Tag: Nykaa

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World Bank Cuts India’s GDP Growth Forecast for FY23 – Top Indian Market Updates

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

World Bank cuts India’s GDP growth forecast to 6.5% for FY23

The World Bank cut its FY 2022-23 (FY23) real gross domestic product (GDP) growth forecast for India to 6.5% from an earlier estimate of 7.5%. It has warned that spillovers from Russia’s invasion of Ukraine and global monetary tightening will weigh on the economic outlook. The World Bank said private investment growth is likely to decline due to economic uncertainty and higher financing costs. Slowing global demand will impact India’s exports as well.

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Nykaa enters into strategic alliance with Apparel Group to enter GCC market

Nykaa has entered a strategic alliance with Dubai-based fashion & lifestyle retail conglomerate Apparel Group to expand in Gulf countries. The two companies will work together to build a multi-brand beauty retail business in Gulf Cooperation Council (GCC) nations. Nykaa expects stronger demand for its products in the current quarter after a subdued season where inflationary pressures dented consumer spending.

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Mahindra Lifespaces forms JV with Actis for industrial, logistics real estate

Mahindra Lifespace Developers Ltd has entered into an agreement with UK-based Actis to establish a joint venture (JV) platform for developing industrial and logistics real estate facilities across India. The total investment in the business over the initial years is estimated to be ₹2,200 crore. Up to 100 acres of land with ready infrastructure in two Mahindra World Cities have been identified as seed sites to be bought and developed by the JV.

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Ujjivan SFB records 44% jump in loan book in Sept

Ujjivan Small Finance Bank (SFB) reported a 44% YoY growth in gross loan book at ₹20,938 crore at the end of September 2022. This was driven by micro, affordable housing, and individual borrowings. Deposits rose 45% YoY to ₹20,389 crore, driven by strong momentum in retail deposits, which were up 71% YoY.

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Petrol, diesel price freeze in India likely to be extended due to OPEC output cut

The six-month-long freeze in the price of petrol and diesel will be extended after international oil prices rose on the announcement of deep production cuts by OPEC+. The top oil-producing nations have agreed to cut production by two million barrels per day to boost recovery in oil prices that had dropped to pre-Ukraine war levels.

This is bad news for India as a fall in oil prices in recent weeks had helped the govt bring down its import bill and limit losses that state-owned fuel retailers were incurring on selling petrol and diesel.

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L&T’s construction arm bags significant orders from auto major

Larsen & Toubro Ltd’s construction arm has secured significant orders (in the range of ~₹1,000-2,500 crore) from a leading automobile major to construct a state-of-the-art manufacturing facility in Haryana. The scope of the order involves the design and execution of civil, structural, and architectural works. The company has also won an order to construct a police reserve campus in Guwahati from the Public Works Department (PWD), Assam.

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HFCL partners with Qualcomm to develop 5G small cells

HFCL has partnered with Qualcomm Technologies Inc., for HFCL’s design and development of 5G Outdoor Small Cell products. The investment in 5G small cells will enable faster rollout of 5G networks, improved 5G user experience, and more efficient utilization of the 5G spectrum. HFCL’s 5G Outdoor Small Cell supports both 5G Non-Standalone (NSA) and Standalone (SA) modes.

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Bharti Airtel launches 5G Plus in 8 cities

Bharti Airtel has launched 5G Plus in Delhi, Mumbai, Chennai, Bengaluru, Hyderabad, Siliguri, Nagpur, and Varanasi. Airtel 5G Plus will run on a technology that will ensure that all 5G smartphones in India seamlessly work on the Airtel network. The company claims to deliver high speeds and super-fast call connections. Customers who have 5G smartphones can enjoy Airtel 5G Plus on their existing data plans until the rollout is more widespread.

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NTPC partners with GE Gas Power for hydrogen co-firing in gas turbines

NTPC Ltd has signed a Memorandum of Understanding (MoU) with GE Gas Power to explore the feasibility of hydrogen co-firing blended with natural gas in GE’s 9E gas turbines installed at NTPC’s Kawas gas power plant in Gujarat. The two companies will explore the pathways to reduce carbon dioxide emissions from the plant and further implementation at scale across NTPC’s installed units in India. 

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Manufacturing PMI Slows to 3-month Low in Sept – Top Indian Market Updates

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

Manufacturing PMI slows to 3-month low of 55.1 in Sept

India’s manufacturing sector activity fell to a three-month low in September 2022. The S&P Global India Manufacturing Purchasing Managers’ Index (PMI) stood at 55.1 in September, compared to 56.2 in August. However, output remained solid despite global headwinds and recession fears. Input costs rose at the slowest rate in almost two years as suppliers’ stocks improved in line with subdued global demand for raw materials.

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

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JSW Cement raises ₹400-crore sustainability-linked loan

JSW Cement Ltd will raise ₹400 crore through a sustainability-linked loan from MUFG Bank India to fund the company’s capacity expansion plans. MUFG Bank acted as the mandated lead arranger, bookrunner (MLAB), and sustainability loan coordinator for this transaction. The fundraise will help JSW Cement towards its target of building up to 25 million tonnes per annum (MTPA) capacity by FY25.

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Adani Ports reports 13% rise in cargo volumes in Sept

Adani Ports & Special Economic Zone (APSEZ) Ltd’s cargo volumes reached 26.1 million metric tonnes (MMT) in September, recording an increase of 13% YoY. In the first six months of FY23, APSEZ managed 177.5 MMT of cargo, an increase of 11% over the corresponding period last year. The company said it is well aligned to meet its annual cargo volume guidance of 350-360 MMT in FY23.

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Reliance Jio in talks with global firms for supply to 5G stack

Reliance Jio is in talks with global network operators to supply its locally developed end-to-end 5G stack. The solution (developed by Jio Platforms) consists of 5G radio, a complete 5G core network, cloud infrastructure deployment, and the cloud-native operation support system (OSS) platforms. Reliance Jio is set to launch 5G services across metro cities of Delhi, Mumbai, Chennai, and Kolkata by Diwali.

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CNG prices may go up by at least Rs 8-12 per kg

As per an Economic Times report, compressed natural gas (CNG) prices are likely to be hiked by ₹8-12 per kg after the Central government raised the prices of input natural gas to a record high. The price of gas piped to household kitchens may be hiked by over ₹6 per unit. Last week, the govt. raised the prices of gas produced from old fields from $6.1 per million BTU to $8.57 per million British thermal units (BTU).

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Welspun Corp to sell its land and building at Dahej unit

Welspun Corp Ltd (WCL) has signed a Memorandum of Agreement with Laxmi Organic Industries Ltd for the sale of land and civil structures at its Dahej unit in Gujarat for ₹130 crore. The unit comprises an insignificant portion of WCL’s operations. The management feels that the transaction would not have any adverse effect on the company’s operations.

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Vodafone Idea CEO urges govt to reduce levies to help telcos invest in capex-heavy 5G networks

Vodafone Idea (Vi) CEO Akshaya Moondra has called on the government to reduce the hefty levies in the telecom sector so that operators can improve cash generation and invest in capital-intensive 5G networks. The govt. levies amount to 58% of industry revenues, including the price of spectrum. He also urged the Centre to take more steps to ease right of way (RoW) rules to boost 5G deployments.

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M&M records highest monthly wholesales in September

Mahindra & Mahindra Ltd reported the highest ever monthly wholesales of 64,486 vehicles in September, mainly driven by strong demand for its sports utility vehicles. The automaker had dispatched 28,112 passenger and commercial vehicles in September 2021. Last month, M&M posted its highest ever monthly sales of SUVs at 34,262 units, recording a 2x year-on-year (YoY) jump.

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Nykaa’s board approves 5:1 bonus share issue

The Board of Directors of FSN E-Commerce (Nykaa) has approved the issuance of bonus shares in the ratio 5:1. The company will issue 5 fully paid-up equity shares of ₹1 each for every 1 fully paid-up equity share of ₹1 each held by a shareholder. The board has fixed November 3, 2022, as the record date for determining investors’ eligibility for the bonus share issue.

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KEC International secures new orders worth ₹1407 crore

KEC International Ltd has secured new orders worth ₹1407 crore across various businesses. Its Transmission & Distribution (T&D) business has received an order for establishing 400 kV transmission lines for the Kuwait-Saudi Arabia interconnection project. The company’s civil business has bagged an order for the construction of official quarters and associated facilities for senior govt officials in India.

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SpiceJet, Credit Suisse AG Resolve Financial Dispute – Top Indian Market Updates

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

SpiceJet, Credit Suisse AG tell SC they resolved financial dispute

SpiceJet Ltd and Swiss firm Credit Suisse AG told the Supreme Court they have resolved their financial dispute. The apex court allowed SpiceJet to withdraw its appeal against a Madras High Court verdict ordering that the airline be wound up on account of alleged non-payment of dues to Credit Suisse. As per Credit Suisse AG, SpiceJet had failed to honour its commitment to pay the bills for over $24 million for maintenance and repair of aircraft engines and components.

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Tata Motors secures order for 921 electric buses from BMTC

Tata Motors has secured an order for 921 electric buses from the Bengaluru Metropolitan Transport Corporation (BMTC). The automaker is all set to supply, operate and maintain 12-meter electric buses as part of the large tender announced by Convergence Energy Services Ltd (CESL). BMTC Managing Director G Sathyavathi said the order is essential for Bengaluru’s growing requirement for clean and sustainable public transport.

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HAL opens office in Kuala Lumpur to explore business operations in Southeast Asia

Hindustan Aeronautics Ltd (HAL) has signed a Memorandum of Understanding (MoU) with its representative in Kuala Lumpur (called Forte Drus) for tapping new opportunities in exporting weaponry to Malaysia. The office in Malaysia will help HAL to tap the new business opportunities for Fighter Lead-in Trainer, Light Combat Aircraft, and other requirements of the Royal Malaysian Air Force (RMAF).

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Power Mech Projects secures order worth Rs 6,163 crore from Adani Group

Power Mech Projects Ltd (PMPL) has secured an order for five Flue Gas Desulphurization (FGD) projects with an aggregating value of Rs 6,163.20 crore from Adani Group. The FGD projects will be used to install 15 FGD retrofits to coal-based units at Mundra, Tiroda, Kawai, and Udupi. These units will effectively curb sulphur-dioxide emissions and play a vital part in helping India achieve its ambitious goal of reducing emissions.

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IRCTC floats tender to appoint consultant for digital data monetisation

Indian Railway Catering & Tourism Corporation (IRCTC) has floated a tender to hire a consultant to monetise digital assets. The assets mentioned in the tender include rail ticketing data, user base, and passenger travel-related transactions. As per reports, IRCTC has estimated a revenue generation potential of Rs 1,000 crore through the monetisation of its digital assets.

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Datamatics Global Services partners with US-based AccessFares

Datamatics Global Services Ltd (DGSL) has entered into a long-term strategic partnership with AccessFares to enhance the customer experience for its premium international airfare services. DGSL will manage the premium international airfare services and help create value across the entire air ticketing, invoicing, and billing process. US-based AccessFares is a market leader in providing premium international airfares with significant discounts to customers globally.

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Lupin gets USFDA approval for Rufinamide tablets to treat seizures

Lupin Ltd has received approval from the US Food & Drug Administration (FDA) for Rufinamide tablets. The drug is used to treat the symptoms of Lennox-Gastaut Syndrome (seizures). They are available for oral administration as film-coated tablets. The product will be manufactured at Lupin’s facility in Goa. As per IQVIA MAT June 2022 data, Rufinamide tablets had estimated annual sales of $164 million (~Rs 1,306.4 crore) in the US.

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India sees a 7.6% fall in domestic air passengers in July: DGCA

The latest data by the Directorate General of Civil Aviation (DGCA) showed a 7.6% decline in the total number of domestic air passengers in July 2022 to 97 lakh. Around 1.05 passengers travelled by air in June. The rainy season is usually a lean period for India’s aviation sector. IndiGo carried 57.11 lakh passengers in July, a 58.8% share of the domestic market. Meanwhile, SpiceJet carried 7.76 lakh passengers last month.

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Tata Power Renewable Energy issues shares to BlackRock-Mubadala consortium for Rs 2,000 crore

Tata Power Renewable Energy’s board has approved the allotment of 8.36 crore equity shares on a preferential basis aggregating ~Rs 2,000 crore to GreenForest New Energies Bidco (GNEB). GNEB is a consortium led by BlackRock Real Assets and Mubadala Investment Company. This transaction is part of an investment deal worth Rs 4,000 crore, which BlackRock and Mubadala will infuse into Tata Power Renewable Energy.

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Nykd by Nykaa launches first flagship store in New Delhi

Nykd by Nykaa, the athleisure brand from Nykaa Fashion, has opened its first-ever physical retail space in Rajouri Garden, New Delhi. The store has a wide array of products across the innerwear, sleepwear, athleisure, and loungewear categories.

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RBI Raises Repo Rate by 50 bps to 5.4% – Top Indian Market Updates

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

RBI raises repo rate by 50 bps to 5.4%

The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) has raised the repo rate by 50 basis points to 5.4% to bring down inflation in the country. “The MPC also decided to remain focused on withdrawal of accommodation to ensure that inflation remains within the target going forward while supporting growth,” said RBI governor Shaktikanta Das. The RBI has retained its gross domestic product (GDP) forecast for FY23 at 7.2%.

Repo rate is the interest rate at which a central bank lends money to all the other banks in the country. A hike in repo rates makes bank loans costlier, leading to lower circulation of money in the economy.

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Titan Q1 Results: Net profit jumps 13x YoY to Rs 793 crore

Titan Company Ltd reported a 1200% YoY jump in net profit to Rs 793 crore for the quarter ended June (Q1 FY23). Its revenue from operations rose 175.8% YoY to Rs 8,961 crore during the same period. Its jewellery business posted an income of Rs 7,600 crore in Q1, up 208% YoY. Income from Titan’s watches & wearables segment grew 169% YoY to Rs 785 crore.

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Havells India launches innovative range of ‘Signia’ switches

Havells India Ltd unveiled its innovative range of ‘Crabtree Signia’ switches in Kochi. The range comprises of two categories: smart and luxury switches (Signia Smart and Signia Grande). They are equipped with high-end aesthetics and technology. It was designed in-house at Havells India’s research & development (R&D) center.

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M&M Q1 Results: Net profit at Rs 2,360.7 crore

Mahindra & Mahindra Ltd (M&M) reported a consolidated net profit of Rs 2,360.7 crore for the quarter ended June (Q1 FY23). It had posted a net loss of Rs 331.74 crore in the corresponding quarter last year (Q1 FY22). Its revenue from operations rose 48.2% YoY to Rs 28,412.38 crore in Q1 FY23. M&M sold 1,49,803 vehicles during the quarter, registering a growth of 74% YoY. 

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HDFC raises $1.1 billion ‘social loan’ for financing affordable housing segment

Housing Development Finance Corp (HDFC) Ltd has raised $1.1 billion (~Rs 8,700 crore) from investors under the ‘Syndicated Social Loan Facility’ to cater to the affordable housing segment. The company has raised the amount via external commercial borrowings (ECBs). Proceeds from the social loan would go towards financing affordable housing loans across India.

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UCO Bank Q1 Results: Net profit rises 22% YoY to Rs 123.6 crore

UCO Bank reported a 22% YoY increase in net profit to Rs 123.61 crore from the quarter ended June (Q1 FY23). Its net interest income (NII) rose 12.96% YoY to Rs 1,649.54 crore during the same period. [NII is the difference between the interest income a bank earns on loans and the interest it pays depositors.] The gross non-performing assets (GNPA) ratio stood at 7.42% in Q1 FY23, compared to 9.37% in Q1 FY22. Provisions fell 78% YoY to Rs 246.83 crore in Q1 FY23.

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Alkem Labs Q1 Results: Net profit falls 73% YoY to Rs 127 crore

Alkem Laboratories Ltd reported a 72.7% YoY decline in consolidated net profit to Rs 127.64 crore for the quarter ended June (Q1 FY23). Its revenue from operations fell 5.67% YoY to Rs 2,576.38 crore during the same period. International sales declined by 3.8% YoY to Rs 760.4 crore in Q1. EBITDA stood at Rs 203 crore, down 66% YoY.

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NTPC partners with Ohmium, Spirare Energy to generate green hydrogen

US-based Ohmium International, Inc., is partnering with Spirare Energy to generate green hydrogen at the NTPC Energy Technology Research Alliance (NETRA) campus. Spirare Energy will manage the engineering, procurement, and construction (EPC) of the project, while Ohmium will provide the hydrogen electrolyzers. NTPC, the largest power utility in India, set up NETRA in 2009.

In other news, NTPC has commissioned the full capacity of the 296 megawatts (MW) Fatehgarh solar power project in Rajasthan.

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Nykaa Q1 Results: Net profit rises 33% YoY to Rs 4.5 crore

FSN E-Commerce Ventures Ltd (Nykaa) reported a 33.4% YoY rise in consolidated net profit to Rs 4.55 crore for the quarter ended June (Q1 FY23). However, net profit declined by 47.6% when compared to the previous quarter. Its revenue from operations rose 40.5% YoY to Rs 1,148.42 crore during the same period. Nykaa’s gross merchandise volume (GMV) stood at Rs 2,155.8 crore in Q1, up 47% YoY.

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SJVN secures 200 MW solar project worth Rs 1,200 crore in Maharashtra

SJVN Ltd has secured a 200 MW solar project in an e-reverse auction by Maharashtra State Electricity Distribution Company Ltd (MSEDCL). This ground-mounted solar project will be developed by SJVN anywhere in Maharashtra through an EPC contract. The tentative cost for the development of this project is Rs 1,200 crore.

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JSW Steel’s Net Profit Falls 20% YoY to Rs 3,343 crore in Q4 – Top Indian Market News

A crane operator lifts up a finished steel coil at the storage and distribution facility of German steel maker ThyssenKrupp in Duisburg, Germany, January 30, 2020. REUTERS/Wolfgang Rattay/Files

JSW Steel Q4 Results: Net profit falls 20% YoY to Rs 3,343 crore

JSW Steel Ltd reported a 20.2% YoY decline in consolidated net profit to Rs 3,343 crore for the quarter ended March (Q4 FY22). Its total income rose 73% YoY to Rs 47,128 crore during the same period. Expenses surged 98.9% YoY to Rs 41,282 crore in Q4. The company recorded an exceptional loss of Rs 741 crore. JSW Steel’s board has declared a final dividend of Rs 17.35 per share.

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Sun Pharma acquires Uractiv portfolio from Fiterman Pharma in Romania

Sun Pharmaceutical Industries Ltd’s subsidiary, S.C. Terapia, has acquired the Uractive portfolio from Fiterman Pharma in Romania. The portfolio comprises food supplements including minerals, vitamins, cosmetics, and medical devices used for maintaining urinary tract health. Uractiv is a leading brand in its category in Romania, with a portfolio of 12 stock-keeping units (SKUs) having annualised revenues of approximately $8.7 million.

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Nykaa Q4 Results: Net profit falls 49% YoY to Rs 8.56 crore

FSN E-Commerce Ventures (Nykaa) reported a 49% YoY decline in consolidated net profit to Rs 8.56 crore for the quarter ended March (Q4 FY22). Its revenue from operations rose 31% YoY to Rs 973.32 crore during the same period. The gross merchandise value (GMV) grew 45% YoY to Rs 179.8 crore in Q4.

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RIL, Jindal Group, HPCL-Mittal Energy in race to buy JBF Petro

Reliance Industries Ltd (RIL), an HPCL-Lakshmi Mittal joint venture, two Jindal Group firms, and three other entities have reportedly shown interest in acquiring bankrupt JBF Petrochemicals. JBF Petro manufactures purified terephthalic acid— a raw material for polyester fibre and PET raisin (used to make jars and bottles for mineral water, carbonated soft drinks). The company has an outstanding debt of Rs 4,700 crore.

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GAIL Q4 Results: Net profit rises 41% YoY to Rs 2,683 crore

GAIL Limited reported a 40.6% YoY increase in net profit to Rs 2,683.11 crore for the quarter ended March (Q4 FY22). Its revenue from operations rose 73.4% YoY to Rs 26,968.21 crore during the same period. The cost of materials consumed jumped 207.4% YoY to Rs 3,171.4 crore in Q4. GAIL’s board declared a final dividend of ₹1 per share.

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Siemens’ board approves transfer of LDA biz to Siemens AG arm for Rs 440 crore

Siemens Ltd’s board has approved the sale of its Large Drivers Application (LDA) business to a subsidiary of Siemens AG for Rs 440 crore. The business will be transferred to Siemens Large Drives India Pvt. Ltd. (a subsidiary of Siemens Large Drives GmbH, which in turn is a subsidiary of Siemens AG). The LDA segment recorded a revenue of Rs 443 crore and an operating profit of Rs 25 crore in FY21.

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Ruchi Soya Q4 Results: Net profit falls 25% YoY to Rs 234 crore

Ruchi Soya Industries Ltd reported a 25.4% YoY decline in net profit to Rs 234.43 crore for the quarter ended March (Q4 FY22). Its revenue from operations rose 37.72% YoY to Rs 6,663.72 crore during the same period. The foods product segment registered a 15% increase in sales over the previous quarter. The company’s board has declared a dividend of Rs 5 per share.

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Adani Enterprises’ arm to acquire 50% stake in General Aeronautics

Adani Defence Systems and Technologies Ltd (ADSTL) will acquire a 50% stake in Bengaluru-based General Aeronautics Pvt Ltd. ADSTL is a wholly-owned subsidiary of Adani Enterprises Ltd. General Aeronautics is an end-to-end agri platform solution provider. It provides robotic drones and drone-based solutions for crop protection, yield monitoring, precision-farming, etc.

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SJVN signs pact to supply 200 MW solar power to discoms in Bihar

SJVN Limited has signed a power purchase agreement (PPA) for the supply of 200 megawatts (MW) from its solar power projects in Bihar to state discoms. The company has bagged this project at a tariff of Rs 3.11 per unit through Open Competitive Tariff Bidding organised by Bihar Renewable Energy Development Agency (BREDA). The project is scheduled to be commissioned by November, 2023.

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Adani Ports Acquires 100% Stake in Ocean Sparkle – Top Indian Market News

adani ports and sez

Adani Ports acquires 100% stake in marine services firm Ocean Sparkle

Adani Ports & Special Economic Zone Ltd’s (APSEZ) subsidiary, Adani Harbour Services Ltd, has entered into a definitive agreement for the acquisition of a 100% stake in Ocean Sparkle Ltd (OSL). OSL ranks first in India and 11th globally in providing end-to-end marine services. Key activities carried out by OSL include towage, pilotage, and dredging. It has an asset base of 94 owned vessels and 13 third-party-owned vessels.

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Hindustan Zinc Q4 Results: Net profit rises 18% YoY to Rs 2,928 crore

Hindustan Zinc ltd reported an 18% YoY increase in consolidated net profit to Rs 2,928 crore for the quarter ended March (Q4 FY22). Its revenue from operations rose 26.6% YoY (or 10% QoQ) to Rs 8,797 crore during the same period. EBITDA stood at Rs 5,007 crore, up 29% YoY or 14% QoQ. Mined metal production increased by 2.6% YoY to 295 metric kilotonnes. 

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Nykaa makes investments in Earth Rhythm, Nudge Wellness, Kica Active

Nykaa has made strategic investments in brands across the clean beauty, athleisure, and nutri-cosmetics categories. The company has acquired an 18.51% stake in Earth Rhythm, a clean beauty and personal care cosmetics brand, for Rs 41.65 crore. It has acquired a 60% stake in dietary supplement and nutri-cosmetics products maker Nudge Wellness. Nykaa has also acquired Kica, an activewear athleisure brand, for Rs 4.51 crore.

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Tejas Networks Q4 Results: Net loss at Rs 49 crore

Tejas Networks Ltd reported a net loss of Rs 49.62 crore for the quarter ended March (Q4 FY22). The company had posted a net profit of Rs 33.5 crore in Q4 FY21 and a loss of Rs 24 crore in Q3 FY22. Its revenue from operations fell 37.2% YoY to Rs 126.5 crore in Q4 FY22. Tejas Network’s order book stood at Rs 1,175 crore, up 73% YoY.

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Zen Tech secures order worth Rs 55 crore

Zen Technologies Ltd has signed an annual maintenance contract worth Rs 55 crore for simulators for a period of 5 years. The company’s total order book stands at Rs 477.04 crore. Hyderabad-based Zen Tech designs, develops, and manufactures world-class, state-of-the-art training simulators.

Allied Digital Services secures order worth Rs 85 crore

Allied Digital Services Ltd has secured an order from the Lucknow Safe City Project worth Rs 85 crore. The order includes setting up a city-wide surveillance system, artificial intelligence-based video analytics, integrated smart control room, data center, and cloud-based disaster recovery. The project has to be executed within 9 months. Allied Digital is an IT service management company based in Mumbai.

Wendt India Q4 Results: Net profit rises 40.9% YoY to Rs 7.47 crore

Wendt India Ltd reported a 40.94% increase in consolidated net profit to Rs 7.47 crore for the quarter ended March (Q4 FY22). Its revenue from operations rose 4.25% YoY to Rs 47.30 crore during the same period. Wendt India’s board has declared a final dividend of Rs 45 per share. The company manufactures and sells super abrasives, high precision grinding, honing, special purpose machines, and high precision components.

Maruti Suzuki plans its biggest product offensive to regain market share

Maruti Suzuki India is on track to execute one of its biggest product offensives this financial year (FY23). It aims to regain market share despite the uncertainties in the current business environment. The automaker launched the all-new XL6, a premium multipurpose vehicle (MPV) priced between Rs 11.29-14.55 lakh. An SUV jointly developed with Toyota, codenamed YFG, will take on segment leader Hyundai Creta. Meanwhile, the all-new Jimny is expected to challenge Mahindra Thar.

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Future Group lenders reject Reliance’s retail assets deal: Report

Lenders have rejected the slump sale proposal of Kishore Biyani’s Future Group to Reliance Retail Ventures (RRVL). The rejection by lenders comes amid a long-drawn legal challenge by US-based Amazon.com Inc. The e-commerce giant has accused Future of violating certain contracts by dealing with Reliance.

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Tata Elxsi’s Net Profit Rises 39% YoY in Q4 – Top Indian Market News

Tata Elxsi Q4 Results: Net profit rises 39% YoY to Rs 160 crore

Tata Elxsi Ltd reported a 39.95% YoY increase in net profit to Rs 160 crore for the quarter ended March (Q4 FY22). Its revenue from operations rose 31.51% YoY (or 7.3% QoQ) to Rs 681.7 crore during the same period. Tata Elxsi posted a 35% YoY increase in revenue to Rs 2,470.8 crore for FY 2021-22. Net profit stood at Rs 549.7 crore in FY22, up 49.3% YoY. The company’s board has declared a final dividend of Rs 42.5 per share.

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Future Group proposes to transfer 45% of its debt to Reliance: Report

Future Group has proposed to transfer 45% of its debt to the books of Reliance Industries Ltd on the sale of assets. However, lenders have not received any assurance from the hypermarket operator on whether the offer is endorsed by RIL. Against outstanding loans of Rs 28,921 crore owed by the 19 companies involved in the deal as of January 31, 2022, Future Group has proposed a transfer of Rs 12,612 crore owed to lenders and domestic & offshore bondholders to RIL.

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Alembic Pharma gets tentative approval for Ivabradine tablets

Alembic Pharmaceuticals Ltd has received tentative approval from the US Food & Drug Administration (USFDA) for Ivabradine tablets. The drug is indicated to reduce the risk of worsening heart failure in adult patients with stable, symptomatic chronic heart disease with left ventricular ejection fraction. According to IQVIA data, Ivabradine tablets had an estimated market size of $102 million for the 12 months ended December 2021.

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PSP Projects secured orders worth Rs 940 crore in FY22

PSP Projects Ltd received orders worth Rs 938.76 crore (including orders worth Rs 503.56 crore for the construction of a sports complex at Ahmedabad) in FY22. The total work orders at the end of FY 2021-22 stood at Rs 1,802.23 crore. The company has also secured orders worth Rs 327.4 crore in the current financial year (FY23).

ITC to commence 20th manufacturing facility in West Bengal

ITC Limited will set up a new state-of-the-art personal care manufacturing unit in Howrah, West Bengal. It will be ITC’s 20th facility in the state. The company is also in the process of commissioning a green building in the Rajarhat area. It will house the FMCG firm’s information technology arm ITC Infotech. Over the last few years, ITC has invested nearly Rs 4,500 crore in West Bengal.

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Cement demand expected to grow 7-8% in FY23

As per an ICRA report, cement demand in India is expected to grow by 7-8% to ~382 million metric tonnes in the current financial year (FY23). This will be aided by strong demand from rural housing and infrastructure sectors. The recent budgetary allocation of over Rs 9.2 lakh crore towards agriculture, affordable housing, and capital expenditure could boost cement demand.

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Mastek Q4 Results: Net profit rises 16.5% YoY to Rs 88.2 crore

Mastek Limited reported a 16.5% YoY increase in net profit to Rs 88.2 crore for the quarter ended March (Q4 FY22). Net profit grew 5.7% compared to the previous quarter. Its revenue from operations rose 20.3% YoY (or 5.4% QoQ) to Rs 581.5 crore during the same period. Mastek secured contracts worth more than $65 million in Q4 FY22. The IT company’s board has declared a final dividend of Rs 12 per share.

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Ajanta Soya’s board approves 5:1 stock split

The Board of Directors of edible oils manufacturer Ajanta Soya Ltd has approved a stock split in the ratio of 5:1. For every one share held, investors will receive five shares after the split takes place. The record date for the purpose of the stock split will be intimated in due course. A stock split happens when a company increases the number of its shares to boost the stock’s liquidity. 

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Nykaa partners with Aveda to launch premium salon chain

Nykaa has partnered with haircare brand Aveda to launch a premium salon chain across India. The first Aveda X Nykaa salon will be launched in Bengaluru on Thursday, followed by Delhi and Mumbai. The stores will house spa rooms, manicure/pedicure stations, and hair & makeup stations. The salons will offer Nykaa’s best-selling products and Aveda’s haircare range.

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Domestic air passenger traffic rises 6.1% YoY in Q4

Domestic air passenger traffic in the January-March period (Q4 FY22) stood at 248 lakh, recording a 6.1% YoY growth. In March alone, domestic airlines carried 106.96 lakh passengers, a 36.7% YoY increase compared to Feb. IndiGo continued to maintain its leadership position in March with a market share of 54.8%. The data was released by the Directorate General of Civil Aviation (DGCA).

HDFC to sell 10% stake in HDFC Capital to ADIA

HDFC Ltd will sell a 10% stake in private equity arm HDFC Capital Advisors Ltd. to a wholly-owned subsidiary of Abu Dhabi Investment Authority (ADIA) for ~Rs 184 crore. ADIA is also the primary investor in the alternative investment funds managed by $3-billion HDFC Capital.

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Market News Top 10 News

Wholesale Inflation Rises to 14.23% in November – Top Indian Market News

Wholesale inflation rises to 14.23% in November

Wholesale price inflation (WPI) surged to a 12-year high of 14.23% in November, compared to 12.54% in October. The WPI inflation has been in double digits for the past 8 months. The high rate of inflation is primarily due to the rise in prices of mineral oils, basic metals, crude petroleum, natural gas, chemicals products, and food. Inflation in the fuel and power basket was higher at 39.81% in November, as against 37.18% in October.

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ABFRL to buy exclusive rights to sell, distribute Reebok in India

Aditya Birla Fashion & Retail Ltd (ABFRL) has signed a long-term licensing agreement with US-based Authentic Brands Group to distribute and sell Reebok products in India and other Southeast Asian countries. The deal signals ABFRL’s entry into India’s sports and activewear segment. The company will sell Reebok products through wholesale and e-commerce.

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Nykaa to invest Rs 100 crore over 2-3 years to expand retail footprint

Nykaa has set aside almost Rs 100 crore of capital expenditure over 2-3 years, said Group CFO Arvind Agarwal. The company plans to expand its retail footprint as it believes in an omnichannel strategy. He further stated that Nykaa’s ambition is to be in the top 100 cities in the country, which would mean 250-300 stores within the next 3 years. They are also investing in fulfillment centres, including large mechanised and tech-driven warehouses.

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Adani Green signs pact with SECI to supply 4,667 MW solar project

Adani Green Energy Ltd (AGEL) has signed an agreement with the Solar Energy Corporation of India (SECI) to supply 4,667 megawatts (MW) of green power. This is the world’s largest-ever green power purchase agreement (PPA). AGEL has a total portfolio of 20.3 gigawatts (GW), including operational and under-construction projects. The Adani Group has committed to a $50-70 billion investment in the renewables space.

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Glenmark’s subsidiary enters pact with Almirall for novel drug to treat autoimmune diseases

Ichnos Sciences, a subsidiary of Glenmark Pharmaceuticals, has entered into an exclusive agreement with Spain-based Almirall to out-license its novel monoclonal antibody therapy ISB 880. The drug is used in the treatment of autoimmune diseases. As per the agreement, Ichnos will receive an upfront payment of €20.8 million (~Rs 178.5 crore). It will also obtain additional development & commercial milestone payments and royalties based upon future global sales.

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L&T Infotech opens new delivery center in Hyderabad

Larsen & Toubro Infotech (LTI) has expanded its operations in Hyderabad by setting up a new facility in the city. The 1.1 lakh sq. ft. state-of-the-art delivery center is designed and equipped to house over 3,000 employees. The centre will focus on delivering digital, data, and cloud solutions to global clients.

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Lupin receives EIR from USFDA for its manufacturing site in Goa

Lupin Ltd has received an establishment inspection report (EIR) from the US Food & Drug Administration (USFDA) for its Goa manufacturing facility. This indicates that the pharma company is probably closer to resolving the drug regulator’s warning letter. EIR means the closure of inspection. USFDA inspected the facility in September 2021 and issued 7 observations, which were mostly related to the investigation of out-of-specification (OOS) drug productions. 

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Orion Corp selects Infosys to transform ERP, planning platforms

Finland-based pharma company Orion Corporation has selected Infosys Ltd to transform its enterprise resource planning (ERP) and planning platforms. The IT major will also enhance Orion’s employee experience and drive business value realisation. Infosys will adopt standardised best SAP practices to enable end-to-end visibility across Orion’s operations and reduce business costs.

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Natco Pharma proposes to acquire Dash Pharmaceuticals

Natco Pharma Ltd has announced plans to acquire Dash Pharmaceuticals LLC, subject to the satisfactory completion of due diligence and execution of definitive agreements. US-based Dash Pharma is a front-end pharmaceutical sales, marketing, and distribution entity. This acquisition provides Natco with a front-end to engage with its customers directly in the US, which is the largest pharmaceutical market in the world.

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Bharti Airtel partners with Capgemini to bring 5G-based solutions for Indian enterprises

Bharti Airtel has partnered with French IT company Capgemini to bring 5G-based enterprise-grade solutions to the Indian market. Under this partnership, both firms will bring together their experience in 5G solutions and system integration capabilities to develop a range of India-focused use cases. Two 5G use cases (smart health and remote assistance) have already been deployed by Capgemini at Bharti Airtel’s 5G lab.

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L&T Construction secures order for buildings, factory business

Larsen & Toubro’s construction arm has received a large order for its buildings and factories business from the Odisha government to construct clinical blocks and allied infrastructure for a hospital in Cuttack. The duration of the engineering, procurement, and construction (EPC) project is 30 months. The project involves the construction of four clinical blocks comprising composite structural systems and other ancillary buildings.

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Editorial

Nykaa IPO: All You Need To Know

What a thrilling year for startups! After Zomato, companies such as Paytm, Oyo, and MobiKwik are lining up to launch their IPOs. FSN E-Commerce Ventures Ltd, the parent company of Nykaa, has launched its initial public offering (IPO) today— October 28. It is a unicorn (startup with more than $1 billion valuation) led by women with a lot of growth potential. In this article, learn more about Nykaa and its IPO.

Company Profile – FSN E-Commerce Ventures (Nykaa)

FSN E-Commerce Ventures Ltd is a digitally native consumer technology platform. It delivers content-led lifestyle retail experiences to consumers. The company has a diverse portfolio of beauty, personal care, and fashion products. It sells cosmetics, clothes, and grooming products. 

The company operates under two verticals:

  • Nykaa: Beauty and personal care
  • Nykaa Fashion: Apparel and accessories

FSN E-Commerce Ventures (Nykaa) was established in April 2012 by Falguni Nayar, a former investment banker. She ventured into beauty and cosmetics products as it was an underpenetrated segment in online e-commerce at that time. Now, her company has grown multi-fold into one of India’s top digital retail sites for beauty products. Nykaa is seeking a valuation of $7 billion (~Rs 52,315.55 crore)!

The company records ~1.5 crore average monthly unique visits and lists over 4,000 brands on its platform. They own six prominent brands— Nykaa Cosmetics, Nykaa Naturals, Kay Beauty, Nykd by Nyka, Twenty Dresses, and Pipa Bella. Apart from its online presence, Nykaa currently operates 80 physical stores across 40 cities in India. It has grown into one of the preferred destinations for certain luxury and prestige products in India for consumers and brands. The company also focuses on educating consumers via digital content, digital communities, and tech-product innovations, which is an integral component of its business model.

About the IPO

FSN E-Commerce Ventures’ public issue opens on October 28 and closes on November 1. The company has fixed Rs 1,085-1,125 per share as the price band for the IPO. 

The fresh issue of shares (of the face value of Rs 1 each) aggregates to Rs 630 crore. The offer for sale (OFS) of up to Rs 4.19 crore equity shares from existing shareholders aggregates to Rs 4,721.92 crore. Individual investors can bid for a minimum of 12 equity shares (1 lot) and in multiples of 12 shares thereafter. You will need a minimum of Rs 13,500 (at the cut-off price) to apply for this IPO. The maximum number of shares that can be applied by a retail investor is 168 equity shares (14 lots).

Objectives of the Issue 

Nykaa will utilise the net proceeds from the IPO for the following purposes:

  1. Investment of Rs 42 crore in subsidiaries FSN Brands and/or Nykaa Fashion for funding the establishment of new retail stores.
  2. Rs 42 crore towards capital expenditure and investment in its subsidiaries Nykaa E-Retail, Nykaa Fashion, and FSN Brands for funding the set-up of new warehouses.
  3. Rs 156 crore towards repayment or prepayment of outstanding borrowings availed by the company and one of their subsidiaries, Nykaa E-Retail.
  4. Expenditure of Rs 234 crore for enhancing the visibility and awareness of its brands.
  5. General corporate purposes.

The total promoter in the company holding will fall from 54.22% to 52.56% post the IPO.

Financial Performance

Nykaa has turned profitable in the financial year ended 2020-21 (FY21). Despite the Covid-19 pandemic hitting non-essential spending for more than a year, the company has reported a surge in revenues. It posted a net profit of Rs 61.94 crore in FY21, compared to a net loss of Rs 16.34 crore in FY20. The revenue from operations rose 38.1% year-on-year (YoY) to Rs 2,440.8 crore in FY21. Nykaa reported a 35.3% increase in total orders to 1.71 core over the previous year. Thus, it has a capital-efficient business model with a combination of strong growth and profitability.

The company’s online business has been growing rapidly, with cumulative downloads of nearly 4.37 crore across all its mobile applications.

Source: Red Herring Prospectus

While the company’s domain was the Beauty and Personal Care segment, it has made considerable progress in its Fashion segment. A key indicator in the e-commerce space is the Gross Merchandise Value or GMV. It indicates the value of goods and services that are sold on a marketplace at a given point in time. For Nykaa, the GMV is the monetary value of orders inclusive of taxes and gross of discounts. In FY21, the GMV in Beauty and Personal Care segment was Rs 33,804.10 crore, which is the amount of goods sold by the company inclusive of taxes and discounts before return or cancellation. 

Risk Factors

  • The failure to acquire new customers in a cost-efficient manner may affect the company’s profitability.
  • Nykaa’s core business depends heavily on the growth of India’s online commerce industry and its ability to effectively respond to changing user behaviour on digital platforms.
  • There are pending litigations against the company, its subsidiaries, and its directors. Any adverse decisions in legal proceedings may render them liable to penalties.
  • Failure to identify and effectively respond to changing consumer preferences, spending patterns, and changing fashion trends in a timely manner may harm Nykaa’s overall operations.
  • Changing regulations in India could lead to new compliance requirements that are uncertain.
  • Any harm to the company’s brand or reputation may adversely affect its financial condition and cash flows.

IPO Details in a Nutshell

The book-running lead managers to the public issue are BofA Securities India, Citigroup Global Markets India, ICICI Securities, JM Financial Consultants, Kotak Mahindra Capital, and Morgan Stanley India.

Ahead of the IPO, the company was able to raise Rs 2,396 crore from 184 anchor investors.

Conclusion

The first two weeks of November will be raining with IPOs. Mostly tech IPOs such as Paytm, PolicyBazaar, Nykaa, and MobiKwik. The IPOs are coming out all at once with extremely high valuations and buzz in the market. It might leave the market out of liquidity. Nykaa is the first IPO going up in November and might therefore have a first-mover advantage. The company has grown significantly in a very small period, much faster than its other tech-commerce peers.  

Nykaa scored two consecutive losses in the past financial years. According to SEBI regulations, the company needs to offer not less than 75% of the Net Offer to Qualified Institutional Buyers (QIBs). This will bring down the retail quota from 35% to 10% as is the requirement laid down by SEBI. Therefore, retail investors like you and me have a lesser chance of getting an allotment. 

In today’s trend and time, wherein tech startup giants have extremely inflated valuations supported by the post-COVID market boom, it is difficult to project where these stocks might be headed. Just like its tech peers, Nykaa too is on the same path. The company’s growth has been good, it recorded a net profit last year despite the Covid-19 pandemic. Its key metrics hint towards a flourishing business. Even if one was to say that Nykaa is overvalued, one cannot question its growth metrics. Conclusively, there is considerable room for Nykaa’s IPO to be a successful one.  

What are your views on this IPO? Will you be applying for it? Let us know in the comments section of the marketfeed app.