Business News at 10:00 am on 31st July, 2024

Let’s begin – Indian benchmark indices ended marginally higher in the volatile session on July 30. At close, the Sensex was up 99.56 points or 0.12 percent at 81,455.40, and the Nifty was up 21.20 points or 0.09% at 24,857.30. About 2074 shares advanced, 1378 shares declined, and 79 shares unchanged. Top Nifty gainers included BPCL, NTPC, Tata Motors, Power Grid Corp and Asian Paints, while losers were Cipla, LTIMindtree, SBI Life Insurance, Grasim Industries and Sun Pharma. Except FMCG and Healthcare, all other sectoral indices ended in the green with power, realty and auto up 0.5-1%. BSE Midcap index was up 0.3% and Smallcap index rose 0.9%.

Up next – Colgate Palmolive‘s share price surged over 6% to reach a 52-week high on Tuesday following the company’s strong earnings report for the first quarter of FY25. Colgate shares climbed as much as 6.20% to Rs 3,408.40 apiece on the BSE. According to a Nomura report on Colgate, the firm has issued a sell call with a target price of Rs 2,800. The report highlights that Q1 was an all-round beat, with volume growth of 6-7% versus the estimated 2%. Additionally, strong gross profit margin and operating profit margin expansion continue to drive 22% EBITDA growth. Nomura has increased its EPS estimates for FY25/26/27 by 4.0%/2.8%/1.6% to account for the Q1 performance.

In another development – Indian shooters Manu Bhaker and Sarabjot Singh have clinched the bronze medal in the 10m air pistol mixed team event at the Paris Olympics 2024. They secured the medal by defeating the South Korean pair of Oh Ye Jin and Lee Wonho at the Chateauroux Shooting Centre, marking India’s second medal at the Games. India led 4-2 after the third series and increased their advantage to 8-2 by the fifth series. Despite South Korea closing the gap to 10-6 after the eighth series, the Indian duo kept their composure and secured a decisive victory. This bronze medal is India’s second shooting accolade at the Paris Games, following Manu Bhaker’s earlier bronze in the women’s 10m air pistol event.

Moving on – The cost of Bengaluru Metro’s Phase-2 network has surged to almost Rs 40,000 crore, reflecting a 52% increase from the initial estimate proposed in 2014. Initially approved for a 72 km stretch at Rs 26,405 crore, the project was scheduled for completion by 2019. An additional 3 km was added later, and by 2021, the cost was revised to Rs 30,695 crore. The Bangalore Metro Rail Corporation Ltd has recently submitted a revised cost proposal to the State Finance Department through the Urban Development Department for approval. A senior official stated that the main reason for the cost escalation is the significant delay in the project’s completion.

Meanwhile – Sapphire Foods India Ltd on Tuesday posted its first quarter earnings for FY25 with profit at Rs 8.52 crore, down 65.8% in comparison to Rs 24.94 crore during the corresponding quarter of FY24. It posted revenue from operations at Rs 718.29 crore, up 9.8% as against Rs 654.38 crore during the first quarter of previous financial year. The company EBITDA stood at Rs 124 crore, up 3.3% on-year. The company said that its Q1FY25 consolidated restaurant sales was at Rs 716.50 crore, recording a growth of 10%. Sapphire KFC delivered restaurant sales growth of 11% YoY and restaurant EBITDA was at 18.8%. The company said that the drop in EBITDA% is on account of operating de-leverage due to the negative SSSG.

In other news – China has completed the construction of a 400-meter bridge near the LAC in Ladakh, a report said. Recent satellite images reveal that the bridge is now black-topped and in use by light motor vehicles. Situated in territory held by China since 1958, the bridge is strategically located near the LAC between India and China in Ladakh. It facilitates the rapid movement of Chinese troops between the North and South banks of Pangong Lake. Satellite images also show road access linking the new bridge to the existing road network on the North bank of Pangong, which leads to Khurnak Fort. On the South bank, a new road connects the bridge to Rutog, a Chinese garrison town and munitions hub.

Lastly – Shares of state-owned Hindustan Petroleum Corporation Ltd rose on Tuesday, July 30, despite the company reporting a significant decline in net profit due to slumping refinery margins and reduced marketing margins from fuel price cuts. The stock of HPCL increased by 4.09% to Rs 396.65 on the NSE and by 4.12% to Rs 396.90 on the BSE in early trade, as analysts anticipate potential upside based on strong physical performance. Jefferies has issued an underperform call on Hindustan Petroleum Corporation Ltd with a target price of Rs 315. The report notes that Q1 results revealed weak performance, with EBITDA down 56% quarter-over-quarter, although it was 21% above estimates.