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Adani Power’s Net Profit Jumps Multifold to Rs 4,645 crore in Q4 – Top Indian Market News

Adani Power Q4 Results: Net profit jumps multifold to Rs 4,645 crore

Adani Power Ltd reported a multifold jump in net profit to Rs 4,645.47 crore for the quarter ended March (Q4 FY22). It had posted a net profit of Rs 13.13 crore in the corresponding quarter last year (Q4 FY21). Its revenue from operations grew 93% YoY to Rs 13,308 crore during the same period. EBITDA stood at Rs 7,942 crore in Q4, up 271% YoY. 

In Q4, Adani Power Rajasthan received nearly Rs 3,000-4,000 crore towards domestic coal shortfall claims, along with carrying cost and late payment surcharge from Rajasthan DISCOMs under a Supreme Court order.

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M&M partners with J&K Bank to offer tractor, farm equipment loans

Mahindra & Mahindra (M&M) Ltd has partnered with Jammu & Kashmir Bank to offer loans for tractors and farm machinery. J&K Bank will provide financing to prospective customers of M&M branded tractors and farm machinery via its branches. They also aim to offer improved access to affordable credit through innovative and attractive financing solutions that will help farmers acquire the latest farm equipment to boost their yields

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Welspun Corp secures order worth Rs 706 crore from IOCL

Welspun Corp Ltd (WCL) has received an order worth Rs 706 crore from Indian Oil Corporation Ltd (IOCL) of approximately 48,000 million tonnes (MT). The order includes setting up a crude oil pipeline system with a capacity of 17.5 million tonnes per annum (MTPA) from Mundra in Gujarat to Panipat Refinery in Haryana. WCL is one of the largest welded line people manufacturers in India.

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Marico Q4 Results: Net profit rises 13% YoY to Rs 257 crore

Marico Limited reported a 13.21% YoY increase in consolidated net profit to Rs 257 crore for the quarter ended March (Q4 FY22). Its revenue from operations rose 7.4% YoY to Rs 2,161 crore during the same period. Total expenses grew 7.13% YoY to Rs 1,863 crore in Q4. Revenue from the domestic market stood at Rs 1,654 crore, up 5.08% YoY. 

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Sona Comstar partners with C-Motive Tech to develop electrostatic drive motors

Sona Comstar has partnered with US-based startup C-Motive Technologies to develop electrostatic drive motors for electric vehicle (EV) applications. The startup uses electrostatic forces to build motors through a series of multiplicative gains in mechanical, electrical, and electrochemical innovations. Sona Comstar will also participate in C-Motive’s latest financing round.

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CAMS Q4 Results: Net profit rises 23% YoY to Rs 74 crore

Computer Age Management Services (CAMS) Ltd reported a 23% YoY increase in net profit to Rs 73.84 crore for the quarter ended March (Q4 FY22). Net profit fell 4.5% when compared to the previous quarter. Its revenue rose 22% YoY to Rs 243.18 crore during the same period. CAMS acts as a registrar and transfer agent to mutual funds.

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L&T secures contract for bullet train project

Larsen & Toubro (L&T) Ltd’s construction arm has secured a large contract (in the range of Rs 2,500-5,000 crore) from the National High-Speed Rail Corporation Ltd (NHSRCL). The order involves the construction of 116 route km of the high-speed ballastless track works for Mumbai-Ahmedabad High-Speed Rail (MAHSR) project. Upon completion, this slab track system will enable trains to travel at a speed of 320 kilometers per hour.

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Firstsource Solutions Q4 Results: Net profit jumps 183% YoY to Rs 132.4 crore

Firstsource Solutions Ltd (FSL) reported a 183% YoY jump in consolidated net profit to Rs 132.39 crore for the quarter ended March (Q4 FY22). Net profit fell 2.26% when compared to the previous quarter. Its total income rose 5.6% YoY (or 5.43% QoQ) to Rs 1,543.54 crore during the same period. FSL is a business process management company headquartered in Mumbai.

Dabur Q4 Results: Net profit falls 22% YoY to Rs 294 crore

Dabur India Ltd reported a 22% YoY decline in consolidated net profit to Rs 294.34 crore for the quarter ended March (Q4 FY22). The FMCG major’s revenue from operations rose 7.7% YoY to Rs 2,517.81 crore during the same period. EBITDA stood at Rs 453.6 crore in Q4, up 2.5% YoY. Dabur India’s board has declared a final dividend of Rs 2.7 crore.

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Tata Power Solar bags Rs 5,500 cr order from SJVN

Tata Power Solar has secured India’s largest solar engineering procurement and construction (EPC) order for a 1 gigawatt (GW) project worth Rs 5,500 crore from state-owned SJVN Ltd. Covering 5,000 acres of land in Rajasthan, this project aims at reducing around 22,87,128 kg of carbon emission. It is expected to generate ~2,500 million units (MU) annually.

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Google to Invest up to $1 billion in Bharti Airtel – Top Indian Market News

Google to invest up to $1 billion in Bharti Airtel

US internet giant Google has announced an investment of up to $1 billion (~Rs 7,497 crore) in partnership with Bharti Airtel. It includes a $700 million equity investment in Bharti Airtel for a 1.28% stake and up to $300 million towards potential multi-year commercial agreements. Bharti Airtel and Google will work together to build on the telecom company’s extensive offerings that cover a range of Android-enabled devices to consumers via innovative affordability programs.

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L&T Q3 Results: Net profit falls 17% YoY to Rs 2,055 crore

Larsen & Toubro (L&T) Ltd reported a 16.7% YoY decline in consolidated net profit to Rs 2,054.74 crore for the quarter ended December (Q3 FY22). Net profit increased by 13% when compared to the previous quarter. Its revenue from operations rose 11.14% YoY (or 14% QoQ) to Rs 39,562.92 crore during the same period. The company secured orders worth Rs 50,359 crore in Q3, a decline of 31% YoY.

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Chambal Fertilisers Q3 Results: Net profit falls 8% YoY to Rs 435 crore

Chambal Fertilizers & Chemicals Ltd reported a 7.56% YoY decline in consolidated net profit to Rs 435.17 crore for the quarter ended December (Q3 FY22). Its revenue from operations rose 22.4% YoY to Rs 4,743.3 crore during the same period. EBITDA stood at Rs 582.7 crore in Q3, down 25.8% YoY. The company’s board has approved a proposal to set up an Ammonium Nitrate plant at Kota (Rajasthan) for an investment of Rs 1,170 crore.

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Britannia Q3 Results: Net profit falls 19% YoY to Rs 371 crore

Britannia Industries Ltd reported a 19% YoY decline in consolidated net profit to Rs 371 crore for the quarter ended December (Q3 FY22). Net profit fell 3% when compared to the previous quarter. Its revenue from operations rose 13% YoY to Rs 3,575 crore during the same period. EBITDA stood at Rs 539 crore in Q3, down 12% YoY. Higher input costs affected the FMCG company’s margins.

Kotak Mahindra Bank Q3 Results: Net profit rises 15% YoY to Rs 2,131 crore

Kotak Mahindra Bank reported a 15% YoY increase in net profit to Rs 2,131.4 crore for the quarter ended December (Q3 FY22). Its net interest income (NII) rose 8.2% YoY to Rs 4,334 crore during the same period. The gross non-performing assets (GNPA) ratio stood at 2.71% in Q3 FY22, compared to 3.19% in Q2 FY22. The bank’s expenses stood at Rs 5,559 crore in Q3 FY22, up 10% YoY.

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Glenmark Pharma gets USFDA approval for Metronidazole gel

Glenmark Pharmaceuticals Ltd’s unit has received final approval from the US Food & Drug Administration (USFDA) to market Metronidazole Vaginal gel in the US. As per IQVIA data, the generic version of the product had achieved annual sales of ~$60.4 million during the twelve months ended November 2021.

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Marico Q3 Results: Net profit rises 1.6% YoY to Rs 317 crore

Marico Limited reported a 1.6% YoY increase in consolidated net profit to Rs 317 crore for the quarter ended December (Q3 FY22). Its revenue from operations rose 13.4% YoY to Rs 2,407 crore during the same period. Revenue from its domestic market stood at Rs 1,817 crore, up 11.6% YoY. The FMCG firm’s total expenses were up 15.4% YoY to Rs 2,022 crore. 

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HPCL expands footprint in non-fuel retailing

Hindustan Petroleum Corporation Ltd (HPCL) has announced plans to set up a chain of multi-channel retail stores at its petrol pumps. The company plans to give a push to non-fuel retailing. As part of this, HPCL has opened two more retail stores under the brand name ‘HaPpyShop’. The product range in each store has been planned to suit the tastes and preferences of the local neighbourhoods.

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Vedanta Q3 Results: Net profit rises 26% YoY to Rs 4,164 crore

Vedanta Ltd reported a 26.2% YoY increase in consolidated net profit to Rs 4,164 crore for the quarter ended December (Q3 FY22). Net profit fell 10% when compared to the previous quarter. Its total income rose 46.7% YoY to Rs 34,674 crore during the same period. Vedanta’s board has declared an interim dividend of Rs 13.5 per share.

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TVS Motor acquires Swiss e-bike maker SEMG

TVS Motor Company Ltd has acquired a 75% stake in Switzerland’s largest e-bike player Swiss E-Mobility Group (SEMG). The consideration paid for the acquisition is $100 million (~Rs 750 crore). The move is in line with TVS Motor’s strategy to expand in Europe through a portfolio of premium and technology-leading brands. The two-wheeler company plans to buy the remaining 25% stake by next year.

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Dixon Tech Q3 Results: Net profit falls 25% YoY to Rs 46 crore

Dixon Technologies Ltd reported a 25% YoY decline in net profit to Rs 46.38 crore in Q3 FY22. Its revenue from operations rose 41% YoY to Rs 3,073.25 crore during the same period. EBITDA stood at Rs 103.67 crore, up 3% YoY. Revenue from its consumer electronics segment grew 3.3% YoY to Rs 1,410.39 crore in Q3. Dixon Tech’s home appliance segment revenue fell 20% YoY to Rs 180.12 crore.

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Tata Power Reports 51% YoY Rise in Net Profit in Q2 – Top Indian Market News

Tata Power Q2 Results: Net profit rises 51% YoY to Rs 421 crore

Tata Power reported a 51% YoY increase in consolidated net profit to Rs 421.5 crore for the quarter ended September (Q2 FY22). Net profit increased by 8% compared to the previous quarter. Its revenue from operations rose 18% YoY to Rs 9,810.2 crore during the same period. Revenue from its transmission & distribution segment grew 48% YoY to Rs 6,787.4 crore. However, the revenue from its power generation segment fell 36% YoY to Rs 2,216.9 crore in Q2.

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L&T’s construction arm secures large order from CPWD

The construction arm of Larsen and Toubro (L&T) has secured a large order (in the range of Rs 2,500-5,000 crore) for its buildings and factories business from the Central Public Works Department (CPWD). The order includes the construction of Common Central Secretariat Integrated Buildings 1, 2, and 3 in Plot 137 in New Delhi, with a built-up area of approximately 48.11 lakh sq. ft. The project is scheduled to be completed in two years.

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Bajaj Finserv Q2 Results: Net profit rises 14% YoY to Rs 1,122 crore

Bajaj Finserv Ltd reported a 13.7% YoY increase in consolidated net profit to Rs 1,122.1 crore for the quarter ended September (Q2 FY22). Net profit increased by 34.75% compared to the previous quarter. Its revenue from operations rose 19.7% YoY to Rs 18,008.2 crore during the same period. Recovery gathered momentum in Q2 on the back of reopening of the economy in most states, rapid vaccinations, and continued policy support. Bajaj Finserv is the holding company for the various financial services businesses of the Bajaj Group.

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Marico Q2 Results: Net profit rises 17% YoY to Rs 309 crore

Marico Limited reported a 17.05% YoY increase in consolidated net profit to Rs 309 crore for the quarter ended September (Q2 FY22). Net profit fell 13.2% compared to the previous quarter. Its revenue from operations rose 21.6% YoY to Rs 2,419 crore during the same period. The FMCG company’s EBITDA stood at Rs 423 crore in Q2, a growth of 34.4% YoY. 

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SC bars Bharti Airtel from seeking Rs 923 crore GST refund

The Supreme Court (SC) has disallowed Bharti Airtel from seeking a Goods and Services Tax (GST) refund of Rs 923 crore. The apex court upheld the Centre’s appeal and dismissed a Delhi High Court order that allowed Bharti Airtel to claim Rs 923 crore as refund of excess GST returns filed in July-September 2017. 

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IndiGo Q2 Results: Net loss at Rs 1,435 crore

InterGlobe Aviation Ltd (IndiGo) reported a net loss of Rs 1,435.7 crore for the quarter ended September (Q2 FY22). The airline had posted a net loss of Rs 3,179 crore in the previous quarter and a net loss of Rs 1,194.8 crore in Q2 FY21. Its revenue from operations rose 104.6% YoY (or 87% QoQ) to Rs 5,608.5 crore during the same period. Earnings before interest, tax, depreciation, amortisation, and rent (EBITDAR) stood at Rs 340.8 crore in Q2, down 16.6% YoY. 

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DLF Q2 Results: Net profit rises 66% YoY to Rs 378 crore

DLF Limited reported a 66% YoY increase in consolidated net profit to Rs 378.12 crore for the quarter ended September (Q2 FY22). Net profit increased 12% compared to the previous quarter. Its revenue from operations fell 9.6% YoY to Rs 1,557 crore during the same period. The realty firm’s sales booking grew 77% YoY to Rs 1,512 crore in Q2.

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Adani Green Energy Q2 Results: Net profit jumps six-fold YoY to Rs 100 crore

Adani Green Energy Ltd (AGEL) reported a nearly six-fold YoY jump in consolidated net profit to Rs 100 crore for the quarter ended September (Q2 FY22). Its total income rose 96.5% YoY to Rs 1,411 crore during the same period. AGEL’s sale of energy grew 61% YoY to 1,901 million units (MU) in Q2. The company’s solar sales grew 41% YoY to 1,430 MU in the July-September quarter of FY22.

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Tata Motors unveils 21 commercial vehicles for cargo, passenger verticals

Tata Motors has unveiled 21 new commercial vehicles to cater to evolving needs of cargo and people transport across segments. The company has launched seven products in the medium and heavy commercial vehicles (M&HCV) segment and five products in the intermediate and light commercial segment with CNG powertrains. Moreover, the automaker has unveiled four new LCVs (Light Commercial Vehicles) to improve last-mile delivery efficiency and reduce operational costs.

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SBI Cards Q2 Results: Net profit rises 67% YoY to Rs 345 crore

SBI Cards and Payment Services reported a 67% YoY increase in consolidated net profit to Rs 345 crore for the quarter ended September (Q2 FY22). Its total income rose 7% YoY to Rs 2,695 crore during the same period. The company’s total operating cost stood at Rs 1,383 in Q2, an increase of 25% YoY. The increase in operating costs is due to higher business volumes.

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NTPC Q2 Results: Net profit falls 8% YoY to Rs 3,212 crore

State-owned NTPC Ltd reported an 8.4% YoY decline in net profit to Rs 3,211 crore for the quarter ended September (Q2 FY22). Its revenue from operations rose 14.7% YoY to Rs 28,329 crore during the same period. The surge in revenues was aided by a rise in demand for power due to the rapid reopening of the economy post the second wave and higher vaccination rates. NTPC’s tax expenses grew 89% YoY to Rs 960.5 crore in Q2.

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Govt asks IRCTC to share 50% of revenue from convenience fee

The Ministry of Railways has asked the Indian Railways Catering and Transportation Corporation (IRCTC) to share 50% of the revenue from the convenience fee with it. So far, IRCTC kept 100% of the convenience fee it charged customers for providing various services with itself. Analysts believe that this move could spark a near 50% cut in the earnings of IRCTC since the majority of its revenues come from internet ticketing services.

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Editorial

Is Marico Overly Dependent on Parachute?

Right from our childhood, a blue bottle of coconut oil might have influenced various aspects of our life. It has helped generations to ensure adequate growth and consistency of hair. Yes, today we are going to analyse the company behind this market leader. The name of the product is Parachute coconut oil, and the parent company is Marico Limited.

The main objective of our analysis is to find out whether Marico is highly dependent on the Parachute brand, or whether they have adequately diversified their Fast Moving Consumer Goods (FMCG) business portfolio. Let us first look at the current business segments of the FMCG company.

Present Verticals of Marico

  1. Coconut Oil: Parachute coconut oil is the major brand under this segment, along with Nihar oil and Oil of Malabar. Parachute has 54% of the market share in terms of total volume of coconut oil sold in India.
  2. Value-Added Oil: Products that are used to maintain the health of hair such as anti-hairfall oil, amla oil, light hair oil falls in this category.
  3. Saffola Oil & Food: All the products under the Saffola brand belong to this category. Saffola refined cooking oil, Oats, Honey, instant breakfast, Noodles are the key products. The brand has a 94% volume share in the masala oats segment. In premium refined edible oil, Saffola cooking oil has an 81% volume share.
  4. Male Grooming, Beauty & hair nourishment: This is a small vertical of the company that contributes around 2% of business revenue. But the products in this segment are well known- Setwet and Beardo. Hair creams, deodorants, and other cosmetic products are present here. Livon and Hair & Care are premium hair nourishment products.
  5. Health & Hygiene: This segment was created as part of a tactical move by the company during the Covid-19 pandemic. It caters to the rising hygiene concerns of citizens. So they introduced sanitisers and vegetable cleaning products. It contributes a mere 0.5% to Marico’s total revenue.

Now, we know the different business verticals of the company and how well they are strategically increasing their reach in different areas of the market. In their investor presentation, Marico stated that the Health and Hygiene segment will be defocused in the current financial year (FY22). This can be considered as a good sign, as the company does not want to focus on a segment where they have less experience.

Major Acquisitions and Product Launches

Let us look at some of Marico’s major acquisitions and product launches across the last decade.

  1. 2010 – Marico introduced Saffola breakfast and Oats.
  2. 2011 – The company entered the Vietnam market by acquiring ICP. X-Men (a body deodorant brand) became a major contributor.
  3. 2012 – Marico acquired Livon & Setwet
  4. 2017-18 – Invested in Beardo, which was a startup.
  5. 2018-19 – Marico launched Saffola Fittify (instant breakfast), Kavya Youth & Coco Soul (skincare)
  6. 2020 – Acquired 100% stake in Beardo. 
  7. 2020– Saffola Honey was launched.

As we can see, Marico is wisely looking for good opportunities in various geographical markets as well as launching new key products.

Marico’s Progress Over a Decade

For a company, acquisitions and product launches are inherently good aspects. Let us look at how these products are financially growing and their role in contributing to the company’s overall revenue.

Revenue from operations has increased from Rs 5,733 crore in FY15 to Rs 8,048 crore in FY21, at a CAGR of 5.8%.

Looking at the bottom line, Profit After Tax (PAT) from Rs 573 crore in FY15 reached Rs 1,162 crore in FY21, at a CAGR of 11.8%.

The graph given below shows the contribution of major segments to the revenue of Marico in percentage terms. 

The Coconut Oil segment has increased its contribution to the total revenue. Also, the Saffola brand has heavily increased its contribution to revenue from 14% in FY15 to 27% in FY21. Value-added oil had a headwind in FY21 due to the pandemic, as citizens were facing a liquidity crunch. The company may cut short their expenses by keeping out value-added oil from their priority list.

Peer Analysis

As Marico is an FMCG player, let us look at how well the company is performing among its competitors.

Profit Before Tax (PBT) is the income of the company after settling their expenses and before paying the taxes. The average PBT margin of FMCG companies stands at 15.8%. Marico has a healthy margin of 18.6%. This tells us that for every Rs 100 Marico earns as revenue, the company is able to retain Rs 18.6 as profit before paying taxes.

Conclusion

Marico definitely has a strong presence in the coconut oil and value-added oil Industry. Now, the FMCG player is trying to gain increased market share in the food industry through the Saffola brand, as well in the male and female grooming products industry through brands such as Set Wet, Beardo, Livon. It is also interesting to note that products developed and marketed by the company have a good market share (a monopoly effect). Marico often caters to a niche market where competition is low. This enables the company to have a higher profit margin in these segments.

We can conclude that Marico is trying to be versatile in their business, which in turn concretes the future business growth of the company. Their focus on acquiring digital-first brands is highly commendable. As a long-term investor myself, I will be allocating more capital from my portfolio to Marico.

Do let us know your thoughts on Marico in the comments section of the marketfeed app. Will you be adding the stock to your portfolio?

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Sun Pharma Reports 62% QoQ Rise in Net Profit in Q1 – Top Indian Market News

Sun Pharma Q1 Results: Net profit rises 62% QoQ to Rs 1,444 crore

Sun Pharmaceutical Industries reported a 62% quarter-on-quarter (QoQ) increase in net profit to Rs 1,444.17 crore for the quarter ended June (Q1 FY22). It had posted a net loss of Rs 1,655.6 crore in the corresponding quarter last year (Q1 FY21). Its revenue from operations rose 28% YoY to Rs 9,719 crore in Q1 FY22. Revenue from its India formulations business increased by 39% YoY (or 24% QoQ) to Rs 3,308.4 crore during the same period. Sun Pharma launched 13 new products in the Indian market in Q1.

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UPL Q1 Results: Net profit rises 23% YoY to Rs 678 crore

UPL Limited reported a 23% YoY increase in consolidated net profit to Rs 678 crore for the quarter ended June (Q1 FY22). Net profit has increased by 36% when compared to the previous quarter. Its revenue from operations rose 9% YoY to Rs 8,515 crore during the same period. The agrochemical manufacturer posted a 6% YoY growth in total sales volumes, aided by double-digit growth in the Latin American and Indian markets. 

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Lupin acquires Australia-based Southern Cross Pharma 

Lupin Limited has acquired Australia-based Southern Cross Pharma Pty Ltd (SCP), a generic drug manufacturer. As part of the transaction, Lupin’s Australia subsidiary will gain access to over 60 registered products having sales of over $22 million (~Rs 163 crore). Established in 2000, Southern Cross Pharma is engaged in the development, registration, and distribution of generic pharmaceutical products. This acquisition will increase Lupin’s value proposition and market share in the Australian market.

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Indian Oil Corp Q1 Results: Net profit jumps three-fold to Rs 5,941 crore

Indian Oil Corporation (IOC) reported a 211% YoY jump in standalone net profit to Rs 5,941.37 crore for the quarter ended June (Q1 FY22). Net profit has declined by 32.3% when compared to the previous quarter. Its revenue from operations rose 74% YoY to Rs 1.55 lakh crore during the same period. IOC’s gross refining margin (GRM) stood at $6.58 per barrel in Q1 FY22, compared to $1.98 per barrel in Q1 FY21. 

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Dana invests $18 million in Ashok Leyland’s e-bus arm

Dana Inc. has acquired a 1% stake in UK-based Switch Mobility for $18 million (~Rs 13 crore). Switch Mobility is Ashok Leyland Ltd’s electric commercial vehicle subsidiary. US-based Dana will be the preferred supplier of electric drivetrain components for Switch Mobility’s e-bus and EV commercial vehicle offerings. This includes e-axles, gearboxes, motors, software & controls, and electronics cooling systems. Switch Mobility will launch its first electric light commercial vehicle (e-LCV) in India by the end of December 2021.

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Bandhan Bank Q1 Results: Net profit falls 32% YoY to Rs 373 crore

Bandhan Bank reported a 32% YoY decline in net profit to Rs 373.10 crore for the quarter ended June (Q1 FY22). Its total income rose 20.4% YoY to Rs 2,647.5 crore during the same period. The gross non-performing assets (GNPA) ratio increased to 8.2% in Q1 FY22, compared to 6.8% in Q4 FY21. Provisions for bad loans and contingencies rose 62% YoY to Rs 1,374.87 crore in Q1 FY22.

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Marico Q1 Results: Net profit falls 6% YoY to Rs 365 crore

Marico Limited reported a 5.9% YoY decline in consolidated net profit to Rs 365 crore for the quarter ended June (Q1 FY22). Net profit has increased by 60.79% when compared to the previous quarter. Its revenue from operations rose 31% YoY to Rs 2,525 crore during the same period. EBITDA increased by 3% YoY to Rs 481 crore in Q1. The FMCG company posted volume growth of 21% YoY. The Saffola franchise (comprising of edible oils and food) delivered 24% YoY volume growth in Q1.

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Ashoka Buildcon secures order worth Rs 600 crore

Ashoka Buildcon Ltd has secured a contract for the development of Grand Port Hospital in Mumbai to a 600-bed super specialty hospital. The company will also construct a medical college with residential quarters of Zodiac Healotronics. The accepted EPC contract value of the project is Rs 600 crore.

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JSW Energy Q1 Results: Net profit declines 6% YoY to Rs 201 crore

JSW Energy Ltd reported a 5.6% YoY decline in consolidated net profit to Rs 201 crore for the quarter ended June (Q1 FY22). Net profit has increased by 88.65% when compared to the previous quarter. Its total income declined by 1.44% YoY to Rs 1,859.53 crore during the same period. JSW Energy’s power generation stood at 5,141 million units in Q1 FY22, compared to 4,930 million units in Q1 FY21.

KEC International secures new orders worth Rs 1,503 crore

KEC International Ltd has received new orders worth Rs 1,503 crore across various businesses. Its transmission and distribution (T&D) business has secured orders of Rs 866 crore for T&D projects in India, SAARC, Africa, and the Americas. The company’s railways business has won an order worth Rs 321 crore for overhead electrification and associated works. Its civil business has secured orders of Rs 176 crore for infrastructure works in the Metals & Mining, Data Centre, and FMCG segments in India.

Exide Industries Q1 Results: Net profit at Rs 32 crore

Exide Industries Ltd reported a consolidated net profit of Rs 32.88 crore for the quarter ended June (Q1 FY22). It had posted a net loss of Rs 10.68 crore in the corresponding quarter last year (Q1 FY21). Net profit has declined by 89.7% when compared to the previous quarter (Q4 FY21). Its revenue from operations rose 40.2% YoY to Rs 3,543 crore in Q1 FY22.

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Rolex Rings IPO subscribed 130 times on final day of bidding 

The Rs 731 crore IPO of Rolex Rings Ltd was subscribed 130.44 times on the final day of bidding. Retail investors have subscribed 24.49 times against their reserved portion. Non Institutional investors (NIIs) and Qualified Institutional Buyers (QIBs) have subscribed 360.11 times and 143.58 times, respectively, against their reserved portions. 

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RIL Reports 108% YoY Jump in Net Profit in Q4 – Top Indian Market News

Reliance Industries Q4 Results: Net profit at Rs 13,227 crore

Reliance Industries Limited (RIL) reported a 108% YoY increase in consolidated net profit at Rs 13,227 crore for the quarter ended March (Q4). On a quarterly basis, net profit has grown 1%. The consolidated revenue from operations rose 11% YoY to Rs 1,54,896 crore during the same period. RIL’s board has announced a final dividend of Rs 7 per share.

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IndusInd Bank Q4 Results: Net profit jumps three-fold to Rs 876 crore

IndusInd Bank Limited reported a three-fold (~190%) year-on-year (YoY) increase in net profit to Rs 876 crore for the quarter ended March (Q4). Net interest income (NII) rose 9.4% YoY to Rs 3,535 crore during the same period. [NII is the difference between the income interest a bank receives on assets such as loans, and the interest it pays to depositors] The gross non-performing assets (NPA) ratio stood at 2.67% in Q4, compared with 2.93% in Q3 FY21. Total provisions declined 23.5% YoY to Rs 1,866 crore during the quarter. IndusInd Bank’s board has announced a dividend of Rs 5 per share.

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Marico Q4 Results: Net profit rises 14% YoY to Rs 227 crore

Marico Limited reported a 14.07% YoY increase in consolidated net profit to Rs 227 crore for the quarter ended March (Q4). Its revenue from operations rose 34.49% YoY to Rs 2,012 crore during the same period. This was driven by strong volume growth of 25% YoY in the domestic business. The FMCG firm’s operating margin was lower at 17.6% in Q4 due to high input costs. For the financial year ended March 31, 2021 (FY21), Marico’s net profit has increased by 14.96% YoY to Rs 1,199 crore. 

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Atul Q4 Results: Net profit rises 24% YoY to Rs 141 crore

Atul Limited reported a 23.9% YoY increase in consolidated net profit to Rs 175.05 crore for the quarter ended March (Q4). Revenue from operations rose 15.6% YoY to Rs 1,115.93 crore during the same period. Its Life Science Chemicals segment posted a 22.6% YoY rise in revenues at Rs 311.89 crore. The company’s board has approved a dividend of Rs 20 per share. Atul Ltd is an integrated chemical company headquartered in Valsad, Gujarat.

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Nestle buys vitamin brands from KKR for $5.75 billion

Nestle SA has agreed to buy vitamin maker Bountiful Co. for $5.75 billion (~Rs 42,580 crore) from private equity firms KKR & Co. and Carlyle. Through this acquisition, Nestle aims to become a world leader in the field of minerals and supplements. The Covid-19 pandemic has boosted demand for such pills from health-conscious consumers. This acquisition would double Nestle’s e-commerce revenue from supplements to about $1 billion this year.

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Dalmia Bharat Q4 Results: Net profit at Rs 640 crore

Dalmia Bharat Limited reported a sharp rise in consolidated net profit (~2,310% YoY) to Rs 640 crore for the quarter ended March (Q4). It had posted a net profit of Rs 24 crore in the corresponding period last year (Q4 FY20). Revenue from operations rose 32.13% YoY to Rs 3,281 crore in Q4 FY21. The company’s board has recommended a dividend of Rs 1.33 per share.

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Escorts to temporarily shut down manufacturing operations amid Covid-19 surge

Amidst the surge in Covid-19 cases in India, Escorts Limited has decided to temporarily shut down its manufacturing operations on a selective basis between May 1 and May 3. The farm equipment manufacturer said that the safety and health of its employees and the wellness of its business ecosystem are of utmost importance. Escorts ensured that there will be no impact on fulfilling customer demand, as it has sufficient inventory in hand.

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Vodafone Idea’s GIGAnet 4G delivers highest network speed in Q4: Ookla

According to speed testing firm Ookla, Vodafone Idea’s (Vi) 4G network GIGAnet has delivered the fastest download and upload speeds across India for the third consecutive quarter in Q4 (January-March 2021). Additionally, Vi has the fastest average 4G download speeds in 135 Indian cities, including Mumbai, Delhi NCR, and Kolkata. This comes at a time when data usage has surged exponentially as more people are staying home due to a fresh wave of Covid-19 cases in India.

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Yes Bank Q4 Results: Net loss at Rs 3,788 crore

Yes Bank reported a net loss of Rs 3,787.75 crore for the quarter ended March (Q4). The bank had posted a net loss of Rs 3,668 crore in the corresponding period last year (Q4 FY20).  Net interest income (NII) declined 23% YoY to Rs 1,274 crore in Q4 FY21. The gross non-performing assets (NPA) ratio stood at 15.41%, compared to 15.36% in the previous quarter. Yes Bank’s deposits grew 11% quarter-on-quarter (QoQ) and 55% YoY to Rs 1,62,947 crore in Q4 FY21.

Read more here.  

Ajanta Pharma Q4 Results: Net profit rises 23% YoY to Rs 159 crore

Ajanta Pharma reported a 23% YoY increase in consolidated net profit to Rs 159 crore for the quarter ended March (Q4). Its revenue from operations 11% YoY to Rs 757 crore during the same period. For the financial year ended March 31, 2021 (FY21), net profit has increased to Rs 654 crore, compared with Rs 468 crore in the previous financial year (FY20).

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Bank of India’s board approves raising capital up to Rs 4,800 crore

The Board of Directors of Bank of India (BOI) has approved raising capital aggregating to Rs 4,800 crore through the issuance of shares or bonds. The lender will issue equity shares in the form of Follow-on Public Offer (FPO)/Qualified Institutional Placement (QIP) or issue Basel III compliant Tier-1 bonds worth up to Rs 3,000 crore. BOI will further issue Basel III compliant Tier-2 bonds worth up to Rs 1,800 crore. The fundraising proposal is subject to shareholders’ approval.

Read more here.

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Market News Top 10 News

India’s Manufacturing PMI Falls to Lowest in Seven Months – Top Indian Market News

India’s manufacturing PMI declines to 7-month low of 55.4 in March

India’s factory activity grew at its weakest pace in seven months in March, as renewed lockdowns to curtail an increase in Covid-19 cases dampened domestic demand and output. The IHS Markit Purchasing Managers’ Index (PMI) for India’s manufacturing sector declined to 55.4 in March from 57.5 in February. PMI is a month-on-month calculation, and a value of more than 50 represents an expansion when compared to the previous month.

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Adani Ports to acquire remaining 25% stake in Krishnapatnam Port

Adani Ports & Special Economic Zone Ltd (APSEZ) will acquire a 25% stake of Vishwa Samudra Holding in Krishnapatnam Port for Rs 2,800 crore. The company currently holds a 75% stake in Krishnapatnam Port. With this latest acquisition, the port will become a wholly-owned subsidiary of APSEZ. The transaction is expected to be completed within three months. Krishnapatnam Port is located in the Nellore district of Andhra Pradesh. It is an all-weather, deep-water port, with a current capacity of 64 million tonnes per annum (MTPA).

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Panacea Biotec to make 100 million doses of Sputnik V vaccine

Panacea Biotec Limited has signed an agreement with the Russian Direct Investment Fund (RDIF) for manufacturing 100 million doses of Sputnik V vaccine every year. According to a study conducted by The Lancet, Sputnik V showed an efficacy rate of 91.6%. The production of the vaccine at Panacea Biotec’s manufacturing units will help facilitate its global supply to the international partners of RDIF.

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Indian Oil Corp buys its first Johan Sverdrup crude cargoes: Report

As per a report from Reuters, Indian Oil Corporation (IOC) has bought 4 million barrels of  Norway’s Johan Sverdrup crude for the first time via a tender. IOC is looking to speed up the diversification of crude imports. The report states that IOC will take delivery of 2 million barrels each of the North Sea crude in May and June. The move follows the government’s call to cut dependence on crude from the Middle East due to the standoff between India and the world’s largest crude importer— Saudi Arabia.

Read more here.

Tech Mahindra to launch blockchain solution for BFSI clients

Tech Mahindra Ltd has partnered with Netherlands-based Quantoz to launch a ‘stablecoin-as-a-service’ blockchain solution for global banks and financial institutions. Quantoz is a leading blockchain application incubator. Tech Mahindra will help customers integrate Quantoz’ NEXUS platform into their legacy infrastructure. This will enable automated token, crypto, and fiat transaction processing for a variety of banking and payment functions.

Read more here.

Bharti Airtel partners with Apollo 24/7 to offer e-healthcare services

Bharti Airtel has partnered with Apollo 24/7 to offer a wide range of e-healthcare services to its customers as part of their exclusive ‘Thanks’ benefits. Under the partnership, Airtel Platinum and Gold customers will get complimentary membership to the Apollo Circle. This will include virtual consultation with top doctors and specialists from Apollo, as well as online test booking facilities. It will also offer home sample collection facilities and home delivery of medicines with cashback benefits.

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HDFC Bank Q4 advances grow 14% Rs 11,32,000 crore

HDFC Bank said its advances aggregated to approximately Rs 11,32,000 crore as of March 31, 2021 (Q4 FY21). This is a growth of 13.9% over Rs 9,93,700 crore as of March 31, 2020. Deposits grew by 16.3% YoY to Rs 13,35,000 crore in Q4. Domestic retail loans were up by 7.5% YoY, and domestic wholesale loans increased by 21% YoY during the same period.

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Marico expects to deliver low double-digit bottomline growth in Q4

Marico Limited said it expects low double-digit bottomline growth in the fourth quarter of the financial year 2020-21, after being impacted by the Covid-19 pandemic. The FMCG firm has witnessed healthy momentum building across its key portfolios. The company said it expects its operating margin to fall in Q4 due to input cost pressures. In Q4 FY21, the fast-moving consumer goods (FMCG) sector continued to exhibit improving demand trends as quarterly economic growth has moved into positive territory and the Covid-19 vaccination rollout gathered pace.

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GAIL India to invest in startups through ‘Pankh’

GAIL (India) Limited has launched a new initiative— ‘Pankh’, which aims to support startups in identified focus areas. The company has opened a fresh round for solicitation of investment proposals from startups that operate in natural gas, petrochemicals, energy, project management, bio-manure marketing, nano-materials, IoT, data mining, environment, and healthcare. The Solicitation Round will be open till May 30, 2021.

Read more here.

Ircon International’s board approves bonus issue of 1:1

The Board of Directors of Ircon International has approved the issuance of bonus shares in the ratio 1:1. A 1:1 bonus issue means that exiting shareholders will receive one additional share for each share held in the firm. The record date for the bonus share issue is yet to be announced. State-owned Ircon International is an engineering and construction company specialized in transport infrastructure.

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Editorial

Marico’s Saffola Oodles vs Maggi and Yippee. Can Everyone Win?

Most of us love to have instant noodles every now and then. It is very easy to make and comes in a variety of flavours. Brands such as Maggi have always been popular amongst youngsters due to their low prices, convenience, and taste. The instant noodles market in India is growing rapidly and is becoming more competitive than ever. Recently, Marico Limited announced its plans of entering this market with its highly promising ‘Saffola Oodles’. Will the company be able to disrupt the market? Let us find out.

The Instant Noodles Market in India: An Overview

Hindustan Unilever Ltd (HUL) was one of the first companies that completely dominated the food market in India. Ever since its incorporation in 1933, HUL launched a wide range of high-quality packaged food items. Much later, firms such as ITC, Marico, Britannia, Godrej Consumer, and Dabur began to focus on expanding their presence in the food market as well. All these firms have established large portfolio brands or food products that have become a part of our daily consumption habits. These FMCG (fast-moving consumer goods) companies have spent crores on advertising and promotion activities, which have time and again worked in their favour. However, most companies mentioned above did not initially see the potential of the instant noodles market.

Instant Noodle Brands

An important company in the FMCG industry is Nestlé India, which has established itself as the market leader in the chocolate, coffee, and instant noodles segments. Since its launch in the 1980s, Nestlé Maggi Noodles has become the preferred brand amongst most Indian households. It had a 100% market share in India for almost two decades. You may recall that Maggi was banned in 2015 after tests revealed that it contained excessive lead. Despite this setback, Maggi made a strong comeback soon after the ban was lifted. It continues to contribute significantly to the overall sales revenues of Nestlé India. 

Wai Wai is another major brand of instant noodles that was launched in India in 2003. It belongs to the Thai Preserved Food Factory and Nepal-based Chaudhary Group. During that period, Wai Wai became a strong competitor to Maggi. Later in 2010, ITC launched Sunfeast Yippee and caused quite a stir in the instant noodles market. Around 2013, HUL launched Knorr Soupy Noodles, which also became widely popular. All these brands offer a wide variety of flavours and healthy options. Each of them has a strong customer base in India.

Currently, the instant noodles market in India is a Rs 9,000-crore segment within the food category. Maggi controls more than half of this fast-growing market.

Graph showing the market share secured by brands in the instant noodles market in India (as of 2020). 

The Launch of Saffola Oodles

Marico Limited has been constantly expanding its product portfolio over the past year. The FMCG firm recently launched honey, kadha (a mix of herbs and spices used for boosting immunity), and chyawanprash in its food category. The company felt it was time to make an entry into the high-potential instant noodles segment as well. Thus, in February 2021, Marico announced the launch of instant noodles under its Saffola brand. With this launch, the company is looking to strengthen its presence in the healthy, ready-to-cook snacking category. Oodles has been differentiated from Maggi as it comes in the form of ‘rings’ and will take 5 minutes to make.

Marico has pitched ‘Saffola Oodles’ as a much healthier option compared to the present brands available in the market. Their noodles are made from wholegrain oats and wheat, and will not contain artificial preservatives. The company said its primary focus will be on building a healthy segment within the overall market. However, a point to be noted is that both Maggi and Sunfeast Yippee also come in wheat and oats versions.

Another important factor to be considered is pricing. Marico has priced Saffola Oodles at Rs 20 for a 46-gram pack. Notably, a 73-gram pack of Maggi costs only Rs 25, while a 70-gram pack of Sunfeast Yippee is sold for Rs 20. Thus, we can clearly see that Maggi and Yippee are cheaper. Moreover, Saffola Oodles will initially be launched only through e-commerce channels. It will be available on Saffola Stores, Amazon, BigBasket, Grofers, and Flipkart. This may work in their favour, as more consumers are buying groceries and essential items through online platforms (especially in cities).

Conclusion

As per a report from Euromonitor International, the instant noodles market is expected to be worth more than Rs 12,000 crore by 2022. Thus, there is no doubt that more players would want to obtain a share of this rapidly-growing market. We are likely to see more FMCG firms enter this market in the near future and launch competitive campaigns. 

Factors such as the ‘Saffola’ brand name and Marico’s strong distribution network are likely to help boost sales for their new product. The company is also relying heavily on the ‘healthy’ aspect of the noodles. However, its success would ultimately depend on taste and convenience. The quality of their promotions or advertising campaigns will also play a huge role in driving sales. Let us look forward to seeing if Marico becomes successful in their latest venture. FMCG is a market where everyone can win. So if it a good product, then Marico’s new offering will surely help revenue numbers.

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Market News Top 10 News

Jubilant Foodworks To Buy Stake In Master Franchisee Of Domino’s Pizza – Top Indian Market News

Jubilant Foodworks to acquire stake in master franchisee of Domino’s Pizza in 4 countries

Jubilant Foodworks Ltd will acquire Fides Food Systems Coöperatief U.A., Netherlands—the beneficial owner of 32.81% of equity shares in DP Eurasia—in an all-cash deal amounting to nearly £24.8 million (~Rs 252 crore). The stake will be acquired through its subsidiary, Jubilant Foodworks Netherlands B.V. DP Eurasia is the master franchisee of Domino’s Pizza in four countries- Turkey, Russia, Azerbaijan, and Georgia.

Read more here.

Marico launches instant noodles under Saffola brand

Marico Limited has announced its entry into the instant noodles segment with the launch of ‘Saffola Oodles’. With this launch, the FMCG major said it is looking to strengthen its presence in the healthy, ready-to-cook snacking category under the Saffola brand. Saffola Oodles will be launched through e-commerce channels and will be available on Saffola Stores, Amazon, BigBasket, and Flipkart.

Read more here.

Muthoot Finance plans to raise Rs 6,000 crore through bonds

Muthoot Finance said its board has approved a proposal to raise up to Rs 6,000 crore by issuing non-convertible debentures (NCDs). The funds would be raised through a private placement of redeemable NCDs, which will be issued in one or more tranches.

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Dr Reddy’s initiates process for emergency use approval of Sputnik V vaccine in India

Dr Reddy’s Laboratories has initiated the process with the Drugs Controller General of India (DCGI) for emergency use authorisation of Sputnik V vaccine in India. The pharma company will present the safety profile of Phase-2 study and interim data of Phase-3 study, which is expected to be completed by February 21. Sputnik V has demonstrated an efficacy rate of 91.6% in an interim analysis of Phase-3 clinical trials conducted in Russia.

Read more here.

Ashok Leyland commences production of buses at new plant in Vijayawada

Ashok Leyland has started the commercial production of buses at its new plant, located in Vijayawada, Andhra Pradesh. The production facility has the capacity to manufacture 4,800 buses every year. The new plant is a complete green facility, with rooftop solar panels and battery-operated vehicles for in-plant movement.

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Board of Savita Oil Technologies approves buyback plan

The Board of Directors of Savita Oil Technologies Ltd has approved the buyback of up to 2.51 lakh fully paid-up equity shares (of the face value of Rs 10 each) at Rs 1,400 per share. The total buyback size is Rs 35.14 crore. Savita Oil Technologies is a leading petroleum specialities company based in Mumbai.

Aurobindo Pharma gets USFDA approval for generic Droxidopa capsules

Aurobindo Pharma has received final approval from the US Food & Drug Administration (USFDA) to manufacture and market Droxidopa capsules. The capsules are indicated for the treatment of orthostatic dizziness and lightheadedness in patients with symptomatic neurogenic orthostatic hypotension (low blood pressure). According to IQVIA data, the approved product has an estimated market size of $352 million (~Rs 2,552 crore) for the twelve months ended December 2020. 

Pharma companies Lupin and Zydus Cadila have also received final approval from the USFDA for marketing Droxidopa capsules.

Read more here.

Steel Strips Wheels receives orders worth €53,000 from Europe

Steel Strips Wheels Ltd (SSWL) has received export orders worth over €53,000 (~ Rs 46.62 lakh) from Europe. This includes an order of nearly 5,000 wheels for the EU Caravan market. The orders will be executed in April 2021 from the company’s plant in Chennai. SSWL is a leading manufacturer of steel wheel rims for various segments of the automobile industry. 

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V-Guard Industries promoter sells shares worth Rs 90 crore to fund social cause

Kochouseph Chittilappilly, the promoter and ex-chairman of V-Guard Industries, has sold 40 lakh shares in the company worth Rs 90 crore to fund social causes. He has raised funds for a signature project under K Chittilappilly Foundation (KCF), which aims to assist entrepreneurs who face shortage of funds to scale up their businesses.

Read more here.

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Market News Top 10 News

HUL’s Q3 Profit Jumps 19% YoY to Rs 1,921 crore – Top Indian Market News

HUL Q3 Results: Net profit rises 19% YoY to Rs 1,921 crore

Hindustan Unilever Ltd (HUL) reported an 18.8% YoY increase in net profit to Rs 1,921 crore for the quarter ended December (Q3). The FMCG firm’s revenue rose 20.94% YoY to Rs 11,862 crore during the same period. Its domestic volume growth jumped 7% in Q3. The company’s strong performance was led by double-digit growth in its homecare product segment, while its beauty and personal care segment clocked a 9% YoY rise in revenues. HUL stated that rural growth continued to outpace urban during the quarter and is growing in double digits. 

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Hero MotoCorp to enter Mexican market; enters into partnership with Grupo Salinas

Hero MotoCorp Ltd announced that it will soon commence operations in Mexico. The company has entered into a distribution agreement with Grupo Salinas (a group of companies founded by Mexican entrepreneur Ricardo Salinas). In the first phase of operations, Hero MotoCorp will launch 9 products. This includes motorcycles for work (100cc), street (125cc), premium (150cc,160cc), as well as scooters.

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Marico Q3 Results: Net profit rises 13% YoY to Rs 312 crore

Marico Ltd reported a 13% YoY increase in consolidated net profit to Rs 312 crore for the quarter ended December (Q3). The FMCG firm’s revenue rose 16.34% YoY to Rs 2,122 crore during the same period. The company’s performance in Q3 was driven by strong domestic volume growth of 15% and a constant currency growth of 8% in the international business. 

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NALCO announces Rs 749 crore share buyback plan

National Aluminium Company’s (NALCO) board has approved the buyback of 13.03 crore shares for about Rs 749.10 crore. The shares will be bought back at Rs 57.5 per share, which is a 24.5% premium over Monday’s closing price of Rs 46.15. NALCO has fixed February 8 as the record date to ascertain the eligibility of shareholders for the buyback of equity shares.

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Jyothy Labs Q3 Results: Net profit rises 18% YoY to Rs 53 crore

Jyothy Labs Ltd reported an 18% YoY increase in consolidated net profit to Rs 53.2 crore for the quarter ended December (Q3). The FMCG firm’s revenue from operations rose 13.3% YoY to Rs 477 crore during the same period. Jyothy Labs stated that the revival of consumer sentiment is reflecting in the company’s performance across its brand portfolio. The company has witnessed demand acceleration in general trade and e-commerce platforms in Q3.

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Sterling and Wilson Solar commissions 25 MW solar energy project in Oman

Sterling and Wilson Solar Ltd (SWSL) has commissioned a 25 megawatt (MW) solar project in Oman. The project was awarded to SWSL by global energy company Shell. The solar project, located on a 50-hectare site within Sohar Freezone, will save 25,000 tonnes of carbon emissions annually. 

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India Cements Q3 Results: Net profit at Rs 67.90 crore

India Cements Ltd reported a consolidated net profit of Rs 67.90 crore for the quarter ended December (Q3). It had posted a net loss of Rs 8.79 crore during the corresponding period in FY20. The company’s revenue from operations declined 4.79% YoY to Rs 1,184.68 crore in Q3 FY21. The company stated that the Covid-19 pandemic had severely impacted its normal business operations.

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Dr. Reddy’s Labs terminates Covid-19 treatment study in Kuwait

Dr. Reddy’s Laboratories has terminated its clinical study of Fujifilm Holdings’ Covid-19 treatment Avigan in patients with moderate to severe symptoms in Kuwait. This comes after data from the Kuwait trial showed that the difference in time taken by Avigan and a placebo to resolve a sustained absence of oxygen in the tissues was not significant enough to continue the trial. Dr. Reddy’s stated that a late-stage North American trial of Avigan in patients with mild to moderate Covid-19 will continue.

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Canara Bank Q3 Results: Net profit at Rs 739 crore

Canara Bank reported a consolidated net profit of Rs 739.20 crore for the quarter ended December (Q3). The state-owned bank had reported a net profit of Rs 406.43 crore during the corresponding period in FY20. Net interest income (NII) grew 14.58% YoY to Rs 6,081 crore in Q3 FY21. Provisions for bad loans and contingencies stood at Rs 4,327.34 crore, compared with Rs 1,814.32 crore in Q3 FY20.

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Axis Bank Q3 Results: Net profit falls 36% YoY to Rs 1,117 crore

Axis Bank Ltd reported a 36% YoY decline in net profit to Rs 1,116.6 crore for the quarter ended December (Q3). The bank’s net interest income (NII) rose 14% YoY to Rs 7,372.7 crore during the same period. Provisions increased by 32.7% YoY to Rs 4,604.28 crore. Axis Bank’s gross non-performing asset (NPA) ratio stood at 3.44%, compared with 4.18% in Q2.

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Aditya Birla Fashion to acquire 51% stake in Sabyasachi for Rs 398 crore

Aditya Birla Fashion and Retail Ltd (ABFRL) has announced a strategic partnership with designer brand Sabyasachi, by signing a definitive agreement for acquiring a 51% stake in the Sabyasachi brand. The cost of acquisition or the price at which the shares are acquired will be approximately Rs 398 crore. The indicative time period for completion of the acquisition is 30-45 days.

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Tata Elxsi partners with Syntiant to provide low-power edge AI device development for voice applications

Tata Elxsi and US-based Syntiant Corp. have announced a collaboration to help manufacturers design and develop low-power always-on voice applications across multiple product categories. Some of these categories include smart home devices and consumer electronics, along with industrial & automotive use cases. The developed application aims to provide end-to-end solutions and services for customers using Syntiant’s deep learning Neural Decision Processors.  

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Stove Kraft IPO subscribed 2.93 times on Day 2

The initial public offering (IPO) of Stove Kraft was subscribed 2.93 times on the second day of bidding. The IPO has received bids for 1.72 crore equity shares, against an offer size of 58.94 lakh equity shares. The reserved portion for retail investors was subscribed 13.07 times. The portion set aside for non-institutional investors was subscribed 1.85 times. Qualified institutional investors have put in 8.15% bids against the reserved portion.

Read more here.

To know more about the IPO, click here.

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Market News Top 10 News

India’s Manufacturing PMI Remains Stable in December – Top Indian Market News

India’s manufacturing PMI in expansionary zone for fifth straight month

Aided by improved domestic demand, business activity in India’s manufacturing sector continued to recover in December 2020. IHS Markit’s Manufacturing Purchasing Managers Index (PMI) rose from 56.3 in November to 56.4 in December. The loosening of Covid-19 restrictions, strengthening demand, and improved market conditions had led to an increase in factory orders during December. PMI is a month-on-month calculation, and a value of more than 50 represents an expansion when compared to the previous month.

Read more here.

SII to sell first 100 million doses of Covid-19 vaccine at Rs 200 per dose

Serum Institute of India (SII), the manufacturer of the Covishield vaccine, has announced that it plans to charge a special price of Rs 200 per dose for the first 100 million shots that it supplies to the government. Adar Poonawalla (the CEO of SII), stated that his firm is making around 50-60 million doses a month of the AstraZeneca-Oxford vaccine, which is cheaper than the one developed by Pfizer-BioNTech. It is also easier to store and transport. He further said that SII plans to price the vaccine at Rs 1,000 per dose in the open market if the government allows it to do so.

Read more here.

No plans to enter contract farming, won’t purchase any agricultural land: Reliance Industries

Reliance Industries Limited (RIL) on Monday said it has no plans to enter contract or corporate farming and is committed to empowering farmers. RIL stated that it never bought agricultural land for corporate or contract farming and had no plans to do so either. RIL further said that its subsidiary, Reliance Retail, does not purchase food grains directly from farmers. 

Over the past few weeks, around 1,500 mobile towers and telecom gear owned by RIL’s Jio were vandalised in Punjab, allegedly by farmers. It was reported that farmers were angry over the company’s perceived role in framing three agricultural laws recently passed by Parliament. RIL also said it has filed a writ petition in the Punjab and Haryana High Court against vandalism of its communication towers.

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Jindal Steel & Power posts record sales, production numbers in December

Jindal Steel and Power Ltd (JSPL) posted a record 30% YoY jump in its standalone production and 25% YoY growth in sales during December 2020. The company’s total production from its plants in India was at 7.27 lakh tonne (LT) in December, as compared to 5.59 LT during the same month in 2019. The firm’s standalone sales were at 7.11 LT during the same month, as against 5.67 LT in December 2019. JSPL said the company recorded its highest ever production and sales numbers in December 2020, as well as in the October-December period.

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Income Tax Department raids 15 locations of Zee Entertainment

The Income Tax (I-T) Department has conducted a search and survey at 15 locations of Zee Entertainment Enterprises Ltd (ZEEL). The searches are based on alleged tax evasion data submitted by the Directorate General of GST Intelligence to the I-T department. A spokesperson for ZEEL stated that concerned officials of the company are providing all the required information and extending complete co-operation.

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L&T Hydrocarbon Engineering secures order worth over Rs 7,000 crore from HPCL Rajasthan Refinery

L&T Hydrocarbon Engineering (LTHE) has bagged an order worth over Rs 7,000 crore from HPCL Rajasthan Refinery Ltd (HRRL). The engineering, procurement, construction, and commissioning (EPCC) contract is for setting up a Dual Feed Cracker Unit (DFCU) for the Rajasthan Refinery Project at Barmer, Rajasthan. HRRL is a joint venture between Hindustan Petroleum Corporation (HPCL) and the Government of Rajasthan. 

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GMR Hyderabad, Dubai Airports launch global vaccine supply corridor

GMR Hyderabad International Airport Ltd and GMR Hyderabad Air Cargo have signed a Memorandum of Understanding (MoU) with Dubai Airports to build an exclusive vaccine air freight corridor product called HYDXB-VAXCOR (Hyderabad to Dubai Global Vaccine Corridor). They will prioritise the temperature-sensitive vaccine shipments moving between GMR Hyderabad and Dubai Airports for further connections to various continents for vaccine customers and logistics stakeholders. Hyderabad is the world’s emerging vaccine capital, with five major vaccine producers in the vicinity.

Read more here.

Bajaj Auto sales rise 11% in December at 3.72 lakh units

Bajaj Auto Ltd, on Monday, reported an 11% YoY increase in total sales at 3,72,532 units in December 2020. The company had sold a total of 3,36,055 units in December 2019. Total motorcycle sales were at 3.38 lakh units in December, as compared to 2.84 lakh units in December 2019. Exports jumped 27% to 2.32 lakh units, as compared to 1.82 lakh units in the same month a year ago.

Read more here.

Govt to divest 26% stake in BEML, invites bids till March 1

The Indian Government has invited preliminary bids for the strategic sale of a 26% stake, along with the transfer of management control, in BEML Limited. Bidders can submit their Expression of Interest (EoI) for buying the stake in BEML by March 1. SBI Capital Markets Limited has been appointed as the transaction adviser to advise and manage the strategic disinvestment process. BEML Ltd is engaged in the manufacturing and supply of equipment for mining, construction, defence, and rail projects. 

Read more here.

Marico reports double-digit volume growth in Q3 FY21

Marico Ltd on Monday said it has witnessed a faster than expected recovery in consumer sentiment in India, aided by the festival season and a declining Covid-19 graph. The FMCG major’s Indian business posted a double-digit volume growth, while revenue growth was at par with volume expansion. The company stated that it has witnessed strong performance across its portfolio, with general trade continuing to grow healthily.

Read more here.

Cochin Shipyard declares interim  dividend of Rs 9 per share

The Board of Directors of Cochin Shipyard Ltd has declared an interim dividend of Rs 9 per equity share of Rs 10 each, for the financial year 2020-21. The company has fixed January 14, 2021, as the record date for the interim dividend. The dividend will be payable to the eligible shareholders on or before February 2, 2021.

Read more here.

Categories
Editorial

The Honey Scam – All You Need to Know

The Covid-19 pandemic has created a necessity to improve our immunity. Many people started taking vitamin tablets, while others turned to a more natural alternative. This is when we saw an increase in the consumption of honey all over the world. It is one of the best remedies for a sore throat, due to its antibacterial properties. Indian brands used this as an opportunity to ramp up their honey production. They even came up with interesting marketing campaigns to improve sales. 

However, a shocking report from CSE was released last week, which claims that major Indian brands are involved in adulteration of honey! How pure is the honey that we have been consuming all this while? Have the companies been selling a cheap alternative? Let us understand the details surrounding these latest revelations.

The CSE Investigation

The Centre for Science and Environment (CSE) is a not-for-profit public interest research and advocacy organization based in New Delhi, India. They had earlier exposed a large number of illegal practices such as pesticides in colas and packaged water, antibiotics in honey, and excess salts and trans fats in junk foods. 

Earlier this year, CSE received many tip-offs from Indian beekeepers. They informed the organization about the presence of widespread contamination of honey by domestic manufacturers. The beekeepers pointed out that major brands were sourcing sugar syrup from China. The brands opted to buy sugar syrup, as it is available for half the price of raw honey. This had led to many beekeepers going out of business. The CSE took up the mission to find out the truth behind these claims.

Key Findings

Now, let us specifically look at the details regarding CSE’s recent study on the adulteration of honey:

  • Between August-November 2020, the CSE collected 22 samples of honey from 13 Indian brands. Eight of these brands sell processed honey, while the others sell raw honey.
  • They initially sent the samples for testing at the Centre for Analysis and Learning in Livestock and Food (CALF), in Gujarat. The testing was conducted as per the parameters set by the Food Safety and Standards Authority of India (FSSAI). All the major brands passed this particular test, whereas smaller brands failed to meet the Indian standards. 
  • However, CSE was not convinced with the results from the initial test conducted by CALF. They believed that these samples had to go through a world-class purity test. Thus, they sent all the samples to a renowned food testing laboratory in Germany. This lab has a more advanced testing technology that helps detect adulteration and also the origin of honey. These specific tests are called Nuclear Magnetic Resonance Spectroscopy (NMR Test) and Trace Marker for Rice Syrup (TMR Test).
  • The German lab sent a very detailed analysis of their findings on December 2. This was exactly when things became very serious. It was found that 10 out of the 13 honey brands had failed the purity test. Out of a total of 22 samples, only 5 passed all the tests.
  • More importantly, the investigation revealed that Indian companies were importing synthetic sugar syrups from China for adulteration of honey. 
  • CSE stated that honey is also mixed with syrup acquired from rice, corn, beetroot, and sugarcane and is sold as ‘pure honey’ by these brands. This syrup is factory-made and produced in bulk (mainly from China) and was cheap. The Indian brands used large quantities of these cheap syrups in their honey. This is clearly a health hazard.
  • At least 77% of Indian honey brands including Dabur, Patanjali, Zandu, Baidyanath, Hitkari have failed the NMR test. Saffola Honey (a product of Marico Ltd), Markfed Sohna, and Nature’s Nectre were the only brands that passed all the tests.

Recent Developments

After CSE released these shocking revelations, the companies such as Dabur Ltd., Patanjali Ayurved, and Emami Group (Zandu Honey) have denied all claims. They stated that their respective honey brands adhere to all protocols and quality standards as per the Indian Government and the FSSAI. The companies have also stated that CSE’s claims seem to be motivated and aimed at defaming them. They have also insisted that honey sold by them are collected from Indian sources and packed with no added sugar or other adulterants.

Over the last few days, some of you may have seen the advertisements of Dabur Honey popping out on all types of media. It states that their honey passes all key tests of the Indian food regulators and is 100% pure with no added sugar. At the same time, Marico Ltd has also posted newspaper ads that mention that their brand- Saffola Honey- has passed the international standards test. Interestingly, both Dabur and Marico have decided to move the Advertising Standards Council of India (ASCI), accusing each other of making false purity claims of their ads!

On December 4, CSE forwarded all details regarding their investigation to the FSSAI. This contains step-by-step developments that brought the fraud to light. This would help the agency to understand the loopholes in its purity and quality testing standards. 

Conclusion

We had increased the consumption of honey to boost our immunity. Unfortunately, we were actually ingesting sugar instead of natural honey. Widely consumed honey brands in India have been misleading or deceiving us with their promise of purity. Such an important food item, that has immense health benefits, is completely filled with sugar syrup. The CSE has provided us with concrete evidence that brands have used demand opportunities arising from the Covid-19 pandemic as an excuse to sell adulterated items. The business of adulteration has constantly evolved over the years to beat laboratory tests as well. Consuming such items could cause severe health issues in individuals.

Also, do bear in mind that India imports these adulterants in bulk orders from China. The Chinese companies had openly claimed that its syrups will not be detected in adulteration checks. As India has now stopped all imports of Chinese items, the major domestic companies have even moved on to local entities for their supply of sugar syrup. The Indian beekeepers have been losing their business, as brands are using fewer quantities of raw honey in their products.

Let us hope that the government, and its agencies such as the FSSAI, introduce new and better standards for the testing of honey. The agencies need to step up surveillance, sampling, and inspection to check the misuse of such activities. It needs to be completely stopped at all costs. The health of all Indians needs to be given utmost importance, especially at a time when we are facing a global pandemic.