Weekly News Roundup at 10:00 am on 7th April, 2024

Let’s begin. Oil marketing companies announced Rs 30.50 cut in commercial 19kg LPG cylinders and 5kg FTL (Free Trade LPG) cylinders are now cheaper by Rs 7.50. With the price cut, the cost of a 19 kg commercial cylinder in Delhi is now Rs 1764.50 starting April 1. Similarly, the price of the 5 kg FTL cylinder has been reduced by Rs 7.50. This reduction comes after oil marketing companies announced a hike in the prices of commercial liquefied petroleum gas cylinders on March 1, amidst fluctuations in fuel costs and market dynamics. While the specific reasons for the price decrease remains undisclosed, factors such as changes in international oil prices, shifts in taxation policies and supply-demand dynamics are likely contributors.
Meanwhile, The credit quality outlook for fiscal 2025 remains positive with upgrades continuing to outpace downgrades, said a report by CRISIL Ratings this week. This, it added, was driven by domestic demand, low corporate debt levels and tailwinds from the ongoing infrastructure build-out. The CRISIL Ratings’ credit quality framework for the corporate and infrastructure sectors – the COIN framework – provided credit quality outlook for FY25 on 38 sectors that accounted for ~72 per cent of the rated debt. The CRISIL Ratings credit ratio moderated in the second half of fiscal 2024 but remained elevated at 1.79 times compared with 1.91 times in the first half. In all, there were 409 upgrades and 228 downgrades in the last fiscal year.
On to industry, India’s largest power generating company, NTPC or National Thermal Power Corporation has clocked 55 per cent growth in coal despatches along with 50% expansion in output across all mines in FY24, as compared to last year. The company also recorded an all-time high annual electricity generation of 422 billion units in the fiscal year. As per the company statement, the company despatched 24.15 million metric tonne coal meanwhile the coal production stood at 34.88 MMT with a growth of around 50 percent by March 31, 2024. To achieve sustained growth in coal production, NTPC has also implemented a range of strategies and technologies, the statement added.
In some more industry news, Aditya Birla Fashion and Retail has been quietly shoring up the retail presence of Reebok, the sportswear brand whose distribution rights it acquired in December 2021 for India and Southeast Asian countries from the Authentic Brands Group, Reebok’s new owner. While the deal has helped ABFR to mark its presence in India’s Rs 20,000-crore organised sports footwear market, which has big names such as Puma, Adidas, Nike, Asics, Skechers, and Decathlon lording over it, Aditya Birla group has big plans for the brand. The sports footwear is growing at around 10% per annum. Analysts and retail experts see ABFRL taking a leaf out of rival Metro Brands’ strategy to grow its footwear business in the country.
On to market. Fuelled by improved market sentiments and robust underlying demand, fundraising by issuing shares/units to institutional investors soared to Rs 78,000 crore in 2023-24, a more than seven-fold surge year-on-year. The 2024-25 fiscal is expected to be very robust as companies will continue to garner capital for capex post-election results. In an unprecedented era of economic development aided by pro-business reforms and macroeconomic stability, India is set to become the third-largest economy globally by 2027 and will continue to see strong flows. QIP is designed for the listed firms and investment trusts, which allows them to mobilise funds quickly from institutional investors without the need to submit any pre-issue filings to market regulators.
Moving on. The government has launched the ‘myCGHS’ app for iOS to provide Central Government Health Scheme beneficiaries access to electronic health records, information, and resources. According to Health Ministry, the app facilitates a wide range of services, including booking and cancellation of online appointments, accessing reports from CGHS labs, checking medical reimbursement claim status, and locating nearby wellness centres and empanelled hospitals, labs, and dental units among others. The app was launched on Wednesday, an official statement said. Union Health Secretary Apurva Chandra said the app is an essential leap for CGHS in the realm of healthcare services. According to officials, the app features security features like 2-factor authentication and functionality of mPIN ensuring the confidentiality and integrity of users’ data.
Lastly, the auto sector. Toyota launched its most affordable vehicle in the Indian market, the Urban Cruiser Taisor, starting at Rs 7.74 lakh, ex-showroom. The Toyota coupe SUV is at least Rs 22,000 more expensive than the Maruti Suzuki Fronx. The bookings for the Taisor have already begun, and deliveries will begin in May. The Taisor’s design is the same as the Maruti Suzuki Fronx. It gets a thick chrome bar on the front fascia, but the Toyota coupe SUV gets a new honeycomb grille. It sports the split headlight design and gets twin horizontal LED DRLs, unlike the Fronx’s three-pronged ones.