Business News at 05:30 pm on 30th October 2023

Let’s begin. HSBC Holdings today reported a 240% increase in third-quarter pre-tax profit as higher interest rates boosted the bank’s profitability and helped it fund a fresh $3 billion share buyback. The results from Europe’s biggest bank showed the pressure it is under to deliver to long-suffering investors now that interest rates worldwide are rising, as its profit more than doubling in the third quarter nonetheless missed analysts’ expectations because of higher costs. HSBC also indicated costs are likely to increase by 4% this year, more than its previous goal of a 3 per cent rise, as technology and operating spending grows and it considers a boost to staff bonuses in the fourth quarter.

Meanwhile, Reliance Industries’ stock price climbed 2.61% after the company’s revenue growth during the quarter was supported by continuing growth momentum in consumer businesses. It said that the revenue for JPL increased by 10.6% on-year, led by 7.5% increase in subscriber base and higher ARPU. Revenue for RRVL grew by 18.8% with growth momentum across consumption baskets, led by food & grocery which grew by 33%. Revenue from the Oil & Gas segment increased significantly. And the O2C revenue declined 14% with decrease in crude oil prices leading to lower price realization for products. The stock price of Reliance Industries gained 0.82% in the last five days, while it slipped 0.27% in the last one month.

Moving on. In the fiscal year 2023, Zomato has gained more strength with 647 million orders to 58 million customers, with a total order value of Rs 263.1 billion across more than 800 cities in the country. Rakesh Ranjan, CEO, Food Ordering & Delivery Business, Zomato, told FinancialExpress.com, quote, “Our extensive reach has brought us closer to many more customers nationwide. As of June 2023, our platform had 226,000 average monthly active food delivery restaurant partners and 352,000 average monthly delivery partners,” unquote. The technology platform attributed the growth to factors like recovering demand since February and the seasonally strong nature of Q1, increased adoption of their Gold program, and team execution on all fronts.

On to IPOs. Cello World IPO opened for public subscription today and will now close on November 1, Wednesday. The bidding for anchor investors concluded on Friday, wherein the company collected Rs 567 crore. The price band for its public issue at Rs 617-648 per equity share of face value Rs 5 each. Ahead of the public issue, Cello World shares’ grey market premium rose 18.52%, over the upper end of the share price on offer. The IPO comprises a fresh issue of 29,320,987 equity shares aggregating up to Rs 1,900 crore and an Offer-For-Sale with promoters offloading 29,320,987 shares aggregating up to Rs 1,900 crore. For potential investors, the bidding starts at a minimum of 23 equity shares, with subsequent bids in multiples of 23 equity shares.

Next up, some updates about the restoration work going on at the site of Andhra train accident. The Railways officials today informed that the restoration work is ongoing at war footing on the Howrah-Chennai line in Vizianagaram district of Andhra Pradesh where two passenger trains collided on Sunday evening, leaving 14 passengers dead and 50 injured. According to a Railways official, East Coast Railway General Manager Shri Manoj Sharma is monitoring the restoration work at the accident site along with Principal Heads of Departments of ECoR and Divisional Railway Manager Waltair.

Over to healthcare. Sun Pharmaceutical Industries Limited and Zydus Lifesciences Limited on Monday announced that both companies have entered into a licensing agreement to co-market an innovative drug, Desidustat in India. Desidustat is a first-of-its-kind oral treatment for anemia associated with Chronic Kidney Disease in India, the company claimed. Under the terms of this agreement, Zydus has granted Sun Pharma semi-exclusive rights to co-market the product in India. Sun Pharma will market the drug under the brand name RYTSTAT. Zydus launched the drug under the brand name Oxemia in 2022 and will continue to market it. Zydus will receive upfront licensing income and is eligible to receive milestone income based on the achievement of pre-defined milestones.

Lastly, the share market. Benchmark indices ended higher for the second consecutive session on October 30 with Nifty around 19,150. BPCL, UltraTech Cement, ONGC, Reliance Industries and SBI Life Insurance were among the major gainers on the Nifty, while losers were UPL, Tata Motors, Maruti Suzuki, Bajaj Auto and Axis Bank. On the sectoral front, except auto and FMCG, all other sectoral indices ended in the green. The BSE Midcap and Smallcap indices ended on a flat note. Indian rupee ended flat at 83.25 per dollar on Monday versus Friday’s close of 83.24. Also, Adani Green Energy today posted second quarter profit at Rs 371 crore, up 149% as against Rs 149 crore during the corresponding quarter of last year.