Tag: majesco

Categories
Market News Top 10 News

Tata Motors Reports Net Loss of Rs 7,605 crore in Q4 – Top Indian Market News

Tata Motors Q4 Results: Net loss at Rs 7,605 crore

Tata Motors reported a consolidated net loss of Rs 7,605.4 crore for the quarter ended March (Q4 FY21). It had posted a net loss of Rs 9,894.3 crore in the corresponding quarter last year (Q4 FY20) and a net profit of Rs 2,906.45 crore in Q3 FY21. The automaker’s consolidated revenues rose 42% YoY to Rs 88,728 crore in Q4 FY21. The company’s exceptional loss related to Jaguar Land Rover (JLR) stood at nearly Rs 14,000 crore during the quarter. Its India business posted a 106% YoY jump in revenues to Rs 20,046 crore in Q4. 

Read more here.

L&T Infotech signs digital banking deal with Hoist Finance

L&T Infotech (LTI) has entered into a strategic engagement with Sweden-based Hoist Finance AB to provide banking-as-a-service for performing loans segment through its digital banking platform. The platform will enable Hoist Finance to be more scalable and ensure faster on-boarding of new asset classes across regions. LTI’s digital banking platform provides agility and higher security at a lower total cost of ownership.

Read more here.

Canara Bank Q4 Results: Net profit at Rs 1,011 crore

Canara Bank reported a net profit of Rs 1,011 crore for the quarter ended March (Q4). It had posted a net loss of Rs 3,259 crore in the corresponding quarter last year (Q4 FY20). Net interest income (NII) rose 68.4% YoY to Rs 5,589 crore in Q4 FY21. The gross non-performing assets (GNPA) ratio stood at 8.93%, compared with 7.46% in the previous quarter (Q3 FY21). The bank’s provisions and contingencies declined to Rs 4,134 crore in Q4, compared with Rs 4,325 crore in the October-December quarter (Q3).

Read more here.

Praj Industries develops technology to produce bio-bitumen based on lignin

Praj Industries announced that it has developed a technology to produce bio-bitumen based on lignin. The Netherlands-based Circular Biobased Delta has approved the company’s samples processed from Purified Lignin, as a part of their flagship CHAPLIN program. Lignin is one of the co-products resulting from 2nd generation ethanol plants, paper making, and also from compressed biogas plants. Bitumen is a black viscous mixture of hydrocarbons used in road construction and roofing.

Read more here.

Jyothy Labs Q4 Results: Net profit rises 3% YoY to Rs 27 crore

Jyothy Labs reported a 2.59% YoY increase in consolidated net profit to Rs 27.28 crore for the quarter ended March (Q4). Its revenue from operations rose 26% YoY to Rs 495.11 crore during the same period. The FMCG firm incurred an exceptional expense of Rs 23.5 crore in Q4. The Managing Director of Jyothy Labs said they have been witnessing good traction across segments and are aligned to achieve higher growth. The company’s board has recommended a final dividend of Rs 4 per share.

Read more here.

Majesco partners with Infosys to accelerate digital transformation for insurers

Majesco and Infosys have announced a strategic collaboration through which they will work to help joint customers accelerate their digital transformation journey. Infosys’ insurance domain and digital capabilities combined with Majesco’s cloud-based next-generation suite of solutions will accelerate growth and innovation for the insurance industry. Through this partnership, the companies will enable insurers to unlock new opportunities, address the demand for personalised customer experiences, and ensure digital adoption across the insurance business value chain.

Torrent Pharma Q4 Results: Net profit rises 3% YoY to Rs 324 crore

Torrent Pharmaceuticals reported a 3.18% YoY increase in consolidated net profit to Rs 324 crore. Its total revenue rose 0.15% YoY to Rs 1,915 crore during the same period. The pharma company’s India revenues grew 10% YoY to Rs 992 crore, while revenues from the US market declined 30% YoY to Rs 269 crore. The company’s board has recommended a final dividend of Rs 15 per share. Its board has also approved the raising of up to Rs 5,000 crore through the issuance of equity shares, convertible debentures, or via qualified institutional placement (QIP) or any other mode. 

Read more here.

Ujjivan SFB Q4 Results: Net profit rises 86% YoY to Rs 136 crore

Ujjivan Small Finance Bank reported an 86.59% YoY increase in net profit to Rs 136.49 crore for the quarter ended March (Q4). Its total operating income declined 16.22% YoY to Rs 617.85 crore during the same period. Total deposits grew 22% YoY to Rs 13,136 crore. The gross non-performing assets (GNPA) ratio stood at 7.1%, compared with 1% in Q4 FY20. For the financial year ended March 31, 2021 (FY21), net profit declined 97.6% YoY to Rs 8.30 crore.

Read more here.

Abbott India Q4 Results: Net profit rises 37% YoY to Rs 152 crore

Abbott India reported a 37.4% YoY increase in net profit to Rs 152.47 crore for the quarter ended March (Q4). Net profit has declined by 13.93% when compared with the previous quarter. Its revenue from operations rose 14% YoY to Rs 1,095.54 crore during the same period. For the financial year ended March 31, 2021 (FY21), net profit rose 16.49% YoY to Rs 690.69 crore. The drugmaker’s board has recommended a final dividend of Rs 120 per share and a special dividend of Rs 155 per share.

Read more here. 

CCI approves acquisiton of additional 25% stake of Krishnapatnam Port by Adani Ports

The Competition Commission of India (CCI) has approved the proposed acquisition of an additional 25% shareholding of Krishnapatnam Port by Adani Ports and Special Economic Zone Ltd (APSEZ). The cost of acquisition of the 25% stake from Vishwa Samudra Holdings will be Rs 2,800 crore. After the successful completion of the acquisition, Krishnapatnam Port will become a wholly-owned subsidiary of APSEZ. The all-weather, deep water port has a multi-cargo facility with an annual capacity of 64 million tonnes.

Read more here.

Route Mobile Q4 Results: Net profit jumps 161% YoY to Rs 35 crore

Route Mobile reported a 161.81% YoY jump in consolidated net profit to Rs 35.37 crore for the quarter ended March (Q4). Net profit has declined by 6.9% when compared to the previous quarter. Its revenue rose 36.38% YoY to Rs 362.44 crore during the same period. For the financial year ended March 31, 2021 (FY21), net profit has increased by 128.8% YoY to Rs 133.32 crore. The company’s board has recommended a dividend of Rs 2 per share. Route Mobile is a leading cloud communications platform provider based in Mumbai.

Categories
Market News Top 10 News

Total Acquires 20% Stake in Adani Green Energy – Top Indian Market News

Total acquires 20% stake in Adani Green Energy 

French oil and energy major Total SE announced the acquisition of a 20% stake in Adani Green Energy Limited (AGEL) from the Adani Group. The company will also buy a 50% stake in a portfolio of solar assets operated by AEGL. Total said it would pay $2.5 billion (~Rs 22,118 crore) as part of the acquisition. AEGL has more than 14.6 gigawatts of contracted renewable capacity, with an operating capacity of 3 GW, another 3 GW under construction, and 8.6 GW under development. The company has plans to achieve 25 GW of renewable power generation by 2025.

Read more here.

Mindtree Q3 Results: Net Profit rises 66% YoY to Rs 327 crore

Mindtree Ltd reported a 66% year-on-year (YoY) increase in consolidated net profit to Rs 326.5 crore for the quarter ended December (Q3). The IT firm’s revenue rose by 3% YoY to Rs 2,023.7 crore during the same period. The company’s active client base stood at 276, while it added eight new clients in Q3. Mindtree stated that it is witnessing a significant demand for its cloud, data, and analytics capabilities. 

Read more here.

Three UK partners with TCS to accelerate 5G network rollout

Tata Consultancy Services (TCS) has been selected by Three UK to help configure its mobile network for its ongoing 5G services rollout. Three UK is in the process of deploying a new 5G radio access network, which is already live in 175 towns and cities. TCS’ software will speed-up configuration checking and reduce manual errors, ensuring first-time-right network configuration. TCS will also provide 24×7 support across the network for configuration corrections and ad-hoc site testing. 

Read more here.

L&T secures order worth up to Rs 5,000 crore from RNVL in Uttarakhand

Larsen & Toubro (L&T) announced that its construction arm has secured a contract worth up to Rs 5,000 crore from Rail Vikas Nigam Ltd (RVNL) in Uttarakhand. The scope of the project includes the construction of tunnels, formation, construction shaft, and other ancillary works between Rishikesh and Karanprayag. L&T said the entire project is to be completed within a stringent timeline of 60 months.

Read more here.

IndiaMART InterMESH Q3 Results: Net profit rises 29% YoY to Rs 80 crore

IndiaMART InterMESH Ltd reported a 29.35% YoY increase in consolidated net profit to Rs 80.20 crore for the quarter ended December (Q3). Its revenue rose 5.28% YoY to Rs 173.60 crore during the same period. The company’s board has approved fund-raising of up to Rs 1,100 crore via equity and debt instruments. 

Gravita India secures order worth Rs 125 crore from Korea Zinc’s subsidiary

Gravita India has signed an agreement with Sorin Corporation, a subsidiary of Korea Zinc Co Ltd, for supplying approximately 8,000 MT of refined lead. At current lead prices, the contract would be valued at around Rs 125 crore. The agreement will be executed in the calendar year 2021. Gravita India stated that this contract will help the firm strengthen its market presence in the South East Asian market.

Read more here.

Metropolis Healthcare acquires Hitech Diagnostic Centre

Metropolis Healthcare Ltd has acquired Hitech Diagnostic Centre, a south India-based diagnostics laboratory chain, in a cash and stock deal. The company said it would pay Rs 511 crore in cash and issue up to 4.95 lakh equity shares of face value Rs 2 each on a preferential basis to Hitech’s promoter group. Through the acquisition, Metropolis will get access to 31 laboratories and 68 collection centres of Hitech.

Read more here

Motherson Sumi to acquire 75% stake in two companies of Turkey-based Plast Met Group

Motherson Sumi announced the acquisition of a 75% equity stake in two companies of the Turkey-based Plast Met Group through its subsidiary- Samvardhana Motherson Reflectec (SMR). The enterprise value of the deal is €21.78 million (Rs 193 crore). The all-cash deal is subject to regulatory approvals and is expected to be closed in the coming three months. The acquisition will mark Motherson Sumi’s entry into Turkey, which has a vehicle market of 1.4 million units annually.

Read more here.

Indian Hume Pipe Company receives LoA for water supply project in Uttar Pradesh

Indian Hume Pipe Company Ltd has received a revised Letter of Acceptance (LoA) from State Water & Sanitation Mission (SWSM), Government of Uttar Pradesh for water supply schemes in various villages of Kanpur Division. The project areas of the Kanpur Division are Auraiya, Etawah, Farukhabad, Kanpur Rural, Kanpur Urban, and Kannauj District. The total value of the work order is about Rs 400 crore.

Read more here.

Snowman Logistics Q3 Results: Net profit stands at Rs 1.4 crore

Snowman Logistics Ltd reported a net profit of Rs 1.42 crore for the quarter ended December (Q3). The company had posted a net loss of Rs 3.4 crore in the corresponding period in FY20. Its revenue increased by 3% YoY to Rs 60.18 crore in Q3 FY21. Snowman Logistics also announced that it has appointed Sunil Prabhakaran Nair as CEO and whole-time director of the firm for a further period of 3 years, with effect from February 13, 2021.

Majesco Q3 Results: Net profit up 23 times to Rs 27.7 crore

Majesco Ltd’s net profit jumped 23 times (or 3,127%) YoY to Rs 27.76 crore for the quarter ended December (Q3). Its total revenue rose by 715% YoY to Rs 38.41 crore during the same period. Majesco had completed a buyback of 15.74 lakh equity shares and paid Rs 133 crore to the shareholders in Q3. The company had also announced an interim dividend of Rs 974 per share during the quarter.

Caplin Point’s arm enters into strategic partnership with Canada’s JAMP Pharma Group

Caplin Steriles, a subsidiary of Caplin Point Laboratories Ltd (CPLL), has entered into a strategic partnership with Canada-based JAMP Pharma Group. The agreement includes six injectable products to be filed for Health Canada approval. Caplin Steriles has already filed some of these products in the United States. [CPLL is engaged in the manufacturing of active pharmaceutical ingredients (APIs), finished formulations, research & development, and clinical research]

Read more here.

Categories
Editorial

What Happened to Majesco’s Shares?

The share price of Majesco Limited closed at Rs 985.85 on December 22 (Tuesday). On the next day, investors were quite confused why its share price had fallen by around 98% to Rs 12. The reason behind the decline is very interesting and quite rare in the stock markets. marketfeed has come up with an easy explanation for all our readers. Let us dive right in.

The Huge Dividend Payout

We often come across news about companies announcing or declaring dividends, which is a specific ‘reward’ that is offered to its shareholders. The dividends paid by Majesco in recent years had been in the range of Re 1 to Rs 2 per share. However, on December 15, we received a piece of very interesting news from the company. Majesco Ltd announced that its Board of Directors had approved payment of interim dividend at the rate of 19,480% for the financial year 2020-21! This means that the company will pay Rs 974 per equity share of the face value of Rs 5 each. 

This interim dividend payout translates to an amount of Rs 2,788.4 crore, on a shareholder base of 2.8 crore shares. This has been the highest dividend payout ever declared by an Indian firm.

Why Has Majesco Declared Such a High Dividend?

The main reason for this is because the insurance technology firm had sold one of its business units- Majesco US- to Thoma Bravo, a private equity firm. The sale proceeds after accounting for expenses and capital gains tax had been Rs 3,853.3 crore! On the other hand, the company had already completed a buy-back of shares at Rs 845 per share. Thus, the company had a lot of cash accumulated in its financial books. 

Thus, Majesco’s board declared a special dividend and announced that the record date for the dividend payout will be made on December 25, 2020. It also stated that the ex-date would be December 23, 2020. 

What is Record Date and Ex-Date?

  • The record date refers to the cut-off date used to determine which shareholders of a stock are entitled to a dividend. It is set by the board of directors of a company. 
  • An ex-dividend date (or ex-date) of a stock is dictated by stock exchange rules and is usually set to be one business day before the record date.
  • In order for an investor to receive a dividend payment on the listed payment date, they would need to have their stock purchase completed by the ex-dividend date.  
  • If the stock sale has not been completed by the ex-dividend date, then the seller on record is the one who receives the dividend for that stock.
Source: Investopedia

On the ex-dividend date, the stock price is adjusted or reduced by the amount set as dividend. This means that the stock is now being traded without the value of the next dividend payment. On December 23, Majesco’s shares turned ex-interim dividend for Rs 974 per share. On the same day, the stock gained nearly 5% to close at Rs 12.20.

Take Caution!

If you are interested in buying a specific share for its attractive dividends, there are certain details that you need to be aware of:

  • Dividends received are taxable in the hands of the receiver, as per the applicable tax rate. For those in the higher tax brackets, the rate of tax is in the range of 30-40%. This means that a High Net-worth Individual (HNI) would have to pay a very high tax for their dividend received. 
  • Also, dividends in excess of Rs 5,000 are subject to tax deduction at source (TDS), at the rate of 7.5%.
  • On the other hand, an existing shareholder who is planning to sell the stock would attract a long-term capital gains tax of 10% or a short-term capital gains tax of 15%.
  • Certain people may buy a stock before the dividend, pocket the dividend, and sell the shares at an ex-dividend price. The fall in share price entitles you to claim a loss, which you can set off against capital gains earned in some other transaction. This is actually known as dividend stripping. However, to curb the revenue loss from dividend stripping, section 94(7) of Income Tax law restricts a person from setting off any short-term capital loss (to the extent of dividend income) arising from the sale of shares purchased for dividend stripping. To claim a loss, one has to buy the shares at least three months prior to the record date and sell them three months after the record date.

Now you know what really happened with Majesco’s shares! We would urge our readers to always be aware of the implications behind such a huge piece of news such as this.

 

Categories
Market News Top 10 News

Jio & Facebook to Accelerate India’s $5 trillion Economy Push – Top Indian Market News

Jio and Facebook to accelerate India’s $5 trillion economy push: Mukesh Ambani

Facebook founder Mark Zuckerberg and Reliance Industries Chairman Mukesh Ambani, on Tuesday, spoke about the partnership between Facebook and Jio- highlighting how each company benefits from the association. They were speaking at the Facebook Fuel for India 2020 event. Opening up on the potential of a technology-enabled ecosystem in propelling the economic growth of India, Ambani said that he sees the country accelerating as a premier digital society. He stated that both Jio and Facebook will work hand-in-hand to make this a reality. The partnership will also focus on digitizing small businesses.

In April 2020, Facebook purchased a 9.9% stake in RIL’s telecom unit Jio for $5.7 billion (Rs 43,574 crore).

Read more here.

Mrs Bectors IPO subscribed nearly 4 times on Day 1

Mrs Bectors Food Specialties’ initial public offering (IPO) was subscribed nearly 4 times on the first day of the bidding process. The issue received bids for 4.92 crore shares, which was 3.72 times the issue size of 1.32 crore shares. The quota for retail investors was filled in 6.83 times, while that for employees’ quota received 9.46 times bids. The price band of the Rs 541-crore IPO was fixed at Rs 286-288 per equity share.

Read more here.

M&M subsidiary SsangYong fails to repay loans worth Rs 408 crore

SsangYong Motor Company, the South Korean subsidiary of Mahindra and Mahindra Ltd (M&M), has missed repayment of Rs 480 crore to JP Morgan Chase Bank. The amount was due and payable on 14 December 2020. M&M clarified that the missed loan repayment is part of SsangYong’s outstanding loans aggregating to Rs 680 crore, which will be covered under M&M’s commitments to the subsidiary’s lenders.

Read more here.

Adani Ports’ joint venture to raise $300 million to retire debt

Adani Ports and Special Economic Zone Ltd (APSEZ) said that its joint venture firm, Adani International Container Terminal Pvt Ltd (AICTPL), will raise $300 million (~Rs 2,207 crore) to retire some of its debt. AICTPL intends to use the funds to repay all of its existing senior debts. Senior debt refers to borrowings that are prioritized for repayment in the case of bankruptcy. Such debts have the highest priority, as compared to other types of borrowings.

Read more here

Kalpataru Power secures orders worth Rs 1,300 crore

Kalpataru Power Transmission Ltd announced that it has secured orders worth Rs 1,300 crore in India and overseas. The orders include an engineering, procurement, and construction (EPC) job for pipeline laying and associated works in India. It also includes an order for railway electrification by the Central Organization for Railway Electrification (CORE). The firm also stated that its international subsidiary has secured new T&D (transmission & distribution) projects in Europe.

Read more here.

Majesco announces interim dividend of Rs 974 per share

Majesco Limited announced that its board has approved payment of an interim dividend of Rs 974 per equity share for the financial year 2020-21. The interim dividend is at the rate of 19,480% of the face value of the company. Majesco’s dividend payment translates to an amount of Rs 2,788.4 crore, on a shareholder base of 2.85 crore shares. The record date for the dividend is December 25.

Read more here.

Dilip Buildcon receives letter of acceptance from NHAI for Gujarat project

Dilip Buildcon Ltd has received a letter of acceptance (LOA) from the National Highway Authority of India (NHAI) for a hybrid annuity mode project in Gujarat. The project includes four-laning of Dhrol-Bhadra Patiya section of NH-151A and Bhadra Patiya-Pipaliya Section of NH-151A in Gujarat. The cost of the project has been estimated at Rs 880 crore, and it will be completed in 2 years. 

Read more here.

IDBI Bank opens QIP to raise Rs 6,000 crore

The Qualified Institutions Placement (QIP) committee of IDBI Bank’s Board of Directors has authorised the opening of the bank’s QIP issue on December 15. IDBI Bank plans to raise up to Rs 6,000 crore via the QIP issue. The floor price of the issue has been fixed at Rs 40.63 per equity share.  QIP is a method by which listed companies can raise funds by issuing shares to certain institutions, without going through standard regulatory approvals.

Read more here.

Mindtree accelerates cloud business through Global Microsoft Azure Experience Center

Mindtree Limited announced the launch of a dedicated Microsoft go-to-market business unit. The unit will be centered on building new solutions based on Microsoft platforms and technologies. The new business unit is a component of Mindtree’s multi-tiered initiative to support the continued demand for cloud services and solutions. It will also expand its Global Azure Experience Center in Washington, to ensure that all technical professionals are proficient and certified on Microsoft Azure technologies.

Cyient signs MoU with Australian firm Decipher

Cyient Limited has signed a Memorandum of Understanding (MoU) with Decipher, an Australian company that provides cloud monitoring and governance platform for tailing storage facilities. Tailings are the mineral waste remaining after ore processing to extract mineral concentrates. It is typically stored within an engineered containment structure known as a tailing storage facility (TSF).

Under the agreement, Cyient will help Decipher with the global rollout of its cloud mining platform for tailings and rehabilitation monitoring. Hyderabad-based Cyient Ltd is an outsourcing company, which is focused on engineering, manufacturing, data analytics, and networks & operations. 

Read more here.

Categories
Editorial Editorial of the Day

Majesco Limited : A Very Interesting Company Analysis

We had talked about Majesco on The Stock Market Show, earlier this week. While going through the fundamentals of the company, we found some very interesting things. So let’s discuss!

Share Price of Majesco Limited
27th March 2020: Rs 218.75
7th October 2020: Rs 844.90

Within 6 months, Majesco Ltd. has given a staggering return, as shown above. This makes us wonder why this stock is not catching much attention. We bring you everything you should know before you choose to invest in this stock.

(Disclaimer: We are not advising you to buy or sell any stock. This is only for educational purposes only.)

About Majesco Ltd

Majesco provides insurance software solutions, consulting and other technology-related services for the existing insurance companies. The company was incorporated as Minefields Computers Private Limited on 27th June 2013. Later, the name was changed to Majesco Ltd. Interestingly, the company is listed on the US Stock Exchange NASDAQ, as well.

The company masters in services related to cloud-computing, microservices-based and API-enabled services. They are one of the first companies to move to the cloud. Thus, giving them a headstart for the future. It offers insurance software solutions for General Insurance, Life, Annuities (L&A), and Pensions & Group or Employee Benefits providers. Majesco is present in several countries like India, Malaysia, Thailand, Canada, Singapore, New Zealand, The United States and more.

On a global level, the company offers its services to more than 190 insurance carriers. Few of its clients are Religare Life Insurance, AON, Burns & Wilcox, Erie Insurance, Hansard Global PLC, IDBI Federal Life Insurance, Sun Life Malaysia, US Assure and many more. 

Business Strategy

Majesco projects itself as an InsurTech partner. InsurTech means involvement of technology in the insurance industry. It provides insights to insurance companies to help them accelerate their digital transformation. With the help of Machine Learning, Robotic automation, AI and IoT (Internet of Things) company aim to improve its efficiency and reduce costs.

As mentioned before, Majesco provides cloud-based solutions to its clients. Total cloud revenue from P&C (Property and Casualty insurance) amassed to Rs 302.82 crores. Similarly, Total cloud revenue from L&A (Life and Annuities) amassed to Rs 116.82 crores. In the last one year, the company has witnessed a revenue increase of 35.6% in its cloud subscription business.

Financial Performance

FY19-20 was a year of dominance for the company. Global and Indian economy had been volatile before the pandemic, yet the company continued its upward trajectory. They saw robust growth in their top line (revenue) as well as in the bottom line (net profits). Majesco’s total revenue saw a modest rise of 5% from Rs 1,016.20 crores to Rs 1,040.48 crores last year. But, their profits increased by more than 25%. Their net profit at the end of FY18-19 was Rs 71.74 crores. It increased to Rs 90.22 crores in FY19-20.

(Source: Annual Report 2019-20)
(Source: Annual Report 2019-20)

By digging deep into the company’s financials, we got great insights. Majesco registered an increase in their expenses from Rs 916.14 crores to Rs 959.87 crores. This increase was chiefly due to a 5% increase in employee benefit expenses. It shows that the company is further looking to invest in its human capital and aims to keep its employees happy. At the same time, the company’s finance cost has been decreasing. This is again a positive sign because a company is paying less interest on its debt. Thus, the company is managing its liabilities well.

Earnings per share is an important metric to check how much a shareholder is gaining from an investment. It shows the company’s total profitability. To further know more about the EPS, click here. In just one year, Majesco’s EPS has grown by more than 26%. Last year, the company’s EPS was 19.14 which rose to 24.28 by FY19-20. With the proposed share buyback, EPS will rise even further.

Strong Cash Position

Liquidity is very important for any company to remain stable. The most liquid asset is Cash. The amount of cash within a company’s cash flow statements explains how well the company is doing. Majesco’s cash position in the last year has shown exceptional growth. Total cash and cash equivalents at the end of FY18-19 was Rs 109.86 crores. This has grown 3X times to Rs 342.95 crores in FY19-20.

(Source: Annual Report 2019-20)

In an age where companies are borrowing to expand, Majesco’s non-current liabilities have actually decreased by 20%. Last year, this amount was amassed to be Rs 71.95 crores which has fallen to Rs 56.58 crores.

Two possibilities arise when a company has a good amount of cash with themselves. Firstly, they either look to invest for further expansion and secondly, they can go for a share buyback. The second option gives the promoters a stronger hold on their company. They become more flexible in making decisions. A share buyback also signals the positive confidence of promoters in their organisation.

Majesco Limited is currently exploring the path of utilizing the cash to buy back the shares. On October 8, the company’s board approved the proposal to buyback up to 74,70,540 fully paid equity shares at Rs 845/share. Shares of Majesco are currently trading above Rs 870. You can go through the company’s annual report or through its investor presentation to find out more.

Categories
Market News Top 10 News

India’s GDP expected to contract by 9.6% in FY21 – Top Indian Market News

India’s GDP expected to contract by 9.6% in FY21: World Bank

India’s economy is expected to shrink by 9.6% in the current financial year (2020-21). The report comes from the World Bank’s half-yearly South Asia Focus update. Assuming that all Covid-19 restrictions are lifted by 2022, India’s growth rate is projected to bounce back to 5.4% in FY22. Gross Domestic Product (GDP) of the country had contracted by 23.9% in the first quarter of this financial year.

Read more here.

India rejects trial request for Sputnik-V Covid-19 vaccine

The Central Drug Standards Control Organisation (CDSCO), has rejected a proposal to conduct a direct Phase-3 clinical trial of the Russian Sputnik-V coronavirus vaccine in India. The proposal had been put forth by Dr. Reddy’s Laboratory, which has partnered with the Russian Direct Investment Fund (RDIF), for clinical trial and distribution of the vaccine in India. The regulatory body stated that the number of people who received the vaccine in Phase-1 was too less.

Read more here.

Amazon sends legal notice to Future Group over deal with Reliance Retail

USA-based Amazon.com, Inc. has served a legal notice to its Indian partner, Future Group. Kishore Biyani-led Future Group has been found violating a non-compete agreement, by entering into a Rs 24,713 crore contract with Mukesh Ambani’s Reliance Industries Limited (RIL). Future Group shares fell 5.4%, and Reliance shares saw a fall of 0.8% on Thursday.

Read more here.

Infosys to acquire US-based Blue Acorn iCi

IT services major Infosys said that it will acquire Blue Acorn iCi, a US-based data analytics company for a sum of $125 million (~ Rs 915 crore). The company stated that this acquisition will improve end-to-end customer experience offerings. The transaction will be undertaken by Infosys Nova Holdings LLC, a wholly-owned subsidiary of Infosys Ltd.

Read more here.

TCS surpasses Accenture to become the world’s most valuable IT services company

Tata Consultancy Services (TCS) has become the most-valuable IT company globally, after surpassing its rival, Accenture. TCS was valued at Rs 10.6 trillion, at the last closing share price of Rs 2,825. The company stated that its employees would get salary hikes. On Wednesday, TCS had also announced a share buyback plan of Rs 16,000 crore at Rs 3,000 per share.

Read more here.

Retail sales of passenger vehicles rise by 9.81% in September

Passenger vehicle (PV) retail sales showed a growth of 9.81% in September 2020. Total PV sales increased to 1,95,665 units from 1,78,189 units, in September 2019. Dealers are now anticipating a high growth rate period during the upcoming festive months in India.

Read more here.

Majesco announces plans for Rs 631 crore share buyback

Majesco, a smallcap IT firm, has announced a share buyback of Rs 631 crore, at a price of Rs 845 per share. A share buyback refers to when a company buys back its own shares from investors. The company is waiting for the necessary approvals for the share buyback, and expects it to be completed by December.

Read more here.

Lakshmi Vilas Bank gets an indicative non-binding offer from Clix Group

Lakshmi Vilas Bank, on Thursday, said that it has received an indicative non-binding offer from Clix Group. A non-binding offer is used as a sales process to establish a deal between the seller and the buyer, and the agreement is not legally binding. Last month, the Chief Executive and six other directors of the bank were voted out by shareholders. The bank has been struggling to raise capital for the last few years.

Read more here.

NTPC incorporates subsidiary for energy renewal business

State-owned National Thermal Power Corporation (NTPC), on Thursday, announced that it has incorporated a subsidiary for its renewable energy business. The subsidiary, known as NTPC Renewable Energy Ltd, has been incorporated with the Registrar of Companies, NCT of Delhi & Haryana. NTPC aims to generate 39 gigawatts (GW) of its overall power capacity from renewable energy sources by 2032.

Read more here.