In this week’s round-up we talk about the Q3 results of Indian Oil Corporation, Canara Bank, Tata Steel and Tech Mahindra. Also, know about Sebi relief for high-risk FPIs among other news.
Weekly Business Roundup at 10:00 am on 27th January 2024.
[Disclaimer: This transcript is auto-generated]
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Let’s begin with Q3 results that made headlines this week. Indian Oil Corporation Limited this week reported its third quarter profit for the financial year 2023-24 at Rs 9220.85 crore, up 935.7 per cent in comparison to Rs 890.28 crore during the same period last year, surpassing estimates. It posted revenue from operations at Rs 2,26,892.08 crore, down 2.3 per cent as against Rs 2,32,303.20 crore during the third quarter of FY23. According to a CNBC TV18 poll, IOC was expected to record Q3 profit at Rs 4387 crore. While the total income recorded for the quarter ended December 31, 2023 was at Rs 2,28,160.31 crore, total expenses incurred during the quarter in review stood at Rs 2,16,802.74 crore.
Meanwhile, Canara Bank this week reported its third quarter profit at Rs 3738.26 crore, up 27.9 percent in comparison to Rs 2923.16 crore during the corresponding quarter of last year. The bank’s Net Interest Income stood at Rs 9,417 crore, up 9.50 percent on-year. The Net Interest Margin, meanwhile, stood at 3.02 percent improved by 9 bps. The Bank’s Gross Non-Performing Assets ratio stood at 4.39 percent as at December 2023 as against 5.89 percent recorded during the same quarter last year. The Net Non-Performing Assets ratio stood at 1.32 percent as at December 2023 as against 1.96 percent last year. The Provision Coverage Ratio improved to 89.01 percent as at December 2023 from 86.32 percent as at December 2022.
Moving on. Tata Steel this week posted a net profit of ₹513 crore on a consolidated basis for the quarter ended December 31, missing consensus street estimates of ₹1,688 crore, driven by demand from the domestic market. The company had posted a net loss of ₹2,224 crore for the comparable year-ago period. It The had posted a net loss of ₹6,196 crore for the preceding quarter ended September 30, impacted by weak performance of its European operations. For the reporting quarter, Tata Steel’s revenue fell 3.1% to ₹55,312 crore from ₹57,084 crore recorded during the comparable year-ago period, while Ebitda rose 54.7% to ₹6,264 crore from ₹4,048 crore.
In some more industry news, Tech Mahindra Ltd this week reported its third quarter profit for the financial year 2023-24 at Rs 510.40 crore, down 60.6 per cent in comparison to Rs 1296.60 crore during the third quarter of FY23, missing estimates. It posted revenue from operations at Rs 13,101.30 crore, down 4.6 per cent as against Rs 13,734.60 crore during the corresponding quarter of last year. According to a CNBC TV18 poll, Tech Mahindra was expected to record Q3FY24 profit at Rs 605 crore and revenue for the quarter in review was estimated at Rs 12,813 crore. The company EBITDA stood at Rs 1,146 crore, down 46.5 per cent on-year.
Over to market. In a relief to foreign portfolio investors with disproportionately high exposure to a single corporate group, the Securities and Exchange Board of India has decided to give them more time to comply with the new disclosure norms on beneficial owners or liquidate holdings, sources close to the development said. In its latest move, the markets regulator has informally advised FPIs that by the end of January, the ones that exceed Sebi-defined threshold limits will get 10-30 days to make the necessary disclosures. If they fail to do so, they will get another six months to prune their holdings to admissible limits, said the source.
In some more market news, Azim Premji, founding chairman of Wipro, last week gifted a little over 10 million Wipro shares to his sons — Rishad A Premji and Tariq Premji. The gifted shares are valued at about Rs 500 crore. Post transaction, Premji now holds about 215.5 million of Wipro shares. Both Rishad and Tariq received about 5.1 million shares each from their father, taking their holdings from 0.03% to 0.13% each. Premji’s holding after the transaction fell to 4.12% from 4.32%, as per BSE. The senior Premji had 225.8 million shares in Q3 of FY24. After the gifting transaction, that fell to 215.5 million shares. A total of 10.23 million shares changed hands priced at about Rs 489 each.
Lastly, Indus Towers this week said the collections from one of its largest customers Vodafone Idea has improved in the October-December quarter, and it expects the telecom operator to continue clearing its monthly bills. In January, Vodafone Idea paid Indus Towers Rs 300 crore towards its past dues, which the company recognised in the October-December quarter. Payment by Vodafone Idea for its part past dues was in addition to its monthly bills, Indus Towers said, without naming the telecom operator. Prachur Sah, managing director and chief executive officer of Indus Towers during the October-December earnings call said, quote, “Collection from one of our major customers (Vodafone Idea) slightly improved in Q3 (October-December), with some collection against the past overdue,” unquote.
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