Tag: irb infra developers

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SpiceJet Calls for 10-15% Hike in Airfares – Top Indian Market Updates

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

SpiceJet to hike airfares up to 15% on fuel, forex costs

SpiceJet Ltd has called for a 10-15% hike in airfares to counter high fuel costs and a weak rupee. Operating costs have increased to unsustainable levels. The airline’s MD Ajay Singh noted aviation turbine fuel prices have increased by more than 120% since June 2021. He has called on the federal and state governments to cut taxes.

Read more here.

IRB Infra’s arm achieves financial closure for Rs 6,538 crore expressway project in UP

Meerut Budaun Expressway Pvt. Ltd, a wholly-owned subsidiary of IRB Infrastructure Developers Ltd, has achieved financial closure for a Rs 6,538-crore project in Uttar Pradesh. The Ganga Expressway Group-1 is a greenfield project that will be carried out under Build, Operate, and Transfer (BOT) mode. A consortium of lenders extended financial support of Rs 2,659 crore for the six-lane greenfield expressway corridor of 129.7 km.

Read more here.

Glenmark Pharma launches asthma drug

Glenmark Pharmaceuticals Ltd has launched a novel fixed-dose combination (FDC) drug for patients with uncontrolled asthma. It will be sold under the brand name Indamet. The drug will help manage uncontrolled asthma by improving lung function, better symptom control, and reducing exacerbations.

Read more here.

Dredging Corp secures maintenance contract worth Rs 250 crore

Dredging Corporation of India Ltd has secured a yearly maintenance contract worth Rs 250 crore for Mumbai and the JNPA navigation channel. It includes dredging of ~20 million cubic meters. The company is aiming at its highest ever turnover of Rs 1,000 crore for the financial year 2022-23 after the extension of the contract by Jawaharlal Nehru Port Trust (JNPT).

Read more here.

TCS partners with QIAGEN for digital transformation

Netherlands-based QIAGEN has selected Tata Consultancy Services (TCS) as the strategic partner for its cloud transformation journey.  QIAGEN is a leading global provider of sample-to-insights solutions in life sciences and molecular diagnostics. TCS will assist QIAGEN with its deep contextual knowledge of the company’s infrastructure, applications, and systems.

Read more here.

Lockdown in China may have an adverse impact on sales outlook in FY23: Tata Motors

In its Annual Report, Tata Motors Ltd stated that the recent lockdowns in parts of China due to the spread of Covid-19 are adversely impacting its supply chains. Suppliers are unable to produce or deliver products to them. The automaker also said it is witnessing a temporary decline in demand. They are anticipating a severe impact on its sales outlook in FY23.

Read more here.

ICICI Bank hikes FD interest rates

ICICI Bank has raised its interest rates on fixed deposits (FD). The interest rates on amounts below Rs 2 crore have been increased effective from June 16, 2022. The bank now offers an interest rate between 2.75% to 5.75% for tenors from 7 days to 10 years. Term deposits with a maturity of 185 to less than one year now pay 4.60%. Those with a maturity of one year to two years will fetch 5.30% interest.

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5G network rollout likely in August: Telecom Secretary

Telecom secretary K Rajaraman said 5G rollout is expected to begin in August once the auctions are conducted in July. On Wednesday, the Union Cabinet cleared the 5G spectrum auctions after accepting the spectrum reserve prices recommended by the telecom regulator. Around 72 GHz of airwaves will be placed for auction to rollout 5G services in India. The auction will take place from July 26.

Read more here.

Wipro partners with Eros Investments to scale AI & ML-based content localisation solution

Wipro Ltd has partnered with Eros Investments to evolve and scale an Artificial Intelligence (AI) and Machine Learning (ML)-based content localisation solution. The solution will automate the time-consuming process of subtitling and dubbing with near human-level accuracy. It will drive significant cost and time savings for global media organizations and direct-to-consumer over-the-top (OTT) streaming platforms.

Read more here.

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RIL Raises $4 billion in India’s Largest Forex Bond Deal – Top Indian Market News

RIL raises $4 billion in India’s largest forex bond deal

Reliance Industries Ltd (RIL) has raised $4 billion (~Rs 29,780 crore) in US dollar bonds, marking India’s largest-ever foreign currency bond deal. RIL raised $1.5 billion in a 10-year tranche, $1.75 billion in a 30-year, and $750 million in a 40-year deal. The company plans to use the proceeds from the issue to refinance its existing borrowings. The issue was oversubscribed nearly three times, with a peak order book aggregating $11.5 billion.

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L&T Construction secures large contracts under water and effluent treatment segment

The Water & Effluent Treatment Business of Larsen & Toubro (L&T) Construction has secured large orders (in the range of Rs 2,500-5,000 crore). The Department of Water Supply and Sanitation, Punjab, has awarded two EPC orders for the bulk supply of treated water to 10 lakh people across 412 villages in Fazilka and Ferozepur districts. The Odisha government has given a repeat EPC order to execute the Under Ground Pipeline Irrigation System for the Rengali Right Irrigation Project (Phase-I).

Read more here.

Reliance Retail acquires 25.8% stake in Dunzo for $200 million

Reliance Retail Ventures Ltd (RRVL) has invested $200 million (~Rs 1,488 crore) in Bengaluru-based Dunzo as it looks to get a foothold in the country’s rapidly growing market of quick delivery. RRVL will hold a 25.8% stake in Dunzo on a fully diluted basis. Dunzo will enable hyperlocal logistics for the retail stores operated by RRVL to boost its omnichannel capabilities.

Read more here.

ADF Foods gets approval under PLI scheme for food processing industries

ADF Foods Industries Ltd has received approval from the Central Government under Production Linked Incentive (PLI) scheme for food processing industries– incentive for branding and marketing expenditure abroad. The company would be an extended financial incentive at 50% of budgeted outlay on international branding and marketing expenditure or 3% of sales of food products (whichever is lower), subject to a maximum incentive of Rs 61.35 crore from FY22 to FY26.

Wockhardt board approves plan to raise Rs 1,000 crore via rights issue

The Board of Directors of Wockhardt Ltd has approved a proposal to raise up to Rs 1,000 crore through a rights issue. The objective of the issue is to meet the company’s financing needs for repayment of subordinated debt due, financing research & development initiatives, and general corporate purposes.

Read more here.

IRB Infra’s subsidiary executes concession pact for Rs 6,555 crore project in UP

Meerut Budaun Expressway Pvt Ltd (MBEPL) has executed a concession pact with Uttar Pradesh Expressways Industrial Development Authority (UPEIDA) for the Rs 6,555 crore Ganga Expressway project. The total length of the project is 129.7 km. MBEPL is a wholly-owned subsidiary of IRB Infrastructure Developers Ltd.

Read more here.

Alembic Pharma gets USFDA approval for generic drug to treat Parkinson’s disease

Alembic Pharmaceuticals Ltd has received final approval from the US Food & Drug Administration (USFDA) for its Abbreviated New Drug Application (ANDA) for Entacapone tablets. The drug is indicated to treat end-of-dose “wearing-off” in patients with Parkinson’s disease. According to IQVIA data, the tablets had a market size of $10.5 million (~Rs 78.2 crore) for the twelve months ended September 2021.

Read more here.

HDFC Life completes acquisition of Exide Life; to start merger soon

HDFC Life Insurance Company Ltd announced the closure of the acquisition of Exide Life. The company acquired a 100% stake in Exide Life from Exide Industries Ltd after issuing over 8.7 crore shares at Rs 685 per share and a cash payout of Rs 726 crore, aggregating to Rs 6,687 crore. HDFC Life will soon initiate the merger of Exide Life with itself. Exide Industries now holds a 4.1% stake in HDFC Life.

Read more here.

SJVN power stations register 1,480 MU of electricity generation in October-December

SJVN Ltd’s power stations have clocked the highest ever 1,480 million units (MU) of electricity generation in the October-December quarter of 2021-22 (Q3 FY22). The state-run company has surpassed the previous record of 1,343 MU in the corresponding period of FY20, from all its power stations. SJVN is aiming to achieve an installed capacity of 5,000 megawatts (MW) by 2023.

Read more here.

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Reliance, Aramco to Re-Evaluate Investment Proposal – Top Indian Market News

Reliance, Aramco to re-evaluate investment proposal

Reliance Industries Ltd (RIL) and Saudi Aramco have mutually decided to re-evaluate a major investment proposal concerning the Oil to Chemicals (O2C) business of RIL. The deal was estimated to be about $15 billion. The current application with the National Company Law Tribunal (NCLT) for segregating the O2C business from RIL is being withdrawn.

Both companies had signed a non-binding Letter of Intent (LoI) in August 2019 for a potential 20% stake acquisition by Saudi Aramco in the O2C business of RIL.

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Govt puts MTNL, BSNL assets worth about Rs 1,100 crore on sale

The government has listed real estate assets of state-run telecom firms MTNL and BSNL for sale at a reserve price of around Rs 1,100 crore. BSNL properties located in Hyderabad, Chandigarh, Bhavnagar, and Kolkata have been posted for sale at a reserve price of ~Rs 800 crore. The Department of Investment and Public Asset Management (DIPAM) website has listed MTNL assets located in Vasari Hill, Goregaon in Mumbai for sale at a reserve price of Rs 270 crore.

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IRB Infra shareholders pass resolution for Rs 5,347 crore capital inflow

IRB Infrastructure Developers Ltd’s shareholders have passed a resolution that will enable a capital inflow of Rs 5,347 crore into the company. This move will allow IRB Infra to issue shares worth up to Rs 5,347 crore to Cintra Global S.E. (a wholly-owned subsidiary of Spain-based Ferrovial S.A) and Bricklayers Investments (an affiliate of GIC, Singapore Sovereign wealth fund).

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Sundaram AMC gets SEBI approval for its acquisition of Principal AMC in India

Sundaram Asset Management Company (AMC) has received approval from market regulator SEBI to acquire Principal Asset Management Company in India. The company will acquire the schemes managed by Principal India and 100% of the share capital of its subsidiaries. As per regulatory requirements, there will be an ‘exit load free window’ for investors to redeem their investments. Sundaram AMC is a wholly-owned subsidiary of Sundaram Finance Ltd. 

Read more here.

Prices of apparel, textiles to increase from Jan 1 as Govt raises GST from 5% to 12%

The prices of apparel, textiles, and footwear are set to increase from next year as the Central Board of Indirect Taxes (CBDT) notified an increase in the Goods & Services Tax (GST) rate from 5% to 12%. The increased GST rate on the categories will be applicable from January 1, 2022. However, GST rates on or certain synthetic fibres and yarn have been lowered from 18% to 12%, making rates uniform across the entire textile sector. 

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EPFO plans to invest 5% of annual deposits on InvITs, alternative funds

Employees’ Provident Fund Organisation (EPFO) has approved measures to invest up to 5% of its annual deposits in infrastructure investment trusts (InvITs) and other alternative funds. Under its current investment pattern, EPFO invests around 45-50% of its incremental deposits in government securities, 35-45% in debt instruments, around 5-15% in the equity market, up to 5% in short-term debt instruments, and another 5 % in short-term debt instruments. You can learn more about the operations of EPFO here.

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Kotak Mahindra Bank’s Net Profit Falls 7% YoY in Q2 – Top Indian Market News

Kotak Mahindra Bank Q2 Results: Net profit falls 7% YoY to Rs 2,032 crore

Kotak Mahindra Bank reported a 7% YoY decline in net profit to Rs 2,032 crore for the quarter ended September (Q2 FY22). Net profit rose 24% compared to the previous quarter. Its net interest income (NII) rose 3% YoY to Rs 4,021 crore during the same period. [NII is the difference between the interest income a bank receives on loans and the interest paid to depositors]. The bank’s gross non-performing assets (GNPA) ratio stood at 3.19% in Q2, compared to 3.56% in the previous quarter. The figures have beaten street estimates.  

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Reliance BP Mobility launches first mobility station in Navi Mumbai

Reliance BP Mobility Ltd (RBML) launched its first Jio-bp branded mobility station at Navde in Navi Mumbai. RBML is the fuel and mobility joint venture (JV) between Reliance Industries Ltd (RIL) and UK-based energy company bp. The JV operates fuel retail stations and is in the process of rebranding around 1,400 fuel pumps. Jio-bp Mobility Stations will offer additivised fuel, which forms a protective layer on critical engine parts to keep the engines clean.

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Bajaj Finance Q2 Result: Net profit rises 53% YoY to Rs 1,481 crore

Bajaj Finance reported a 53.5% YoY increase in consolidated net profit to Rs 1,481 crore for the quarter ended September (Q2 FY22). Net profit rose 48% compared to the previous quarter. Its net interest income (NII) rose 28% YoY to Rs 5,335 crore during the same period. The company’s gross non-performing assets (GNPA) ratio stood at 2.45% in Q2, compared to 2.96% in the previous quarter. Bajaj Finance’s assets under management (AUM) stood at Rs 1,66,937 crore in Q2, an growth of 22% YoY.

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HG Infra secures order worth Rs 2,297 crore from NHAI

HG Infra Engineering has received a Letter of Award (LoA) from the National Highways Authority of India (NHAI) for projects worth Rs 2,297 crore. The first project is for the development of six lanes in the Kaliagura-Baunsaguar section of NH-130-CD road under the Raipur- Visakhapatnam Economics Corridor.  The second project is for the development of six lanes in the Baunsaguar-Baraja section of NH-130-CD road.

Read more here. 

Axis Bank Q2 Results: Net profit rises 86% YoY to Rs 3,133 crore

Axis Bank reported an 86% YoY increase in net profit to Rs 3,133 crore for the quarter ended September (Q2 FY22). Net profit rose 45% compared to the previous quarter. Its net interest income (NII) rose 8% YoY to Rs 7,901 crore during the same period. The bank’s gross non-performing assets (GNPA) ratio stood at 3.53% in Q2, compared to 3.85% in the previous quarter. Provisions fell sharply by 60% YoY (or 47.5% QoQ) to Rs 1,735.09 crore. The figures are slightly above street estimates.

Read more here. 

Motherson Sumi and Marelli extend cooperation in India

Motherson Sumi Systems Ltd (MSSL) has announced the extension of its cooperation with Germany-based Marelli Automotive Lighting for a new tool room in India. This will be the first-of-its-kind tool room dedicated to specific lighting applications. The toolroom will be an extension of the existing joint venture (JV) company— Marelli Motherson Automotive Lighting India Pvt Ltd. The 50:50 JV was established in 2008 to address the Indian exterior lighting market.

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Ambuja Cement Q3 Results: Net profit at Rs 441 crore

Ambuja Cements’ net profit remained flat at Rs 441 crore for the quarter ended September (Q3 CY21). The company follows the January-December financial year cycle. Its revenue from operations rose 14% YoY to Rs 3,193 crore during the same period. EBITDA stood at Rs 703 crore, up 3.2% YoY. Total operating costs rose 16.7% YoY to Rs 2,534 crore in Q2.

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Bombay HC bars Invesco from calling EGM

The Bombay High Court has granted an interim injunction against Invesco, the largest shareholder of Zee Entertainment Enterprise Ltd (ZEEL). The court has restrained Invesco from going ahead with the demand of an Extraordinary General Meeting (EGM) to remove ZEEL MD and CEO Punit Goenka. The high court reserved its order on the issue last week after ZEEL informed the court that it did not want to hold an EGM of shareholders as requested by Invesco.

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Cipla Q2 Results: Net profit rises 8% You to Rs 712 crore

Cipla Ltd reported a 7.58% YoY increase in consolidated net profit to Rs 712 crore for the quarter ended September (Q2 FY22). Its revenue from operations rose 10.3% YoY to Rs 5,485.84 crore during the same period. EBITDA stood at Rs 1,226 crore, an increase of 4% YoY. The pharma company’s North America revenues grew 2% YoY to $142 million (~Rs 1,065 crore) in Q2.

Read more here.

IRB Infra Q2 Results: Net profit at Rs 42 crore

IRB Infrastructure Developers reported a consolidated net profit of Rs 42.3 crore for the quarter ended September (Q2 FY22). It had posted a net loss of Rs 19.6 crore in the corresponding quarter last year (Q2 FY21). Net profit fell 41% compared to the previous quarter. Its total income rose 28.7% YoY to Rs 1,504.44 crore in Q2 FY22. EBITDA stood at Rs 718 crore, up 29% YoY or 3% QoQ.

The company has announced plans to raise ~Rs 5,347 crore via a preferential allotment of equity shares to Spain-based infrastructure group Ferrovial S.A. and Singapore state investor GIC.

Torrent Pharma Q2 Results: Net profit rises 2% YoY to Rs 316 crore

Torrent Pharmaceuticals reported a 1.98% YoY increase in consolidated net profit to Rs 316 crore for the quarter ended September (Q2 FY22). Net profit declined by 4% compared to the previous quarter. The pharma company’s net sales rose 6% YoY to Rs 2,103 crore during the same period. Its domestic revenues stood at Rs 1,087 crore in Q2, an increase of 13% YoY.

Read more here.

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States Suffer Power Outages as Coal Stocks Shrink – Top Indian Market News

Indian states suffer power cuts and outages as coal stocks shrink

North Indian states have suffered electricity cuts and face further outages due to a lack of coal. The shortages in India follow widespread outages in neighboring China, which has shut factories and schools to manage the crisis. Over half of India’s 135 coal-fired power plants have fuel stocks of less than three days. These plants supply around 70% of India’s electricity. A blackout warning has been declared in Delhi as there is a severe shortage of coal stock in the thermal power station from where the city gets electricity.

On Friday, the Ministry of Power issued guidelines for operationalising optimum utilisation of generating stations as per the requirement in the electricity grid. 

Read more here.

Route Mobile to acquire Latin American firm Masiv for $47.5 million

Route Mobile Ltd has acquired Latin American firm Masivian S.A.S (Masiv) for $47.5 million (~Rs 356.8 crore). Masiv is a cloud communication platform service provider that primarily caters to enterprises in Columbia and Peru. It offers multichannel notification services through SMS, OTT business messaging, email, and voice. The acquisition is expected to be completed within the next 60 days.

Read more here.

Vakrangee Q2 Results: Net profit jumps 101% YoY to Rs 26.7 crore

Vakrangee Ltd reported a 101% year-on-year (YoY) jump in consolidated net profit to Rs 26.74 crore for the quarter ended September (Q2 FY22). Net profit has increased by 33.6% when compared to the previous quarter. Its revenue from operations rose 195% YoY (or 34% QoQ) to Rs 207.19 crore during the same period. Vakrangee provides banking, ATM, insurance, financial services, e-governance, e-commerce, and logistics services in India. 

Inox Leisure opens four-screen multiplex in Guwahati

Multiplex operator Inox Leisure Ltd has launched a four-screen multiplex at Guwahati. The all-new Inox Insignia will offer an ultra-premium multiplex experience with four exclusive auditoriums and a total of 183 recliner seats. With this launch, Inox is now present in 70 cities with 156 multiplexes, 658 screens, and a total seating capacity of 1.48 lakh across India.

Read more here.

Solar Industries India secures order worth Rs 1,471 crore from Coal India

Solar Industries India Ltd (SIIL) has received an order from Coal India Ltd for the supply of bulk explosives over a period of two years. The total order value is Rs 1,471 crore. SIIL manufactures and supplies industrial explosives and explosive initiating devices in India and internationally. The company also provides defense products, including military explosives, bombs, and warheads. 

IRB Sindhudurg Airport starts commercial operations

IRB Sindhudurg Airport Pvt. Ltd (IRB-SAPL) has started commercial operations of the Greenfield Airport Project at Chipi, Maharashtra. IRB-SAPL is a special purpose vehicle (SPV) of IRB Infrastructure Developers Ltd that was entrusted to develop and operate the airport project. IRB Infrastructure, through the SPV, developed the project at an estimated capital outlay of Rs 800 crore.

Read more here.

Bandhan Bank’s collection efficiency improves to 90% in Q2

Bandhan Bank’s collection efficiency rate improved to 90% for the quarter ended September (Q2 FY22), compared to 80% efficiency in Q1. The bank’s loans & advances rose 7% YoY to Rs 81,668 crore in the July-Sept quarter. Its total deposits rose 24% YoY to Rs 81,898 crore during the same period. Retail deposits rose 35% YoY to Rs 68,787 crore as of September 30, 2021. 

Read more here.

Gland Pharma gets tentative approval for Sugammadex injection

Gland Pharma has received tentative approval from the US Food & Drug Administration (USFDA) for generic Sugammadex injection. The drug is used for reversing the effects of the muscle relaxants rocuronium bromide and vecuronium bromide given to patients during surgery. According to IQVIA data, Sugammadex injection had US sales of ~$615 million (~Rs 4,620 crore) for 12 months ended April 2021.

Read more here. 

Mukesh Ambani joins Bezos, Musk in world’s exclusive $100 billion club

Mukesh Ambani has joined Jeff Bezos and Elon Musk in the world’s most exclusive wealth club with a fortune of at least $100 billion. The chairman of Reliance Industries Ltd (RIL) entered the elite group of 11 men as his company’s stock surged to a record high on Friday. According to the Bloomberg Billionaires Index, Mukesh Ambani is now worth $100.6 billion. His wealth has increased by $23.8 billion this year.

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India to Export 8 million Covid-19 Vaccine Doses in October – Top Indian Market News

Some ampoules with ncov-2019 vaccine in a box. to fight the coronavirus pandemic.

India to export 8 million Covid-19 vaccine doses in October

India will export eight million Covid-19 vaccine doses by the end of October after ending its ban on sending doses abroad. Prime Minister Narendra Modi has promised to resume exports of vaccines at a meeting of the ‘Quad’ leaders, as India, Japan, Australia, and the US try to counter growing Chinese influence across the Asia-Pacific region. India will deliver most of the eight million doses of the Johnson & Johnson single-shot vaccine to Asia-Pacific countries.

Read more here.

HDFC sells part of invoked shares of Ansal Housing to recover dues

Housing Development Finance Corp (HDFC) Ltd has sold a part of the shares invoked from Ansal Housing Ltd to recover their dues. The company has sold 12.67 lakh shares, representing 2.13% of the paid-up equity share capital of Ansal Housing. On August 4, HDFC invoked 46.2 lakh shares of Ansal Housing to recover a part of outstanding dues against loans availed by borrowers. The mentioned shares aggregate to 7.78% of Ansal’s total paid-up share capital by HDFC. 

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Tata, Airbus seals contract to make 56 C-295 military transport aircraft

The Ministry of Defence (MoD) has signed a contract worth Rs 22,000 crore with Tata and Airbus Defence and Space-Spain to procure 56 C-295 MW transport aircraft. Under the agreement, 16 aircraft will be delivered in a flyaway condition by Airbus Defence and Space within four years. The remaining 40 planes will be manufactured in India by a consortium of Airbus Defence and Space and Tata Advanced Systems Ltd (TASL) within ten years. The C-295 MW aircraft is a transport plane of 5-10 tonne capacity with cutting edge technology.

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L&T aims to double revenue in next 5 years

Larsen & Toubro CEO and MD SN Subrahmanyan said the company aims to double its revenue in the next five years, implying a CAGR of 16.4% over FY21-26. L&T is constructive on India’s capital expenditure (capex) cycle with a pick-up in infrastructure spending. The CEO added that the international ordering outlook remains strong, which currently contributes ~20% of the total order book for L&T.

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USFDA issues 6 observations after inspection of Biocon’s subsidiary’s unit

The US Food & Drug Administration (USFDA) has issued six observations after the inspection of the manufacturing facility of Biocon Ltd’s Malaysian subsidiary. The health regulator conducted an on-site pre-approval inspection of Biocon Sdn Bhd’s manufacturing facility for Insulin Aspart between Sept 13-24. A Biocon spokesperson said the company is confident of addressing these observations through procedural enhancements and an appropriate Corrective and Preventive Action Plan (CAPA).

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Balkrishna Industries to raise Rs 1,000 crore via long-term finance

The Board of Directors of Balkrishna Industries has approved a proposal to raise up to Rs 1,000 crore through long-term finance. The company will raise funds by issuing foreign currency bonds, non-convertible debentures (NCDs), or external commercial borrowings. The tyre manufacturer has undertaken a Rs 1,000 crore capacity expansion plan. Earlier this month, it also commenced trial production at its new manufacturing unit at Waluj, Maharashtra.

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IRB Infra secures order worth Rs 844 crore from NHAI

IRB Infrastructure Developers has received a Letter of Award (LoA) from the National Highways Authority of India (NHAI) for a road project in Tamil Nadu. The order consists of six-laning of the Chittoor-Thatchur road from Pondavakkam to Kannigaipair in Tamil Nadu on a Hybrid Annuity Mode. The company’s bid project cost is Rs 844.14 crore.

Cinema halls in Maharashtra to reopen from October 22

Maharashtra Chief Minister Uddhav Thackeray said cinema halls and drama theatres in the state will be permitted to operate from October 22. Theatres will have to follow all protocols required to prevent the spread of coronavirus. The state government will soon issue the standard operating procedure (SOPs) in this regard. Schools will reopen across the state from October 4.

Read more here.

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Dr Reddy’s Reports 1% YoY Fall in Net Profit in Q1 – Top Indian Market News

Dr Reddy’s Labs Q1 Results: Net profit declines 1% YoY to Rs 571 crore

Dr Reddy’s Laboratories Ltd reported a 1% year-on-year (YoY) decline in consolidated net profit to Rs 571 crore for the quarter ended June (Q1 FY22). Its revenue from operations rose 11% YoY to Rs 4,919 crore during the same period. The figures are below the street/analysts’ estimates. The sales revenue from its India operations rose 69% YoY to Rs 1,060 crore in Q1.

In a statement, the pharma company said it has commenced investigation on an anonymous complaint that healthcare professionals in Ukraine and few other markets were provided with improper payments (bribes) on behalf of the company. Dr Reddy’s Labs has also been subpoenaed by the US Securities Exchange Commission to hand over certain documents. If found guilty, the company could face civil or criminal action under US anti-corruption laws.

Read more here. 

Adani Ports raises $750 million via long-term bonds

Adani Ports and Special Economic Zone Ltd (APSEZ) has raised $750 million (~Rs 5,590 crore) from overseas investors through the issuance of bonds. The coupon rates for the 10.5-year and 20-year dual-tranche bonds were fixed at 3.8% and 5%, respectively. APSEZ will use the net proceeds to repay existing debt, meet capital expenditure requirements, and for general corporate purposes.

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IndusInd Bank Q1 Results: Net profit doubles to Rs 1,016 crore

IndusInd Bank reported a 99% YoY jump in consolidated net profit to Rs 1,016 crore for the quarter ended June (Q1 FY22). Net profit has increased by 9.7% when compared to the previous quarter. Its net interest income (NII) rose 8% YoY to Rs 3,563.7 crore during the same period. The gross non-performing assets (GNPA) ratio increased to 2.88% in Q1 FY22, compared to 2.67% in the previous quarter (Q4 FY21).

Read more here.

Tata Communications launches IZO™ Financial Cloud platform in India

Tata Communications has announced the launch of ‘IZO™ Financial Cloud’, a purpose-built community cloud platform. It enables next-gen digital transformation for the Banking, Financial Services, and Insurance (BFSI) sector. The platform is customised to meet the stringent data privacy, protection compliance, and security guidelines defined by India’s regulators. 

Read more here.

Dixon Tech Q1 Results: Net profit jumps 1,035% YoY to Rs 18 crore

Dixon Technologies reported a 1,035% YoY jump in consolidated net profit to Rs 18.2 crore for the quarter ended June (Q1 FY22). Net profit has declined by 59% when compared to the previous quarter. Its revenue from operations rose 261% YoY to Rs 1,867 crore during the same period. The company’s operating profit jumped 182% YoY to Rs 48.3 crore in Q1. The strong performance in the April-June quarter was aided by an extremely weak base in the year-ago period Q1 FY21 (due to Covid-induced lockdowns). You can learn more about Dixon Tech here.

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IndiGo Q1 Results: Net loss at Rs 3,174 crore

InterGlobe Aviation (IndiGo) reported a net loss of Rs 3,174.2 crore for the quarter ended June (Q1 FY22). It had posted a net loss of Rs 2,844.3 crore in the corresponding quarter last year (Q1 FY21). The airlines’ revenue from operations jumped 292% YoY to Rs 3,006.9 crore in Q1 FY22. Its total expenses rose 59% YoY to Rs 6,344 crore during the same period. 

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Glenmark Life Sciences IPO subscribed 2.78 times on first day of bidding

The Rs 1,514.6 crore initial public offering (IPO) of Glenmark Life Sciences Ltd was subscribed 2.78 times on the first day of bidding. Retail investors have subscribed 5.17 times against their reserved portion. The portion reserved for Non Institutional investors (NIIs) was subscribed 86%. To learn more about the IPO, click here.

UCO Bank Q1 Results: Net profit jumps over 4-fold to Rs 102 crore

UCO Bank reported a 374.5% YoY jump in consolidated net profit to Rs 101.8 crore for the quarter ended June (Q1 FY22). Net profit has increased by 27% when compared to the previous quarter. Its net interest income (NII) fell 2.5% YoY to Rs 3,569.57 crore during the same period. The gross non-performing assets (GNPA) ratio fell to 9.37% in Q1 FY22, compared to 14.38% in Q1 FY21.

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IRB Infra completes Rs 381.63 crore fundraise in IRB InvIT

IRB Infrastructure Developers Ltd has completed total fundraising of Rs 381.63 crore, along with an investment of Rs 194.63 crore, in IRB Infrastructure Investment Trust. The InvIT is jointly owned by IRB Infra and Singapore-based GIC Affiliates with 51% and 49% shareholding, respectively. The funds raised will be utilised towards the capital requirements for under-construction projects.

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Ramco Cements Q1 Results: Net profit rises 46% YoY to Rs 171 crore 

The Ramco Cements Ltd reported a 46.32% YoY jump in consolidated net profit to Rs 1,016 crore for the quarter ended June (Q1 FY22). Net profit has declined by 20.6% when compared to the previous quarter. Its revenue from operations rose 17.75% YoY to Rs 1,205.08 crore during the same period. Chennai-based Ramco Cements is a leading manufacturer of cement, mix concrete and dry mortar products.

Torrent Pharma Q1 Results: Net profit rises 3% YoY to Rs 330 crore

Torrent Pharmaceuticals Ltd reported a 2.8% YoY increase in consolidated net profit to Rs 330 crore for the quarter ended June (Q1 FY22). Net profit has increased by 1.85% when compared to the previous quarter. Its total income rose 5.53% YoY (or 10.02% QoQ) to Rs 2,174 crore during the same period. The revenue from its India operations grew 18% YoY to Rs 1,093 crore in Q1.

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Market News Top 10 News

Kalyan Jewellers Reports 54% YoY Rise in Net Profit in Q4 – Top Indian Market News

Kalyan Jewellers Q4 Results: Net profit rises 54% YoY to Rs 74 crore

Kalyan Jewellers reported a 54% YoY increase in consolidated net profit to Rs 73.9 crore for the quarter ended March (Q4). Its revenue from operations rose 42.78% YoY to Rs 3,050.60 crore during the same period. For the financial year ended March 31, 2021 (FY21), the company posted a net loss of Rs 6.07 crore. This is compared to a net profit of Rs 142,27 crore in FY20. Kalyan Jewellers has announced plans to open 21 showrooms in India in the current financial year (FY22).

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Indian economy not as hard hit as first wave, but uncertainties remain: RBI

The Reserve Bank of India (RBI) said that India’s economy has not moderated to the extent it did during the first wave of the Covid-19 pandemic, but uncertainties can act as a deterrent in the short term. In its annual report, RBI said India’s growth prospects now essentially depend on how fast the country can contain the second wave of infections. The central bank has also expressed concerns over the ‘bubble’ in the Indian equity markets and has hinted that high valuations in the market are far from ground realities.

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Cadila Healthcare Q4 Results: Net profit rises 73% YoY to Rs 679 crore

Cadila Healthcare reported a 73.25% YoY increase in consolidated net profit to Rs 679 crore for the quarter ended March (Q4). Net profit has increased by 28.7% when compared to the previous quarter. Its total revenue from operations rose 2.52% YoY to Rs 3,846.70 crore during the same period. For the financial year ended March 31, 2021 (FY21), net profit rose 81.34% YoY to Rs 2,133.6 crore. The pharma company’s board has recommended a final dividend of Rs 3.5 per share. 

The company has announced plans to seek emergency use approval (EUA) for its Covid-19 vaccine, ZyCov-D, from the Drugs Controller General of India (DCGI) within the next two weeks.

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Lupin receives $50 million from Boehringer Ingelheim for achievement of key milestones

Lupin Limited has received a payment of $50 million (~Rs 363.5 crore) from Germany-based Boehringer Ingelheim for the achievement of ‘key milestones’ for its novel MEK inhibitor compound. The MEK inhibitor compound is under development by Boehringer Ingelheim as potential targeted therapy for patients with difficult-to-treat cancers. ‘Key milestones’ can be referred to as various successful steps on the way to a drug getting regulatory approval.

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Strides Pharma Q4 Results: Net profit at Rs 46 crore

Strides Pharma Science reported a consolidated net profit of Rs 46.09 crore for the quarter ended March (Q4 FY21). It had posted a net loss of Rs 203.93 crore in the corresponding period last year (Q4 FY20). Total revenue from operations rose 46.85% YoY to Rs 908.5 crore in Q4 FY21. The pharma company’s board has approved a final dividend of Rs 2.5 per share.

In a separate filing, Strides Pharma said it has partnered with Taiwan-based TLC to launch Liposomal Amphotericin B in India. The drug is used for the treatment of mucormycosis or Black Fungus.

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Dixon Tech Q4 Results: Net profit rises 60% YoY to Rs 44.3 crore

Dixon Technologies reported a 60% YoY increase in consolidated net profit to Rs 44.3 crore for the quarter ended March (Q4). Net profit has declined by 28% when compared to the previous quarter. Its total revenue from operations jumped 146% YoY to Rs 2,109.7 crore during the same period. Dixon Tech’s consumer electronics division posted a three-fold increase in revenues to Rs 1,178.6 crore in Q4. The company’s board has approved a final dividend of Rs 1 per share. 

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Paytm targets $3 billion IPO this year: Report

According to a report from Bloomberg, digital payments provider Paytm is aiming to raise $3 billion (~Rs 21,800 crore) via an initial public offering (IPO) late this year. This would be India’s biggest-ever IPO. The company, formally called One97 Communications Ltd, plans to list in India around November. It is targeting a valuation of around $25 billion to $30 billion. Paytm is backed by Japan’s SoftBank Group, Warren Buffett’s Berkshire Hathaway Inc, and China-based Ant Financial.

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IRB Infra Q4 Results: Net profit declines 36.85% YoY to Rs 97.46 crore

IRB Infrastructure Developers Ltd reported a 36.85% YoY decline in consolidated net profit to Rs 97.46 crore for the quarter ended March (Q4). Net profit has increased by 40.2% when compared to the previous quarter. Its revenue from operations rose 1.35% YoY to Rs 1,605.85 crore during the same period. For the financial year ended March 31, 2021 (FY21), net profit has declined 83.75% YoY to Rs 117.15 crore.  

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Sun Pharma Q4 Results: Net profit jumps 123% YoY to Rs 894 crore

Sun Pharmaceutical Industries Ltd reported a 123.6% YoY increase in consolidated net profit to Rs 894 crore for the quarter ended March (Q4). Net profit has declined by 52% when compared to the previous quarter. Its revenue from operations rose 4% YoY to Rs 8,522 crore during the same period. For the financial year ended March 31, 2021 (FY21), net profit has declined by 22.8% YoY to Rs 2,903.82 crore. The pharma company’s board has declared a final dividend of Rs 2 per share.

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Liquor sales rise 6% in Q4; declines by 12% in FY21

The sales of Indian-made foreign liquor recovered in the January-March quarter (Q4) with a 6% growth, but it declined 12% in FY 2020-21 on an overall basis. States such as Uttarakhand, Himachal Pradesh, and Haryana reported over 40% growth in liquor sales. Maharashtra and Goa reported a 23% and 22% growth, respectively. According to estimates, the liquor industry contributes ~Rs 2 lakh crore to state exchequer through taxes and levies.

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Infibeam Avenues Q4 Results: Net profit at Rs 32 crore

Infibeam Avenues Ltd reported a consolidated net profit of Rs 32 crore for the quarter ended March (Q4 FY21). It had posted a net profit of Rs 24 crore in the corresponding quarter last year (Q4 FY20). The company’s gross revenue rose 42% YoY to Rs 201 crore in Q4 FY21. Its board has recommended a final dividend of Rs 0.05 per share. Infibeam Avenues’ board has also approved a further investment of Rs 1.05 crore in Avenues Payments India Pvt Ltd (RemitGuru). Ahmedabad-based Infibeam offers digital payments, e-commerce software, and internet services. 

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Petrol, diesel prices hiked for 14th time in May

The prices of petrol and diesel were hiked again on Thursday (May 27), touching fresh record highs across the country. In the national capital, the petrol price rose by 24 paise and that of diesel rose 29 paise. Following the latest price revision, petrol in Delhi is now retailing at Rs 93.68 per litre, while diesel is retailing at Rs 84.61 per litre. In Mumbai, petrol price neared Rs 100 per litre-mark and now stands at Rs 99.94 per litre.

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BEL Achieves Record Turnover of Rs 13,500 crore During 2020-21 – Top Indian Market News

BEL achieves record turnover of Rs 13,500 crore during 2020-21

Bharat Electronics Limited (BEL) said it has achieved a record turnover of about Rs 13,500 crore during FY 2020-21, despite challenges posed by the Covid-19 pandemic and high competition. The company’s turnover in the previous financial year stood at Rs 12,608 crore. BEL’s total order book as of April 1, 2021, stood at ~Rs 53,000 crore. The state-owned company also achieved export sales of around $50 million (~Rs 366 crore) during 2020-21.

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Automobile companies register strong sales growth in March

Major automobile companies reported healthy sales growth during March 2021. Maruti Suzuki posted a 1.15% increase in total sales to 1.67 lakh units in March, compared to 1.64 units sold in February. This was led by strong sales of utility vehicles, light commercial vehicles (LCVs), and vans. Tata Motor’s overall domestic sales rose 14% in March to 66,609 units from 58,473 units sold in February. Escort Ltd’s agricultural machinery segment sold 12,337 tractors in March, the highest-ever recorded in the month. M&M’s passenger vehicle sales increased by 8% month-on-month.

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IGL signs long-term pact with Delhi Transport Corp to supply CNG

Indraprastha Gas Limited (IGL) has signed a long-term agreement to supply compressed natural gas (CNG) to Delhi Transport Corporation (DTC). The gas supply agreement is valid till December 2030. DTC is the largest CNG-powered bus service operator in the world with a fleet size of 3,762 buses. It is in the process of procuring 1,000 new CNG buses, which would soon be plying on the roads of Delhi.

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JSW Steel completes acquisition of Welspun’s plates, coil mill business

JSW Steel Limited has completed the acquisition of Welspun Corp’s high-grade steel and coil business. Laptev Finance Pvt Ltd, a subsidiary of JSW Group, will first acquire Welspun’s Plates and Coil Mill division for Rs 848.5 crore— subject to closing adjustments towards net working capital. The subsidiary will transfer all rights and obligations related to the deal to JSW Steel for a consideration of Rs 1 crore.

In other news, JSW Steel has commenced production of hot-rolled plates at its Dolvi Works plant in Maharashtra. The company is in the process of increasing the plant’s capacity from 5 million tonnes per annum (MTPA) to 10 MTPA.

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RIL-BP seeks bids for sale of additional gas from KG-D6 basin

Reliance Industries Ltd (RIL) and its partner, BP, have sought bids from companies to sell the additional gas produced from the KG-D6 basin off the east coast of India. RIL and BP Exploration Alpha Ltd are currently producing and developing deepwater gas fields in the KG-D6 block under a production sharing contract with the Indian government. The consortium expects additional gas availability for sale at Kakinada, Andhra Pradesh from the last week of April or early May.

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Wipro to acquire Australia-based Ampion for $117 million

Wipro Limited has signed an agreement to acquire Ampion, an Australia-based provider of cybersecurity, DevOps, and quality engineering services. The cost of the acquisition is $117 million (~Rs 855 crore). The IT services major said the acquisition of Ampion strengthens its commitment towards clients and stakeholders in Australia and New Zealand. The deal is expected to close in the quarter ending June 30, 2021 (Q1).

In other news, Wipro Ltd has completed a strategic digital and IT partnership deal with German wholesaler Metro AG. Wipro has acquired Metro-Nom GMBH and Metro System Romania for Rs 450 crore. 

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IRB Infra receives LoA for road project in Himachal Pradesh

IRB Infrastructure Developers has received a Letter of Award (LoA) from the National Highways Authority of India (NHAI) for a road project in Himachal Pradesh. The project consists of four-laning the Pathankot-Mandi section of NH-20 in Himachal Pradesh on Hybrid Annuity Mode (HAM). The cost of the project is Rs 828 crore. With this, IRB Infra’s order book stands at Rs 14,509 crore.

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Tata Consumer divests stake in Empirical Group, Southern Tea

Tata Consumer Products Ltd (TCPL) said its step-down subsidiaries in the US are divesting their entire stakes in Empirical Group LLC and Southern Tea LLC to their joint venture (JV) partner Harris Tea Company. This move will help TCPL focus on its core branded business in the overseas markets. It will also help simplify and streamline the company’s operations to enhance business effectiveness and profitability.

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Reliance Infra sells Santacruz HQ to Yes Bank for Rs 1,200 crore

Reliance Infrastructure has sold its commercial property in Santacruz, Mumbai to its lender Yes Bank for Rs 1,200 crore. The entire proceeds from the sale of Reliance Centre will be utilised to repay the debt of Yes Bank. With this, Reliance Infrastructure has closed three major transactions in the last 90 days, including the sale of a road asset— Delhi-Agra toll road, transmission asset— Parbat Koldfam Transmission Company Ltd, and sale of Reliance Centre, Santacruz.

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Mastercard to invest $100 million in Airtel Africa’s mobile money unit

Bharti Airtel’s African arm, Airtel Africa plc, has signed a deal to sell a 3.75% stake in its mobile money operations to Mastercard Inc. The global payment processor will invest $100 million (~Rs 733 crore) in Airtel Mobile Commerce BV (AMC BV)— a wholly-owned subsidiary of Airtel Africa. AMC BV is the holding company for several of Airtel Africa’s mobile money operations. It intends to own and operate the mobile money businesses across all of Airtel Africa’s fourteen operating countries.

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Govt Approves Rs 10,900 crore PLI Scheme for Food Processing Sector – Top Indian Market News

Govt approves Rs 10,900 crore PLI scheme for food processing sector

The Union Cabinet has approved the extension of a production-linked incentive (PLI) scheme for the food processing sector. An outlay of Rs 10,900 crore has been approved as incentives for domestic manufacturing in the sector. This PLI scheme will help create 2.5 lakh jobs by 2026-27, boost exports, and facilitate the expansion of India’s food processing capacity to generate processed food output worth Rs 33,496 crore. The incentives under the PLI scheme would be paid for six years ending 2026-27.

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Kalpataru Power bags new orders worth Rs 625 crore

Kalpataru Power Transmission Ltd (KTPL) has secured new orders worth Rs 625 crore in the domestic and overseas markets. The company’s power transmission business has won orders from Africa and another order for railway electrification in India. KTPL’s international subsidiary has also received new power transmission projects in Europe. With these new orders, KTPL’s overall order book for FY 2020-21 has exceeded Rs 16,000 crore at the consolidated level.

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India’s core sector output contracts 4.6% in February

The output of eight core infrastructure sectors contracted 4.6% in February 2021. Coal production declined by 4.4% last month, while petroleum refinery production declined by 10.9%. Natural gas and crude oil production declined by 1% and 3.2%, respectively. Cement production fell by 5.5%. This signifies India’s uncertain path to recovery amidst the second wave of Covid-19 infections. The data was released by the Ministry of Commerce and Industry.

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IRB Infra Developers secures two highway projects

IRB Infrastructure Developers has won a highway project in West Bengal worth Rs 2,421 crore, which involves six-laning of the Dankuni-Palsit section of NH-19. The company has also secured a Hybrid Annuity Mode (HAM) project worth Rs 828 crore in Himachal Pradesh for four-laning of the Pathankot-Mandi section of NH-20. With these two projects, IRB Infra closes FY 2020-21 with a total order book of Rs 5,004 crore

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Piramal Pharma to acquire 100% stake in Hemmo Pharma for Rs 775 crore

Piramal Pharma Solutions (PPS) will acquire a 100% stake in Hemmo Pharmaceuticals Pvt Ltd for Rs 775 crore. PPS is the contract development and manufacturing organization of Piramal Pharma Ltd. Through this acquisition, PPS will gain access to the growing peptide active pharmaceutical ingredients (APIs) market. With over 38 years of experience, Hemmo Pharma is one of the few pure-play synthetic peptide API manufacturers in the global marketplace.

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SpiceJet partners with Avenue Capital to acquire 50 new aircraft

SpiceJet Limited has signed a Memorandum of Understanding (MoU) with New York-based Avenue Capital Group for financing, acquisition, and sale & lease-back of up to 50 new planes. The MoU sets out the next steps and conditions upon which Avenue Capital will assist with placing SpiceJet’s new aircraft portfolio. SpiceJet has identified the new planes to be ordered as a unique opportunity for investment.

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KNR Construction secures LoA for road project in Kerala

KNR Constructions Ltd has received a Letter of Acceptance (LoA) from the National Highways Authority of India (NHAI) for a road project in Kerala. The project consists of six-laning of the Ramanattukara Junction to Valnechery bypass section of NH-66 on a Hybrid Annuity Mode (HAM). The project bid cost is Rs 2,367 crore, and the company’s bid price is Rs 2,116 crore.

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M&M’s Japanese subsidiary collaborates with Kubota

The Japanese subsidiary of Mahindra & Mahindra (M&M), Mitsubishi Mahindra Agricultural Machinery, and Kubota Co. have entered into a business collaboration arrangement. The partnership will focus on expanding mutual OEM (original equipment manufacturing) supply arrangements, joint utilisation of Internet of Things (IoT), and other sophisticated technology solutions. Both companies will explore opportunities in product development for the Japanese market.

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Bharti Airtel receives CERT-IN empanelment to offer cybersecurity services to Union, State govt

Bharti Airtel Limited has received the CERT-IN empanelment to offer its cybersecurity solutions to Union and State governments, as well as Public Sector entities. The Indian Computer Emergency Response Team (CERT-IN) is the nodal agency within the Ministry of Electronics and IT, which deals with cybersecurity threats and works to strengthen the defense of the Indian internet domain. As part of Airtel Secure, Bharti Airtel has set up a state-of-the-art Security Intelligence Centre with access to advanced technology and AI and ML tools to track and mitigate potential online threats.

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Welspun One Logistics Parks launches integrated online platform for landowners, brokers

Welspun One Logistics Parks (WOLP) has launched a first-of-its-kind integrated online platform, “Partner Portal”, for landowners and brokers. The platform is aimed at digitisation of the land buying and leasing process in the industrial real estate sector. The company said it has already seen active participation from several users through the pilot launch phase. WOLP is an integrated funding, development, and asset management platform backed by the Welspun Group.

Read more here.

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Editorial

Highway Infra Construction Firms: An Analysis

As we know, the infrastructure sector has received a significant boost through the provisions of the Union Budget 2021-22. The Finance Ministry has allocated a whopping Rs 1.18 lakh crore towards the Ministry of Road Transport and Highways. This fund would be utilised for the launch of mega national highway projects across the states of Tamil Nadu, West Bengal, Assam, and Kerala. This would strengthen the existing transportation networks in India and ensure more connectivity.

This is clearly great news for large infrastructure companies that constantly receive contracts from the National Highways Authority of India (NHAI). Over the years, these firms have built and maintained some of the best roads and highways in our country. Let us take a closer look at some of the prominent companies that excel in the construction of highways in India. 

Larsen & Toubro

Larsen & Toubro (L&T) Limited is engaged in engineering, construction, and manufacturing operations worldwide. The company’s infrastructure segment constructs buildings and factories, transportation infrastructure, heavy civil infrastructure, power transmission and distribution, etc. L&T Infrastructure Development Projects Limited (L&T IDPL) is a pioneer of the Public-Private-Partnership (PPP) model of development in India. IDPL’s portfolio of road projects includes some of the most economically significant and high-traffic corridors connecting key industrial cities and ports. The company’s total portfolio consists of 17 projects, comprising 7,800 lane kilometers of roads and highways. 

L&T has invested heavily in research and development (R&D) activities to improve efficiency and accuracy. Thus, they have been able to complete and deliver projects within the stipulated time.

Financial Performance:

L&T’s revenues and profits have shown consistent growth over the years. This is primarily due to the large number of contracts they receive from Central and state government agencies. The company reported a 4.8% year-on-year (YoY) increase in net profit to Rs 2,446.7 crore for the quarter ended December (Q3). L&T’s revenue from operations declined 1.78% YoY to Rs 35,596 crore during the same period. The company’s order inflow in Q3 was the highest-ever in any quarter. It received fresh orders worth a new record of Rs 73,233 crore. 

Over the last 5 years, L&T’s revenue has grown at a yearly rate of 9.71%, whereas the industry average stood at 5.44%. The company has continued to show its dominance in the infrastructure sector by securing a large number of “significant contracts” over the past year. It has been able to obtain a market share of 50.04%. L&T offers very attractive dividends as well.

The share price of L&T has surged by more than 82% since April 2020.

Dilip Buildcon

Dilip Buildcon Limited (DBL) is one of the leading infrastructure companies that is engaged in the construction of roads, bridges, dams, and commercial & residential buildings. It operates in two segments- EPC Projects and Toll Operations. The company undertakes state and national highway projects, city road projects, and bridge operation and maintenance projects. The company also develops irrigation projects, urban development projects, dams, canals, metro rail viaducts, and much more. It is involved in the maintenance of road infrastructure facilities and toll operations. DBL has established its presence in more than 19 states.

Dilip Buildcon’s revenue has grown at a yearly rate of 28.85% over the past 5 years, whereas the industry average stood at 5.44%.  The company posted a 107% YoY jump in consolidated net profit to Rs 181.91 crore for the quarter ended December (Q3). Revenue had increased by 7.1% YoY to  Rs 2,746.19 crore in Q3. These are strong figures indeed. It has been able to secure a market share of 3.31%.

Since April 2020, the shares of Dilip Buildcon have rallied by more than 187%.

IRB Infrastructure Developers

IRB Infrastructure Developers Limited is engaged in the construction, development, and maintenance of roads and highways on a build-operate-transfer (BOT) basis. The company operates in two segments- Toll Operate & Transfer Projects and Construction. IRB is also involved in real estate development, generation and sale of electricity through windmills, and airport infrastructure activities. The company has 21 projects with 12,317 lane kilometers of roads and highways. 

Recently, the company emerged as the successful bidder for the construction of eight lanes of the Gandeva-Ena stretch of the upcoming Vadodara-Mumbai Expressway in Gujarat. The length of the stretch is 27.5 kilometers. The cost of the project is Rs.1,755 crore.

Financial Performance:

IRB Infra Developers have shown a consistent increase in profits and revenues over the years. The company reported a 56% YoY decline in net profit to Rs 69.48 crore for the quarter ended December (Q3). Its total revenue fell to Rs 1,594.80 crore in Q3, compared to Rs 1,790 crore during the July-September quarter (Q2). However, the company said its construction segment has seen a robust recovery and continues to strengthen further.

Over the past 5 years, the revenue of IRB Infrastructure Developers has grown at a yearly rate of 12.39%, whereas the industry average stood at 5.44%. The company has been able to obtain a market share of 2.39%. 

The stock price of IRB Infrastructure Developers has surged by 116% since April 2020.

PNC Infratech

PNC Infratech Limited is a construction, development, and management company based in Agra. The company undertakes various infrastructure projects, including highways, bridges, flyovers, power transmission lines, airport runways and pavements, and track construction. It also provides end-to-end infrastructure implementation solutions such as engineering, procurement, and construction services (EPC) on a fixed-sum turnkey basis. 

Recently, the company’s subsidiary -PNC Unnao Highways- received an order worth Rs 1,602 crore from the NHAI. The project consists of four-laning of the Unnao-Lalganj section of NH 232-A in Uttar Pradesh. Two of its other subsidiaries have won orders aggregating to ~Rs 3,500 crore in Uttar Pradesh.

Financial Performance:

The revenues and profits of PNC Infratech have seen a sharp uptrend over the years. The company reported a 163% YoY jump in consolidated net profit to Rs 176.14 crore for the quarter ended December (Q3). Its revenue from operations increased by 13.78% YoY to Rs 1,582.02 crore during the same period. The company recorded substantial growth in both bottom-line and top-line segments in Q3.

Over the last 5 years, PNC Infratech’s revenue has grown at a yearly rate of 25.3%, whereas the industry average stood at 5.44%. The company has been able to secure a market share of 1.95%.

The shares of PNC Infratech have surged by 154% since April 2020.

KNR Constructions Limited

KNR Constructions Limited operates as an infrastructure development company in India. It provides engineering, procurement, and construction (EPC) services for roads and highways, irrigation, and urban water infrastructure management sectors. It undertakes various infrastructure projects, such as expressways, national highways, flyovers, bridges and viaducts, irrigation projects, and much more.

Several financial analysts suggest that KNR Constructions’ strong balance sheet gives it a key competitive advantage over its peers in bidding for newer projects. It has time and again completed and executed projects ahead of schedule. Over the last 5 years, KNR Constructions’ revenue has grown at a yearly rate of 21.76%, whereas the industry average stood at 5.44%. However, the company has been only able to obtain a market share of 0.85%. 

The share price of KNR Constructions has surged by 109% since April 2020.

Conclusion

We have only mentioned five major companies that could benefit from the new highway projects announced by the Finance Minister. Other listed firms involved in the construction and maintenance of highways include HG Infra Engineering, Bharat Road Network, Ashoka Buildcon, Sadbhav Engineering, MEP Infrastructure, etc. 

The development of a strong transportation network plays an important role in the overall economic growth of our country. These companies have time and again contributed their expertise and resources to the construction of our national highways and city roads. They are likely to receive more orders from the NHAI in the months to come. The National Bank for Financing Infrastructure and a Development Finance Institution (DFI) will be set up in our country to provide an extra and essential boost to the sector. Due to positive sentiments surrounding their financial results, fresh orders from NHAI, and provisions of the Budget, we could see a further rally in the shares of these infrastructure firms.