In today’s audio, we talk about Federal Bank Q4 NII jumping nearly 15% on strong asset quality and Kotak Mahindra Bank plunging over 4% among other news. Also know how the market performed at closing.
Today’s Latest Business News at 05:30 pm on 2nd May, 2024.
[Disclaimer: This transcript is auto-generated]
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Let’s begin with the market. Key banking play, Federal Bank has reported the highest-ever NII in fourth quarter of FY24 at Rs 2195.11 cr, up 14.97% Year on Year from Rs 1909.29 in the fourth qaurter of FY23. The Bank also reported a net profit of Rs 906.30 crore in the fourth quarter. The strong NII also ensured healthy margins for the Federal Bank. The total income of the Bank for the quarter grew by 23.42% to reach Rs.6732.23 crore. Earnings per share annualized is Rs 14.97. Key Ratios ROA & ROE of the Bank for the quarter stood at 1.22% and 12.75% respectively. The Gross NPA of the Bank as at the end of fourth quarter of FY24 stood at Rs 4528.87 crore.
Meanwhile, Kotak Mahindra Bank witnessed a significant drop in its share price on Thursday, declining by over 4%, after the resignation of its joint managing director, KVS Manian. The bank’s shares fell by as much as 4.38% to Rs 1,552.55 each on the BSE. KVS Manian, who had recently been promoted to the position of Joint MD at Kotak Mahindra Bank, tendered his resignation after serving the institution for 29 years. Simultaneously, reports were circulating that Manian might be joining the Federal Bank as its Managing Director. This speculation prompted a surge in Federal Bank’s share price, which climbed over 4% to reach a 52-week high of Rs 170.25 each on the BSE. Analysts also view the departure of Manian as a negative development.
Moving on. Adani Ports & SEZ reported a net profit of Rs 2,014.77 crore for the quarter ending March of FY24, a jump of 76% on year, against Rs 1,139.07 crore in the same quarter a year ago. The company’s revenue from operations stood at Rs 6,896.50 crore, an increase of 19% year-over-year, compared to Rs 5,796.85 crore in the fourth quarter of FY23. The company has declared a final dividend of Rs 6 per equity share. The company in an exchange filing said that the Board has recommended a dividend of Rs. 6 per equity share of Rs. 2/- each fully paid-up for the financial year 2023-24, subject to the approval of shareholder at the ensuing AGM.
In some more market news, Havells India’s share price surged over 2% on Thursday following the company’s announcement of a 24% profit increase in the fourth quarter of fiscal year 2024. The company’s shares soared by as much as 2.52% to reach an intra-day high of Rs 1,706.85 per share on the NSE. Havells India posted a net profit of Rs 448.86 crore for the quarter ending March of FY24, marking a significant increase of 24.1% compared to the previous year’s figure of Rs 361.71 crore during the same period. The company’s revenue from operations also witnessed a notable growth of 11% year-on-year in Q4 of FY24, reaching Rs 5,434.34 crore, compared to Rs 4,849.59 crore recorded in the corresponding period a year ago.
On to aviation. The DGCA has taken decisive action against Go First by deregistering all 54 planes leased by the bankrupt airline. This move grants lessors the freedom to reclaim their aircraft from the struggling carrier, which is grappling with financial woes and engine malfunctions, and is currently undergoing insolvency resolution proceedings. Foreign lessors have sought legal assistance to retrieve their assets from the defunct airline. Responding to lessors’ requests, the Delhi High Court instructed the DGCA on April 26 to promptly process the deregistration applications. The regulator granted the airline a five-day window to meet the deadline, and all 54 aircraft have now been deregistered. Details regarding the deregistration of Go First planes are available on the DGCA’s official website.
In the auto sector, Maruti Suzuki has started accepting bookings for the 2024 Swift, which is set to launch on May 9th. Ahead of the official launch, details regarding the car’s engine specifications, fuel economy and features have been leaked. The fourth-generation Swift was unveiled at the Tokyo Mobility Show last year. The new Z Series 1.2-litre 3-cylinder will make its debut in India with the new Swift. According to a report by V3Cars, the new engine will be going to be more fuel-efficient than the current K Series 1.2-litre engine. As per the leaked report, the new 1.2-litre engine will be equipped with mild hybrid technology. This makes the Swift the first hatchback to get this feature.
Lastly, let’s see how the share market performed at closing today. Indian benchmark indices ended higher in the volatile session on May 2 with Nifty around 22,650. At close, the Sensex was up 128.33 points or 0.17 percent at 74,611.11, and the Nifty was up 43.40 points or 0.19 percent at 22,648.20. About 1677 shares advanced, 1673 shares declined, and 82 shares unchanged. BPCL, Power Grid Corporation, Asian Paints, Bajaj Auto and Tata Motors were among the top gainers on the Nifty, while losers were Kotak Mahindra Bank, Bharti Airtel, Tata Consumer, Axis Bank and HDFC Life. On the sectoral front, auto, metal, oil & gas, power up 1 percent each, while bank and realty indices ended marginally in the red.
