Business News at 05:30 pm on 18th July, 2024

Let’s begin…. Mukesh Ambani-led Reliance Industries saw its share price dip by over 1% to an intra-day low as investors awaited the company’s Q1 results. Analysts anticipate modest year-on-year growth in revenue and net profit for Q1FY25, but expect a sequential decline in EBITDA. The share price of Reliance Industries fell 1.16% to intra-day low of Rs 3115.65. According to Bloomberg estimates, a poll of 13 analysts predicts Reliance Industries to report Q1 revenue of Rs 2.3 trillion, reflecting an 11.8% increase from the previous fiscal quarter. Six analysts anticipate a net profit of Rs 17,655 crore, marking a 10.3% year-on-year rise but a 6.8% decrease from the previous quarter. EBITDA is projected at Rs 39,790 crore by 14 analysts, representing a 15.4% decline quarter-on-quarter.

Moving on, Shares of IT major LTIMindtree climbed by over 3% after the opening bell on Thursday, July 18. The surge came despite the company, a day earlier, reporting a dip in its June quarter net profit. The share price of LTIMindtree traded up by 3.5% to an intra-day high of Rs 5,775 on NSE. LTI-Mindtree reported a 1.5% decrease in consolidated net profit to Rs 1,135 crore for the June quarter of FY25, compared to Rs 1,152 crore in the year-ago period. However, the net profit saw a 3% increase sequentially. The IT firm’s revenue from operations rose to Rs 9,142 crore in Q1FY25 from Rs 8,702 crore in Q1FY24, marking a 5% annual growth.

Furthermore, Keir Starmer is Britain’s new Prime Minister, following a huge victory for the Labour Party after more than a decade in opposition. Foreigners wishing to reside in the UK and international students hoping to study at UK universities will have a lot to look forward to. Immigration was a major topic during the general election of 2024, with both main parties promising to lower net migration levels. The way the incoming UK administration handles immigration matters is anticipated to have a big effect on both the future of overseas students and the British economy. The UK is the second most popular international student destination, hosting 700,000 students worldwide. Bringing down the net migration rate was the primary objective of the Conservatives party.

Elsewhere, To address backlogs and expedite resolution of cases, tax experts and industry executives have asked the government for the capacity expansion of the Customs Authority for Advance Ruling, which currently has only two benches in the country, in Delhi and Mumbai. Sources say that several representations from the industry have been made regarding the same to the finance ministry in the pre-Budget meetings, but the government is unlikely to announce any expansion in the upcoming Budget for 2024-25, set to be presented on Tuesday. The Customs Authority for Advance Ruling is a legal body under section 28H of the Customs Act, 1962, that issues clarification and imparts certainty to the taxpayers by addressing doubts and concerns regarding the classification of goods, determination of customs valuation, and other related issues.

Moving on, Sanastar IPO will open bidding for subscription on July 19 when investors can quote the stock. The company has kept the IPO price band in a range of Rs 90 to Rs 95 per equity share. The last day to apply for Sanstar IPO is July 23. The company wants to collect Rs 510.15 crore from investors by offering them a combination of fresh issue as well as an offer for sale. The company will sell 41.8 million shares for a value of Rs 397.10 crore. While, the offer for sale is of 11.9 million shares raising Rs 113.05 crore for the promoters and other selling shareholders. Sanstar is in the manufacturing of speciality plant-based products and ingredient solutions for food, pet food , and other industrial applications.

Furthermore, Hinduja Tech Limited (HT), an Indian flagship of conglomerate the Hinduja Group, announced the signing of a definitive agreement to acquire German based engineering company TECOSIM Group. Based on reports, the shares have been acquired at an enterprise value of 21 million Euro and will be acquiring 100% shareholding in TECOSIM Group company for cash consideration. The deal is said to be completed by September 30. Kumar Prabhas, CEO of Hinduja Tech Limited, said, “We are delighted to have TECOSIM Group join the Hinduja Tech family. This acquisition aligns with our strategic goal to become a global leader in mobility engineering services. TECOSIM’s technological prowess and market presence in Europe will greatly enhance our capabilities, allowing us to better serve our clients with innovative and sustainable solutions.”

Lastly, he benchmark equity indices ended Thursday’s trading session in the positive territory. The NSE Nifty 50 gained 187.85 points or 0.76% to settle at 24,800.10, while the BSE Sensex jumped 626.91 points or 0.78% to 81,343.46. The broader indices ended in mixed territory, with gain led by Large-cap. Bank Nifty index ended higher by 223.90 points or 0.43% to settle at 52,620.70. IT and FMCG stocks outperformed among the other sectoral indices while Metal and Media stocks shed. LTIMindree, ONGC, TCS, Bajaj Finserv, and Wipro are the top gainers on NSE Nifty 50 index whereas the top laggards include Asian Paints, Coal India, Grasim, Hero MotoCorp, and Bajaj Auto.