Business News at 05:30 pm on 30th January, 2024

Let’s begin – Jefferies maintains a positive stance on Marico, retaining its “BUY” recommendation. The report slightly moderates estimates based on lower revenues but underscores the overall positive trajectory. The target price is adjusted slightly lower to Rs650 from Rs660, reflecting Jefferies’ ongoing confidence in Marico’s growth potential. The report points out that Marico has witnessed a significant expansion in gross margins, reaching a multi-quarter high. This boost is attributed to a correction in input costs and a strategic shift in product mix. Despite a noteworthy increase in advertising expenditures, Marico managed to expand its Ebitda margin smartly. While the company experienced a decline in revenues, Jefferies emphasizes that this metric may be less relevant due to Marico’s substantial dependence on high commodity prices.

Up next – Adani Total Gas said its consolidated net profit for the quarter ended December 2023 rose 17.61% to Rs 176.64 crore, up from Rs 150.19 crore in the same quarter last year. Its revenue from operations stood at Rs 1,244 crore, registering a growth of 4.93% from Rs 1,185.50 crore in the corresponding quarter last fiscal, the company said in an exchange filing. This was impacted due to a reduction in gas cost especially Administered Pricing Mechanism gas as the company passed on the benefit of APM gas price reduction to consumers which resulted in lower sales price. EBITDA of the company was at Rs 301 crore, increasing by 26% year on year, on account of higher volume and balanced price strategy.

In another development – Bajaj Finserv Ltd on Tuesday reported its fiscal third quarter profit at Rs 2,157.67 crore, up 21.1 per cent in comparison to Rs 1,782.02 crore during the third quarter of FY23. It posted revenue from operations at Rs 29,038.43 crore, up 33.5 per cent on-year as against Rs 21,755.15 crore during the corresponding quarter of previous year. The company’s life insurance gross written premium was up 21 per cent on-year and the gross written general insurance premium went up by 25 per cent YoY. Bajaj Finserv Asset Management Ltd received encouraging response to its mutual fund schemes, with assets under management (AUM) of Rs 6,395 crore as on 31 December 2023.

Moving on – In a major development for the Indian aviation sector, SpiceJet has announced that it has more than Rs 900 crore in funding coming in this month. The low-cost airline plans to utilise this funding for the upgradation of its fleet and cost-cutting measures. In an internal note to the senior staff, the airline said it now has a substantial bank balance of more than Rs 900 crore, including Rs 160 crore received as an installment under the government’s Emergency Credit Line Guarantee Scheme. The Gurugram-based carrier, which had been facing multiple headwinds in recent months, has so far received around Rs 1,000 crore under the ECLGS.

Meanwhile – The Mumbai-Ahmedabad ‘bullet train’ project in India will mark a significant milestone as it incorporates an earthquake detection system — a pioneering initiative for the country. The National High-Speed Rail Corporation announced the installation of seismometers along the corridor, implementing an ‘Early Earthquake Detection System’ based on Japanese Shinkansen technology. This innovative approach aims to enhance safety measures for passengers and safeguard critical infrastructure. The National High-Speed Rail Corporation to install 28 seismometers along the Mumbai-Ahmedabad ‘bullet train’ corridor, employing an ‘Early Earthquake Detection System’ based on Japanese Shinkansen technology. The initiative aims to enhance passenger safety and protect critical infrastructure.

In other news – Union Budget has long been a significant influencer in the Indian market, often synonymous with heightened market volatility. Over the past 24 years, specifically during budget sessions on February 1, data reveals that only in 7 instances did the Indian market move less than 1% on the budget day. In last year’s budget, Indian indices experienced a mixed outcome after an extremely volatile session. The Sensex closed 158 points, or 0.27%, higher at 59,708.08, while the Nifty ended at 17,616.30, down 46 points, or 0.26%. Notably, this marked the first time since 2018 that Indian indices moved less than one percent on the budget day, with the market ending nearly flat in 2018, down just 0.1%.

Lastly – German sports car and luxury brand Porsche India has recorded its best retail year since its inception by selling 914 new vehicles in 2023. This represents 17 percent growth compared to 2022, and a 64 percent increase the year prior. Interestingly, concluding a year that celebrated 75 Years of Porsche at the Festival of Dreams, Porsche India recorded the highest number of Taycan deliveries to date, handing over the keys to 113 EVs during the year while also maintaining its legacy sports coupe clientele with a record 65 deliveries of the iconic 911 in the same period. Last year it inaugurated 5 facilities in 5 days in Ahmedabad, Bengaluru, Chennai, Kolkata and Mumbai, boosting its total network to 8 facilities.