Tag: jindal steel and power

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India’s Manufacturing PMI Slows to 5-Month Low in Sept – Top Indian Market Updates

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

India’s manufacturing PMI slows to a 5-month low in Sept

India’s manufacturing sector slowed to a 5-month low in September 2023. The S&P Global India Manufacturing Purchasing Managers’ Index (PMI) stood at 57.5 in September, compared to 58.6 in August. The contraction in manufacturing activity was due to a soft increase in new orders, which slowed production.

PMI is a month-on-month calculation, and a value above 50 represents an expansion compared to the previous month.

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IHC raises its stake in Adani Enterprises to above 5%

International Holding Co (IHC) has increased its total stake in Adani Enterprises (AEL) to above 5%. The development comes days after it decided to offload stakes in two other group companies as part of its portfolio restructuring/rejig. Although IHC hasn’t disclosed the amount invested in the company, a 5% stake in AEL as of Tuesday is valued at ₹13,600 crore.

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Bajaj Finserv’s insurance arm receives GST Demand Notice

Bajaj Allianz General Insurance Company Ltd (BAGIC) received a show cause cum demand notice from the Directorate General of Goods and Services Tax (GST) Intelligence. The authority alleged a tax demand of ₹1010.05 crore. BAGIC is Bajaj Finserv’s insurance subsidiary. As per the notice, the company failed to pay GST between July 2017 and March 2022.

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PFC sanctions ₹15,000 crore loans, forays into funding of airport projects

Power Finance Corporation (PFC) has sanctioned ₹15,000 crore loans for various projects. Furthermore, it has entered into funding airport projects. As part of its diversification strategy and funding for infrastructure projects, PFC sanctioned its first financing for a greenfield airport project in Andhra Pradesh. PFC’s Board of Directors also reviewed strategic agendas pertaining to the company’s business diversification strategy.

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India’s coal production rises 16% YoY in September

India’s coal output increased 15.81% YoY to 67.21 million tonnes (MT) in September, compared to 58.04 MT in September FY22-23. The cumulative coal production up to September increased to 428.25 MT in the current financial year, over 382.16 MT in the year-ago period. Coal India Ltd’s (CIL) output increased to 51.44 MT in September as against 45.67 MT a year ago. CIL accounts for over 80% of domestic coal production.

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JSPL starts coal production at Chhattisgarh’s Gare Palma mine

Jindal Steel & Power Ltd (JSPL) has started coal production at its Gare Palma IV/6 mine in Chhattisgarh. The mine will support the proposed expansion of its Raigarh integrated steel plant from the existing 3.6 MTPA to a capacity of 9.6 million tonnes per annum (MTPA).

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Vedanta to complete steel asset sale this fiscal year

Vedanta Ltd will complete the divestment of its steel assets by March 2024. The company started the review of its steel and steel raw material business in June. Vedanta is also planning to demerge its business unit into independent companies. Its parent company, Vedanta Resources, has been struggling to raise funds due to rating downgrades and concerns about meeting its debt obligations.

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NCC secures 3 orders worth ₹4,206 crore

NCC Ltd secured three orders worth ₹4,205.94 crore in September from both Central and State government agencies. These orders are to different divisions within the company: ₹819.20 crore for the water division, ₹173.19 crore for the electrical division, and ₹3,213.55 crore for the transportation division. 

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Strides Pharma gets USFDA approval for Ethyl capsules

Strides Pharma Global Pte. Ltd has received approval from the US Food & Drug Administration (USFDA) for its generic version of Icosapent Ethyl capsules. The capsules are used to control triglyceride levels in the blood and is bioequivalent and therapeutically equivalent to the reference listed drug Vascepa of Amarin. As per IQVIA, the product has a market size of around $1.3 billion. Strides Pharma Global Pte. Ltd is a wholly-owned Singaporean subsidiary of Strides Pharma. 

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TRSL secures ₹857 crore order from Gujarat Metro Rail

Titagarh Rail Systems Ltd (TRSL) has secured a contract worth ₹857 crore with the Gujarat Metro Rail Corporation Ltd (GMRC) to manufacture 72 standard gauge cars. These metro cars are destined for the first phase of the Surat Metro Rail Project. The contract for designing, manufacturing, supplying, testing, commissioning, and training for these metro cars. The execution of this contract is scheduled to commence 76 weeks after its signing. 

Read more here.

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Adani Group’s ₹493Cr Open Offer for NDTV to Start Tomorrow – Top Indian Market Updates

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

Adani Group’s ₹493 crore open offer for NDTV to start tomorrow

Adani Group’s open offer to acquire an additional 26% shareholding in the media company New Delhi Television (NDTV) from the market will start tomorrow. The offer will close on December 5. If fully subscribed, the open offer will amount to ₹492.81 crore at ₹294 per share. To learn more about Adani’s takeover of NDTV, click here.

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RBI allows HDFC Bank, Canara Bank to open Vostro account for INR trade with Russia

The Reserve Bank of India (RBI) has allowed HDFC Bank and Canara Bank to open a special “vostro account” for trade in Indian Rupees with Russia. Vostro accounts are accounts held by a bank on behalf of another (often a foreign bank), and this forms a key part of correspondent banking. Payments can be settled in Rupee for India-Russia trade, enabling cross-border transactions in the Indian currency.

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Jindal Steel wins bid to build 300 MW coal power plant in Botswana

Botswana has selected Jindal Steel & Power Ltd (JSPL) to build a coal-fired power plant. The contract is for the design, construction, operation, and maintenance of a 300 megawatts  (MW) net greenfield coal-fired power plant. JSPL will finance the construction of the plant and recoup its investments from selling electricity to the Botswana Power Corporation (BPC) under terms to be negotiated between the two parties.

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Aurobindo Pharma aims to complete ₹2,000 crore plant in AP by March 2024

Aurobindo Pharma Ltd aims to complete its ₹2,000 crore Penicillin G (Pen G) plant in Andhra Pradesh by March 2024, even as the trial of the initial batches will take place starting October 2023 onwards. The production capacity of the plant will be around 15,000 tonnes annually. The plant has been approved under the government’s PLI scheme for Key Starting Materials/Drug Intermediates and Active Pharmaceutical Ingredients (APIs).

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NCLT clears Jio’s acquisition of Reliance Infratel

The Mumbai bench of the National Company Law Tribunal (NCLT) has approved Reliance Property & Projects Management Services Ltd’s (RPPMSL) acquisition of Reliance Infratel Ltd (RITL). RPPMSL is a subsidiary of Reliance Jio that looks into the telco’s tower business. Jio has to deposit ₹3,500 crore in an SBI escrow account to complete the acquisition of RITL.

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Lighthouse India to sell Nykaa shares worth ₹335 crore

Investment firm Lighthouse India will sell shares worth ₹335 crore of Nykaa via a block deal tomorrow at a price band of ₹180-183.50 per share. After the lock-in period expired earlier this month, several pre-IPO investors have been liquidating shares held by them. Last week, investor Mala Gopal Gaonkar sold 5.75 crore shares of Nykaa at an average price of ₹175.48 in a deal worth ₹1,009 crore.

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Arvind forms joint venture with PurFi Global to reduce textile waste

Textiles manufacturer Arvind Ltd and US-based PurFi Global LLC will set up a joint venture (JV) to reduce the amount of textile waste going to landfills. The JV plans to set up its first fibre rejuvenation facility near one of Arvind’s manufacturing facilities in India. PurFi’s technology creates a solution that transforms textile waste into virgin-quality fibres.

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Ashok Leyland eyeing to launch Dost in Middle East, African markets

Ashok Leyland Ltd is testing its highly popular light commercial vehicle (LCV) ‘Dost’ with left-hand drive (LHD) option as it plans to serve the Middle East and African markets. The company currently sells a range of LCVs under the ‘Dost’ brand with right-hand drive option both in domestic and overseas. In October 2022, sales from the LCVs business grew by 18% YoY to 5,671 units.

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JSPL to Establish Greenest Steel Plant in Odisha – Top Indian Market News

JSPL plans to establish largest, greenest steel plant in Odisha

Jindal Steel & Power Ltd (JSPL) has announced plans to develop its Odisha plant into the largest and greenest facility in the world. They have secured sufficient reserves of coal to enable the mega steel company to enhance its capacity for green steel making. JSPL has won the Utkal B1 and B2 coal block in the Angul-Talcher belt in Odisha.

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Auto sales data for March 2022: Highlights  

Maruti Suzuki India posted a 2% year-on-year (YoY) growth in total sales to 1,70,395 units in March 2022. Sales of its compact vehicle segment fell 8.46% YoY to 97,805 units. Exports more than doubled to 26,496 units.

Tata Motors Ltd registered a 30% YoY increase in total domestic sales to 86,718 units in March. The automaker’s commercial vehicle sales rose 16% YoY to 47,050 units. Overall passenger vehicle wholesales rose 43% YoY to 42,293 units. Its annual electric vehicle (EV) sales stood at 19,106 units in FY22, a growth of 353% YoY.   

Mahindra & Mahindra’s auto segment posted total sales of 54,643 units in March, an increase of 35% YoY. M&M’s farm equipment segment posted a 4% YoY fall in sales to 29,763 units. 

TVS Motor Company posted a 4.55% YoY decline in total sales to 3,07,954 units in March.  

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PVR discontinues operations of 23 screens after expiry of lease with Cineline India

PVR Limited has discontinued operations of 23 screens across nine properties after the expiry of their lease with Cineline India. The multiplex operator’s screen count has come down to 848 at 172 properties in 73 cities. In 2012, Cineline had sold its multiplex business along with Cinemax Brand to PVR under a non-compete clause that has already ended.

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NTPC begins commercial operation of 22 MW floating solar capacity in Kerala

NTPC Limited announced the commercial operation of 22 megawatts (MW) of floating solar capacity in Kayamkulam, Kerala. The capacity is part of its 92 MW Kayamkulam floating solar PV project. The standalone installed and commercial capacity of NTPC has now increased to 54,516.68 MW. NTPC group’s installed and commercial capacity have increased to 68,631.68 MW and 67,971.68 MW, respectively.

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NCLT approves transfer of Raymond Apparel business to parent firm

The National Company Law Tribunal (NCLT) has approved the scheme of transfer of Raymond Apparel Ltd’s (RAL) business to Raymond Ltd. In September 2021, Raymond’s board had approved demerging the B2C business (including apparels) of RAL on a going concern basis to merge with the company itself. This move brings all major apparel brands, including Park Avenue, Colorplus, and Parx, into Raymond Ltd.

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HAL records revenue of over Rs 24,000 crore in FY22

Hindustan Aeronautics Ltd (HAL) has recorded its highest-ever revenue of over Rs 24,000 crore (provisional and unaudited) for the financial year ended March 31, 2022. This is a 6% growth over the previous financial year. In other news, HAL secured a contract worth Rs 3,887 crore for the production of 15 Light Combat Helicopters (LCH) for the Indian Army and Air Force. The state-owned company has also bagged infrastructure sanctions worth Rs 377 crore.

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Lupin gets 13 observations from USFDA for its New Jersey plant

Lupin Limited’s facility in New Jersey has received 13 observations from the US Food & Drug Administration (USFDA). The facility accounts for less than 5% of Lupin’s global turnover. However, the observations do not imply any restriction on supplies. The drugmaker said it is confident in addressing all issues with the regulator.

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NCLT approves amalgamation of CGPL with Tata Power

Tata Power Company Ltd (TPCL) has received approval from the National Company Law Tribunal (NCLT) for the merger of Coastal Gujarat Power Ltd (CGPL) with itself. CGPL is a wholly-owned subsidiary of TCPL. It operates the 4,000 MW Ultra Mega Power Project (UMPP) in Mundra, Gujarat.

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HFCL deploys OFC in all gram panchayats of Jharkhand under BharatNet

HFCL Ltd has deployed optical fiber cable (OFC) in 1,789-gram panchayats of Jharkhand under the government’s BharatNet project. The company had also completed broadband connectivity by deploying 7,869 kilometers of OFC network connecting 3,209 gram panchayats in Punjab. HFCL is also supplying OFC networks in Maharashtra, Telangana, and Chhattisgarh under the BharatNet project.

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Asian Paints to acquire majority stake in Weatherseal Fenestration and White Teak

Asian Paints Ltd will acquire controlling stakes in Weatherseal Fenestration and Obgenix Software (popularly known by the brand name “White Teak”). The paint company will initially infuse Rs 19 crore in Weatherseal for a 51% stake by subscription to equity share capital. It will acquire a 49% stake in White Teak from promoters for a consideration of ~Rs 180 crore, along with an earn-out of Rs 114 crore, payable after a year.

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BEL achieves record turnover of Rs 15,000 crore in FY22

Bharat Electronics (BEL) has achieved a record turnover of Rs 15,000 crore (provisional & unaudited) during FY22. The figure stood at Rs 13,818 crore in FY21. In fiscal 2021-22, BEL secured orders worth ~Rs 18,000 crore, while its order book as of April 1, 2022, stood at Rs 57,000 crore. The company is all set to increase its global footprint by making all-out efforts to tap new markets.

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SBI Cards Partners With Paytm to Tokenise Cards – Top Indian Market News

SBI Cards partners with Paytm to tokenise cards

SBI Cards & Payment Services Ltd has partnered with One97 Communications to enable cardholders to tokenise their cards on devices and make payments through Paytm. Tokenisation refers to masking the original card number by replacing it with a set of unique characters (termed as tokens) that secure the customer’s card details when a transaction is under process. The card tokenisation facility will be available only on Android NFC (near field communication) devices.

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RBL Bank gets RBI approval to appoint Rajeev Ahuja as interim MD, CEO

The Reserve Bank of India (RBI) has approved the appointment of Rajeev Ahuja as the interim MD and CEO of RBL Bank for three months or till there is a regular appointment. In a sudden turn of events, the board of RBL Bank had sent the then Managing Director and Chief Executive Officer Vishwavir Ahuja on leave last Saturday. It also elevated Rajeev Ahuja as the interim MD and CEO to take care of the day-to-day operations of the bank. To learn more about the events that unfolded at RBL Bank, click here.

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NTPC’s arm to float global tender to set up 3GW RE project by February

NTPC Renewable Energy Ltd (NREL) will float a global engineering procurement and construction tender to set up a 3 gigawatts (GW) renewable energy project with a battery storage system. This project entails an investment of about Rs 15,000 crore. NREL, a wholly-owned subsidiary of NTPC Ltd, currently has a renewable project portfolio of 3,850 GW.

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Kalpataru Power secures order worth Rs 1,560 crore

Kalpataru Power Transmission Ltd (KTPL) has secured new orders worth Rs 1,560 crore from India, Africa, CIS, and South America. The company’s international subsidiary has also secured new power transmission projects in Europe. KTPL provides engineering, procurement, and construction (EPC) services relating to power transmission & distribution, civil construction, railway track laying & electrification in India and internationally.

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Firstsource Solutions acquires American Recovery Services

Firstsource Solutions Ltd (FSL) has entered into an agreement to acquire American Recovery Services, Inc., a legal collections network based in Southern California. The acquisition enhances FSL’s leadership in consumer debt management services by adding legal stage collections capabilities. The cost of the acquisition is $53 million (~Rs 394 crore), including earnouts done through cash consideration. 

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Granules India gets USFDA approval for Amphetamine Mixed Salts tablets

Granules India Ltd has received approval from the US Food & Drug Administration (USFDA) for its Abbreviated New Drug Application (ANDA) for Amphetamine mixed salts tablets. The drug is used to treat attention deficit hyperactivity disorder (ADHD) and narcolepsy (a chronic sleeping disorder). As per IQVIA data, the current annual US market for Amphetamine Mixed Salts immediate release tablets is approximately $335 million (~Rs 2,490 crore). 

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Cars24 partners with Bajaj Finance to provide seamless financing for used car buyers

CARS24 has partnered with Bajaj Finance Ltd to provide used car financing and facilitate a streamlined shopping experience for consumers. This mutually beneficial partnership is expected to increase penetration in the used cars industry. It will also enable consumers to further enjoy CARS24’s hassle-free customer experience with the financial solutions of Bajaj Finance.

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Manappuram Finance raises Rs 250 crore via bonds

Manappuram Finance Ltd has raised Rs 250 crore by issuing bonds, and the amount will be utilised to repay its debt and shore up capital resources. The company’s board has approved the allotment of secured, rated, listed, redeemable, non-convertible debentures for an amount of Rs 250 crore on a private placement basis. The bonds will be listed on BSE and hold an interest rate of 6.95% per annum. It will mature on December 30, 2024.

Nitin Spinners’ board approves capex plan of Rs 950 crore

The Board of Directors of Nitin Spinners Ltd (NSL) has approved a capital expenditure (capex) of Rs 950 crore for an expansion project. The company’s capacity addition is proposed to meet increasing demand, widen its product portfolio, and bring competitive cost advantage by having economies of scale. As part of the expansion plan, NSL will add 1.51 lakh equivalent spindles. The textile manufacturer currently has 3.32 lakh spindles (used for spinning wool and other fibers into thread).

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CCI approves acquisition of 96% stake in JPL by Worldone

The Competition Commission of India (CCI) has approved the acquisition of over 96% stake in Jindal Power Ltd (JPL) by Delhi-based Worldone Pvt Ltd. In July 2021, Jindal Steel & Power Ltd (JSPL) had received a Rs 7,401-crore revised offer from Worldone to acquire a 96.42% stake in Jindal Power Ltd (JPL). Worldone Pvt Ltd is a private company owned by the Promoter Group of JSPL. It manages and holds investments across various listed and unlisted companies.

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Jindal Steel to Start Building Botswana Coal Mine in 2022 – Top Indian Market News

JSPL to start building Botswana coal mine in 2022

Jindal Steel & Power Ltd (JSPL) will start building a coal mine in Botswana’s southeastern Mmamabula coalfields in 2022, aiming to supply the export market and a planned coal power plant. The company aims for the mine to produce 4.5 million tonnes of coal per year. Despite the global shift from coal, Botswana is pushing ahead with developing its estimated 212 billion tonnes of coal resources. 

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Centre repeals 3 farm bills; PM urges protesting farmers to go home

Prime Minister Narendra Modi on Friday announced that the Centre will repeal the three controversial agricultural laws. He has requested protesting farmers to go back to their fields and homes. “The three laws were in the benefit of farmers but we could not convince a section of them despite our best efforts”, said the PM. To learn more about the three contentious bills and why farmers protested against it, click here.

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ABB Power Products rebrands itself as Hitachi Energy India

ABB Power Products & Systems India announced its rebranding as Hitachi Energy India Ltd. The company has reaffirmed its commitment to accelerating the clean energy transition in India. Hitachi Energy (the parent company) views India among its top five markets for expansion. It aims to expand its portfolio to meet the needs of the evolving energy landscape in India and grow faster than the market.

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Biocon and Viatris to distribute Insulin Glargine through Walgreens in the US

Biocon Biologics and Viatris Inc. announced that they would distribute Insulin Glargine injection through the Walgreens Prescription Savings Club in the US. Members will get savings of up to 80% on the cash price of comparable long-acting insulins purchased at Walgreens. The biosimilar product was co-developed by Biocon Biologics (a subsidiary of Biocon Ltd) and US-based Viatris.

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Zydus Cadila gets USFDA approval for Nelarabine injection

Zydus Cadila has received final approval from the US Food & Drug Administration (USFDA) to market Nelarabine Injection in the US with 180 days of marketing exclusivity. The drug is used to treat certain types of leukemia and lymphoma by slowing or stopping the growth of cancer cells. According to IQVIA data, Nelarabine Injection had annual sales of $34.5 million (~Rs 256 crore) in the US for the year ended September 2021.

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HPCL partners with IDFC First Bank for fuel payments using FASTags

Hindustan Petroleum Corporation Ltd (HPCL) and IDFC First Bank have signed an agreement to facilitate fuel payments by motorists at HPCL’s retail outlets using the bank’s FASTags. IDFC First Bank’s FASTags can now be bought, recharged, and replaced by passenger vehicle users at select HPCL retail outlets.

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Zomato may invest $500 million in Grofers to push its quick commerce play: Report

According to a report from Economic Times, Zomato Ltd is in talks to invest as much as $500 million (~Rs 3,715 crore) in grocery delivery service Grofers. The proposed deal marks an extension of its food delivery battle with Swiggy into the ultrafast commerce segment, which is attracting heavy investor capital globally.

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Railway Board issues order to resume serving cooked meals to passengers on trains

The Railway Board has issued an order to resume serving cooked meals to passengers on trains, a service that was discontinued due to Covid-19 restrictions. The board has asked the Indian Railway Catering and Tourism Corporation (IRCTC) to resume the service. Ready-to-eat meals will also continue to be served to passengers.

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ONGC to invest up to Rs 6,000 crore in its petrochemical arm: Report

According to a report from Livemint, Oil and Natural Gas Corporation Ltd (ONGC) is planning to invest Rs 6,000 crore in its petrochemicals unit ONGC Petro additions Ltd (OPaL). The company already holds compulsorily convertible debentures (CCDs) in OPaL that would be converted into equity worth Rs 6,000 crore. Currently, ONGC holds a 49.4% stake in OPaL, GAIL has a 49.2% stake, and Gujarat State Petroleum Corp Ltd holds 1.4%.

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Jindal Steel and Power Reports Highest Ever Quarterly Steel Sales – Top Indian Market News

Jindal Steel and Power Reports Highest Ever Quarterly Steel Sales

Jindal Steel and Power Ltd (JSPL) has recorded the highest ever quarterly steel sales in the July-September quarter (Q2 FY22). JSPL’s seel sales volume climbed 32 percent quarter-on-quarter (QoQ) and 10 percent YoY to hit a record high of 2.13 million tonnes during the quarter. The share of exports to revenue was greater than 40 percent this quarter, against 34 percent in Q1 FY22. 

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India’s Services Sector PMI drops to 55.2, Continues To Remain Strong

IHS Markit India Services PMI fell to 55.2 in September 2021 from 56.7 in August. Domestic demand has improved amidst the easing of Covid-19 restrictions, pushing firms to hire more employees for the first time in nearly a year. PMI or Purchasing Managers’ Index is an economic indicator on the manufacturing or services sector trends constructed from monthly surveys of private companies. If the PMI falls below the 50 level mark, it would signify contraction instead of growth.

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TVS signs MoU With Tata Power On Two Wheeler Charging Ecosystem In India

TVS Motor Company has announced a strategic partnership with Tata Power to develop and amplify the presence of Electric Vehicle Charging Infrastructure (EVCI) across India and deploy solar power technologies at TVS Motor locations. This comes in the light of TVS expanding the presence of its electric bike TVS iQube Electric. The two companies will also explore opportunities to use solar energy to power select TVS Motor locations.

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IRCON-led Consortium Wins Rs 3294 Crore For Mumbai-Ahmedabad Bullet Train Project

The National High-Speed Rail Corporation Limited (NHSRCL) has announced the joint venture by IRCON and Dineshchandra R. Agrawal Infracon has given the winning bid for the design and construction of 18.13 km of the viaduct and high-speed stations at Ahmedabad and Sabarmati for the Mumbai-Ahmedabad High-Speed Rail Corridor.

DoT to reconsider levy of Rs 40,000 Crore Spectrum Charges

In an ongoing legal battle, the Supreme Court has agreed to grant the Directorate of Telecommunications or DoT time till November 17, 2021 to reconsider its appeal on a pending Rs 40,000 crore one-time spectrum charges. The dispute between the Telecom Disputes Appellate Tribunal (TDSAT) and the DoT has been going on for almost a decade. In 2019, the TDSAT ruled that the one-time spectrum charges should be levied prospectively as against DoT, which wanted to set the charges retrospectively.

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IDFC First Bank Deposits Up 20% YoY, CASA Up 55% YoY

IDFC First Bank’s total customer deposits increased by 20.8% to Rs 83,793 crore as on September 30, 2021 as against Rs 69,368 crore a year ago. In the same period, the company’s Current Account-Saving Account Ratio or CASA Ratio went up by 55% YoY to Rs 46,783 crore. The Depositors Concentration for an amount below Rs 5 crore stood at 81.19%

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BSE Subsidiary To Help MSMEs Manage Working Capital, Gets In-Principle Approval From RBI

Bombay Stock Exchange’s subsidiary BSE Technologies (BSE Tech) has received in-principle approval from the Reserve Bank of India for setting up and operating Trade Receivables Discounting System (TReDS) under the Payments and Settlement Systems Act, 2007. The company intends to help MSMEs manage their working capital through Trade Receivables Discounting System (TReDS). RBI approved the TReDS in 2014. BSE Technologies Pvt Ltd. provides broking solutions & exchange solutions to the capital, derivatives, commodities & currency markets, financial services, and it consulting to companies worldwide.

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BLS International Wins Order From Thai Embassy For Visa Services

BLS International Services Limited(NSE:BLS) has announced that it has renewed its contract with the Royal Thai Embassy for providing visa services. The company will now offer visa services from multiples cities and states across the country. Last week, the company had bagged a contract with the Italian Embassy in Russia to provide visa services in the country after which the share price rose ~3%. The company’s share price has appreciated by ~220% since October 2020.

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Cabinet Approves PLI Scheme for Textile Sector – Top Indian Market News

Cabinet approves Rs 10,683 crore PLI scheme for textile sector

The Union Cabinet has approved a Production Linked Incentive (PLI) scheme for textiles for man-made fibre (MMF) apparel, MMF fabrics, and 10 segments or products of technical textiles with a budgetary outlay of Rs 10,683 crore over the next five years. The scheme is expected to boost manufacturing activities, add jobs, and help scale up textile exports. Textile factories based around aspirational districts or Tier-3 & Tier-4 cities will be given priority. This move will benefit states like Gujarat, Uttar Pradesh, Maharashtra, Tamil Nadu, Punjab, Andhra Pradesh, and Telangana. 

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Sun Pharma forays into nutrition bar segment with lunch of Revital NXT

The healthcare division of Sun Pharmaceutical Industries has entered into the nutrition bar segment in India with the launch of Revital NXT. The product is a brand extension of Revital H, a health supplement brand. Revital NXT has been launched in two different variants, Revital Energy NXT and Revital Protein NXT. It contains Ginseng, 16 vitamins and minerals, and triple blend protein. The nutrition bar is currently available on Amazon. The market for nutrition bars in India is growing rapidly due to the increasing focus on fitness and a healthy lifestyle.

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Caplin Point Lab gets USFDA approval for labetalol hydrochloride injection

Capline Steriles, a subsidiary of Caplin Point Laboratories, has received final approval from the US Food and Drug Administration (USFDA) for labetalol hydrochloride injection. The drug is indicated for the control of blood pressure in severe cases of hypertension. According to IQVIA data, labetalol hydrochloride injection had US sales of $6 million (~Rs 44.2 crore) for the 12-months ended June 2021.

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Equity mutual funds record inflows worth Rs 24,392 crore in August

India’s equity mutual funds witnessed net inflows for the sixth straight month, according to data released by the Association of Mutual Funds in India (AMFI). The net equity inflow for August stood at Rs 24,392.2 crore, compared to Rs 20,742.8 crore in July. The inflows pushed assets under management (AUM) of the mutual fund industry to an all-time high of Rs 36.6 lakh crore at the end of August. The industry witnessed an overall net inflow of Rs 32,976 crore across all segments last month, compared to an inflow of Rs 1.14 lakh crore in July.

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JSPL pre-pays $106 million debt of its Australian subsidiary

Jindal Steel & Power Ltd (JSPL) has made a pre-payment of $106 million (~Rs 777.4 crore) to the lenders of its subsidiary Jindal Steel & Power (Australia) Ltd. The pre-payment has helped the company reduce JSPL’s “Australian debt” by approximately 50%. The company is now aiming to clear all its overseas debt in the upcoming quarters.

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Adani Power’s subsidiary declared successful bidder for Gondhkari coal block

Adani Power Maharashtra Ltd (APML) has been declared as the successful bidder for commercial mining of the Gondkhairi coal block in Maharashtra. APML is a wholly-owned subsidiary of Adani Power. It is engaged in the generation and transmission of electricity under long-term power purchase agreements and on merchant basis in India. Adani Power has a power generation capacity of 12,450 megawatts (MW) across the country.

Sansera Engineering IPO to open on Sept 14; price band fixed at Rs 734-744 per share

Sansera Engineering has fixed Rs 734-744 per share as the price band for its upcoming initial public offering (IPO). The public issue will open on September 14 and close on September 16. The IPO consists of a pure offer for sale (OFS) of 1.72 crore shares by its existing shareholders and promoters. On the upper band price, the firm will raise Rs 1,282.66 crore via the IPO. Sansera Engineering is an auto-component manufacturer based in Bengaluru.

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South Indian Bank launches SIB-OneCard credit card

South Indian Bank (SIB), in association with OneCard, has launched the SIB-OneCard credit card. The premium metal card has a unique app-based onboarding process, which is in line with SIB’s vision of digital transformation. The internationally valid credit card on the Visa Signature platform can be controlled through the OneCard App. The SIB–OneCard card comes with features such as lifetime validity, zero joining and annual fees, instant issuance of reward points and easy redemption within the app, etc. 

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RBI removes PCA restrictions on UCO Bank

The Reserve Bank of India (RBI) has lifted the Prompt Corrective Action (PCA) framework on UCO Bank. The performance of UCO Bank was reviewed by RBI’s Board for Financial Supervision. Based on the published results for the year ended March 31, 2021 (FY21), it was noted that the bank is not in breach of the PCA parameters. PCA is a framework under which banks with weak financial metrics are put under watch by the RBI.

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IRDAI Grants Final Approval to Bharti AXA-ICICI Lombard Deal – Top Indian Market News

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IRDAI grants final approval to Bharti AXA-ICICI Lombard deal

ICICI Lombard General Insurance Co. Ltd has received final approval from the Insurance Regulatory and Development Authority of India (IRDAI) for the demerger of the general insurance business of Bharti AXA General Insurance to itself by way of a scheme of arrangement. The demerger and transfer of the general insurance business will be effective within three days from the date of final approval. IRDAI has also granted approval to ICICI Bank for reducing its stake in ICICI Lombard to 30%.

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PGCIL begins work on first EV charging station in Meghalaya

Power Grid Corporation of India Ltd (PGCIL) has laid the foundation stone for the first-ever electric vehicle charging station (EVCS) at its office complex in Shillong, Meghalaya. The EVCS is being developed under Phase-II of the Faster Adoption and Manufacturing of (Hybrid) & Electric Vehicles (FAME) India scheme. Under this scheme, PGCIL will develop 11 EVCS in Shillong— five public EVCS and six at government establishments. 

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RIL’s arm acquires 57% stake in Strand Life Sciences for Rs 393 crore

Reliance Strategic Business Ventures Ltd (RSBVL), a wholly-owned subsidiary of Reliance Industries Ltd (RIL), has acquired a 57.06% stake in Strand Life Sciences for Rs 393 crore. RSBVL will make a further investment of up to Rs 160 crore by March 2023, increasing its total investment to Rs 553 crore. Strand Life Sciences is a pioneer of genomic testing in India. It offers bioinformatics software and clinical research solutions to healthcare providers.

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Ashoka Buildcon secures Rs 1,567 crore order for upgrading national highway in West Bengal

Ashoka Buildcon Ltd has received a Letter of Award (LoA) from Adani Road Transport Ltd for upgrading a part of the national highway in West Bengal. The order consists of six-laning of National Corridor NH-19 from Pangarh to Palsit (total design length 67.75 km) in West Bengal on an Engineering, Procurement, and Construction (EPC) basis. The accepted contract price is Rs 1,567.45 crore

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Dr Reddy’s signs pact with Citrus Pharma to sell rights to anti-cancer agent

Dr Reddy’s Laboratories Ltd has entered into a definitive agreement with US-based Citius Pharmaceuticals to sell all its rights to E7777 (an engineered IL-2-diphtheria toxin fusion protein) and certain related assets. Under the terms of the agreement, Dr Reddy’s will receive an upfront payment of $40 million (~Rs 290 crore) upon closing the transaction. This will be followed by an approval milestone payment of up to $40 million related to the cutaneous T-cell lymphoma (CTCL) indication approval. E7777 has is an important component of systemic therapy for CTCL and other cancers. 

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Barbeque Nation raises Rs 100 crore via preferential issue of equity shares

Barbeque Nation Hospitality Ltd has raised ~Rs 100 crore through the preferential issue of equity shares to three different investors. The company’s Stakeholders’ Relationship Committee has approved the allotment of 11.77 lakh fully paid-up equity shares (of the face value of Rs 5 each) at a premium of Rs 844 per share. The shares were allotted to Massachusetts Institute of Technology (MIT), Plan Associates LLC, and Motilal Oswal Equity Opportunities Fund Series-II.

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Coal India launches software for better assessment of coal resources

Coal India Ltd (CIL) has launched a software that will help in identifying thin coal seams under the earth’s crust and improve the assessment of coal resources using seismic surveys during the exploration process. The new software helps in enhancing the resolution of seismic signals, leading to the depiction of the thinnest coal seams. The software, named ‘Spectral Enhancement’, was developed by CIL’s research & development arm Central Mine Planning and Design Institute in association with Gujarat Energy Research and Management Institute.

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Future Consumer focusing on Digital First model across brand activities

Future Consumer Ltd (FCL) is focusing on changing the orientation of all business and brand activities to make them Digital First, according to the company’s annual report for 2020-21. This move is based on the expectation that consumer behaviour of shifting to online shopping due to the Covid-19 pandemic will remain in the long term. FCL will continue to grow its portfolio of food, home, and personal care products. Key brands including Golden Harvest, Tasty Treat, Karmiq, Desi Atta Company will continue to drive volume and value growth.

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JSPL’s shareholders approve 96.42% stake sale in Jindal Power

Jindal Steel and Power Ltd (JSPL) has received shareholders’ approval to divest its 96.42% stake in its subsidiary Jindal Power Ltd (JPL) to Worldone for Rs 7,401 crore. Of the total Rs 7,401 crore, Worldone (a company owned by the Jindal Group) will pay Rs 3,015 crore in cash and takeover liabilities worth Rs 4,386 crore of inter-corporate deposits (ICDs) and capital advances paid by JPL to JSPL. This deal will help JSPL reduce its debt of Rs 6,566.44 crore (as of December 31, 2020) and help it become a net cash firm.

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Adani Ports Gets Approval to Acquire 10.4% Stake in Gangavaram Port – Top Indian Market News

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Adani Ports gets approval to acquire 10.4% stake in Gangavaram Port

Adani Ports and Special Economic Zone Ltd (APSEZ) has received approval from the Andhra Pradesh government to acquire a 10.4% stake in Gangavaram Port. The consideration to be paid for the acquisition is Rs 644.78 crore. The transaction is expected to be completed within a month. Gangavaram Port is a multi-cargo facility that has a capacity of 64 million metric tonnes (MMT). It handled cargo volumes of 32.81 MMT in FY21.

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FM launches EASE 4.0; reviews performance of public sector banks

Finance Minister Nirmala Sitharaman undertook the annual performance review of public sector banks (PSBs) and launched EASE 4.0 or Enhanced Access and Service Excellence. EASE 4.0 is a common reform agenda for PSBs aimed at institutionalising clean and smart banking. PSBs have been requested to interact with export promotion agencies and chambers of commerce to understand and address the requirement of exporters in a timely manner. The Finance Ministry also urged banks to extend assistance to the fintech sector. 

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Cipla forms JV with Kemwell Biopharma for developing, manufacturing biosimilars

Cipla Ltd and Kemwell Biopharma Pvt Ltd have announced the execution of a joint venture (JV) agreement to develop, manufacture, and commercialise biosimilars for global markets. A joint venture company will be incorporated with an aim to enter the respiratory biosimilars space. The JV will leverage Cipla and Kemwell’s complementary strengths for end-to-end product development, regulatory filings, manufacturing, and commercialisation of biopharmaceutical products.  

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PGCIL commissions 765 kV Vindhyachal-Varanasi transmission line

Power Grid Corporation of India Ltd (PGCIL) has commissioned the 765 kilo-volts (kV) Double Circuit (D/C) Vindhyachal –Varanasi Transmission Line. The project was undertaken by its wholly-owned subsidiary POWERGRID Varanasi Transmission System Limited (PVTSL). This transmission line corridor will provide strong connectivity between Northern Region (NR) and Western Region (WR) and facilitate the reliable flow of power to industries and households.

JSPL plans to spend $2.4 billion to double output

Jindal Steel & Power Ltd (JSPL) has announced plans to spend $2.4 billion (~Rs 17,800 crore) over the next six years to ramp up production capacity. The company aims to raise total crude steel capacity from the existing 8.6 million tonnes (MT) to 15.9 MT by March 2025. JSPL also has plans to more than double pellet production capacity to 21 million tons by 2024.

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UPL’s nature.farm launches program to end stubble burning

UPL’s agri-services subsidiary nature.farm has announced a program to end stubble burning practices in Punjab and Haryana by replacing the matchstick with a spray service for the PUSA decomposer, a bio-enzyme developed by the Indian Agriculture Research Institute (IARI). It decomposes the stubble within 20-25 days after spraying and turns it into manure, which further improves the soil quality. nature.farm has signed up over 5 lakh acres in this program and onboarded more than 25,000 farmers who will be availing this sustainable agriculture practice free of cost. 

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Kaveri Seed board approves Rs 120 crore share buyback plan

The Board of Directors of Kaveri Seed Company Ltd has approved the buyback of equity shares of the company for an aggregate amount of Rs 120 crore. The buyback price has been fixed at Rs 850 per share. The shares of Kaveri Seed closed at Rs 579.15 on the NSE today. Telangana-based Kaveri Seed is engaged in the production and marketing of hybrid seeds.

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Prestige Estates Projects acquires 70% stake in Shipco Infrastructure

Prestige Office Ventures, a wholly-owned subsidiary of Prestige Estates Projects, has acquired a 70% equity stake in Shipco Infrastructure Pvt Ltd for creating logistics and warehousing space. The transaction was valued at Rs 22.68 crore. Incorporated in 2006, Shipco Infrastructure is engaged in the business of real estate development.

Allied Digital Services secures 6-year contract worth $88 million from automotive company 

Allied Digital Services Ltd has secured a six-year contract worth $88 million (~Rs 650 crore) from a global automotive giant. The order consists of transforming the IT operating model and infrastructure landscape across the automotive firm’s workplace management. The transformation will establish a fully scalable on-demand digital IT anytime-anywhere workplace and empower the end-customer to drive business growth.

Centre hikes sugar FRP to Rs 290 per quintal; rules out raising sugar selling price

The Central government has hiked the Fair and Remunerative Price (FRP) of sugarcane by Rs 5 per quintal to Rs 290/quintal for the 2021-22 marketing year. FRP is the minimum price that mills have to pay sugarcane growers. However, the Centre has ruled out any immediate increase in the selling price of sugar. The decision to hike FRP will benefit around 5 crore sugarcane farmers and their dependents. It will also support ~5 lakh workers employed in sugar mills and related ancillary activities.

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Coal India Reports 52% YoY Rise in Net Profit in Q1 – Top Indian Market News

Coal India Q1 Results: Net profit rises 52% YoY to Rs 3,169 crore

Coal India Ltd reported a 52.53% YoY increase in consolidated net profit to Rs 3,169.95 crore for the quarter ended June (Q1 FY22). Net profit declined by 30.89% when compared to the previous quarter. Its revenue from operations rose 36.76% YoY to Rs 25,282.15 crore during the same period. Total coal production increased by 2.43% YoY to Rs 123.98 million tonnes (MT) in Q1. Coal India’s total expenses jumped 31.3% YoY to Rs 21,626.5 crore during the April-June quarter of FY22.

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Reliance Industries, Bill Gates to invest in battery storage company

Reliance Industries Ltd (RIL), along with strategic investors Paulson & Co. Inc and Bill Gates, has announced an investment of $144 million (~Rs 1,070 crore) in Ambri Inc, an energy storage company based in Massachusetts, US. RIL’s subsidiary, Reliance New Energy Solar Ltd (RNESL), will invest $50 million to acquire 43.2 million shares of preferred stock in Ambri. The transaction is in line with RIL’s strategic plan to invest Rs 75,000 crore over the next 3 years to build a new clean energy business to fuel its commitment to be net carbon neutral by 2035.

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Jindal Steel & Power Q1 Results: Net profit jumps 10-fold to Rs 2,516 crore

Jindal Steel & Power Ltd reported a 967% YoY jump in consolidated net profit to Rs 2,515.71 crore for the quarter ended June (Q1 FY22). Its revenue from operations rose 63% YoY to Rs 10,609.5 crore during the same period. EBITDA grew 151% YoY to Rs 4,539 crore in Q1. Jindal Steel & Power produced 2.01 million tonnes (MT) of steel in Q1 FY22, compared to 1.65 MT in Q1 FY21. 

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CAMS Q1 Results: Net profit rises 58% YoY to Rs 63.24 crore

Computer Age Management Systems (CAMS) reported a 58.9% YoY increase in consolidated net profit to Rs 3,169.95 crore for the quarter ended June (Q1 FY22). Net profit increased by 5.19% when compared to the previous quarter. Its revenue from operations rose 35.36% YoY to Rs 201.18 crore during the same period. CAMS is a mutual fund transfer agency that provides services for investors, distributors, asset management companies (AMCs), and demat account holders in India.

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Dixon Tech to form JV with Japan’s Rexxam for PCB manufacturing

Dixon Technologies has entered into an agreement with Japan-based Rexxam Co. to form a joint venture (JV) to manufacture Printed Circuit Boards (PCBs) for air conditioners for domestic and international markets. Rexxam will hold a 60% stake in the JV, while Dixon Tech will own 40%. Meanwhile, Dixon has also proposed to file the necessary applications with the Department for Promotion of Industry & Internal Trade (DPIIT) to avail benefits under the government’s PLI scheme.

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Manappuram Finance Q1 Results: Net profit rises 18% YoY to Rs 436 crore

Manappuram Finance Ltd reported an 18.59% YoY increase in consolidated net profit to Rs 436.53 crore for the quarter ended June (Q1 FY22). Net profit has declined by 6.8% when compared to the previous quarter. Its revenue from operations rose 3.36% YoY to Rs 1,563.3 crore during the same period. Manappuram Finance is a leading non-banking financial company (NBFC) based in Kerala.

M&M to recall nearly 30,000 pickup trucks to replace faulty fluid pipe

Mahindra & Mahindra (M&M) announced that it was inspecting and replacing fluid pipes in some of its pickup trucks made between January 2020 and February 2021 for suspicion of improper assembly. The recall is limited to a batch of 29,878 vehicles and will be kept in line with M&M’s customer-centric approach. The issue will be rectified free of cost for customers, who will be individually contacted by the automaker.

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Motherson Sumi Systems Q1 Results: Net profit at Rs 290 crore

Motherson Sumi Systems Ltd reported a consolidated net profit of Rs 289.63 crore for the quarter ended June (Q1 FY22). It had posted a net loss of Rs 810.45 crore in the corresponding quarter last year (Q1 FY21) and a net profit of Rs 713.62 crore in the previous quarter (Q4 FY21). Its revenue from operations rose 98% YoY to Rs 16,712 crore in Q1 FY22. The company’s net debt has declined by 32% YoY to Rs 6,158 crore during the same period.

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Kalyan Jewellers Q1 Results: Net loss at Rs 51 crore

Kalyan Jewellers reported a consolidated net loss of Rs 51.3 crore for the quarter ended June (Q1 FY22). It had posted a net loss of Rs 85.87 crore in the corresponding quarter last year (Q1 FY21). Its revenue from operations jumped 109.19% YoY to Rs 1,636.77 crore in Q1 FY22. The company’s India revenue grew 94% YoY, while revenue from the Middle East jumped 183% YoY during the April-June quarter of FY22.

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Max Financial Q1 Results: Net profit falls 80% YoY to Rs 36 crore

Max Financial Services Ltd (MFSL) reported an 80% YoY decline in consolidated net profit to Rs 36 crore for the quarter ended June (Q1 FY22). Its revenue from operations rose 27% YoY to Rs 3,420 crore during the same period. MFSL’s new business premium grew 32% YoY to Rs 875 crore in Q1. The company’s sole operating subsidiary, Max Life, posted a 28% YoY increase in total revenues to Rs 4,626 crore in Q1. Max Life’s assets under management (AUM) grew 28% YoY to Rs 93,697 crore in the April-June quarter of FY22.

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Powergrid Q1 Results: Net profit jumps nearly three-fold to Rs 5,998.28 crore

Power Grid Corporation of India Ltd (PGCIL) reported a 193% YoY jump in consolidated net profit to Rs 5,998.28 crore for the quarter ended June (Q1 FY22). Net profit has increased by ~70% when compared to the previous quarter. Its revenue from operations rose 8% YoY to Rs 10,216 crore during the same period. EBITDA has increased by 8% YoY to Rs 8,997 crore in Q1.

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Zomato Q1 Results: Net loss at Rs 356 crore

Zomato Ltd reported a consolidated net loss of Rs 356.2 crore for the quarter ended June (Q1 FY22). It had posted a net loss of Rs 99.8 crore in the corresponding quarter last year (Q1 FY21) and a net loss of Rs 153 crore in Q4 FY21. Its adjusted sales growth grew 26% YoY to Rs 1,160 crore in Q1 FY22. [Adjusted sales is the sum of revenue from operations and customer delivery charges]. The gross order value (GOV) jumped four-fold YoY (or 37% QoQ) to Rs 4,540 crore in Q1. Total expenses jumped more than three times over the previous year to Rs 1,260 crore.

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Retail Inflation Eases to 4.29% in April – Top Indian Market News

Retail inflation eases to 4.29% in April; IIP grows 22.4% in March 

Retail inflation in India, measured by the Consumer Price Index (CPI), eased to 4.29% in April 2021. CPI stood at 5.52% in March. This is the fifth consecutive month that retail inflation has come within the Reserve Bank of India’s (RBI) upper margin of 6%. The Consumer Food Price Index (CFPI) eased to 2.02% in April, compared with 4.87% in March. Vegetable prices fell 14.18% in April, while prices of cereals declined by 2.96%.

India’s factory output, measured by the Index of Industrial Production (IIP), witnessed a growth of 22.4% YoY to 143.4 in March 2021. The growth in IIP is mainly on account of the growth in the manufacturing, electricity, and mining sectors. The manufacturing sector posted a growth of 25.8% YoY to 140.4 in March. The electricity and mining sectors grew 22.5% and 6.1%, respectively, during the same month. The index had fallen by 3.4% in February 2021.

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Tata Power Q4 Results: Net profit falls to Rs 481 crore

Tata Power Company Ltd reported a marginal decline in net profit to Rs 481.21 crore for the quarter ended March (Q4 FY21). It had posted a net profit of Rs 474.70 crore in the corresponding period last year (Q4 FY20). Its total income rose to Rs 10,222.48 crore in Q4 FY21, compared with Rs 6,793.95 crore in Q4 FY20. Tata Power’s board has recommended a dividend of Rs 1.55 per share.

The company’s board has also approved fund-raising up to Rs 5,500 crore through the issuance of non-convertible debentures (NCDs) on a private placement basis. The funds raised from this issue will be utilised for refinancing of existing loans.

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Cabinet approves PLI scheme worth Rs 18,100 crore for battery storage manufacturing

The Union Cabinet has approved a Production Linked Incentive (PLI) scheme for promoting battery storage at an estimated outlay of Rs 18,100 crore. With the objective to promote the ‘Make in India’ initiative, the National Programme on Advanced Chemistry Cell (ACC) Battery Storage is expected to attract investments of up to Rs 45,000 crore. The proposal aims to achieve a manufacturing capacity of 50 gigawatt-hour (GWh) of ACC and 5 GWh of niche ACC. Information and Broadcasting Minister Prakash Javadekar said this PLI scheme will promote green growth and use local products like copper and bauxite to a large extent.

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UPL Q4 Results: Net profit rises 34% QoQ to Rs 1,063 crore

UPL Limited reported a 34% quarter-on-quarter (QoQ) increase in net profit to Rs 1,063 crore for the quarter ended March (Q4). Net profit has jumped 72% when compared to Q4 FY20. The company’s revenue from operations rose 40% QoQ (or 15% YoY) to Rs 12,796 crore during the same period. Its agrochemical and other agricultural-related businesses saw top-line growth of 15.7% YoY to Rs 12,331 core. UPL’s board has recommended a dividend of Rs 10 per share.

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Cadila to sell India focused animal health business for Rs 2,921 crore

Zydus Animal Health and Investments Ltd (ZAHL), a wholly-owned subsidiary of Cadila Healthcare, has entered into an agreement with a consortium of financial investors to sell its animal healthcare business Zydus AH for Rs 2,921 crore. The consortium includes Rakesh Jhunjunwala’s RARE Enterprises, Multiples Alternate Asset Management, and Canada Pension Plan Investment Board. Zydus AH is one of the fastest-growing animal health businesses in India. It claims a leadership position across a spectrum of therapeutic and nutritional products for livestock and poultry animal segments.

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JSPL Q4 Results: Net profit jumps multi-fold to Rs 1,900 crore

Jindal Steel and Power Ltd (JSPL) reported a consolidated net profit of Rs 1,900.51 crore for the quarter ended March (Q4 FY21). This includes an exceptional item of Rs 969 crore. It had posted a net profit of Rs 82.13 crore in the corresponding period last year (Q4 FY20). JSPL’s total income rose to Rs 11,903.59 crore in Q4, compared with Rs 6,819.73 crore a year ago. Total expenses rose to Rs 8,082.92 crore in the March 2021 quarter, compared to Rs 6,603.65 crore in Q4 FY20.

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Passenger vehicle wholesales fall 10% in April: SIAM

According to data released by the Society of Indian Automobile Manufacturers (SIAM), total passenger vehicle wholesales in India declined by 10% to 2.61 lakh units in April 2021. This is compared with passenger vehicle sales of 2.90 lakh units in March 2021. Motorcycle sales declined by 33% to 6.67 lakh units in April, compared to 9.93 lakh units in March. Three-wheeler sales fell by 57% to 12.70 lakh units during the same month.

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Voltas Q4 Results: Net profit rises 49% YoY to Rs 239 crore

Voltas Limited reported a 49% YoY increase in consolidated net profit to Rs 239 crore for the quarter ended March (Q4). Its total sales revenue rose 25% YoY to Rs 2,683.24 crore during the same period. The company’s revenue from unitary products grew 20% YoY to Rs 1,437 crore. Its colling products business posted overall volume growth of 18% YoY in Q4. The board of Voltas Ltd has recommended a dividend of Rs 5 per share.

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Asian Paints Q4 Results: Net profit rises 84.5% YoY to Rs 852 crore

Asian Paints Limited reported an 84.5% YoY increase in consolidated net profit to Rs 852.13 crore for the quarter ended March (Q4). On a quarterly basis, net profit has fallen by 31%. Its revenue from operations rose 43.5% YoY to Rs 6,651.4 crore during the same period. The company’s domestic decorative business posted volume growth of 48% YoY, led by strong growth in the premium and luxury product range. The board of Asian Paints has recommended a final dividend of Rs 14.5 per share.

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Apollo Tyres Q4 Results: Net profit falls 35% QoQ to Rs 287 crore

Apollo Tyres Limited reported a 35.27% QoQ fall in net profit to Rs 287.26 crore for the quarter ended March (Q4 FY21). Net profit has jumped 269% when compared to the corresponding period last year. Its total sales revenues fell 3.25% QoQ (up 40% YoY) to Rs 5,025.7 crore during the same period. Apollo Tyres’ sales in the Middle East and African regions rose 49% YoY to Rs 3,688 crore. The company’s board has recommended a final dividend of Rs 3.5 per share.

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Editorial

Reasons Behind the Rise in Steel Prices in India

steel sector

Steel prices in India and across the globe have been rising exponentially since July 2020. After surging ~55% in the previous financial year (FY21), it was confirmed that major Indian steel players had hiked rates by a further 10% in April alone. A Rs 4,000 per tonne hike has taken domestic prices of hot-rolled coil (a steel product) to a 13-year high of around Rs 60,000 per tonne. While companies such as JSW Steel, SAIL, Tata Steel, and Jindal Steel & Power continue to benefit from higher prices, other sectors of our economy face huge difficulties.

What could be the reasons behind the surge in steel prices? Let us find out.

Why are Steel Prices Rising?

China Cuts Import Tariffs on Steel to Zero

Last week, China announced the suspension of import taxes on steel. This is part of the country’s multi-year campaign to use market pressures to force its steel manufacturers to shrink and become more energy-efficient and profitable. Thus, it is in line with China’s ongoing drive to reduce steel capacity. Duties on crude steel, pig iron, and recycled steel will be suspended from May 1 onwards. 

China has also removed a rebate (partial refund or tax relief) of 13% on the value-added tax (VAT) it offered on exports of 146 steel items. The rebate is now applicable on 28% of Chinese steel exports as compared to 98% earlier. These rebates would force Chinese steelmakers to concentrate on domestic markets and not produce extensively for overseas markets. This would lead to a general increase in global steel prices (as China produces more than 50% of the world’s steel).

On the other hand, Chinese export prices would no longer be the lowest in the world. It would also reduce the competitive pressure on suppliers particularly in the Asia Pacific region, including Japan, South Korea, Taiwan, Vietnam, and India.

Was China Hoarding Steel?

China had been the largest producer of steel for more than a decade and was known for dumping its steel products across the globe. It produces more than half of the world’s steel. Due to discounted prices, major foreign steelmakers found it very difficult to compete with their Chinese counterparts. 

Despite this, China had turned into a net importer of steel almost a year ago. Even when their steel plants were operating at 90% capacity in June 2020, the country began importing large quantities of steel. Through a well-defined fiscal and monetary stimulus package, China shifted its focus on creating demand and promoting development activities. Do bear in mind that this was during a period when other nations had been under strict lockdowns amidst the outbreak of the Covid-19 pandemic. As a result of these policies, China was able to control the global demand and supply of steel and thereby control prices.

Other Factors

Global steel prices have also skyrocketed due to a steep increase in the prices of iron ore. The decline in iron ore exports from countries such as Australia and Brazil had led to a surge in its prices. At the same time, the iron and steel industry has been witnessing strong growth in demand from China, India, Europe, and the United States. The reduction in global Covid-19 cases and strong vaccination drives have allowed economic activities to resume. However, the magnitude of this increase in demand is much greater than the supply. 

In the Indian context, steel companies had just started ramping up their production capacities in the last few months. There had been a greater demand for steel from the real estate and infrastructure sectors. Due to the surge in Covid-19 cases and the devastating impact associated with it, steelmakers (including JSW Steel, Jindal Steel & Power) have now reduced production to ramp up their supply of medical oxygen to hospitals.

The Impact of Rising Steel Prices

  • The Indian automobile sector has been heavily impacted due to the surge in steel prices and other essential metals. The rise in input costs had affected their operating profits and revenues. We saw that companies such as Maruti Suzuki, Tata Motors, Mahindra & Mahindra, and others had raised the prices of their vehicles in January 2021. Major automakers had to introduce a further hike in rates on select models in April as well. 
  • The real estate and infrastructure sectors will also be affected in the long term as steel and cement prices keep increasing at a rapid pace.
  • The rise in steel prices has also lead to an increase in inflation in India. This is on account of a considerable rise in inflation in the manufacturing sector. According to industry experts, steel prices are expected to remain at elevated levels in 2021 due to high demand. Major companies such as JSW Steel have stated that domestic steel prices are still much below the international rates. The rates are very likely to go up further in the coming months.

Stocks Benefiting from Rising Steel Rates

Over the past few months, we have been witnessing a significant rally in steel stocks due to the prospects of better margins. The shares of Steel Authority of India Ltd (SAIL), Tata Steel, and Jindal Steel & Power Ltd (JSPL) have surged by more than 65% so far since January 2021. JSW Steel has rallied by 85% during the same period. Tata Steel has crossed an important mark of Rs 1,000 and is rising further every day. 

Indian steelmakers are likely to show significant growth in EBITDA in their upcoming financial results. The policy changes introduced by China were well received by investors last week. A further hike in steel products is expected in May, and thus, we could see a potential upside in these stocks. 

However, with the prevailing Covid-19 situation in India, the steel industry is unsure whether it can ramp up production to meet the requirements of the automobile, construction, and other sectors. With most states in India imposing restrictions or lockdowns, production is most likely to be impacted. Let us look forward to seeing how the situation unfolds in the weeks to come.