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Govt to Sell 1.5% Stake in ONGC to Raise Rs 3,000 crore – Top Indian Market News

ONGC market updates | marketfeed

Govt to sell up to 1.5% stake in ONGC to raise Rs 3,000 crore

The Indian govt will sell up to 1.5% stake in Oil & Natural Gas Corporation Ltd (ONGC) to raise Rs 3,000 crore. The offer for sale (OFS) by the government will be open on March 30 and 31. The floor price for the OFS has been set at Rs 159 per share. This price is at a 7% discount to the Rs 171.05 stock closing price of ONGC on the BSE today. The Central government currently holds a 60.41% stake in the country’s largest oil and gas producer.

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HDFC Bank to infuse Rs 3 crore to acquire stake in IDRCL

HDFC Bank has signed an agreement to invest Rs 3 crore in the first tranche to acquire a stake in India Debt Resolution Company Ltd (IDRCL). Incorporated on September 3, 2021, IDRCL operates as a debt management company. The private sector lender will infuse Rs 7.50 crore in various tranches to acquire up to 15% equity holding in IDRCL.

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Bharti Airtel completes acquisition of 4.7% stake in Indus Towers

Bharti Airtel and its subsidiary Nettle Infrastructure Investments Ltd have acquired 12.71 crore equity shares (or 4.7% stake) in Indus Towers from Vodafone Group. The consideration paid for the acquisition is ~Rs 2,388 crore. The proceeds from the sale will be infused into Vodafone Idea Ltd for clearing its dues. Indus Towers (formerly Bharti Infratel) owns, deploys, and manages telecom towers and communication structures across India.

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IDBI Bank board approves rupee bond borrowing limit of Rs 8,000 crore for FY23

IDBI Bank’s board has approved the rupee bond borrowing limit of Rs 8,000 crore for the next financial year beginning April 1. It will comprise additional tier I (AT-1) bonds up to Rs 3,000 crore and senior/infrastructure bonds up to Rs 1,000 crore by way of private placement during FY23. 

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Fuel prices hiked for 7th time in 8 days

Fuel prices were increased again on Tuesday for the seventh time in the last eight days. In Delhi, petrol rates were hiked by 80 paise a litre to cross the Rs 100 mark and diesel by 70 paise a litre. Globally, oil prices dropped today as Ukraine and Russia headed for peace talks and on fears of a decline in fuel demand in China after the financial hub of Shanghai shut down to curb a surge in Covid-19 cases. 

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Engineers India wins consultancy services contract for green hydrogen plant

Bharat Oman Refineries Ltd (BORL) has selected Engineers India Ltd for providing consultancy services for an electrolyzer-based green hydrogen plant at Bina Refinery. It will be one of the largest green hydrogen plants in India, with a capacity of ~8.5 tonnes per day (TPD). State-owned Engineers India provides indigenous design and technology solutions primarily for hydrocarbon projects.

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Cyient launches Firmware Over-the-Air solution for connected devices

Cyient Ltd has announced a pre-built solution for managed Firmware Over-the-Air (FOTA) updates from its CyientflQ innovation platform. CyientflQ helps to correct technological disruptions and enables the development of new solutions in collaboration with partners. The FOTA solution is designed to further boost the development of intelligent and connected products for Cyient’s customers. 

Embassy REIT to enter into Rs 950 crore debt financing agreement with Golflinks Software Park

The Board of Directors of Embassy Office Parks Management Services has approved a debt financing agreement between Embassy Office Parks REIT and its investment entity, Golflinks Software Park (GLSP), for ~Rs 950 crore. Embassy REIT will subscribe to privately placed unlisted non-convertible debentures issued by GLSP (REIT Debt Financing). To learn more about REITs, click here.

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Alembic Pharma acquires 100% stake in Aleor Dermaceuticals from JV partner

Alembic Pharmaceuticals Ltd has acquired the balance 40% stake in Aleor Dermaceuticals from its joint venture (JV) partner Orbicular Pharmaceutical Technologies. Through this acquisition, the pharma company aims to strengthen its skin-related manufacturing and marketing footprint. Aleor’s product offerings include creams, gels, ointments, shampoos, lotions, sprays, etc.

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PNC Infratech secures NHAI road project worth Rs 1,575 crore

PNC Infratech Ltd was declared the lowest (L-1) bidder for a project tendered by the National Highways Authority of India (NHAI). The project includes the construction of a six-lane access controlled greenfield highway from the MIVKN Border (Badadat) to the Maradgi S Adnola section of NH-150C in Karnataka. The total bid cost of the project is Rs 1,575 crore.

In other news, the NHAI declared Ashoka Buildcon Ltd as the lowest bidder for a greenfield highway project worth Rs 1,079 crore.

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IT Dept raid at Hero MotoCorp reveals Rs 1,000 crore bogus expenses: Report 

As per reports, the Income Tax Department is analysing nearly Rs 1,000 crore in expenses that are suspected to be bogus in a probe at Hero MotoCorp. The department is going through digital data and various other documents as part of its investigation. Further, the IT dept is also probing the deal of a farmhouse on the outskirts of Delhi where cash worth Rs 100 crore was allegedly paid.

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India’s Top Upstream & Downstream Oil Companies: An Analysis

The oil and gas industry is one of the eight core industries in India. It has a powerful influence on all vital sections of our economy. Based on their operations and position in the supply chain for crude oil and its products, oil companies can be mainly divided into two: Upstream & Downstream. From exploration and production of oil to refinement and distribution, these companies play a crucial role in India’s economic growth.

In this article, learn about the major upstream and downstream oil companies of India.

What are Upstream Oil Companies?

The upstream segment is responsible for finding and producing crude oil and natural gas. This includes searching for potential oil fields, drilling exploratory wells, and examining whether they have the potential to deliver a sizable amount of oil. The companies involved in this segment also recover crude oil and natural gas to the surface. Such entities are also known as Exploration and Production (E&P) companies. They are heavily dependent on research and development (R&D) activities. The members of E&P companies include geologists, scientists, engineers, and seismic experts.

Modern oil exploration relies on geological surveys conducted using electronic equipment and artificial intelligence (AI). Mechanical drilling and fracking equipment has become more advanced and efficient over the past few years.

Oil & Natural Gas Corporation (ONGC)

Oil and Natural Gas Corporation (ONGC) Ltd is the largest producer of crude oil and natural gas in India. Its operations are primarily centered around the extraction of oil. The company accounts for ~71% of India’s total crude oil production. 

ONGC operates nearly 105 oil drilling rigs and 74 workover (portable) rigs. It owns more than 11,000 km of oil pipelines across India. Downstream oil companies such as Indian Oil Corp. (IOCL), BPCL, and HPCL use the crude extracted by ONGC as their raw material.

The Government of India (GoI) holds a majority stake (60.4%) in the company. ONGC comes under the administrative control of the Ministry of Petroleum & Natural Gas. You can learn more about the energy giant here.

Oil India Limited (OIL)

State-owned Oil India Ltd explores, develops, and produces crude oil and natural gas in India and internationally. The company operates 1,157 kilometers of cross-country crude oil pipelines. It also owns 13 drilling rigs, 14 work-over rigs, and 10 crude oil pumping stations in Assam, West Bengal, and Bihar.

OIL has participating interests in New Exploration Licensing Policy (NELP) blocks in Mahanadi Offshore, Mumbai Deepwater, and Krishna Godavari Deepwater. It is also involved in various offshore projects in Libya, the United States, Nigeria, Sudan, Venezuela, etc.

Reliance Industries Ltd

Reliance Petroleum, a subsidiary of RIL, is one of the major private players in the Indian upstream oil market. It operates two prominent oil rigs in the Bay of Bengal— Dhirubhai Deepwater (DD) KG-1 and DD KG-2. Reliance Industries also owns the largest refinery in the world— the Jamnagar oil refinery. It has the capacity to produce 1.97 lakh cubic meters of crude oil every day!

Larsen & Toubro Ltd

The leading engineering and construction company works on several projects that deal with the extraction of oil and its processing. L&T also offers critical equipment and systems for oil & gas projects. The company’s hydrocarbon business caters to the entire hydrocarbon value chain, including oil & gas processing, petroleum refining, chemicals & petrochemicals.

BP Plc

BP Plc is a British multinational oil and gas company headquartered in London. In 2020, the company formed an Indian joint venture (JV) with Reliance Industries Ltd. Operating under the “Jio-bp” brand, the JV aims to become a leading player in India’s fuel and mobility markets.

What are Downstream Oil Companies?

Downstream oil companies are involved in the refining, manufacturing, and marketing of petroleum products. This segment consists of oil refineries, petrochemical plants, and fuel distributors/retailers. They offer products such as petrol, diesel, natural gas, jet fuel, synthetic rubber, plastics, pesticides, pharmaceutical ingredients, and much more. Thus, downstream oil companies oversee the critical final steps of refining and converting crude oil into final products, which are then sold to end-consumers.

Indian Oil Corporation Ltd (IOCL)

IOCL is engaged in the refining, transportation, research & development, and marketing of petroleum products in India. Its products include petrol, diesel, lubricants, greases, aviation fuel, industrial fuels, and marine oils. The state-owned company operates 11 refineries across India, ~15,000 km of crude oil & gas pipelines, and 7 foreign subsidiaries. IOCL holds a 32% market share in the downstream oil industry.

Hindustan Petroleum Corporation Ltd (HPCL)

HPCL, a subsidiary of ONGC Ltd, refines and markets petroleum products in India and across the globe. The company offers petrol, diesel, kerosene, liquefied petroleum gas (LPG), naphtha lubricants, greases, and aviation turbine fuel. It also markets and exports bitumen, jet and marine fuel, marine lubes. 

As of March 2021, HPCL’s operating network consisted of 18,634 retail outlets, 6,192 LPG distributors, 46 aviation service facilities, and 41 oil & gas terminals. The company owns two refineries in Mumbai and Visakhapatnam. HPCL has secured a market share of 25% in the downstream oil sector.

Bharat Petroleum Corporation Ltd (BPCL)

BPCL refines crude oil and markets petroleum products in India. It has a network of ~15,402 fuel stations that sell petrol, diesel, automotive liquefied petroleum gas (LPG), and compressed natural gas. The company also offers automotive engine oils, gear oils, greases, and jet fuel to airlines. BPCL operates oil refineries in Mumbai, Bina (Madhya Pradesh), Numaligarh, and Kochi. They operate 2,241 km of multi-product pipelines. 

BPCL has a ~24% market share in India’s downstream oil sector.

The Way Ahead

Global crude oil prices have touched the roof amidst Russia’s invasion of Ukraine. There is a notable surge in demand, and the supply chains have broken. The oil market will face its biggest supply crisis in decades until the Organization of Petroleum Exporting Countries (OPEC) boosts production. A further increase in oil prices can push prices of essential commodities to higher levels.

Meanwhile, OPEC has projected that India’s demand for oil will double from current levels to ~11 million barrels per day by 2045. Due to the increasing demand for petroleum products, the Indian government has introduced various policies and subsidies to support upstream and downstream oil companies. It has even allowed 100% foreign direct investment (FDI) in upstream and private sector refining projects.

However, most oil companies mentioned above are now making a slow transition to renewable energy options. Crude oil, hydrocarbon, natural gas, and other fossil fuels are limited in nature. Such resources have been depleting rapidly in recent years. In the future, there will be a time when oil becomes scarce. India has pledged to decrease the carbon emission concentration in its GDP by 33%-35% by 2030 from the levels of 2005. The government also aims to double the country’s consumption of renewable energy to 20% by 2025.

Large oil companies are investing heavily in green energy projects and electric charging infrastructure to help India achieve these ambitious targets. Let us look forward to seeing how they execute their strategic plans.

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

JSPL to start building Botswana coal mine in 2022

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

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

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

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ABB Power Products rebrands itself as Hitachi Energy India

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

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

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

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Zydus Cadila gets USFDA approval for Nelarabine injection

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

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HPCL partners with IDFC First Bank for fuel payments using FASTags

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

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

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

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

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

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

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

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Retail Inflation Rises to 4.48% in October – Top Indian Market News

Retail inflation rises marginally to 4.48% in October

India’s retail inflation, as measured by the Consumer Price Index (CPI), rose marginally to 4.48% in October from 4.35% in September. This is the fourth successive month that the CPI data has come below the Reserve Bank of India’s (RBI) upper margin of 6%. Food inflation has increased slightly to 0.85% in October from 0.68% in September.

Meanwhile, India’s factory output, measured in terms of the Index of Industrial Production (IIP), witnessed a 3.1% year-on-year (YoY) growth in September. The mining sector saw a growth of 8.6% YoY to 95.1 in September, while the manufacturing sector saw a rise of 2.7% YoY to 129.9. 

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ONGC Q2 Results: Net profit jumps 565% YoY to Rs 18,347 crore 

Oil and Natural Gas Corporation (ONGC) Ltd reported a 565% YoY jump in net profit to Rs 18,347 crore for the quarter ended September (Q2 FY22). Its revenue from operations rose 44% YoY to Rs 24,353.6 crore during the same period. The operating margin expanded to 48.17% in Q2 FY22 compared to 37.78% in Q2 FY21. ONGC’s board has declared an interim dividend of Rs 5.5 per share.

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KEC International wins orders worth Rs 1,415 crore

KEC International Ltd has secured new orders worth Rs 1,415 crore in the Civil and Oil & Gas Pipeline businesses in India. The company has received an order from Chennai Metro Rail Limited (CMRL) for the construction of elevated viaduct along with 11 stations. It has received a civil infra works order from a defence entity. KEC International has also secured an order from Indian Oil Corp for the laying of oil and gas pipelines.

Vodafone Idea Q2 Results: Net loss narrows to Rs 7,132 crore

Vodafone Idea (Vi) reported a consolidated net loss of Rs 7,132.3 crore for the quarter ended September (Q2 FY22). It had posted a net loss of Rs 7,319 crore in the previous quarter. Its revenue from operations rose 3% QoQ to Rs 9,406.4 crore during the same period. Vi’s operating profit rose 4.2% QoQ to Rs 3,862.9 crore. The average revenue per user (ARPU) stood at Rs 109 in Q2, an increase of 4.8% QoQ.

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Grasim Industries Q2 Results: Net profit jumps 180% YoY to Rs 979 crore

Grasim Industries Ltd reported a 180% YoY jump in net profit to Rs 979.1 crore for the quarter ended September (Q2 FY22). Its revenue from operations rose 67% YoY to Rs 4,933 crore during the same period. The company’s operating profit increased 87% YoY to Rs 1,504 crore. Grasim’s chemical business posted a 44.5% YoY growth in total sales to Rs 1,627 crore in Q2. 

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Ramkrishna Forgings partners with ePropelled to manufacture eDTS motor technology

Ramkrishna Forgings has signed a Memorandum of Understanding with ePropelled (USA), a technology company that offers leading-edge electric propulsion systems. The two companies will develop eAxle products based on ePropelled’s patented Dynamic Torque Switching™ (eDTS) technology. The solution increases power efficiency by at least 15%, allowing manufacturers to reduce the size and cost of their battery packs.

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Coal India Q2 Results: Net profit falls marginally to Rs 2,933 crore

Coal India Ltd reported a 0.6% YoY decline in consolidated net profit to Rs 2,933 crore for the quarter ended September (Q2 FY22). Net profit fell 7.5% compared to the previous quarter. Its revenue from operations rose 10% YoY to Rs 23,291 crore during the same period. The raw coal production improved to 125.83 million tonnes (MT) in Q2 FY22, compared to 114.98 MT in Q2 FY21.

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Airtel Payments Bank to double business correspondent network to 1 million a year

According to a report from Economic Times, Airtel Payments Bank plans to double its countrywide business correspondents (BCs) network to 1 million in the next 12 months. It also aims to drive monetisation through a combination of transactions and interest-based income, besides boosting revenues from cash management services in the business-to-business (B2B) space. APB is looking to gain the necessary reach to cater to the remittances market and the Aadhar-enabled payment services business to serve millions of potential customers.

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Hindalco Q2 Results: Net profit jumps 783% YoY to Rs 3,417 crore

Hindalco Industries Ltd reported a 783% YoY jump in consolidated net profit to Rs 3,417 crore for the quarter ended September (Q2 FY22). Net profit increased 23% compared to the previous quarter. Its revenue from operations rose 52.6% YoY to Rs 47,665 crore during the same period. EBITDA stood at Rs 8,048 crore in Q2, a growth of 56% YoY (or 19% QoQ). Hindalco said its Q2 performance was largely driven by a strategic product mix, higher volumes, and stability in operations.

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SJVN signs pact with Solarworld to develop 75 MW solar power project in UP

SJVN Limited has signed an agreement with Noida-based Solarworld Energy Solutions to develop a 75 megawatt (MW) solar power project at Parasan Solar Park in Uttar Pradesh. The total cost of the project is Rs 313.59 crore. The project will generate 168.34 million units (MU) of energy annually with a capacity utilisation factor (CUF) of 25.06%.

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Motherson Sumi Q2 Results: Net profit falls 36% YoY to Rs 217 crore

Motherson Sumi Systems Ltd (MSSL) reported a 35.8% YoY decline in net profit to Rs 216.96 crore for the quarter ended September (Q2 FY22). Its revenue from operations fell 5.9% YoY to Rs 14,076.39 crore during the same period. Total expenses fell by 3% YoY to Rs 14,001.29 crore in the second quarter.

Read more here.

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ICICI Bank Reports 30% YoY Rise in Net Profit in Q2 – Top Indian Market News

ICICI Bank Q2 Results: Net profit rises 30% YoY to Rs 5,511 crore

ICICI Bank reported a 30% YoY increase in net profit to Rs 5,511 crore for the quarter ended September (Q2 FY22). Net profit rose 19% compared to the previous quarter. Its net interest income (NII) rose 25% YoY to Rs 11,690 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 4.82% in Q2, compared to 5.15% in the previous quarter. Provisions declined by 9% YoY to Rs 2,714 crore in the July-Sept quarter of FY22. 

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Minda Industries to hike stake in Strongsun Renewables to 28.10%

Minda Industries Ltd said the Investment Committee of its Board of Directors has approved the second round of stake purchase in Strongsun Renewables Pvt Ltd. The committee approved the acquisition of 3.07 lakh equity shares (of the face value of Rs 10 each) at Rs 80 per share of Strongsun Renewables, aggregating to Rs 2.46 crore. After completion of the transaction, Minda Industries will hold a 28.10% stake in the special purpose vehicle (SPV).

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Tatva Chintan Pharma Q2 Results: Net profit jumps 811% YoY to Rs 32 crore

Tatva Chintan Pharma Chem reported an 811.5% YoY jump in consolidated net profit to Rs 32.41 crore for the quarter ended September (Q2 FY22). Net profit increased by 40% compared to the previous quarter. Its revenue from operations rose 105.8% YoY (or 16% QoQ) to Rs 123.6 crore during the same period. EBITDA stood at Rs 35.8 crore in Q2, up 477% YoY (or 39% QoQ). 

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Ami Organics Q2 Results: Net profit rises 14% YoY to Rs 17.5 crore

Ami Organics Ltd reported a 14.78% YoY increase in consolidated net profit to Rs 17.47 crore for the quarter ended September (Q2 FY22). Net profit increased by 27% compared to the previous quarter. Its revenue from operations rose 33.9% YoY (or 8% QoQ) to Rs 122.31 crore during the same period. EBITDA stood at Rs 27.3 crore in Q2, an increase of 27% YoY.  Ami Organics is one of the leading research and development (R&D)-driven manufacturers of specialty chemicals. 

Exxon looks to buy stake in ONGC’s Indian deep sea fields

Global oil major ExxonMobil Corp is looking at buying a stake in some of the local deepwater fields of Oil and Natural Gas Corporation (ONGC), said Oil Secretary Tarun Kapoor. India, the world’s third-largest importer and consumer of oil, imports ~85% of its oil needs from overseas. The government has been scouting for partnerships with global oil companies to quickly monetise its reserves. Exxon would either acquire a stake in the Indian fields or form a joint venture with ONGC to operate them.

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Orient Electric Q2 Results: Net profit rises 7% YoY to Rs 34 crore

Orient Electric reported a 7.25% YoY increase in net profit to Rs 34.77 crore for the quarter ended September (Q2 FY22). Net profit jumped 595% compared to the previous quarter. Its revenue from operations rose 37% YoY (or 41% QoQ) to Rs 594.38 crore during the same period. Revenue from its electrical consumer durables segment rose 49.33% YoY to Rs 454.5 crore. The company’s total expenses stood at Rs 549.17 crore in Q2, up 40.38% YoY.

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Whistle-blower alleges related party transactions by Asian Paints promoters

A whistle-blower has red-flagged related party transactions (RPTs) carried out by the promoters of Asian Paints Ltd (APL), which allegedly benefited them at the cost of the company’s shareholders. The whistle-blower informed market regulator SEBI that money to buy a company called Paladin Paints and Chemicals (PPC) went from APL. However, APL’s promoters Ashwin Dani and son Malav now control it in their personal capacity. SEBI has sought further details from the whistle-blower.

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MCX Q2 Results: Net profit falls 44% YoY to Rs 33 crore

Multi Commodity Exchange of India (MCX) reported a 44% YoY decline in consolidated net profit to Rs 44 crore for the quarter ended September (Q2 FY22). Net profit fell 18% compared to the previous quarter. Its revenue from operations declined by 30% YoY (or 5% QoQ) to Rs 82 crore during the same period. EBITDA stood at Rs 34 crore in Q2, a decline of 49% YoY.

Petrol, diesel prices hiked for fourth consecutive day

The prices of petrol and diesel soared to new record highs across the country after the rates were hiked for the fourth consecutive day on Saturday. State-run oil marketing companies (OMCs) have increased the fuel rates by 35 paise per litre each. Following the latest price revision, petrol is retailing at Rs 107.24 per litre in Delhi. The cost of diesel stands at Rs 95.97 per litre in the national capital.

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Real estate sector to touch $1 trillion by 2030: Niti Aayog

The real estate sector plays a multiplier effect in the development of the economy and is expected to reach a market size of $1 trillion by 2030, said Niti Aayog CEO Amitabh Kant. He further said that the sector will account for 18-20% of India’s gross domestic product (GDP). Kant noted that the real estate sector and its stakeholders also play a critical role in supporting the ‘housing for all’ initiative of the government. Real Estate Investment Trusts (REITs) are expected to create opportunities worth Rs 1.25 lakh crore in the coming years.

Read more here.

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SJVN to Set Up 1,000 MW Solar Power Project – Top Indian Market News

SJVN to set up 1,000 MW grid-connected solar power project

Satluj Jal Vidyut Nigam (SJVN) has secured a contract to set up a 1,000 megawatt (MW) grid-connected solar power project through the bids floated by the Indian Renewable Energy Development Agency (IREDA). The tentative cost for the construction and development of the project is Rs 5,500 crore. It is expected to generate 2,365 million units (MU) of power in the first year. The power generated from the project will be solely for self-use or use by government entities, either directly or through power distribution companies (DISCOMs).

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Zydus Cadila signs pact with Shilpa Medicare to manufacture ZyCoV-D vaccine

Cadila Healthcare Ltd has entered into a definitive agreement with Shilpa Medicare to manufacture its Covid-19 vaccine ZyCoV-D. Shilpa Medicare will produce and supply the vaccine from its integrated biologics R&D cum manufacturing center at Dharwad, Karnataka. India’s drug regulator had given emergency use authorisation for Cadila’s ZyCoV-D on August 20. It is the world’s first DNA plasmid vaccine that can be administered to adults and children aged 12 years and above.

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NBCC secures Rs 968 crore contract to construct 2,000 flats in the Maldives

State-owned NBCC Limited has secured a contract worth Rs 968.5 crore for the construction of 2,000 social housing units in the Maldives. This project is NBCC’s biggest-ever order in the overseas market. A loan agreement was signed between Fahi Dhiriulhun Corporation Limited (FDC) and Exim Bank of India for financing the project. The project covers over 7.2 acres of land across seven plots.

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Caplin Point Labs’s CRO arm completes USFDA audit with zero observations

The US Food & Drug Administration (USFDA) had completed a virtual audit of Caplin Point Laboratories’ clinical research organisation (CRO) division. The audit ended with zero observations. The pharma company said it is committed to maintaining the highest standards of quality and compliance at all its units. The CRO division, Amaris Clinical, performs clinical studies for submissions to various regulators.

Ircon International to set up 500 MW solar power plant

Ircon International Ltd has won a bid to set up a 500 megawatt (MW) solar power plant through an e-reverse auction under the Central Public Sector Undertaking (CPSU) Scheme-II floated by the Indian Renewable Energy Development Agency (IREDA). The approximate cost of the project is Rs 2,400 crore. State-owned Ircon International is a railway infrastructure company.

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IIFL Finance to raise up to Rs 1,000 crore via bonds

IIFL Finance Ltd will open a public issue of secured bonds on September 27 to raise up to Rs 1,000 crore. It will utilise the funds for business growth and capital augmentation. The bonds offer a yield of up to 8.5% per annum and a high degree of safety. The company will issue secured and redeemable non-convertible debentures (NCDs) aggregating to Rs 100 crore, with a greenshoe option to retain an over-subscription up to Rs 900 crore.

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Global oil and gas investment will be 30% below pre-Covid level: ONGC

Global investment in the upstream oil and gas sector this year will be around 30% below pre-Covid levels according to Oil and Natural Gas Corp (ONGC) Chairman Subhash Kumar. He also stated that industry outlooks expect India’s energy demand to double by 2050 with strong growth in natural gas. Meanwhile, ONGC has started gas production from the second deep-water well in its KG basin block in the Bay of Bengal.

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Auriopro launches ‘AuroPay’ platform to offer wide range of services in payment ecosystem

Aurionpro Solutions Ltd has expanded its footprint in the payment business by launching a payment platform. The company has incorporated Aurionpro Payments Pte Ltd (APPL) as a subsidiary in Singapore. APPL has unveiled ‘AuroPay’, an innovative payment platform that offers secure online payment services. The platform will provide gateway services to merchant organizations and become a one-stop shop covering a wide range of services in the payment ecosystem.

CCI fines United Breweries, Carlsberg in beer price-fixing case

The Competition Commission of India (CCI) has imposed a penalty of Rs 750 crore on United Breweries Ltd. and Rs 120 crore on Carlsberg India for indulging in cartelisation in the sale and supply of beer in the country. The two companies and SABMiller India engaged in price coordination and supply restrictions of beer between 2009 and 2018. CCI has also directed the companies, All India Brewers’ Association (AIBA), and various individuals to “cease and desist” from anti-competitive practices in the future.

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Vodafone Idea’s Net Loss Widens to Rs 7,319 crore in Q1 – Top Indian Market News

Vodafone Idea Q1 Results: Net loss at Rs 7,319 crore

Vodafone Idea Ltd (Vi) reported a net loss of Rs 7319.1 crore for the quarter ended June (Q1 FY22). It had posted a net loss of Rs 7,022.8 crore in the previous quarter (Q4 FY21). The telecom operator’s revenue fell 4.7% QoQ (or 14% YoY) to Rs 9,152.3 crore during the same period. Its wireless subscriber base stood at 25.54 crore as of June 2021, as it lost 1.23 crore subscribers since March. The average revenue per user (ARPU) stood at Rs 104 in Q1 FY22, compared to Rs 107 in Q4 FY21.

Vi’s gross debt stands at Rs 1,91,590 crore, including deferred spectrum payment obligations of Rs 1.06 lakh crore and AGR liabilities of Rs 62,180 crore.

Read more here.

Sobha Q1 Results: Net profit rises 73% YoY to Rs 11 crore

Sobha Limited reported a 73% YoY increase in consolidated net profit to Rs 11.4 crore for the quarter ended June (Q1 FY22). Its total income rose 46.1% YoY to Rs 525 crore during the same period. The company’s cash flows remained healthy during the April-June quarter (Q1), which resulted in a reduction in net debt. Bengaluru-based Sobha Ltd is one of the leading real estate developers in India.

Read more here.

Amara Raja Batteries Q1 Results: Net profit doubles to Rs 167 crore

Amara Raja Batteries Ltd (ARBL) reported a 98.8% YoY increase in net profit to Rs 167 crore for the quarter ended June (Q1 FY22). Its revenue from operations rose 63.85% YoY to Rs 1,886 crore during the same period. ARBL said automotive segment revenue grew on the back of strong growth in exports compared to last year. The company’s telecom and UPS applications registered strong year-on-year (YoY) growth in Q1.

Read more here. 

NTPC invites EOI to set up pilot project on hydrogen blending with natural gas

NTPC Limited has floated a global Expression of Interest (EOI) to set up a pilot project on hydrogen blending with natural gas in city gas distribution networks. The project will be the first of its kind in India and will explore the viability of decarbonizing India’s natural gas grid. State-run NTPC is also exploring the production of green ammonia to decarbonize the fertilizer industry. It aims to fulfill the government’s upcoming mandate of using a certain percentage of green hydrogen in the fertiliser and refinery sector.

Read more here.

SJVN Q1 Results: Net profit rises 13% YoY to Rs 342.13 crore

SJVN Limited reported a 13% YoY increase in consolidated net profit to Rs 342.13 crore for the quarter ended June (Q1 FY22). Its total income declined by 1.3% YoY to Rs 704.9 crore during the same period. Currently, SJCN has a portfolio of more than 9,000 MW and is executing 27 projects in the hydro, thermal, solar, and wind sectors in India. The state-run company announced that it has secured a 200 megawatt (MW) grid-connected solar PV power project worth Rs 1,000 crore in Bihar.

Read more here.

ONGC Q1 Results: Net profit jumps 772% YoY to Rs 4,335 crore

Oil and Natural Gas Corp (ONGC) reported a 772% YoY increase in net profit to Rs 4,334.8 crore for the quarter ended June (Q1 FY22). Net profit has declined by 35.6% when compared to the previous quarter. Its revenue from operations rose 77% YoY (or 8.6% QoQ) to Rs 23,021.6 crore during the same period. ONGC’s net crude realisation (price after the deduction of subsidies) rose 13% QoQ to $65.59 in Q1.

Read more here.

VLCC Health Care files DRHP to raise funds via IPO

VLCC Health Care Ltd has filed a Draft Red Herring Prospectus (DRHP) with market regulator SEBI to raise funds through an initial public offering (IPO). It is one of the largest players in the wellness and beauty services industry in India. The IPO comprises a fresh issue of equity shares worth Rs 300 crore and an offer for sale (OFS) of up to 89.2 lakh shares by promoters and shareholders. The proceeds from the IPO will be used to set up VLCC Wellness clinics in India and Gulf Cooperation Council (GCC) region. 

Read more here.

Minda Industries Q1 Results: Net profit at Rs 15.4 crore

Minda Industries Ltd reported a net profit of Rs 15.42 crore for the quarter ended June (Q1 FY22). It had reported a net loss of Rs 134.5 crore in the corresponding quarter last year (Q1 FY21). The company’s revenue from operations jumped 242.5 YoY to Rs 1,602.55 crore in Q1 FY22. Minda Industries is a leading manufacturer and supplier of automotive solutions to original equipment manufacturers (OEMs).

India’s exports rise 49.85% to $35.43 billion in July; trade deficit at $10.97 billion 

India’s total exports increased by 49.85% YoY to $35.43 billion (~Rs 2.62 lakh crore) in July 2021. This can be attributed to the recovery in global markets and strong demand. There was healthy growth in the petroleum, engineering, and gems & jewelry segments in July. Imports rose 63% YoY to $46.4 billion (~Rs 3.44 lakh crore) during the same month. The trade deficit stood at (-) $10.97 billion in July 2021, compared to 4.83 billion in July 2020. India’s oil exports jumped 97.45% YoY to $12.89 billion in July 2021. 

Read more here.

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Editorial

ONGC Limited: The Indian Energy Giant

ongc

Since its inception around 65 years ago, ONGC has played a critical role in transforming India’s upstream (oil & gas exploration) sector. With operations spread across the country and the globe, they ensure a steady supply of raw crude oil and gas. The PSU has recently ventured into the production of renewable sources of energy as well. Many are not aware of how big the company really is. In this article, learn more about ONGC and its recent financial performance.

Company Profile – ONGC

Oil and Natural Gas Corporation (ONGC) Limited is the largest producer of crude oil and natural gas in India. It was established in 1956 under the leadership of Pandit Jawaharlal Nehru. The Government of India (GoI) holds a majority stake (60.4%) in the company. ONGC comes under the administrative control of the Ministry of Petroleum & Natural Gas. It was conferred the ‘Maharatna’ status in 2010.

They primarily operate through two segments— Exploration & Production (E&P) and Refining & Marketing (R&M). The company has established itself as one of the leading oil drilling companies in our country. It operates around 104 oil drilling rigs and 74 workover (portable) rigs. ONGC contributes nearly 71% to India’s total production of crude oil. The crude extracted by the company is used as raw material by downstream companies such as Indian Oil Corp. (IOCL), BPCL, and HPCL. Moreover, ONGC contributes ~63% to the total gas production in our country.

The state-owned company extensively produces liquefied petroleum gas (LPG), ethane/propane, superior kerosene oil, aviation turbine fuel, and high-speed diesel. 

Interestingly, ONGC is also one of the top wind energy companies in India. It owns and operates a 51 megawatt (MW) wind power project in Surajbari, Gujarat, and a 102 MW wind power project in Rajasthan. They also generate solar power through a total installed capacity of 23 MW. The ONGC Energy Centre (OEC) is developing innovative methods to generate hydrogen as well.

Financial Performance

(Consolidated Figures)

From the graph shown above, it is clear that ONGC’s revenues have been declining over the past two years. Profit figures are also highly inconsistent. A primary reason for this can be attributed to an increase in overall expenses. Amidst the Covid-19 pandemic, the company had faced a sharp rise in statutory levies (royalty and cess), exploration costs, and tax expenses. At the same time, ONGC could not efficiently use its budgeted capital expenditure (capex) for FY21. This was because the implementation of several key projects (including oil & gas exploration) got delayed due to strict lockdowns globally. The sharp fall in crude oil prices also affected ONGC’s margins.

ONGC’s Q4 and FY21 Results

ONGC posted a consolidated net profit of Rs 9,404.16 crore for the January-March quarter of 2021 (Q4 FY21). This is compared to a net loss of Rs 6,338.12 crore in the corresponding quarter last year (Q4 FY20)— the company’s first-ever quarterly loss. However, net profit had jumped 273.5% when compared to the previous quarter (Q3 FY21). The total income in Q4 FY21 increased by 9.45% YoY (or 15.42% QoQ) to Rs 1,18,206.16 crore. 

The consolidated net profit for the entire financial year 2020-21 (FY21) increased by 49% YoY to Rs 16,248.69 crore. Total income fell by 8.5% YoY to Rs 3,71,833.46 crore in FY21. The Earnings Per Share (EPS) increased from Rs 8.67 in FY20 to Rs 12.92 per share in FY21.

Over the past five years, ONGC’s total revenue has grown at a CAGR of 19.44%, whereas the industry average stood at 18.73%. It has obtained a market share of 96.44% in India’s Exploration & Production (E&P) sector. The company’s Return on Equity (ROE) of 7.61% is very low when compared to its peers. Currently, the Return on Capital Employed (ROCE) is also low at 10.21%. It means that for every Rs 100 worth of capital employed, ONGC receives just Rs 10.21 on it.

Recent Announcements

  • ONGC has declared a total of 10 discoveries (3 in onland, 7 in offshore) during the financial year 2020-21 (FY21) in its operating oil & gas acreages. Out of these, six are new prospects (1 in onland, 5 in offshore) and four are pools of existing finds (2 in onland, 2 in offshore).
  • With the monetisation of ONGC’s Ashoknagar-1 discovery (oilfield), the Bengal basin has become the 8th sedimentary basin of India from which hydrocarbon has commercially been produced. Thus, the Bengal basin has been upgraded to a Category-I basin as per the new three-tier category classification of sedimentary basins in India.
  • An official of the state-owned firm said they expect gas prices to increase by around 50-60% in the second half of FY22, which will help boost margins. 

The Way Ahead

In 2019, the company had announced the adoption of a comprehensive roadmap for the future, termed as ‘ONGC Energy Strategy 2040’. They have set a target to double oil and gas output from its domestic and overseas fields. ONGC will work towards achieving a three-fold increase in revenue, distributed across the exploration & production (E&P), refining, and other businesses. The company has also targeted a four-fold increase in profit after tax (PAT), with a 10% contribution from the non-oil and gas business by 2040. They have prioritised the expansion of their oil refining capacity from 70 million tonnes per annum (MTPA) to 90-100 MTPA. 

As mentioned earlier, ONGC is also focusing its efforts on developing and producing cleaner sources of energy (wind, solar, hydrogen, etc). The company plans to make large investments in these renewable energy sources with an aim to create a 5-10 gigawatt (GW) portfolio. Let us look forward to seeing how they implement these strategic plans. 

ONGC’s shares have gained by ~46% over the past year. Most people invest in this public sector undertaking (PSU) for dividends. Fortunately, the company has been maintaining a healthy dividend payout of 38.12%. 

Have you invested in the company? Let us know your views on ONGC in the comments section of the marketfeed app.

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Market News Top 10 News

PharmEasy to Acquire 66% Stake in Thyrocare – Top Indian Market News

PharmEasy to acquire 66% stake in Thyrocare for Rs 4,546 crore

PharmEasy, an Indian healthcare startup, will acquire a 66.1% stake in diagnostics solutions provider Thyrocare Technologies Ltd for Rs 4,546 crore. API Holdings Ltd, the parent company of PharmEasy, has signed definitive agreements to acquire a 66.1% stake at Rs 1,300 per share from Thyrocare’s promoters. This will be the first-ever acquisition of a listed company by an Indian startup unicorn. The transaction is subject to regulatory and other applicable customary approvals.

Read more here.

ONGC Q4 Results: Net profit at Rs 6,734 crore

Oil and Natural Gas Corporation (ONGC) reported a net profit of Rs 6,734 crore for the quarter ended March 2021 (Q4 FY21). It had posted a net loss of Rs 3,214 crore in the corresponding quarter last year (Q4 FY20). The company’s gross revenue declined by 1% YoY to Rs 21,189 crore in Q4 FY21. Net profit for the financial year ended March 31, 2021 (FY21) declined by 16% YoY to Rs 11,246 crore. ONGC’s board has recommended a final dividend of Rs 1.85 per share.

Read more here.

Shilpa Medicare gets DRDO approval to manufacture 2DG Covid-19 drug

Shilpa Medicare Ltd has received in-principle approval from the Defence Research & Development Organisation (DRDO) to manufacture and sell 2-Deoxy-D-Glucose (2DG). The drug has been given emergency approval by the Drugs Controller General of India (DCGI) for Covid-19 patients in the country. Shilpa Medicare is the second company (after Dr. Reddy’s Labs) to have entered into a similar arrangement with DRDO.

Read more here.

IGL Q4 Results: Net profit rises 31% YoY to Rs 332 crore

Indraprastha Gas Ltd (IGL) reported a 31% YoY increase in standalone net profit to Rs 332.08 crore for the quarter ended March (Q4). Its revenue stood at Rs 1,700.52 crore in Q4 FY21, compared to Rs 1,697 crore in the corresponding quarter last year (Q4 FY20). IGL’s overall sales volumes grew 8% YoY to 614 million metric standard cubic meters (mmscm) in Q4 FY21. Net profit for the financial year ended March 31, 2021 (FY21) declined by 11% YoY to Rs 1,005 crore. IGL’s board has recommended a dividend of Rs 3.6 per share.

Read more here.

Tata Consumer to integrate distribution network, supply chain to drive efficiency

Tata Consumer Products Ltd (TCPL) is integrating its distribution network and supply chain to drive efficiency. The company will undertake end-to-end digitalisation of channel partners by leveraging its wide product portfolio. TCPL will launch Eight O’Clock (an American gourmet coffee brand) in its direct-to-consumer (DTC) model next week. The FMCG firm is also using data analytics for strategic planning and is working to make its products available across the globe.

Read more here.

JSW Energy Q4 Results: Net profit falls 1.7% YoY to Rs 106 crore 

JSW Energy Limited reported a 1.7% YoY decline in consolidated net profit to Rs 106.60 crore for the quarter ended March (Q4). Net profit has fallen by 13.71% when compared to the previous quarter. Its total income declined by 12.64% YoY (or 2.72% QoQ) to Rs 1,614.09 crore during the same period. Net profit for the financial year ended March 31, 2021 (FY21) fell 27.68% YoY to Rs 795.48 crore. JSW Energy’s current portfolio consists of 30% renewable energy capacity. This is expected to increases to 70% by FY25.

Read more here.

MOIL signs pact with Madhya Pradesh govt, MPSMCL to explore manganese ore reserves

MOIL has signed a Memorandum of Understanding (MoU) with the Madhya Pradesh government and the Madhya Pradesh State Mining Corp. Ltd (MPSMCL) to explore the possibilities of manganese ore mining in the state. The company has carried out detailed remote sensing with the help of the National Remote Sensing Centre (NRSC) ISRO, Hyderabad, to identify manganese-bearing areas. MOIL has also carried out extensive fieldwork, followed by geological mapping and sampling in four districts.

Read more here.

Godfrey Phillips Q4 Results: Net profit jumps 146% YoY to Rs 95 crore

Godfrey Phillips India Ltd reported a 146.19 YoY jump in consolidated net profit to Rs 95.25 crore for the quarter ended March (Q4). Net profit has declined by 22.4% when compared to the previous quarter. Its revenue from operations rose 18% YoY to Rs 694.70 crore during the same period. Net profit for the financial year 2020-21 (FY21) fell 2.17% YoY to Rs 376.52 crore. The tobacco manufacturing company’s board has approved a dividend of Rs 24 per share.

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Thermax secures Rs 250 crore order for a greenfield refinery in Latin America

Thermax Babcock & Wilcox Energy Solutions, a wholly-owned subsidiary of Thermax Ltd, has secured an order for a claus package and an oxidiser package in the suphur recovery unit for a greenfield refinery in Latin America. The customer, a globally renowned refining company, is setting up a new 340 million barrels per day (MBPD) crude oil refining capacity to increase the production of high-value distillates. This export order is worth Rs 250 crore. Thermax is a leading energy and environment solutions provider headquartered in Pune.

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India Pesticides IPO subscribed 29.04 times on final day of bidding

The Rs 800 crore initial public offering (IPO) of India Pesticides Limited was subscribed 29.04 times on the final day of bidding. Investors have put in bids for 56.07 crore equity shares against the offer size of 1.93 crore shares. The portion reserved for retail investors was subscribed 11.3 times. The portion set aside for Non-Institutional Investors (NIIs) was subscribed 51.88 times, and that of Qualified Institutional Buyers (QIBs) 42.95 times. 

To learn more about the IPO, click here.

Purvankara Q4 Results: Net profit at Rs 8.75 crore

Purvankara Ltd reported a consolidated net profit of Rs 8.75 crore for the quarter ended March 2021 (Q4 FY21). It had posted a net profit of Rs 0.35 crore in the corresponding quarter last year (Q4 FY20). The real estate developer’s total income declined by 12.9% YoY to Rs 339.39 crore in Q4 FY21. For the financial year ended March 31, 2021 (FY21), Purvankara posted a net loss of Rs 4.67 crore. This is compared to a net profit of Rs 88.35 crore in FY20.

Read more here.

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NSE, ONGC Buys Stake in IGX From Indian Energy Exchange – Top Indian Market News

NSE, ONGC buys stake in IGX from Indian Energy Exchange

Indian Energy Exchange (IEX) has divested 26% of its equity holding in Indian Gas Exchange (IGX) to the National Stock Exchange of India. NSE will purchase 1.92 crore equity shares of IGX from IEX for Rs 19.20 crore. IEX has also sold 5% of its equity holding in IGX to the Oil and Natural Gas Corporation (ONGC) for Rs 3.69 crore. “Having NSE and ONGC as partners is a natural choice in the endavour to deepen India’s gas markets,” said S N Goel, Chairman & MD of IEX.

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Easy Trip Planners IPO subscribed 159 times on final day of bidding

The Rs 510-crore initial public offering (IPO) of Easy Trip Planners was subscribed 159.30 times on the final day of bidding. The issue received bids for 240.27 crore equity shares against an offer size of 1.5 crore shares. The portion reserved for retail investors was subscribed 70.40 times. The portion set aside for non-institutional investors (NIIs) saw a subscription of 382.21 times and that of qualified institutional buyers (QIBs) 77.53 times.

Passenger vehicle sales grow 18% in February: SIAM

According to data released by the Society of Indian Automobile Manufacturers (SIAM), passenger vehicle sales increased by 17.92% year-on-year (YoY) to 2.81 lakh units in February. The utility vehicles (UVs) segment saw a growth of more than 45% YoY. Sales of two-wheelers rose 10.20% YoY to 14.26 lakh units last month. The data also shows that sales of three-wheelers declined by 34% YoY to 27,331 units in February.

Read more here.

Vodafone Idea partners with Disney+ Hotstar to provide one year of free content to users

Vodafone Idea (Vi) has partnered with Disney+ Hotstar to offer one year of VIP membership to its customers. Vi prepaid users will get three new unlimited recharge plans including one data-only plan with Disney+ Hotstar VIP subscription. The telecom company’s postpaid users can get access to the streaming service on plans starting at Rs 499. The offer comes just in time for the upcoming IPL cricket season, which begins on April 9. 

Read more here.

Hitachi ABB Power Grids secures orders worth Rs 160 crore to supply transformers to Indian Railways

Hitachi ABB Power Grids in India has secured orders worth Rs 160 crore from the Government of India’s electric locomotive manufacturer, Chittaranjan Locomotive Works (CLW), and the Central Organization for Rail Electrification (CORE) to power electric freight locomotives for the Indian Railways. The company will deliver traction transformers to CLW for one of Indian Railways’ most successful classes of locomotives- the WAG 9. The firm will also supply trackside transformers to CORE.

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Magma Fincorp’s shareholders approve plans to raise Rs 3,456 crore by issuing shares to Rising Sun Holdings 

Magma Fincorp Limited announced that its shareholders have approved the company’s plans to raise Rs 3,456 crore by issuing preference shares to Adar Poonawalla-controlled Rising Sun Holding Pvt Ltd (RSHPL) and two members from the promoter group. Around 49.37 crore preference shares will be issued at Rs 70 per share to RSHPL and the two promoters. After the transaction, RSHPL will hold a controlling stake of 60% in Magma Fincorp.

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Sun Pharma’s subsidiary acquires 12% stake in Australia-based WRS Bioproducts

The Australian subsidiary of Sun Pharmaceutical Industries Ltd has acquired 4.28 lakh shares (or 12% fully diluted equity stake) of WRS Bioproducts Pty Limited. The total value of the acquisition was AUD 2 million (~Rs 11.24 crore). WRS Bioproducts is engaged in developing novel technologies to produce and commercialise supplements and nutraceutical ingredients from diverse algae species in Australia.

Man Infra’s subsidiary secures order worth Rs 84 crore

Man Vastucon, a wholly-owned subsidiary of Man Infraconstruction Ltd, has received an order worth Rs 84.32 crore from Mira Shaindar Municipal Corporation (MSMC). The scope of work consists of the construction of an auditorium situated off Western Express Highway, Mira Road East, Thane. The project will be completed and handed over to MSMC within a year.

Read more here. 

Dr Reddy’s gets 3 observations from USFDA for US-based API plant

Dr Reddy’s Laboratories said that the US Food & Drug Administration (USFDA) has issued a Form 483 with three observations after inspecting its active pharmaceutical ingredients (API) manufacturing plant in Middleburgh, New York. Form 483, which is issued to a firm at the end of an inspection, specifies any conditions that may be in violation of the Food Drug & Cosmetic Act or other regulations. Currently, Dr Reddy’s does not have any sales from this API plant.

Read more here.

Quick Heal Technologies’ board approves proposal for Rs 155 crore share buyback plan

The Board of Directors of Quick Heal Technologies has approved the proposal to buyback 63.26 lakh equity shares at Rs 245 per share. This represents 0.85% of the total paid-up equity share capital of the software company. The total buyback size will be Rs 155 crore. The board has also approved the de-registration and closure of the company’s wholly-owned subsidiary, Quick Heal Technologies Africa. This closure was part of the firm’s recently concluded business reorganisation exercise.

Board of Shriram EPC approves the issuance of preference shares worth Rs 350 crore to lenders

The Board of Directors of Shriram EPC, on Wednesday, discussed and cleared the issuance of non-convertible redeemable preference shares (NCRPS) worth Rs 350 crore to the lenders of the company against their loans and for other related activities. Shriram EPC is a construction company based in Chennai.

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Market News Top 10 News

Vodafone Idea’s Q3 Net Loss Narrows to Rs 4,532 crore – Top Indian Market News

Vodafone Idea Q3 Results: Net loss at Rs 4,532 crore

Vodafone Idea Ltd (Vi) reported a consolidated net loss of Rs 4,532.4 crore for the quarter ended December (Q3). It had posted a net loss of Rs 7,218.5 crore in the corresponding quarter last year. The company’s revenue grew 1% YoY to Rs 10,894 crore during the same period. Vi saw a one-time net gain of Rs 1,696.5 crore in Q3, which includes gains made on the sale of its stake in Indus Towers. The telecom operator’s average revenue per user (ARPU) improved to Rs 121, compared to Rs 119 in the previous quarter (Q2 FY21).

Read more here.

ONGC Q3 Results: Net profit falls 67% YoY to Rs 1,378 crore

Oil and Natural Gas Corporation (ONGC) reported a 67.4% YoY decline in net profit to Rs 1,378 crore for the quarter ended December (Q3). Its revenue fell 28% YoY to Rs 17,024 crore during the same period. ONGC’s crude oil production during the quarter declined 3.3% YoY, while gas output declined 6% YoY. The company’s board has declared an interim dividend of Rs 1.75 per share.

Read more here.

Power Grid to acquire 74% stake of Jaiprakash Power in JV

Power Grid Corporation said its board has approved a proposal to acquire 74% stake of the joint venture partner in Jaypee POWERGRID Ltd (JPL). JPL is a joint venture between Power Grid and Jaiprakash Power Ventures Ltd. The company said the acquisition would be completed within the current fiscal year.

Amara Raja Batteries Q3 Results: Net profit rises 18% YoY to Rs 194 crore

Amara Raja Batteries Ltd (ARBL) reported a 17.98% YoY jump in consolidated net profit to Rs 193.69 crore for the quarter ended December (Q3). Its revenue from operations rose 12.18% YoY to Rs 1,960.43 crore during the same period. The company has announced plans to set up a greenfield lead recycling unit with a capacity of 1 lakh tonnes. This would help ARBL to comply with recycling standards while adopting advanced technology in the most eco-friendly manner. ARBL’s board has approved an interim dividend of Rs 5 per share.

Read more here.

Ircon International Q3 Results: Net profit rises 35% YoY to Rs 103 crore

Ircon International Ltd reported a 35% YoY increase in net profit to Rs 103 crore for the quarter ended December (Q3). Its revenue from operations rose 29% YoY to Rs 1,244 crore during the same period. Ircon announced it has secured new orders worth around Rs 3,983 crore in the current financial year (Q4 FY21).

Godrej Industries to diversify into housing finance business

Godrej Industries Ltd announced that Godrej Housing Finance Ltd (GHFL) has recently obtained a license to operate as a Housing Finance Company. GHFL is owned by the Godrej Family through Anamudi Real Estates LLP. To pursue the opportunity in the housing finance business, the Board of Godrej Industries has approved the proposal of acquiring shares of GHFL from Anamudi. 

Read more here.

Prabhat Dairy Q3 Results: Net profit declines 14% YoY to Rs 8 crore

Prabhat Dairy reported a 14.17% YoY decline in net profit to Rs 8.78 crore for the quarter ended December (Q3). Its total revenue declined 53% YoY to Rs 102.89 crore during the same period. Prabhat Dairy is an integrated milk and dairy products company in Maharashtra, catering to institutional and retail customers.

IRFC Q3 Results: Net profit rises 15% YoY to Rs 1,046 crore

Indian Railway Finance Corporation (IRFC) reported a 15.4% YoY increase in net profit to Rs 1,046.74 crore for the quarter ended December (Q3). Its total revenue rose 8.01% YoY to Rs 3,932.46 crore during the same period. On February 12, IRFC listed its $750 million (~Rs 5,444 crore) medium-term note on India International Exchange’s (India INX) debt listing platform. The issue is part of the company’s $4-billion (~Rs 29,000 crore) global medium-term note programme.

Delta Corp Q3 Results: Net profit at Rs 1.25 crore

Delta Corp Ltd reported a net profit of Rs 1.25 crore for the quarter ended December (Q3). It had posted a net profit of 55.07 crore in the corresponding quarter last year. The gaming and hospitality company’s revenue declined 39.58% YoY to Rs 128.93 crore in Q3 FY21.

Sadbhav Engineering Q3 Results: Net profit loss at Rs 24.32 crore

Sadbhav Engineering Ltd reported a consolidated net loss of Rs 24.32 crore in the quarter ended December (Q3). It had posted a net loss of Rs 69.79 crore in the corresponding quarter last year. The company’s total revenue rose 2.12% YoY to Rs 695.76 crore in Q3 FY21. Sadbhav Engineering is a civil engineering construction company based in Gujarat.

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Editorial

What is a Navratna PSU? Elgibility and Benefits

Since independence, India has been an agrarian country. Till the late 1990s, it failed to develop its industrial base and give special focus to infrastructure facilities. The government soon realised that there is a need to make public investments to boost the economy. 

According to ownership, the government companies are commonly classified into the followinng categories:

  • State Level Public Enterprises (SLPE) – Companies where the direct holding of the State Government or other SLPEs is 51% or more.
  • Public Sector Banks (PSB) – Banks where the direct holding of the Central/State Government or other PSBs is 51% or more.
  • Central Public Sector Enterprises (CPSE) – Companies where the direct holding of the Government of India or other CPSEs is 51% or more.

The central government of India allots special status to public companies to enhance their reputation. There are 3 special statuses which are bestowed to these SLPEs/ PSBs/ CPSEs if they meet certain criteria.

  • The Maharatnas
  • The Navratnas
  • The Miniratnas (I and II)

Let us read all about Navratna companies today.

Eligibility Criteria for Navratna status

  1. A PSU (Public Sector Undertaking) should fall under the Miniratna category. Being a Miniratna company is not that hard. Any government company having made profits continuously for the last three years or earned a net profit of ₹30 crore or more in one of the three years qualifies to be Miniratna-I company. A Miniratna-II company needs to make profits for three years and have a positive net worth.
  2. It should have obtained a rating of ‘very good’ or ‘excellent’ rating in 3 of the last 5 years under the Memorandum of Understanding(MoU) system. This shows that the company is dependable.
  3. The company should have a composite score of 60 or above out of 100 in the following six selected parameters:
ParameterMaximum Weight
Earnings per share10
Profit before interest and taxes (PBIT) to turnover15
Net profit to net worth25
Profit before depreciation, interest and taxes (EBIDTA) to capital employed15
Manpower cost to total cost of production/services15
Inter-Sectoral performance20

List of Navratna companies

  1. Bharat Electronics Limited: BEL designs, develops and manufactures a range of advanced electronic products for the Indian Armed Forces. A few of the products are the weapon locating model, battlefield surveillance radar, electronic voting machines, tank electronics.
  2. Container Corporation of India Limited: CONCOR comes under the Indian Ministry of Railways. It has three activities in its core business which are a cargo carrier, a terminal operator, and a warehouse operator.
  3. Engineers India Limited: EIL comes under the Ministry of Petroleum and Natural Gas. It helps by providing engineering and related technical services for petroleum refineries. Over the years, it has expanded in business from hydrocarbon chain to metallurgy, infrastructure & power.
  4. Hindustan Aeronautics Limited: HAL comes under the Indian Ministry of Defence. It is involved in designing and assembling aircraft, jet engines, helicopters and their spare parts.
  5. Mahanagar Telephone Nigam Limited: MTNL is one of the most famous telecommunications service providers.
  6. National Aluminium Company Limited: NALCO comes under the Ministry of Mines. It has diversified its operations across mining, metal and power.
  7. NBCC (India) Limited: The company is focussed on three fields PMC (Project Management Consultancy), EPC (Engineering Procurement & Construction) & RE (Real Estate).
  8. NMDC Limited: NDMC comes under the Ministry of Steel. It is India’s largest iron ore producer & exporter and also explores copper, rock phosphate and limestone.
  9. NLC India Limited: It operates in the fossil fuel mining sector and thermal power generation. 
  10. Oil India Limited: OIL is present in the business of exploration, development and transportation of crude oil and natural gas. 
  11. Power Finance Corporation Limited: It is the largest NBFC (Non-Banking Financial Corporation) by net worth (all reserves) in India. It helps by providing financial assistance to power projects across the country.
  12. Rashtriya Ispat Nigam Limited: RINL comes under the Ministry of Steel. Its customers include different industrial users, retailers, specific project customers, etc.
  13. Rural Electrification Corporation Limited: REC was incorporated in 1969 and works under the Ministry of Power. It is a public infrastructure finance company which finance projects in the power sector.
  14. Shipping Corporation of India Limited: It came into existence with the amalgamation of Eastern Shipping Corporation and Western Shipping Corporation. Incorporated in 1961, today it is the largest Indian shipping Company.

Why Become a Navratna Company?

When a company achieves Navratna status, it gets enhanced financial and operational freedom and empowers it to invest up to Rs 1,000 crore or 15% of their net worth on a single project without seeking government approval. They will also have the freedom to enter joint ventures, form alliances and float subsidiaries abroad. So definitely it is a very coveted title, and the benefits may push more Public Sector Enterprises(PSEs) to perform better and make profits. Next day, we can learn about the next level which are Maharatna companies. Till then, have a great weekend!