Business News at 10:00 am on 30th January, 2024

Let’s begin. Natural gas distribution company Indraprastha Gas Ltd on Thursday recorded its Q3FY24 profit at Rs 475.45 crore, up 42.3 per cent on-year in comparison to Rs 334.06 crore during the corresponding quarter of previous year, surpassing estimates. It posted revenue from operations at Rs 3,926.19 crore, down 4 per cent as against Rs 4,089.03 crore during the third quarter of FY23. According to a CNBC TV18 poll, IGL was expected to post Q3FY24 profit at Rs 454 crore, and revenue was estimated at Rs 3,493 crore for the quarter ended December 2023.

Meanwhile, Hindustan Petroleum Corporation Ltd on Thursday recorded its third quarter profit for the financial year 2023-24 at Rs 712.84 crore, up 60.5 per cent in comparison to Rs 444.26 crore during the corresponding quarter of the previous year, missing estimates. It posted total income for the quarter in review at Rs 1,19,013.33 crore, up 2.2 per cent as against Rs 1,16,485.79 crore during the third quarter of FY23. Total expenses, however, incurred during the quarter ended December 2023 stood at Rs 1,18,288.83 crore. According to a CNBC TV18 poll, HPCL was expected to record a Q3 profit at Rs 1,498 crore and revenue for the quarter was estimated to be at Rs 99,501 crore.

Moving on. LT Foods on Thursday announced its third-quarter earnings for the financial year 2023-24 with profit at Rs 152.65 crore, up 52.1 per cent on-year in comparison to Rs 100.38 crore during the corresponding quarter of the previous year. It posted revenue from operations at Rs 1941.73 crore, up 9.2 per cent as against Rs 1778.47 crore during the third quarter of FY23. While the total income recorded during the quarter was at Rs 1949.69 crore, total expenses incurred during Q3FY24 stood at Rs 1757.68 crore. The company board also approved the appointment of Raju Lal, as an Additional Director in the capacity of an Independent Director for a period of 5 years, effective from January 25, 2024.

In some more industry news, Intercity car rental service provider Savaari on Thursday announced that it has completed a transaction in which MakeMyTrip has acquired a majority stake in the company. Earlier, MakeMyTrip had announced in its second quarter FY23-24 results that it has agreed to acquire a majority interest in Savaari Car Rentals Private Limited. Savaari said that it will continue to operate as an independent entity led by the existing leadership team. Gaurav Aggarwal, Founder and CEO, Savaari Car Rentals, said, quote, “All the formalities of the acquisition of the controlling stake are now complete. We are now looking to transform this space by leveraging technology as well as deeper consumer understanding from MakeMyTrip,” unquote.

Over to market. The broking firm Jefferies has raised the target price to Rs 135 from Rs 130 earlier on the stock of Indian Oil Corporation. It, however, has kept the rating unchanged to “Hold” on the stock. It has also raised the net profit estimates for FY24 to 26%, without tweaking the FY25-26 estimates. The brokerage said that the company’s earnings before interest, tax, depreciation, and amortisation beat the estimates and the reason can be large inventory gains in refining and marketing. Jefferies believes that the regional refining margins will remain in the range in the current year. They will stay near the long-term average if oil demand remains muted, rising product inventory levels, and ongoing refining capacity additions.

“Let’s begin – Backed by reforms in the last ten years and new reforms to be initiated, India’s real GDP growth will likely be closer to 7% in FY25 for the fourth year in a row, the finance ministry said on Monday. The sanguine forecast is notwithstanding the emergence of new geopolitical risks. The economists led by Chief Economic Adviser V. Anantha Nageswaran said the Indian economy will become the third largest economy in the next three years with a $5 trillion economy. The International Monetary Fund has projected the tag of India by 2027-28. Indian economy grew by 7.2% in FY23 and the National Statistical Office pegged it at 7.3% for FY24.

“Moving on – In a setback to over 100 companies, including Hindustan Unilever, Nestle, Patanjali, and Philips, the Delhi High Court upheld the anti-profiteering provisions under the Central Goods and Services Tax (CGST) Act and rules on Monday. The court said relevant sections of the law provide that any reduction in rate of tax or the benefit of input tax credit shall be passed on to the consumers by way of “commensurate reduction in prices”. Any wilful action of not passing on the benefits will be treated as ‘profiteering’. The bench held that relevant legal provisions are not a price fixing mechanism, and do not violate Article 19 or Article 300A of the Constitution.

“Up Next – On Monday, the board of Think and Learn, the parent company of Byju launched a rights issue to raise $200 million from its existing investors. The issue will be open for subscription for 30 days. In a letter sent to the shareholders, founder and CEO, Byju Raveendran informed them about the board’s decision to raise capital through the rights issue mechanism. The issue will happen at a post-money valuation of $220-250 million, which is 99% lower than the company’s last funding round which happened at a valuation of $22 billion, sources said. Rights issues are typically valued much lower than the fair market valuation of a company to attract existing investors.

“In other news – On the eve of the Union Budget 2024, the chemical industry has sought tax reforms and technological support to maintain sustainable growth. Furthermore, in the wake of the geo-political crisis in Europe and the Middle East, the industry wish list also includes relief in the freight services through the Red Sea and anti-dumping measures to prevent countries like China, Korea, and Thailand from pouring Indian markets with their cheaper products. Abhay V Udeshi, Chairman of Basic Chemicals, Cosmetics, and Dyes Export Promotion Council, said, “For the Budget 2024, the government should consider the ‘Remission of Duties and Taxes on Export Products’ Scheme, challenges in freight services due to the instability in the Red Sea.”

Meanwhile, India’s second largest telecom operator Bharti Airtel added 3.98 million 4G/5G users in November, which is the highest in 27 months, as per the Telecom Regulatory Authority of India. Out of the total 379.8 million subscribers, the company’s wireless broadband, which largely includes 4G subscribers at the end of November was at 255.07 million, compared to 251.1 million in October. The trend assumes significance in the sense that in October, Airtel added only 520,000 4G/5G users, which was its lowest in 18 months. The increase in 4G additions in November can be attributed to the overall subscriber base additions in the industry, as well as migration of 2G subscribers to 4G/5G.

“Moving forward – Odisha’s Cuttack railway station stands as a pivotal hub connecting people in the country. As an integral part of the region’s infrastructure, the station has embarked on a transformative journey through a redevelopment project. This ambitious endeavor envisions a modernised transportation hub and signifies a significant leap in the state’s commitment to enhancing connectivity and passenger experience. The redevelopment of the station is being done with a project cost of Rs 303 crore under the Indian Railways’ Amrit Station Scheme. In 2021, the Indian Railways narrowed down 1,309 stations for redevelopment. Notably, the redeveloped three-storey Cuttack station will have world-class amenities for passengers such as separate arrival and departure concourses, a large food court and more

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“Lastly, GIFT Nifty indicated that Indian equity indices BSE Sensex and NSE Nifty 50 may see a positive opening on Tuesday. GIFT Nifty traded up by 101 points or 0.46% at 21,967 indicating a positive opening for domestic indices NSE Nifty 50 and BSE Sensex on Tuesday. Previously, on Monday, the NSE Nifty 50 gained 385 points or 1.80% to settle at 21,737.60, while the BSE Sensex closed 1,240.90 points or 1.76% lower to 71,941.57. The key stocks to watch in trade are ITC, Marico, Vodafone Idea, Piramal Enterprises, Bharti Airtel, Bajaj Finance, Hindustan Unilever, KEC International, Bajaj Finserv, Adani Total Gas, Dr Reddys Laboratories, Bajaj Holdings & Investment, Astral Limited and Karnataka Bank among others.
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Lastly, let’s see how the share market performed. The benchmark equity indices closed in the negative territory. The NSE Nifty 50 closed 101.35 points or 0.47% lower to settle at 21,352.60, while the BSE Sensex lost 359.64 points or 0.51% to settle at 70,700.67. The broader indices closed in the red, with midcap stocks falling the most. Bank Nifty index lost 214.75 points or 0.45% to settle at 47,208.65. About 1811 shares advanced, 1422 shares declined, and 56 shares unchanged. Among sectors, Power index up 1 percent, while Bank, FMCG, Healthcare, IT down 1 percent each. BSE Midcap index down 0.5 percent, while Smallcap index is trading flat.