In today’s podcast, we talk about the expected spurt in operating profits for the Indian offshore rig operators, increasing fog in Delhi NCR, cancellation of several trains due to low visibility, Shimla Winter carnival, among other things.
Today’s Latest Business News at 05:30 pm on 26th December, 2023.
[Disclaimer: This transcript is auto-generated]
===
Let’s begin – Indian offshore rig operators are set for a 30% spurt in operating profit in fiscal 2025 as strong global demand for rigs amid healthy crude oil prices keeps day rates elevated after doubling to ~$85,000 from last year’s level, said a report by CRISIL Ratings. The operators, it added, will benefit gradually as expiring rig contracts get redeployed at higher rates and the weighted average day rates improve to ~$60,000 by next fiscal from $35,000-$40,000 last fiscal. As a result, operating profit is expected to increase by a modest 5% this fiscal and surge next fiscal as newer lucrative contracts kick in. Further, the report stated that in the absence of significant investment towards addition of rigs, the growth will bolster the return and debt metrics of rig operators and strengthen their credit risk profiles.
Up next – Muthoot Microfin Ltd shares debuted at a 5.40% discount to the IPO price on Tuesday, December 26. The NSE listing commenced at ₹275.30 compared to the offer price of ₹291, reflecting a discount of 5.40%. Similarly, on the BSE, the stock was listed at ₹278, marking a 4.46% decrease. Backed by Muthoot Pappachan Group, Muthoot Microfin’s shares were commanding a ₹27 premium in the grey market, indicating potential gains of 9% at the time of listing. The grey market premium serves as an indicator of how the company’s shares are valued in the unlisted market, subject to rapid changes. The ₹960-crore IPO garnered a subscription of 11.52 times at closing.
Moving on – China-headquartered electric vehicle major BYD has announced the next phase of its European strategy with the construction of a brand-new manufacturing and production centre in Szeged, Hungary. The new facility the company claims will be the first of its kind built by a Chinese automotive company in Europe and will have the advanced car production line. The factory will be built in phases and is expected to create thousands of local jobs, boost the local economy and support local supply chains. The construction of this production centre is expected to have a positive impact on the local economy by promoting technological exchange and innovation between China and Hungary. BYD will also utilise its expertise in integrated vertical supply chains to help create a green ‘ecosystem’ locally.
In another development – JSW Renew Energy Limited, a wholly owned step-down subsidiary of JSW Energy Limited, on Tuesday announced that it has started phase-wise commissioning of the 810 MW ISTS-connected Wind Power Project awarded under SECI tranche IX in Tamil Nadu with commissioning of the first phase of 51 MW. The Project has a power purchase agreement with SECI for a period of 25 years, the company said in a regulatory filing. Subsequent to this, it added, the total current installed capacity becomes 6,822 MW while the under-construction capacity stands at 2,969 MW, which is likely to be commissioned in phases over the next 12 months.
Meanwhile – Around 25 out of the 303 passengers onboard a chartered flight grounded on Thursday last week have sought asylum in France. While two of the people on board were destined by the French authorities in connection with human trafficking, some 25 others refused to fly back to India and have sought asylum in France. Those grounded in Paris include a 21-month-old child, several unaccompanied minors and adults from India and Nepal. According to sources at least four out of 25 are likely from Nepal and the rest are Indians – from Punjab and Gujarat.
In other news – Delhi-NCR woke up to a dense fog shrouding it and with that came trains and flights delay. Earlier today, the IMD shared satellite images on X showing a layer of fog spreading over Delhi, Punjab, Uttar Pradesh and Haryana and Madhya Pradesh. Its latest post showed fog/low cloud layer still continuing over Punjab, Haryana, North-west parts of Delhi, parts of Rajasthan, Uttar Pradesh, and North Madhya Pradesh. The Puri-New Delhi Purushottam Express is among the trains which have been delayed. Besides this, Howrah-New Delhi Poorva Express, Kanpur-New Delhi Shramshakti, Allahabad-New Delhi Prayagraj, Azamgarh-Delhi Kaifiyat Express, Bhagalpur-Anand Vihar Vikramshilla, Gaya-New Delhi Magadh Express, Dibrugarh-New Delhi Rajdhani, Durg-Nizamuddin Samparkkranti, Chennai-New Delhi GT Express, Hyderabad-New Delhi Telangana, Habibgang-New Delhi Bhopal Express, Khajuraho-Kurukshetra Express and Vasco-Nizamuddin Goa Express are theother trains arriving later in Delhi.
Lastly – To showcase the rich cultural heritage and to promote tourism in Himachal Pradesh, Chief Minister Sukhvinder Singh Sukhu inaugurated the first-ever ‘Shimla Winter Carnival’ at its historic ridge. The event started with a cultural parade that saw the participation of 450 women presenting Mahanati, showcasing the talent of self-help groups and Anganwadi workers. After experiencing a trail of destruction due to heavy rains and floods earlier this year, the Himalayan state is back on the tracks of recovery ahead of the festive season. Tourists are particularly thronging the popular tourist destinations like Shimla and Manali apart from other popular places.
