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Financial News – 3rd August
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Adani-backed Ambuja Cements buys stake in Sanghi Industries for $604 million:
Adani Ports and Special Economic Zone Ltd, which is a part of the Adani Group, reported that they handled a large amount of cargo in July this year, about 34 million metric tonnes (MMT) to be exact. This was a 7% increase compared to the same period last year.
The growth was seen in most of their ports, with containers showing a growth of over 23% and liquid & gas seeing an increase of more than 27% in the previous month.
During the first four months of the financial year 2024 (from April to July), they handled a total of 135.4 MMT of cargo, showing a growth of 11% compared to last year.
In July, Adani Ports also saw a rise in their logistics volume, including a 20% increase in rail volumes and a 39% increase in GPWIS (which stands for General Cargo, Projects, and Windmill Infrastructures) volumes.
On another note, the CEO of Adani Ports' Logistics division, Vikram Jaisinghani, resigned to pursue work outside the Adani Group. He will be replaced by Sushant Kumar Mishra as the new CEO-Logistics at Adani Ports, starting from 5th August.
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Air India's total losses estimated at ₹14,000 crore at FY23 end:
As of the end of the financial year 2023, Air India's total losses, including money written off for old aircraft and engines, are estimated to be around ₹14,000 crore (Indian Rupees).
During that same year, Tata Sons, a company, invested approximately ₹13,000 crore in Air India, excluding the money they committed to invest in buying 470 new airplanes.
The new planes that Air India plans to buy have a total value of $30 billion. They will make payments for these planes in installments over the coming years.
The Chairman of Tata Sons, N Chandrasekaran, emphasized that the company's focus should be on putting customers' needs first and ensuring safety rather than solely focusing on making a profit.
In addition to this, in July of the same year, Air India also finalized an agreement with CFM International, a US-based engine manufacturer, to provide engines for 400 of their aircraft. This deal was first announced back in February.
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Vedanta promoter to sell ₹4,136 cr stake:
Anil Agarwal, who owns a company called Twin Star Holdings, is planning to sell a portion of his stake in Vedanta Ltd, an Indian mining company. He wants to sell about 4.3% of the company, which is worth around ₹4,136 crore (Indian Rupees).
The reason for this sale is to reduce his debts and focus more on turning his Vedanta group into a business that mainly deals with green energy and non-ferrous materials (non-iron metals).
The deal will be arranged by JP Morgan India Pvt. Ltd, and they will sell 160 million shares of Vedanta to large investors at a price of at least ₹258.50 per share. This price is 5% lower than the closing price of Vedanta shares on the National Stock Exchange on the previous day, which was ₹272.15.
Twin Star Holdings, the main company owned by Anil Agarwal, currently owns a significant portion (46.4%) of Vedanta. This portion is valued at ₹1.01 trillion. The seller is restricted from selling any more shares for the next 180 days. The buyers in this sale will likely be qualified institutional buyers, which are large financial institutions.
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Temasek to invest ₹1,200 crore in Mahindra Electric to acquire up to 3% stake:
On Thursday, Mahindra & Mahindra Ltd. (M&M), a major Indian automobile company, announced that a global investment firm called Temasek will invest ₹1,200 crore in its subsidiary company, Mahindra Electric Automobile Ltd (MAEL), which focuses on making electric vehicles.
Temasek Holdings will invest this money by buying special shares that can be converted into ownership shares later. This investment is based on a valuation of up to ₹80,580 crore.
As a result of this investment, Temasek will own a small portion of Mahindra Electric Automobile Ltd, which will be around 1.49% to 2.97%.
This new investment by Temasek has increased the value of Mahindra's electric vehicle subsidiary by 15%, from around ₹70,070 crore to around ₹80,580 crore.
Overall, this investment will help Mahindra Electric Automobile Ltd in its mission to produce and promote electric vehicles in India.
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Sun Pharma Q1 Results: Net profit falls 2% to ₹2,022 crore, revenue rises 11% YoY:
Sun Pharma’s net profit decreased by about 2% compared to the same period last year. It earned about ₹2,022 crore in profits this time, a bit less than ₹2,061 crore last year.
However, the company's total revenue from its operations increased by 11% compared to the same time last year. It earned about ₹11,941 crore in revenue this time, up from ₹10,762 crore last year.
The company mentioned that there were some one-time expenses in this quarter that affected its profit, but if we exclude those, the profit was about $14.9 million, slightly more than the $14.1 million it earned in the same quarter last year.
The company's global specialty sales, which are sales of special medicines, increased by a significant 21% compared to last year, reaching $232 million.
These global specialty sales now make up around 16% of the company's total sales for this quarter.
The company's business in the United States has been doing well and has played a big part in its revenue growth this quarter.
The managing director of the company, Dilip Shanghvi, said that all their businesses have been growing this quarter, and they expect to continue growing throughout the year.
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Dabur Q1 Results: Net profit rises 3.5% to ₹457 crore, revenue grows 11% YoY:
Dabur’s net profit, which is the money it made after deducting expenses, increased by about 3.5% compared to the same period last year. It earned about ₹457 crore in profits this time, up from ₹441 crore last year.
The company's total revenue, which is the money it earned from selling its products, grew by 11% compared to last year.
The company's EBITDA, which is a measure of its operating profit, increased by 11.2% to ₹605 crore from ₹544 crore last year.
The company mentioned that its business in rural areas (small towns and villages) is growing again after facing some challenges in the past few quarters. The growth in rural areas is now catching up with the growth in cities.
Dabur's business in other countries is also doing well. In places like Turkey, Egypt, and parts of Africa and the Middle East, they have seen significant growth in sales.
Some of Dabur's product categories, like over-the-counter medicines and digestive products, saw strong growth during this quarter.
However, their beverage products were affected by unexpected rains, which impacted their sales.
At the time of reporting, the share price of Dabur India on the stock market had decreased slightly.
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Why Sensex crashed 1400 points in two days:
The stock market, represented by the Sensex, recently experienced a significant drop of 1400 points in just two days. This decline was due to several reasons:
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Global Market Weakness: The global market was facing some challenges, and cues from international markets were not favorable. One of the factors influencing this was the downgrade of the United States' credit rating by Fitch, which created negative sentiments worldwide.
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Continuous Selling Pressure: The key benchmark indices, including Nifty 50 and Bank Nifty, faced selling pressure for two consecutive days. This means that investors were selling their stocks, which led to a decline in the market.
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Breaking Support Levels: The Nifty 50 and Bank Nifty indices fell below their immediate support levels, which are points where the market tends to stabilize. When these support levels are broken, it signals a bearish trend, and investors become cautious.
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Zomato Q1 Results: At ₹2 crore, food delivery platform reports net profit for the first time:
Zomato made a net profit of ₹2 crore for the first time in this quarter. The revenue from their operations, which is the money they earned from delivering food, reached ₹2,416 crore. This is a significant increase of about 71% compared to the same time last year when they earned ₹1,414 crore.
When Zomato announced these results during the trading hours, the value of their stock on the National Stock Exchange (NSE) went up by over 2%. This means investors were happy with the company's performance.
Zomato mentioned in their official statement that their quick commerce business, called Blinkit, started making a positive contribution for the first time in June 2023. This means that part of their business started earning more money than it used to. The company's consolidated adjusted EBITDA, which is a measure of their operating profit, stood at ₹12 crore. This is a significant improvement compared to the same time last year when they had a loss of ₹152 crore.
The adjusted EBITDA margin, which shows how much profit they make compared to their revenue, increased by 9 percentage points compared to last year, reaching 0.4%.
When excluding the quick commerce business, Zomato's adjusted revenue stood at ₹2,402 crore, which is 33% higher than last year.
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Bharti Airtel Q1 Results: Net profit flat at ₹1,612 crore, revenue up 14%:
Bharti Airtel, a big telecom company, recently shared its financial results for the three months from April to June 2023. They made a profit of ₹1,612 crore, which is almost the same as what they earned last year. Their total revenue from business during this time was ₹37,440 crore, showing an increase of 14% from the previous year.
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Adani Enterprises Q1 results: Net profit grows 44% to ₹674 crore, revenue falls 38%:
Adani Enterprises, which is a part of the Adani Group, recently shared their financial results for the first quarter of 2023. They made a profit of ₹674 crore, which is 44% higher compared to the same period last year. However, their total revenue went down by 38% due to a decrease in coal prices. The company's operational growth has been strong, and they are working on big projects like the Kutch Copper and Navi Mumbai Airport. The Chairman, Gautam Adani, mentioned that they are focused on growth while maintaining high standards of governance and performance.
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