Tag: Q3 Results

Categories
Market News Top 10 News

ICICI Bank’s Q3 Profit Rises 19% YoY to Rs 4,940 crore – Top Indian Market News

ICICI Bank Q3 Results: Net profit rises 19% YoY to Rs 4,940 crore

ICICI Bank Ltd reported a 19% YoY increase in net profit to Rs 4,939.6 crore for the quarter ended December (Q3). Net interest income (NII) rose 16% YoY to Rs 9,912 crore during the same period. [NII is the difference between the interest income a bank earns from its lending activities and the interest it pays to depositors] The bank’s gross non-performing asset (NPA) ratio stood at 3.38%, compared with 5.17% in Q2 FY21. ICICI Bank’s total provisions increased by 31% YoY to Rs 2,741.72 crore in Q3.

Read more here.

L&T Finance Holdings to open rights issue on Feb 1

L&T Finance Holdings announced that its Rs 2,998.61 crore rights issue will open on February 1, 2021. [A rights issue is an invitation to existing shareholders to purchase additional new shares in the company] The company will issue up to 46.13 crore equity shares for cash, at Rs 65 per equity share (including a premium of Rs 55 per share). The funds raised through the issue will be used to repay certain commercial papers issued by the company and for infusing funds into its subsidiary. 

Read more here.

Shree Cement Q3 Results: Net profit jumps 102% YoY to Rs 626 crore

Shree Cement Ltd reported a 102% YoY increase in net profit to Rs 626.2 crore for the quarter ended December (Q3). Its revenue rose 16.2% YoY to Rs 3,309.4 crore during the same period. The company has benefited from the pick-up in sales volumes and a strong pricing environment.

Read more here.

Happiest Minds acquires US-based Pimcore Global Services

Happiest Minds Technologies Ltd said it will acquire US-based Pimcore Global Services (PGS) for $8.25 million (~Rs 60 crore). PGS is a digital e-commerce and data management solutions company. Happiest Minds stated that the acquisition will further strengthen its offerings and leadership in the digital transformation space. The deal is subject to customary closing conditions and is expected to close in the quarter ended March 31, 2021 (Q4).

Read more here.

SAIL Q3 Results: Net profit at Rs 1,468 crore

Steel Authority of India Ltd (SAIL) reported a net profit of Rs 1,468.20 crore for the quarter ended December (Q3). It had posted a net loss of Rs 343.57 crore in the corresponding quarter last year. The company’s revenue rose 20% YoY to Rs 19,835 crore during the same period. Total sales including domestic and exports grew 1% YoY to 4.15 million tonnes. SAIL has declared an interim dividend of Rs 1 per share.

Read more here.

Power Grid secures two power transmission projects in Rajasthan

Power Grid Corporation of India has been declared as the successful bidder under tariff-based competitive bidding (TBCB) to establish two power transmission projects in Rajasthan. The projects include the establishment of a new 400/220kV Substation, 400kV D/C transmission lines, and associated Substation extension works in Rajasthan.

Read more here.

Unichem Labs Q3 Results: Net profit at Rs 23 crore

Unichem Laboratories Ltd reported a consolidated net profit of Rs 23.56 crore for the quarter ended December (Q3). The pharma company had posted a net loss of Rs 14.60 crore in the corresponding quarter last year. Its revenue rose 18.72% YoY to Rs 326.28 crore in Q3 FY21.

NSE adds 5 stocks in F&O segment from March series

The National Stock Exchange (NSE) has announced the inclusion of five securities in the futures and options (F&O) segment from the March series. Alkem Laboratories, AU Small Finance Bank, Deepak Nitrite, Indian Railway Catering & Tourism Corporation (IRCTC), and Nippon Life India Asset Management will come under the F&O segment, effective from February 26. These securities have been added to the F&O segment based on the stock selection criteria prescribed by market regulator SEBI.

Read more here.

Zen Technologies Q3 Results: Net profit declines 77% YoY to Rs 2.32 crore

Zen Technologies Ltd reported a 77.32% YoY decline in net profit to Rs 2.32 crore for the quarter ended December (Q3). Its revenue declined 49.77% YoY to Rs 16.57 crore during the same period. Hyderabad-based Zen Technologies designs, develops, and manufactures state-of-the-art combat training solutions for the training of defence and security forces worldwide.

Relaxo Footwears Q3 Results: Net profit jumps 67% YoY to Rs 90 crore

Relaxo Footwears Ltd reported a 67% YoY increase in net profit to Rs 90 crore for the quarter ended December (Q3). Its revenue rose 12% YoY to Rs 672 crore during the same period. Total expense during the quarter increased by 4.7% YoY to Rs 555.10 crore. Relaxo Footwears is engaged in the production of Hawaii slippers, lightweight slippers, canvas shoes, PVC footwear, etc.

Read more here.

Categories
Market News Top 10 News

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

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

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

Read more here.

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

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

Read more here. 

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

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

Read more here.

NALCO announces Rs 749 crore share buyback plan

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

Read more here.

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

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

Read more here.

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

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

Read more here.

India Cements Q3 Results: Net profit at Rs 67.90 crore

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

Read more here.

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

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

Read more here.

Canara Bank Q3 Results: Net profit at Rs 739 crore

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

Read more here.

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

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

Read more here.

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

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

Read more here.

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

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

Read more here. 

Stove Kraft IPO subscribed 2.93 times on Day 2

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

Read more here.

To know more about the IPO, click here.

Categories
Editorial

Why are Tyre Stocks Rallying?

Over the past few days, we have been witnessing a significant rally in the shares of major tyre companies in India. The share price of JK Tyre & Industries rose more than 23% in a week, while that of MRF touched an all-time high of Rs 96,400! CEAT shares jumped to the highest level in more than two years to Rs 1,535. Let us take a closer look at certain factors that have led to a surge in these stocks.

Anticipation of Robust Q3 Results

With the removal of Covid-19 related lockdowns in our country, the demand for automobiles increased rapidly. People preferred to own a two-wheeler or car for commuting, rather than using public transport. Automobile manufacturers started ramping up production during the festive season as well. There had been an impressive rise in the number of vehicle bookings during the October-December period. Thus, major tyre manufacturers started to receive an influx of orders from these automakers. 

It has been reported that tyres required for two-wheelers and farming equipment saw a strong demand recovery in Q3. Major players in this segment had increased their manufacturing capacity to meet the growing demand. These companies had also expanded their distribution networks across the country. The replacement and after-market segments showed a positive revival and growth. With these factors in mind, it was estimated that tyre manufacturers would post a healthy increase in their profits and revenues in Q3. 

Financial Performance in Q3

CEAT Ltd reported a 150% (year-on-year) YoY increase in consolidated net profit to Rs 132 crore for the quarter ended December (Q3). The tyre manufacturer’s revenue surged 26% YoY to Rs 2,221 crore during the same period. The company’s strong performance in Q3 was backed by an increase in overall vehicle production. Sales in the after-market segment had also made a strong comeback.

JK Tyre & Industries Ltd reported a multi-fold jump in consolidated net profit to Rs 230.46 crore. The company had posted a consolidated net profit of Rs 10.27 crore in the third quarter of FY20. Consolidated revenue from operations grew 21.7% YoY to Rs 2,769 crore in Q3 FY21. All nine plants of the company in India operated at close to 96% capacity utilisation. JK Tyre’s strong performance in Q3 was primarily driven by the increased demand for passenger, commercial vehicle, and farm tyres. 

The Q3 results of Apollo Tyres, MRF, and Balkrishna Industries are yet to be released. It has been reported that these particular companies are very likely to show impressive sales growth as well.

Government’s Ban on Import of Tyres

One of the major hurdles of the Indian tyre industry was the indiscriminate imports of tyres. China accounted for over 40% of Truck and Bus Radial (TBR) tyres and Passenger Car Radial (PCR) tyres shipments to India from overseas. In case of tractor tyres, Chinese import was three-fourths of the total imports.

In June 2020, the Indian Government imposed curbs on imports of new pneumatic tyres used in motor cars, busses, lorries, and motorcycles. These types of tyres were placed under the ‘restricted category’, which meant that an importer would now require a licence or permission from the Directorate General of Foreign Trade (DGFT) for imports. It has prevented countries such as China from dumping their excess output in our market. 

“The move has come as a sentiment booster for the industry that has been bearing the brunt of the slowdown in the auto sector and disruption caused by Covid-19 pandemic. Emboldened by the development, the tyre industry in India is looking at better than expected domestic production and increased exports from the country,” – K.M. Mammen, Chairman of the Automotive Tyre Manufacturers Association (ATMA).

These restrictions have proven to work in favour of domestic tyre manufacturers. Over the past few months, companies such as CEAT, MRF, and Apollo Tyres are receiving more orders from Indian automakers. For example, Royal Enfield has switched Italy-based Pirelli tyres with CEAT tyres for their Interceptor 650 range. Recently, French tyre major Michelin issued a circular to its Indian dealer partners confirming that it will not import and distribute passenger vehicle tyres in India. These international tyre companies are waiting for a further update on the import restrictions from the Indian Government.

The Way Ahead

Thus, the positive sentiments surrounding the tyre industry in India has led to a surge in stock prices of companies such as CEAT, Goodyear India, and MRF. Interestingly, Sachin Bansal (co-founder and former CEO of Flipkart) bought a 1.34% stake in JK Tyre, which reportedly led to a further rally in its stock over and above.

We could see a further uptrend in these shares, as certain tyre manufacturers are yet to report their Q3 results and because these stocks have broken multiyear highs just like what we saw with Tata Motors. In the coming weeks, let us look forward to seeing positive results from these companies.

The government supposedly brought in these restrictions to benefit domestic tyre manufacturers as they will get increased sales. But what did we see? As imported tyres started vanishing from the market, the domestic players immediately went out and increased their prices. So right now they are benefitting from increased margins (even though prices of rubber has gone up), along with the increasing sales from less competition. So in the long run who loses? Us, the customers. This is why restrictive trade policies never benefit consumers. At least stock market participants can make a bit of that money back.

Let us know in the comments down below if you were able to jump in on the rally!

Categories
Market News Top 10 News

UltraTech Cement’s Q3 Net Profit Rises 122% YoY – Top Indian Market News

UltraTech Cement Q3 Results: Net profit rises 122% YoY to Rs 1,584 crore

UltraTech Cement Ltd reported a 122.7% YoY increase in consolidated net profit to Rs 1,584 crore for the quarter ended December (Q3). The company had posted a net profit of Rs 711.17 crore during the corresponding period in FY20. Revenue from operations rose 17% YoY to Rs 12,254 crore in Q3 FY21. During the quarter, it had a volume growth of 14% to 22.82 million tonnes. UltraTech Cement’s performance in Q3 was driven by pent-up demand, supply restoration, and improving cost efficiencies.

Read more here. 

Tata Power Solar wins Rs 1,200 crore order to set up 320 MW project

Tata Power Solar Systems announced that it has bagged an order worth Rs 1,200 crore from state-run power giant NTPC Ltd for setting up a 320 MW ground-mounted solar project. The company is a wholly-owned subsidiary of Tata Power Limited. The scope of work includes the acquisition, engineering, procurement, installation, and commissioning of the grid-connected solar project on a turnkey basis. The commercial operation date for this project is set for May 2022.

Read more here.

Mahindra Lifespaces Q3 Results: Net loss at Rs 11.19 crore

Mahindra Lifespace Developers Ltd reported a consolidated net loss of Rs 11.19 crore for the quarter ended December (Q3). The company had posted a net profit of Rs 1.81 crore in the corresponding period in FY20. Total income declined 17% YoY to Rs 70.19 crore in Q3 FY21. The company stated that it has important project launches lined up and a few land acquisition deals expected to conclude in the current quarter (Q4).

Read more here.

Apollo Hospitals raises Rs 1,170 crore through allotment of shares to QIBs

Apollo Hospitals announced raising Rs 1,169.99 crore through allotment of shares to qualified institutional buyers (QIBs). Its Fund Raising Committee has approved the allotment of 45.59 lakh equity shares of the face value of Rs 5 each to eligible QIBs, at the issue price of Rs 2,511 per share. The issue opened on January 18 and closed on January 22.

Read more here.

Zydus Cadila gets USFDA approval for thyroid drug

Zydus Cadila has received final approval from the US Food & Drug Administration (USFDA) to market Liothyronine Sodium tablets. The tablets are indicated for the treatment of underactive thyroid. The drug will be manufactured at the group’s formulation manufacturing facility at the Special Economic Zone (SEZ), Ahmedabad.

Read more here.

DCB Bank Q3 Results: Net profit at Rs 96 crore

DCB Bank Ltd reported a net profit of Rs 96.21 crore for the quarter ended December (Q3). The bank had posted a net profit of Rs 96.7 crore in the same period last year. Net interest income (NII) increased by 4% YoY to Rs 335 crore in Q3 FY21. Provisions rose 150% YoY to Rs 147 crore during the same period.

Read more here.

Birla Corp Q3 Results: Net profit jumps 82% YoY to Rs 148 crore

Birla Corporation Ltd announced an 82.1% YoY increase in net profit to Rs 148.42 crore for the quarter ended December (Q3). Its revenue rose 5% YoY to Rs 1,823 crore during the same period. The company’s performance in Q3 was driven by growth in sales volume for the cement division, aggressive cost rationalisation, and higher sales of premium products. Birla Corp is on course to expand its production capacity to 25 million tonnes (MT) by 2025.

Read more here.

Supreme Industries Q3 Results: Net profit rises 153% YoY to Rs 312 crore

Supreme Industries Ltd reported a 153.08% YoY increase in net profit to Rs 312.28 crore for the quarter ended December (Q3). Revenue rose 34.26% YoY to Rs 1,843.80 crore during the same period. The company has announced plans to invest around Rs 400 crore to support construction activities at seven production sites. Supreme Industries is an Indian plastics company, based in Mumbai.

Petrol price touches record high of Rs 85.70 in Delhi; diesel at Rs 75.88

Petrol and diesel prices on Saturday touched new all-time highs after rates were increased for the fourth time this week. This took the petrol price in Delhi to Rs 85.70 per litre and diesel price to Rs 75.88 per litre. All prices have gone up by Re 1 per litre this week. Earlier this week, Oil Minister Dharmendra Pradhan blamed the Saudi oil output cut for the surge in oil prices but remained non-committal on tax cuts.

Read more here.

Polycab Q3 Results: Net profit rises 19% YoY to Rs 263 crore

Polycab India Ltd reported a 19.07% YoY increase in net profit to Rs 263.62 crore for the quarter ended December (Q3). Its revenue rose 11.63% YoY to Rs 2,798.83 crore during the same period. The company saw volume growth across its two product segments- wires & cables and fast-moving electrical goods (FMEG).

Categories
Market News Top 10 News

Reliance Industries’ Net Profit Rises 12% YoY to Rs 13,101 crore – Top Indian Market News

Reliance Industries Q3 Results: Net profit rises 12% YoY to Rs 13,101 crore

Reliance Industries Ltd (RIL) reported a 12.5% YoY increase in consolidated net profit to Rs 13,101 crore for the quarter ended December (Q3). The company had posted a net profit of Rs 11,640 crore during the corresponding period in FY20. RIL’s consolidated revenue declined 21% YoY to Rs 1.23 lakh crore in Q3 FY21. The weak topline performance of the company was attributed to the continued struggles of the refining business. The revenues of the refining and petrochemical business, which contribute nearly two-thirds to RIL’s topline revenues, fell to Rs 83,838 crore in Q3.

Reliance Jio Infocomm Ltd reported a 15.5% quarter-on-quarter (QoQ) increase in consolidated net profit to Rs 3,489 crore for the quarter ended December (Q3). Revenue from operations increased 5.3% QoQ to Rs 19,475 crore. The telecom company witnessed a net addition of 52 lakh customers during the same period. The average revenue per user (ARPU) came at Rs 151 per subscriber per month.

Read more here.

Grasim to enter paints business with Rs 5,000 crore investment

Aditya Birla Group’s flagship company, Grasim Industries Ltd, announced its plans to enter the paints business with an initial investment of Rs 5,000 crore over the next 3 years. Kumar Mangalam Birla, Chairman of Aditya Birla Group, stated that Grasim’s entry into the paints segment will add size, scale, and diversity to its existing portfolio of established standalone businesses. Grasim will offer a wide choice to Indian consumers, as it plans to introduce the latest range of paint products in line with global mega-trends.

Read more here.

Yes Bank Q3 Results: Net profit rises to Rs 151 crore

Yes Bank Ltd reported a net profit of Rs 150.7 crore for the quarter ended December (Q3). The lender had posted a net loss of Rs 18,560 crore in the corresponding period in FY20. Net interest income (NII) jumped more than two-fold YoY to Rs 2,560.4 crore. The bank’s gross non-performing asset (NPA) ratio stood at 15.36% compared with 16.9% in the July-September quarter (Q2 FY21). 

Yes Bank’s board has voted in favour of raising funds worth Rs 10,000 crore via qualified institutional placement (QIP), non-convertible debentures (NCDs), etc.

Read more here.

Adani Total Gas, Torrent Gas acquires 5% stake each in Indian Gas Exchange

Adani Total Gas and Torrent Gas have acquired a 5% stake each in the Indian Gas Exchange (IGX). Both companies have spent Rs 3.69 crore each for acquiring the stake.  IGX is a wholly-owned subsidiary of the Indian Energy Exchange (IEX) and is the first authorised gas exchange in the country. It has 16 members and more than 500 registered clients, along with 3 physical hubs across Gujarat and Andhra Pradesh.

Read more here.

JSW Steel Q3 Results: Net profit jumps 13-fold to Rs 2,681 crore

JSW Steel Ltd reported a 12.70 times (or 1,170%) YoY jump in consolidated net profit to Rs 2,681 crore for the quarter ended December (Q3). The company had posted a net profit of Rs 211 crore in the corresponding period in FY20. Revenue from operations rose 21.1% YoY to Rs 21,859 crore in Q3 FY21. Its average capacity utilisation improved to 91%, compared to 86% in the September quarter (Q2 FY21). JSW Steel’s performance in Q3 was driven by robust operating income amid a strong demand environment.

Read more here.

NTPC declares 150 MW unit of Kameng Hydro-Electric Project commercially operational

NTPC Limited announced that the 150 megawatt (MW) unit of Kameng Hydro-Electric Project of its subsidiary, North Eastern Electric Power Corporation, is commercially operational. With this, the commissioned and commercial capacity of the NTPC group has become 63,785 MW and 63,125 MW, respectively. [NTPC Ltd is a state-owned power generation company]

Read more here.

Indian Bank Q3 Results: Profit rises 108% YoY to Rs 514 crore

Indian Bank Ltd reported a 108% YoY increase in profit to Rs 514.28 crore for the quarter ended December (Q3). The bank’s net interest income (NII) jumped 120% YoY to Rs 4,313.3 crore during the same period. Gross non-performing assets (NPAs) as a percentage of assets rose to 9.04% in Q3. Indian Bank’s board has approved a proposal to raise Rs 4,000 crore through qualified institutional placements (QIP), follow-on public offer (FPO), or rights issue.

Read more here.

Om Metals Infra receives LoA for Shahpurkandi power house project

Om Metals Infraprojects Ltd has received a letter of award (LoA) from the Water Resources Department, Govt. of Punjab, for project works of Shahpurkandi power-house project. The estimated value of the contract is Rs 621 crore. The company will construct two power houses as part of the Hydel Channel of Shahpurkandi Dam Project via an engineering, procurement, and construction (EPC) mode. 

Read more here.

SBI Life Q3 Results: Profit falls 40% YoY to Rs 232 crore

SBI Life Insurance Ltd reported a 40.2% YoY decline in profit to Rs 232.85 crore for the quarter ended December (Q3). Net premium income rose to Rs 13,766.49 crore in Q3 FY21, as compared to Rs 11,694.51 crore in Q3 FY20. The company has kept an additional reserve of Rs 70.38 crore for Covid-19 pandemic-related liabilities.

Read more here.

Alembic Pharma gets USFDA approval for orthostatic hypotension tablets

Alembic Pharmaceuticals Ltd has received approval from the US Food & Drug Administration (USFDA) for its Abbreviated New Drug Application (ANDA)- Midodrine Hydrochloride Tablets USP. The tablets are indicated for the treatment of symptomatic orthostatic hypotension (OH). OH refers to a sudden drop in blood pressure when you stand from a seated or prone (lying down) position. According to IQVIA data, the tablets had an estimated market size of $60 million (~Rs 437 crore) for the twelve months ended September 2020.

Read more here.

Indigo Paints IPO subscribed over 117 times on final day

The initial public offering (IPO) of Indigo Paints was subscribed 117.02 times on the final day of the bidding process. The issue received bids for 64.57 crore shares against the issue size of 55.18 lakh shares. The reserved portion for retail investors witnessed a subscription of 15.93 times, and that of employees 2.49 times. The portion set aside for qualified institutional buyers was subscribed 189.6 times, and that of non-institutional investors 263 times.

Read more here.

Categories
Market News Top 10 News

SEBI Slaps Rs 1 crore Fine On HDFC Bank – Top Indian Market News

SEBI imposes Rs 1 crore penalty on HDFC Bank in BRH Wealth Kreators case

SEBI imposed a penalty of Rs 1 crore on HDFC Bank for invoking securities pledged by stockbroker BRH Wealth Kreators, in violation of the regulator’s interim directions. The bank has also been directed to transfer Rs 158.68 crore along with 7% interest per annum into an escrow account till the issue of settlement of clients’ securities is reconciled. [An escrow account is an account where funds are held in trust whilst two or more parties complete a transaction]. The fine shall be payable within a period of 45 days.

Read more here.

Bajaj Auto Q3 Results: Net profit rises 23% YoY to Rs 1,556 crore

Bajaj Auto Ltd reported a 23.4% YoY increase in net profit to Rs 1,556 crore for the quarter ended December (Q3). The two-wheeler company’s revenue rose 17% YoY to Rs 8,9098 crore during the same period. Sales volumes grew by 9% YoY, which was led by a 26% growth in motorcycle exports and an 8% increase in domestic volumes. Bajaj Auto’s overall share in the domestic motorcycle market was 18.6% in Q3 FY21, as compared to 17.5% in Q2 FY21.

Read more here.

Economic recovery in FY22 to be V (vaccine)-shaped: RBI

The Reserve Bank of India (RBI), in its ‘State of the Economy 2020’ report, has said the shape of India’s economic recovery in 2021-22 will be V-shaped — and the ‘V’ in it stands for “vaccine”. India has launched the biggest vaccination drive in the world, backed by the comparative advantage of having a strong vaccine manufacturing capacity. The report stated that the GDP is at a striking distance of attaining positive territory, and inflation is easing closer to the target.

Read more here.

Asian Paints Q3 Results: Net profit surges 62% YoY to Rs 1,265 crore

Asian Paints Ltd reported a 62% YoY increase in net profit to Rs 1,265.35 crore for the quarter ended December (Q3). Its revenue rose 25% YoY to Rs 6,788.47 crore during the same period. The company’s domestic decorative business delivered more than 30% volume growth, led by premium and luxury portfolios. Asian Paints’ profitability across businesses has been supported by a good sales mix and cost optimisation measures.

Read more here.

Jindal Steel & Power Q3 Results: Profit after tax at Rs 2,432 crore

Jindal Steel and Power Ltd reported a consolidated profit after tax (PAT) of Rs 2,432 crore for the quarter ended December (Q3). The company had posted a net loss of Rs 257 crore in Q3 FY20. Its consolidated revenue increased by 40% YoY to Rs 10,534 crore in Q3 FY21. During the same period, JSPL standalone reported its highest-ever steel production volumes at 1.93 million tonnes (up 20% YoY) and sales of 1.87 million tonnes (up 12% YoY).

Read more here.

Indigo Paints IPO subscribed nearly 7 times on Day 2

The initial public offering (IPO) of Indigo Paints was subscribed nearly 7 times on the second day of the bidding process. The issue has received bids for 3.84 crore shares, which is 6.97 times the issue size of 55.18 lakh shares. The reserved portion for retail investors was subscribed 9.6 times, and that of employees 1.8 times. The portion set aside for qualified institutional buyers has been subscribed 3.8 times, and that of non-institutional investors 5.4 times.

Read more here.

Bandhan Bank Q3 Results: Net profit falls 14% YoY to Rs 632 crore

Bandhan Bank reported a 13.5% YoY decline in net profit to Rs 632.6 crore for the quarter ended December (Q3). The bank’s total income rose 38.3% YoY to Rs 2,625 crore during the same period. Net interest income (NII) grew by 34.5% YoY to Rs 2,071.7 crore in Q3. [NII is the difference between the interest income a bank earns from its lending activities and the interest it pays to depositors]. Provisions and contingencies increased by 262% YoY to Rs 1,068.73 crore. The bank’s operational performance in Q3 was backed by higher growth, lower costs of funds, and strong retail deposits.

Read more here.

HDFC to sell 24.48% stake in Good Host for Rs 232.81 crore

HDFC Ltd has signed an agreement to sell its 24.48% stake in Good Host, a company engaged in the business of managing student housing facilities. The aggregate sale consideration for the sale of shares is Rs 232.81 crore. After the sale, Good Host will cease to be an associate of HDFC. [HDFC had acquired a 25.01% stake in Good Host in August 2018 for Rs 69.5 crore]

Read more here.

Fire breaks out at Serum Institute building in Pune; vaccine production not hit

A major fire broke out at the Pune-based Serum Institute of India (SII) on Thursday afternoon. The company is involved in producing Covid-19 vaccine Covishield – developed by Oxford University and AstraZeneca – which is being used for inoculation in the country’s mega vaccination drive. The mishap led to the death of five people, while the rescue team evacuated four. It took around three hours for firemen to bring the blaze under control. The fire is believed to have started because of an electrical fault. There would be no loss of Covishield production due to the fire, said SII CEO Adar Poonawalla.

Read more here.

Ashoka Buildcon secures 150 MW solar project worth Rs 502 crore

Ashoka Buildcon Ltd has received a Notification of Award (NoA) from NTPC Renewable Energy for a 150 MW solar photovoltaic (PV) plant in Rajasthan. The order includes the operation and maintenance of the solar PV plant for a period of 3 years from the date of successful trial run. The accepted bid value of the project is Rs 502.33 crore. 

Read more here.

Man Industries Q3 Results: Net profit rises 4.3% YoY to Rs 30 crore

Man Industries Ltd reported a 4.3% YoY increase in net profit to Rs 30.6 crore for the quarter ended December (Q3). Its revenue rose 4.1% YoY to Rs 554.5 crore during the same period. The company’s unexecuted order book at the end of the quarter stood at ~Rs 1,200 crore. Man Industries stated that opportunities in the oil and gas sector remain positive due to stabilizing oil demand and resumption of drilling activities globally.

JK Tyre Q3 Results: Net profit at Rs 230 crore

JK Tyre & Industries Ltd reported a multi-fold jump in consolidated net profit to Rs 230.46 crore. The company had posted a consolidated net profit of Rs 10.27 crore in the third quarter of FY20. Consolidated revenue from operations grew 21.7% YoY to Rs 2,769 crore in Q3 FY21. During the third quarter, all nine plants of the company in India operated at close to 96% capacity utilisation. JK Tyre’s strong performance in Q3 was largely driven by the increased demand for passenger, commercial vehicle, and farm tyres.

Read more here.

Categories
Market News Top 10 News

CCI Approves Flipkart-Aditya Birla Fashion Deal – Top Indian Market News

Flipkart-Aditya Birla Fashion deal gets approval from CCI

The Competition Commission of India (CCI) has approved the Rs 1,500 crore deal between Flipkart and Aditya Birla Fashion. Flipkart Investments Private Ltd will acquire a 7.8% minority stake in Aditya Birla Fashion and Retail Ltd (ABFRL). ABFRL plans to use the funds to strengthen its balance sheet and scale up its existing business. The company will also focus on increasing its presence in the emerging high-growth categories such as innerwear, athleisure, casual wear, and ethnic wear. 

Read more here.

Federal Bank Q3 Results: Net profit falls 8% YoY to Rs 404 crore

Federal Bank reported an 8.2% YoY decline in net profit to Rs 404.10 crore for the quarter ended December (Q3). The bank’s total income improved to Rs 3,941.36 crore in Q3 FY21, as compared to Rs 3,738.22 crore in Q3 FY20. Operationally, the bank saw strong growth in Q3, with net interest income (NII) seeing a 24% YoY growth to Rs 1,437 crore. Provisions for bad loans and other contingencies were increased by 161% YoY to Rs 421 crore in Q3.

Read more here.

Adani Green Energy commissions 150 MW solar plant in Kutch

Adani Solar Energy Kutchh One, a subsidiary of Adani Green Energy Ltd (AGEL), has commissioned a 150 MW solar plant in Kutch, Gujarat. This plant has a power purchase agreement (PPA) with Gujarat Urja Vikas Nigam Ltd (GUVNL) at Rs 2.67/kWh for a period of 25 years. With the commissioning of this plant, AGEL’s total operational renewable capacity grows to 3,125 MW. 

Read more here.

Hindustan Zinc Q3 Results: Net profit rises 36%YoY to Rs 2,200 crore

Hindustan Zinc Ltd (HZL) reported a 36% YoY increase in net profit to Rs 2,200 crore for the quarter ended December (Q3). Its revenue from operations rose 28% YoY to Rs 5,915 crore during the same period. The company reported its highest-ever ore production in the October-December quarter. HZL’s total mined metal production was up 4% YoY to 2.44 lakh tonnes. Integrated zinc production was up 2% YoY to 1.82 lakh tonnes.

Read more here.

Havells Q3 Results: Net profit rises 74% YoY to Rs 350 crore

Havells India Ltd reported a 74.52% YoY increase in consolidated net profit to Rs 350.14 crore for the quarter ended December (Q3). Its revenue from operations rose 39.67% to Rs 3,175.20 crore during the same period. The company saw increased demand in Q3 due to a pick-up in the overall construction and infrastructure activity. The Board of Directors of Havells India has declared an interim dividend of Rs 3 per share.

Read more here.

L&T construction arm secures order worth up to Rs 5,000 crore in Bangladesh

The power transmission and distribution business of Larsen & Toubro (L&T) has won a set of transmission line orders in Bangladesh. The orders are valued in the range of Rs 2,500-Rs 5,000 crore. The scope of these packages involves the design, supply, installation, testing, and commissioning of extra high voltage transmission lines on a turnkey basis.

Read more here.

Indigo Paints IPO subscribed 1.89 times on first day of bidding

The initial public offering (IPO) of Indigo Paints was subscribed 1.89 times on the first day of bidding. The public issue has received bids for 1.04 crore equity shares, against an offer size of 55.18 lakh shares. The portion reserved for retail investors was subscribed 3.3 times and that of non-institutional investors 1.09 times. The employee portion received 72% subscription and that of qualified institutional buyers (QIBs) 10%. 

Read more here.

To know more about the Indigo Paints IPO, click here.

Ramco Systems partners with HERE Technologies

Ramco Systems Ltd has partnered with HERE Technologies, a global leader in mapping and location platform services, to embed location intelligence in their Logistics ERP platform. The Ramco Logistics Software is an integrated and smart platform engineered to provide an end-to-end comprehensive business solution for third-party logistics, e-commerce logistics, etc. By embedding the geo-visualization layer provided by HERE, Ramco’s clients will benefit from the real-time view of their logistics operations using HERE Maps.

Read more here.

LT Foods acquires 30% stake in Netherlands-based Leev  

LT Foods Limited has acquired a 30% stake in Leev.nu, a Netherlands-based packaged foods company, through its subsidiary Nature Bio Foods BV (NBF BV). The transaction allows NBF BV an option to acquire a further 21% stake in Leev.nu at the end of five years. Leev.nu will start sourcing organic produce from NBF for its packed snacking brands. This acquisition gives Nature Bio Foods a direct reach to European consumers- through the mainstream distribution strength of Leev. 

Read more here.

Newgen Software Q3 Results: Net profit rises 48% YoY to Rs 35 crore

Newgen Software Technologies Ltd reported a 47.83% YoY increase in consolidated net profit to Rs 35.42 crore for the quarter ended December (Q3). Its revenue rose 0.3% YoY to Rs 185.51 crore during the same period. The company’s subscription-based revenues witnessed strong growth in Q3. Newgen Software is a Delhi-based business process management company.

Ola partners with Siemens to build EV manufacturing hub in Tamil Nadu

Ola has partnered with Siemens Ltd to build India’s most advanced electric vehicle (EV) manufacturing facility in Tamil Nadu. The popular ride-hailing platform had signed a Rs 2,400 crore deal with the Tamil Nadu government to set up its first factory in the state. Ola stated that the upcoming manufacturing hub will be the world’s largest scooter manufacturing facility. Ola will have access to Siemens’ integrated Digital Twin design and manufacturing solutions to digitalise and validate product and production ahead of actual operations.

Read more here.

Categories
Market News Top 10 News

Adani Group, AAI Sign Concession Agreement for 3 Airports – Top Indian Market News

Adani Group signs concession agreement with AAI for Jaipur, Guwahati, TVM airports

Adani Group has signed a concession agreement with the Airports Authority of India (AAI) for operating and maintaining Jaipur, Guwahati, and Thiruvananthapuram airports. The concession period is 50 years from the commercial operation date. The group will now get six months to take over the three airports. Adani Group had emerged as the highest bidder for six AAI airports, namely, Lucknow, Mangalore, Ahmedabad, Jaipur, Guwahati, and Thiruvananthapuram in February 2019.

Read more here. 

Alembic Pharma Q3 Results: Net profit rises 25% YoY to Rs 292 crore

Alembic Pharmaceuticals Ltd reported a 24.92% YoY increase in consolidated net profit to Rs 292.57 crore for the quarter ended December (Q3). The drug firm’s consolidated revenue rose 9% YoY to Rs 1314 crore during the same period. The company’s performance in Q3 was led by strong growth in its India formulation business, which grew 14% YoY to Rs 418 crore. 

Read more here.

Petrol price touches record high of Rs 85 in Delhi; diesel crosses Rs 75 mark

The price of petrol in Delhi rose by 25 paise on Tuesday, reaching an all-time high of Rs 85.20 per litre. The diesel price has jumped to Rs 75.38 per litre in the national capital. The rates have been hiked for the second consecutive day after remaining unchanged for three days. State-owned fuel retailers– Indian Oil Corporation Ltd (IOC), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL)– resumed daily price revision on January 6 after nearly a month-long hiatus. Since then, fuel rates have gone up by Rs 1.49 a litre on petrol and Rs 1.51 in the case of diesel.

Read more here.

CSB Bank Q3 Results: Net profit rises 88% YoY to Rs 53 crore

Kerala-based CSB Bank reported an 88% YoY increase in net profit to Rs 53 crore for the quarter ended December (Q3). The bank’s net interest income (NII) grew by 61.8% YoY during the same period. [NII is the difference between the interest income a bank earns from its lending activities and the interest it pays to depositors] CSB Bank’s overall provisions stood at Rs 111 crore in Q3. The bank has also announced a voluntary retirement scheme (VRS) for its select employees.

Read more here.

Bank of Maharashtra Q3 Results: Net profit rises 14% YoY to Rs 154 crore

Bank of Maharashtra reported a 14% YoY increase in net profit to Rs 154 crore for the quarter ended December (Q3). The Pune-based lender’s total income rose 3.42% YoY to Rs 3,577 crore. On the asset quality front, the bank recorded improvement with gross non-performing assets (NPAs) falling from 16.77% in Q3 of the previous financial year to 7.69% in Q3 FY21. The bank’s provisions fell by more than 80% YoY to Rs 498 crore in Q3.

Read more here.

IRFC IPO gets fully subscribed on Day 2

The initial public offering (IPO) of Indian Railway Finance Corporation (IRFC) was fully subscribed on the second day of bidding. The IPO has received bids for 152.6 crore equity shares, against an offer size of over 124.75 crore equity shares. The portion set aside for retail investors witnessed a subscription of 2.33 times and that of employees 27.40 times. The reserved portion of non-institutional investors was subscribed 24.3% and that of qualified institutional buyers 0.16%.

Read more here.

CEAT Q3 Results: Net profit rises 150% YoY to Rs 132 crore

Ceat Ltd reported a 150% YoY increase in consolidated net profit to Rs 132 crore for the quarter ended December (Q3). The tyre manufacturer’s revenue surged 26% YoY to Rs 2,221 crore during the same period. The company’s strong performance in Q3 was backed by an increase in overall vehicle production. Sales in the after-market segment had also made a strong comeback.

Read more here.

Tata Communications Q3 Results: Net profit jumps 5-fold to Rs 309 crore

Tata Communications’s net profit jumped 5 times (or 425%) YoY to Rs 309.41 crore for the quarter ended December (Q3). The company’s revenue stood at Rs 4,222.83 crore during the same period. The growth in profits at an operational level was largely due to a fall in network and transmission costs. The firm had also introduced cost-cutting measures in the current financial year. 

Hatsun Agro Q3 Results: Net profit rises 141% YoY to Rs 67 crore

Hatsun Agro Products Ltd reported a 141.2% YoY increase in net profit to Rs 67.3 crore for the quarter ended December (Q3). It had posted a net profit of Rs 28 crore in the corresponding period in FY20. The company’s revenue rose 4.1% YoY to Rs 1,394.6 crore in Q3 FY21. Chennai-based Hatsun Agro is a leading private sector dairy company.

Brigade Group launches 11-acre residential project at Hyderabad

Brigade Group announced the expansion of its footprint in Hyderabad by launching a residential project named ‘Brigade Citadel’. The 11-acre residential project is situated in Hyderabad’s Moti Nagar area. Brigade Citadel comprises of over 1,300 luxurious two and three-bedroom homes which are competitively priced, starting at Rs 75 lakh and Rs 99 lakh, respectively. 

Read more here.

Man Industries secures order worth Rs 250 crore

Pipe manufacturer Man Industries (India) Ltd announced that it has secured orders worth Rs 250 crore. The orders will be executed over the next 5 months. Man Industries is the flagship company of Man Group and is one of the largest players in longitudinal submerged arc welding (LSAW) pipes, spirally welded pipes, and coating systems.

Read more here.

Categories
Market News Top 10 News

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

Total acquires 20% stake in Adani Green Energy 

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

Read more here.

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

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

Read more here.

Three UK partners with TCS to accelerate 5G network rollout

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

Read more here.

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

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

Read more here.

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

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

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

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

Read more here.

Metropolis Healthcare acquires Hitech Diagnostic Centre

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

Read more here

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

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

Read more here.

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

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

Read more here.

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

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

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

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

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

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

Read more here.

Categories
Editorial

Tech Mahindra: A Stock for the Future?

Mahindra & Mahindra is one of the biggest groups in India. The IT arm of the group, Tech Mahindra is the 5th biggest IT company in India. It is one of the major sources from where the Mahindra group generate their revenue. marketfeed did an editorial on the future plans of Mahindra & Mahindra. You can find it here. Very soon, the Indian IT companies will be coming out with their Q3 results. Before that happens, let’s dig deeper and understand more about the company.

About Tech Mahindra

Tech Mahindra Limited was incorporated on October 24th 1986 as a joint venture between Mahindra and British Telecom. In 2009, Tech Mahindra purchased a major stake in the Satyam Computer Services after the famous Satyam scam. You can read about the Satyam scam here. Tech Mahindra changed Satyam’s name to Mahindra Satyam. To take the benefits of existing synergies, Mahindra Satyam was merged with Tech Mahindra in 2013.

Since then, Tech Mahindra has focussed on both organic and inorganic growth to march forward. They have acquired many companies over the years. Few to mention are CJS Solutions Group LLC, DynaCommerce BV, BORN Group and more. They have ventured into different industries and provided their solutions and tech-supports for companies to thrive.

In today’s era, every business in any industry requires a robust IT support to make a mark. Thus, it is no surprise to see Tech Mahindra offer services to a number of industries. The chart below shows the percentage of revenue they collect from each industry. The highest contributor to their top line comes from the communications sector.

Strengths of Tech Mahindra

The biggest strength for Tech Mahindra comes from the range of services they offer in several industries. They try to provide a holistic service experience to their customers with its huge portfolio of offerings. Every business is associated with some kind of risks. For example, imagine if Tech Mahindra was serving only hotels and tourist companies, their business would be nearly shut due to pandemic. But, as they serve a range of sectors, even a slowdown in one or two industries does not stop their business as they continue to serve others.

Tech Mahindra’s major chunk of the revenue comes from North America and Europe. In fact, almost 75% of the total revenue comes from these two continents. All in all, Tech Mahindra is present in more than 90 states across Europe, North America, Africa, Middle-East, Australia and Asia-Pacific. In India itself, they operate 38 offices across 14 and more states. This enormous geographical presence helps them to expand and establish as one of the most all-rounded tech companies.

An eye on financials of Tech Mahindra

Tech Mahindra is one of those very few companies which has always seen its top-line growing over the years. At the end of FY20, the company reported revenue from operations to be Rs 36,868 crore. This was up by 6% to what was recorded in FY19. The chart below shows the revenue from operation trend in the last five years. The CAGR for the same stands at 8.6%.

Source: Company’s annual report

The bottom line for the company saw a slight decline in FY20 for the first time in four years. Tech Mahindra recorded profits worth Rs 4,033 crore in FY20 against Rs 4,298 registered in FY19. This was mainly because of a slight increase in the cost of services and higher depreciation. Depreciation amount can go up and down each year so a company should not be judged on that basis alone. The CAGR for the net profit stands at 7.7% as shown by the chart below. Like most companies, Tech M is also net-debt free which allows it to invest more in upcoming technologies and better staff.

Source: Company’s annual report

Tech Mahindra has the highest dividend yield percentage in its sector. It holds a Dividend yield % of 1.61% which is higher than Infosys and TCS’ 1.47% and 1.15% respectively. Their 12-month Earnings Per Share(EPS) currently stands at Rs 41 which is at par with Infosys’ Rs 41 and HCL’s Rs 44. The other two tech giants, TCS and Wipro have an EPS of Rs 81 and Rs 16 respectively. This proves that Tech Mahindra has been making robust and stable money for each share as per the industry pattern.

Leveraging on Technology

Tech Mahindra’s Makers Lab develops solutions with the aid of new technologies so that their clients receive the most innovative experience. They utilize next-generation technologies like Artificial Intelligence (AI), Machine Learning (ML), Robotics, Internet of Things (IoT), Virtual Reality (VR) and 5G. All these techniques aid them to make solutions which are faster as well as easier for the clients to incorporate. All these are the technologies of the next generation, which makes this stock very exciting.

Currently, they have more than 50 technology platforms and solutions. By building intelligent and next-gen solutions, they help their clients to transform digitally. To solve complex business problems across different sectors, Tech Mahindra produced more than 20 Blockchain platforms in FY20 only. These blockchain platforms make the operations of their clients more secure and faster. They also launched the inaugural Blockchain accelerator program for the State Government of Telangana. This program aims to empower Blockchain start-ups across India.

Conclusion

The stock market fall of 21st December 2020 reminded us that we are still in an economic mess. And, this seems to continue until we find a robust fix to the virus. The market fell rapidly wiping out a huge amount of gains of many traders. A similar fall occurred in March when the news of lockdown just started to hit. Which sector was able to revive the fastest? The IT sector.

Tech Mahindra is currently trading at their all-time high. Even the recent bloodbath seems to be relatively comfortable for the IT stocks. Maybe, people will realise this faster and start investing more in the IT companies which are deemed to thrive in the ‘digital’ future. What are your views on Tech Mahindra? Let us know in the comment box. Until next time.

Categories
Editorial

US Tech Giants’ Results and AntiTrust Cases

Global tech giants Alphabet, Amazon, and Facebook reported their third quarter (Q3) results on October 29. Apple released its fourth-quarter results as well. During the current financial year, these companies have exceeded all expectations and have emerged as the world’s top-earning corporations. As we know, there has been a massive transformation and growth in online businesses amidst the Covid-19 pandemic. And, the recent results from these companies have completely crushed all street estimates. Let us find out how they performed during the July-September period.

Alphabet Quarterly Report

Google’s parent company, Alphabet Inc, had its first-ever revenue decline in Q2. However, the company has reported a very impressive 14% year-on-year (YoY) increase in revenue to $46.17 billion, for the quarter ended September (Q3). The company has completely beaten estimates that were made by financial analysts, and has returned to sales growth. A major portion of its revenue comes from advertising through its platforms such as YouTube. During the July-September period, revenue from YouTube ads has seen a 32% YoY jump to $5.04 billion. We can also see more businesses and individuals using Google’s Cloud Platform to perform their daily tasks efficiently. Hence, there has been a major increase in earnings from that segment as well. 

From what we can understand, the company has made a complete rebound in its revenue generation from Google Ads, as compared to the previous two quarters. Businesses around the world had seen a major decline in sales during lockdowns, and are now investing more in advertising through various Google platforms. The Cloud Platform has also helped to provide support to the work-from-home (WFH) model for corporations. Alphabet CEO Sundar Pichai has stated that Q3 has been ‘a strong quarter, consistent with the broader online environment’.

Last month, the US Justice Department filed one of the biggest antitrust lawsuits against Google. The IT company has been accused of partnering with other tech giants for ensuring that its rival companies do not rise to power. Google has also been criticized for using its search platform illegally to maintain its power.

Amazon Quarterly Report

Amazon.com, Inc is another company that completely beat estimates provided by analysts such as Yahoo Finance. The company has reported a 37% year-on-year (YoY) increase in revenue at $96.1 billion, for the quarter ended September (Q3). Even though lockdown restrictions were lifted in most countries, people preferred to get essential commodities through online methods. Third-party merchants also pay Amazon to advertise their products on its online shopping platform. The company has also created more than 4 lakh jobs this year, in order to support the surge in online sales.

The retail giant also receives a major part of its revenue from Amazon Web Services (AWS). It is one of the leading cloud technology platforms in the world, and accounts for a majority of Amazon’s total profits. There has been a 29% YoY increase in revenue from AWS to $11.6 billion, in the third quarter of the current financial year. On the other hand, Amazon’s video streaming service has been constantly registering a massive spike in viewership. Those movies which could not be released in theatres were also launched through Amazon Prime Video.

This year, Amazon has come under the scanner of regulatory authorities over a number of cases. It was found that the prices of essential items were increased in the US. Merchants who sell their products through Amazon have been under massive pressure. These sellers have not received any support from the retail giant. The company was also criticized for its treatment of warehouse workers. Interestingly, amidst all these accusations, it had been reported that Amazon employees were given very high bonuses during the lockdown period.

Apple Quarterly Report

The revenue for Apple Inc. was supported by international sales, which makes up 59% of its overall sales. The company has reported a 1% year-on-year (YoY) increase in revenue to $64.7 billion, for the fourth quarter ended September. The company’s financial year is calculated as the 52-week period that ends on the last Saturday of September. Apple’s iPhone sales were down by 20% YoY to $26.44 billion. Even though there had been strong iPad and Mac sales, it was not enough to make up for the decline of iPhones. 

With the launch of its new iPhone 12 and entry into 5G support, Apple is highly optimistic about a major boost in sales within the next few quarters. The company is also changing its focus to improve its streaming services, which include Apple TV+ and Apple Music.

Over the last few months, the company has been criticized for increasing its cut in Apple Store purchases to 30%, which is very high. Apple has also been accused of anti-competitive behaviour, and illegally maintaining power over its iPhone and iPad apps.

Facebook Quarterly Report

Facebook Inc. has reported a 22% year-on-year (YoY) increase in sales to $21.47 billion. Just like the previous three companies, the social media giant has also beaten street estimates. Facebook, which also owns Instagram and WhatsApp, stated that its daily active user base has increased by 12% YoY to 1.82 billion. With families and friends being separated due to Covid-related restrictions, there had been a spike in the use of these apps in the previous quarters. Interestingly, this growth in user base in the US and Canada has slowed down in Q3. Certain analysts have termed it as a ‘very rare decrease’, and was probably due to TikTok gaining all attention.

Facebook also receives a major part of this revenue from digital advertising, which has shown a great recovery as compared to previous quarters. Last week, the company also added shopping and pricing features to WhatsApp Business, in a move to help small enterprises to boost their sales. Facebook CEO Mark Zuckerberg has announced that the company would be focusing on services related to virtual and augmented reality. As we can see, there is a huge demand for these platforms in the global markets today. 

There had been a lot of criticism aimed at Facebook, especially regarding the handling of political content on its social media platforms. Also, there was an ad boycott movement by major companies to support #StopHateForProfit, over the last few months. However, these issues have not created an impact on the company’s revenue.

The Attack Against US Big Tech

Now, we shall keep these outstanding results aside for a moment. When people found out the methods through which the US Big Tech companies operate, many red flags had been raised. The non-ending competition amongst these companies has made them extremely greedy for more profits. Several institutions and individuals have protested against these ‘monopolistic acts’. Like many who watched ‘The Social Dilemma’ on Netflix, I too was pretty astonished by the various methods by which these companies used to attract more ‘customers’. The use of artificial intelligence (AI) to manipulate the behavior of individuals is evident by the high rise in the number of active users. 

The US legislators have studied the long-standing issues surrounding the matter. They have created a panel to make Amazon, Google, Facebook, and Apple more accountable for their actions. Here are some of the factors for which the companies are under the scanner of US lawmakers:

Source: Business Standard

The Antitrust Subcommittee of the Judiciary Committee in the US is currently looking into the matter. The CEOs of all four companies have already made several appearances before the panel. However, like most cases, these tech companies find loopholes and seem to simply not mind about its consequences. 

With these impressive Q3 results, we can see that no factors seem to affect the growth in their high revenues. At a point when all economic activities were hit, these companies used their position to make the best out of every new possibility. A fine of thousands of crores is okay for these companies when they are making ten thousand crores of profits. Do not forget that these companies are also heavily involved in India, and its development. Let us wait and watch how the Big Tech companies are planning to further dominate in their respective fields.