Business News at 05:30 pm on 14th May, 2024

Let’s begin… Bajaj Electricals recorded its fiscal fourth quarter profit at Rs 29.31 crore, down 43.5 per cent on-year in comparison to Rs 51.85 crore during the corresponding quarter of last year. It posted revenue from operations at Rs 1188.08 crore, down 8 per cent as against Rs 1291.97 crore during the fourth quarter of FY23. The company EBITDA stood at Rs 49 crore, down 48 per cent on-year. Bajaj Electricals also approved a proposal to obtain an enabling approval of shareholders at the company’s forthcoming AGM, to borrow funds by way of issuance of unsecured non-convertible debentures and/or commercial papers, upto an amount not exceeding Rs 500 crore to the eligible investors on a private placement basis, in one or more tranches. Moving on, Shares of Varun Beverages surged by over 5% in early trading on Tuesday as the FMCG company reported a 25% jump in the net profit in Q4FY24. The stock rallied by 5.53% to reach an intra-day high of Rs 1,559 per share on the NSE. Varun Beverages announced a 25% year-on-year (YoY) increase in its Profit After Tax (PAT) for the first quarter of the calendar year, rising to Rs 548 crore from Rs 438.6 crore in the corresponding quarter last year. According to a recent report by Motilal Oswal, Varun Beverages is anticipated to sustain its earnings growth momentum, supported by several key factors. These include increased penetration in newly acquired territories within India and Africa, as well as a growing acceptance of newly launched products. Next, KFC-operator Devyani International on Tuesday reported its fourth quarter earnings with a loss of Rs 7.47 crore as against a profit of Rs 60.72 crore during the same period last year. It posted revenue from operations at Rs 1047.08 crore, up 38.7 per cent in comparison to Rs 754.98 crore during the fourth quarter of FY23. The company EBITDA stood at Rs 172.3 crore, up 14.4 per cent on-year. While the total income reported during the quarter in review stood at Rs 1061.71 crore, total expenses incurred by the company was at Rs 1057.32 crore. In a regulatory filing, Devyani International said that the operating revenues for the financial year 2023-24 stood at Rs 3560 crore, growing at 18.6 per cent as against the previous financial year. Meanwhile, Increasing demand at the top-end for luxury and investment goods has upended the trade dynamics in the gems and jewellery, textiles and clothing sectors, according to a five-year analysis of India’s merchandise trade. These sectors are in focus because of their high employment generation potential. Between FY19 and FY24 exports of textiles and clothing fell 7.10% to $34.84 billion, while imports increased by 20.33% to $8.90 billion suggesting challenges in the global market competition and a steady local market growth for imported goods, according to an analysis by the founder of Global Trade Research Initiative (GTRI) Ajay Srivastava. Similarly, exports of diamonds, gold and products decreased 18.78% during that period to $32.85 billion while imports rose 21.25% to $78.47 billion, reflecting shifting dynamics in luxury and investment goods markets. Moving on, Portugal’s allure for affluent investors seeking its Golden Visa remains undimmed with demand set to increase by 20% in 2024, according to experts, even with real estate no longer available. The regulation changes have actually brought more security and oversight as well as a more varied investment pool of regulated funds approved for Golden Visa residency by investment to consider. As Spain ends its own Golden Visa residency by investment program, Portugal’s changes to their Golden Visa residency by investment has ensured it continues to drive inward investment in businesses and Portugal’s economy through investing in one of the approved regulated funds, start-ups and investment established businesses in Portugal. Elsewhere, In Wednesday’s trading, shares of the food delivery giant Zomato faced a notable setback, plummeting by 6% during the opening trade. This decline followed the company’s disclosure of its Q4 results earlier in the week. Zomato’s share price experienced a sharp drop of 6.27%, hitting an intraday low of Rs 182.10 on the NSE. Elara Capital, in its recent analysis of Zomato, reiterated its favorable stance on the company, citing its strong foothold in the food industry. The firm anticipates Zomato to sustain an adjusted EBITDA Compound Annual Growth Rate (CAGR) of 47% in the fiscal years 2024 to 2026. The brokerage firm revised its consolidated revenue estimates upward by 22% for FY25E and 33% for FY26E, driven primarily by robust growth projections for Blinkit and Hyperpure. Lastly, The benchmark equity indices rebounded from the day’s low on May 14. The BSE Sensex rose 341 points or 0.47% to finish the day’s trading at 73,116.71, while the NSE Nifty 50 closed 119 points or 0.54% higher at 22,222.60. Nifty Midcap 100 closed in the green up 512 points or 1.03% at 50,247.60. Bank Nifty closed up 120 points or 0.25% at 47,874.10. Adani Enterprises, M&M, Hero MotoCorp, L&T, and JSW Steel were the top gainers in the Nifty 50. While Cipla, TCS, Nestle India, Tata Consumer Products, and Axis Bank were the key laggards in the Nifty 50 on May 14.