year.

Read more here.

SpiceJet launches mobile testing lab in Delhi

SpiceJet Limited has launched a mobile testing laboratory to conduct Covid-19 tests in Delhi. The lab will conduct tests at Rs 499 and can process up to 3000 test reports per day. SpiceHealth (an initiative of SpiceJet) has tied up with GeneStore to establish diagnostic testing facilities across the country as a ‘Make in India’ initiative.

Read more here.

Adani Ports ranked 14th in Dow Jones EM Index

Adani Ports & Special Economic Zone Ltd. has been ranked 14th in the global transportation and infrastructure sector of the Dow Jones Sustainability Emerging Markets Index 2020. The index is based on long-term environment, social & economic, and governance criteria. APSEZ said that it has ranked in the top 20 of every single dimension of the three criteria.

Read more here.

Tata Group to infuse $50 million into AirAsia India: Report

As per a report from Mint, the Tata Group is planning to invest $50 million (~Rs 370 crores) as emergency funding in the loss-making AirAsia India. The report states that fund infusion will be through a mix of debt and equity instruments. Thus, Tata Group’s stake in AirAsia India Ltd will go beyond the current 51%. Last week, Malaysia-based AirAsia Group said it was reviewing its India operations run in partnership with Tata Group. It had also indicated a possible exit from the country. 

Read more here.

Infosys wins contract from Mongolia-based XacBank

EdgeVerve Systems, a wholly-owned subsidiary of Infosys Ltd., has bagged a contract from Mongolia-based XacBank. Infosys Finacle’s core banking, treasury, and corporate banking solutions will be used to accelerate the bank’s digital transformation. The partnership will help XacBank to standardize business processes, simplify enterprise architecture, and offer tailored services.

Read more here.

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Editorial Editorial of the Day

Wipro : A True Long Term Candidate?

Wipro is a leading Indian multinational corporation that provides global information technology, consulting and business process services. The company was incorporated in 1945 as a manufacturer of vegetable and refined oils. In 1970-80, ‘Western India Palm Refined Oil Limited’ (now known as Wipro) shifted its focus towards the Indian IT industry. Under the leadership of Azim Premji, Wipro reached new heights, not only domestically but globally. Today, the company stands as the 4th largest IT company in India based on market capitalisation. 

Decoding Q2 FY21 results

Wipro announced their Q2 FY21 results just after the market hours on 13th October 2020. There was a sense of optimism in the market that the company is going to declare good numbers. And, this is what exactly happened! Wipro reported a decline of 3.4% YoY in net profits. At the same time, their net profits increased by 3.2% as compared to the previous quarter.

The revenues and net profits amassed for this quarter are Rs 15,114.50 crore and Rs 2,465.70 crore respectively. These numbers defeated a few market estimates and were on par with the others. Next day after the result, Wipro’s share price dropped by 7.06% to close at Rs 349.40. This could have happened as the investors look to book profits when the core reason for the rally is achieved. You must have heard the saying, “buy on rumours sell on news”. We believe this is what occurred today with Wipro in the market.

Due to fewer business projects during the pandemic, many big companies are laying off their employees. This leads to a negative sentiment among the market participants. Wipro has done exactly opposite to this! They have hired 12,000 employees including the onboarding of 3,000 employees in the second quarter itself. This speaks how the business of Wipro is expanding even in these testing times.

Operating revenue and profit tells how much a company is able to earn from their core business. If a company’s core business is not performing well, then it’s a red signal for the investors. Wipro’s operating profits have risen by 5.2% YoY and 4.4% QoQ. These are amazing numbers considering how the companies are trying to do business during the COVID-19 times.

Big News!

The major announcement which everyone was waiting for was of the share buyback. And yes! Wipro did officially declare a share buyback of 23.75 million equity share for Rs 400/ share. On 13th October 2020, Wipro closed at Rs 375.75. It means that promoters will buy the shares back at a premium of 6.45%. With this, Wipro became the second IT company to announce a share buyback after TCS in this quarter.

Why does share buyback have this hype? A company conducts a share buyback only when they believe that they are financially stable. This step shows the investors that the company is bullish about the company’s growth. They are willing to buy the shares at a higher price than the market price and are confident enough to take it even higher. Any company cannot be in a position to buy back shares until it has huge cash reserves. Wipro has registered an amazing 37.5% YoY rise in their operating cash flows. To know more about share buyback, click here.

The Price Uptrend

When the fear of coronavirus became real in March, Wipro’s share price faced a steep fall in the market. On 4th March, their share price was trading at Rs 229.70. On March 19, prices dropped to its 52-week low at Rs 162.35. Since then, Wipro’s share price has witnessed a constant rise. 

On 13th October, their share price was last traded at Rs 375.20. Two days back when the rumours of Wipro’s share buyback was heard in the market, their share price touched it’s all-time high at Rs 381.70. You can see the upward movement in the chart below.

(Wipro’s share price making new highs after collapsing from Covid crash)

In the past week itself, Wipro’s price has risen more than 12%! This shows how bullish people are with the stock. If you are following The Stock Market Show on Youtube, you would have realized how Nifty IT has been aiding Nifty 50 to rally upwards. Wipro has been one of the most important players to force that rally. As we mentioned above, post-result a significant fall in the share price was noticed. Yet, we believe that a company like Wipro which is fundamentally very strong will contribute immensely to the future of Indian IT industry.

Expectation in future

Wipro’s board is confident that the company will continue to climb the ladder in the coming future as well. They expect next quarter’s revenue from IT services to be between $2,022 million (Rs 14,815 crore) to $2,062 million (Rs 15,108 crore). That will cumulate to be a QoQ growth of 1.5%-3.5%. 

“I am very excited about the opportunities that are ahead of us and encouraged by the acceleration in business momentum we have seen this quarter. Our strategy is to focus on growth in prioritised sectors and markets led by vertical solution offerings.” – Thierry Delaporte, CEO of Wipro.

The company also announced the acquisition of engineering services company Eximius Design for Rs 586.3 crore. Eximius Design provides end-to-end solutions and services using modern technological tools like Artificial intelligence, Cloud, IoT etc. They are into Product Engineering services, Design & Development services, Maintenance & Value Engineering and System Validation & Test Automation.

This acquisition will help Wipro to expand into newer market segments and strengthen market leadership in VLSI (Very Large Scale Integration) and systems design services. They would be able to enhance their client’s experience of using new-age technologies. The IT sector is one of the very few sectors which is flourishing during these dismal times. Unlike other jobs, people working in IT companies are able to operate from home easily. This helps the companies to save their fixed cost and invest in technological expansion.

During the pandemic, local lockdowns are very frequent. Due to this, most of the non-IT company depends on the services offered by IT companies like Wipro. This is why the IT stocks are giving huge capital appreciation returns to the investors in the market right now. How long will this trend continue? Also don’t forget that in the 21st century, large cap companies can give you multibagger returns in the long run. You can read Wipro’s press release here.

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Market News Top 10 News

Infosys’ net profit rises 20.5% YoY- Top Indian Market News

penny stocks

Infosys’ net profit rises 20.5% year-on-year

Infosys Limited has reported a 20.5% year-on-year (YoY) rise in net profit at Rs 4,845 crore, for the quarter ended September 30 (Q2). The company has declared an interim dividend of Rs 12 per share. Infosys also announced that it will roll out salary increases and promotions across all levels, with effect from 1st January 2020.

Read more here.

Supreme Court asks Govt to implement interest waiver scheme by Nov 2nd

The Supreme Court of India, on Wednesday, refused to give the Central Government a month’s time to implement the interest waiver scheme on loans. The court has instructed the government to implement the waiver by 2nd November. On 3rd October, the government had announced that ‘interest-on-interest’ for loans up to Rs 2 crore would be waived off, as a relief for borrowers.

Read more here.

Tata Elxsi reports 58% year-on-year increase in net profits

Technology consultants Tata Elxsi has reported a 58% year-on-year (YoY) rise in net profits to Rs 79 crore, for the quarter ended September (Q2). The company has also secured a revenue growth of 11.4% YoY at Rs 430 crore.

Read more here.

India’s WPI inflation rises to 1.32% in September

The Wholesale Price Index (WPI) inflation has increased to 1.32% in September, as compared to 0.16% in August. WPI measures the changes in the price of goods sold and traded in bulk by wholesalers to other businesses. This has been the highest rise in WPI inflation since February.

Read more here.

India’s public debt ratio to jump to 90% due to Covid-19: IMF

The International Monetary Fund (IMF) said that India’s public debt ratio is projected to increase to 90% of the GDP, due to the increase in public spending due to Covid-19. Since 1991, India has maintained a stable public debt ratio of around 70% of the GDP. IMF has reported that the fall in tax revenues and economic activity will cause the public debt ratio to jump by 17 percentage points.

Read more here.

Tata Power to develop 100 MW solar project in Gujarat

Tata Power has received a Letter of Award from the Gujarat Urja Vikas Nigam (GUVNL)  to develop a 100 MW (megawatt) solar project in Dholera Solar Park in Gujarat. The energy will be supplied to GUVNL under a Power Purchase Agreement (PPA), which is valid for a period of 25 years from the scheduled date of commercial operation. A solar PPA is a financial agreement by which a developer designs and installs a solar energy system on a customer’s property, at a very low cost.

Read more here.

Bharat Biotech cuts Covaxin Phase-2 trial size by half

Biotechnology firm Bharat Biotech has cut the size of the Phase-2 clinical trial of its Covid-19 vaccine Covaxin by half. As per the initial plan, 750 volunteers were to be tested with the vaccine. However, the company will now provide the dose to only 380 healthy volunteers. Covaxin had completed Phase-1 trials in August, and had shown positive results.

Read more here.

Future Group lost Rs 7,000 crore revenue due to Covid-19: Biyani

Founder of Future Group Kishore Biyani said that his company had lost nearly Rs 7,000 crore in the first 3-4 months of the Covid-19 pandemic. This is what led him to sell his business to Mukesh Ambani’s Reliance Industries Limited (RIL). In August, RIL had announced the acquisition of Future Group’s retail, wholesale, and warehousing business for Rs 24,713 crore.

Read more here.

CLP Wind Farms raises Rs 297 crore through non-convertible debentures

CLP Wind Farms (India) Private Ltd, a subsidiary of CLP India, has raised Rs 296.9 crore through the issue of rated, secured, unlisted, redeemable, and non-convertible debentures. CLP India is one of the largest foreign investors in the Indian power sector, and has the aim of expanding its renewable energy portfolio. The company has also secured deals to develop wind projects of 1000 MW (megawatts) across six states in India.

Read more here.