Business News at 05:30 pm on 23rd May, 2024

Let’s begin with the major update, ITC Ltd on Thursday recorded fiscal fourth quarter profit at Rs 5120.55 crore, down 4 per cent in comparison to Rs 5335.23 crore during the corresponding quarter of FY23, surpassing estimates. It posted revenue from operations at Rs 19,446.49 crore, marginally lower than Rs 19,484.50 crore during the same period last year. The company board recommended a final dividend of Rs 7.50 per ordinary share of Re 1 each for the financial year ended 31st March, 2024. The final dividend will be paid between Monday, 29th July, 2024 and Wednesday, 31st July, 2024 to those members entitled thereto. Together with the interim dividend of Rs 6.25 per ordinary share declared by the board on 29th January, 2024, company said.

Moving on, an SIP (systematic investment plan) is an alternative method of investing in mutual funds which allows you to contribute a fixed sum on a regular basis, monthly or quarterly. The other one is lump sum investment. An SIP can be started with an amount as low as Rs 100 per month. Like a recurring deposit in banks, the SIP method of investment is hassle-free as your fund house gets your contribution through automated monthly deductions. Today, SIP investment in mutual funds is very popular among investors and is considered a safe method to invest as investment is spread over time. As you contribute a fixed amount regularly, SIP helps you mitigate the impact of market volatility.

In other news, Revenue growth of road transport fleet operators is expected to double to 9-11 per cent this fiscal, said a report by CRISIL Ratings. This, it added, is driven by better domestic demand, and despite tepid exports. Also, operating margin is seen improving 75-100 basis points on better fleet utilisation and steady fuel costs. According to CRISIL Ratings, the credit profile of operators should remain strong as well, as they may look to moderate capital expenditure (capex) towards fleet expansion, following strong additions in the past three fiscal years, even as new guidelines for air-conditioned driver cabins kick in next fiscal. It said that steady working capital is also providing support.

Meanwhile, Income tax return filing FY 2023-24: You need to be careful while claiming tax exemptions and deductions in income tax return ITR. The Income Tax Department may ask you for proof for the deductions and tax exemptions you claim in the ITR during processing, whether for the current year or previous years. Every year, the income tax authorities uncover fraudulent tax refund claims by taxpayers, including by employees of companies. On account of receiving these false refund claims, those taxpayers are served notices by the department. Many times, taxpayers also falsely report losses under the category of income from house property to file fraudulent refund claims. As per income tax rules, misreporting income is against the law and bound to attract heavy penalties.

Up next, The shares of Sun Pharma plunged over 4% in the early trading session on Thursday, despite the company reporting a 34% jump in net profit year-on-year in Q4FY24 on Wednesday. The share price of Sun Pharma slipped 4.69% to an intra-day low of Rs 1,467 on the NSE. Leading pharma player Sun Pharma reported a net profit of Rs 2,654 crore for the quarter ended March 2024 on Wednesday, marking a 34% increase from the Rs 1,984 crore reported in the same quarter last year. Revenue from operations rose 10% year-on-year to Rs 11,983 crore in the fourth quarter, compared to Rs 10,931 crore a year ago. EBITDA for the fourth quarter was Rs 2,985 crore, with margins at 25% during the same period.

Moving ahead, Jubilant FoodWorks’ share price surged over 4% in the early trading session on Thursday, following the company’s report of a seven-fold jump in net profit in the Q4 results year-on-year. The shares soared as much as 4.53%, reaching an intraday high of Rs 502.4 per share on the NSE. On Wednesday, May 22, Jubilant FoodWorks reported a consolidated net profit of Rs 208.25 crore for Q4FY24, marking an over seven-fold increase, or nearly 630% year-on-year (YoY), compared to a profit of Rs 28.54 crore in the same quarter last year. The consolidated revenue from operations for the quarter under review rose nearly 24% YoY to Rs 1,572.8 crore from Rs 1,269.8 crore in Q4FY23.

Lastly, let’s take a look how the stocks performed today. he benchmark equity indices ended Thursday’s trading session in the positive territory. The NSE Nifty 50 gained 369.85 points or 1.64% to settle at 22,967.85, while the BSE Sensex jumped 1196.98 points or 1.61% to 75,418.04.The broader indices ended in positive territory, with gain led by Large-cap and Midcap stocks. Bank Nifty index ended higher by 986.65 points or 2.06% to settle at 48,786.65. Auto and Banking stocks outperformed among the other sectoral indices while Pharma stocks shed. Adani Enterprises, Adani Ports and SEZ, L&T, Axis Bank, and Maruti Suzuki India are the top gainers on NSE Nifty 50 wheeas the top laggards include Sun Pharma, Power Grid Corp, Hindalco, Coal India and NTPC.