Tag: motherson sumi

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Reliance, Ola Wins Support for Battery Manufacturing – Top Indian Market News

Reliance, Ola selected for incentives under PLI scheme for battery manufacturing

Reliance New Energy Solar, Ola Electric Mobility, Hyundai, and Rajesh Exports have been selected to receive incentives under a PLI scheme for manufacturing Advanced Chemistry Cell (ACC) Battery Storage in India. Hyundai and Ola Electric have been awarded support for setting up 20 Gigawatt Hour (GWh) of manufacturing capacity each. Reliance and Rajesh Exports will be getting PLI for setting up 5 GWh of manufacturing capacity.

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Invesco supports ZEEL-Sony merger deal; decides not to pursue EGM

Invesco Developing Markets Fund, the largest shareholder of Zee Entertainment Enterprises Ltd (ZEEL), said it will support the Zee-Sony merger deal. It has also decided not to pursue the call for an extraordinary general meeting (EGM) to remove ZEEL Managing Director and CEO Punit Goenka and two independent directors. ZEEL has welcomed the move and said it will continue to seek the required valuable support from all its stakeholders. 

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IDBI Bank’s board to consider Rs 8,000 crore resource for FY23

IDBI Bank’s board is planning to consider a proposal for approving a Rupee Bond borrowings limit of about Rs 8,000 crore for FY 2022-23. The board will meet on March 29 to consider the proposal. The resources will be borrowed in one or more tranches. IDBI Bank Ltd is an Indian private sector lender and a subsidiary of Life Insurance Corporation (LIC).

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India’s domestic aviation sector set to recover fully by mid-2022: Airbus official

India’s civil aviation sector is likely to rebound quickly from the Covid-19 crisis, even as the rising oil prices and the war in Ukraine will have an impact on the overall aviation market, said Remi Maillard, President of Airbus India & South Asia. He believes that domestic traffic in India will fully recover by the middle of the current year, while international traffic will rebound by the next year. Airbus has forecast that India will require 2,210 new aircraft over the next 20 years.

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NTPC commissions additional 42.5 MW capacity at Ramagundam solar project

NTPC Ltd has started commercial operations of an additional 42.5 MW of power generation capacity at Ramagundam floating solar project in Telangana. Earlier, the company had commissioned 17.5 MW (Part-I) and 20 MW (Part-II) of the solar project. The total commercially operational power generation capacity of the Ramagundam project has now reached 80 MW. The NTPC group’s installed and commercial capacity stands at 68,609.68 MW and 67,949.68 MW, respectively.

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IIFL Home Fin partners with SBI for affordable housing loans

IIFL Home Fin has entered into a co-lending partnership with State Bank of India (SBI) to accelerate effective and affordable credit to small home buyers in India. IIFL HFL will manage loan sourcing and servicing. Under the arrangement, 80% of the loan will be provided by SBI. IIFL HFL will service the customers throughout their entire loan cycle, from sourcing, documentation, disbursal to collection.

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Adani Enterprises, L&T among firms keen to build satellite launchers: Govt

The Government said Adani Enterprises Ltd and Larsen & Toubro are part of two consortia led by state-run enterprises that have shown interest in building Polar Satellite Launch Vehicles (PSLVs), ISRO’s rocket that put satellites in orbit. New Space India Ltd, a company under the Department of Space, had invited proposals from companies to build five PSLVs. State-run Bharat Heavy Electrical Ltd has also submitted a techno-commercial proposal for building PSLV.

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Motherson Sumi secures order from Boeing

Motherson Sumi Systems Ltd (MSSL) has secured an order from Boeing to manufacture and supply aftermarket molded polymer parts for commercial airplane interiors. The production will commence from the third quarter of FY23. It will be manufactured at MSSL’s plant situated in Noida. MSSL said it is scaling its capabilities to provide integrated solutions to the aerospace industry.

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L&T board approves long term borrowings up to Rs 10,000 crore

Infrastructure major Larsen & Toubro’s (L&T) board has approved long-term borrowings up to Rs 10,000 crore. Long-term borrowings include refinancing through external commercial borrowings, term loans, or non-convertible debentures. In other news, L&T has won a ‘significant’ order to construct hi-tech IT parks at eight locations across Bangladesh.

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Editorial

Why Did Motherson Sumi’s Shares Fall 22% Last Friday?

The shares of Motherson Sumi Systems Ltd fell up to 22% to Rs 182.85 on the NSE last Friday (January 14). Investors went into panic mode as most were unaware of the developments happening at the company.

Motherson Sumi Systems Ltd (MSSL) is a leading manufacturer of automotive components. It produces and sells wiring harnesses, interior & exterior mirrors, camera-based detection vision systems, and high-precision metal machined components to automakers. They also manufacture integrated electrical distribution systems and related components.

Now, let us understand why the company’s shares fell 22% on Jan 14.

Why Did MSSL’s Stock Price Fall?

Motherson Sumi’s stock price has grown at a compound annual growth rate (CAGR) of around 13% from ~Rs 145 levels in January 2017. It has widely outperformed the Nifty Auto index. MSSL’s shares had closed at Rs 235 levels on January 13.

The domestic wiring harness (DWH) business of Motherson Sumi Systems Ltd accounted for 17% of its overall business. As part of a restructuring exercise, the DWH business will be de-merged from MSSL and merged with its parent company— Samvardhana Motherson Group.

On January 14, MSSL’s stock started trading exclusive of the DWH business ahead of the record date. The company had fixed January 17 (yesterday) as the record date. Thus, the 17% fall that occurred last Friday is a direct impact of the de-merger. The remaining 5% decline in MSSL’s stock price can be attributed to panic selling by its investors.

Motherson Sumi Systems Ltd has determined shareholders for allocation of additional shares of DWH business in the entitlement ratio 1:1 on the record date (Jan 17). It means that one share of the DWH business will be allotted for each share held in MSSL to all existing shareholders. After the demerger of the DWH business, MSSL (the existing listed entity) will be renamed Samvardhana Motherson International Ltd (SAMIL). 

Meanwhile, the DWH business will be known as Motherson Sumi Wiring India Ltd (MSWIL). The DWH segment’s merger with Samvardhana Motherson Group (the promoter entity) is expected to take place on January 24, 2022. The initial public offering (IPO) of MSWIL is scheduled for mid-March 2022, pending regulatory approvals.

What Next?

Industry experts expect a cyclical upturn in the global and domestic automobile markets in the coming months. Motherson Sumi Systems is also well-positioned to benefit from the increasing electric vehicle (EV) penetration. Analysts have also stated that MSSL’s restructuring exercise creates a platform for future growth through organic and inorganic routes. It is a step towards MSSL’s Vision 2025, which includes a revenue target of $36 billion (~Rs 2.65 lakh crore) and a Return on Capital Employed (ROCE) of 40%. [ROCE signifies the ability of a company to generate profits with respect to shareholders’ capital. For every Rs 100 worth of capital employed, MSSL aims to earn Rs 40 on it.]

What are your views on Motherson Sumi Systems? Have you invested in the company? Let us know in the comments section of the marketfeed app.

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

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

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

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Reliance BP Mobility launches first mobility station in Navi Mumbai

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

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

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

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

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

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

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

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Motherson Sumi and Marelli extend cooperation in India

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

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Ambuja Cement Q3 Results: Net profit at Rs 441 crore

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

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Bombay HC bars Invesco from calling EGM

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

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

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

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IRB Infra Q2 Results: Net profit at Rs 42 crore

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

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

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

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

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Tata Wins Bid to Buy Air India For Rs 18,000 crore – Top Indian Market News

Tata wins bid to buy Air India for Rs 18,000 crore

The Centre has declared Tata Group as the winning bidder for debt-laden national carrier Air India. Tata will pay Rs 18,000 crore to acquire Air India from the government, of which 15% would go to the Centre and the rest will go towards clearing debt. The transaction is expected to close by the end of December 2021. The group will also retain all Air India employees for one year and offer voluntary retirement scheme (VRS) in the second year.

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TCS Q2 Results: Net profit rises 29% YoY to Rs 9,624 crore

Tata Consultancy Services (TCS) reported a 29% YoY increase in consolidated net profit to Rs 9,624 crore for the quarter ended September (Q2 FY22). Net profit rose 6.84% when compared to the previous quarter. The IT company’s revenue from operations increased by 16.8% YoY to Rs 46,867 crore during the same period. TCS’ board has approved an interim dividend of Rs 7 per share. 

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RBI keeps repo rate unchanged at 4%

The Reserve Bank of India’s Monetary Policy Committee (MPC) has left the Repo Rate unchanged at 4%. The Reverse Repo Rate also remains unchanged at 3.35%. It is the eighth time in a row that the policy rates have been kept on hold. RBI’s projection for real GDP growth is retained at 9.5% for the current financial year (FY22). The central bank has proposed to increase the per transaction limit of Immediate Payment Service (IMPS) from Rs 2 lakh to Rs 5 lakh.

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Motherson Sumi’s board approves acquisition of 55% stake in CIM Tools

The Board of Directors of Motherson Sumi Systems Ltd (MSSL) has approved the acquisition of a 55% stake in CIM Tools Pvt Ltd. This acquisition marks MSSL’s entry into the aerospace industry. It aligns with the company’s growth strategy to venture into the non-automotive sectors as outlined in its five-year plan, Vision 2025. CIM is engaged in machining and sub-assembly of components for the aerospace industry. 

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Power Ministry’s new framework to lower electricity rates

The Ministry of Power released a framework for the implementation of market-based economic despatch (MBED) to enhance competition in the power sector and lower the cost of electricity in India. With this move, state power distribution companies (DISCOMs) will be able to plan power purchases from the day-ahead market at the power exchange (IEX). DISCOMs will also be able to meet their electricity demand from the cheapest generating sources in India. With the implementation of MBED, the ministry expects a ~5% reduction in the cost of power to consumers.

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Zydus Cadila gets tentative approval to market generic acne drug

Zydus Cadila has received tentative approval from the US Food & Drug Administration (USFDA) to market generic Adapalene and Benzoyl Peroxide gel in the American market. The drug is used for the treatment of acne. It works by killing the bacteria that cause acne and by keeping the skin pores clean. The product will be manufactured at Zydus Cadila’s topical plant in Ahmedabad.

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Trident launches e-commerce portal “myTrident.com”

Trident Limited has launched its direct-to-consumer website, myTrident.com. The website features products from the house of Trident Group ranging from towels, bedsheets, paper, notebooks, bathrobes, rugs, cushions, and more. Customers can avail of up to 55% discount on myTrident.com. The company further plans to announce more exciting discount offers during Diwali.

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Equity mutual funds see inflows for seventh month in a row: AMFI

Inflows into equity mutual funds stabilised in September and were almost similar to August figures. Investors poured in a net Rs 8,677.41 crore into equity mutual fund schemes, compared to Rs 8,666.68 crore in August. Multi-cap funds saw the biggest inflow of Rs 3,569.45 crore, while sectoral and flexi-cap funds saw net inflows of Rs 2,000 crore each. The data was released by the Association of Mutual Funds in India (AMFI). 

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Maharashtra Seamless secures Rs 237 crore order from ONGC

Maharashtra Seamless Ltd (MSL) has secured an order worth Rs 237 crore from Oil and Natural Gas Corporation Ltd (ONGC) for the supply of seamless casings pipes. The product is widely used in high-pressure applications, including refineries, hydraulic cylinders, and oil and gas infrastructure. New Delhi-based MSL is the flagship company of the well-diversified DP Jindal Group. 

Mobikwik gets SEBI approval for Rs 1,900 crore IPO

Digital payments platform Mobikwik has received approval from the Securities and Exchange Board of India (SEBI) for its Rs 1,900 crore initial public offering (IPO). The company is expected to launch its IPO before Diwali (November 4) and is likely to fetch a valuation of $1 billion. The Gurugram-based company is among a growing list of consumer internet firms, including Paytm, Nykaa, and PolicyBazaar, that are eyeing stock market debuts this year.

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Reliance to bring 7-Eleven stores to India

Reliance Retail Ventures Limited (RRVL) has entered into a master franchise agreement with 7-Eleven Inc for the launch of 7-Eleven convenience stores in India. The first 7-Eleven store is set to open on Saturday (October 9) in Andheri East, Mumbai. This will be followed by a rapid rollout in key neighborhoods and commercial areas, across the Greater Mumbai cluster to start with.

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

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

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

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Reliance Industries, Bill Gates to invest in battery storage company

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

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

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

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

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

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

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

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

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

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

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

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

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

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Kalyan Jewellers Q1 Results: Net loss at Rs 51 crore

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

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

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

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

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

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Zomato Q1 Results: Net loss at Rs 356 crore

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

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PVR Reports Net Loss of Rs 289 crore in Q4 – Top Indian Market News

PVR Q4 Results: Net loss at Rs 289 crore

PVR Limited reported a consolidated net loss of Rs 289.12 crore for the quarter ended March (Q4 FY21). It had posted a net loss of Rs 74.49 crore in the corresponding quarter last year (Q4 FY20). The multiplex operator’s total income declined by 60.2% YoY (or 17.76% QoQ) to Rs 263.26 crore in Q4 FY21. PVR has posted a net loss of Rs 747.79 crore for the financial year ended March 31, 2021 (FY21). This is compared to a net profit of Rs 27.30 crore in FY20. With the resurgence of Covid-19 cases since April 2021, PVR has been taking all necessary measures to manage costs and preserve liquidity. 

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Adani Green’s subsidiary commissions 150-MW wind power project in Gujarat

Adani Wind Energy Kutchh Three has commissioned a 150 megawatt (MW) wind power project in Kutchh, Gujarat. The company is a subsidiary of Adani Green Energy Ltd (AGEL). The project has a Power Purchase Agreement (PPA) with Solar Energy Corporation of India (SECI) at 2.82 per kilowatt-hour for 25 years. With the successful commission of this project, AGEL’s total operational renewable capacity has increased to 5,070 MW. This is the company’s 6th project to be commissioned ahead of schedule over the past 12 months.

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Motherson Sumi Q4 Results: Net profit jumps 289% YoY to Rs 714 crore

Motherson Sumi Systems Ltd reported a 289% YoY jump in consolidated net profit to Rs 713.6 crore for the quarter ended March (Q4). Net profit has declined by 10.62% when compared to the previous quarter. Its revenue from operations rose 17.6% YoY to Rs 16,971.9 crore during the same period. For the financial year ended March 31, 2021 (FY21), net profit declined by 11% YoY to Rs 1,039.13 crore. The company’s board has recommended a final dividend of Rs 1.5 per share.

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Phoenix Mills, GIC to set up investment platform in India

Phoenix Mills Ltd (PML) and Singapore’s sovereign wealth fund GIC have entered into a strategic partnership to establish a $733 million (~Rs 5,300 crore) investment platform for retail-led mixed-use assets in India. GIC will acquire a minority stake (26.4%) in the portfolio of PML’s projects that are under development in Mumbai and Pune. The assets comprise 3.4 million sq. ft. of leasable retail and office space.

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Muthoot Finance Q4 Results: Net profit rises 22% YoY to Rs 995 crore

Muthoot Finance reported a 22.14% YoY increase in standalone net profit to Rs 995.66 crore for the quarter ended March (Q4). Its net interest income (NII) rose 15.7% YoY to Rs 1,829.5 crore during the same period. The company’s loan assets grew 26% YoY to Rs 52,622.3 crore as of March 31, 2021. Its total assets under management (AUM) rose 26% YoY to Rs 52,622 crore in FY21. Net profit for the financial year 2020-21 (FY21) increased by 23.32% YoY to Rs 3,722.18 crore. Muthoot Finance’s board has declared a dividend of Rs 20 per share.

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Tata Power Solar secures order worth Rs 686 crore from NTPC

Tata Power Solar, a wholly-owned subsidiary of Tata Power Ltd, has received a Letter of Award (LoA) from state-owned NTPC Ltd to build 210 megawatt peak (MWp) of solar PV projects. The scope of work includes transmission, engineering, procurement, installation, and commissioning of solar projects at an NTPC project site in Gujarat. The total order value of the projects is Rs 686 crore. The commission deadline has been set as November 2022.

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Route Mobile to develop A2P messaging platform for EITC-du

Route Mobile has announced a partnership with Emirates Integrated Telecommunications Company (EITC)- du, by offering a turnkey solution using its Smart Messaging Hub. This platform will enable du to launch a scalable revenue-generating messaging platform for the application-to-person (A2P) wholesale transit business. Route Mobile will oversee the infrastructure, technology, gateway connectivity, and day-to-day operations of the platform for du as a managed service.

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Wipro partners with Finastra to help digitalise banks in the Asia-Pacific

Wipro Limited and UK-based software vendor Finastra have announced a partnership to aid digital transformation of corporate banks in the Asia-Pacific region. The companies will create a unique offering that combines Wipro’s services catalogue with Finastra’s front-to-back finance and cash management solutions. The partnership will help banks transition quickly and enable them to meet client needs in a faster and more agile manner. 

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USFDA accepts Lupin’s application for Pegfilgrastim biosimilar

Lupin Limited announced that the US Food & Drug Administration (USFDA) has accepted the Biologics License Application (BLA) for its proposed biosimilar to Neulasta (Pegfilgrastim). According to IQVIA data, Pegfilgrastim had an estimated annual sales of $3.66 billion (~Rs 26,710 crore) in the US for the 12 months ended December 2020. Pegfilgrastim is used to prevent neutropenia or the lack of certain white blood cells in patients receiving chemotherapy.

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MTAR Technologies Q4 Results: Net profit jumps 103% YoY to Rs 18 crore

MTAR Technologies reported a 103.04% YoY increase in consolidated net profit to Rs 18.01 crore for the quarter ended March (Q4). Net profit has jumped 103.39% when compared to the previous quarter. Its revenue from operations rose 12.27% YoY to Rs 69.16 crore during the same period. For the financial year ended March 31, 2021 (FY21), net profit increased by 47.09% YoY to Rs 46.07 crore. The company’s board has recommended a dividend of Rs 3 per share.

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Rossari Biotech to acquire Unitop Chemicals for Rs 421 crore

Rossari Biotech Ltd has announced plans to acquire a 100% stake in Mumbai-based Unitop Chemicals Pvt Ltd for Rs 421 crore. Unitop Chemicals is a supplier of surfactants, emulsifiers, and specialty chemicals. It has three manufacturing sites in India with a total capacity of 86,000 metric tonnes per annum (MTPA). Rossari Biotech stated that 65% of the equity share capital of Unitop will be acquired upon the closure of the transaction. The remaining 35% will be acquired over the next two years. 

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Market News Top 10 News

Retail Inflation Eases to 4.06% in January; Industry Output Grows 1% in December – Top Indian Market News

Retail inflation eases to 4.06% in January; industry output grows 1% in December

India’s retail inflation, calculated by the Consumer Price Index (CPI), eased to 4.06% in January 2021, primarily due to a decline in vegetable prices. The CPI stood at 4.59% in December 2020 and 7.6% in January 2020. Meanwhile, the Index of Industrial Production (IIP) grew 1% in December 2020. Mining output declined by 4.8%, while power generation grew 5.1% last month. Thus, the Indian economy is witnessing a strong recovery with inflation cooling down and industry output showing a rebound. 

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Motherson Sumi Q3 Results: Net profit nearly triples to Rs 798 crore

Motherson Sumi Systems reported a 194% YoY increase in consolidated net profit to Rs 798 crore for the quarter ended December (Q3). The auto parts maker posted a 14% YoY increase in revenue to Rs 17,092.4 crore during the same period. With strong operating cash flows, the company’s net debt is at its lowest level compared to the previous 14 quarters. Motherson Sumo’s domestic wire harness business showed a 44% YoY increase in revenue to Rs 1,343 crore in Q3. 

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NTPC commissions Unit-4 of Kameng hydro-electric project

NTPC announced that its fourth 150 megawatt (MW) unit of Kameng Hydro-Electric Project is commercially operational. The project is run by its subsidiary- North Eastern Electric Power Corporation. With this, the commissioned and commercial capacity of NTPC has increased to 64,075 MW.

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Voltas Q3 Results: Net profit rises 46% YoY to Rs 129 crore

Tata Group company Voltas Ltd reported a 46.26% YoY increase in consolidated net profit to Rs 128.64 crore for the quarter ended December (Q3). Its revenue rose 32.29% YoY to Rs 2,046.26 crore during the same period. The company saw a strong recovery in its cooling products segment. Voltas’ revenue from unitary cooling products for commercial use increased 40% YoY to Rs 840 crore in Q3.

The company’s board has approved the transfer of domestic projects business to its subsidiary, Universal MEP Projects & Engineering Services. The cash consideration for the business transfer has been estimated at Rs 1,000-1,200 crore.

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Sobha Q3 Results: Net profit falls 70% YoY to Rs 21 crore

Sobha Limited reported a 70.49% YoY decline in consolidated net profit to Rs 21.6 crore for the quarter ended December (Q3). The real estate developer’s revenue fell to Rs 696.3 crore, compared with Rs 901.2 crore in Q3 FY20. However, the firm achieved its highest-ever pre-sales volume during the October-December quarter.

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Bharat Forge Q3 Results: Net loss at Rs 210 crore

Bharat Forge reported a consolidated net loss of Rs 210.45 crore for the quarter ended December (Q3). The auto components manufacturer posted a 5.9% YoY decline in revenue to Rs 1,723.1 crore during the same period. Bharat Forge stated that a strong recovery in end-market demand in the automobile sector helped the company register healthy double-digit growth in key parameters.

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HAL Q3 Results: Net profit rises 85% YoY to Rs 853 crore

Hindustan Aeronautics Ltd (HAL) reported an 85% YoY increase in consolidated net profit to Rs 853 crore for the quarter ended December (Q3). Its consolidated revenue rose 21.8% YoY to Rs 5,425.46 crore during the same period.

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Indiabulls Housing Finance Q3 Results: Net profit declines 40% YoY to Rs 329 crore

Indiabulls Housing Finance reported a 40.3% YoY decline in consolidated net profit to Rs 329.32 crore for the quarter ended December (Q3). Its revenue from operations declined by 25% YoY to Rs 2,513.25 crore during the same period. The company’s board has approved fundraising of Rs 5,000 crores through the issue of non-convertible debentures on a private placement basis.

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Grasim Q3 Results: Net profit jumps 107% YoY to Rs 2,152 crore

Grasim Industries Limited reported a 107% YoY increase in consolidated net profit to Rs 2,152.33 crore for the quarter ended December (Q3). Its revenue from operations grew 13% YoY to Rs 20,986 crore during the same period. This is the highest-ever consolidated quarterly profit reported by the company, with strong growth across its business segments. 

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Equitas SFB launches FASTag powered truck terminal

Equitas Small Finance Bank has launched a FASTag powered truck terminal at Khalapur, Maharashtra. The bank has partnered with Maharashtra State Road Development Corporation Ltd (MSRDC) and Ocean Highway Facilities and Solutions Pvt Ltd for the same. The terminal has a capacity of 160 trucks that can be parked at any given point in time.

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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.

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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. 

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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. 

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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.

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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.

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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.

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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.

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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.

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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]

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Editorial

Auto Ancillaries Industry in India: An Analysis

After months of production slowdown and decline in demand amidst the Covid-19 pandemic, the automobile industry in India is now witnessing a strong recovery. This is very evident from the December sales data of automobile manufacturers that were released last week. Almost all companies posted a healthy increase in their sales. 

As we know, the process that goes into the manufacturing of vehicles is very complex. The cars and two-wheelers that are sold in the market today include very sophisticated electronic or digital features. Thousands of components or parts need to be sourced from different manufacturers, which are spread all around the world. Thus, automakers are heavily dependent on the firms that produce essential auto ancillary components. Let us take a look at some of the main listed companies that fall under the automotive components industry.

Motherson Sumi Systems

Motherson Sumi Systems Ltd (MSSL) is a joint venture between Noida-based Samvardhana Motherson International Ltd and Sumitomo Wiring Systems Ltd of Japan. It is engaged in the manufacturing and sales of components to the automotive original equipment manufacturers (OEMs) in India and also internationally. MSSL is one of the world’s largest manufacturers of electrical wiring harnesses for commercial vehicles and rearview mirrors for passenger cars. It is also a leading supplier of plastic modules and components in Europe and India. 

The company has established a very strong customer base in Germany, the USA, France, Mexico, China, and many more. Some of the prominent clients of MSSL include the Daimler Group (Mercedes-Benz), Audi, Volkswagen, BMW, Renault, Ford, and Maruti Suzuki. Thus, we can see that Motherson Sumi has created synergies with some of the greatest automobile manufacturers in the world.

In the previous financial year (FY20), MSSL initiated a dedicated 5-year plan that focuses on obtaining a total revenue of $36 billion (~Rs 2.62 lakh crore) by 2024-2025. The company also stated that 40% of its consolidated profits at the end of 5 years would be provided as dividends. Motherson Sumi plans to fund its growth by utilising its reserve of profits and also raising debts.

Financial Performance

Over the past 5 years, the company has registered a consistent increase in revenue and profit. Its consolidated revenue for FY 2019-2020 stood at Rs 63,925 crore. Over the past 5 years, MSSL’s revenue has grown at an annual rate of 12.74%, whereas the industry average revenue stood at 6.96%. The company has been able to establish a market share of 34%. During the second quarter of FY21, MSSL reported a 2.7% YoY increase in consolidated net profit at Rs 388 crore. The company stated that it was seeing a huge surge in the demand for auto components all across the globe.

Since the beginning of FY21, the share price of Motherson Sumi Systems has risen by 190%.

Sundaram Clayton

Sundaram Clayton Ltd (SCL) is part of one of the largest conglomerates based in India- the TVS Group. SCL was founded in 1962 in collaboration with UK-based Clayton Dewandre Holdings plc. The company manufactures and markets machined and sub-assembled aluminium castings for the automotive industry. SCL’s product range includes flywheel housing, gear housing, clutch housing, filter heads, and much more. It provides these components for the heavy and medium commercial vehicle, passenger car, and two-wheeler markets. The company’s customer base includes prominent automakers such as Hyundai, Volvo, and Honda.

In 2019, SCL inaugurated its first overseas production facility in the United States by investing Rs 630 crore. Through this facility, the company plans to serve its customers in North America, which is its biggest export market. During the same year, the company inaugurated its new foundry at Oragadam, near Chennai. This major capacity expansion aims to meet the rapidly growing demand for its products from the automotive industry and will primarily serve Hyundai Motor India Limited.

Financial Performance

Over the past 5 years, SCL’s revenue has grown at a yearly rate of 11.73%, as compared to the industry average of 6.96%. The company has been able to establish a market share of 10.79%. Till FY 2019, the company had been registering a consistent increase in its overall revenue. However, there was a small decline in revenue during the previous financial year (FY20)- which was reported at Rs 19,914 crore.

Sundaram Clayton’s share price has seen a surge of 75% since the beginning of the financial year 2020-2021. 

Endurance Technologies Ltd

Endurance Technologies Ltd is a leading manufacturer and supplier of automotive components for OEMs in the automotive industries of Europe and India. It was founded in 1985 and is based in Aurangabad. The company primarily offers die castings, which are used to create complex parts for vehicles. It also manufactures components for engines, gearboxes, and transmission parts. Other products include suspension products, including hydraulic, mono, shock absorbers, steel wheel hubs, head axles, cross members, and steering housings. The company offers its products for use in two, three, and four-wheelers, as well as scooters and quadricycles. One of my favourite companies in this list, they supply to Bajaj Auto, Hero MotoCorp, Royal Enfield and Honda in India. European clients include Volkswagen and even Porshe.

Financial Performance

The company’s consolidated revenue during FY20 stood at Rs 6,965 crore. There had been a fall in both revenue and profit as compared to the previous financial years. Over the last 5 years, its revenue has grown at a yearly rate of 7.07%, whereas the industry was at 6.96%. Endurance Technologies has been able to establish a market share of 3.77%

Since April 2020, the shares of Endurance Technologies has increased by 137%.

Bosch Ltd

Bosch Ltd manufactures and trades in automotive products in India, as well as internationally. The company was founded in 1951 and is headquartered in Bengaluru. It is a subsidiary of Robert Bosch GmbH, a German multinational engineering and technology company. Interestingly, the Bosch Group operates in India through a total of 13 companies.

Bosch offers powertrain solutions (including gasoline and diesel injection products) and electrified drives with battery and fuel cell technologies in the electric vehicle, passenger car, and commercial vehicle market segments. It also provides automotive aftermarket services such as auto diagnosis and repairs. Bosch is well known for its power tools and measuring technologies. They also offer professional audio and communications solutions for the automotive industry.

Recently, Bosch Ltd claimed that it has secured orders worth €2.5 billion for its vehicle computers since 2019. The company also announced plans to start full-scale production of distributed power stations based on solid oxide fuel cell (SOFC) technology in 2024. It has continued investment in its restructuring & reskilling strategies and also for other transformational projects. 

Financial Performance

The company’s consolidated revenue for FY20 stood at Rs 10.45 crore. As compared to the previous financial years, the company had posted a significant decline in its revenue and profit. Over the past 5 years, Bosch Ltd’s revenue has grown at an annual rate of -3.74%, whereas the industry average is 6.96%. During the same period, the company’s market share decreased from 8.27% to 5.66%. It reported a consolidated net loss of Rs 64.57 crore for the quarter ended September (Q2 FY21). 

Since the beginning of FY21, the share price of Bosch Limited has increased by over 50%.

Conclusion

We have only mentioned four top companies that fall under the category of auto component or parts manufacturers. Other prominent listed firms in this category include Minda Industries, Varroc Engineering, Sundaram Fasteners, Schaeffler India, and Wabco India. Bharat Forge Ltd, which is part of the Pune-based Kalyani Group, is also one of the largest exporters of automotive components from India. These companies have partnered with some of the biggest automakers around the world. The different components that you see on your cars or two-wheelers today would have been made by these firms. 

According to a study conducted by the India Brand Equity Foundation (IBEF), the automotive components industry registered a CAGR of 6%, reaching $49.3 billion in FY20. Exports grew at a CAGR of 7.6% during 2016-2020, to reach $14.5 billion during the same financial year. It was found that this industry accounted for 2.3% of India’s Gross Domestic Product (GDP) by 2020. According to the Automobile Component Manufacturers Association (ACMA), automobile component export from India is expected to reach $80 billion by 2026. Thus, we can see that this industry is vital not just for automobile manufacturers but also for the overall economic development of our country. 

We can see that these companies are investing heavily in their research and development (R&D) activities. They are constantly introducing new components in the market to meet the rising demand of the automakers. Most companies are now making a shift towards the production of electric and hybrid cars. This would lead to greater demand and more opportunities for auto-component manufacturers. Let us look forward to seeing how these firms plan to expand their production and sales in the years to come.